Grupo Aeromexico reported a net loss for 2018 of MXP1.9 billion ($98.6 million), reversed from a MXP18 million net income a year earlier.

Headwinds faced by the Mexico City-based carrier in 2018 included a 35.6% year-over-year (YOY) increase in fuel costs and a 4.8% annual inflation rate.

The airline’s full-year revenue rose 14.3% to MXP70.3 billion, compared to MXP61.5 billion in 2017, reflecting gains in passenger, ancillary and cargo revenue.

Expenses for the year were up 23.5% YOY to MXP57.7 billion, compared to MXP46.7 billion the previous year.

Aeromexico’s total capacity was up 8.2% YOY to 52.9 million ASKs. Passenger traffic increased 9% to 43.4 million RPKs, and the average annual load factor was up 0.6 points to 82.1%. Yield rose 4% to MXP1.388. Total RASK increased 5.8% to MXP1.327 and total CASK rose 8.1% to MXP1.321.

The group carried 21.9 million passengers in 2018, a 5.9 YOY increase.

Aeromexico reported a full-year operating profit of MXP9 million, compared to MXP3.1 billion in 2017, with a zero operating margin, down 5.1 points.

For the fourth quarter (4Q), the carrier posted a net loss of MXP651 million, compared to a net profit of MXP465 million in the year-ago period.

During the quarter, the group reported expenses of MXP308 million, primarily from the sale of three Embraer E170 and 12 E145 aircraft. The one-time, non-cash accounting adjustment reflected a difference in book value versus market value.

Total expenses for the quarter were up 21.2% YOY to MXP19.4 billion, compared to MXP16 billion in the year-ago period.

During the quarter, the company took delivery of two Boeing 787-9s, five 737 MAX 8s and one Embraer E190, resulting in a total fleet of 130 aircraft.

Jack Wittman,