Avianca Group International (AVIANCA) Q4 2025 earnings summary

Executive summary

• Pro forma 2025 revenue reached $9.7 billion, up 11.1% year-over-year, with adjusted EBITDAR of $2.7 billion (27.4% margin, +321 bps), and net income of $331 million, reversing a $1.25 billion loss in 2024.

• GOL's restructuring was completed, emerging from Chapter 11 with $1.9 billion exit financing, and its results consolidated from June 2025, strengthening the group's financial foundation and competitiveness.

• Strategic integration of Avianca, GOL, and Wamos drove synergy realization ($180 million), improved governance, expanded fleet (over 300 aircraft), and network (375 routes, 70 million passengers annually).

• Enhanced customer experience with expanded premium offerings, new lounges, business class rollout, and continued progress in sustainability and brand loyalty.

• Announced agreement-in-principle for a business combination with SKY Airline, expanding presence in Chile and Peru, pending regulatory approval.

Financial highlights

• Total operating revenue grew 11.1% to $9.7 billion, with passenger revenue up 7.9–8% and cargo/other revenue up 31.3%.

• Adjusted EBITDAR grew 26% to $2.7 billion, margin improved to 27.4% (+321 bps YoY), and Q4 margin reached 30.6%.

• Net income was $331 million, reversing a $1.25 billion loss in 2024.

• Liquidity ended at $2.5 billion (25% of LTM revenues), up 20.1% YoY; net debt reduced to $8.8 billion, net leverage down to 3.3x from 5x.

• Cargo revenue rose 31.3% to $1.6 billion, and loyalty programs reached 46 million members, up 20.9%.

Outlook and guidance

• Monitoring fuel price volatility closely, with hedges in place for 50% of fuel needs through May and additional coverage through August 2026.

• Capacity growth for 2026 will be modest, with GOL focusing on Rio and Salvador, Avianca maintaining mid-single-digit growth, mainly via widebody deployment.

• Pricing increases of up to 30% in Brazil and 10% in Colombia are being implemented to offset fuel costs, with ongoing assessment of demand elasticity.

• Focus remains on sustainable growth, network expansion, and unlocking long-term value, supported by ongoing improvements in fuel efficiency and emissions management.

• Continued deleveraging and strong liquidity expected to support future growth.