Avianca Group International (AVIANCA) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 EBITDAR/EBITDA of $355 million, up over 60% year-over-year, with a 25.5% margin, the highest for a comparable quarter.

• Network optimization shifted capacity from domestic Colombia to international routes, launching six new international routes and reducing domestic Colombia capacity by over 14% year-over-year.

• Generated $163 million in cash, ending the quarter with $1.35 billion in liquidity (24% of LTM revenue), including a $200 million undrawn revolver.

• Business units, including cargo, LifeMiles, and Wamos, delivered strong results, with cargo revenue up over 15% and LifeMiles third-party billings/cash EBITDA up over 43% year-over-year.

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

Financial highlights

• Total operating revenues reached $1,396 million, up 18.7% year-over-year, with passenger revenue up 10% and cargo revenue up over 15%.

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

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

• Cash balance at quarter-end was $1.35 billion, with total liquidity at 24% of LTM revenue.

• Net debt decreased due to strong cash flow and lease amortizations, despite a slight gross debt increase from aircraft financings.

Outlook and guidance

• Targeting net leverage below 2.5x by year-end, expecting to end 2025 between 2.6x and 2.7x if current performance continues.

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

• 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.

• Expecting continued improvement in load factors, aiming for mid-80s% as capacity is absorbed over the next 9–15 months.