Grupo Aeromexico (AERO) Q3 2025 earnings summary

Executive summary

• Achieved strong third quarter results, marking the second-best Q3 in company history and the first as a public company following a successful IPO and dual-listing on NYSE and Mexican Stock Exchange.

• Maintained high operational reliability, strong margins, and a solid balance sheet, with continued recognition for service excellence and punctuality, including the Five Star Global Airline APEX Award for the seventh consecutive year.

• Expanded fleet with four new Boeing 737 MAX aircraft, bringing the total to 162 and supporting network growth, especially in Europe.

Financial highlights

• Total Q3 revenue reached $1.4 billion, with an adjusted EBITDA/EBITDAR margin of 31% and operating margin of 17.7%-18%.

• Adjusted EBITDA/EBITDAR was $442 million, the second-highest Q3 on record; net income was $97 million, representing a 6.8%-7% net margin.

• Excluding extraordinary non-recurrent items from 2024, adjusted EBITDA/EBITDAR increased 1.4% year-over-year; total revenue per ASM rose 0.6% year-over-year.

• Operating expenses increased 2.5% year-over-year, mainly due to fleet additions, labor cost increases, and expanded international operations.

• Cash on hand at quarter-end was $934 million, with total liquidity of $1.1 billion (21% of LTM revenue).

Outlook and guidance

• Q4 passenger revenue expected to increase 3%-5% year-over-year on modest capacity reduction; positive unit revenue trends anticipated domestically and internationally.

• Q4 total revenue (excluding extraordinary items) projected to grow 1%-3% year-over-year; adjusted EBITDA/EBITDAR margin expected between 27.5%-29%, operating margin 14%-15.5%.

• Full-year 2025 capacity to increase up to 0.5%, with adjusted EBITDA/EBITDAR margin of 29%-30% and operating margin of 15%-16%.

• 2026 growth opportunities supported by recent aircraft deliveries and operational leverage.