Aeromexico turned a $242 million profit in the second quarter of 2024, a significant year-on-year improvement coming as the airline continues working toward an initial public offering on the New York Stock Exchange.
Based in Mexico City, Aeromexico has been a private firm since emerging in 2022 from bankruptcy restructuring overseen by a US court.
The company disclosed its second-quarter financial results in a preliminary prospectus filed on 20 August with the US Securities and Exchange Commission. The SEC requires firms to file prospectuses when offering securities for sale.
It is unclear when Aeromexico intends to file its final prospectus, and the company did not immediately respond to questions about its timeline. Aeromexico intends to sell its securities on the New York exchange under the symbol “AERO”, the filing says.
Delta Air Lines owns 20% of the carrier.
Aeromexico’s finances have been improving, with its $242 million second-quarter profit comparing to a $28.5 million profit in the same period last year.
Aeromexico generated $1.4 billion in revenue last quarter, up 21% year on year, and logged expenses of $1.1 billion, a 16% year-on-year bump.
In 2020, hammered by the Covid-19 downturn, Aeromexico filed for bankruptcy protection. Through that process, the airline modified its aircraft leasing agreements, “resulting in significantly lower costs over the life of the leases”, the filing says.
Aeromexico also retired older jets (replacing them with new Boeing 737 Max) and made other changes that returned $450 million of “structural savings” in 2023, compared to 2019.
The airline ended June with 145 aircraft in its fleet (of which 120 were leased), included 37 Embraer 190 regional jets, 34 737-800s, 34 737 Max 8s, 19 737 Max 9s and 21 787s.
Aeromexico’ s operation was disrupted earlier this year when it briefly grounded all 19 of its 737 Max 9s for inspections – a response to the 5 January mid-flight blow-out of an Alaska Airlines 737 Max 9’s mid-cabin door plug.
In April, Aeromexico reached a confidential deal with Boeing under which the manufacturer will compensate the airline financially for the groundings, the filing says.
Aeromexico ended June with cash and cash equivalents valued at $1.1 billion, up from $938 million at end-2023.