Grupo Aeroméxico presents financial results for 2019
The capacity of the airline, measured in available seat-kilometers (ASKs),
decreased 4.9% year-over-year, as a result of the negative impact generated by the temporary suspension of operations of the Boeing 737 MAX
During the quarter Grupo Aeroméxico reached a confidential partial compensation agreement with Boeing to mitigate the financial impacts arising from the temporary suspension of operations of Boeing 737 MAX equipment. The financial results reported reflect certain elements of this agreement. Other elements within the agreement will be accounted for as a reduction in aircraft costs, which is expected to decrease depreciation expenses in the future.
During the fourth quarter of 2019, Grupo Aeroméxico's revenues reached $ 17,224 million pesos, a 6.7% decrease compared to the same period of the previous year. Revenue from ASK in dollars (IASK) increased by 0.9%, while Yield in dollars increased 1.2%, both figures compared to the same period of 2018.
The Cost per ASK (CASK) in dollars decreased 8.4%, while the CASK excluding fuel in dollars decreased 8.2%, reflecting the commitment of Grupo Aeroméxico to optimize its unit costs.
The EBITDA stood at $ 4,680 million pesos during the fourth quarter of 2019, an increase of $ 2,295 million pesos compared to the same period of the previous year. EBITAR margin was 27.2%.
During the fourth quarter of 2019 Grupo Aeroméxico reported an operating profit of $ 1,748 million pesos, with an operating margin of 10.1%. This result represented an improvement of $ 2,650 million pesos compared to the same period of 2018.
In the fourth quarter of 2019 there was a net loss of $ 57 million pesos, with a negative margin of 0.3%.
During 2019, the total revenues of Grupo Aeroméxico stood at $ 68,766 million pesos, which represented a decrease of 2.1% compared to the same period of the previous year. Grupo Aeroméxico reported an operating profit of $ 2,774 million pesos, with an operating margin of 4.0%. Aeromexico reported a net loss of $ 2,369 million pesos.
During the fourth quarter of the year the cash flow generation was solid, with a net cash flow generated by operating activities of $ 4,282 million pesos. As of December 31, 2019, the cash balance was $ 9.072 million pesos, which represented an index of 13.2% of the Company's operating income in the last 12 months.
During the quarter, Grupo Aeroméxico added four teams to its fleet, a Boeing 787-9 and three Boing 737-800s. As of December 31, 2019, Grupo Aeroméxico's operating fleet was 125 aircraft, without considering the six Boeing 737 MAX equipment, in temporary suspension of operations. Boeing has said they expect the team to be recertified by the United States Federal Aviation Administration (FAA) by summer 2020.