The fourth quarter of 2018 Avianca Holdings reached US $ 1,300 million in operating income, a figure that is 15.3% higher than that registered in the same period of 2017. This translates into annual revenues of US $ 4,900 million, 10.1% above the previous year.
Between October and December, the airline stood out for an operating profit of US $ 67 million, a margin (EBIT) of 5.2% and the number of passengers transported, reaching 7.9 million and growing 18.8% compared to the same period of 2017.
“This indicator not only allowed the airline to maintain a robust load factor of 81.9% in the quarter, but enabled it to close 2018 as the first year, since 2015, with a consistent Yield recovery reaching US $ 9, 5 cents for the quarter and a consolidated growth of 5.8% for the whole year.
In fact, during this quarter, Avianca increased its capacity measured in ASK’s (seats available per kilometer flown) by 22.4% through an operational fleet of 190 aircraft (including subsidiaries).
The cargo business unit also managed to increase its total revenues by 14.1% and maintain the leadership of this segment in Colombia with a 41% share. And its loyalty program increased gross revenue by 13.8% year-on-year and the membership base by 13.4%, reaching 8.9 million members.
Finally, it was noted that during 2018 the company regained operational stability after registering the fourth quarter without the effects of the illegal termination of activities in 2017 and closed the strategic and commercial alliance negotiations with United Airlines and Copa Airlines.
During the presentation of the results, the company announced a transformation plan that it described as “the most robust of the last decade” because through it seeks to migrate from a growth model to one of profitability and operational efficiency.
The holding explained that in order to achieve this, the operation’s indicators will improve, adjust the fleet plans, prioritize the investment plans and sell the non-strategic assets.
The CEO and CEO of the company, Hernan Rincon explained that the transformation plan is necessary to ensure the sustainability of Avianca Holdings in the long term. “With the implementation of this ambitious scheme, we will strengthen our financial position for the benefit of our clients and our shareholders,” he said.
He also announced that in order to launch these actions, they formed a team that will focus exclusively on this and will be led by Gerardo Grajales, as the new Chief Transformation Officer.
Avianca said that the decisions are made in the midst of a “challenging and competitive” macroeconomic environment, marked by the rise in fuel prices, the reduction in the demand of passengers from Argentina and Brazil and the rising cost of the dollar.
Likewise, changes were announced in the corporate governance of the holding creation of a new Executive Board Committee with three independent members and the presence of United Airlines as the observer of the Board of Directors, without the right to vote.