In the midst of the financial restructuring process under Chapter 11 bankruptcy, Aeroméxico presented its financial report to the Mexican Stock Exchange (BMV), corresponding to the second quarter of fiscal year 2020, which reflects the greatest negative impact that the airline, after the pandemic caused by COVID-19 (coronavirus)
Aeroméxico faces more difficulties than the other two bankrupt Latin American air giants since Latam and Avianca have carried out the same procedure of having to return planes but with the difference that they have been responsible for the return and transfer of the planes, something to what the Mexican is making objections in conflict with her landlords.
Aeroméxico claims to have achieved, with the authorization of the Court and the consent of the lessors, the early return of 19 aircraft, including 10 Boeing 737 and 9 Embraer 170-LR, as well as 4 GE CF34-8E5 engines, although it does not mention its intention that the transfer is paid for by lessors such as GECAS or Falko.
In June 2020, Aeroméxico transported 243 thousand passengers, which represented an increase of 80.7% compared to May 2020. During the second quarter reported, Aeroméxico served more than 529 thousand passengers. Another indicator of recovery is the airline’s load factor, which, while it was 47.9% in April, was 64% in June.
Aeroméxico recognized a single accounting adjustment in the second quarter for 20 billion pesos. As of June 30, 2020, the cash balance, including restricted cash, was $ 5,752 million pesos, approximately $ 250 million dollars, which represented an index of 11.0% on its operating income in the last 12 months. Excluding restricted cash, the cash stood at $ 3,720 million pesos, equivalent to $ 160 million dollars.
The recovery trend shown at the end of the reported quarter continued in July, where the company doubled operations in the domestic market and quadrupled the total number of international flights compared to June. Likewise, it hopes to conclude this month having exceeded 6 thousand flights. Similarly, for next August Aeroméxico plans to reincorporate more routes and frequencies to its network.
From March to date, Aeroméxico has carried out 212 cargo charter operations to 16 countries including Mexico, moving more than 3,200 tons of essential cargo. This figure includes the support provided to the Government of Mexico to transport medical supplies to our country to attend the health emergency.
Despite this process and the complexity of the situation, Aeroméxico continues to operate normally with the highest standards of safety and hygiene in the Mexican airline industry.
As we advance in REPORTUR.mx, Aeroméxico reported that as part of its financial restructuring pursuant to Chapter 11 of the legislation of the United States of America, on July 3, it requested the Court to authorize the early termination of lease contracts that involve the return of 19 aircraft to its lessors. the 124 that the group has, by adding 68 under the Aeroméxico brand and 56 by Connect. (Aeroméxico will have to return 19 planes to its lessors)