Avianca Group Announces Fourth Quarter and Full Year 2023 Financial Results

 

• $332 million in EBITDAR and $46 million in Net Income for the quarter. For full year 2023, EBITDAR was $1,200 million and Net Income was $131 million.
• Robust balance sheet: $1,041 million in total cash.
• The Avianca Group achieved solid results despite inflation and exchange difficulties during 2023.

 

BOGOTA Colombia, March 22, 2024 – Avianca Group International Limited affiliated passenger airlines (“AGIL” or “the Group”) today reported its fourth quarter and full year 2023 results. The Company reported $332 million in EBITDAR during the fourth quarter, and $1,200 million in EBITDAR during 2023, at a 25.8% and 25.1% margin, respectively.

Solid passenger revenue performance during the quarter resulted in a $6.8 cent passenger revenue per available seat kilometer (PRASK); a 27.3% increase compared to the Business Plan, while full year PRASK was $6.9 cents, a 30.0% outperformance relative to the Business Plan. Passenger Cost per Available Seat Kilometer excluding fuel (Pax CASK ex-fuel) was $3.9 cents on a quarterly and annual basis, representing a 15.2% and 13.2% decrease relative to fourth quarter last year and full year 2022, respectively.

“2023 was a historic year for us,” said Avianca CEO Frederico Pedreira, “We reached the highest numbers of passengers transported in Avianca’s history given that flying with Avianca is more accessible today due to the company’s competitive prices, which have remained stable relative to prepandemic levels in spite of the challenging macroeconomic environment.”He added, "We are committed to ensuring that our customers reach their destination safely, on time and with their baggage. Our our promise to deliver punctual service is reflected in Avianca being the world’s most on-time global airline in 2023, according to Cirium. Finally, we are conscious about our responsibility to the environment and the communities where we operate. In 2023, we reduced our carbon emissions per passenger transported by 26%, relative to 2019; and our absolute carbon emissions by 21% in the same period. We achieved this while increasing the total passengers transported by approximately 5% relative to 2019. Furthermore, we partnered with 18 NGOs and social institutions to benefit over 14,000 people in vulnerable communities in Colombia, Ecuador and El Salvador.

 

Fourth Quarter and Full Year 2023 Highlights

 

• Operational excellence was maintained even when Avianca grew its capacity significantly in the fourth quarter.
• AGIL’s consolidated capacity, measured in Available Seat Kilometers (ASK), reached 14,881 million in the fourth quarter 2023, a 31.2% increase relative to the fourth quarter 2022. The Group transported 9 million passengers during the period, representing a 42.9% yearly increase. For full year 2023, AGIL deployed 54,706 million ASK; a 31.5% year-over-year increase and carried 31.9 million passengers; a 28.1% rise when compared to 2022.
• Fourth quarter 2023 total operating revenues reached $1,288 million; a 11.4% increase over the fourth quarter 2022, while fourth quarter 2023 total operating expenses were $1,113 million, only a 8.2% year-on-year increase over the fourth quarter 2022, in spite of the significant capacity increase of 31.2%, as a result of Avianca’s cost-conscious business model. Full year 2023 total operating revenues were $4,771 million, representing a 15.3% increase relative to 2022; while total operating expenses were $4,153 million; just a 2.8% increase compared to 2022 in spite of a 31.5% capacity increase.
• Fourth quarter 2023 EBITDAR was $332 million, at a 25.8% margin. Full year 2023 EBITDAR was $1,200 million, at a 25.1% margin.
• AGIL’s year-end cash balance reached $1,041 million.
• Passenger revenues during the fourth quarter 2023 reached $1,013 million, reflecting a 18.3% increase relative to the fourth quarter 2022. For full year 2023, passenger revenues were $3,760 million representing a 25.5% year-on-year increase, primarily driven by a strong market demand.
• Fourth quarter Cargo and Loyalty revenues were $236 million, and $943 million for full year 2023. Quarterly LifeMiles Cash EBITDA increased 42.7% relative to the fourth quarter 2022, and 23.2% on a year-on-year basis. Quarterly Cargo revenues decreased 20.4% relative to the fourth quarter 2022, and 20.6% on a year-on-year basis due to continued moderation in the cargo market. However, Cargo revenues were still ahead of Business Plan.
• Avianca’s continued commitment to further deleveraging its Balance Sheet resulted in a Net Debt to last-twelve-month EBITDAR reduction to 3.1x.
• Passenger Costs per Available Seat Kilometer excluding fuel (PAX CASK ex-fuel) during the fourth quarter 2023 was $3.9 cents, a 6.8% decrease relative to the fourth quarter 2022. Full year 2023 PAX CASK ex-fuel was $3.9 cents, a 16.0% decrease relative to 2022, in spite of inflationary and currency headwinds. Avianca’s focus on cost discipline has resulted in a strong cost position.
• AGIL ended 2023 with an operating passenger fleet comprised of 140 aircraft: 127 Airbus 320 family aircraft and 13 Boeing 787s.
• The Group continued to execute its point-to-point network strategy, adding 7 new point-to-point routes during the quarter, bringing a total of 19 new routes throughout 2023, while also strengthening its presence in Bogotá and San Salvador . In addition, Avianca made a historic investment of USD 473 million to improve the connection between the regions of Colombia.
• During 2023, Avianca maintained its efforts to reduce its carbon footprint, achieving a 25% decrease in carbon emissions per passenger compared to 2019. This achievement is attributed 15% to aircraft reconfiguration and 10% to the fuel program, fleet standardization and new routes, demonstrating an active commitment to climate change mitigation.
• Cirium, an industry leader in aviation analytics, recognized Avianca Group as the world’s most on-time global airline in 2023, with an On-Time Performance (OTP) of 85.7%.