Avianca Holdings had a net loss of $ 475.940 million in the first half of this year, compared to $ 31.972 million in the same period last year, according to a balance sheet released Thursday by the company.
Losses in the second quarter amounted to $ 408.028 million, up $ 67.9 million in January, February and March, reaching $ 475.940 million.
Avianca Holdings's operating income was $ 1,100 million in the second half of 2019, down 6.9% from the first three months of the year.
Operating profit, measured by the Ebit metric, was $ 36 million, while profit before interest, taxes, depreciation and amortization (Ebitda) was $ 116.4 million, with a margin of 10.5%, company details.
'Operating expenses showed a strong increase due to the deterioration of the carrying value of the fleet classified as available for sale (10 Embraer 190, 10 A318 and 4 A320). Given that the expected value of the sale will be lower than that recorded in the company's books, by accounting standards this difference is considered to be a greater expense in the depreciation account, which increases the company's expenses without assuming cash , ”Explained the multinational company.
Avianca Holdings, on the other hand, carried 7.5 million passengers in the second quarter of this year, an increase of 2.7% over the same period last year.
"The priority of the company is to have 'better results' and for that they have made' difficult decisions' which they consider to be 'mandatory for the change of course' of the company, as well as' to make it competitive, cost-effective and with the most good service standards, "said Avianca Holdings President, Anko van der Werf.
This means borrowing 81.1% in April, May and June, the months in which the company increased its capacity, measured in available chairs per kilometer, by 4.7%. Paid passengers increased by 4.1% per kilometer.
"The management of the company has the priority to improve the number we receive and to strengthen the confidence of our customers and the market. We have focused our efforts on realigning debt and consolidating our capital structure, while adjusting the operation and improving service delivery. During the weeks we are with the company, we redesigned the network, starting with the cancellation of 25 unprofitable routes; We sold 24 aircraft from our fleet and continued to sell non-strategic businesses, "said Avianca Holdings CFO Adrian Neuhauser.
This is part of Avianca 2021's strategy, which seeks to enhance the company's competitiveness by applying financial corrections, operational optimizations, fleet simplification and the sale of non-strategic assets.
The multinational company also noted that United Airlines and Kingsland Holdings, its "strategic allies," have reiterated their funding proposal of up to $ 250 million.
Similarly, Avianca on Wednesday announced an "exchange offer" for a $ 550 million bond change owed in 2020 to others guaranteed that "it will automatically be extended for another three years when funding ends United Airlines and Kingsland Holdings. "
The airline has been plunged into changes to its administrative structure, which included the May resignation of its chairman, Brazilian businessman Herman Efromovich, as a result of an agreement with US company United Airlines.
On May 24, United decided to exercise its rights in Avianca Holdings on the basis of a $ 456 million loan it granted in November 2018 to BRW Aviation, a company in the Sinergy majority shareholder of Avianca, in which they were guaranteed his actions at a Colombian company.
This operation cemented the position of Kingsland Holdings Limited, the group's second shareholder, which decided to renew the company's board of directors, which has since been chaired by Roberto Cree, a Salvadoran businessman at Taca Group.
Avianca Holdings is comprised of Avianca and Tampa Cargo (Colombia), Aerogal (Ecuador) and the companies of Central America and Peru based Taca International Airlines Group.
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