Avianca reports Q2 results

Juliette O'Neill
By Juliette O'Neill August 23, 2016 17:10

Avianca reports Q2 results

Avianca has reported an operating income (EBIT) of $37.6 million for the second quarter of 2016, and an operating margin of 3.9%, a 341 basis point increase over the same quarter of last year. Operating revenues rose to $966.2 million for the quarter.

These results were mainly driven by a 12.1% reduction in total operating costs, driven by low fuel prices and benefitting from cost saving initiatives. The figures were partially offset by a 10.7% decrease in passenger revenues due to a yield dilution of 16.1%, partly compensated by growth in traffic numbers (RPKs).

Cost per available seat kilometer (CASK) decreased 18.1% to 8.02 cents in 2Q 2016, compared to 9.80 cents in 2Q 2015. CASK ex-fuel declined 12.3% to 6.37 cents.

EBITDAR for the 2Q 2016 was $178.4 million, while the EBITDAR margin reached 18.5%, a 528 bps increase when compared to 2015. Adjusted Net income, excluding special items totalled a loss of $4 million. As such, adjusted net income margin for 2Q 2016 reached -0.4%, a 192bps increase over the same period of 2015.

Capacity, measured in ASKs (available seat kilometers), increased 7.4% during 2Q 2016, mostly due to the annualized effect of the international capacity deployed to Europe during 2015. Moreover the company continued to see robust traffic numbers in Europe, South America and the Caribbean. Passenger traffic, measured in RPKs (revenue passenger kilometers), grew 6.5%, reaching a consolidated load factor of 78.1%.

Avianca took delivery of one A320 during the period of phased out three A319s and two E190s.

Juliette O'Neill
By Juliette O'Neill August 23, 2016 17:10