Avianca Holdings posted a 2019 Q2 net loss of US$408m, widened from $35m in the year-ago quarter. The loss was partly attributed to a $285m one-time charge associated with the phase-out of less-efficient Airbus A318 and Embraer E190 aircraft. Q2 revenue was $1.2b, down 6.9% year-over-year at as a result of currency weakness and capacity growth outpacing demand. CASK-ex fuel decreased 6.7% as the company began optimising expenses. Avianca is urging investors to give the company more time to execute its “Avianca 2021” strategic turnaround plan, following the release of weaker-than-expected Q2 earnings Aug 14. That turnaround plan will see Avianca’s new management team phase out aircraft, reduce capacity and optimise its network to maximise profitability, company officials said. <br/>
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Turkish Airlines reported a 2019 Q2 net income of US$26m, down 79.5% from a net profit of $127m in the year-ago period. Operating profit for the quarter dropped 96% to $10m from $267m in Q2 2018. The carrier primarily attributed the Q2 loss to decreasing domestic demand, the move to the new Istanbul airport, the Boeing 737 MAX fleet grounding, and Airbus A320neo delayed deliveries, which limited revenue growth. The carrier said revenue was slightly down 0.1% for the quarter to $3.2b from $3.17b year-over-year. The move to the new Istanbul Airport in the first weeks of Q2 caused numerous flight cancellations. Turkish Airlines chairman Ilker Ayci said, “Overall, we cut about 5,000 frequencies just in the month of April, which is travel-wise a busy month.” <br/>
The Narendra Modi-led govt’s plan to sell debt-laden Air India is still on track as it has reportedly decided to completely exit the carrier. The committee of secretaries (CoS) headed by cabinet secretary PK Sinha has given the green signal to offload 95% stake in the carrier. The divestment proposal will be placed before a ministerial body, headed by Union Home minister Amit Shah in the next 15 days, where a final call will be taken on the timing, price and amount of shares of Air India to be sold. It further mentioned that the Centre will retain a 5% stake in the debt-laden carrier for ESOP of permanent employees, and the EoI will be out by the first week of October. <br/>