Avianca Holdings S.A. (NYSE: AVH) (BVC: PFAVH) today reported
its financial results for the third quarter of 2016 (3Q 2016). All
figures are expressed in millions of US dollars unless otherwise
stated. The information within 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 third quarter 2015 (3Q 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
(9 months ended September 30th)
($ millions)
9M-15 9M-16 Revenues 3.3Bn
3.0Bn EBITDAR 542.3 610.3 EBIT 129.9 181.2 EBITDAR1 567.7 622.4
EBIT1 155.3 193.3 Net Income 112.7 17.8 Net income*1 108.8 55.2
*Excluding Fx and Derivative Charges
(3 months ended September 30th)
($ millions)
2015 2016 Revenues 1.1Bn
1.1Bn EBITDAR 212.9 229.1 EBIT 72.1 83.4 EBITDAR1 222.6 229.1 EBIT1
81.8 83.4 Net Income 102.1 37.8 Net income*1 65.2 47.6
*Excluding Fx and Derivative Charges
Profitability
(9 months ended September 30h)
9M-15
9M-16 EBITDAR% 16.5% 20.1% EBIT % 3.9% 6.0% EBITDAR
%1 17.7% 20.9% EBIT %1 4.8% 6.5% Net income % 3.4% 0.6% Net
income%*1 3.4% 1.8%
*Excluding Fx and Derivative Charges
(3 months ended September 30h)
2015 2016 EBITDAR% 19.1% 21.6 EBIT %
6.5 % 7.9% EBITDAR %1 20.4% 21.6% EBIT %1 7.5% 7.9% Net income %
9.1% 3.6% Net Income%*1 6.0% 4.5%
*Excluding Fx and Derivative Charges
Operational Highlights
(9 months ended September 30h)
9M-15 9M-16 Passengers 20.99M 21.81M
ASKs 32.95Bn 35.05Bn RPKs 26.26Bn 28.09Bn Load Factor 79.7% 80.2%
RASK 10.00 8.65 CASK 9.6 8.1
(3 months ended September 30h)
2015 2016 Passengers 7.4M 7.6M ASKs
11.6Bn 12.0Bn RPKs 9.4Bn 10.0Bn Load Factor 81.3% 83.5% RASK 9.6
8.9 CASK 9.0 8.2
Third Quarter 2016 Highlights
- Operating income (EBIT) increased in
the third quarter 2016, reaching $83.4 million, with an improved
operating margin of 7.9%. This represents a 36 bps1 quarter on
quarter increase resulting from efficiencies derived through the
Company’s expense reduction program and revised hedging policy.
Further, operating revenues1 reached $1.1 billion for the
quarter.
- These results were primarily driven by
a 3.1% reduction in total operating costs1 as the Company benefited
from its revised fuel hedging strategy and leaner cost structure.
This was partially offset by a 7.6% decrease in non-passenger
revenues1 and a slight reduction in passenger revenues (1.7%).
- For the 3rd quarter of 2016 yields
reached 8.8 cents, a 7.4% increase when compared to the yield of 2Q
2016. This represents Avianca’s first quarter over quarter yield
increase since the second quarter 2014. This trend was supported by
an increase of 5.9% in third quarter 2016 traffic numbers (RPKs)
when compared to the same quarter last year.
- Cost per available seat kilometer
(CASK1) decreased 6.0% to 8.2 cents in 3Q 2016, compared to 8.7
cents in 3Q 2015. This was primarily driven by lower jet fuel
prices, which decreased by 10% during the quarter, as well as by a
16.6% year on year reduction in maintenance and repairs expenses.
In addition, Avianca’s cost control initiatives continue to yield
efficiencies. CASK ex-fuel1 therefore declined 0.5%, to 6.4
cents.
- EBITDAR for the 3Q 2016 was $229.1
million, while the EBITDAR margin reached 21.6%; a 118 bps1
increase when compared to 2015.
- Adjusted Net income excluding special
items totaled $47.6 million. Adjusted net income margin1 for 3Q
2016 therefore reached 4.5%.
- Avianca’s leverage position (Net
Adjusted debt to EBITDAR) decreased to 5.99x from 6.79x on December
31, 2015, as the Company reduced its total debt by $224.6 million
in conjunction with an improvement in profitability.
- Capacity, measured in Available Seat
Kilometers (ASKs), increased 3.1% during 3Q 2016, primarily due to
the annualized effect of the international capacity deployed to
Europe during 2015. The Company continued to see robust traffic
numbers on its international routes, particularly to Europe, South
America and North America. Passenger traffic, measured in Revenue
Passenger Kilometers (RPKs), increased by 5.9%, reaching a
consolidated load factor of 83.5% across the network.
- Between July and September, the Company
took delivery of one sharklet-equipped A319 and two new wide-body
B787-8 aircraft. Avianca Holdings S.A. and its subsidiaries
therefore ended the quarter with a consolidated operating fleet of
177 aircraft.
CEO Message
Dear Shareholders,
While we continue to experience some political and macroeconomic
uncertainty in several markets throughout Latin America during the
third quarter of 2016, Avianca benefited from welcome oil price
stability as well as exchange rate steadiness in key markets. These
positive developments allowed Avianca to adjust its pricing
strategy, providing our customers with improved predictability in
terms of travel expenditures and purchasing power when abroad.
Said stability has fueled renewed demand on both the
international and domestic fronts. Growth in terms of ASKs has been
leveled throughout our network, at around 3%, as the annualization
effect of last year’s capacity deployment diminishes. As a result,
passenger traffic numbers, measured in RPK, grew by 5.9% when
compared to the same period in 2015, driven by steady demand in our
home markets and strong sales for our international routes. In
particular, the services from Bogota to Buenos Aires, Los Angeles,
London and Madrid all registered load factors above 85%. As such,
the 83.5% load factor registered this quarter across the network is
the strongest since the integration between AVIANCA and TACA.
Similarly, due to the particularly strong demand for our routes to
and from Spain, we decided to substantially increase frequencies to
the Iberian Peninsula, from 21 to 35 weekly frequencies, in order
to best respond to our customers’ needs.
In line with the fleet plan we established at the beginning of
the year, we have incorporated three brand new aircraft: one
sharklet-equipped single aisle A319 and two wide body B787-8. We
therefore ended the quarter with an operating fleet comprised of
177 aircraft.
Apart from the positive trends we’re seeing across our network,
we were also able to achieve several important corporate milestones
during the third quarter. We began operations at our Maintenance,
Repair and Overhaul (MRO) facility in Rio Negro, which positions
Avianca at the forefront of international aeronautic maintenance
industry. With an investment of more than USD50 million, Avianca’s
MRO not only allows for simultaneous maintenance of up to five
single aisle aircraft but also ensures significant improvement in
future cost control.
Avianca also achieved a 3.1% reduction in Operating Costs1 this
quarter, in line with our ongoing effort to streamline our cost
structure throughout the organization. Said reduction was mainly
driven by a decrease in maintenance and repairs as well as in crew
training expenses.
Further, our LifeMiles loyalty program achieved solid results
during the third quarter. Its cobranded credit card base increased
by 22.3%, reaching a total of 520,000 credit cards by quarter’s
end. As a result, the program ended the quarter with 6.9 million
members, which represents an 8.9% year on year increase. On October
19, 2016, LifeMiles signed a new partnership with Grupo
Bancolombia, one of the leading franchises in Colombia and Central
America, with over 11 million clients and USD 54.5 billion in total
assets. This partnership is an important step in consolidating the
loyalty program’s position within the region. It allows our new
clients from four new markets to accumulate and redeem their miles
across the entire Avianca network.
The milestones I have described, combined with our successful
strategy, have resulted in a profitable third quarter for Avianca.
The Company reported USD 1.1 billion in revenues1 this quarter,
while operational costs1 decreased by 3.1% to USD 978.8 million.
Avianca therefore recorded a 7.9% operating margin (EBIT) for the
third quarter 2016. As a consequence of said profitability and in
line with the Company’s efforts to reduce its debt burden Avianca
decreased its total debt by $224.6 million over the last nine
months, resulting in an adjusted net debt to EBTIDAR multiple of
5.99x.
Avianca also made important progress related to its
organizational restructuring this quarter, eliminating the
complexity of our reporting structure and redefining upper and
middle management positions. Our new team looks forward to
addressing any other new challenges that may lie ahead.
Along these lines, it is with great pleasure that we announce
that Roberto Held Otero has joined Avianca Holdings as our new CFO,
and assumed his new position on November 1, 2016. Prior to joining
Avianca, Roberto was CFO of PROCAFECOL S.A., which markets premium
Colombian coffee and manages the Juan Valdez brand worldwide, where
he led and improved financial processes automation and efficiency.
Before that he spent over 13 years in senior capital markets
positions with Citigroup and the Bolsa de Valores of Colombia.
Given his considerable work experience and specific skillset in
this area, I am confident that Roberto will be an invaluable asset
to Avianca.
Gerardo Grajales, who led the Company’s Finance team for the
past 14 years, will now be heading Avianca’s new strategic business
unit. Said department will focus on developing and strengthening
Avianca’s different business units, such as LifeMiles, Avianca
Cargo, Deprisa, and Avianca Services among others. I’d like to take
this opportunity to thank Gerardo for his commitment and
achievements which have transformed Avianca into a strong, well
regarded and more profitable company- both domestically and
internationally.
Finally, as we prepare for the fourth quarter 2016 peak season,
we reconfirm our EBIT margin guidance set out at the beginning of
2016 of 5.5% - 7.5%. While we reaffirm our commitment to providing
Avianca's customers with best in class service, we also will
continue to focus on generating profitable growth for all of our
stakeholders.
Sincerely,
Hernán Rincón
Chief Executive Officer
Consolidated Financial and Operational 3Q-15
3Q-16 ∆ Vs. 3Q-15
Highlights(1)
ASK's (mm) 11,618 11,973 3.1% RPK's (mm) 9,441
9,997 5.9% Total Passengers (in millions) 7,373 7,609 3.2% Load
Factor 81.3% 83.5% 223bp Departures 75,603 76,404 1.1% Block Hours
139,882 143,668 2.7% Stage length (km) 1,021 1,026 0.4% Fuel
Consumption Gallons (000's) 119,525
123,834 3.6% Yield (cents) 9.5 8.8 -7.1% RASK (cents) 9.6
8.9 -7.7% PRASK (cents) 7.7 7.4 -4.6% CASK (cents) 9.0 8.2 -9.1%
CASK ex. Fuel (cents) 6.8 6.4 -4.9% CASK (Adjusted) (cents) 8.7 8.2
-6.0% CASK ex. Fuel (Adjusted) (cents) 6.5
6.4 -0.5% Foreign exchange (average) COP/US$ $
2,935.6 $ 3,249.0 10.7% Foreign exchange (end of period) COP/US$ $
3,121.9 $ 3,022.4 -3.2% WTI (average) per barrel $ 46.4 $ 44.9
-3.4% Jet Fuel Crack (average) per barrel $ 14.2 $ 9.6 -32.9% US
Gulf Coast ( Jet Fuel average) per barrel $ 60.7 $ 54.4 -10.3% Fuel
price per Gallon (including hedge) $ 2.17 $ 1.69
-22.1% Operating Revenues ($M) $ 1,116.8 $ 1,062.2 -4.9%
EBITDAR ($M) $ 212.9 $ 229.1 7.6% EBITDAR Margin 19.1% 21.6% 250bp
EBITDA ($M) $ 132.9 $ 149.8 12.7% EBITDA Margin 11.9% 14.1% 220bp
Operating Income ($M) $ 72.1 $ 83.4 15.7% Operating Margin ($M)
6.5% 7.9% 140bp Net Income ($M) $ 102.1 $ 37,8 -62.9% Net Income
Margin 9.1% 3.6% (558)bp EBITDAR (Adjusted) ($M) $ 222.6 $ 229.1
2.9% EBITDAR Margin (Adjusted) 20.4% 21.6% 118bp EBITDA (Adjusted)
($M) $ 142.6 $ 149.8 5.0% EBITDA Margin(Adjusted) 13.1% 14.1% 104bp
Operating Income (Adjusted) ($M) $ 81.8 $ 83.4 2.0% Operating
Margin ($M) (Adjusted) 7.5% 7.9% 36bp Adjusted Net Income ($M) $
65.2 $ 47.6 -27.0% Net Income Margin (Adjusted) 6.0%
4.5% (149)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 3Q 2016 Results
Third quarter 2016 was a strong quarter for Avianca; the Company
reached an operating income (EBIT) of $83.4 million, with an
operating income (EBIT1) margin of 7.9%; a 36 bps1 year on year
increase. These results were mainly driven by a 3.1% reduction in
total operating costs1 as the Company has begun benefiting from its
revised hedging policy; reducing expenses by approximately USD 30
million when compared to 3Q 2015. The Company has also generated
important efficiencies through cost cutting initiatives, as a
result maintenance expenses1 decreased 16.6% throughout the period.
Third quarter 2016 CASK ex-fuel1 therefore declined 0.5%, to 6.4
cents. This was partially offset by a 2.7% decline in total
revenues1, primarily driven by a 7.6% reduction in Non-Passenger
Revenues1. Passenger revenues decreased by only 1.7% as compared to
the same period last year.
Total operating revenues1 amounted to approximately $1.1 billion
during 3Q 2016. This represents a 2.7% year on year decrease,
partially due to a 1.7% decline in passenger revenue, a 7.1% yield
decline, as well as a 7.6% decrease in cargo and other revenues1.
This represents Avianca’s first quarter over quarter yield increase
since the second quarter 2014. Cargo and other revenue1 represented
17.1% of total revenues in the third quarter 2016. The latter was
primarily driven by a 1.7% decrease in average fare, as well as a
decrease in the total tons transported associated with lower import
volumes from North America to Colombia, Brazil and Ecuador.
The LifeMiles Loyalty Program continued to deliver strong
results during the 3Q2016, with an 11.7% increase in revenues as
compared to the same period of 2015. In terms of membership growth,
the quarter ended with more than 6.9 million members, which
represents an 8.9% year on year increase. During the same period,
the retail partnership program continued to expand, with a 6.7%
increase in the number of new commercial partners, to 303. Finally,
LifeMiles active co-branded cards ended the quarter with more than
520,000 cards, which represents a 22.3% year on year increase.
Avianca transported more than 7.5 million passengers in the
third quarter of 2016; a 3.2% year on year increase. Traffic
figures (RPKs) increased above capacity (ASKs) resulting in a
consolidated load factor of 83.5% the strongest since the
integration between AVIANCA and TACA. Therefore, routes to Europe
during September 2016 reached an average consolidated load factor
of 90.9%, and of 89.3% from Bogota to Buenos Aires, contributing to
the strong 15.9% traffic growth from home markets to South
America.
3Q 2016 operating expenses1 reached $978.8 million; 3.1% year on
year decrease. This was primarily driven by a 19.3% decline in Fuel
Expenses associated with lower jet fuel prices and changes in
Avianca´s hedging policy. Adjusted for cargo discount and for
comparison purposes, Sales and Marketing1 expenses decreased by
3.1% as compared to 3Q 2015. Further, Maintenance and Repairs
decreased 16.6% due to the reduction in fleet re-delivery
provisions as well as a decline in engine overhaul expenses. These
results were partially offset by a 7.5% increase in Salaries and
Wages as the Company adjusted for severance payments in line with
the organizational restructuring and had an increase in Ground
Operation expenses.
As part of the Company’s on-going fuel hedging strategy, a total
of 104.2 million gallons of fuel were hedged at the end of the
third quarter 2016, of which 58.1 million gallons correspond to
approximately 55% of the total expected volume to be consumed over
2016. The remaining volume represents approximately 5.0% of the
total expected fuel consumption from 2017 to 2018. Coverage levels
were set at $1.39 per gallon. During 2016, hedging expenses are
expected to range between $5 to $7 million per quarter, allowing
the Company to cap its hedging expenses in order to derive
additional benefits from lower fuel prices throughout the year.
In accordance with the Company’s fleet plan, Avianca took
delivery of one sharklet-equipped A319 and two new wide body B787-8
aircraft between July and September 2016. Avianca Holdings S.A. and
its subsidiaries therefore ended the quarter with a consolidated
operating fleet of 177 aircraft.
The Company recorded other non-operating expenses of $47.8
million for the 3Q 2016, compared to a non-operating income of $8.1
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. The Company
also recorded of $10.0 million in expenses related to the foreign
exchange non-cash translation adjustments, compared to a $43.9
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 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 $411.3 million. Including
short-term certificates and bank deposits, adjusted cash and cash
equivalents and available-for-sale securities (other current
assets) came in at $420.9 million, equivalent to about 10.3% of
revenues for the last twelve months. As of September 30, 2016 the
Company valuated its cash balances held in Venezuela at the latest
DICOM exchange rate of 658.9 VEF per 1.00 USD, resulting in a
cumulative loss of $4.9 million. Accordingly, the carrying amount
of cash balances held in Venezuela of $0.4 million have been
classified as cash and cash equivalents, which is expected to be
used over the next three months as part of the normal operations in
Venezuela.
In line with the Company’s deleveraging strategy, as of
September 30, 2016, Avianca reduced its debt burden by $224.6
million. As such Avianca´s leverage position (Net Adjusted debt to
EBITDAR) decreased to 5.99x, from 6.79x on December 31, 2015.
Consequently, the Company’s total long term debt amounted to $2.85
billion, while total liabilities came in at $4.94 billion.
Full Year 2016 – Outlook
The Company will continue to execute cost saving initiatives and
revenue enhancing projects that are expected to yield results over
the next two years. As such, the Company maintains its guidance for
2016 as follows:
Outlook Summary Full Year 2016 Total
Passengers Increase from 2015 3.0% - 5.0% Capacity (ASK'S)
Increase from 2015 3.0% - 5.0% Load Factor 78.0% - 80.0% EBIT
Margin 5.5% - 7.5%
Analysis by ASKs (in U.S.
cents)
3Q 2015 3Q 2016 Var%
Operating revenue: Passenger 7.71 7.35 -4.6% Cargo and other 1.91
1.52 -20.4%
Total Operating revenues
9.61 8.87 -7.7% Operating expenses: Flight
Operations 0.11 0.12 10.5% Aircraft fuel 2.24 1.75 -21.7% Ground
Operations 0.86 0.93 7.4% Aircraft rentals 0.69 0.66 -3.8%
Passenger services 0.32 0.33 3.2% Maintenance and repairs 0.80 0.58
-27.5% Air traffic 0.42 0.47 13.1% Sales and marketing 1.37 1.09
-20.7% General. administrative. and other 0.30 0.27 -10.7%
Salaries. wages and benefits 1.36 1.42 4.3% Depreciation and
amortization 0.52 0.55 5.9%
Total operating
expense 8.99 8.18 -9.1%
Operating income 0.62 0.70
12.2% Total CASK 8.99 8.18 -9.1% CASK ex. Fuel
6.76 6.43 -4.9% Total Cask (Adjusted) 8.69
8.18 -6.0% CASK ex. Fuel (Adjusted) 6.46 6.43
-0.5%
Yield 9.48 8.81
-7.1%
Non-IFRS Financial Measure
Reconciliation
In USD Millions
3Q2015 3Q2016 Var% Net
Income as Reported 102.1 37.8 -62.9% Special items (adjustments):
(-) Gain on sale of property and equipment (0.3) - (-) Derivative
Instruments 2.7 0.3 (-) Foreign exchange gain (loss) 43.9
(10.0)
Net Income Adjusted 55.8
47.6 -14.7%
Reconciliation of Operating Cost per
ASK Excluding Special Items
In US Cents
3Q2015 3Q2016 Var% Total
CASK as reported 9.0 8.2 -9.1% Aircraft Fuel 2.2 1.8 Total CASK
excluding Fuel as reported 6.8 6.4 -4.9% Gain on sale of property
and equipment (0.0) -
Total CASK
excluding Fuel and special items 6.8 6.4
-4.9%
Adjusted EBITDAR
Calculation excluding special items
in US$ Millions
3Q2015
3Q2016
Var%
Operating Revenues as Reported1 1,091.9 1,062.2 Operating Expenses1
760.1 769.3 Aircraft Fuel 259.7 209.5
Operating Income 72.1 83.4
15.7% (+) Foreign Object Damage (FOD) 2.0 (+)
Maintenance Provisions Fee Schedule update 7.7
Operating Income Adjusted 81.8
83.4 Margin 7.5% 7.9% (+) Depreciation and
amortization 60.8 66.4
Adjusted
EBITDA 142.6 149.8
5.0% Margin 13.1% 14.1% (+) Aircraft Rentals
80.0 79.3
Adjusted EBITDAR
222.6 229.1 2.9% Margin 20.4%
21.6%
Interim Condensed Consolidated Statement of Comprehensive
Income for the Nine-month period ended September 30. 2015 and 2016
(Unaudited USD thousands)
2016 2015
Operating revenue: Passenger $ 2,413,119 $ 2,623,595 Cargo and
other 620,197 670,248
Total
operating revenue 3,033,316 3,293,843 Operating
expenses: Flight Operations 42,742 46,203 Aircraft fuel 565,903
797,703 Ground operations 314,398 305,408 Aircraft rentals 235,809
242,306 Passenger services 111,072 109,181 Maintenance and repairs
212,190 246,124 Air traffic 156,023 149,355 Sales and marketing
409,129 474,325 General. administrative. and other 122,993 120,519
Salaries. wages and benefits 488,599 502,705 Depreciation.
amortization 193,279 170,101
Total
operating expenses 2,852,137
3,163,930 Operating profit
181,179 129,913 Other
non-operating income (expense): Interest expense (131,765 )
(121,292 ) Interest income 10,666 14,969 Derivative instruments
4,785 4,212 Foreign Exchange (39,836 ) 71,669
Profit before income tax 25,029
99,471 Income tax expense- current (19,582 )
(28,883 ) Income tax expense- deferred 12,382
42,138 Total income tax expense (7,200 ) 13,255
Net profit for the period $ 17,829
$ 112,726
Interim Condensed Consolidated Statement of Financial
Position (in USD thousands)
As of As of September 30.
December
2016
31. 2015
(Unaudited) (Audited)
Assets Current assets: Cash and
cash equivalents 411,151 479,381 Restricted cash 11,157 5,397
Accounts receivable. net of provision for doubtful accounts 312,982
279,620 Accounts receivable from related parties 25,434 23,073
Expendable spare parts and supplies. net of provision for
obsolescence 79,120 68,768 Prepaid expenses 48,174 45,708 Assets
held for sale 5,112 3,323 Deposits and other assets 148,737 130,724
Total current assets 1,041,867 1,035,994
Non-current assets:
Available-for-sale securities 118 793 Deposits and other assets
158,272 246,486 Accounts receivable. net of provision for doubtful
accounts 96,735 59,713 Intangible assets 407,363 413,766 Deferred
tax assets 23,692 5,847 Property and equipment. net 4,540,392
4,599,346 Total non-current assets 5,226,572 5,325,951
Total
assets 6,268,439 6,361,945
Interim Condensed Consolidated Statement of Financial
Position (in USD thousands)
As of As of September 30,
December 31, 2016 2015 Liabilities and
equity Current liabilities: Current portion of long-term
debt 400,296 412,884 Accounts payable 488,749 480,592 Accounts
payable to related parties 5,667 9,449 Accrued expenses 123,332
118,192 Provisions for legal claims 18,031 13,386 Provisions for
return conditions 51,203 52,636 Employee benefits 35,769 32,876 Air
traffic liability 526,403 433,575 Other liabilities 13,582 12,691
Total current liabilities 1,662,032 1,566,281
Non-current
liabilities: Long-term debt 2,848,147 3,060,110 Accounts
payable 2,968 3,599 Provisions for return conditions 125,931
109,231 Employee benefits 173,422 127,720 Deferred tax liabilities
19,208 13,475 Air traffic liability 92,364 93,519 Other liabilities
non-current 15,161 15,375 Total non-current liabilities 3,277,201
3,423,029
Total liabilities 4,940,233
4,989,310 Equity: Common stock 82,600 82,600
Preferred stock 42,023 42,023 Other capital reserve 646 —
Additional paid-in capital on common stock 234,567 234,567
Additional paid-in capital on preferred stock 469,273 469,273
Retained earnings 463,353 507,132 Revaluation and other reserves
18,394 18,394
Total equity attributable to the Company
1,310,210 1,353,989 Non-controlling interest 17,996
18,646
Total equity 1,328,206 1,372,635
Total liabilities
and equity 6,268,439 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).
1As of the 3Q of 2016 the company improved the classification
for some of its accounts in its ERP system which have no effect on
nominal profitability and that for comparison purposes affect Cargo
& Others as well as sales and Marketing.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161108005927/en/
Avianca Holdings S.A.Investor Relations
Officeir@avianca.com
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