Grupo Aeromexico (AERO) Q4 2025 earnings summary

Executive summary

• Achieved record or near-record financial results in Q4 and full year 2025, with strong recovery momentum in the second half amid a challenging environment.

• Recognized globally for operational excellence, including being named the world's most on-time airline for two consecutive years and receiving top industry awards.

• Premium revenue mix reached 42% in 2025, reflecting a focus on higher-yield segments.

• Safely transported approximately 25 million passengers in 2025, with the fleet growing to 165 aircraft.

• Enhanced customer experience through new app rollout, VIP lounge upgrades, and fleet modernization.

Financial highlights

• Full-year 2025 total revenue was $5.4 billion, down 4.6% year-over-year; Q4 revenue was $1.4 billion, up 0.2% year-over-year.

• Adjusted EBITDAR/EBITDA margin reached a record 31% for the year and 35% in Q4; operating margin was 17% for the year and 21% in Q4.

• FY25 net income was $352 million (6.6% margin); Q4 net income was $165 million (11.5% margin).

• Premium revenue represented 42% of total revenues, up 17 points from pre-pandemic levels.

• Passenger revenue declined 4.4% year-over-year, but Q4 saw a rebound with passenger revenue up 4.3% and unit revenue up 6.2% year-over-year.

Outlook and guidance

• FY26 revenue guidance is $5.77–$5.88 billion, with capacity expected to grow 3–5% and operating income margin guidance of 15–17%.

• Q1 2026 revenue expected to be $1.3–$1.33 billion, with Adjusted EBITDAR margin 26–28% and operating margin 11–13%.

• Adjusted net leverage targeted at ~1.6x for FY26.

• FX assumption for 2026 is 18.3 pesos per USD; jet fuel price assumption is $69 per barrel.

• Growth of 3–5% in ASM capacity expected for 2026, with similar growth possible through 2028 without significant new aircraft additions.