The global airline industry, including Grupo Aeromexico, uses a unique set of terms and vocabulary. We share with you some of the most common acronyms and terms used in Grupo Aeromexico and the industry:
Adjusted Debt: Financial debt plus seven times the aircraft rent expense.
Adjusted EBITDAR: EBITDAR adjusted by non-cash and non-recurring items.
Adjusted Net debt: Adj. Debt minus cash and cash equivalents.
Available Seat Kilometers (ASKs): A measure of passenger capacity. It is calculated by multiplying the total number of seats (empty or full) available for passengers multiplied by the number of kilometers the seats are flown.
Block hours: Number of hours during which the aircraft is in revenue service, measured from the time it leaves the gate until the time it arrives to the gate at destination.
Cost per Available Seat Kilometer (CASK): The average cost of flying an aircraft seat (empty or full) one kilometer. Often referred to as a “unit cost” measurement, it is calculated as Total Operating Expenses/Total Available Seat Kilometers.
CASK ex fuel: Total operating expenses, excluding fuel expense, divided by ASKs.
Mexican General Directorate of Civil Aviation (DGAC): An agency of the Ministry of Communications and Transportation of Mexico; It is responsible for ensuring that the air transportation industry is part of a sustained and sustainable growth, contributes to social welfare, regional development and job creation, enabling a better integrated society and communicated in Mexico.
EBITDA: Earnings before interest, taxes, depreciation and amortization.
EBITDAR: Earnings before interest, taxes, depreciation, amortization and aircraft rent expense. It is a non-GAAP financial measure commonly used in the airline industry to view operating results before depreciation, amortization and impairment, and aircraft rent as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets.
International Financial Reporting Standards (IFRS): Set of international accounting standards indicating how certain types of transactions and other events should be reported in the financial statements.
Load factor: The percentage of a plane filled with paying passengers. RPKs divided by ASKs and expressed as a percentage.
TechOps Mexico (MRO): Maintenance, Repair and Overhaul station in the city of Queretaro, Mexico; it provides major maintenance services to Aeromexico’s and Delta Air Lines’ aircrafts, other Airlines will eventually . Base de mantenimiento y reparación de aeronaves en Querétaro, utilizada para proporcionar servicios de mantenimiento mayor para nuestras aeronaves, las aeronaves de Delta Air Lines y eventualmente otras aerolíneas. Construida y operada conjuntamente con Delta Air Lines; inició operaciones en enero de 2014.
Club Premier (PLM): Club Premier, is the coalition loyalty program that operates the Aeroméxico Frequent Flyer program with over 3.6 million members. It is owned by Premier Loyalty & Marketing, a company jointly owned by Grupo Aeroméxico (51%) and one of the largest loyalty program operators in the world, AIMIA (49%).
Passenger Revenue per Available Seat Kilometer (PRASK): Refers to average passenger revenue per ASK (baggage fee revenues, which are included in passenger revenues, are removed for the purposes of calculating RASK).
Revenue per Available Seat Kilometer (RASK): Refers to total Operating Revenue per ASK. Often referred to as a “unit revenue” measurement, it is calculated as Total Operating Revenues/Available Seat Kilometers.
Revenue passenger Kilometers (RPKs): Refers to a measure of passenger traffic calculated by multiplying the total number of revenue passengers carried by the kilometers they are carried. Often referred to as the airline industry’s measure of “traffic”.
VFR: Passengers who are visiting friends and relatives.
Yield: Refers to average passenger revenue per RPK (baggage fee revenues, which are included in passenger revenues, are removed for the purposes of calculating yield).