Avianca reduces ‘average fares by 4.2% given the macroeconomic weakness’ in several markets

    Avianca Holdings attributed (15-May-2019) the USD18.5 million operating income (EBIT) in 1Q2019, with a 1.6% EBIT margin in 1Q2019 primarily to a 1.5% year-on-year decrease in total operating revenues as Latin American currencies devalued against the USD and average fare reduced by 4.2% resulting in a 6.2% reduction in passenger yields, reaching USD 8.6 cents. Avianca stated: “Avianca decided to reduce average fares by 4.2% this quarter given the macroeconomic weakness of several Latin American currencies”. Passenger revenues reduced by 0.1% while cargo and other revenues reduced by 8.4%, primarily due to the termination of a commercial agreement with Etihad and a reduction in chartered cargo operations. These effects were partially offset by an increase in regular cargo revenues due to a 2.4% increase in transported tons. Cargo and other revenues represented 15.7% of total revenues in the quarter. [more – original PR]