EL7.AI
BondsMedium•28 October 2026•
4 min read

Aeroméxico Rated BB- After Upgrade From B+, Outlook Remains Stable

Key Facts

1On October 28, S&P raised Aeroméxico’s issuer rating to BB- from B+, with a stable outlook.
2The ratings on the 2029 and 2031 bonds rose to BB from BB-.
3Total debt fell 7% to $1.153 billion, while the debt-to-earnings ratio rose to 2.9 times from 2.6 times.
4Revenue per available seat kilometer rose 12% to 10.12 cents, while adjusted annual earnings fell 15% to $1.304 billion.
5The agency linked the potential for further positive momentum to the cash-flow-to-debt ratio moving toward 45% over 12 to 18 months.

On October 28, S&P Global Ratings raised Aeroméxico’s issuer credit rating to BB- from B+ and maintained a stable outlook, citing resilient operating profitability and disciplined balance-sheet management despite cost pressures in the aviation sector. The agency also raised the ratings on the company’s senior secured bonds due in 2029 and 2031 to BB from BB-, one notch above the issuer rating. The company said the agency took into account the resilience of its business model and its ability to continue generating earnings amid industry volatility and higher operating costs. The move places improved balance-sheet management alongside visible challenges in debt and profitability indicators during the first nine months of the year. Total debt declined, but the ratio of total debt to earnings before interest, taxes, depreciation and amortization rose, while adjusted annual earnings under the agency’s measure fell.

Aeroméxico said S&P considered its premium service model and high-value customer base competitive advantages. It added that capacity management and geographic diversification support cost improvements, while financial discipline helps sustain profitability despite market volatility. Operating data show the company increased its international network share to 71.4% of capacity, while keeping its seat load factor near 86%. In the third quarter, capacity measured in available seat kilometers rose 1.3% year over year, but passenger numbers fell 3.2%. Quarterly revenue was $1.6 billion, up 13.6% from the corresponding period in 2025, a record level according to the company’s results.

In the first nine months of 2026, Aeroméxico’s revenue rose to $4.440 billion, up 13.2% year over year, while adjusted earnings before interest, taxes, depreciation and lease costs fell to $989 million from $1.171 billion, a decline of 15.5%. The margin on this measure fell to 22.3% from 29.9%, down 7.6 percentage points. According to figures cited by S&P, adjusted annual earnings before interest, taxes, depreciation and amortization fell 15% to $1.304 billion, with a margin of 22.0%. In contrast, revenue per available seat kilometer rose 12% to 10.12 cents, reflecting the company’s ability to increase returns from offered capacity. The agency said fare increases offset 123% of the rise in jet fuel expenses during the nine months, as total revenue increased by $517 million.

Fuel cost pressure was pronounced in the third quarter, when expenses reached $469.0 million, up 57.6% year over year, or $171.5 million. The company said in its results that quarterly revenue rose despite the increase in fuel costs, while S&P noted that the company’s ability to pass costs through to fares supported operating profitability. On debt, total debt fell 7% year over year to $1.153 billion at September 30, through scheduled lease repayments and without issuing new debt. However, the ratio of total debt to earnings before interest, taxes, depreciation and amortization rose to 2.9 times from 2.6 times, after adjusted annual earnings declined. The ratio of cash flow from operations to total debt was 25.2%, another measure the agency included in its assessment of creditworthiness.

Liquidity stood at $1.2 billion in the third quarter, equivalent to 20.7% of the previous 12 months’ revenue, according to an Aeroméxico disclosure. The company said liquidity was supported by positive cash generation and committed credit lines. S&P’s report estimated cash reserves at about $1 billion, alongside an undrawn $250 million credit facility. These resources complete the funding picture underpinning the agency’s assessment, together with lower total debt and no new debt issuance during the period cited. Even so, the debt-to-earnings ratio remained above its comparable level, making continued improvement in cash flow and profitability indicators central to the credit outlook.

In its third-quarter results, Chief Executive Andrés Conesa said demand trends remained constructive and the company expected revenue to grow about 15% year over year in the fourth quarter of 2026. The company’s guidance targets revenue growth of between 14.0% and 16.0%, and an adjusted earnings-before-interest, taxes, depreciation and lease-costs margin of between 19.5% and 21.5%. The forecast assumes an average all-in fuel price of about $4.5 per gallon during the quarter. S&P said any further positive momentum could be tied to improved operating efficiency and pricing strength, lifting the ratio of cash flow from operations to total debt toward 45% over the next 12 to 18 months. The outlook remained stable alongside the upgrade, while the agency made this potential improvement a condition for the subsequent credit trajectory.