Adrian Neuhauser, CEO of Abra, during the presentation of Avianca’s second quarter financial results, said that in the coming quarters the airline would not grow in capacity as it had been doing.
From now on, this increase in their offer will be more moderate, since the jump they made from 600 daily Flights to 750 Flights was only to capture the market in Colombia, once their rivals Viva Air and Ultra Air went bankrupt.
He also said that Bogotá’s El Dorado Airport is over capacity and there is not much space left. That is why they consider it essential for their business to maintain capacity, just like all other competitors, and they expect growth of 18% for the fourth quarter, but for the first quarter of next year it will be single digits.
Neuhauser also believes that Avianca is the most competitive in terms of costs, or one of the most competitive, and compared to the ultra low cost airlines with which they compete, the price difference is quite wide in their favor.
He also said that, compared to Latam Airlines, he also considers that their costs are significantly lower, so he does not believe that either model is making money in the market.
Neuhauser, who recently pushed for the purchase of Wamos Air, added that this will be a radical change in capacity but will also apply to what is seasonally the weakest quarter in Colombia.
As reported by REPORTUR.coIn its second quarter financial report, Avianca noted that operating expenses increased by 11.7% and its capacity by 15.8%, although it admitted a worsening of its occupancy, punctuality, debt and cargo. (Avianca worsens its punctuality, occupancy, debt and cargo).
“This second quarter is challenging for the airline industry globally, due to the return of business seasonality and significant capacity growth in our markets. Despite the above, the company achieved solid results,” said Avianca President Frederico Pedreira in a statement.
