Aeromexico Reports $111m Loss From July To September

Grupo Aeromexico delivered an operating profit of US$16.3 million during 2021’s third quarter, the first quarter of profitability…

Aeromexico Reports $111m Loss From July To September

Grupo Aeromexico delivered an operating profit of US$16.3 million during 2021’s third quarter, the first quarter of profitability since the beginning of the pandemic. Despite that good number, overall, the Mexican carrier posted a net loss of US$111 million during the period. Let’s investigate further.

Aeromexico is recovering from the COVID-19 crisis. It has reduced its losses in 2021. Photo: Guillermo Quiroz Martínez via@gquimar.

Aeromexico’s 3Q results

The Mexican airline Aeromexico is currently in a Chapter 11 process in the United States due to the impact of the COVID-19 pandemic. Slowly but surely, Aeromexico has implemented a financial restructuring while continuing to operate commercial flights.

In the third quarter, Aeromexico’s revenue reached US$653 million, a 27.9% decrease with respect to 2019. Nevertheless, that revenue was also a 32.2% increase compared to 2021’s second quarter.

Aeromexico’s third-quarter capacity, measured in available seat kilometers, decreased only by 26.9% compared to the same period of 2019. The airline has been able to recover, although at a slower pace than its domestic competition, Volaris and Viva Aerobus.

Aeromexico carried 4.5 million passengers between July and September, a 13.8% decrease compared to its pre-pandemic levels. The airline stated,

“In spite of the current challenging environment, the market showed encouraging signs of recovery. During the third quarter, Aeromexico deployed 24.8% more capacity than during the second quarter with improvements in both domestic and international markets, which grew by 11.6% and 35.4% respectively.”

These numbers are consistent with Aeromexico’s current projections. The airline expects to bounce back to profitability in 2022.

Aeromexico Reports $111m Loss From July To September
Aeromexico is continuing to bet on the Boeing 737 MAX for its narrowbody fleet. Photo: Vincenzo Pace | Simple Flying

Aeromexico’s fleet grew

Despite being in Chapter 11, Aeromexico is being ambitious regarding its fleet plans. The Mexican carrier expects to have a fleet of up to 154 aircraft by 2025, with 133 narrowbodies and 21 widebodies.

During 2019’s third quarter, Aeromexico had a fleet of 127 aircraft, including six Boeing 737 MAX units that were parked. One year later, the fleet had been reduced to 106 aircraft following the impact of the COVID crisis. Aeromexico rejected the leasing contracts of its Embraer E170 fleet, as well as several Boeing 737-700 and 737-800.

We expected Aeromexico to continue reducing its fleet, but the airline has decided otherwise. Aeromexico has signed power by the hour agreements on its fleet and rearranged its order with Boeing. It also signed lease agreements with Dubai Aerospace Enterprise and Air Lease Corporation Group.

Aeromexico took delivery of two Boeing 737-800s and two B737 MAX 9s in 2021’s third quarter. Its current fleet comprises 122 aircraft, including 18 B787, 41 B737 NGs, 16 B737 MAX, and 47 Embraer E190.

Aeromexico Reports $111m Loss From July To September
During the quarter, Aeromexico received two Boeing 737 MAX 9 units. This is how the aircraft cabin looks like. Photo: Daniel Martinez Garbuno | Simple Flying.

Where’s Aeromexico flying right now?

In October 2021, Aeromexico is offering 14,058 flights, according to Cirium. That number is a 17.4% decrease compared to 2019 levels.

The airline still has to reactivate several routes, mainly from airports not in Mexico City. Aeromexico’s current main routes connect Mexico City with Cancun, Monterrey, and Guadalajara, the three main airports in the country after Mexico City.

Internationally, Aeromexico’s main route is between Mexico City and Los Angeles. It is offering 124 flights in October 2021, a 275.8% increase compared to 2019 levels. Mexico-Houston comes in second place with 94 flights, followed by Mexico-JFK and Mexico-Miami. Aeromexico’s most important route not in the United States or Mexico is to Guatemala, with 76 flights.

By December, Aeromexico expects to operate 15,398 flights, a 12.9% decrease compared to 2019 levels.

Are you surprised about Aeromexico’s third-quarter results? Let us know in the comments below.

Source : Simple Flying More   

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Faroe Islands Atlantic Airways Reveals 2022 Flight Schedule

Faroe Islands’ Atlantic Airways has revealed its flight schedule for 2022. The flag carrier plans to fly direct…

Faroe Islands Atlantic Airways Reveals 2022 Flight Schedule

Faroe Islands’ Atlantic Airways has revealed its flight schedule for 2022. The flag carrier plans to fly direct routes to 10 destinations across Europe, including three domestic services and three to Spain for next summer. Let’s find out more about the airline’s plans from Vagar.

Atlantic Airways operates a fleet of three all-Airbus narrowbody aircraft. Photo: Airbus

Back on the map

According to Aviation24, Faroe Islands’ Atlantic Airways has announced its plans for the following year. The carrier flies out of Vagar, the capital of the self-governing Danish territory, serving the island located between Iceland and Denmark. After a tough pandemic year, the airline is making a comeback next year.

Atlantic Airways plans to fly to 10 destinations across much of western Europe. This includes three domestic destinations of Copenhagen, Aalborg, and Billund on a frequent basis. Neighboring Iceland will see twice-weekly (thrice from Easter onwards) from Vagar to Keflavik. However, long-haul flights are still off the map.

Atlantic Airways A319-100
Atlantic uses its A319s and A320neos for European services and helicopters for internal flights. Photo: Curimedia via Wikimedia Commons

Further out, Atlantic will serve Edinburgh from 7th April to 22nd December on a twice-weekly basis to provide flights to the UK. Neighboring France will also see direct flights to Paris from May to October. The first route in this schedule will be flights from Vagar to Gran Canaria, which run from 2nd November 2021 to next February.

Summer calling

In anticipation of a busy summer next year, Atlantic Airways is planning flights to sunny Mallorca and Barcelona from 7th June to 27th September, the peak period. Both flights will run once weekly on Tuesdays and Wednesdays, respectively.

The carrier is also launching a brand-new route from Vagar to Oslo, flying every Wednesday through 2022, with an extra Sunday service from Easter to 16th October. With year-round traffic between the countries, Atlantic is hoping to see strong demand on the route and looking to challenge the new entrant.

Faroe Islands Atlantic Airways Reveals 2022 Flight Schedule
The airline is flying an impressive schedule given its three aircraft. Photo: Gordon Leggett / Wikimedia Commons

Overall, Atlantic is hoping that travel restrictions will be eased next year and travel will return to some normality. While this is impossible to predict during the pandemic, things are looking up for the industry in general, with 2021 showing a strong recovery.

Risks

However, it’s not all smooth riding for Atlantic Airways, and schedules don’t mean flights will actually operate. In July, Atlantic was forced to pull its new Edinburgh route just three weeks after launch due to rising COVID cases in the UK. With cases still high in parts of Europe, there is a serious risk of next summer being impacted by COVID once again.

For now, Denmark, and by extension the Faroe Islands, are now welcoming EU and vaccinated travelers back without any restrictions. If the situation remains the same over the next year as well, the airline could be looking at a major recovery. However, with the pandemic constantly throwing curveballs at the industry, nothing is certain, and schedules might be over-optimistic.

What do you think about Atlantic Airways’ plans for next year? Let us know in the comments!

Source : Simple Flying More   

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