Grupo Aeroméxico, S.A.B. de C.V. Q1 FY2026 earnings call

• Resilience of business model despite external headwinds like demand disruptions and fuel price surge. - Recognized as most on-time airline and top employer. - Unit revenues up 15% YOY, operating margin 11% within guidance. - Strong liquidity with over $1.2 billion. - Fuel accounted for 21% of 2025 revenues, lower than peers. - Actively managing capacity and fuel recapture initiatives. - International markets account for ~70% of revenues, demand strong. - Second quarter expected to be weakest of year, expect to recover ~50% of incremental fuel costs in Q2, 70% in Q3, 100% in Q4. - Low to mid double digit revenue growth expected in Q2, operating margin 4%-7%. - Commercial performance: Revenue above guidance, international and domestic strong, loyalty program momentum with 38% participation, direct online share at record 48%, premium revenue mix at 42%. - Cost discipline measures in place to protect margins.

Total revenue in the first quarter reached $1.3 billion, marking a 13% increase from the previous year. Unit revenues increased by 15% year-over-year. Fuel accounted for approximately 21% of total revenues in 2025. International revenue increased 13.6% year over year, led by long-haul markets in Europe, Asia, and South America. Domestic market revenue grew 12.7% year-over-year. Adjusted EBITDA for the first quarter reached $336 million with a 25% margin. First quarter operating income totaled $142 million with a margin of 11%. Liquidity exceeded $1.2 billion at the end of the first quarter.

• Second quarter: Capacity projected to increase ~1.5 - 2.5% YOY, total revenue estimated to increase 12.5 - 15.5% YOY, adjusted EBITDA margin 17 - 20%, operating margin 4 - 7%. - Full year outlook not revised yet, will provide updated guidance as conditions stabilize. - Second quarter expected to reflect peak pressure from elevated fuel prices, benefits of mitigation actions not fully realized yet, expecting gradual normalization of margins in second half.

• Volatility in fuel prices which can impact costs and margins. - Geopolitical uncertainties in the Middle East which could affect demand and operations. - Potential disruptions in fuel availability in some international markets like Europe and Asia.

Q: More information on recapturability, plans for offsetting jet fuel increase, behavior of domestic and international markets.

A: 70% of revenue from international market, good recapture in international, especially long-haul, some capacity reductions in domestic, demand holding up in international including U.S.

Q: Amount of 2Q sold before fuel spike, types of markets easiest to cut, slot waivers in Mexico City.

A: About 40% of quarter booked before fuel recapture initiatives, easiest markets to cut outside Mexico City, top priority is keeping slot portfolio in Mexico City, have reduced some non-contributing flights.

Q: Supply plan for the year, thoughts on capacity plan, proposal to cap domestic fares.

A: Full year capacity plan closer to 2 - 3%, growth in wide-body network, especially Barcelona, no threat from fare capping proposal.

Q: Fuel availability, impact on long-haul plans, fleet plan adjustment.

A: Sourcing domestic fuel locally, working with Delta for international fuel, no short-term shortages, fleet plan has some deliveries, planning to re-deliver one NG, end year with around 170 aircraft.

Q: Jet fuel price assumption for guidance.

A: Around $4 per gallon midpoint.

Q: Free cash flow in second quarter.

A: Anticipate two forces canceling out, no material variation in cash balances at end of second quarter, third and fourth quarters expected to have normal seasonality in cash flow generation