Avianca posts US$36m Q2 loss on fuel costs, strike effects
Avianca Holdings had an unadjusted net loss of US$35.7m for Q2 2018, reversed from a $10.6m net profit in Q2 2017, as the company faced currency volatility, increased fuel prices, infrastructure disruptions and continuing after-effects of a 51-day pilots’ strike in Q4 2017. On an adjusted basis, in which one-time operational expenses related to the pilots’ strike totalling $29m are figured in, Avianca’s Q2 net loss came to $6.7m for the quarter. Avianca CE Hernan Rincon said the pilots’ strike’s effects, which were evident in a 6.9% YOY decrease in Colombian domestic passenger traffic (as capacity fell 6.8%), “should be mitigated during the second half of this year.” The company is sticking with its previously announced 6% to 8% EBIT guidance range for full-year 2018. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-08-17/star/avianca-posts-us-36m-q2-loss-on-fuel-costs-strike-effects
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Avianca posts US$36m Q2 loss on fuel costs, strike effects
Avianca Holdings had an unadjusted net loss of US$35.7m for Q2 2018, reversed from a $10.6m net profit in Q2 2017, as the company faced currency volatility, increased fuel prices, infrastructure disruptions and continuing after-effects of a 51-day pilots’ strike in Q4 2017. On an adjusted basis, in which one-time operational expenses related to the pilots’ strike totalling $29m are figured in, Avianca’s Q2 net loss came to $6.7m for the quarter. Avianca CE Hernan Rincon said the pilots’ strike’s effects, which were evident in a 6.9% YOY decrease in Colombian domestic passenger traffic (as capacity fell 6.8%), “should be mitigated during the second half of this year.” The company is sticking with its previously announced 6% to 8% EBIT guidance range for full-year 2018. <br/>
