Avianca Holdings

Avianca Holdings 2014 net profit falls 52% to $120.5 million

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The airline operates four Boeing 787-8.
The airline operates four Boeing 787-8.

BOGOTA, Colombia–Avianca Holdings posted a full-year net profit of $120.5 million in 2014, down 51.6% from a net profit of $248.8 million in 2013. The Panama City-registered carrier reported full-year operating revenues of $4.7 billion, up 2% year-over-year (YOY), as expenses came to $4.42 billion, up 4.6% YOY. The company’s full-year operating profit was $284.6 million, down 26.1% YOY from 2013’s $384.9 million operating income.Avianca’s cargo revenue performance was strong in 2014, totaling $834.2 million, up 11.6% YOY. During the year, Avianca acquired a stake in Mexican airfreight carrier AeroUnion and entered into a commercial agreement with Etihad, “creating a stronger cargo operation and more connectivity from Los Angeles via Mexico, while also improving cargo connectivity to Europe, from Milan and Amsterdam to Bogota,” Avianca said. Avianca’s passenger traffic grew 4.5% YOY to 32.6 billion RPKs on a 5.9% rise in capacity to 41.1 billion ASKs, finishing 2014 with a full-year load factor of 79.4%, down 1.1 points from 2013. The company carried 26.2 million passengers in 2014, up 6.6% YOY. CASK for the full-year decreased 1.5% YOY to 10.7 cents, partly attributable to the drop in fuel prices during the 2014 fourth quarter, Avianca said. Excluding special items, Avianca reported an adjusted net income of $129.1 million for the year. The company said its 2014 EBITDAR (earnings before interest, taxes, depreciation, amortization and rents) totaled $786.7 million, down 5% YOY; Avianca’s full-year EBITDAR margin was 16.7%, down 1.3 points from 2013. In 2014, Avianca took delivery of 32 new aircraft, including 14 Airbus A-320 family aircraft, 10 ATR 72-600 aircraft for regional flight deployments, four Boeing 787-8 Dreamliners, two A-330s and two A-330 freighters. All 10 of the company’s Fokker 50s were phased out and sold; the company’s entire ATR 42 fleet was retired as well. As of Dec. 31, 2014, the company’s consolidated operating fleet comprised 181 aircraft. Avianca Holdings, created in 2009, operates Latin American airlines Avianca (based in Colombia), TACA (based in El Salvador), Costa Rica’s LACSA, Guatemala’s Aviateca, Ecuador’s Aerogal, plus Avianca Brasil, TACA de Honduras and TACAPeru.

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Avianca 3Q net profit down 7.6%, passengers up 7.5%

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BOGOTA, Colombia–Panama City-registered Avianca Holdings reported third-quarter net profits of $33.2 million, down 7.6% from $35.9 million posted in the year-ago period. Operating revenues were $1.23 billion, up 3.9% year-over-year, as expenses rose 10.2% to $1.16 billion. Resulting operating income for the quarter came to $70.3 million, down 46.9% from $132.2 million in the September 2013 quarter. Avianca attributed the results to “redeployed capacity (ASKs) as well as the strong demand observed in the Colombian domestic market and … the entry into operation of the Bogota-London route.” Avianca’s third-quarter traffic grew 5.3% year-over-year to 8.7 billion RPKs on a 6.1% rise in capacity to 10.7 billion ASKs, creating a quarterly load factor of 81.3%, down 0.7 point from the 2013 third quarter. The company carried 6.9 million passengers during the quarter, up 7.5% from the 6.4 million passengers transported in the third quarter of 2013. Yield dropped 0.8% year-over-year to 11.9 cents. CASK excluding-fuel was up 5.8% year-over-year to 7.5 cents.nThird-quarter EBITDAR fell 14.8% year-over-year to $202.5 million. In the company’s quarterly results analysis, Avianca Holdings CEO Fabio Villegas Ramirez said, “Our cargo traffic expressed in RTKs grew 27% … resulting in an improvement of 600 basis points in load factor when compared to the third quarter of 2013,” Villegas said. “In addition, we have made further progress … with the completion of the acquisition of a stake of Aerounion in Mexico and the new commercial agreement with Etihad … which enables the company to improve its inbound cargo operation from Los Angeles via Mexico as well as enhancing connectivity to Europe.” On October 20th, Avianca Cargo and Etihad Cargo announced a commercial partnership agreement involving the deployment of freighter flights from Avianca’s Bogotá, Colombia, hub at El Dorado International Airport to Milan’s Malpensa Airport and Amsterdam’s Schiphol Airport. The twice-a-week service commenced operations November 12th. During the quarter, Avianca took delivery of 10 new aircraft: two Airbus A321s, two A320s and two A319s, plus four ATR-72s slotted to operate on the company’s domestic Colombian and Central American routes. Two ATR-42s were taken out of service. As of September 30th, Avianca’s fleet comprised 180 aircraft—165 of which are currently operational—including: 58 A320s (27 on operating lease); 36 A319s (17 on operating lease); 12 Embraer E-190s (two on operating lease); 11 ATR-72s; 11 A330s (10 on operating lease); 10 A318s (all on operating lease); 10 Cessna Grand Caravans; nine ATR-42s (five on operating lease); eight A-321s (six on operating lease); five A330 freighters; five Fokker 100s; three Boeing 767 freighters (one on operating lease) and two Fokker 50s.

Avianca 3Q net profits are down.
Avianca’s 3Q in 2014 net profits are down.