Avianca raises earnings guidance on improved Q2 revenue, traffic

Citing significant Q2 gains in yield, operating income, revenue and traffic, Avianca Holdings raised its full-year EBIT margin guidance to between 7%-9%, up 1 point from Q1 2017, the company reported Aug 15. “[Our] focus on increasing revenues, cost reduction and … efficiency throughout our organisation have enabled the company to capture important benefits over the past 3 months,” Avianca CE Hernán Rincón said. “In addition, we saw stable economies in the region after more than 2 years of economic downturn, as well as a relative stable oil price after [recent] ups and downs.” Avianca reported a net profit of US$10.6m for Q2 2017, a reversal of the company’s $23.2m net loss in Q2 2016. Operating revenue increased 13% year-over-year to $1.1m. <br/>