Aeromexico handles tough conditions in 2014, positive momentum ahead in 2015

Mexico's largest airline Grupo Aeromexico is cautiously optimistic that signs of the start of a modest recovery in the country's economy in late CY2014 and rational capacity growth within the Mexican domestic market should continue to help the airline with a recovery of yields and unit revenues that began in 4Q2014.

Despite battling a weak domestic environment for most of CY2014, Aeromexico remained profitable for the year, growing top-line revenues and decreasing unit costs, albeit with lower margins and an overall tumble in net income.

Following a similar pattern from late CY2014, Aeromexico plans to deploy the bulk of its planned 8.5% to 10.5% capacity growth for CY2015 into international markets, which gives its some leverage in the depreciation of the MXP and a level of network diversification not available to its domestic rivals.