Grupo Aeromexico, S.A.B. de C.V. (AERO): Financial results for Q3 2026
Grupo Aeromexico, S.A.B. de C.V. (AERO) furnished an SEC Form 6-K — earnings release. CONTACT: Investor Relations aminvestorrelations@aeromexico.com Corporate Communications amcomunicacioncorporativa@aeromexico.com Aeroméxico Reports Unaudited Third Quarter 2026 Results • Record Quarterly Total Revenue of $1.6 billion • Adjusted EBITDAR (1) Margin of 24% • Operati
How this was made
The 30-second read
Why it matters
The release supplies fresh earnings data and revised guidance, which were not publicly available before this filing.
Market read
The earnings beat and forward guidance could drive short‑term price appreciation for AERO.
What to watch
Currency volatility and potential regulatory changes in Mexico could affect margins.
Record Quarterly Total Revenue of $1.6 billion; Adjusted EBITDAR Margin of 24%; Operating Margin of 12%; Liquidity to LTM Revenue ratio at 21%.
Record revenue and double-digit operating profitability were offset by sharply higher fuel costs, lower adjusted EBITDAR and operating income, and a 58.1% decline in quarterly net income.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026other | $1.62B | – | 13.6% |
| Passenger revenue, three months ended September 30, 2026other | $1.41B | – | 8.8% |
| Air cargo revenue, three months ended September 30, 2026other | $90M | – | 15.8% |
| Other revenue, three months ended September 30, 2026other | $115M | – | NA |
| Total revenue, nine months ended September 30, 2026other | $4.44B | – | 13.2% |
| Passenger revenue, nine months ended September 30, 2026other | $3.94B | – | 10.6% |
| Air cargo revenue, nine months ended September 30, 2026other | $252M | – | 9.7% |
| Other revenue, nine months ended September 30, 2026other | $252M | – | 86.4% |
| Adjusted EBITDAR, three months ended September 30, 2026non-GAAP | $389M | – | (11.9)% |
| Adjusted EBITDAR margin, three months ended September 30, 2026non-GAAP | 24.0% | – | (7.0)p.p. |
| Adjusted EBITDAR, nine months ended September 30, 2026non-GAAP | $989M | – | (15.5)% |
| Adjusted EBITDAR margin, nine months ended September 30, 2026non-GAAP | 22.3% | – | (7.6)p.p. |
| Total operating expenses, three months ended September 30, 2026other | $1.43B | – | 21.9% |
| Jet-fuel expense, three months ended September 30, 2026other | $469M | – | 57.6% |
| Wages, salaries and benefits, three months ended September 30, 2026other | $325M | – | 8.6% |
| Maintenance expense, three months ended September 30, 2026other | $66M | – | 2.9% |
| Aircraft, communications and traffic services, three months ended September 30, 2026other | $182M | – | 9.4% |
| Passenger services, three months ended September 30, 2026other | $46M | – | 11.0% |
| Travel agent commissions, three months ended September 30, 2026other | $30M | – | 15.0% |
| Selling and administrative expense, three months ended September 30, 2026other | $104M | – | 12.5% |
| Aircraft leasing expense, three months ended September 30, 2026other | $3M | – | (27.1)% |
| Depreciation and amortization, three months ended September 30, 2026other | $196M | – | 6.6% |
| Total operating expenses, nine months ended September 30, 2026other | $4.04B | – | 22.5% |
| Jet-fuel expense, nine months ended September 30, 2026other | $1.28B | – | 48.9% |
| Wages, salaries and benefits, nine months ended September 30, 2026other | $949M | – | 14.5% |
| Maintenance expense, nine months ended September 30, 2026other | $212M | – | 26.8% |
| Aircraft, communications and traffic services, nine months ended September 30, 2026other | $508M | – | 12.7% |
| Passenger services, nine months ended September 30, 2026other | $127M | – | 13.5% |
| Travel agent commissions, nine months ended September 30, 2026other | $80M | – | 15.5% |
| Selling and administrative expense, nine months ended September 30, 2026other | $284M | – | 10.0% |
| Aircraft leasing expense, nine months ended September 30, 2026other | $11M | – | (9.4)% |
| Depreciation and amortization, nine months ended September 30, 2026other | $579M | – | 7.8% |
| Total operating income, three months ended September 30, 2026other | $190M | – | (25.0)% |
| Operating income margin, three months ended September 30, 2026other | 11.7% | – | (6.0)p.p. |
| Total operating income, nine months ended September 30, 2026other | $399M | – | (36.1)% |
| Operating income margin, nine months ended September 30, 2026other | 9.0% | – | (6.9)p.p. |
| Net finance cost, three months ended September 30, 2026other | −$142M | – | 7.7% |
| Income before income tax, three months ended September 30, 2026other | $48M | – | (60.6)% |
| Income tax expense, three months ended September 30, 2026other | $7M | – | (70.4)% |
| Net income for the period, three months ended September 30, 2026other | $41M | – | (58.1)% |
| Net income margin, three months ended September 30, 2026other | 2.5% | – | (4.3)p.p. |
| Net finance cost, nine months ended September 30, 2026other | −$407M | – | 3.9% |
| Income before income tax, nine months ended September 30, 2026other | −$7M | – | NA |
| Income tax benefit, nine months ended September 30, 2026other | −$1M | – | NA |
| Net loss for the period, nine months ended September 30, 2026other | −$6M | – | NA |
| Net income (loss) margin, nine months ended September 30, 2026other | (0.1)% | – | (4.9)p.p. |
| Basic income per share from continuing operations, three months ended September 30, 2026other | 0.03 (US dollars) | – | – |
| Diluted income per share from continuing operations, three months ended September 30, 2026other | 0.03 (US dollars) | – | – |
| Basic income (loss) per ADS, three months ended September 30, 2026other | 0.28 (US dollars) | – | – |
| Diluted income (loss) per ADS, three months ended September 30, 2026other | 0.28 (US dollars) | – | – |
| Total ASMs, three months ended September 30, 2026other | 9.39B | – | 1.3% |
| Total RPMs, three months ended September 30, 2026other | 8.30B | – | 1.4% |
| Load factor on scheduled flights, three months ended September 30, 2026other | 88.3% | – | 0.1p.p. |
| Passengers, three months ended September 30, 2026other | 6,161 ('000) | – | (3.2)% |
| Total revenue / ASM, three months ended September 30, 2026other | 17.2 (USD cents) | – | 12.2% |
| Total cost / ASM, three months ended September 30, 2026other | 15.1 (USD cents) | – | 19.4% |
| Total cost excluding fuel / ASM, three months ended September 30, 2026other | 10.1 (USD cents) | – | 7.1% |
| Fuel cost per gallon, three months ended September 30, 2026other | 3.99 (USD cents) | – | 60.6% |
| Net cash from operating activities, nine months ended September 30, 2026other | $542M | – | – |
| Acquisition of properties and equipment (including major maintenance), nine months ended September 30, 2026other | −$258M | – | – |
| Net cash used in investing activities, nine months ended September 30, 2026other | −$270M | – | – |
| Payments of lease liabilities, nine months ended September 30, 2026other | −$304M | – | – |
| Repayment of loans, nine months ended September 30, 2026other | −$24M | – | – |
| Net cash used in financing activities, nine months ended September 30, 2026other | −$328M | – | – |
| Cash and cash equivalents, September 30, 2026other | $965M | – | – |
| Adjusted net debt, September 30, 2026non-GAAP | $3.10B | – | – |
| Net leverage ratio, September 30, 2026non-GAAP | 2.1x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Domestic revenue, three months ended September 30, 2026The release cited higher passenger revenue, targeted pricing actions, and commercial revenues. | 541 (USD million) | – | 6.7% |
| International revenue, three months ended September 30, 2026Higher passenger revenue across international markets and selective allocation of capacity toward higher-yielding international markets. | 1,078 (USD million) | – | 17.4% |
4Q26 and FY26 outlook
- Note4Q26 total capacity (ASMs) YoY: ~ +7.0% to +8.0%.
- NoteFY26 total capacity (ASMs) YoY: ~ +2.0% to +3.0%.
- Note4Q26 total revenue YoY: ~ +14.0% to +16.0%.
- NoteFY26 total revenue YoY: ~ +13.5% to +14.5%.
- Note4Q26 Adjusted EBITDAR Margin: ~ 19.5% to 21.5%.
- NoteFY26 Adjusted EBITDAR Margin: ~ 21.5% to 22.5%.
- Note4Q26 Operating Income Margin: ~ 7.5% to 9.5%.
- NoteFY26 Operating Income Margin: ~ 8.5% to 9.5%.
- NoteAverage all-in fuel price for the fourth quarter: approximately USD $4.5 per gallon.
- NoteExchange rate assumption for the fourth quarter: $18.0 Mexican pesos per U.S. dollar.
- NoteCASM-Ex is expected to remain broadly stable year-over-year in 4Q26.
What drove it
- Total revenue reached $1.6 billion, a quarterly record, supported by higher passenger revenue, particularly across international markets.
- Targeted pricing actions were implemented to mitigate higher fuel costs.
- The loyalty program breakage update resulted in recognition of $48.7 million in revenue and an adjustment to deferred liability.
- Premium revenue mix reached 42% of passenger-related revenue, 1 p.p. above 3Q25.
- Cargo revenues grew 15.8%, driven by commercial initiatives.
- Capacity increased 1.3% year over year and the Company selectively allocated capacity toward higher-yielding international markets.
- TRASM reached 17.2¢, up 12.2% year over year.
Concerns
- Jet-fuel expense increased 57.6% year over year to 469 (USD millions), and exceeded the level contemplated in 3Q26 guidance by approximately $93.0 million.
- Fuel cost per gallon increased 60.6% year over year.
- Total operating expenses increased 21.9%, faster than total revenue growth of 13.6%.
- Adjusted EBITDAR declined 11.9%, operating income declined 25.0%, and net income declined 58.1%.
- CASM-Ex increased 7.1%, reflecting the stronger Mexican peso and inflationary pressure.
- Net leverage ratio was 2.1x as of September 30, 2026, compared with 1.8x as of December 31, 2025.
- Passengers declined 3.2% year over year despite the 1.3% increase in ASMs.
What to watch
- Execution against 4Q26 total revenue growth guidance of ~ +14.0% to +16.0%.
- Fuel prices relative to the fourth-quarter assumption of approximately USD $4.5 per gallon.
- Whether CASM-Ex remains broadly stable year-over-year in 4Q26 as guided.
- Delivery of 4Q26 adjusted EBITDAR margin of ~ 19.5% to 21.5% and operating income margin of ~ 7.5% to 9.5%.
- International-market demand, premium revenue mix, loyalty revenue, cargo revenue, and higher utilization of the existing fleet.
- The planned 4Q26 capacity increase of ~ +7.0% to +8.0% and its effect on operating leverage.
Balance sheet and cash flow
- Cash and cash equivalents were 965 (USD millions) as of September 30, 2026, compared with 1,024 (USD millions) as of December 31, 2025.
- Total loans and borrowings, including leases, were 4,063 (USD millions) as of September 30, 2026, compared with 4,055 (USD millions) as of December 31, 2025.
- Adjusted net debt was 3,098 (USD millions) as of September 30, 2026, compared with 3,031 (USD millions) as of December 31, 2025.
- Net leverage ratio was 2.1x as of September 30, 2026, compared with 1.8x as of December 31, 2025.
- Liquidity totaled $1.2 billion, representing 20.7% of last-twelve-month revenue.
- The revolving credit facility was renewed and upsized from $200.0 million to $250.0 million.
- Net cash from operating activities was 542 (USD millions) for the nine months ended September 30, 2026, compared with 568 (USD millions) in 2025.
- The Company repaid $7.2 million of financial debt during the third quarter.
Analysis
Aeroméxico delivered record third-quarter revenue of $1.6 billion, up 13.6% year over year, while capacity increased only 1.3%. International revenue grew 17.4% to 1,078 (USD million), ahead of domestic revenue growth of 6.7% to 541 (USD million). TRASM rose 12.2% to 17.2 (USD cents), supported by targeted pricing, international demand, cargo, loyalty and other commercial revenue. The loyalty breakage update contributed $48.7 million of revenue, while premium revenue mix reached 42% of passenger-related revenue.
The revenue result did not fully offset the fuel shock. Jet-fuel expense rose 57.6% to 469 (USD millions), with fuel cost per gallon up 60.6%. Total operating expenses increased 21.9%, outpacing revenue growth, and total cost per ASM increased 19.4%. Excluding fuel, cost per ASM increased 7.1%, which the Company attributed to the stronger Mexican peso, wage and benefit inflation, distribution costs, and depreciation and amortization associated with fleet growth.
Profitability remained positive but deteriorated materially from the prior year. Adjusted EBITDAR was 389 (USD millions), down 11.9%, and its margin declined 7.0p.p. to 24.0%. Operating income was 190 (USD millions), down 25.0%, with operating margin declining 6.0p.p. to 11.7%. Net income was 41 (USD millions), down 58.1%, as net finance cost increased 7.7% to (142) (USD millions), principally due to lease obligations related to fleet expansion.
Liquidity was $1.2 billion, equal to 20.7% of last-twelve-month revenue, following renewal and expansion of the revolving credit facility from $200.0 million to $250.0 million. Nine-month net cash from operating activities was 542 (USD millions), and acquisition of properties and equipment, including major maintenance, was (258) (USD millions). Cash and cash equivalents were 965 (USD millions) at September 30, 2026. Adjusted net debt rose to 3,098 (USD millions) from 3,031 (USD millions) at December 31, 2025, and net leverage increased to 2.1x from 1.8x.
For 4Q26, the Company expects revenue growth of ~ +14.0% to +16.0%, ASM growth of ~ +7.0% to +8.0%, adjusted EBITDAR margin of ~ 19.5% to 21.5%, and operating income margin of ~ 7.5% to 9.5%. The outlook assumes an average all-in fuel price of approximately USD $4.5 per gallon and $18.0 Mexican pesos per U.S. dollar. Management expects greater utilization of the existing fleet to support capacity growth, operating leverage, and broadly stable CASM-Ex year over year.
Management, verbatim
Aeroméxico delivered another strong quarter, with record revenue and a double-digit operating margin of 12%. Demand remained healthy, driven primarily by strong international markets, premium revenue growth, and continued momentum in our loyalty program.
Andrés Conesa, Chief Executive Officer
Despite jet fuel prices reaching historic highs during the quarter, targeted revenue initiatives, disciplined cost management, and moderated capacity deployment enabled us to offset the impact of higher fuel costs.
Andrés Conesa, Chief Executive Officer
Looking ahead, demand trends remain constructive, and we expect fourth quarter revenue to grow by approximately 15% year over year.
Andrés Conesa, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Gross margin was not reported.
- Free cash flow was not reported.
- Tax rate was not reported.
- Share repurchases and dividends were not reported.
- Quarterly operating cash flow, quarterly capital expenditures, and quarterly free cash flow were not reported.
- Prior-quarter comparisons were not reported for the presented income statement and operating metrics.
- No separate reportable operating segments were disclosed; domestic and international revenue were presented as revenue categories.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Aeroméxico filed a Form 6‑K with the SEC, providing its Q3 2026 financial results and outlook.
Ticker impact
Aeroméxico issued its unaudited Q3 2026 earnings, reporting record $1.6 bn revenue and updated guidance for Q4 and FY.
likely upside as updated guidance and record revenue support investor confidence
Record quarterly revenue, improved margins and a forward‑looking outlook with 14‑16% revenue growth guidance provide fresh, material information that can move the stock.
Market effects
Airline sector may see broader optimism as Aeroméxico demonstrates resilience to high fuel costs.
Latin American travel market could benefit from the airline's strong performance.
Limited to investors focused on airline and emerging‑market equities.
Counterpoint
Higher fuel costs could erode future profitability if price pass‑through fails.
Key entities
- personAndrés Conesa
CEO of Aeroméxico, quoted in the earnings release.
