Avianca Group International (AVIANCA) Q2 2026 earnings summary

Executive summary

• GOL successfully emerged from Chapter 11 in June 2025, with ABRA consolidating its results since then.

• Expanded global network via partnerships with Air Canada and Etihad Airways, and regulatory approval for the SKY business combination in Brazil, Chile, and Peru.

• Strengthened fleet strategy with agreements for up to 45 Embraer E195-E2 aircraft and 100 CFM LEAP-1A engines.

• Maintained a leading cost position and mitigated a $445 million year-on-year fuel cost increase through commercial recapture, capacity management, hedging, and cost savings.

• Premium and loyalty offerings expanded, including Magno for Avianca and Insignia by GOL.

Financial highlights

• Adjusted EBITDAR for Q2 2026 was $195 million, down 62% year-over-year, with a 7.5% margin.

• Revenue increased 18% year-over-year to $2.6 billion.

• Net loss widened to $766 million from $178 million year-over-year; EBIT at -$365 million vs -$47 million year-over-year.

• Liquidity remained strong at over $2 billion, representing 20% of LTM revenues.

• Net debt to EBITDAR rose sequentially from 3.1x to 3.7x due to EBITDAR compression.

Outlook and guidance

• Management expects continued fare increases and resilient demand, with opportunities to further improve yields.

• Targeting a 60% fuel cost pass-through for March–December 2026.

• Continued disciplined capacity growth and network expansion, with 8.4% year-over-year ASK growth and ongoing SKY integration.

• Liquidity and disciplined cost management remain priorities for the remainder of the year.

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