Avianca Group's cargo revenue dropped by 8.3% in 2024 first quarter
In Q1 2024, Avianca Group recorded a cargo revenue of $152 million and a net income of $13 million.
Avianca Group, one of Latin America's largest airlines with 147 routes and 710 daily flights, published its financial report for the first quarter 2024. The company's cargo revenues decreased by 8.3% from the same quarter of the previous year due to continued market softening and industry freighter capacity remaining above prepandemic levels.
Despite this, Avianca's cargo revenues were $152 million, ahead of the company's business plan. Additionally, Avianca Cargo dominated the flower market from Colombia to the US during Valentine's season, transporting 18,000 tonnes of flowers in over 300 flights.
Avianca Cargo continues progressing rapidly with plans to add more freighters to its fleet. The Colombia-headquartered cargo carrier will add three more freighters to its fleet this year and in 2025. The first of the three A330 converted freighters will join the fleet in June this year, followed by the second before the end of this year. The third freighter will join the fleet by the beginning of 2025. Gabriel Oliva, Chief Operating Officer of Avianca Group and CEO of Avianca Cargo, confirmed this update to The STAT Trade Times.
Avianca Group also reported $272 million in EBITDAR (earnings before interest, taxes, depreciation, amortisation and restructuring or rent costs) with a margin of 21.5% during Q1 2024, up 16.3% from the same period in 2023. EBITDAR is a non-GAAP financial tool used to measure a company's financial performance.
"In the first quarter, we introduced a new, more simplified and flexible fare scheme that allows our customers to fly according to their needs, and we continued to expand our network and improve our connectivity with the launch of new routes, including the reopening of Bogota-Paris, after 20 years, as well as Bogota-Montreal," said Frederico Pedreira, Chief Executive Officer at Avianca, in an official release.
Avianca, a member of the Star Alliance, reported a 26.1% increase in consolidated capacity. The airline's load factor was 81.4%, 1.2 percentage points higher than the previous year's period.
Avianca's Q1 2024 total operating revenue rose 16.4% to $1,265 million, despite a 15.2% rise in operating expenses. Additionally, Avianca's first reconfigured B787, with 16.4% more cabin capacity, began operating in April, and the company plans to reconfigure its 12 remaining widebody aircraft by year-end.
