• DROP: Mexican air carrier Aeromexico reported Monday a 92.4% drop in total passenger traffic in May compared to the same month last year. The number is slightly larger that the 91.1% decrease reported in April as the coronavirus outbreak hit air travel around the world.
• PASSENGERS: While Mexico did not closed its air border and allowed domestic flights, Aeromexico only transported 135,00 domestic and international passengers in May 2020 compared to the 1.77 million in May 2019. Last year, Aeromexico was Mexico’s second largest airline measured by domestic passengers carried.
• LIABILITIES: “Aeromexico is more exposed to global lockdown measures which have a greater impact on its passenger traffic. But, in addition, the company required additional debt to compensate for its liquidity deficits”, analysts at Intercam Banco said last week in a research note.
• LOSSES: In April, the International Air Transport Association (IATA) estimated that Mexican airlines will lose US $6.4 billion in 2020. This would be a 45% decrease of revenue from 2019. So far, the Mexican government has not provided major relief for the airline industry.
