Avianca Group International (AVIANCA) Q4 2025 earnings summary

Executive summary

• Pro forma 2025 revenue reached $9.7 billion, up 11.1% year-over-year, with adjusted EBITDAR of $2.7 billion (27.4% margin, up 321 bps), and net income of $331 million, reversing a $1.25 billion loss in 2024.

• Completed GOL's Chapter 11 restructuring, making ABRA the controlling shareholder and consolidating GOL's results from June 2025, strengthening the group's financial foundation.

• Achieved $180 million in cumulative synergies through integration of Avianca, GOL, and Wamos, with over 300 aircraft and 375 routes serving 70 million passengers annually.

• Enhanced leadership structure, expanded fleet, and continued progress in sustainability and customer experience, including business class rollout and premium offerings.

• Announced agreement-in-principle for a business combination with SKY Airline, expanding presence in Chile and Peru.

Financial highlights

• Total operating revenue grew 11.1% to $9.7 billion, with passenger revenue up 7.9% and cargo/other revenue up 31.3%.

• Adjusted EBITDAR grew 26% to $2.7 billion, margin improved to 27.4%, and Q4-25 margin reached 30.6%.

• Net income was $331 million, reversing a $1.25 billion loss in FY-24.

• Liquidity ended at $2.5 billion (25% of LTM revenues), net debt reduced to $8.8 billion, and net leverage fell to 3.3x from 5x.

• Cargo business delivered $1.6 billion in revenue (+31% YoY); loyalty programs reached 46 million members.

Outlook and guidance

• Capacity plans for 2026 are modest, with mid-single-digit growth at Avianca and focused expansion in key Brazilian markets for GOL.

• Monitoring fuel price volatility closely; hedged 50% of fuel needs for March–May and an additional 14% through August.

• Pricing increases being passed through to offset fuel costs, with up to 30% fare increases in Brazil and 10% in Colombia; tactical capacity reductions possible if demand softens.

• Focus remains on customer experience, revenue growth, disciplined cost management, and continued deleveraging.

• Ongoing improvements in fuel efficiency and emissions management support sustainability goals.