Aeromexico Reports 4Q18 Results

MEXICO CITY, Feb. 12, 2019 /PRNewswire/ -- 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 31^st, 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.

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 90 cities on three continents, including 43 destinations in Mexico, 26 in the United States and Canada, 18 in Latin America, 5 in Europe and 3 in Asia.

The Group's operating fleet of 130 aircraft is comprised of Boeing 787 and 737 jet airliners and next generation Embraer 170 and 190 models. In 2012, the airline announced the most significant investment strategy in aviation history in Mexico, to purchase up to 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 179 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, Air France-KLM, 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 http://disfrutaam.tumblr.com/

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SOURCE Grupo Aeromexico S.A.B. de C.V.