Aeromexico’s IPO Plans on Hold

By Kylie Madry

MEXICO CITY (Reuters) – Market conditions are currently not ideal for Mexican airline Aeromexico to list in New York, according to the firm’s CEO.

Aeromexico CEO Andres Conesa told journalists that the carrier would proceed with its initial public offering (IPO) “as soon as market conditions allow,” but did not elaborate further.

> “We aren’t in a rush,” Conesa stated, adding that the IPO would occur “whenever shareholders decide to sell.”

Aeromexico, a legacy airline in Mexico, had been a fixture on the country’s main stock exchange before being delisted during Chapter 11 bankruptcy proceedings, from which it emerged in 2022.

The airline now lists notable shareholders, including private equity firm Apollo Management, investment firm Silver Point Capital, and Delta Air Lines (NYSE:DAL), which has a joint venture with Aeromexico.

Last year, Aeromexico filed plans to list on the New York Stock Exchange under the ticker “AERO.” Shareholders were set to sell American Depositary Shares (ADSs) in the IPO, but the exact size and price range were not disclosed.

Reports indicated that Aeromexico investors were aiming for up to $500 million from the IPO, though uncertainties, such as Mexico’s presidential elections last year, impacted timing.

Codeshare Agreement with Delta Under Review

Aeromexico’s partnership with Delta, which includes a codeshare agreement enabling each airline to sell seats on flights operated by the other, has positioned them as the largest carriers for U.S.-Mexico routes, according to Conesa.

However, this agreement has come under scrutiny since the U.S. Department of Transportation (DOT) indicated that it would not renew the deal after Mexico altered certain flight operations in Mexico City. Conesa expressed confidence that the DOT would extend the partnership after conducting consultations and that Aeromexico has submitted evidence supporting its case.