Grupo Aeromexico 2017 net profit hit by rise in fuel costs, inflation
Grupo Aeromexico reported a MXP18m (US$914,000) net profit for 2017, down 98.4% from MXP1.1b net income in 2016. While economic growth in Mexico remained stable in 2017, as the country’s GDP increased 2.3%, the peso appreciated 4.7% year-over-year relative to the US dollar and annual inflation hit 6.8%, the country’s highest rate in 17 years. The rise in inflation put pressure on peso cost line items, the company said. Increasing fuel prices took a toll as well, rising 34%, as peso-dominated fuel prices increased 16.3% YOY during the fourth quarter. Aeromexico’s full-year revenue increased 14% to MXP61.5b, reflecting a rise in passenger, cargo and ancillary revenue but partially offset by a drop-off in charter revenue. The airline incorporated three Boeing 787-9s into its fleet during the year, which contributed toward a 29.3% rise in air cargo revenue, as well as a 14.1% increase in international passenger revenue. Aeromexico’s total capacity grew 14.6%% during the year to 48.9b ASKs, as the airline continued to upgauge its fleet not only with new 787-9s but also with the addition of four 737-800s and nine Embraer E190s. Three 737-700s and 15 ERJ145s were redelivered during the year, creating a net reduction of two aircraft in Grupo Aeromexico’s total fleet of 131 aircraft, as of Dec. 31, 2017. The group added five leased-in aircraft during the fourth quarter—two 737-800s and three E190s. One of the new 787-9s, under a finance lease agreement, was introduced during Q4 as well.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-02-22/sky/grupo-aeromexico-2017-net-profit-hit-by-rise-in-fuel-costs-inflation
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Grupo Aeromexico 2017 net profit hit by rise in fuel costs, inflation
Grupo Aeromexico reported a MXP18m (US$914,000) net profit for 2017, down 98.4% from MXP1.1b net income in 2016. While economic growth in Mexico remained stable in 2017, as the country’s GDP increased 2.3%, the peso appreciated 4.7% year-over-year relative to the US dollar and annual inflation hit 6.8%, the country’s highest rate in 17 years. The rise in inflation put pressure on peso cost line items, the company said. Increasing fuel prices took a toll as well, rising 34%, as peso-dominated fuel prices increased 16.3% YOY during the fourth quarter. Aeromexico’s full-year revenue increased 14% to MXP61.5b, reflecting a rise in passenger, cargo and ancillary revenue but partially offset by a drop-off in charter revenue. The airline incorporated three Boeing 787-9s into its fleet during the year, which contributed toward a 29.3% rise in air cargo revenue, as well as a 14.1% increase in international passenger revenue. Aeromexico’s total capacity grew 14.6%% during the year to 48.9b ASKs, as the airline continued to upgauge its fleet not only with new 787-9s but also with the addition of four 737-800s and nine Embraer E190s. Three 737-700s and 15 ERJ145s were redelivered during the year, creating a net reduction of two aircraft in Grupo Aeromexico’s total fleet of 131 aircraft, as of Dec. 31, 2017. The group added five leased-in aircraft during the fourth quarter—two 737-800s and three E190s. One of the new 787-9s, under a finance lease agreement, was introduced during Q4 as well.<br/>
