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AVIANCA HOLDINGS S.A. REPORTS NET INCOME OF USD$ 70.3 MILLION

Direct News Source

During the second quarter of 2013, Avianca Holdings S.A. (BVC: PFAVH) reported a consolidated operating revenue of USD$ 1.10 billion. This is an increase of 7.6% with respect to the same period of 2012.

Operating income came in at USD$ 35.3 million, an increase of USD$ 23.0 million over the same period of 2012. EBITDAR (earnings before interest, tax, depreciation, amortization and aircraft rentals) recorded was USD$ 144.1 million, a 30.8% increase over the same period of 2012.

Net income for the second quarter of 2013 rose to USD$ 70.3 million, an increase of more than USD$ 115 million over the profit recorded for the same period in 2012.

As a result of the growth and consolidation strategy of the Company´s main connecting hubs (Bogota, Lima and San Salvador), along with the increase in additional flights on existing high density routes, capacity measured in ASK (Available Seats per Kilometer) increased 8.7% while passenger traffic measured in RPK´s (Revenue Passenger Kilometers) climbed 9.3%, as a result the Load Factor increased 0.5 pp over the same period in 2012 reaching 78.2%

Operating cost per available seat kilometer (CASK) decreased 3.0%, from 11.60 cents in 2Q 2012 to 11.25 cents in 2Q 2013.The cost per available seat kilometer, excluding fuel costs (CASK ex Fuel), declined by 0.50% to 7.97 cents.

In accordance with the fleet renovation and modernization plan, between April and June 2013, the company through its subsidiary Avianca S.A, took delivery of two Airbus A320 aircraft equipped with sharklets. As a result, Avianca Holdings S.A. subsidiaries ended the quarter with a consolidated operating fleet of 151 aircraft.

With these second quarter results, Avianca Holdings S.A. reports a consolidated net income for the first half of 2013 of USD$ 147.5 million. During the first half of 2012 the company reported a negative effect on foreign exchange expenses related to the Colombian peso appreciation, while it recorded a positive effect in the first half of 2013 related to the currency depreciation. Excluding foreign exchange effects for both periods, net profit for the first half of 2013 increased by USD$ 34.7 million. This is equivalent to an increase of 123.8% over the same period in 2012