South American airline group Avianca has reported better-than-expected second quarter 2023 results, showing a rise in EBITDAR to $271.3m.
This was higher than the projected EBITDAR (which stands for earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs) for the period, which was $88.7m.
“Strong passenger revenue performance” during the quarter resulted in a 27.4% higher passenger revenue per available seat kilometre than had been forecast.
The ‘Passenger Cost per Available Seat Kilometre’, excluding fuel, was 14.6% lower than the previous year.
‘Seasonally challenging quarter’
“We continued our strong execution on the business plan in a seasonally challenging quarter,” said Adrian Neuhauser, Avianca’s chief executive officer.
“Avianca completed its narrowbody densification program in record time, which further optimised our cost efficiency, enabled increased capacity allocation, and continued to reduce our per passenger carbon footprint.
“Our commitment to regional connectivity led us to launch eight new routes, to now offer 144 routes in 71 destinations, while strengthening Avianca’s customer experience – Cirium recognised Avianca as the world’s most punctual airline for both May and June.
“I would like to thank our stakeholders for their collective power in driving our success. I’m proud of the tremendous job the Avianca team has done navigating our transformation and would like to recognise their continued commitment to delivering a safe, standard, and reliable service, which is resonating in our results.”
Passenger revenues increase
Passenger revenues during the quarter reached $862.8m reflecting a 19.5% year on year increase, driven by robust market demand.
Avianca ended the second quarter 2023 with an operating passenger fleet comprised of 122 aircraft: 109 within the Airbus 320 family and 13 Boeing 787.
The group continued executing its point-to-point network strategy, adding four new destinations, and completing nine point-to-point routes year to date.
In 2022, Avianca carried 24.6 million passengers with the operation of more than 187,000 flights.
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