Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), today reported its unaudited consolidated results for the fourth quarter 2018.

KEY FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER 2018

Grupo Aeromexico's fourth quarter 2018 revenue reached $18.5 billion pesos, a 9.8% year-on-year increase. During the quarter Revenue per ASK (RASK) increased by 6.5% compared to the same period of 2017.
During the quarter CASK in pesos increased by 12.3% while CASK in dollars increased 7.6%, reflecting the negative impact of a 28.1% increase in peso denominated fuel prices and a 4.4% depreciation of the Mexican peso against the dollar. CASK excluding fuel in pesos increased by 7.1% while CASK excluding fuel in dollars increased 2.7%.
During the fourth quarter of 2018 Grupo Aeromexico reported an operating profit, excluding special items, of $120 million pesos, equating to an operating margin of 0.6%. This result excludes one-off costs related to Club Premier breakage adjustments and the negative accounting impact on the sale of Embraer aircraft, neither of which have a negative cash flow impact. Additionally, the company incurred one off costs related to its Optimization Plan including severance and other restructuring costs. Including these special items, the Company reported an operating loss of $902 million pesos.
For the fourth quarter 2018, Aeromexico reported a net profit excluding special items of $371 million pesos. Including these special items, the Company reported a net loss of $651 million pesos.
For full year 2018, Grupo Aeromexico┬┤s revenue reached $70.3 billion pesos, a 14.5% increase compared to the same period of 2017. Grupo Aeromexico delivered an operating profit excluding special items of $1.0 billion pesos, equating to an operating margin of 1.5%. Including these effects, the Company reported an operating profit of $9 million pesos. Aeromexico reported a net loss, excluding special items, of $857 million pesos for the full year 2018. Including these special items, the Company reported a net loss of $1.9 billion pesos.
2018 full year cash flow generation remained strong with $2.3 billion pesos in incremental net cash flow generated from operating activities. Aeromexico's cash position as of December 31, 2018 was $9.9 billion pesos. This brings Grupo Aeromexico's cash to last-twelve-month revenue ratio to 14.0%.
During the quarter, the Company incorporated one aircraft into its fleet under an operating lease agreement. As of December 31st, 2018, Grupo Aeromexico's operating fleet comprised 130 aircraft.
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.