Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), today reported its unaudited consolidated results for the second quarter 2019.
KEY FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER 2019
Grupo Aeromexico's second quarter capacity, measured in available seat kilometers (ASKs) decreased by 2.2% year-on-year, resulting from planned capacity reductions as well as the temporary grounding of the 737 MAX 8 aircraft. The Company is continuing to assess the financial impact of both the grounding of the 737 MAX aircraft in its fleet and the current and expected future delays in delivery of additional 737 MAX aircraft. The Company intends to seek compensation for the financial consequences of these events, and potentially other remedies, and will inform the markets once it is appropriate to do so regarding financial impacts and expectations, and the Company's remedial actions. The date for re-entry of the 737 MAX to service remains uncertain.
Grupo Aeromexico's second quarter 2019 revenue reached $16.8 billion pesos, a 2.6% year-on-year decrease. During the quarter Revenue per ASK (RASK) decreased by 0.4% compared to the same period of 2018.
During the quarter CASK excluding fuel in pesos decreased by 1.8% while CASK excluding fuel in dollars decreased 0.3%, highlighting Grupo Aeromexico´s ongoing focus on optimizing unit costs.
Second quarter EBITDAR reached $3.1 billion pesos. EBITDAR margin was 18.3%.
For the second quarter of 2019, Grupo Aeromexico reported an operating profit of $119 million pesos, for a 0.7% operating margin.
Aeromexico reported a net loss of $1.1 billion pesos for the second quarter 2019.
Second quarter cash flow generation was strong with $3.7 billion pesos in incremental cash flow generated from operating activities. Aeromexico´s cash position as of June 30th, 2019 was $10.2 billion pesos. This brings Aeromexico´s cash to last-twelve-month revenue ratio to 14.6%.
During the quarter, the Company incorporated one aircraft into its fleet. As of June 30th, 2019 Grupo, Aeromexico's operating fleet comprised 122 aircraft, excluding the six Boeing 737 MAX aircraft temporarily grounded.
All figures are expressed in millions of pesos unless otherwise indicated. Grupo Aeromexico's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). The International Accounting Standard 1 (IAS 1) "Presentation of Financial Statements" establishes that in the Consolidated Statement of Comprehensive Income additional items, headings and subtotals can be presented when they are relevant to understanding the financial performance of the entity.
To access the full text of this earnings release, please visit Aeromexico's Investor Relations website at: https://aeromexico.com/en-us/investors.