Aeromexico Reports 2Q20 Results

MEXICO CITY, July 28, 2020 /PRNewswire/ -- Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), today reported its unaudited consolidated results for the second quarter 2020.

KEY FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER 2020

• Aeromexico announced on June 30th that it and certain of its affiliates have filed voluntary Chapter 11 petitions in the United States ("Chapter 11") to implement a financial restructuring, while continuing to serve customers. The Company intends to use the Chapter 11 process to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement necessary operational changes to address the impact of the ongoing COVID-19 pandemic.
• Grupo Aeromexico's second quarter capacity, measured in available seat kilometers (ASKs) decreased by 77.8% year-on-year, resulting from the impact of the COVID-19 pandemic.
• Grupo Aeromexico's second quarter 2020 revenue reached $2.6 billion pesos, an 84.5% year-on-year decrease. During the quarter, revenue per ASK (RASK) in pesos decreased by 30.3% while yield decreased by 7.2%.
• During the quarter, Aeromexico recognized total one-off non-cash adjustments of $20.0 billion pesos from which $16.8 billion pesos impacted operating profit, mainly associated to impairment and accelerated depreciation and amortization of property and equipment and intangible assets, early redeliveries of flight equipment and deferred taxes reserve of tax loss carryforwards. As a result, second quarter 2020 operating loss amounted to $23.4 billion pesos. EBITDAR for the period amounted to negative 5.0 billion pesos. Excluding one-off non-cash items operating loss amounted to $6.6 billion pesos, while EBITDAR was negative $2.7 billion pesos.
• Cost per ASK (CASK) in pesos reached $9.18 pesos, a year-on year increase of $7.86 pesos. CASK in dollars reached $0.393, a year-on-year increase of $0.323 dollars. Excluding one-off non-cash items CASK in pesos increased by $1.93 pesos, while CASK in dollars increased by $0.07 dollars, mainly due to the reduced operations derived from the impact of the COVID-19 pandemic.
• Aeromexico´s cash position as of June 30th, 2020, including restricted cash, amounted to $5.8 billion pesos equivalent to approximately $250 million dollars. Aeromexico´s cash including restricted cash to last-twelve-month revenue ratio was 11.0%. Excluding restricted cash, Aeromexico´s cash position was $3.7 billion pesos, equivalent to $160 million dollars. As of June 30th, 2020, Grupo Aeromexico's operating fleet comprised 118 aircraft excluding the six Boeing 737 MAX aircraft temporarily grounded.

Grupo Aeroméxico announced on June 30th 2020 that it has started a voluntary process of financial restructuring under Chapter 11 of the legislation of the United States of America, which will be carried out in an orderly manner while it continues operating and offering services to its customers with the same quality that characterizes it, contracting from its suppliers the goods and services required for its operation. The Company will use the advantages of Chapter 11 to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement the necessary adjustments to face the impact of COVID-19.

This press release contains certain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. We use words such as "believe," "anticipate," "plan," "expect,", "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "should" and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. The Company is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Grupo Aeromexico
Grupo Aeromexico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeroméxico, Mexico's global airline, has its main operations center in Terminal 2 of the Mexico City International Airport. Its destination network has reach in Mexico, the United States, Canada, Central America, South America, Asia and Europe. The Group's current operating fleet includes 118 Boeing 787 and 737 aircraft, as well as the latest generation Embraer, 170 and 190. Aeroméxico is a founding partner of SkyTeam, an alliance that celebrates 20 years and offers connectivity in more than 170 countries, through the 19 partner airlines. Aeroméxico created and implemented a Health and Hygiene Management System (SGSH) to protect its clients and collaborators at all stages of its operation.

www.aeromexico.com
www.skyteam.com

SOURCE Grupo Aeromexico S.A.B. de C.V.