Avianca Group International (AVIANCA) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 EBITDAR/EBITDA of $355 million, up 61% year-over-year, with a 25.5% margin, the highest for a comparable quarter.

• Generated $163 million in cash, ending the quarter with $1.35 billion in liquidity (24% of LTM revenue).

• Network optimization and business unit performance, including Cargo, LifeMiles, and Wamos, contributed to strong results.

• Carried 8.8 million passengers across 172 routes to 83 destinations, the most extensive network in company history.

Financial highlights

• Total operating revenues rose 18.7% year-over-year to $1,396 million, with passenger revenue up 10% and cargo revenue up 16.3%.

• EBIT was $133 million, with an operating margin of 9.5%, and net loss narrowed to $16 million.

• Cash balance at quarter-end was $1,152 million, with total liquidity at $1,352 million.

• Net leverage improved to 2.8x EBITDA/EBITDAR, down from 3.2x in the previous quarter.

Outlook and guidance

• Net leverage expected to be between 2.6x and 2.7x by year-end, targeting below 2.5x.

• Full-year CapEx projected at $450 million+, with over 80% allocated to engine overhaul.

• Announced three new international routes for the second half of 2025, including new destinations in Brazil and Mexico.

• Continued focus on network optimization and premium revenue growth through Business Class Americas expansion.