Grupo Aeromexico, S.A.B. de C.V (AERO) Stock Analysis

Grupo Aeromexico (AERO) is Mexico’s only full-service carrier and the region’s most consistent long-haul wide-body operator linking Mexico to Europe, Asia and South America. After emerging from Chapter 11 in March 2022, the company has transitioned back to public markets via a dual NYSE/BMV listing (Nov 2025) and now operates a ~165-aircraft fleet with ~500 daily flights from its core hub at Mexico City (AICM). Revenue is diversified across passenger, cargo and loyalty services, totaling ~$5.36B in FY2025. The passenger business is increasingly premium-led: products above basic/classic economy represent ~42% of passenger revenue, supporting higher yields and resilience versus domestic ULCCs. Aeromexico Cargo is benefiting from e-commerce and nearshoring (notably higher volumes), while Aeromexico Rewards—fully reacquired in 2022—has reached record penetration (~33% of passengers), enhancing retention and high-margin ancillary income. Operationally and commercially, the Delta Joint Cooperation Agreement (JCA) is pivotal for U.S.–Mexico connectivity and corporate share, but it is under DOT challenge; a court stay currently keeps it in place through at least late 2026. Financially, Aeromexico posted record Adjusted EBITDAR margins (~31.2%) in 2025, while net income fell on labor/currency/depreciation headwinds. Liquidity (~$1.1B) and net leverage (~1.8x) are manageable, positioning the airline to capitalize on 2026 FIFA World Cup-driven travel demand.