Grupo Aeromexico, S.A.B. de C.V. (NYSE: AERO)

Grupo Aeroméxico, S. A. B. de C. V. is a public air carrier that provides scheduled passenger and cargo transportation services within Mexico and to international destinations. The company operates a hub‑and‑spoke network centered at Mexico City International Airport (MEX) and offers a full‑service carrier product that includes three cabin classes, ancillary services such as seat upgrades and baggage fees, a loyalty program, and ground handling and training subsidiaries. Its business model combines a premium service offering with a young, fuel‑efficient fleet and strategic alliances to serve both business and leisure travelers.

The company generates revenue primarily from passenger ticket sales, which accounted for 80.3% of total revenue in 2025, and ancillary revenues such as seat upgrades, excess baggage fees and onboard sales, contributing 10.4% of revenue. Cargo transportation services represented 5.8% of total revenue, while other non‑ticket activities, including the loyalty program, training and vacation packages, made up the remaining 3.5%. Combined, passenger related revenue (tickets plus ancillaries) represented 90.7% of total revenue, with the balance coming from cargo and diversified services.

The company operates through the following segments:

• Passenger: This segment provides scheduled domestic and international flights under the Aeroméxico and Aeroméxico Connect brands, including ancillary services such as seat upgrades, preferred seating and excess baggage fees.

• Cargo: Managed by Aeroméxico Cargo, this segment transports freight using the belly capacity of passenger aircraft and dedicated cargo services to domestic and international customers.

• Loyalty Program: Operated through PLM, the Aeroméxico Rewards program enables members to earn and redeem points for flights, hotels, car rentals and retail purchases, generating high‑margin co‑branded revenue.

• Ground Handling: Provided by Estrategias Especializadas en Negocios, this segment delivers baggage and cargo handling, aircraft weighing, pushback and cleaning services at Mexican airports.

• Training: Delivered by AM Formación, this segment offers technical and crew training services for aviation personnel.

Grupo Aeroméxico holds a leading position in the Mexican aviation market as the largest carrier by fleet size and passenger traffic, operating the primary hub at MEX which accounted for 35.9% of total passengers flying within, to and from Mexico in 2025. It is the only full‑service carrier based in Mexico and a founding member of the SkyTeam alliance, giving it access to a global network of 18 international airlines. Its long‑standing partnership with Delta Air Lines provides joint scheduling, pricing and loyalty‑program benefits on cross‑border routes, while a young fleet with an average age of 8.6 years and industry‑leading on‑time performance enhance its competitive advantage over both domestic ultra‑low‑cost carriers and international legacy carriers.

The company serves a diverse customer base that includes business travelers seeking premium connectivity, leisure tourists visiting destinations such as Cancún and Puerto Vallarta, corporate clients utilizing its cargo and loyalty‑program services, and individual passengers booking through travel agencies, online channels or directly via its website and call center.