Grupo Aeromexico (AERO) Q1 2025 earnings summary

Executive summary

• First quarter 2025 faced significant challenges from geopolitical tensions, economic uncertainty, and currency depreciation, leading to decreased demand and lower revenues.

• Despite headwinds, achieved the second-best first quarter EBIT margin in company history and maintained strong operational performance.

Financial highlights

• Total revenue was $1.18 billion, down 9.1% year-over-year, mainly due to peso depreciation and softer demand.

• Adjusted EBITDAR reached $320 million (27% margin), a 12.4% decrease from 1Q24.

• Operating income was $142 million (12% margin), down 29.8% year-over-year.

• Net income totaled $22 million (1.8% margin), a 79% decline from 1Q24.

• Operating expenses fell 7.9% to $864 million, driven by an 11.7% drop in fuel costs and cost efficiency initiatives.

Outlook and guidance

• Management remains focused on maintaining best-in-class profitability and efficiently navigating ongoing macroeconomic and geopolitical challenges.