Grupo Aeroméxico, S.A.B. de C.V. Q1 2026 Earnings Call Summary

• Management attributed Q1 resilience to a robust business model that successfully navigated regional demand disruptions and surging fuel prices to meet original guidance.

• Performance was driven by a 15% increase in unit revenues, supported by a strong brand appeal to premium passengers who are less sensitive to price fluctuations.

• The company’s structural advantage lies in its revenue mix, where fuel accounts for only 21% of total revenues, lower than regional peers and ULCCs.

• Strategic positioning in international markets, which generate 70% of total revenue, has allowed for more effective fuel recapture compared to the domestic market.

• Operational excellence was highlighted by the airline’s ranking as the most on-time airline globally for 2026, building on its 2024 and 2025 performance.

• Management emphasized that the lack of material additional fleet commitments for the remainder of the year enhances financial flexibility and limits cost pressure.

• The second quarter is expected to be the weakest period of the year, reflecting peak pressure from fuel prices before mitigation actions are fully realized.

• Management outlined a clear fuel recapture trajectory, targeting 50% recovery in Q2, 70% in Q3, and 100% by Q4 as pricing and network initiatives take full effect.

• Capacity growth for the full year has been revised downward to 2% to 3% from the original 3% to 5% range to protect margins and optimize cash flow.

• Q2 guidance assumes a jet fuel price range of $3.80 to $4.20 per gallon, with the midpoint at $4.00.

• Full-year guidance remains suspended due to market volatility, with management intending to provide updates once visibility into the second half of the year improves.

• A comprehensive cost-discipline program has been implemented, including a hiring freeze for non-critical roles and a reduction in discretionary spending.

• Liquidity reached a robust €1.2 billion at the end of Q1, an unusual achievement given the quarter’s typical seasonal weakness in cash flow generation.

• Fleet modernization efforts, specifically the deployment of 737 MAX aircraft, resulted in a 1.4% reduction in fuel burn per ASM and $5 million in cash savings.

• Management identified potential fuel supply constraints in Europe and Asia as a monitored risk, though no shortages are expected within the next eight weeks.

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