Aeromexico Reports 1Q17 Results

KEY FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER 2017

• Grupo Aeromexico's first quarter 2017 revenues reached $14.2 billion pesos, a 17.5% year on-year increase. During the quarter, Revenue per ASK (RASK) increased by 8.9% compared to the same period of 2016.

• First quarter 2017 financial results reflect the negative impact of a 64.4% increase in fuel prices and a 12.5% depreciation of the Mexican peso against the US dollar. CASK in pesos increased by 18.0%, year-on-year, while CASK in dollars increased 4.9%. CASK excluding fuel in pesos increased by 8.5%, year-on-year, while CASK excluding fuel in dollars decreased 3.6%, highlighting Grupo Aeromexico´s ongoing focus on optimizing unit costs.

• Grupo Aeromexico reported an operating profit of $533 million pesos with operating margin reaching 3.8%. This represents the 28th consecutive quarter of positive EBIT results.

• During the quarter, EBITDAR reached $3.6 billion pesos a 16.4% increase compared to the prior year. EBITDAR margin amounted to 25.3%, a 0.2 percentage point decrease compared to the same period of 2016.

• Aeromexico reported a net loss of $258 million pesos with a negative margin of 1.8% margin for the first quarter of 2017.

• These financial results include a non-recurrent (net of deferred taxes) $561 million peso benefit derived from a non-monetary transaction associated with an agreement to develop Aeromexico's new Corporate Headquarters in Mexico City.

• The total cash balance at the end of the quarter reached $9.1 billion pesos, equivalent to 16.2% of annual revenues.

• During the quarter, the Company added three aircraft to its fleet: one Boeing 787-9 and two Embraer-190s. At the end of the quarter, Grupo Aeromexico's operating fleet comprised 133 aircraft.

MANAGEMENT DISCUSSION AND ANALYSIS