Avianca by Avianca 3 scaled
In the first quarter of 2024, Avianca Airlines experienced remarkable growth, transporting 9.3 million passengers—a 37.5% increase compared to the same period in 2023. Despite the rise in passenger numbers, the airline saw a 4.5% decrease in the average fare per kilometer flown, attributed to its continuous efforts to maintain efficient operations and offer more accessible pricing to its customers. The results are here.
Financially, Avianca’s EBITDAR stood at $272 million, up from $233 million in the previous year, marking a healthy margin of 21.5%. The company maintained a robust liquidity position with 971 million dollars of free cash flow.
Frederico Pedreira, CEO of Avianca, expressed his satisfaction with the airline’s performance, stating, “We remain committed to transporting our customers to more destinations affordably.” He highlighted introducing a new, more simplified, and flexible fare scheme and launching new routes, including the resumption of flights from Bogotá to Paris after 20 years and a new route to Montreal. These expansions are part of Avianca’s strategy to enhance network connectivity and customer service, evidenced by an 85% on-time performance rate and a significant reduction in baggage handling incidents.
Cargo Challenges
The airline faced a significant downturn on the cargo front, with cargo revenue falling 8.3% to $152 million, mainly due to normalized demand post-COVID and the ongoing recovery of widebody capacity. Nevertheless, Avianca Cargo retained its market leadership in transporting flowers from Colombia to the U.S. after the Valentine’s season, highlighting its strong competitive position in the region.
The LifeMiles loyalty program contributed significantly to the group’s cash flow, generating $36 million, up 15.3% from the previous year. The program’s redemption dynamics shifted slightly, with more miles redeemed for flights on Avianca and partner airlines.
In December, Fitch rated Avianca “B” and “Stable.” If the mergers go through, then it can only help. Things are probably going to look ven better next year.
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