International capacity rise helps support Aeromexico Q1 results

Grupo Aeromexico, the parent company of Mexico’s legacy carrier, says a small rise in international capacity is helping the airline slowly recover from the coronavirus crisis as it continues to work through bankruptcy protection proceedings. That said, the Mexico City-based airline on 20 April joined industry peers in reporting a decline in revenue and a loss for Q1 2021, as the industry began to rebuild following Covid-plagued 2020. In Q1 2021, revenue fell 51% year-on-year to Ps6.9b ($346m), down from Ps14.2b during the same quarter in 2020, the carrier says. The company’s net loss for the January-March period was Ps4.2b, compared to Ps2.5b a year earlier. “In spite of the current challenging environment, the market showed encouraging signs of recovery,” the airline says on 20 April. “Aeromexico has been successful in managing its network on a flight by flight basis ensuring that its operations are cash generative. During the first quarter, the company saw some recovery in travel demand supported by the strengthening of its domestic and international network.” The airline’s Q1 capacity increased 7.3% from the final quarter of 2020, “primarily driven by a sequential recovery in the international market.” That said, ASKs declined 37.5% year-on-year due to the impact of the Covid-19 pandemic. <br/>