Recognizing our role as value drivers for the business and financial sectors, we economically aim to:
- Optimize and simplify operation costs and optimize the company’s capital structure.
- Develop strategies to increase income and productivity.
- Optimize operational processes.
- Continuously enhance risk management.
Regarding what was mentioned before, we rely on a Corporate Governance structure that allows us to guarantee a management exercise with righteousness to address the duties of stakeholders, investors, creditors, employees, clients and other economic agents.
At the close of 2013 business year, Avianca Holdings S.A. accounts showed an increase of 8,0% income growth, from USD 4.269,7 million to USD 4.609,6 million. Operational costs -excluding the fuel effect- increased 8,0%, from USD 2.683,3 million to USD 2.898,9 million. This value includes both operational growth and expenditures regarding fleet upgrading. In line with routes and frequencies increases, as in international reference prices, fuel cost went up to USD 1.325,8 million, 1,6% higher than in 2012.
Net income for the year 2013 climbed to USD 248,8 million, which shows an increase of USD 210,6 million compared to the net profit recorded in 2012. This result includes a net effect earning in foreign exchange of USD 23,5 million and shows the consolidation of the improvements implemented in the different markets where the company operates.
Integrated airlines improve their markets positions
In order to offer more coverage and connectivity, in 2014 the Holding -through their airlines- increased seats offering for the international market via opening new routes, such as: Bogota - Cancún, San Salvador - Chicago, San Salvador - Medellín, and Bogotá - San Juan de Puerto Rico, among others. Also important adjustments were done for the local Colombian market offering, giving it a new impetus to the commercial and touristic dynamic of each country and the region.
As a result of strategies aimed at positioning the service in strategic niches and capacities adjustment, the airlines from the group recorded a passenger mobilization of 24’625.062 in the period of January-December 2013, which shows a 6.6% increase in travelers moved compared with 2012 - which amounted for a passenger mobilization of 23’092.533-. The ASK’s (Available Seats per Kilometer) climbed to 38,762 million, recording a 6.1% increase compared with the year before, amounting a load factor of 80.5%.
Colombia, Peru and Ecuador local market share
From January to December 2013, the total number of passengers in Colombia, Peru and Ecuador local routes climbed to 14’292.302, recording a 7.8% increase compared with the number of passengers moved in those markets in 2012 (13’255.502).
International aviation market share
From January to December 2013, the number of passengers moved by the Holding airlines in international routes climbed to 10’332.760, 5.0% higher than the 9’837.031 passengers moved in 2012. The capacity measured in ASK’s grew 4.2%.
In 2013 the company through its subsidiary airlines continued fulfilling its fleet innovation strategy. In that period, 12 flight equipment were included: one Airbus A330-200, five Airbus of the A320 family, one Airbus A319, one ATR 42 and four ATR 72-600.
At the same time, and following resources optimization strategy and offering matching, one TACA International Airbus A320 was transfer to Avianca S.A.
On July an incorporation process of ATR 72-600 aircrafts began, that replaced the Fokker 50 fleet. The ATR72-600, upgraded with 68 seats, are the latest generation aircrafts that allow substantial improvements in comfort for our passengers, at the same time the company benefits of its high performance and of the significant efficiencies in fuel consumption and running costs.
For December 2013, airlines related to the Holding had 164 aircrafts belonging to the Fokker 50, Cessna, ATR42, ATR72, Embraer and Airbus families. From these, 150 were operating by the end of the period.
Destinations, routes network and alliances
We strengthened the joint network using direct operations point-to-point and through links between own connection centers. In this way we accomplished the implementation of more than 4,865 flights per week to more than 98 destinations in 26 countries. The connection offer through five continents was reinforced with the offering of hundreds of destinations operated through trade agreements (code-sharing and interlining) with other international established airlines and also with the route network of the airlines members of Star Alliance.
In 2013 we continued consolidating the three airlines passengers’ connections centers of the Holding in: Bogotá, Colombia; San Salvador, El Salvador; and Peru, Lima. Schedules and connection times enhancements between routes of one and other airline, resulted in a better occupancy and in the optimization of the users travel experience in routes that included different trips throughout the American continent to Spain.
The operation in the Bogota’s Connection Center amounted for 3,059 weekly departures to 24 cities in Colombia, 5 in North America, 10 in South America, 12 in Central America, Mexico and the Caribbean, and 2 in Europe, connecting hundreds of passengers of domestic and international flights with different destinations in these regions.
San Salvador, El Salvador
Using the San Salvador hub more than 725 weekly departures were operating from and to 11 destinations in North America, 6 in South America, 12 in Mexico, Central America, and the Caribbean.
The hub located at Peru’s capital operates 527 weekly departures to 15 points in South America, 5 in Mexico, Central America and the Caribbean, 1 in North America and 9 domestic destinations.