Grupo Aeromexico, S.A.B. de C.V. (AERO) Q2 FY26 earnings call: guidance and Q&A

What was the specific impact of the World Cup on June corporate revenue, and what recovery trends are observed in July/Q3 for domestic and international markets?

The World Cup caused an estimated $24 million revenue loss in June for domestic traffic, but overall Q2 revenues were still record high. Corporate traffic and leisure in the domestic market are showing a very strong recovery in July, with solid numbers for August and September. International demand remains very strong.

“The impact of the World Cup on domestic revenue we estimated for June to be around $24 million.”

asked by Duane Pfennigwerth with Evercore ISI · answered by Andrés Conesa Labastida

Clarification on the increase in hourly operations at AICM for the IATA winter season.

Hourly operations at AICM will increase from 44 to 46, providing Aeromexico with approximately 10 additional slots per day. These slots will be used for additional flying and to recover some reduced domestic capacity.

“Yes, 44 to 46 starting the next [indiscernible]. Correct. ... Our share of that during the day is 10 per of slots.”

asked by Michael Linenberg with Deutsche Bank · answered by Ricardo Sánchez Baker

What contributed to the bump in "other revenue," and is it a new run rate, potentially linked to the new credit card?

The increase in "other revenue" is due to diversification efforts, including growing Aeromexico Rewards penetration, revenue from reopened VIP lounges, charter operations during the World Cup, and commercial initiatives like car rental, insurance, and vacation packages, as well as the launch of the new credit card.

“this line item reflects I think the success that we are having in diversifying our revenue. So here, we have revenue associated to our Mexico rewards... We reopened our VIP lounges during the second quarter... the revenue associated to the charter operations... and the line item also captures all the initiatives that our commercial team is doing on the retailing airline retailing initiatives, including car rental insurance and vacation packages.”

asked by Michael Linenberg with Deutsche Bank · answered by Andrés Conesa Labastida

How does lower fleet utilization impact ex-fuel costs and margins as capacity increases in H2? Also, clarify the Q2 fuel recapture rate and expectations for Q3/Q4.

Increased fleet utilization in H2 will leverage fixed ownership costs, producing additional high-margin revenue without significant new hiring, leading to improved unit costs and margins. The Q2 fuel recapture rate was 75%, exceeding the 50% target. For H2, the company expects to recover more than 100% of the fuel impact, offsetting the Q2 shortfall.

“we ended up with 75, so 75%... For the second half, in the implicit guidance that we gave, we are projecting to recover more than the impact that we had.”

asked by Filipe Ferreira Nielsen with Citi · answered by Andrés Conesa Labastida

What are the financial implications of the new Inbursa co-branded card, especially during the transition? How does Aeromexico view the domestic competitive landscape given divergent capacity adjustments by competitors?

The new Inbursa card launch is going well, with financials covered during the transition. Half of new cardholders are new to Aeromexico credit cards. A new contract with American Express is due in Q4. Domestic capacity differences among competitors are attributed to varying impacts of engine problems and fuel prices. Aeromexico is ready to compete regardless.

“half of the cardholders that have received the car today. previously, it's not [indiscernible] credit card... we are also working on a new contract with American Express that is due in the 4Q of this year.”

asked by Jens Spiess with Morgan Stanley · answered by Andrés Conesa Labastida

If fuel prices normalize in 2027, will Aeromexico maintain elevated prices for higher margins, similar to US carriers? What is the status of negotiations with flight attendants (ASA)?

Current demand supports existing yields, which reflect higher fuel prices. If oil prices drop, industry pressure will likely reduce prices. Aeromexico has achieved profitability with lower prices before and has operational leverage for 2027. Negotiations with flight attendants are constructive, with a deadline of July 30 for individual approval of the assembly-approved agreement.

“The deadline for that is the last day of July, July 30. So we are working constructively with the Union team, and we're confident that we will have a firm agreement before the end of this month.”

asked by Jens Spiess with Morgan Stanley · answered by Andrés Conesa Labastida