Aeromexico cites USD200 million in synergies with Delta as it works to shore up margins

Although the joint venture between Aeromexico and Delta remains in its infancy, Aeromexico has declared synergy targets from the immunised partnership of USD200 million on a steady-state, annual basis by 2021. Delta has invested roughly USD800 million in Aeromexico, and their relationship is a key pillar of Aeromexico's global network strategy going forward.

As Mexico's only full service, global airline, Aeromexico is positioning Mexico City as a prime gateway to the US west coast, as well as providing Delta with a hub south of the US state of Texas. On a more global scale, Aeromexico has determined that Mexico City is an ideal transit point from Central and South America to Asia.

Aeromexico has undertaken significant change during the last decade, including strengthening its balance sheet and overhauling its fleet to produce an operating profit for every quarter during the past seven years.

Now, the airline is turning its attention to delivering double digit operating margins. Its partnership with Delta is key to Aeromexico attaining double digit operating margins.