Avianca Holdings S.A. (NYSE: AVH) (BVC: PFAVH) presents the
following results pertaining to the second quarter 2016 (2Q 2016).
Financial and operational information is provided in millions of US
dollars unless stated otherwise. The following information is
presented in accordance with International Financial Reporting
Standards (IFRS). The reconciliation between IFRS and non-IFRS
financial information can be seen in the financial tables section
of this report. Except when noted, all comparisons refer to second
quarter 2015 (2Q 2015) numbers. Figures and operating metrics of
Avianca Holdings S.A. (“Avianca Holdings” or “the Company”) are
presented on a consolidated basis.
AVIANCA HOLDINGS S.A.
NYSE: AVH BVC: PFAVH
Financial Highlights
(6 months ended June 30th)
($ millions)
1H-15 1H-16
Revenues 2.2Bn 2.0Bn EBITDAR 329.4 381.2 EBIT 57.8 97.8 EBITDAR1
345.1 393.3 EBIT1 73.5 109.9 Net Income 10.7 -20.0
Net income*1
-2.9 17.4
*Excluding Fx and Derivative Charges
(3 months ended June 30th)
($ millions)
2015 2016 Revenues
1.1Bn 1.0Bn EBITDAR 135.7 166.3 EBIT 0.8 25.5 EBITDAR1 140.0 178.4
EBIT1 5.1 37.6 Net Income -22.8 -23.2 Net income*1 -24.8 -4.0
*Excluding Fx and Derivative Charges
Profitability
(6 months ended June 30th)
1H-15 1H-16 EBITDAR% 15.1% 19.3%
EBIT % 2.7% 5.0% EBITDAR %1 15.9% 20.0% EBIT %1 3.4% 5.6% Net
income % 0.5% -1.0% Net Income%*1
-0.1%
0.9%
*Excluding Fx and Derivative Charges
(3 months ended June 30th)
2015 2016 EBITDAR% 12.8% 17.2%
EBIT % 0.1 % 2.6% EBITDAR %1 13.2% 18.5% EBIT %1 0.5% 3.9% Net
income % -2.1% -2.4% Net Income%*1 -2.3% -0.4%
*Excluding Fx and Derivative Charges
Operational Highlights
(6 months ended June 30th)
1H-15 1H-16 Passengers 13.62M
14.20M ASKs 21.33Bn 23.08Bn RPKs 16.82Bn 18.10Bn Load Factor 78.9%
78.4% RASK 10.21 8.54 CASK 9.94 8.12
(3 months ended June 30th)
2015 2016 Passengers 6.9M 7.1M
ASKs 10.8Bn 11.6Bn RPKs 8.5Bn 9.0Bn Load Factor 78.7% 78.1% RASK
9.85 8.35 CASK 9.84 8.13
Second Quarter 2016 Highlights
- The second quarter of the year proved
to be a strong quarter for Avianca, as such, operating income
(EBIT1) reached $37.6 million, posting an operating margin1 of
3.9%, a 341 bps increase over the same quarter of last year.
Furthermore operating revenues amounted to $966.2 million for the
quarter.
- These results were mainly driven by a
12.1% reduction in total operating costs1 as the Company continued
to further capture benefits from lower oil prices, which in hand
with the cost saving initiatives have led to a leaner cost
structure. These figures were partially offset by a 10.7% decrease
in passenger revenues due to a yield dilution of 16.1%, partly
compensated by growth in traffic numbers (RPKs).
- Cost per available seat kilometer
(CASK1) decreased 18.1% to 8.02 cents in 2Q 2016, compared to 9.80
cents in 2Q 2015. This figure was mainly driven by lower jet fuel
prices which dropped 35% over the quarter. As the cost control
initiatives continue to yield efficiencies, CASK ex-fuel1 declined
12.3% to 6.37 cents.
- EBITDAR1 for the 2Q 2016 was $178.4
million, while the EBITDAR margin1 reached 18.5%, a 528 bps
increase when compared to 2015.
- Adjusted Net income1, excluding special
items totaled -$4.0 million. As such, adjusted net income margin
for 2Q 2016 reached -0.4%, a 192bps increase over the same period
of 2015.
- Capacity, measured in ASKs (available
seat kilometers), increased 7.4% during 2Q 2016, mostly due to the
annualized effect of the international capacity deployed to Europe
during 2015. Moreover the company continued to see robust traffic
numbers in Europe, South America and the Caribbean. Furthermore,
passenger traffic, measured in RPKs (revenue passenger kilometers),
grew 6.5%, reaching a consolidated load factor of 78.1%.
- In accordance with the Company’s fleet
plan, between April and June 2016, the Company took delivery of one
A320S, while phasing out three A319's and two E190's. The phase out
of these last two aircraft from the Embraer E190 family is part of
Avianca's fleet optimization process which seeks to reduce
operational complexity. Consequently, Avianca Holdings S.A. and its
subsidiaries ended the quarter with a consolidated operating fleet
of 174 aircraft.
CEO Message
Dear Shareholders
After over 100 days at the helm of the Company, I would like to
share with you the flight plan that we have put together that will
take Avianca to new heights. As we continue to strengthen the
Company, we acknowledge that growing technology penetration in our
markets, allow our customers to better compare different offerings
in more detail. As such, our clients demand best in class products
and services which Avianca strives to provide throughout its
product offerings.
Thus, our new business plan is centered on our customers as the
fundamental driver of our strategy. Supported by technology, our
aim is to enhance customer experience and boost productivity. In
order to set forth this action plan, we have defined four fronts
that we will prioritize as follows: strengthen our hubs and core
markets, develop a world class technological platform to constantly
improve customer satisfaction and operational excellence, promote
the full development of other business units and finally, develop
long term strategic partnerships that will set the base for
profitable business sustainability.
We strongly believe that a new customer centric organization
will be the foundation for the new Avianca: “A world class airline
based in Latin America that serves the globe with customers at the
core of its strategy”. Therefore in the month of July, the Board of
Directors approved a new organizational model as the foundation of
the Avianca of the future. The new structure was designed based on
best in class industry practices by all senior management of the
Company in collaboration with an international consulting firm.
This new model is meant to bring the Company closer to its
customers and markets by empowering managers, increasing the number
of direct reports and hence reducing organizational layers within
the company. Leveraged on new technologies, this new structure aims
to align corporate goals, increase team work, and improve
productivity as we introduce a dual reporting matrix structure that
will enable the Company to make faster and smarter decisions.
Despite seasonality and a traditionally weak second quarter for
airlines in the region, the second quarter of the year proved to be
strong for Avianca, as traffic numbers across our markets gained
traction and the macroeconomic fundamentals continued to stabilize.
As such, passenger traffic numbers expressed in RPKs grew by 6.5%
over the same period of 2015. The latter mainly driven by stronger
domestic markets and incremental traffic numbers in South America,
the Caribbean and Europe. As part of our ongoing network
optimization process, we continued to selectively grow in specific
markets. Accordingly, we are proud to say that Avianca is the first
airline to launch an international direct service to Cuzco, with 3
weekly frequencies from our Bogota Hub. Furthermore, over the
second quarter of 2016 we managed to maintain a stable load factor
of 78.1% across our network.
In line with our objective of developing a state of the art
technological platform, we successfully inaugurated a brand new MRO
facility near Medellin, with a total area of 42,125 square meters
and 19,799 square meters in hangars and aircraft component repair
facilities. This facility is one of the most advanced maintenance
centers in the world and will enable us to achieve economies of
scale in our maintenance operation across the regions we serve.
With the purpose of better serving our clients, we have
continued to expand and strengthen our network through our
international strategic partnerships, in line with this, we signed
a new code share agreement with Etihad Airways. The latter will now
enable our travelers to purchase their tickets to Abu Dhabi or
Bogota with Avianca on flights operated by both carriers.
As part of our deleveraging strategy, we continued to work on
our cost saving initiatives program launched in 2015. As such, we
signed a new agreement with Amadeus, one of our key global
distribution system providers. This new agreement will not only
include new system features that will enable us to better interact
with our customers, but also is expected to generate additional
savings that will support a leaner cost structure.
Over the quarter, our loyalty program LifeMiles, continued to
expand as our cobranded credit card base grew 25.5%, reaching
485,000 credit cards by quarter end. Furthermore the program ended
with more than 6.7 million members, which represents a 9.3%
increase over the same quarter of 2015.
Moreover, we managed to expand Avianca’s profitability as our
revenues for the quarter reached more than USD 966 million while
operational costs1 dropped by more than 12.0%. As a result, our
operating margin1 grew by more than 341 basis points, reaching a
consolidated EBIT1 margin of 3.9% for the quarter and 5.6% for the
first half of the year. As such we reaffirm our 2016 EBIT margin
guidance between 5.5% and 7.5%. Finally we reiterate our commitment
with our stake holders to continue to focus on profitability and
competitiveness as we put our customers and technology at the core
of our strategy.
Sincerely,
Hernán Rincón
Chief Executive Officer
Consolidated Financial and
OperationalHighlights1
2Q-15 2Q-16
∆ Vs. 2Q-15
ASKs (mm)
10,780 11,575 7.4 %
RPKs (mm)
8,488 9,037 6.5 % Total Passengers (in millions) 6,936 7,073 2.0 %
Load Factor 78.7 % 78.1 % -67bp Departures 74,082 75,938 2.5 %
Block Hours 134,653 141.440 5.0 % Stage length (km) 987 1,012 2.5 %
Fuel Consumption Gallons (000's)
112,045 120,446
7.5 % Yield (cents) 9.8 8.2 -16.1 % RASK (cents) 9.8 8.3 -15.2 %
PRASK (cents) 7.7 6.4 -16.8 % CASK (cents) 9.8 8.1 -17.4 % CASK ex.
Fuel (cents) 7.3 6.5 -11.3 % CASK (Adjusted) (cents) 9.8 8.0 -18.1
% CASK ex. Fuel (Adjusted) (cents) 7.3
6.4 -12.3 %
Foreign exchange (average) COP/US$ $ 2,501.8 $ 3,249.0 29.9 %
Foreign exchange (end of period) COP/US$ $ 2,585.1 $ 3,022.4 16.9 %
WTI (average) per barrel $ 57.8 $ 45.4 -21.5 % Jet Fuel Crack
(average) per barrel $ 16.1 $ 8.2 -49.2 % US Gulf Coast ( Jet Fuel
average) per barrel $ 74.0 $ 53.6 -27.5 % Fuel price per Gallon
(including hedge) $ 2.44
$ 1.58 -35.0 % Operating Revenues ($M) $
1,061.3 $ 966.2 -9.0 % EBITDAR ($M) $ 135.7 $ 166.3 22.6 % EBITDAR
Margin 12.8 % 17.2 % 443 bp EBITDA ($M) $ 53.0 $ 89.4 68.6 % EBITDA
Margin 5.0 % 9.3 % 426 bp Operating Income ($M) $ 0.8 $ 25.5 3048.2
% Operating Margin ($M) 0.1 % 2.6 % 257 bp Net Income ($M) $ (22.8
) $ (23.2 ) -1.9 % Net Income Margin -2.1 % -2.4 % -26 bp EBITDAR
(Adjusted) ($M) $ 140.0 $ 178.4 27.5 % EBITDAR Margin (Adjusted)
13.2 % 18.5 % 528 bp EBITDA (Adjusted) ($M) $ 57.3 $ 101.5 77.1 %
EBITDA Margin(Adjusted) 5.4 % 10.5 % 510 bp Operating Income
(Adjusted) ($M) $ 5.1 $ 37.6 636.3 % Operating Margin ($M)
(Adjusted) 0.5 % 3.9 % 341 bp Adjusted Net Income ($M) $ (24.8 ) $
(4.0 ) 83.9 % Net Income Margin (Adjusted)
-2.3 % -0.4 % 192 bp
(Adjusted: Excluding non-cash Fx
charges, gain or loss on derivative instruments and special items
associated to one-time expenses described in footnote (1))
Management Comments on 2Q 2016 Results
The second quarter of the year proved to be a strong quarter for
Avianca, the company reached an operating income (EBIT1) of $37.6
million while the operating income (EBIT1) margin came in at 3.9%,
an increase of 341 bps over the same period of 2015. These results
were mainly driven by a 12.1% reduction in total operating costs1
as the Company continued to capture lower fuel costs and
efficiencies from its cost cutting initiatives. As such, CASK
ex-fuel1 during 2Q 2016 declined 12.3% to 6.37 cents. The latter
was partially offset by a 9.0% decline in total revenues, as
passenger revenues continued to be pressured by FX depreciation and
consequently lower yields, which dropped at the slowest pace over
the last twelve months.
Total operating revenues amounted to approximately $966.2
million during 2Q 2016. This represents a decrease of 9.0% over the
same quarter in 2015, primarily due to a 10.7% decline in passenger
revenue as yields declined 16.1%. Cargo and other revenues, which
represent 23.3% of total revenues, decreased 2.9% to $225.3 million
during the quarter. The latter was mainly driven by a 2.3% decline
in the average fare as well as a decrease in the total tons of
transported associated to a lower volume of imports from North
America to Colombia, Brazil and Ecuador. The latter was partially
offset by higher courier revenues.
During 2Q 2016 the LifeMiles Loyalty Program continued to
deliver positive results, revenues grew 33.5% when compared to the
same period of 2015. In terms of membership growth, the quarter
ended with more than 6.7 million members, which represents a 9.3%
increase over 2Q 2015. During the same period, the retail coalition
program continued to expand, as such commercial partners increased
13.2% to 300. Finally, in terms of active co-branded cards,
LifeMiles ended the quarter with more than 485,000 cards, which
represents a 25.5% growth when compared to 2Q 2015.
Throughout 2Q 2016, the Company carried more than 7.0 million
passengers, an increase of 2.0% when compared to 2Q 2015. Traffic
figures (RPKs) grew slightly below capacity (ASKs) leading to a
consolidated load factor of 78.1% as the capacity deployed in 2015
continued to mature over the first quarter of 2016. As such, during
June 2016, routes to Europe reached an average consolidated load
factor of 92.8% and 86.6% from Bogota to Los Angeles. Furthermore,
traffic numbers to South America and the Caribbean, over the
quarter, continued to expand by 7.8% and 10.0% respectively.
Operating expenses1 for 2Q 2016 reached $928.6 million, which
represents a decrease of 12.1% when compared to 2Q 2015. The latter
was mainly driven by a decline of 30.1% in Fuel Expenses,
associated to lower jet fuel prices and a decrease of 23.4% in
Sales and Marketing mainly driven by the new agreement with Amadeus
and the positive impact of COP depreciation. Furthermore, Aircraft
Rentals decreased 6.9% as fleet deliveries over the last twelve
months, such as the B787, have been financed through lower yielding
financial leases. These results were partially offset by a 22.3%
increase in Depreciations and Amortizations as the Company adjusted
the selected aircraft family’s useful life and salvage value due to
changes in market prices, as well as the amortization of
pre-operative assets such as the MRO facility.
As part of the Company’s on-going fuel hedging strategy by the
end of the 2Q 2016, a total of 148.7 million gallons were hedged,
out of which 122.1 million gallons correspond to approximately
57.5% of the total expected volume to be consumed over 2016. The
remaining volume represents around 3.0% of the total expected
volume to be consumed from 2017 to 2018. The average price of the
hedges was set at $1.38/gallon. During 2016 hedging expenses are
expected to range between $5 to $7 million per quarter allowing us
to cap hedging expenses and seize additional benefits from lower
fuel prices throughout the year.
In accordance with the Company’s fleet plan, between April and
June 2016, the Company took delivery of one A320S, while phasing
out three A319's and two E190's. The phase out of these last two
aircraft from the Embraer E190 family is part of Avianca's fleet
optimization process which seeks to reduce operational complexity.
Consequently, Avianca Holdings S.A. and its subsidiaries ended the
quarter with a consolidated operating fleet of 174 aircraft.
The Company recorded other non-operating expenses of $47.2
million for the 2Q 2016, compared to a non-operating expense of
$25.5 million for the same quarter of 2015. Non-operating expenses
include interest expenses related to incremental aircraft debt and
additional corporate debt as well as FX gain or losses. In addition
the Company recorded expenses related to the foreign exchange
non-cash translation adjustments of $12.4 million compared to a
$4.4 million gain for the same period of 2015. This effect is
primarily due to a loss in foreign exchange translation
adjustments, consisting of the net non-cash gain (or loss from) of
our monetary assets and liabilities denominated in Colombian Pesos,
Argentinian Pesos, and Venezuelan Bolivares subject to the USD
exchange rate.
The Company’s cash and cash equivalents and available-for-sale
securities, ended the quarter at $372.3 million. Including
short-term certificates and bank deposits, adjusted cash and cash
equivalents and available-for-sale securities (other current
assets) came in at $406.22 million, equivalent to about 9.8% of
revenues for the last twelve months. As of June 30, 2016 the
Company valuated its cash balances held in Venezuela at the latest
DICOM exchange rate of 628.3 VEF per 1.00 USD, resulting in a total
loss of $4.8 million. Accordingly, the carrying amount of cash
balances held in Venezuela of $1.6 million have been classified as
follows: $0.9 million as cash and cash equivalents, which is
expected to be used over the next three months as part of the
normal operations in Venezuela; $0.7 million as short-term
restricted cash, which is expected to be used in the following 9
months.
In line with the deleveraging strategy, as of June 30, 2016,
the Company’s leverage position (Net Adjusted debt to
EBITDAR3) decreased to 6.3x from 6.8x on December 31,
2015. As such, the Company’s total long term debt amounted to
$2.93 billion, while total liabilities came in at $5.00
billion.
Full Year 2016 – Outlook
We will continue to execute cost saving initiatives as well as
revenue enhancing projects that are expected to yield results over
the next two years. As such, the Company maintains its guidance for
2016 as follows:
Outlook Summary
Full Year 2016
Total Passengers Increase from 2015 3.0% - 5.0%
Capacity (ASKs) Increase from 2015
3.0% - 5.0% Load Factor 78.0% - 80.0% EBIT Margin
5.5% - 7.5%
Analysis by ASKs (in U.S.
cents)
2Q 2015 2Q 2016
Var% Operating revenue:
Passenger
7,69 6,40 -16,8% Cargo and other 2,15 1,95
-9,6%
Total Operating revenues 9,85 8,35 -15,2%
Operating expenses: Flight Operations 0,14 0,13 -5,5% Aircraft fuel
2,53 1,65 -34,9% Ground Operations 0,95 0,88 -7,3% Aircraft rentals
0,77 0,66 -13,3% Passenger services 0,33 0,31 -4,4% Maintenance and
repairs 0,68 0,60 -11,6% Air traffic 0,48 0,43 -10,8% Sales and
marketing 1,49 1,06 -28,6% General, administrative, and other 0,37
0,44 19,3% Salaries, wages and benefits 1,62 1,41 -13,2%
Depreciation and amortization 0,48 0,55
13,9%
Total operating expense 9,84
8,13 -17,4% Operating income
0,01 0,22 2831,9%
Total CASK 9,84 8,13 -17,4% CASK ex.
Fuel 7,31 6,48 -11,3% Total Cask
(Adjusted) 9,80 8,02 -18,1% CASK ex.
Fuel (Adjusted) 7,27 6,37 -12,3%
Yield 9,77 8,20
-16,1%
Non-IFRS Financial Measure
Reconciliation
In USD Millions
2Q2015
2Q2016 Var% Net Income as Reported (22,8) (23,2)
-1,9% Special items (adjustments): (-) Gain on Sale of Property and
Equipment (F100) - -2,0 (+) Loss on Sale of Property and Equipment
(A319) - 6,4 (+) Loss on Adjustment of Aircraft Reasonable Value -
7,7 (+) Foreign Object Damage 4,3 - (-) Derivative Instruments 1,9
5,3 (-) Foreign exchange gain (loss) 4,4
-12,4
Net Income Adjusted
(24,8) (4,0)
83,9%
Reconciliation of Operating Cost per
ASK Excluding Special Items
In US Cents
2Q2015
2Q2016 Var% Total CASK as reported 9,84 8,13 -17,4%
Aircraft Fuel 2,53 1,65 Total CASK excluding Fuel as reported 7,31
6,48 -11,3% (-) Gain on Sale of Property and Equipment (F100) -
0,02 (+) Loss on Sale of Property and Equipment (A319) - (0,06) (+)
Loss on Adjustment of Aircraft Reasonable Value - (0,07) (+)
Foreign Object Damage (0,0) -
Total CASK excluding Fuel and special
items 7,27 6,37
-12,3%
Adjusted EBITDAR Calculation excluding
special items
in US$ Millions
2Q2015 2Q2016
Var% Operating Revenues as Reported 1.061,3
966,2 Operating Expenses 787,6 750,0 Aircraft Fuel
272,9 190,7
Operating
Income as reported 0,81
25,5 3048,2% (-) Gain on Sale of
Property and Equipment (F100) - (2,0) (+) Loss on Sale of Property
and Equipment (A319) - 6,4 (+) Loss on Adjustment of Aircraft
Reasonable Value - 7,7 (+) Foreign Object Damage
4,3 -
Operating Income
adjusted 5,1
37,6 636,3% Margin 0,5% 3,9% (+)
Depreciation and amortization 52,2
63,9
Adjusted EBITDA
57,3 101,5
77,1% Margin 5,4% 10,5% (+) Aircraft Rentals
82,6 76,9
Adjusted EBITDAR 140,0
178,4 27,5% Margin 13,2% 18,5%
Interim Condensed Consolidated Statement of Comprehensive
Income for the Six-month period ended June 30, 2015 and 2016
(Unaudited USD thousands)
2016 2015
Operating revenue: Passenger $ 1,532,733 $ 1,728,428 Cargo and
other 438,412 448,581
Total
operating revenue 1,971,145 2,177,009 Operating expenses:
Flight Operations 27,810 33,090 Aircraft fuel 356,380 538,008
Ground operations 203,632 205,347 Aircraft rentals 156,515 162,311
Passenger services 71,587 72,037 Maintenance and repairs 142,851
153,270 Air traffic 99,465 100,819 Sales and marketing 278,934
315,029 General, administrative, and other 91,029 85,791 Salaries,
wages and benefits 318,250 344,217 Depreciation, amortization
126,912 109,273
Total operating
expenses 1,873,365 2,119,192
Operating profit 97,780 57,817
Other non-operating income (expense): Interest expense (89,573 )
(78,284 ) Interest income 6,457 10,484 Derivative instruments 4,521
1,562 Foreign Exchange (29,787 ) 27,743
Profit before income tax (10,602 ) 19,322
Income tax expense- current (13,798 ) (12,859 )
Income tax expense- deferred 4,407 4,195
Total income tax expense (9,391 ) (8,664 )
Net profit for the period $ (19,992 )
$ 10,658
Interim Condensed Consolidated Statement of Financial
Position (in USD thousands)
As ofJune 30,2016
As ofDecember31,
2015
(Unaudited) (Audited)
Assets Current assets: Cash and
cash equivalents 372,344 479,381 Restricted cash 4,642 5,397
Accounts receivable, net of provision for doubtful accounts 294,431
279,620 Accounts receivable from related parties 27,831 23,073
Expendable spare parts and supplies, net of provision for
obsolescence 74,191 68,768 Prepaid expenses 47,036 45,708 Assets
held for sale 7,677 3,323 Deposits and other assets 159,736 130,724
Total current assets 987,888 1,035,994
Non-current assets:
Available-for-sale securities 71 793 Deposits and other assets
177,311 246,486 Accounts receivable, net of provision for doubtful
accounts 99.176 59.713 Intangible assets 408,404 413,766 Deferred
tax assets 17,341 5,847 Property and equipment, net 4,589,054
4,599,346 Total non-current assets 5,291,357 5,325,951
Total
assets 6,279,245 6,361,945
Interim Condensed Consolidated Statement of Financial
Position (in USD thousands)
As ofJune 30,2016
As ofDecember
31,2015
Liabilities and equity Current liabilities: Current
portion of long-term debt 403,547 412,884 Accounts payable 482,118
480,592 Accounts payable to related parties 10,604 9,449 Accrued
expenses 111,776 118,192 Provisions for legal claims 17,761 13,386
Provisions for return conditions 66,970 52,636 Employee benefits
35,372 32,876 Air traffic liability 496,017 433,575 Other
liabilities 14,102 12,691 Total current liabilities 1,638,267
1,566,281
Non-current liabilities: Long-term debt 2,928,059
3,060,110 Accounts payable 3,069 3,599 Provisions for return
conditions 104,785 109,231 Employee benefits 158,115 127,720
Deferred tax liabilities 20,438 13,475 Air traffic liability 90,377
93,519 Other liabilities non-current 24,501 15,375 Total
non-current liabilities 3,329,344 3,423,029
Total
liabilities 4,967,611 4,989,310 Equity:
Common stock 82,600 82,600 Preferred stock 42,023 42,023 Other
capital reserve 458 — Additional paid-in capital on common stock
234,567 234,567 Additional paid-in capital on preferred stock
469,273 469,273 Retained earnings 446,713 507,132 Revaluation and
other reserves 18,394 18,394
Total equity attributable to the
Company 1,294,028 1,353,989 Non-controlling
interest 17,606 18,646
Total equity 1,311,634 1,372,635
Total liabilities and equity 6,279,245
6,361,945
Notes with regard to the statement of future
expectations
This report contains statements of future expectations.
These may include words such as “expect”, “estimate”,
“anticipate” “forecast”, “plan”, “believe” and similar expressions.
These statements and the statements regarding the Company’s beliefs
and expectations do not represent historical facts and are based on
current plans, projections, estimates, forecasts and therefore you
should not place undue reliance on them. Statements regarding
future expectations involve certain risks and uncertainties.
Forward-looking statements involve inherent known and unknown
risks, uncertainties and other factors, many of which are outside
of the Company’s control and difficult to predict. Avianca Holdings
S.A. warns that a significant number of factors may cause the
actual results to be materially different from those contained in
any statement with regard to future expectations. Statements of
this kind refer only to the date on which they are made, and the
Company does not take responsibility for publicly updating any of
them due to the occurrence of future or other events.
Glossary of Operating Performance Terms
This report contains terms relating to operating performance
that are commonly used in the airline industry and are defined as
follows:
A
ASK: Available seat
kilometers represents aircraft seating capacity multiplied by the
number of kilometers the seats are flown.
ATK: Available ton
kilometers represents cargo ton capacity multiplied by the number
of kilometers the cargo is flown.
B
Block Hours: Refers to the
elapsed time between an aircraft leaving an airport gate and
arriving at an airport gate.
C
CASK: Cost per available
seat kilometer represents operating expenses divided by available
seat kilometers (ASKs).
CASK ex-fuel: Represents
operating expenses other than fuel divided by available seat
kilometers (ASKs).
Code Share Agreement: refers
to our code share agreements with other airlines with whom we have
business arrangements to share the same flight. A seat can be
purchased on one airline but is actually operated by a cooperating
airline under a different flight number or code. The term “code”
refers to the identifier used in flight schedules, generally the
two-character IATA airline designator code and flight number. Code
share alliances allow greater access to cities through a given
airline’s network without having to offer extra flights, and makes
connections simpler by allowing single bookings across multiple
planes.
L
Load Factor: Represents the
percentage of aircraft seating capacity that is actually utilized
and is calculated by dividing revenue passenger kilometers by
available seat kilometers (ASKs).
R
RASK: Operating revenue per
available seat kilometer represents operating revenue divided by
available seat kilometers.
Revenue Passenger:
Represents the total number of paying passengers (which do not
include passengers redeeming LifeMiles, frequent flyer miles or
other travel awards) flown on all flight segments (with each
connecting segment being considered a separate flight segment).
RPK: Revenue passenger
kilometers represent the number of kilometers flown by revenue
passengers.
RTK: Revenue ton kilometers
represents the total cargo tonnage uplifted multiplied by the
number of kilometers the cargo is flown.
T
Technical Dispatch
Reliability: Represents the percentage of scheduled
flights that are not delayed at departure more than 15 minutes or
cancelled, in each case due to technical problems.
Y
Yield: Represents the
average amount one passenger pays to fly one kilometer, or
passenger revenue divided by revenue passenger kilometers
(RPKs).
Second Quarter 2016 Earnings Results Conference
Call Day: August 22
ENGLISH
10:00am to 11:00am ET
Click here to enter:
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ESPAÑOL
8:00am a 9:00 am COT
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The Company has reported the 2Q 2016 numbers
to the Colombian Financial Superintendence (Superintendencia
Financiera de Colombia) and the U.S. Securities and Exchange
Commission on August 19th after market close.
For further information please contact the
Investor Relations Office at ir@avianca.com.
1 When indicated the figures exclude the following
one-time items: $2.0M: Accounting gain on sale of a Fokker 100;
$6.4M: Accounting loss on sale of an Airbus A319; $7.7M: Accounting
loss on adjustment of Aircraft reasonable value. (6M and 2Q2015
figures exclude one-time expenses informed on previous earnings
releases)
2 Cash and cash equivalents + Restricted Cash + Available
for sale securities + Short Term Certificates of bank deposits
(Financial Statements -Note 8)
3 Net Adjusted Debt to EBITDAR: (Current Portion of Long
Term debt + Long Term Debt + (Annual Rents Expense x 7) – (Cash and
Cash Equivalents + Restricted Cash + Available for sale
securities)) /12M EBITDAR
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160822005190/en/
Avianca Holdings S.A.Communications and Corporate
AffairsGilma Úsuga, (57+1) - 587 77 00 ext. 1670 -
1711gilma.usuga@avianca.com; janeth.benitez@avianca.comorClaudia
Arenas, (50+2) 2279-5700, (502)
2279-5600claudia.arenas@avianca.comorInvestor Relations Office+571
587 77 00 ext. 1320/1321ir@avianca.comwww.aviancaholdings.com
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