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, up 26%, and net income of $331 million, reversing a $1.25 billion loss in 2024.

• Completed GOL's Chapter 11 restructuring, making ABRA the controlling shareholder and consolidating financials from June 2025, strengthening the group's financial foundation.

• Achieved $180 million in cumulative synergies through coordinated fleet, network, commercial, and loyalty strategies, and expanded fleet to over 300 aircraft and 375 routes.

• Announced agreement-in-principle for a business combination with SKY Airline, expanding presence in Chile and Peru and enhancing regional connectivity.

• Enhanced leadership structure, continued progress in sustainability and customer experience, including premium product upgrades and expanded lounges.

Financial highlights

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

• Adjusted EBITDAR grew 26% to $2.7 billion, with a margin of 27.4%, up 321 basis points year-over-year.

• Net income for 2025 was $331 million, reversing a $1.25 billion loss in 2024.

• Liquidity ended at $2.5 billion, representing 25% of LTM revenues, up 20.1% year-over-year.

• Net debt reduced by 16.6% year-over-year to $8.8 billion, with net leverage down from 5x to 3.3x.

Outlook and guidance

• Capacity plans for 2026 are modest, with GOL focusing growth in Rio and Salvador, and Avianca maintaining mid-single-digit growth, mainly through widebody deployment.

• No major network restructuring planned; tactical capacity reductions possible if demand softens due to higher fuel prices.

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

• Monitoring demand elasticity and economic conditions closely, with pricing increases being passed through to offset fuel costs.

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