Avianca Holdings S.A. (Avianca) (Bogota) for the third quarter of 2013 reported a consolidated adjusted net income of $99.1 million (all amounts in US dollars) excluding FX effects related to liabilities denominated in Colombian Pesos and on the gain on sale of assets. This represents an increase of 151.3% over the same period in 2012. Avianca´s adjusted net profit margin increased by 450 basis points reaching 8.5%. Including the aforementioned effects on net income, Avianca Holdings S.A. and its subsidiaries generated a net income of $39.9 million.
Operating revenue came in at $1.182 million, representing an increase of 9.6% over the same period of 2012. Said increase is the result of a rise of 9.4% in passenger income resulting from a growth of 3.5% in carried passengers. Cargo and other revenues grew by 10.9%. This increase is mainly driven by the cargo and loyalty program business unit.
Revenue per Seat Kilometer (RASK) grew 3.6% whereas the Cost per Available Seat Kilometer (CASK) in 3Q 2013, grew from USD$10.3 cents to USD$10.4 cents, an increase of 1,5% with respect to the same period in 2013.
EBITDAR (earnings before interest, tax, depreciation, amortization and aircraft rentals) increased 23.1% with respect to 3Q 2012. The EBITDAR margin reached 20.1%.
Operating income (EBIT) for 3Q 2013 rose to $132.2 million, a 32.2% increase with respect to the $100.0 million reached in the same period in 2012. The operating margin in 3Q 2013 came in at 11.2%, increasing by 1.9pp with respect to 3Q 2012. Said rise was generated by an increase in operating revenue as well as by cost control measures.
Capacity, measured in ASKs (Available Seats per Kilometer) grew by 5.87% throughout 3Q 2013. This growth is driven by the expansion of Avianca’s operations in its core markets, the incorporation of larger aircraft as well as an improvement in operating cycles of 1.1%. Traffic measured in RPKs (Revenue Passenger Kilometer) grew 5.9%, resulting in a Load Factor of 82.0% representing an increase of 20 basis points with respect to the Load Factor of 3Q 2012.
In accordance with the fleet renovation and modernization plan, between July and September 2013, the company through its subsidiary Avianca S.A., took delivery of one Airbus A320 aircraft equipped with Sharklets (see above), one ATR 72-600 and one A330-200 freighter. As a result, Avianca Holdings S.A. subsidiaries ended the quarter with a consolidated operating fleet of 154 aircraft.
With these third quarter results, Avianca Holdings S.A. reports a consolidated net income for the last 9 months of $183.4 million, reaching accumulated net margin of 5.4% year to date.
During the remainder of 2013, the company expects to continue with a capacity expansion in its key markets, as a result the company forecasts ASK growth between 7% and 8% for the full year 2013 compared to 2012. In terms of passenger traffic, the company expects a sustained growth during the remainder of 2013. Passenger numbers are expected to increase between 9% and 10% for the full year 2013 and as a result the load factor should stand between 79% and 80%.
Avianca Holdings S.A. is an investment firm that serves as an instrument for the execution of the shareholders agreement which resulted in the integration process known as AviancaTaca and acts as the controlling company for the integrated operation of various airlines that operate both domestically and internationally: Aerovías del Continente Americano S.A. Avianca (Avianca), Tampa Cargo S.A. incorporated in Colombia, Aerolíneas Galápagos S.A. Aerogal incorporated in Ecuador, and the companies that make up the TACA Group: TACA Internacional Airlines S.A., incorporated in El Salvador; Líneas Aéreas Costarricenses S.A., LACSA, incorporated in Costa Rica, Trans American Airlines S.A. TACA Peru incorporated in Peru, Servicios Aéreos Nacionales S.A., SANSA incorporated in Costa Rica, Aerotaxis La Costeña S.A., incoporated in Nicaragua and Isleña de Inversiones C.A. de C.V. ISLEÑA incorporated in Honduras.
Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. The pictured Airbus A320-233 D-AXAS (msn 5840) was handed over to Avianca (Colombia) as N603AV on November 5.