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Avianca CEO: 1Q2019 a 'difficult start of the year' in a 'challenging environment'

Avianca Avianca Colombia Avianca Holdings AVA AV Colombia

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#1 A345_Leadership

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Posted 17 de May de 2019 - 22:27

17-May-2019 2:07 AM
 
Avianca Holdings interim CEO Renato Covelo commented (15-May-2019) on 1Q2019 operations and results, stating: "Avianca Holdings had a difficult start of the year". He proceeded to describe a "challenging environment" created by the foreign exchange pressures on fuel prices and "other obstacles". Mr Covelo added that the carrier was able to "advanced important strategic objectives… on several different fronts. These are initial indications of our success in stabilising our business, as we pivot from a growth-driven strategy to now focus on our core business units, namely our passenger, loyalty and cargo operations, with a strong emphasis on profitability and strengthened cash generation". 
 
 
Avianca reduces ‘average fares by 4.2% given the macroeconomic weakness’ in several markets
May 17, 2019
 
Avianca Holdings attributed (15-May-2019) the USD18.5 million operating income (EBIT) in 1Q2019, with a 1.6% EBIT margin in 1Q2019 primarily to a 1.5% year-on-year decrease in total operating revenues as Latin American currencies devalued against the USD and average fare reduced by 4.2% resulting in a 6.2% reduction in passenger yields, reaching USD 8.6 cents. Avianca stated: “Avianca decided to reduce average fares by 4.2% this quarter given the macroeconomic weakness of several Latin American currencies”. Passenger revenues reduced by 0.1% while cargo and other revenues reduced by 8.4%, primarily due to the termination of a commercial agreement with Etihad and a reduction in chartered cargo operations. These effects were partially offset by an increase in regular cargo revenues due to a 2.4% increase in transported tons. Cargo and other revenues represented 15.7% of total revenues in the quarter.
 

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