Group Aeromexico’s second-quarter financial results have revealed its revenue has risen nearly 50 per cent from the first few months of the year to US$49.9 million.
While the airline’s revenue remains 40.5 per cent lower than pre-pandemic levels, the business said it is now on a rapid track to recovery, especially as it fends off potential bankruptcy.
The second quarter saw Aeromexico report an operating loss of US$59.4 million, excluding restructuring costs of US$30 million pesos, up from US$109 million in the first quarter.
“Aeromexico has been successful in managing its network on a flight-by-flight basis ensuring that its operations are cash generative,” the airline said in its press release.
“During the second quarter, the company continued to see recovery in travel demand supported by the strengthening of its domestic and international network.”
As Mexican travel recovers, the airline will expand flight services in the coming months in line with demand and local regulations.
Last year, Aeromexico reported a net loss of US$2.1 billion, with a 58.5 per cent decline in revenue.
This led to the airline seeking Chapter 11 bankruptcy protection in June last year, becoming the third Latin American airline to make that move within months.
Aeromexico followed Latin America’s largest carrier, Chile’s Latam Airlines Group SA, filing for Chapter 11 in May, along with Colombia’s Avianca Holding’s SA that month, too.
The Chapter 11 process allows companies to restructure financially and operationally in a court-supervised setting.
This did not internally affect the airline’s operations, but the financing enabled the carrier to meet its future obligations and continue providing services.
“The company will continue to use the advantages of the Chapter 11 proceeding to strengthen its financial position and liquidity, protect and preserve operations and assets, and implement the necessary adjustments to manage the impact of COVID-19,” it said.
Aeromexico received its third disbursement this year in February since the Chapter 11 (following two previously) which assisted the airline to upgrade its fleet 11.3 per cent compared to 2019.
The carrier now operates a fleet of 118 aircraft, comprised of 47 Embraer 190s, 53 Boeing 737’s, and 18 Boeing 787 Dreamliners.
The increased 737 jets come as the company announced yesterday it would acquire 12 more of them from next October, after the US Court for the Southern District of New York approves.
June this year, the company received a 75-day extension period to further propose a plan of reorganisation.