Aeromexico posts record $1.5bn Q2 revenue despite World Cup dip
Aeromexico overcame a World Cup-driven traffic slump and an 80% fuel cost surge to post record second-quarter revenue, demonstrating the pricing power of its post-restructuring premium strategy.
Aeromexico generated record second-quarter revenue of $1.5 billion, a 12.6% year-over-year increase, even as the 2026 FIFA World Cup triggered a 9% drop in June passenger numbers. Domestic traffic fell 13% that month as corporate and leisure travel paused during Mexico’s national team matches. CEO Andrés Conesa Labastida characterized the June performance as "consistent with Q2 expectations," noting the month still delivered the best revenue in the airline's history for that period.
The record top line was driven by a structural shift toward higher-yield passengers. Premium cabin sales accounted for a record 43% of passenger revenue, while Aeromexico Rewards members made up 39% of passengers, up seven percentage points from a year ago. Crucially for investors, the airline restricted available seat mile growth to just 1.9%, allowing it to recoup 76% of its elevated fuel costs through stronger pricing.
That pricing discipline could not fully insulate the bottom line from a severe fuel shock. Fuel expenses surged 79.9% to $493.8 million, pushing total operating costs up roughly 30% and swinging the carrier to a $57.7 million net loss from a $68 million profit a year earlier. Operating income landed at $68 million, yielding a margin between 4.6% and 5%.
Management signaled that the worst of the fuel impact has passed. CFO Ricardo Sánchez Baker told investors the airline expects to recover more than 100% of the second-quarter fuel cost overrun in the second half of the year, as newly sold tickets reflect current, higher fuel prices. The company projected higher EBITDA and operating income for both the third and fourth quarters compared to 2025.
The airline's post-Chapter 11 balance sheet provides a buffer against external shocks. Aeromexico ended the quarter with $1.2 billion in liquidity, no cash burn, and a net debt reduction of roughly $70 million. Full-year 2026 revenue guidance stands at $6.05 billion to $6.12 billion, with operating margins expected between 11% and 13%.
While ongoing restrictions on U.S. route expansion from Mexico City cap growth in lucrative North American markets, the carrier is pivoting to Europe and South America. Aeromexico will accelerate capacity growth to between 6.5% and 8% in the fourth quarter, supported by a $5 billion fleet modernization program. Conesa pointed to "healthy demand for the rest of 2026," with projected fourth-quarter adjusted EBITDA margins reaching 15.5% to 18.5%.
