Fyano773
Topic Author
Posts: 536
Joined: Fri Mar 12, 2004 11:03 am

AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

Tue Oct 29, 2013 2:23 am

Despite Mexico economy slowed down in the quarter, the company succesfully increased revenues and net income vs last year same period. Net margin for the quarter was 4.7%:


Aeromexico Announces Third Quarter 2013 Results

MEXICO CITY, Oct. 24, 2013 /PRNewswire/ -- Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX), the largest global airline in Mexico, today reported its unaudited consolidated results for the third quarter 2013.


KEY FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER 2013

  • AM's 3Q net income reached $495 million pesos; a 17% increase year-on-year.

  • 3Q adjusted EBITDAR reached $2.17 billion pesos, with a 20.8% margin. The Company reported operating income of $834 million pesos with an 8.0% margin.

  • AM's revenues reached $10.4 billion pesos in the third quarter 2013; a 0.4% increase, year-on-year. Load factor was 80.3%, an increase from the 77.1% load factor reported in 2012.

  • 3Q CASK excluding fuel decreased one percent year-over-year, representing the third consecutive quarter that CASK has decreased compared to the year prior.

  • 3Q net cash resources derived from operating activities totaled $735 million pesos. During 3Q2013, resources for $598 million pesos were spent related to investments in fixed assets. Group's cash balance as at September 30, 2013 was $2.9 billion pesos.

    Source: http://www.prnewswire.com/news-relea...uarter-2013-results-229134301.html


  • AM added 5 new aircraft to its fleet in the quarter: 1 788, 2 738, 1 170 and 1 175; 1 762 was retired. AM therefore maintains an operating fleet of 116 airplanes. The average age of the Grupo Aeromexico’s fleet was 8.8 years.

    AM reached 90% On-Time Departure for the first nine months of 2013; an improvement of more than 11 percentage points compared with the same period in 2012.
     
    AM777LR
    Posts: 208
    Joined: Wed Sep 04, 2013 3:54 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 2:41 am

    Great news for AM! Any news on the ex-LAN 763 that was purchased by AM? Sad to se XA-EAP leave the fleet, ex MX bird and LOT bird.
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 4:29 am

    Anyone has seen the figures by geographic region?
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    AR385
    Posts: 6734
    Joined: Fri Nov 07, 2003 8:25 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 4:33 am

    Quoting EddieDude (Reply 2):
    Anyone has seen the figures by geographic region?

    You beat me to it. That´s what I was going to ask. I assume Asia was the leader. Great news for AM, anyway.
     
    User avatar
    TheRedBaron
    Posts: 3081
    Joined: Tue Mar 29, 2005 6:17 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 5:23 am

    A 767 was no retired, was broken and then retired...

    BTW, I wonder how is doing domestically when Interjet and Volaris are having fire-sales of tickets.

    TRB
    The best seat in a Plane is the Jumpseat.
     
    Fyano773
    Topic Author
    Posts: 536
    Joined: Fri Mar 12, 2004 11:03 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 9:19 am

    Quoting AR385 (Reply 3):
    Quoting EddieDude (Reply 2):Anyone has seen the figures by geographic region?

    You beat me to it. That´s what I was going to ask. I assume Asia was the leader. Great news for AM, anyway.

    Here the figures by region:


    3Q13 VS 3Q12         REVENUES    OP RESULT      REVENUES    OP RESULT

    MEXICO            $14,446,131      363,067    15,469,741      753,286
    AMERICAS           11,149,874    1,136,554    10,876,489    1,161,813
    EUROPE & ASIA       3,545,920      270,022     3,325,654      144,897
    ---------------------------------------------------------------------
    TOTALS (MXN)      $29,141,925    1,769,643    29,671,884    2,059,996


    As shown, all regions are profitable. With the arrival of the 787, these figures should improve (specially Europe and Asia). PS - These numbers are accumulated results (comprising the 9 months of the year)

    Quoting TheRedBaron (Reply 4):
    A 767 was no retired, was broken and then retired...

    3Q financial report refers to XA-EAP (as mentioned by fellow member AM777LR). The withdrawal of XA-TOJ (the one damage in MAD) was reported in 2Q.

    Quoting TheRedBaron (Reply 4):
    BTW, I wonder how is doing domestically when Interjet and Volaris are having fire-sales of tickets.

    Doing well. In fact, AM/5D increased domestic traffic last month, whereas 4O and Y4 lost market share.

    [Edited 2013-10-29 02:23:01]

    [Edited 2013-10-29 02:24:40]

    [Edited 2013-10-29 02:29:22]
     
    User avatar
    TheRedBaron
    Posts: 3081
    Joined: Tue Mar 29, 2005 6:17 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 3:16 pm

    Quoting Fyano773 (Reply 5):
    3Q financial report refers to XA-EAP (as mentioned by fellow member AM777LR). The withdrawal of XA-TOJ (the one damage in MAD) was reported in 2Q.

    Thanks I stand corrected !

    AM might have increased domestic traffic but they are not making a truckload of money, I wonder how the "other" doing.

    TRB
    The best seat in a Plane is the Jumpseat.
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 10:17 pm

    Quoting Fyano773 (Reply 5):
    Here the figures by region:

    Interesting that Asia and Europe are grouped together and the same for North America, Caribbean and Latin America. I wonder if any "sub-region" is not profitable and this is a nice way of presenting the results. In any case, I am glad that AM had a great quarter. Can someone remind me if the third quarter is usually the best for airlines? Or is it the fourth?
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    AR385
    Posts: 6734
    Joined: Fri Nov 07, 2003 8:25 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Oct 29, 2013 10:23 pm

    Quoting EddieDude (Reply 7):
    Interesting that Asia and Europe are grouped together and the same for North America, Caribbean and Latin America. I wonder if any "sub-region" is not profitable and this is a nice way of presenting the results.

    That must be it. I doubt they made money in Europe. But certainly they made in the Caribbean. Europe as said up-thread may turn around in the next quarter due to the 787, but I doubt it until then.
     
    Fyano773
    Topic Author
    Posts: 536
    Joined: Fri Mar 12, 2004 11:03 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Wed Oct 30, 2013 7:26 pm

    Quoting AM777LR (Reply 1):
    Any news on the ex-LAN 763 that was purchased by AM?

    It appears that plane entered in service last week or so.

    Quoting EddieDude (Reply 7):

    Interesting that Asia and Europe are grouped together and the same for North America, Caribbean and Latin America. I wonder if any "sub-region" is not profitable and this is a nice way of presenting the results.
    Quoting AR385 (Reply 8):
    That must be it. I doubt they made money in Europe. But certainly they made in the Caribbean. Europe as said up-thread may turn around in the next quarter due to the 787, but I doubt it until then.

    Both,

    You may want read the disaggregated results by region corresponding to last year same quarter (see Reply 1):

    AeroMexico Posts 3Q 2012 Profit - $32M Net (by Fyano773 Oct 24 2012 in Civil Aviation)

    You will notice that all separate regions were profitable.


    Taking into account that this quarter AM increased net profits by 17% vs last year same period, it is unlikely the airline had performed in the red in certain regions. Yes, London was not operated in that period, but with a healthy 89% LF in last Jul and 82% in Aug on the MEX-LHR flight, I believe Europe is profitable.

    [Edited 2013-10-30 12:40:30]
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Wed Oct 30, 2013 8:42 pm

    Quoting Fyano773 (Reply 9):
    London was not operated in that period, but with a healthy 89% LF in last Jul and 82% in Aug on the MEX-LHR flight, I believe Europe is profitable.

    By the look of it, LHR could/should be daily at some point. The 788s cannot get here fast enough to serve this route instead of the aging 763ERs.
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    Fyano773
    Topic Author
    Posts: 536
    Joined: Fri Mar 12, 2004 11:03 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Thu Nov 14, 2013 1:49 am

    Quoting EddieDude (Reply 10):
    By the look of it, LHR could/should be daily at some point. The 788s cannot get here fast enough to serve this route instead of the aging 763ERs.

    Airlineroute has just posted latest changes:



    Future Boeing 787 Routes:

    eff 01APR14 Mexico City – Buenos Aires 1 weekly (3 weekly from 05MAY14 to 26JUN14, 2 weekly from 27JUN14 to 20AUG14, 3 weekly from 21AUG14)

    $ eff 15APR14 Mexico City – Madrid 1-off service revised to 15APR14/22APR14/03MAY14 (MAD departs next day)

    $ eff 16APR14 Mexico City – London Heathrow 2 of 3 weekly (787 operates until 01MAY14, and resumes all 788 operation from 02JUL14)

    AM007 MEX2330 – 1615+1LHR 788 --3---7
    AM007 MEX2350 – 1655+1LHR 767 -----6-

    AM008 LHR2330 – 0550+1MEX 788 1--4---
    AM008 LHR2330 – 0625+1MEX 763 ------7



    BTW, AM registered a load factor of 86% in that route in Sep.

    [Edited 2013-11-13 17:57:52]
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Thu Nov 14, 2013 11:43 pm

    Well, that is very good news. Maybe London will be my summer 2014 destination...
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    LipeGIG
    Posts: 5048
    Joined: Tue May 03, 2005 7:33 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Fri Nov 15, 2013 1:20 pm

    Quoting Fyano773 (Reply 9):
    You may want read the disaggregated results by region corresponding to last year same quarter (see Reply 1):

    AeroMexico Posts 3Q 2012 Profit - $32M Net (by Fyano773 Oct 24 2012 in Civil Aviation)

    You will notice that all separate regions were profitable

    With Central and South America being so profitable, why AM do not consider a more aggressive expansion ?
    New York + Rio de Janeiro = One of the best combinations !
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Fri Nov 15, 2013 5:01 pm

    Quoting LipeGIG (Reply 13):
    With Central and South America being so profitable, why AM do not consider a more aggressive expansion ?

    At least GIG. I could see CCS getting 3 additional weekly flights.
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    AR385
    Posts: 6734
    Joined: Fri Nov 07, 2003 8:25 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Fri Nov 15, 2013 6:07 pm

    Quoting EddieDude (Reply 14):
    I could see CCS getting 3 additional weekly flights.

    From a market view point, it makes sense. However with the political situation down there, I´m not sure they may try it. Specially as relationships are now somewhat strained. GIG definitely should happen.

    They also have announce UIO, haven´t day?

    VVI should also be a good market. Lots of Bolivians come here, for business and education.
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Fri Nov 15, 2013 7:19 pm

    UIO will be launched nonstop from MEX less than daily with 73Ws very soon. I also wonder whether a second Colombian destination with 73Ws 4x weekly could be feasible. With respect to SCL, I dunno what the AM schedules and frequencies look like these days, but I have always thought AM needs to completely overhaul their SCL strategy and schedule... in due time SCL should also become a 788 route!

    In terms of South American destinations, I could see in a few years GIG, CCS and SCL being served with 788s, BOG and LIM with a combo of 788s and 738MAX, UIO being served with 737MAX, and GRU and EZE with 789s. Intra-Latin American traffic should continue to grow at a healthy pace.
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    Fyano773
    Topic Author
    Posts: 536
    Joined: Fri Mar 12, 2004 11:03 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Sat Nov 16, 2013 12:03 am

    Quoting LipeGIG (Reply 13):

    With Central and South America being so profitable, why AM do not consider a more aggressive expansion ?

    AM's approach in the past was profits oriented rather than growth/market share.

    Now, the company's strategy is focusing more on load factor (at the expense of yield), thus with this move one can expect a more rapid or at least more noticeable expansion in the mid-term.

    Quoting AR385 (Reply 15):
    GIG definitely should happen.

    In the following interview, AM's director for Southamerica summarizes operations in the region. Regarding GRU, a double daily is planned by 2015; he didn't mention GIG but I concur Rio should be started (soon):


    http://youtu.be/DeNodgDK-Y8

    Quoting EddieDude (Reply 16):
    In terms of South American destinations, I could see in a few years GIG, CCS and SCL being served with 788s, BOG and LIM with a combo of 788s and 738MAX, UIO being served with 737MAX, and GRU and EZE with 789s. Intra-Latin American traffic should continue to grow at a healthy pace.

    Widebody operations in markets such as LIM and BOG are a logical step. Actually, CCS is being operated with 767 daily as regular service:


    FLGHT FRM DEP  TO  ARRV ACFT DRTN 
    AM694 MEX 0045 CCS 0715 767  5h00m



    Once the 787 economics prove the business case, surely AM will order a dozen more to serve also medium-haul markets.

    BTW, I returned on AMX409 from JFK on the N964AM a couple of weeks ago and I can tell the 788 is a big improvement over the 767. The flight was packed and Clase Premier was sold out, so the airline can offer more seats with lower or at least similar operating costs.

    [Edited 2013-11-15 16:11:31]
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Sat Nov 16, 2013 12:10 am

    Quoting Fyano773 (Reply 17):
    Actually, CCS is being operated with 767 daily as regular service:

    That is correct. Is it daily or just a few days per week?

    Quoting Fyano773 (Reply 17):
    Regarding GRU, a double daily is planned by 2015; he didn't mention GIG but I concur Rio should be started (soon):

    Double daily is great? I wonder if AM introduce a daytime GRU-MEX return for the second daily flight they are programming (I did not watch the video; not sure if that is stated there).

    Quoting Fyano773 (Reply 17):
    Once the 787 economics prove the business case, surely AM will order a dozen more to serve also medium-haul markets.

    Well, perhaps not so fast. They have up to 19 on order both via purchases and leases: nine -8s and ten -9s. That is enough for now. Before a follow-on order, I would expect upsizing of -8 routes to -9 planes.

    Quoting Fyano773 (Reply 17):
    I returned on AMX409 from JFK on the N964AM a couple of weeks ago and I can tell the 788 is a big improvement over the 767. The flight was packed and Clase Premier was sold out, so the airline can offer more seats with lower or at least similar operating costs.

    I'd better book fast. I am going to JFK with my sweetheart next month and I definitely want to fly the Dreamliner!
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    LatinPlane
    Posts: 2471
    Joined: Mon Dec 27, 1999 11:05 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Sat Nov 16, 2013 2:36 am

    Quoting Fyano773 (Reply 17):
    Widebody operations in markets such as LIM and BOG are a logical step. Actually, CCS is being operated with 767 daily as regular service:


    FLGHT FRM DEP TO ARRV ACFT DRTN
    AM694 MEX 0045 CCS 0715 767 5h00m


    While AM's CCS flight reports a 95% load factor it faces extreme challenges operating there because CADIVI--the government agency in charge of exchanging the local exchange into USD--owes the airline a total 12 months in back payments for ticket sales. This translates to $50.2 (USD) million currently stuck in Venezuela.

    Amount owed by CADIVI to International airlines up to October:



    The president of Copa spoke about that situation in recent conference in Cancun.

    http://www.youtube.com/watch?v=Lu-77VhqPis&noredirect=1
    Pan Am - The World's Most Experienced Airline.
     
    AR385
    Posts: 6734
    Joined: Fri Nov 07, 2003 8:25 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Sat Nov 16, 2013 5:41 am

    So is AM crushing the competition on MEX/GRU. If they are going twice daily I wonder what is going on with TAM.
     
    EddieDude
    Posts: 6166
    Joined: Fri Nov 14, 2003 10:19 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Sat Nov 16, 2013 3:24 pm

    Quoting AR385 (Reply 20):
    If they are going twice daily I wonder what is going on with TAM.

    They are codeshare partners, no?

    Would someone in the know say the AM 77E J-class is equal to or better than JJ's A332 J-class? I am sure JJ has better catering though.
    Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
     
    Fyano773
    Topic Author
    Posts: 536
    Joined: Fri Mar 12, 2004 11:03 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Tue Nov 19, 2013 8:33 pm

    Quoting EddieDude (Reply 18):
    Quoting Fyano773 (Reply 17):Actually, CCS is being operated with 767 daily as regular service:

    That is correct. Is it daily or just a few days per week?

    Daily...

    Quoting LatinPlane (Reply 19):
    The president of Copa spoke about that situation in recent conference in Cancun.

    http://www.youtube.com/watch?v=Lu-77...ect=1

    Interesting video. Venezuela is struggling in many areas and the aviation industry is also affected as a result of debt, currency problems and foreign exchange due to questionable policies implemented by the government, including all the economic and political aspects.

    Quoting AR385 (Reply 20):
    So is AM crushing the competition on MEX/GRU. If they are going twice daily I wonder what is going on with TAM.

    Visa requirement for Brazilians was lifted, then traffic between both countries will tend to increase, therefore I see plenty of demand from both sides in the forseeable future either business or leisure.

    In fact, LATAM is planning a nonstop flight Brazil-CUN next year, hence the entire Mexico-Brazil operations will be managed in cooperation and not in competition as part of the codeshare JJ and AM signed not long ago.

    [Edited 2013-11-19 12:36:03]
     
    SJOtoLIR
    Posts: 2396
    Joined: Thu Jul 19, 2007 12:41 pm

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Wed Nov 20, 2013 1:32 am

    Quoting LipeGIG (Reply 13):
    With Central and South America being so profitable, why AM do not consider a more aggressive expansion ?

    It's a good point because AM is not having yet the same Latin American coverage compared to MX, which is no longer in service.




    .

    Quoting EddieDude (Reply 14):
    I could see CCS getting 3 additional weekly flights.

    The current traffic is most likely utilizing CM MEX-PTY and then CM PTY-CCS and back.
    Both routes are getting multiple frequencies every day.

    Regards.
    "Goin' up to the spirit in the sky"
     
    AM777LR
    Posts: 208
    Joined: Wed Sep 04, 2013 3:54 am

    RE: AeroMexico Posts 3Q 2013 Profit - $38.4 Mil Net

    Wed Nov 20, 2013 6:08 am

    MEX-GIG makes perfect sense. Maybe GRU/GIG-CUN too.