Mexico, Mexico City, March 20th, 2020. Grupo Aeroméxico, S.A.B. de C.V. (BMV "AEROMEX"), informs that COVID-19 has created a worldwide crisis affecting most countries and different industry sectors. The impact on the aviation industry, including our company, is unprecedented.
As of today, 40 nations around the globe have closed their borders as a preventive measure to stop the spread of the virus and protect their citizens. Because of this and the associated low bookings, the Company has taken very important decisions that aim to preserve cash and the sources of employment. We have reduced domestic capacity by 35% and international capacity by 50%. This has meant grounding 40 aircraft immediately, which will probably increase in the upcoming days.
Aeromexico is also taking action on all fronts for the airline to preserve cash and protect the long term operation:
- Our Senior Management agreed to pay cuts of 50% of their monthly salaries and other employees will contribute according to their level.
- 80% of administrative personnel is working remotely, since March 17th and until further notice.
- For those employees that due to their functions, are unable to work remotely, we have implemented additional sanitary and safety protocols.
- Aeromexico has activated a Voluntary Leave of Absence program for 30, 60, or 90 days, among other measures.
- Aeromexico is currently negotiating with its main suppliers, including fleet lessors and airports.
- The Call Center has been working around the clock to provide the best customer service.
Aeromexico has also postponed all non-operationally critical capital expenditure and discretionary expenditure
Aeromexico wants to thank the unions and all associates for their tremendous support and for taking important actions that would help protect jobs in the long term.
Aeromexico is implementing additional sanitation and disinfection measures in all our aircraft and workplaces, updating communications daily and working alongside the relevant authorities.
This contingency comes at a time in which Aeromexico registers a strong balance sheet thanks to all its stakeholders. All the resources that Aeromexico has obtained in the last few years has been reinvested in the company, this has allowed Aeromexico to acquire its own fleet and be up to date in all its financial obligations. Aeromexico is an airline that is represents Mexico, with its people, customers and commercial partners.
Additionally, Aeromexico informs that on 17th March the Company was notified by the Moody's Rating Agency that the Company’s corporate credit rating had been adjusted to B2, and that the debt instruments in the form of Senior Unsecured Notes issued by its subsidiary Aerovias de Mexico, S.A. de C.V have been adjusted to B3. Additionally, on March 18th the Company was notified by S&P Global Ratings that the Company’s corporate credit rating has been adjusted to B+. This in in the context of the rapid and increasing spread of COVID19 and the deterioration in the world economic outlook.