Aeromexico first quarter 2015 revenues reached $10.68 billion pesos; a 9.2% increase compared to the same period last year.
First quarter 2015 EBITDAR reached $2.42 billion pesos, a 66.8% year-on-year increase. First quarter EBITDAR Margin reached 22.6%; a 7.8 percentage point year-on-year increase.
First quarter 2015 operating income before other income and other non-operating expenses reached $526 million, which compares favorably with the $88 million pesos registered during the first quarter of 2014. First quarter operating margin reached 4.9%, a 4.0 percentage point year-on-year increase.
Aeromexico reported a $185 million pesos net profit for the first quarter of 2015, which compares favorably with the $90.3 million pesos net loss reported for the first quarter of 2014. During the first quarter of 2015, Grupo Aeromexico reported a positive foreign exchange impact of $216 million pesos due to exchange rate depreciation.
In the first quarter of 2015, capacity, measured in Available Seat Kilometers (ASKs), increased by 10.7%. International ASKs increased by 15.2%, primarily due to the incorporation of four additional Boeing 787-8 Dreamliners into its fleet as compared to the first quarter of 2014. Domestic capacity increased by 3.4%. International ASKs accounted for 64.7% of total Grupo Aeromexico ASKs, which represents a 2.5 percentage point increase compared to the first quarter of 2014.
First quarter passenger revenues reached $9.43 billion pesos; a 9.6% increase, year-on-year. Grupo Aeromexico transported 4 million 391 thousand passengers; a 6.9% increase compared to the first quarter of 2014.
First quarter cargo revenue increased by 20.8% year-on-year to $649 million pesos, due to the incorporation of four additional B787 aircraft into the Aeromexico fleet compared to the first quarter of 2014.
First quarter 2015 operating expenses, including aircraft leases and depreciation and amortization, totalled $10.16 billion pesos; a 4.8% year-on-year increase. During the quarter, several U.S. dollar cost items were negatively affected by the depreciation of the Mexican peso. Nevertheless, continued cost discipline partially offset these effects.
First quarter consolidated unit cost (CASK) in Mexican pesos decreased 5.2% year-on-year, mainly due to the decrease in fuel prices and other efficiencies. CASK in US dollars decreased by 16.0% year-on-year. First quarter 2015 US dollar denominated CASK excluding fuel decreased 1.7% year-on-year and CASK excluding fuel in peso terms, increased by 11.0% year-on-year, reflecting the negative impact of exchange rate depreciation.
First quarter fuel expenses reached $2.50 billion pesos; a 27.7% year-on-year decrease driven by the 33.0% decrease in peso-denominated fuel prices per litre, which was partially offset by a 10.7% increase in ASKs.
In order to mitigate the risk of fuel price increases, Grupo Aeromexico maintains a hedging policy with call type and call spread options equivalent to approximately 50% of the Company’s estimated fuel consumption for the subsequent 12 months. As of March 31, 2015, 50% of the Company’s estimated fuel consumption for the April 2015-March 2016 period had been covered through hedging instruments with Jet Fuel (JF54) as underlying asset and with coverage levels starting at US $2.13 per gallon, hedged up to US $2.65 per gallon.
First quarter maintenance expenses increased 29.6% year-on-year, primarily due to the negative impact of exchange rate depreciation and the growth in operations. Communications and traffic expenses increased by 9.1% year-on-year, due to the exchange rate depreciation impact and the 10.7% increase in ASKs.