Avianca Records Outstanding Q3 2025 Financial Results with Significant Growth

Avianca Reports Exceptional Financial Performance in Q3 2025

On December 2, 2025, Avianca Group International Limited (AGIL) revealed its impressive financial results for the third quarter of 2025, achieving an EBITDAR of $411 million, equating to a margin of 27.2%. This represents a significant 15.5% increase from the same period last year, marking the fourth consecutive quarter of record EBITDAR performance for comparable times.

Key Highlights of Q3 2025

During the third quarter, Avianca notably increased its operating capacity, measured in Available Seat Kilometers (ASKs), by 6.8%, reaching 18,284 million. This spike was largely attributed to a 6.2% increase in Stage Length year-over-year. The airline managed to transport 9.7 million passengers across its extensive network, which encompasses 169 routes to 83 destinations spanning 28 countries. Furthermore, the company launched three new international routes post-quarter, including Belém in Brazil and Monterrey in Mexico.

Avianca's total operating revenues hit $1,509 million in Q3 2025, reflecting a robust 12.8% growth compared to the previous year. This upward trend was largely fueled by the successful integration of Avianca’s Business Class offerings and the solid performance from its various business segments. Additionally, the airline posted $1,151 million in passenger and ancillary revenue, with a 3.3% increase from Q3 2024.

From a cost perspective, the airline demonstrated continued discipline, with Passenger CASK excluding fuel slightly increasing by 2.1% to settle at 3.9 cents. In contrast, the Passenger Fuel CASK decreased by 9.9% to 1.7 cents, attributed to lower fuel prices and enhanced fuel efficiency, resulting in a Total Passenger CASK of 5.7 cents, a 1.9% decrease relative to the prior year’s quarter.

Financial Health & Credit Ratings

Avianca's liquidity position remains robust at $1,361 million, representing 24.2% of last-twelve-month revenues and comprising a cash balance of $1,161 million along with $200 million in committed liquidity available through an undrawn Revolving Credit Facility. The airline's net debt to last-twelve-month EBITDAR improved to 2.8x, showcasing the company's strengthened financial standing.

In recognition of its solid operational and financial improvements, Moody’s and Fitch upgraded Avianca's credit ratings to B1 and B+ respectively, both with a stable outlook. Such upgrades signify the market's confidence in Avianca's sustainable business model and its commitment to maintaining a healthy financial framework.

Business Class Expansion and Customer Experience Enhancements

Avianca also made notable strides in enhancing its customer experience, launching Business Class services on an additional 54 routes from its key hubs including Bogotá, Medellín, San Salvador, Quito, and Guayaquil. These efforts not only broadened Avianca's reach across the Americas but also represented a substantial enhancement of its Insignia Business Class product for transatlantic routes.

Moreover, the opening of the new Diamond lounge in Bogotá's El Dorado airport has further contributed to upgrading the overall passenger experience, ensuring travelers enjoy greater comfort and services.

Future Outlook

As Avianca looks forward, the airline is committed to optimizing its network and enhancing connectivity and scheduling convenience through major redesigns of its hubs in Bogotá, San Salvador, and Medellín. These strategic initiatives are predicted to yield a 23% increase in total markets served by the hubs and an 11% increase in weekly paths built for the upcoming Winter 2025 season compared to last year.

In summary, Avianca's performance for Q3 2025 underscores its resilience and capability to thrive in the competitive airline industry. The combination of solid financial metrics, effective cost management, and continued investment in customer service bodes well for the company’s future endeavors.