Avianca Holdings reports US$98.6 million fourth quarter 2019 operating profit

During the fourth quarter 2019, Avianca Holdings successfully concluded its financial reprofiling; deferring a total of approximately US$220 million aircraft operating lease and debt amortization payments and exchanging 88.1% of its US$550 million May 2020 bond.

In addition, Avianca drew US$250 million stakeholder financing from United Airlines and Kingsland Holdings as well as an additional US$125 from other market participants.

This is aligned with the “Avianca 2021” Strategic Plan which the company is currently implementing to improve operational efficiency, strengthen the Avianca’s financial position and liquidity, and improve results of its operations.

4Q 2019 operating revenues reached US$1.2 billion for the quarter; a 9.5% year-on-year decrease. Fourth-quarter 2019 total operating expenses decreased by 9.7% mainly driven by a 79.3% decrease in flight operations, a 21.8% decrease in passenger services as well as a year on year reduction of 10.3% in fuel expenses.

EBITDA for the 4Q 2019 was US$223.9 million, with a 19.2% EBITDA margin. Further, operating income (EBIT ) reached US$98.6 million with an 8.4% operating margin a 28-bps increase, while net income totaled – $0.4 million, compared to US$58.2 million in 4Q 2018. Net income margin for 4Q 2019 reached 0.0%.

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