Grupo Aeromexico totaled a consolidated internet loss of US$2.1 billion at some stage in 2020 due to the heavy have an impact on the COVID-19 crisis. The airline, presently below a Chapter eleven financial disaster process, expects to have a turnaround in 2021.
On June 30, 2020, Grupo Aeromexico filed voluntary Chapter eleven petitions in the United States. The financial ruin system permits the airline to enforce a monetary restructuring whilst persevering to serve customers.So far, the airline has effectively acquired approval from the United States Bankruptcy Court for up to US$1 billion of DIP Financing. This quantity is disbursed in a Tranche 1 facility of US$200 million and a Tranche two facility of US$800 million.
Aeromexico has already withdrawn US$375 million of its DIP Financing.
Additionally, the airline has satisfactorily concluded negotiations in Collective Bargaining Agreements of its 4 employees Unions. Aeromexico stated that these agreements were crucial to face the destructive consequences triggered globally to the airline enterprise by using the COVID-19 pandemic.
Moreover, the Mexican provider says that it has managed its community on a flight by using flight groundwork to make sure that its operations are money generative.
During the fourth quarter, Aeromexico benefited from the home healing in the Mexican aviation market. It additionally increased its operations between Mexico and the US throughout quite a few routes from Mexico City. Additionally, it accelerated frequencies to Guatemala City, Sao Paulo, Buenos Aires, San José, Santo Domingo, and Medellín in Latin America. Aeromexico stated,
“The company remains committed to safely expand flight service in the coming months, in line with local regulations and customer demand, in full compliance with the highest health standards and protocols.”
Despite the reputedly greater sturdy outcomes in the course of the closing quarter of 2020, Aeromexico had report internet losses all through the final year.
The airline had a consolidated internet loss of US$2.1 billion after seeing its whole revenues fall with the aid of 58.5% between 2019 and 2020. The profits earlier than interest, taxes, depreciation, amortization, and restructuring or hire (EBITDAR) of Aeromexico used to be bad 6.8 billion pesos. The loss per share in Mexican pesos was once 62.33 (about US$3 per share).
During 2020, Aeromexico’s ability fell by means of 50%, whilst its demand diminished with the aid of 61.3%. The load element on scheduled flights used to be 70.3%. The oldest Mexican provider transported 9.48 million passengers, dropping over eleven million vacationers in contrast to the preceding year.
According to the airline, its restructuring fees (that is, the Chapter eleven reorganization) have had a toll of 1.715 billion pesos (approximately US$85 million so far).
Aeromexico closed the fourth quarter with money stability of 8.2 billion pesos, equal to US$399 million, together with limited cash.
Unfortunately, Aeromexico hasn’t been very informative concerning the future of its fleet. The airline closed the yr with a fleet comprised of 106 aircraft. It had 19 Boeing 787 Dreamliner, 5 B737-700, 30 B737-800, six B737 MAX 8, and forty-seven Embraer E-190.
Nevertheless, in January, Aeromexico rejected the hire contract of one Boeing 787-8, lowering its long-haul fleet.
Aeromexico expects to in addition minimize its fleet for the duration of the following months. In a current action grew to become to the United States Bankruptcy Court, Aeromexico stated,
“The months ahead will be focused on many time-consuming tasks, including rationalizing the Debtors’ aircraft fleet and workforce, claims analysis, and formulating the Debtor’s Chapter 11 plan.”
Plus, we nevertheless have to see how Aeromexico will rearrange its standing orders for 737 MAX and 787 Dreamliner units.
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