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Grupo Aeromexico, S.A.B. de C.V. American Deposit earnings calls

AERO · every analyst question and management's answer

Oct 20, 2026 earnings call — Record revenue and margins amid high fuel costs

Record quarterly revenue of $1.62 billion, up 13.6% year over year.

Revenue $1.6B (est $1.6B) · EPS $0.28 (est $0.29)

Key quotes

"Premium revenue represented 42% of total revenue. Up 1 percentage point year over year, while loyalty penetration reached 40%. An 8-point increase versus last year."

— Andrés Conesa Labastida (CEO) · Premium and loyalty revenue

"Fuel costs increased by approximately a $170 million year over year in the third quarter. Including nearly $93 million above the guidance we shared with you in early July."

— Andrés Conesa Labastida (CEO) · Fuel costs and control

"The US Department of Transportation decision immediately revoked its prior order disapproving scheduled service to a Mexican carrier, marks a very positive development for us."

— Andrés Conesa Labastida (CEO) · Network growth and DOT change

Analyst Q&A 5

FX effects on revenue/costs and capacity

Q (Duane Pfennigwerth · Evercore): Analyst asked how a softer peso (e.g., 18.0–18.5 vs 17) affects revenue, unit cost and margins. He also asked about competitive capacity trends into Q4 domestically.

A: Management said the peso move is largely hedged so it does not hit the P&L directly, but it has a second-order demand effect. They said a weaker peso lowers dollar costs and lowers dollar revenues, equivalent to around 2 percentage points of revenue impact, and CASM ex-fuel for Q4 can be better by about 2% to 3%. They also said other Mexican carriers revised capacity down and Aeroméxico expects disciplined growth driven mainly by widebody flying, supporting their Q4 plans.

"If you consider that, the expected growth in revenues for the fourth quarter, is between 16% and 18% versus the Q4 of 2025." — Andrés Conesa Labastida (CEO)

Volaris-Viva merger remedies and slots

Q (Michael Linenberg · Deutsche Bank): Analyst asked whether remedies from the expected Volaris-Viva merger could benefit Aeroméxico. He also asked if slots at Mexico City (44→46) might be raised further.

A: Management said they are awaiting the authorities' decision and cannot comment on approval or specific remedies yet, while continuing to strengthen and differentiate their business. They also said that, per discussions at the ALTA Forum, slot operations in Mexico City could rise into the high forties by the end of this decade.

"And he did mention that, you know, going forward, you know, by the end of this decade, we can expect to see a larger number of operations in Mexico City going to the high forties." — Andrés Conesa Labastida (CEO)

Which travel segments are strongest

Q (Guilherme Mendes · JPMorgan): Analyst asked which segments (leisure, corporate, domestic, international) are outperforming and where fuel recapture is working.

A: Management said demand strength is strongest on international routes served by the widebody fleet, particularly Europe and Asia, with Europe capacity up about 25% in Q4 and load factors up about 2 to 3 points. They said strength is broad across corporate and leisure (corporate mostly stable or slightly up), and that fuel-recapture has been strong historically (more than 100% previously) but currently is in the low 90s (around 92%–93%), with confidence they can get closer to full offset.

"We sit here for the quarter up about 2 to 3 points in both load factor with that kind of capacity increase." — Aaron James Murray

Q4 guide change, fuel and FAA review

Q (Jens Spiess · Morgan Stanley): Analyst asked why Q4 revenue guidance declined despite higher fuel, whether fares were raised to offset fuel, and if FAA review creates a window to accelerate U.S. capacity.

A: Management said jet fuel spiked since the July guidance and that the additional fuel impact versus the July guidance is $170 million, about 11 margin points, and that FX (stronger dollar vs peso) trimmed roughly 2 percentage points off revenue growth. They said many fuel-recapture initiatives are being deployed but not yet reflected in the guidance, and on the FAA review they described government steps (budget increase for AFAC, plans to hire more people) and said they will consider that risk when timing U.S. expansion; there is a follow-up window in February.

"The additional fuel impact versus the July guidance then it is $170 million." — Andrés Conesa Labastida (CEO)

Impact of unrest in Europe on long-haul demand

Q (GBM): Analyst asked if recent events in France/Europe have negatively affected demand for long-haul travel.

A: Management said they have not seen any impact so far on demand from those events. They noted Monterrey-Paris is performing solidly and Guadalajara-Paris will be launched; additionally, they reported net cash from operating activities of around $540 million in the first 9 months, expect that cash-flow trend to continue into Q4, will keep CapEx on schedule and expect CASM ex-fuel to contract in Q4 after prior increases.

"We have not seen any impact due to that." — Aaron James Murray

AI-generated notes on the earnings call transcript. Quotes are taken from the transcript. This is not a FolioObs investment view.

Grupo Aeromexico, S.A.B. de C.V. American Deposit (AERO) · Earnings calendar

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