Grupo Aeromexico (AERO) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 grew 13.3% year-over-year to $1.34 billion, driven by robust international and premium demand, despite external headwinds such as demand disruptions in Mexico and higher fuel prices.

• Maintained industry-leading operational excellence, recognized as the world's most on-time airline for 2024, 2025, and 1Q26, and as a top employer in Mexico.

• Adjusted EBITDAR margin was 25%, with operating margin at 11%, despite margin pressure from fuel and labor costs.

• Net income for the quarter was $11 million, down 51% year-over-year, reflecting a 0.8% margin.

• Business model and brand remained resilient, with premium revenue strategies and high service quality.

Financial highlights

• Q1 2026 total revenue reached $1.34 billion, up 13.3% year-over-year, exceeding guidance.

• Adjusted EBITDAR was $336 million (25% margin), up 5% year-over-year.

• Operating income was $142 million (11% margin), flat year-over-year and at the lower end of guidance.

• Net income declined 51% year-over-year to $11 million.

• Liquidity reached $1.2 billion, representing 23% of last-twelve-month revenues.

Outlook and guidance

• Q2 2026 revenue expected between $1.47 billion and $1.52 billion, up 12.5%–15.5% year-over-year.

• Adjusted EBITDAR margin for Q2 guided at 17%–20%; operating margin at 4%–7%.

• Capacity for Q2 to increase 1.5%–2.5% year-over-year.

• Fuel recapture expected to reach 50% in Q2, 70% in Q3, and 100% in Q4 as pricing and network initiatives take effect.

• Full-year capacity growth revised to 2%–3%, down from original 3%–5% guidance.