Avianca Group International Limited has posted robust financial results for the third quarter of 2025, driven by record profitability and a standout performance in its cargo business.
The company delivered $411 million in EBITDAR, a 15 percent year-over-year increase, achieving a 27.2 percent margin—marking the fourth consecutive quarter of record EBITDAR and margin performance.
Cargo Division Delivers Strong Growth
Avianca Cargo remained a key engine of the group’s financial strength. The division generated $157 million in revenue, up 14.1 percent from the same period in 2024, supported by stable market conditions and sustained demand for airfreight across the Americas.
The cargo unit also expanded its operational capabilities, adding two A330 Passenger-to-Freighter (P2F) aircraft. With these additions, Avianca Cargo now operates nine A330 freighters, enhancing service on high-demand regional trade lanes.
Management attributed the cargo growth to targeted capacity expansion, optimized network deployment, and a stabilizing rate environment—even as global yields show pressure in some markets.
Passenger and Group Performance Remains Solid
The broader group reported $1.509 billion in operating revenues, up 12.8 percent from Q3 2024. Operating costs rose 13.3 percent to $1.290 billion, though Avianca noted strong cost control in several areas, especially fuel.
Passenger fuel CASK declined 9.9 percent year-on-year. Total passenger CASK improved slightly to 5.7 cents. Non-fuel CASK increased modestly to 3.9 cents.
Avianca carried 9.7 million passengers during the quarter, maintaining stable volumes. Capacity (ASKs) rose 6.8 percent, while RPKs increased 7 percent. The passenger load factor remained steady at 82.9 percent, though yields dipped 3.5 percent amid competitive pricing and ongoing network optimization.
The combination of cost discipline and operational execution drove net income to $101 million, a 40.1 percent increase versus Q3 2024.
Ratings Upgrades and Strengthened Balance Sheet
Reflecting the airline’s improved financial standing, both Moody’s and Fitch upgraded Avianca’s credit ratings to B1 and B+, respectively, each with stable outlooks.
Avianca ended the quarter with $1.361 billion in liquidity, including $1.161 billion in cash and $200 million in undrawn revolving credit. The group’s net leverage ratio improved to 2.8x, down from 2.9x in the previous quarter.
Network Expansion and Product Enhancements
The airline continued investing in its network and hubs, rolling out major redesigns in Bogotá, San Salvador, and MedellÃn. These efforts resulted in:
23 percent more markets connected through its hubs 11 percent more weekly connections for Winter 2025 compared with Winter 2024
Avianca also expanded its Business Class offering to 54 additional routes, strengthening its premium portfolio in Colombia, El Salvador, Ecuador, and regional markets.
LifeMiles Posts Strong Loyalty Growth
The airline’s loyalty program, LifeMiles, delivered a notable 72 percent increase in third-party cash EBITDA, reaching $77 million. Growth was supported by higher co-branded credit card usage, increased redemption activity, and strong engagement with commercial partners.