Avianca posts profit as it scrambles to fill Colombian capacity needs
Avianca reported a profit for Q3 2023, as passenger demand remains strong following the demise of two domestic airlines, pushing the company’s results beyond expectations. The Bogota-based airline turned an $82.1m profit during the three months ending on 30 September, compared to its $8.1m loss in the same period last year. Avianca’s Q3 revenue rose to $1.28b from $1.12b in the same period a year ago. “We are very proud of the quarter,” says CE Adrian Neuhauser. “These results are based on our new business model, on a cost-driven strategy [and] higher load factors, and not… based on a yield push, and that’s pretty extraordinary for the region.” The airline’s capacity as measured in available seat kilometres rose 31.5% from the same quarter last year, while its hours flown increased 19.2% year on year. Its load factor rose to 85.5% from 82.4% one year earlier – higher than Avianca estimated in a business plan – and its average daily aircraft utilisation during Q3 was “significantly improved”, at 11h 12min, the carrier says. The airline acquired 17 aircraft last quarter, bringing its fleet to 159 aircraft, of which it owns six and leases 153. Avianca has increased its capacity further in Q4 to fill a hole left by Viva Air and Ultra Air – two domestic carriers that folded earlier this year. “One of the effects of the restructuring of the market in Colombia, with two airlines failing around us, [is that] there is excess demand that needs to be served by incremental aircraft,” Neuhauser says. Bogota’s El Dorado International airport can now operate at 74 slots hourly, the highest level possible – an increase which has offered Avianca further opportunity. “To address the missing capacity in the market and to protect those slots from being available to third parties in the future, we had to grow our operations by nearly one quarter into the fourth quarter,” he adds. “By the end of the year we will have 750 flights per day,” up from about 600 in pre-pandemic 2019. Avianca’s additional flights per month will exceed 4,800, adds deputy CE Frederico Pedreira. The airline added those flights to its schedule starting in November, meaning it spent much of Q3 preparing. Story has more.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-13/star/avianca-posts-profit-as-it-scrambles-to-fill-colombian-capacity-needs
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Avianca posts profit as it scrambles to fill Colombian capacity needs
Avianca reported a profit for Q3 2023, as passenger demand remains strong following the demise of two domestic airlines, pushing the company’s results beyond expectations. The Bogota-based airline turned an $82.1m profit during the three months ending on 30 September, compared to its $8.1m loss in the same period last year. Avianca’s Q3 revenue rose to $1.28b from $1.12b in the same period a year ago. “We are very proud of the quarter,” says CE Adrian Neuhauser. “These results are based on our new business model, on a cost-driven strategy [and] higher load factors, and not… based on a yield push, and that’s pretty extraordinary for the region.” The airline’s capacity as measured in available seat kilometres rose 31.5% from the same quarter last year, while its hours flown increased 19.2% year on year. Its load factor rose to 85.5% from 82.4% one year earlier – higher than Avianca estimated in a business plan – and its average daily aircraft utilisation during Q3 was “significantly improved”, at 11h 12min, the carrier says. The airline acquired 17 aircraft last quarter, bringing its fleet to 159 aircraft, of which it owns six and leases 153. Avianca has increased its capacity further in Q4 to fill a hole left by Viva Air and Ultra Air – two domestic carriers that folded earlier this year. “One of the effects of the restructuring of the market in Colombia, with two airlines failing around us, [is that] there is excess demand that needs to be served by incremental aircraft,” Neuhauser says. Bogota’s El Dorado International airport can now operate at 74 slots hourly, the highest level possible – an increase which has offered Avianca further opportunity. “To address the missing capacity in the market and to protect those slots from being available to third parties in the future, we had to grow our operations by nearly one quarter into the fourth quarter,” he adds. “By the end of the year we will have 750 flights per day,” up from about 600 in pre-pandemic 2019. Avianca’s additional flights per month will exceed 4,800, adds deputy CE Frederico Pedreira. The airline added those flights to its schedule starting in November, meaning it spent much of Q3 preparing. Story has more.<br/>
