November 17. Avianca is still facing enormous financial pressure due to the impact of the COVID-19 pandemic. So far, the carrier has had total revenue worth US$1.415 billion. Meanwhile, total operating expenses have surpassed US$1.95 billion in 2021.
Passenger revenue is 71% below its pre-pandemic numbers, having obtained US$862 million compared to the US2.9 billion Avianca had in the first nine months of 2019.
Unlike the passenger segment, cargo is surging for Avianca. The airline has had US$552 million in revenue in 2021, a 6.5% increase compared to 2019 levels, prior to the pandemic.
Prior to the COVID-19 pandemic, Avianca had high costs that made it impossible to compete against low-cost carriers in the region.
One of the main goals during Avianca’s Chapter 11 has been to implement a cost reduction strategy and be able to fare better against low-costs. Last week, Avianca launched a low-cost type of strategy offering 200,000 seats at a price of US$7.70. The commercial measure was a success and Avianca sold out its tickets.
Source: Simple Flying