Aeroméxico’s Record $1.619 Billion Revenue Accompanies Upgrade to BB-
Key Facts
S&P Global Ratings raised Grupo Aeroméxico’s rating to BB- from B+, according to an announcement published by the company on October 28. The company said the upgrade reflects the resilience of its business model, financial discipline and ability to remain profitable despite volatility in the aviation sector and higher operating costs. The announcement came days after Aeroméxico reported record third-quarter revenue of $1.619 billion. Revenue rose 13.6% year over year, driven by faster growth in international markets than in the domestic market. The results place the upgrade against a backdrop of strong operating performance on one hand and mounting pressure on costs and earnings on the other.
International revenue reached $1.078 billion in the third quarter, up 17.4% from the same period a year earlier, while domestic revenue rose to $541 million, a gain of 6.7%. The company said growth in passenger revenue, particularly in international markets, was the main driver of the increase. It added that targeted pricing measures helped mitigate the impact of higher fuel prices, alongside contributions from its loyalty program and cargo revenue. The company recorded $48.7 million in revenue from a change in how it accounts for unused loyalty points. The adjustment bolstered revenue for the period, while passenger growth and pricing remained key drivers of commercial performance.
But sales growth did not prevent operating income from falling 25% year over year to $190 million in the third quarter. The operating income margin declined to 11.7%, compared with 17.7% in the third quarter of 2025. Fuel expenses rose to $469 million, up 57.6% year over year, or $171.5 million. Management said revenue growth initiatives and cost management helped absorb the impact of higher fuel costs. The divergence between revenue growth and lower operating income highlights the pressure on margins during the period, as one of the company’s largest cost items increased.
The company ended the quarter with total liquidity of $1.2 billion, equal to 20.7% of revenue for the trailing twelve months, while adjusted net debt to EBITDAR stood at about 2.1 times. Cash and cash equivalents totaled $965.1 million on September 30, and total liquidity included the credit facility. These figures provide a picture of the company’s available financial resources as operating costs rise alongside a decline in operating income. S&P had assigned Grupo Aeroméxico a B+ rating with a stable outlook in its October 28, 2025, update on the U.S. transportation sector; that was the rating before the current upgrade. The company’s announcement confirms the upgrade to BB-, but does not report a change to the ratings on its 2029 and 2031 bonds.
The company expects fourth-quarter 2026 revenue to grow about 15% year over year, Chief Executive Andrés Conesa said, adding that demand remained strong in the third quarter. The company’s guidance sets expected revenue growth at between 14.0% and 16.0%, and capacity growth at between 7.0% and 8.0%. It also targets an adjusted EBITDAR margin of between 19.5% and 21.5% in the fourth quarter. Conesa linked the outlook to pricing measures and disciplined cost management in the face of higher fuel costs. The guidance offers the company’s indicators for the coming period, while higher fuel expenses and the recent decline in the operating margin remain part of the context for its results.