Aeromexico’s Q3 2025 Revenue Falls, US IPO Powers Next Move

Aeromexico reported mixed third-quarter 2025 results, reflecting a slowdown in travel demand, but maintaining solid profitability through cost management and operational discipline.

Revenue totaled $1.4 billion, down 4.4 percent from roughly $1.46 billion in the same quarter of 2024, due to softer travel demand and a slight reduction in available seat miles (ASMs) of 0.7 percent year-over-year.

Net income was $97 million, a 54 percent decline from $211 million in the prior-year quarter, while operating income dropped 23.8 percent to $253 million, resulting in a still-healthy operating margin of 17.7 percent.

Earnings per share (EPS) also fell from $0.96 to $0.44, showing a contraction in EPS due to reduced profitability.

Despite the decline in top-line performance, Aeromexico demonstrated strong cost discipline, maintaining profitability through improved fuel efficiency, optimized crew utilization, and controlled overhead costs amid ongoing market challenges.

In September 2025, the US Department of Transportation (US DOT) ordered the company and its partner, Delta Air Lines, to dissolve their joint venture by January 2026, citing reduced competition on US–Mexico routes.

The two airlines challenged the decision, and the US Court of Appeals has since temporarily blocked the order, allowing the alliance to continue pending further review.

Another highlight for the quarter was Aeromexico’s successful US IPO, completed on November 5, 2025, raising approximately $222.8 million. Proceeds are expected to support fleet renewal, technology investments, and expansion in key international markets.

Photo by José Pablo Domínguez on Unsplash