Avianca Group International (AVIANCA) Q1 2026 earnings summary

Executive summary

• Delivered strong Q1 2026 results with robust revenue and margin growth, highlighting resilience and earnings power post-Avianca-GOL consolidation.

• Strategic initiatives included adding new aircraft, expanding board governance, and delisting GOL from the Brazilian exchange.

• Premium customer initiatives and loyalty program growth drove revenue and brand strength.

• Resumed and increased operations in Venezuela, and implemented mitigation measures for fuel cost pressures.

• Net income increased 26.2% to $208 million, with net margin improving to 7.8%.

Financial highlights

• Adjusted EBITDA/EBITDAR grew 34% year-over-year to $792 million, with margin expansion to 29.7%.

• Liquidity at quarter-end was $2.3 billion (23% of LTM revenues); net debt to LTM EBITDAR improved to 3.1x.

• Cargo and other businesses generated $450 million revenue, up 17% year-over-year.

• EBIT increased 76% to $305 million; EBIT margin rose to 11.4%.

• Operating costs rose 12.1% year-over-year, mainly due to higher fuel, salaries, and depreciation.

Outlook and guidance

• Expect to reach 100% fuel cost recapture by year-end, with 60% average recapture for 2026.

• CapEx for 2026 and 2027 projected at $600–$650 million annually due to engine maintenance timing.

• Flexible capacity management to align with demand and fuel price volatility.

• Management expects continued quarterly fluctuations due to seasonality, with stronger demand in Q3 and Q4.