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After a complex panorama that the airline experienced during the 2019, Avianca presents its operating and financial results within the restructuring plan.
It was a turbulent year for the airline, but after closing the 2019 where the restructuring began with the plan Avianca 2021 and they denied themselves bankruptcy rumors, The work carried out by its administrators has begun to give results.
Avianca results 2019
Main achievements:
- Successful closing of bond exchange: In November they successfully closed the Avianca bond exchange offer with a robust participation of more than 88,1%, extending the expiration until May 2023.
- USD Financing 375 millions: USD financing achieved 250 million from United Airlines and Kingsland Holdings, as well as USD 125 millions of other investors.
- Fleet trading agreements: Agreements were closed with aircraft manufacturers, managing to reduce the commitments of 108 a 88 planes.
Consolidated results 2019:
- The airline transported 30.5 million passengers in the 2019 which means that it maintained the number of passengers carried year over year even with fleet and network adjustments. The load factor total was in 81,5%
- The adjusted cost per available seat per kilometer flown (CASK-ex fuel), contracted in 4,0% so the adjusted unit cost, excluding fuel, for unique events came to 6 Cents, in line with all the initiatives developed by the company.
- The Adjusted Operating Profit for the year stood at USD181 million, reaching a margin (EBIT) adjusted from 4,0%.
- The Total adjusted operating income contracted 5,1%, which is explained by the reduction in deployed capacity and the contraction of the average rate, which occurred due to a slow macroeconomic environment in the region, added to the weakness of local currencies throughout the year.
- The operational expenses they went down 1,9%, due to the application of profitability strategies and process simplification.
- The capacity, measure in ASK increased a 1,8% in this year.
Notable achievements:
- Elimination of “going concern risk” rating: The business strategy allowed USD 2.600 millions of debt were reclassified from short to long term, Therefore, the KPMG auditor eliminated this qualification.
- Fleet simplification and sale: The sale of 10 Airbus A318 and four A320 for USD net cash 100 millions, as well as 10 Embraer E190 aircraft sold in January 2020.
- Network redesign: The year closed with the operation of more than 130 routes in 75 destinations and 26 countries, and significant progress was made in the design of a new mesh with the aim of strengthening connectivity and focusing on the best performing routes..
- Branded fares: The launch of the tariff model was carried outFly to suit you' in the domestic markets of Ecuador and Colombia, which provides a personalized offer for each type of traveler. This model has already been implemented on flights to and from Europe and will continue to expand in international markets during 2020.
- Improve operational indicators: The percentage of compliance with itineraries was located at 98,7% and in baggage handling it was possible to reduce the percentage of irregularities, which led to improved customer satisfaction 6 points, thanks to the implementation of passenger-focused plans. In punctuality, the year closed with an improvement of five additional percentage points compared to the previous year.
- APEX Award 2020: Avianca was awarded the APEX award 2020 as the “Best airline in South America and one of the only airlines with 5 stars in the world.
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