|Net income* 1||108.8||55.2|
|Net income* 1||65.2||47.6|
|EBITDAR % 1||17.7%||20.9%|
|EBIT % 1||4.8%||6.5%|
|Net income %||3.4%||0.6%|
|Net income%* 1||3.4%||1.8%|
|EBIT %||6.5 %||7.9%|
|EBITDAR % 1||20.4%||21.6%|
|EBIT % 1||7.5%||7.9%|
|Net income %||9.1%||3.6%|
|Net Income%* 1||6.0%||4.5%|
- Operating income (EBIT) increased in the third quarter 2016, reaching $83.4 million, with an improved operating margin of 7.9%. This represents a 36 bps 1 quarter on quarter increase resulting from efficiencies derived through the Company's expense reduction program and revised hedging policy. Further, operating revenues 1 reached $1.1 billion for the quarter.
- These results were primarily driven by a 3.1% reduction in total operating costs 1 as the Company benefited from its revised fuel hedging strategy and leaner cost structure. This was partially offset by a 7.6% decrease in non-passenger revenues 1 and a slight reduction in passenger revenues (1.7%).
- For the 3 rd quarter of 2016 yields reached 8.8 cents, a 7.4% increase when compared to the yield of 2Q 2016. This represents Avianca's first quarter over quarter yield increase since the second quarter 2014. This trend was supported by an increase of 5.9% in third quarter 2016 traffic numbers (RPKs) when compared to the same quarter last year.
- Cost per available seat kilometer (CASK 1) decreased 6.0% to 8.2 cents in 3Q 2016, compared to 8.7 cents in 3Q 2015. This was primarily driven by lower jet fuel prices, which decreased by 10% during the quarter, as well as by a 16.6% year on year reduction in maintenance and repairs expenses. In addition, Avianca's cost control initiatives continue to yield efficiencies. CASK ex-fuel 1 therefore declined 0.5%, to 6.4 cents.
- EBITDAR for the 3Q 2016 was $229.1 million, while the EBITDAR margin reached 21.6%; a 118 bps 1 increase when compared to 2015.
- Adjusted Net income excluding special items totaled $47.6 million. Adjusted net income margin 1 for 3Q 2016 therefore reached 4.5%.
- Avianca's leverage position (Net Adjusted debt to EBITDAR) decreased to 5.99x from 6.79x on December 31, 2015, as the Company reduced its total debt by $224.6 million in conjunction with an improvement in profitability.
- Capacity, measured in Available Seat Kilometers (ASKs), increased 3.1% during 3Q 2016, primarily due to the annualized effect of the international capacity deployed to Europe during 2015. The Company continued to see robust traffic numbers on its international routes, particularly to Europe, South America and North America. Passenger traffic, measured in Revenue Passenger Kilometers (RPKs), increased by 5.9%, reaching a consolidated load factor of 83.5% across the network.
- Between July and September, the Company took delivery of one sharklet-equipped A319 and two new wide-body B787-8 aircraft. Avianca Holdings S.A. and its subsidiaries therefore ended the quarter with a consolidated operating fleet of 177 aircraft.