Aeromexico to restructure its fleet in ‘rational and disciplined approach to growth’

This has been one of the most challenging years in the last decade for the domestic aviation industry. The industry has lost $1.6 billion pesos at an operating profit level in the first six months of the year. While Aeromexico has continued to deliver an operating profit, the Company has delivered a net loss so far this year. Furthermore, with fuel prices at more than $80 dollars per barrel and overcapacity in the market, the operating environment remains complicated.

Consequently, Aeromexico has made the decision to restructure its fleet and network demonstrating, as it always has done, a rational and disciplined approach to growth. The company will retire from operation three Embraer 170s and two Boeing 737-700s, and given its fleet flexibility strategy, moving forwards, the Company can reduce or grow capacity rapidly.

As a result of this capacity reduction, Aeroméxico will make various changes to its network, including the suspension of the following routes during 2019: Mexico City to Boston, Washington Dulles & Portland; Monterrey to Las Vegas, Tijuana, Merida & Veracruz; and Guadalajara to Cancun and San Jose, California.

These changes imply that Aeromexico’s seat offering will remain flat in 2019 compared to 2018, the first time since 2009 that the airline will not grow.

The airline will continue with its customer-focused investment strategy by guaranteeing a world-class experience through service, product and technology initiatives.

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. Aeromexico, Mexico’s global airline, operates more than 600 daily flights and its main hub is in Terminal 2 at the Mexico City International Airport. Its destinations network features more than 90 cities on three continents, including 44 destinations in Mexico, 22 in the United States, 15 in Latin America, 3 in Canada, 4 in Europe, and 3 in Asia.

The Group’s operating fleet of more than 130 aircraft is comprised of Boeing 787 and 737 jet airliners and next generation Embraer 170 and 190 models. In 2012, the airline announced the most significant investment strategy in aviation history in Mexico, to purchase 100 Boeing aircraft including 90 MAX B737 jet airliners and 10 B787-9 Dreamliner’s.

As a founding member of the SkyTeam airline alliance, Aeromexico offers customers more than 1,000 destinations in 179 countries served by the 20 SkyTeam airline partners rewarding passengers with benefits including access to 636 premium airport lounges around the world. Aeromexico also offers travel on its codeshare partner flights with Delta Air Lines, Air France-KLM, Avianca, Copa Airlines and WestJet, with extensive connectivity in countries like the United States, Brazil, Canada, Colombia and Peru.

This has been one of the most challenging years in the last decade for the domestic aviation industry. The industry has lost $1.6 billion . . .

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