Grupo Aeromexico (AERO) Registration Filing summary

Company overview and business model

• Only full service carrier (FSC) based in Mexico, offering premium services and long-haul, wide-body international flights across 21 countries and 42 international cities as of June 30, 2024.

• Operates a hub-and-spoke model centered at Mexico City International Airport (MEX), the country’s largest and most capacity-constrained airport.

• Maintains a young, modern fleet (average age 8.5 years) with 145 aircraft, including Boeing 787 Dreamliners, Boeing 737s, and Embraer E190s.

• Offers a three-class cabin, premium amenities, and the largest loyalty program in Mexico (Aeroméxico Rewards, 10.5 million members as of June 2024).

• Strategic partnerships include a joint cooperation agreement (JCA) with Delta Air Lines and membership in the SkyTeam alliance.

Financial performance and metrics

• 2023 revenue reached $4,916.1 million, a 37.6% increase over 2019, with operating income of $715.8 million (up 379.4% from 2019).

• For the six months ended June 30, 2024, revenue was $2,694.9 million (up 23.8% YoY), and operating income was $478.0 million (up 84.2% YoY).

• Adjusted EBITDA for the six months ended June 30, 2024 was $783.0 million; Adjusted EBITDAR was $791.1 million.

• Cash and cash equivalents as of June 30, 2024 were $1,126.0 million; total loans and borrowings (including leases) were $3,168.6 million.

• Load factor for the six months ended June 30, 2024 was 85.8%; RASK was 9.6¢, CASK ex-fuel was 5.6¢.

Use of proceeds and capital allocation

• All proceeds from the IPO will go to selling shareholders; the company will not receive any proceeds.

• No new shares are being issued; the offering is a resale by existing shareholders.

• Company intends to retain future earnings to finance operations and growth; no cash dividends expected in the foreseeable future.