Avianca Holdings attributes 10% operating income margin to record load factors and strong traffic

    Avianca Holdings attributed (26-Feb-2018) a 9.8% operating income margin (EBIT) in 4Q2017 to a 15.2% increase in total operating revenues as Avianca Holdings registered record load factors and strong passenger traffic as well as ongoing yield recovery. Passenger revenues increased by 18.5% while non-passenger revenues increased 3%, in part due to higher revenues from frequent flyer programme redemption and other services. Non-passenger revenues was partially offset by an increase in operational expenses, primarily driven by higher fuel costs and a 206.5% increase in flight operations expenses resulting in part from increase in wet leased aircraft as well as additional costs incurred due to pilot training, which are the result of the 40 day pilot strike occurred in 4Q2017. [more – original PR]