Grupo Aeromexico (AERO) Q1 2026 earnings summary

Executive summary

• Delivered first quarter 2026 results in line with guidance despite external headwinds, including demand disruptions in Mexico and a significant surge in fuel prices.

• Maintained strong brand and premium revenue appeal, with a resilient business model and industry-leading team.

• Total revenue grew 13.3% year-over-year to $1.34 billion, driven by robust demand and premium revenue strategies.

• Recognized as the most on-time airline globally and a top employer in Mexico.

• Net income reached $10.7 million, reflecting a 0.8% margin for the quarter.

Financial highlights

• Total revenue for Q1 2026 reached $1.34 billion, up 13.3% year-over-year, exceeding guidance.

• Adjusted EBITDA/EBITDAR was $336 million (25% margin), up 5% year-over-year.

• Operating income was $142 million (11% margin), matching prior year and at the lower end of guidance.

• Liquidity exceeded $1.2 billion, up $178 million year-over-year and $21 million sequentially.

• Net income declined 51% year-over-year to $11 million.

Outlook and guidance

• Q2 2026 expected to be the weakest period due to full impact of fuel price increases.

• Q2 revenue guidance of $1.47–$1.52 billion, up 12.5%–15.5% year-over-year.

• Capacity for Q2 to increase 1.5%-2.5% year-over-year; adjusted EBITDA/EBITDAR margin expected at 17%-20%.

• Operating margin guidance for Q2 is 4%-7%.

• Full-year capacity growth revised to 2%-3%, down from original 3%-5% guidance.