Avianca Holdings S.A. Reports Operating Income of $132.2 Million, a 32.2% Improvement
15-Nov-2013 During the third quarter of 2013 Avianca Holdings S.A. (NYSE: AVH) reported a consolidated adjusted net income of USD$99.1 million excluding FX effects related to liabilities denominated in Colombian Pesos and on the gain on sale of assets. This represents an increase of 151.3% over the same period in 2012. Avianca´s adjusted net profit margin increased by 450 basis points reaching 8.5%. Including the aforementioned effects on net income, Avianca Holdings S.A. and its subsidiaries generated a net income of USD$39,9 million.
Operating revenue came in at USD$1.182 million, representing an increase of 9.6% over the same period of 2012. Said increase is the result of a rise of 9.4% in passenger income resulting from a growth of 3.5% in carried passengers. Cargo and other revenues grew by 10.9%. This increase is mainly driven by the cargo and loyalty program business unit.
Revenue per Seat Kilometer (RASK) grew 3.6% whereas the Cost per Available Seat Kilometer (CASK) in 3Q 2013, grew from USD$10.3 cents to USD$10.4 cents, an increase of 1,5% with respect to the same period in 2013.
EBITDAR (earnings before interest, tax, depreciation, amortization and aircraft rentals) increased 23.1% with respect to 3Q 2012. The EBITDAR margin reached 20.1%.
Operating income (EBIT) for 3Q 2013 rose to USD$132.2 million, a 32.2% increase with respect to the USD$100.0 million reached in the same period in 2012. The operating margin in 3Q 2013 came in at 11.2%, increasing by 1.9pp with respect to 3Q 2012. Said rise was generated by an increase in operating revenue as well as by cost control measures.
Capacity, measured in ASKs (Available Seats per Kilometer) grew by 5.87% throughout 3Q 2013. This growth is driven by the expansion of Avianca's operations in its core markets, the incorporation of larger aircraft as well as an improvement in operating cycles of 1.1%. Traffic measured in RPKs (Revenue Passenger Kilometer) grew 5.9%, resulting in a Load Factor of 82.0% representing an increase of 20 basis points with respect to the Load Factor of 3Q 2012.
In accordance with the fleet renovation and modernization plan, between July and September 2013, the company through its subsidiary Avianca S.A., took delivery of one Airbus A320 aircraft equipped with sharklets, one ATR 72-600 and one A330 Cargo. As a result, Avianca Holdings S.A. subsidiaries ended the quarter with a consolidated operating fleet of 154 aircraft.
With these third quarter results, Avianca Holdings S.A. reports a consolidated net income for the last 9 months of USD$183.4 million, reaching accumulated net margin of 5.4% year to date.
These numbers are expressed in USD as the functional currency under International Financial Reporting Standards
The terms "Avianca Holdings" or "the Company" refer to the consolidated entity.