AERO — Grupo Aeroméxico, S.A.B. de C.V.

Aeromexico Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: Approximately $1.5 billion, up 30% year-over-year.
• EBIT Margin: 5%, with adjusted EBITDA of $260 million (18% margin).
• Total ASMs: Increased by 1.9% year-over-year.
• TRASM: Increased by 10.5% year-over-year, driven by strong international passenger revenue.
• Operating Cash Flow: Approximately $362 million, with liquidity exceeding $1 billion.
• Net Debt: Adjusted net debt decreased compared to the same period last year.

2. Strategic Updates and Business Highlights

• Capacity Management: Capacity increased by 2% year-over-year, with adjustments made to align with market conditions.
• New Routes: Launched two long-haul routes (Mexico City to Barcelona and Monterrey to Paris).
• Premium Revenue: Reached 43% of total revenue, marking a record high for Aeromexico.
• Customer Engagement: 39% of passengers participated in Aeromexico Rewards, up 7 percentage points year-over-year.
• Operational Excellence: Achieved top on-time performance among global food service carriers.

3. Forward Guidance and Outlook

• Q3 and Q4 Expectations: Anticipate higher EBITDAR and EBIT compared to the same periods in 2025, with EBIT margins projected in the low double-digit range.
• Capacity Growth: Expected to reach high single-digit growth year-over-year in Q4, supported by new aircraft deliveries and increased slots at Mexico City International Airport.
• Full Year Projections: Total revenue growth of 13-14% versus 2025, with adjusted EBITDA margins of 20.5% to 26.5% and operating margins of 11-13%.

4. Bad News, Challenges, or Points of Concern

• Fuel Costs: Experienced a $220 million increase in operating costs due to volatile fuel prices, with a $30 million incremental cost pressure compared to prior guidance.
• World Cup Impact: Estimated a $24 million revenue loss in June due to shifts in travel patterns related to the World Cup, though overall revenues remained strong.
• Competitive Landscape: Mixed capacity adjustments among competitors could lead to pricing pressures; Aeromexico plans to remain flexible in capacity management.

5. Notable Q&A Insights

• World Cup Revenue Impact: The World Cup had a temporary negative effect on domestic revenue in June, but demand has rebounded strongly in July and is expected to continue improving.
• Fuel Cost Recovery: Achieved a 75% recovery of increased fuel costs in Q2, with expectations to recover more in the second half of the year.
• Competitive Environment: Noted rationalization of capacity in the domestic market, with Aeromexico prepared to adjust capacity based on market conditions.
• Credit Card Program: The transition to the new Aeromexico Inbursa co-branded credit card is on track, with positive early trends in customer adoption.
• Labor Negotiations: Ongoing discussions with flight attendants are expected to reach a resolution by the end of July, with confidence in a favorable outcome.

This summary encapsulates Aeromexico's performance and strategic direction for Q2 2026, highlighting both achievements and challenges faced in the current operating environment.