Grupo Aeroméxico Q4 2025 Earnings Summary

Record Performance & Recognition:
Aeroméxico delivered record Q4 results with adjusted EBITDAR margin of 31% (highest ever) and operating margin of 17% (second-best annual performance in company history). Named world’s most on-time airline by Cirium for second consecutive year (#1 globally in 2025). Won APEX 5-star Global Airline Award (seventh consecutive year) and named APEX North America’s Best Global Airline (first time). Achieved IATA’s highest operational safety recognition—first Latin American airline and second in Western Hemisphere to reach this milestone.

Financial Results:

Full Year 2025: Total revenue $5.4 billion (up 2% excluding nonrecurring items). Adjusted EBITDAR $1.7 billion (31% margin, record high); excluding TechOps sale and IPO expenses: $1.6 billion (30% margin). Operating income $928 million (17% margin); excluding adjustments: $861 million (16% margin). Operating cash flow $913 million. CASM ex-fuel up 1.8% YoY (labor costs from collective bargaining, higher depreciation from fleet growth, IPO expenses, peso appreciation).

Q4 2025: Revenue $1.4 billion (up 3% excluding nonrecurring items). Adjusted EBITDAR $502 million (35% margin, record quarterly); excluding adjustments: $435 million (30% margin). Operating income $303 million (21% margin, record Q4); excluding adjustments: $236 million (16% margin). Passenger revenue up 4.3%, passenger unit revenue up 6.2% YoY—strength across domestic and all international regions.

Commercial Performance:
Full-year passenger revenue down 4.4%, passenger unit revenue down 4.9% YoY (currency, economic, geopolitical headwinds early 2025). Sequential quarterly improvement through 2025; Q4 represented record-breaking performance. Premium revenue now ~42% of total passenger revenue (up 17 points from pre-pandemic mid-20s levels). Q4 premium unit revenue growth 6 points above main cabin YoY. Loyalty program participation reached record 37% (up 7 points YoY, 13 points since 2023 reacquisition/rebranding). Week ending January 25, 2026: highest weekly revenue sales in Q1 history.

Fleet & Network:
Ended 2025 with 165 operating aircraft (up 17 from prior year); transported ~25 million passengers. Received 17 Boeing 737 MAX aircraft in 2025. 2026: Expecting 3 MAXs + 2 Boeing 787s, ending year ~170 aircraft. Capacity runway: Can grow ~15-20% over next 3 years (2026-2028) without additional aircraft beyond plan. Launching Mexico City-Barcelona and Monterrey-Paris routes (expanding premium-led European network). Narrow-body utilization currently ~9 hours; opportunity to reach 2024 levels (~10 hours) for operational leverage.

Balance Sheet & Shareholder Returns:
Cash/equivalents: $1 billion; total liquidity ~$1.2 billion (23% of trailing 12-month revenue, including $200M undrawn revolver). Financial debt reduced $156M in 2025; adjusted net debt-to-EBITDA: 1.8×. Returned >$200M to shareholders in 2025; total distributions since December 2023: ~$1.3 billion. TechOps JV sale: Both Aeroméxico and Delta divested MRO facility in Querétaro for $71M gain; does not change maintenance operations (long-term commercial agreement in place since 2022 transfer to third-party operator).

Regulatory Update:
U.S.-Mexico air service restrictions remain (cannot add new routes from Mexico City metropolitan area to U.S.) due to ongoing cargo-related open skies dispute. CEO expects resolution “relatively soon”—Mexican government in productive talks with U.S.; cargo operators offered AICM slots but most prefer AIFA. Short-term impact: “slight negative to neutral” given 30-35% transborder capacity growth from Mexico City since Category 1 restoration. Had to cancel planned Mexico City-San Juan route close-in.

2026 Guidance:

Full Year: Capacity growth 3-5% ASMs (beginning Q2 onward; Q1 has high 2025 baseline). Revenue growth 7.5-9.5%. Adjusted EBITDAR margin 28.5-30.5%. Operating margin 15-17%.

Q1 2026: Revenue growth 10-12% YoY. Adjusted EBITDAR margin 26-28%. Operating margin 11-13%.

Assumptions: Mexican economy growth 1.2-1.5%; FX average MXN 18.3/USD; Brent ~$69/barrel; crack spread ~$25/barrel. Revenue growth driven primarily by yields (load factor expected flat at midpoint); FX-neutral unit revenue growth also contributing.

Strategic Priorities:
Premium-led growth strategy continuing with investments in widebody retrofits, airport lounges (reopening redesigned VIP lounges at AICM), new app enhancements (full deployment Q4 2025), new check-in models. New co-brand credit card program launching June 1, 2026 (alongside American Express partnership). Next evolution of branded fares launched Q1 2026. Evaluating growth opportunities outside Mexico City. Viva-Volaris merger monitoring: Awaiting regulatory outcome/remedies before assessing impact; different business models with slight overlap.

Operational Highlights:
Industry-leading completion factor globally in 2025. Widebodies at maximum utilization; narrow-bodies have room to increase (9→10 hours). Strong corporate and high-income leisure demand. European performance particularly strong in Q4 with demand stretching into traditionally weaker periods. U.S. portfolio improving (Q4 passenger unit revenue up 5% YoY, third consecutive quarter of sequential improvement).