Avianca widens Q2 net loss on lower revenue, aircraft phase-out
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/>
https://portal.staralliance.com/cms/news/hot-topics/2019-08-19/star/avianca-widens-q2-net-loss-on-lower-revenue-aircraft-phase-out
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Avianca widens Q2 net loss on lower revenue, aircraft phase-out
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/>
