Avianca Posts Q2 Profits
A 'strong operational performance' has helped the Bogota-based Avianca Group report moderate profits for Q2 2022.
A 'strong operational performance' has helped the Bogota-based Avianca Group report moderate profits for Q2 2022.
DALLAS - South America's Avianca Group has reported an EBITDAR of US$271.3m for the second quarter of 2023, up from the projected US$88.7m, thanks to a 'Strong operational performance .'
The Bogota-based group, which consists of Avianca (AV), Avianca Cost Rica (LR), Avianca Ecuador (2K), Avianca El Salvador (TA), Avianca Guatemala (GU), Avianca Express (EX) and Avianca Cargo (QT), said that passenger revenues reached US$862.8m. This was an increase of 19.5% year-on-year, 'driven by robust market demand.' Total operating revenues stood at US$1,114.7M, a year-on-year increase of 8.9%.
In total, the group transported some 7.7 million passengers, up 17.7% since last year. Its capacity, measured in Available Seat Kilometres (ASK), grew to 13,270.8 million, a 22.1% increase since Q2 2022.
Meanwhile, operating expenses decreased by 11% from Q2 2022 to US$989m. The group said this was thanks to the 'continued success of the Company's cost optimization strategy.'
Its cargo subsidiary, which currently operates a fleet of Airbus A330 dedicated freighters, posted revenues which were 26.2% ahead of the Group's Business Plan projections despite being down on last year's numbers.
Adrian Neuhauser, Avianca's Chief Executive Officer, said, "We continued our strong execution on the Business Plan in a seasonally challenging quarter,"
"Avianca completed its narrowbody densification program in record time, which further optimized our cost efficiency, enabled increased capacity allocation, and continued to reduce our per passenger carbon footprint." The carrier now has a passenger fleet comprising 122 aircraft: 109 Airbus A320 family airliners, on which the densification program was carried out, plus 13 Boeing 787s.
"Our commitment to regional connectivity led us to launch eight new routes, to now offer 144 routes in 71 destinations, while strengthening Avianca's customer experience – Cirium recognized Avianca as the world's most punctual airline for both May and June," Neuhauser continued.
"I would like to thank our stakeholders for their collective power in driving our success. I'm proud of the tremendous job the Avianca team has done navigating our transformation and would like to recognize their continued commitment to delivering a safe, standard, and reliable service, which is resonating in our results."
https://airwaysmag.com/avianca-pulls-out-of-viva-air-deal/
Featured Image: Avianca N797AV Boeing 787-9 Dreamliner. Nick Sheeder/Airways
.webp)
David H. Stringer, the History Editor for AIRWAYS Magazine, has chronicled the story of the commercial aviation industry with his airline history articles that have appeared in AIRWAYS over two decades. Here, for the first time, is a compilation of those articles.
Subjects A through C are presented in this first of three volumes. Covering topics such as the airlines of Alaska at the time of statehood and Canada's regional airlines of the 1960s, the individual histories of such carriers as Allegheny, American, Braniff, and Continental are also included in Volume One. Get your copy today!
