Aeromexico Reports 1Q17 Results

MEXICO CITY, April 25, 2017 /PRNewswire/ -- Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), today reported its unaudited consolidated results for the first quarter 2017.

KEY FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER 2017

• Grupo Aeromexico's first quarter 2017 revenues reached $14.2 billion pesos, a 17.5% year on-year increase. During the quarter, Revenue per ASK (RASK) increased by 8.9% compared to the same period of 2016.

• First quarter 2017 financial results reflect the negative impact of a 64.4% increase in fuel prices and a 12.5% depreciation of the Mexican peso against the US dollar. CASK in pesos increased by 18.0%, year-on-year, while CASK in dollars increased 4.9%. CASK excluding fuel in pesos increased by 8.5%, year-on-year, while CASK excluding fuel in dollars decreased 3.6%, highlighting Grupo Aeromexico´s ongoing focus on optimizing unit costs.

• Grupo Aeromexico reported an operating profit of $533 million pesos with operating margin reaching 3.8%. This represents the 28^th consecutive quarter of positive EBIT results.

• During the quarter, EBITDAR reached $3.6 billion pesos a 16.4% increase compared to the prior year. EBITDAR margin amounted to 25.3%, a 0.2 percentage point decrease compared to the same period of 2016.

• Aeromexico reported a net loss of $258 million pesos with a negative margin of 1.8% margin for the first quarter of 2017.

• These financial results include a non-recurrent (net of deferred taxes) $561 million peso benefit derived from a non-monetary transaction associated with an agreement to develop Aeromexico's new Corporate Headquarters in Mexico City.

• The total cash balance at the end of the quarter reached $9.1 billion pesos, equivalent to 16.2% of annual revenues.

• During the quarter, the Company added three aircraft to its fleet: one Boeing 787-9 and two Embraer-190s. At the end of the quarter, Grupo Aeromexico's operating fleet comprised 133 aircraft.

MANAGEMENT DISCUSSION AND ANALYSIS

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.

The following information provides an overview of selected consolidated financial and operating results, comparing the Company's unaudited consolidated financial statements for the first quarter 2017 with those of the first quarter 2016.

To access the full text of this earnings release, please visit Aeromexico's Investor Relations website at:   http://www.aeromexico.com/investors/welcome.html 

Safe Harbor Statement

This release contains forward-looking statements regarding the Company's results and business prospects. The readers should know that the results obtained may differ from that stated on this release. Past performances do not guarantee the behavior of future performances. The Company undertakes no obligation to update any of these statements, either as a result of new information, future actions or other related events. 

About Grupo Aeromexico

Grupo Aeromexico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico´s global airline, operates more than 600 daily flights and its main hub is in Terminal 2 at the Mexico City International Airport. Its destinations network features more than 80 cities on three continents, including 45 destinations in Mexico, 17 in the United States, 15 in Latin America, 4 in Canada, 4 in Europe, and 3 in Asia.
The Group's fleet of more than 130 aircraft is comprised of Boeing 787, 777 and 737 jet airliners and next generation Embraer 145, 170 and 190 models. In 2012, the airline announced the most significant investment strategy in aviation history in Mexico, to purchase 100 Boeing aircraft including 90 MAX B737 jet airliners and 10 B787-9 Dreamliners.
As a founding member of the SkyTeam airline alliance, Aeromexico offers customers more than 1,000 destinations in 177 countries served by the 20 SkyTeam airline partners rewarding passengers with benefits including access to 636 premium airport lounges around the world. Aeromexico also offers travel on its codeshare partner flights with Delta Air Lines, Alaska Airlines, Avianca, Copa Airlines and WestJet, with extensive connectivity in countries like the United States, Brazil, Canada, Colombia and Peru.

www.aeromexico.com
www.skyteam.com
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SOURCE Grupo Aeromexico S.A.B. de C.V.