From Seekingalpha · CAN Analyst · · 40s
Aeromexico Revenue Growth Falls Short
Aeromexico's revenue growth fails to offset fuel costs, cutting Q4 profit outlook.
In brief
Aeromexico's revenue growth fails to offset fuel costs, cutting Q4 profit outlook. Aeromexico's Q4 EBITDA margin guidance was reduced to 19.5-21.5% due to rising fuel costs after Q3 revenue growth of 17.4%. Originally reported by Seekingalpha.
Q3 Revenue Growth
Aeromexico's Q3 revenue rose 17.4% but higher fuel costs consumed 88% of revenue gains.
Q4 Profit Guidance Cut
Management reduced Q4 EBITDA margin guidance from 28-31% to 19.5-21.5% due to rising fuel prices.
Profitability Concerns
Analyst remains cautious on Aeromexico as profitability recovery is uncertain and cash generation after investments remains unconvincing.
The big picture
Aeromexico's Q4 EBITDA margin guidance was reduced to 19.5-21.5% due to rising fuel costs after Q3 revenue growth of 17.4%.
