Amid Restructuring Aeromexico to Suspend Some Routes for 2019

Amid millions of dollars in losses, Aeromexico has announced that its withdrawing planes and suspending routes for 2019.

Aeromexico posted losses totaling 617 million pesos for the third quarter of 2018. During the same period last year, the airline posted profits of 344 million pesos, according to Expansion.mx

“Aeromexico has made the decision to restructure its fleet and network, demonstrating, as always, its approach to rational and disciplined growth. The company will withdraw three Embraer 170 and two Boeing 737-700 teams, and thanks to its fleet flexibility strategy, it can reduce it or expand it quickly, “the airline said in a statement.

The upcoming changes will include suspension of Aeromexico routes from Mexico City to Boston, Washington Dulles and Portland.

Routes from Monterrey to Las Vegas, Tijuana, Merida and Veracruz, as well as from Guadalajara to Cancun and San Jose, California, will also be suspended, Expansion.mx reported.

These changes imply that Aeromexico’s seat offering will remain flat in 2019 compared to 2018, marking the first time since 2009 that the airline will not grow.

The airline said it will continue to invest in its customer-focused strategy and guarantee a world-class experience through innovative service, products and technology initiatives.

Aeromexico described this year as one of the most challenging the national aviation industry has had in the last decade.

Altogether, it said, the sector lost 1.6 billion pesos at the operating profit level during the first six months of the year, according to the Aeromexico statement.

“Furthermore, with fuel prices at more than 85 dollars per barrel and overcapacity, the operating environment remains complicated,” the airline statement continued.

Aeromexico operates amid what Expansion.mx described as a perfect storm, which includes competition in the Mexican airline industry to offer the lowest fare and the increase in fuel costs.

“By owning these aircraft, we are suspending these routes and we are not operating these aircraft, but we have the flexibility to sell them or maintain growth,” Aeromexico’s CEO Andrés Conesa said during a conference with analysts.

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