Aeroméxico Loses MX$4.1 Billion in 1Q21By MBN Staff | Wed, 04/21/2021 - 11:36
Aeroméxico reported a net loss of MX$4.1 billion (US$210 million) in 1Q21, 67.1 percent lower than in the same period last year. The airline reported a negative EBITDA of MX$398 million (US$20 million). Revenues remain far from pre-pandemic levels and dropped 51.3 percent in 1Q21 to MX$6.8 billion (US$344 million)
Back in July, the company filed for bankruptcy protection in the US under Chapter 11, which has allowed it to continue flying. “Our industry faces unprecedented challenges due to significant declines in demand for air transportation,” Andrés Conesa, CEO of Aeroméxico, said in a statement. "We are committed to taking the necessary measures so that we can operate effectively in this new landscape and be well prepared for a successful future when the COVID-19 pandemic is behind us.” Conesa added Aeroméxico aims to use the process "to strengthen our financial position, obtain new financing and increase our liquidity.”
In January, Aeroméxico negotiated new contracts with two pilot unions agreeing to pay cuts of US$350 million. Days earlier, the airline also announced that it had reached an agreement with the flight attendants' union (ASSA) without giving further details. “The objectives reached during the negotiations were necessary for the company to meet certain commitments and objectives required by the funders,” Aeroméxico said in a statement sent to the Mexican Stock Exchange (BMV).
As air travel rebounds in some countries, the industry has hopes of early recovery. However, the International Air Transport Authority has estimated that it could take more than three years for international travel to return to pre-crisis levels. A Deloitte study also revealed a decline in global passenger traffic of 66 percent in 2020. Although a rebound is expected by 2021, the firm estimates that figures will still remain 40 percent below pre-pandemic levels. “An effective vaccination process against COVID-19 will result in a short-term increase in passenger traffic, but the latter is not expected to return to pre-pandemic levels until 2024,” the firm said.