Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR (AERO)
NYSE:AERO
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Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR
(NYSE:AERO)
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Rating:60Neutral
Price Target:
$15.50
▲(17.96% Upside)
Action:ReiteratedDate:04/24/26
The score is driven by improved profitability and constructive 2026 guidance, supported by a low P/E valuation. These positives are tempered by significant balance-sheet risk (negative equity and meaningful debt) and a weaker medium-term technical trend with the stock below key moving averages.
Positive Factors
Sustained profitability and record margins
Aeroméxico has shifted from loss-making to durable profitability with record adjusted EBITDAR and historic quarterly margins. Persistent high margins provide recurring operating cash, strengthen resilience to demand swings, and support reinvestment in fleet and services over the medium term.
Negative Factors
Negative stockholders' equity and sizable debt
Negative equity and large absolute debt create a structurally high leverage profile that limits financial flexibility. This raises refinancing, covenant and creditor-concentration risks, constraining strategic options and increasing sensitivity to adverse revenue or cash-flow shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained profitability and record margins
Aeroméxico has shifted from loss-making to durable profitability with record adjusted EBITDAR and historic quarterly margins. Persistent high margins provide recurring operating cash, strengthen resilience to demand swings, and support reinvestment in fleet and services over the medium term.
Read all positive factors
Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR (AERO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend YieldN/A
Average Volume (3M)606.04K
Price to Earnings (P/E)43.4
Beta (1Y)2.13
Revenue Growth1.99%
EPS Growth-93.70%
CountryUS
Employees17,143
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.08
Shares Outstanding145,903,410
10 Day Avg. Volume406,841
30 Day Avg. Volume606,036
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)-5.06
Price to Sales (P/S)0.56
P/FCF Ratio5.08
Enterprise Value/Market Cap2.36
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda3.15
Forecast
1Y Price Target
$28.03Price Target Upside113.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.17
Revenue Forecast (FY)$5.83B
Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR Business Overview & Revenue Model
Company Description
Grupo Aeroméxico, S.A.B. de C.V., through its subsidiaries, provide public air carrier services for passengers and goods. It offers scheduled passenger air carrier services, cargo air carrier services, and other services. The company also offers l...
How the Company Makes Money
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Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong commercial execution, notable revenue and unit-revenue gains, record liquidity and improved leverage, and operational recognition are meaningful positives. However, material near-term headwinds from elevated fuel prices, currency appreciation, and temporary regional demand disruptions will compress margins in Q2 and introduce uncertainty for the rest of the year. Management has clear mitigation plans (fuel recapture, capacity discipline, cost controls) and a defined path to recover fuel costs over the year, but the near-term outlook remains vulnerable to fuel volatility.Positive Updates
Revenue Growth and Unit Revenue Strength
Total revenue of $1.34 billion (reported also as $1.3 billion) grew ~13% year-over-year; total unit revenue (PRASM) increased 15% YoY, reflecting strong pricing and demand resilience.
Negative Updates
Elevated Fuel Prices Driving Cost Pressure
Total operating expenses rose 16% YoY, with higher jet fuel cited as the primary driver. Management estimates an adverse effect of ~€36 million in Q1 from higher fuel and demand disruptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Unit Revenue Strength
Total revenue of $1.34 billion (reported also as $1.3 billion) grew ~13% year-over-year; total unit revenue (PRASM) increased 15% YoY, reflecting strong pricing and demand resilience.
Read all positive updates
Company Guidance
The company guided that second-quarter capacity should be up roughly 1.5%–2.5% year‑over‑year with total revenue growth of about 12.5%–15.5% and adjusted EBITDA margin of 17%–20% (operating margin 4%–7%), assuming jet fuel near $3.80–$4.20/gal (mid ≈ $4), and expects to recapture ≈50% of incremental fuel costs in Q2 (rising to ~70% in Q3 and ~100% in Q4); management noted recent capacity actions removed ~0.5 percentage points, bookings moved from ~40% mid‑March to ~60% today (average ATL ~35 days), and for the full year they see growth nearer 2%–3% versus prior 3%–5% guidance. By way of context, Q1 results that underpin the guidance included total revenue of ~$1.3–$1.34 billion (+13%/+13.3% YoY), PRASM +15% YoY, operating income $142M (11% margin), adjusted EBITDA €36M (25% margin, +5% YoY) despite operating expenses +16% YoY and a 14% stronger peso; liquidity exceeded $1.2B (≈23% of LTM revenue), net operating cash flow >$200M, adjusted net debt/EBITDA ~1.7x, fuel was ~21% of 2025 revenues, fuel burn per ASM improved 1.4% (~$5M savings), and fleet plans target ~170 aircraft by year‑end (two 787s and three 737 MAX deliveries, one NG redelivery planned).Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
28
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.54B | 5.38B | 5.60B | 4.96B | 3.83B | 2.24B |
| Gross Profit | 1.35B | 1.33B | 1.63B | 1.24B | 429.44M | -50.59M |
| EBITDA | 1.64B | 1.58B | 1.71B | 1.32B | 503.16M | 178.03M |
| Net Income | 342.27M | 352.99M | 614.89M | 275.63M | -64.50M | -925.66M |
Balance Sheet | ||||||
| Total Assets | 7.24B | 7.19B | 6.38B | 6.09B | 5.55B | 4.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 1.02B | 815.50M | 912.87M | 755.16M | 946.96M |
| Total Debt | 3.98B | 4.06B | 3.70B | 2.71B | 5.44B | 1.81B |
| Total Liabilities | 7.82B | 7.79B | 7.28B | 6.82B | 6.28B | 6.91B |
| Stockholders Equity | -583.05M | -592.01M | -901.96M | -734.93M | -732.80M | -2.66B |
Cash Flow | ||||||
| Free Cash Flow | 599.88M | 589.89M | 947.61M | 1.02B | -409.94M | -113.45M |
| Operating Cash Flow | 937.50M | 925.47M | 1.37B | 1.36B | -209.28M | 77.47M |
| Investing Cash Flow | -291.55M | -280.77M | -493.81M | -409.61M | -526.18M | -141.84M |
| Financing Cash Flow | -499.50M | -497.82M | -916.26M | -917.46M | 598.02M | 653.55M |
Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.83B | 10.91 | 135.39% | 3.50% | 11.93% | 54.06% | |
74 Outperform | $4.62B | 7.41 | 25.62% | 5.28% | 5.03% | 11.62% | |
72 Outperform | $43.54B | -37.50 | 23.14% | 0.96% | 5.24% | 20.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.18B | 43.35 | -50.88% | ― | 1.99% | -93.70% | |
50 Neutral | $7.48B | -4.65 | -5.17% | ― | 3.33% | -70.60% | |
45 Neutral | $826.15M | -9.81 | -20.74% | ― | -2.14% | -183.84% |
* Industrials Sector Average
AERO
Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR
14.96
-5.39
-26.49%
CPA
Copa Holdings
112.28
24.34
27.67%
DAL
Delta Air Lines
66.27
25.27
61.65%
AAL
American Airlines
11.31
1.28
12.76%
VLRS
Controladora Vuela Compania de Aviacion SAB de CV
7.10
3.51
97.77%
LTM
LATAM Airlines Group SA Sponsored ADR
46.91
16.00
51.76%
Grupo Aeromexico, S.A.B. de C.V. Unsponsored ADR Corporate Events
Aeroméxico Posts Strong Q1 2026 Revenue Growth and Solid Margins Despite Capacity Trim
Apr 23, 2026
On April 21, 2026, Aeroméxico reported unaudited results for the first quarter ended March 31, 2026, highlighting a 13.3% year-on-year increase in total revenue to $1.34 billion despite a 1.2% reduction in capacity. The airline delivered an 1...
Grupo Aeroméxico Leaders Boost Insider Stakes With March Share Purchases
Mar 17, 2026
On March 17, 2026, Grupo Aeroméxico reported that certain members of its board of directors and executive management, using their own funds and acting individually, purchased an aggregate of 1,032,120 common shares, equivalent to 103,212 Amer...
Grupo Aeroméxico Calls April 30, 2026 Annual Shareholders’ Meeting to Review 2025 Results and Governance
Mar 17, 2026
On March 13, 2026, Grupo Aeroméxico announced it has called its annual ordinary shareholders’ meeting for April 30, 2026, in Mexico City, where investors will review operating and financial results for the year ended December 31, 2025, ...
Grupo Aeroméxico Says Disruptions at Four Mexican Airports Not Material to Network
Feb 24, 2026
On February 23, 2026, Grupo Aeroméxico reported that it was restoring operations at Guadalajara, Puerto Vallarta, Tepic and Manzanillo airports after recent events disrupted service. As of the announcement, flights were progressively normaliz...
Grupo Aeroméxico posts record 2025 margins and sets bullish 2026 outlook
Feb 17, 2026
Grupo Aeroméxico reported unaudited results on February 16, 2026, showing fourth-quarter 2025 revenue of $1.4 billion and full-year 2025 revenue of $5.4 billion, with premium revenue contributing 42% for both periods. The airline delivered re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.