In its second quarter financial report, Avianca noted that operating expenses increased by 11.7% and capacity by 15.8%, although it admitted a worsening of its occupancy, punctuality, debt and position.
“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.
Avianca, listed on the New York Stock Exchange and whose parent company Abra recently bought Wamos Air, reported revenues of $1.177 billion, up 5.5% compared to the same period in 2023, of which $926 million came from passenger transport.
Likewise, it achieved earnings before interest, taxes, depreciation, amortization and rents (EBITDAR) of 221 million dollars, increasing 67.7% compared to the first quarter of 2023. The group transported 9.2 million passengers, increasing 19.9% compared to the previous year in the same period of 2023.
Avianca Cargo earned 150 million during the quarter, a year-on-year decrease of 6.7%, which it attributed to the overcapacity of this offer in Latin America.
Punctuality, which in the second quarter of 2023 had reached 87.5% of its Flights, plummeted by five points in the period from April to June, to 82.5%. Meanwhile, the rate of completed Flights went from 99.1% to 98.1% between both periods.
Occupancy also suffered a year-on-year decline between the same quarters of last year and 2024, falling from 81.3% to 80.8%, in a context in which its capacity between both periods rose by 15.3% but its average rate fell from $112.6 to $100.7.
Finally, net debt at the end of the second quarter of 2023 was $3.3 billion, while at the end of June this year it had risen to $3.955 billion, just as its net debt/EBITDA ratio grew from a multiple of 3.2 to another of 3.3.
As reported by REPORTUR.coGrupo Abra, parent company of Avianca and Gol, signed an agreement with Airbus in July to acquire five A350s, with which it hopes to offer better prices, greater connectivity between Latin America and Europe, as well as being more efficient in fuel consumption. (Parent company of Avianca and Gol agrees with Airbus to acquire five A350s).
