Aeromexico loses in one quarter the profits of an entire decade
In the second quarter of 2020, the first quarter since the arrival of the new coronavirus, Aeromexico lost the equivalent of the profits obtained during the last decade.
In three months Aeromexico lost what it earned in 10 years, but it is better off than it was 10 or 15 years ago, because everything that was earned was reinvested in the company. Apollo, the investor that will invest one billion dollars to restructure the company, made the disbursement because it is confident in the airline's viability.
Last Wednesday, the airline reached wage reduction agreements with pilots and flight attendants, which will allow it to access the more than 600 million dollars pending to be injected by the investor into the 'Caballero Aguila' cash flow. Seven collective bargaining agreements were negotiated with air and ground employees to reduce labor costs for four years and ensure the airline's operation for the next two years.
No airline has ever received a billion dollars, which shows the confidence in Aeromexico. With the labor agreements, Aeromexico has access to the credit (pending) of more than $600 million, which allows it to continue flying for the next two years. After this period, it is expected that the finances, as well as the airline industry, will recover to improve the airline's situation.