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Aeromexico plans further capacity expansion following profitable 3Q2011

Analysis

Aeromexico has recorded another strong quarter of profits and expects continuing favourable market conditions in Mexico despite the challenging global economic environment. As a result, Mexico's only remaining legacy airline is planning to increase capacity by another 12% to 13% in 2012, driven partially by the launch of several new routes within Mexico and to the US.

The expected expansion of Aeromexico's US network is made possible by its expanded partnership with Aeromexico, which will be formalised over the next few weeks and will result in Delta taking a 4% stake in its SkyTeam partner.

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