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Avianca Brazil expects first profit in 2013, relying on load factors and superior product

24-Apr-2013 2:01 PM

Avianca Brazil VP of sales and marketing TarcĂ­sio Gargioni said the carrier expects to record its first profit in 2013, and expects revenue to grow 30% over 2012. According to Agencia Estadao, Mr Gargioni said the carrier's superior performance to competitors in terms of lower losses in 2012 was due to higher load factors than competitors, with the carrier experiencing 79% load factors on average versus an 72% for Brazilian carriers overall in 2012. Mr Gargioni also noted the carrier's superior product offerings versus competitors are key to success, offering more legroom, more entertainment and free snacks. Mr Gargioni said, "Offering a beter product and charging the same price, most people opt for Avianca, which covers the higher costs [than competitors]." The carrier reportedly based its 2013 projections off estimated 2.5% GDP growth for the economy as a whole.