Aeromexico Struggles as Most North American Airlines Report Hefty Profits
Skift Take
Aeromexico blamed its fourth quarter operating loss on one-off items. To a large extent that's true. But the airline still has some looming problems, which is probably why it won't grow at all this year.
Despite one of the more favorable macro environments for North American airlines in recent years, Aeromexico this week reported a fourth quarter operating loss of more than $46 million, blaming restructuring costs, a higher-than-expected fuel bill, and increased competitive capacity in domestic and U.S. markets for the disappointing result.
Excluding special items, the airline posted a tiny operating profit, of 0.6 percent, executives said Wednesday on their fourth quarter earnings call.
During the quarter, unit revenues held up reasonably well, up 6.5 percent-year-over year. But costs were an issue.
Aeromexico was more affected by higher fuel prices than U.S. airlines because it earns much of its revenue in Mexican pesos, but pays for fuel in U.S. dollars. The airline told investors its fourth quarter fuel price increased 2
