Avianca Cargo revenue jumps 14% in third-quarter 2025 results

• Avianca Group International Limited reported a strong financial performance for the third quarter of 2025, delivering $411 million in EBITDA – an increase of 15 percent year-over-year – for a margin of 27.2 percent. This marks the fourth consecutive quarter of record EBITDA and margin performance for the company.
• A highlight was the performance of Avianca Cargo, which achieved revenues of $157 million, reflecting a 14.1 percent increase over the same period last year.
• The Cargo division continued to benefit from stable market conditions and expanded its freighter fleet to nine A330 aircraft with the addition of two P2F aircraft.

Avianca Group International Limited announced strong financial results for the third quarter of 2025, with its shipping division delivering an outstanding performance. Avianca Cargo generated revenue of $157 million for the quarter, representing a 14.1 percent increase year over year, highlighting the continued strength of air freight demand in the company’s key markets and the resilience of its logistics operations.

Growth in shipping revenues played a vital role in the company’s EBITDA of $411 million, an increase of 15.5 percent year-on-year, with a healthy EBITDA margin of 27.2 percent – the fourth consecutive quarter of record EBITDA performance for similar periods. These results come at a time when the global air freight market is gradually stabilizing after several years of volatility, as Avianca has positioned its freighter fleet and logistics solutions to meet evolving customer demand.

Avianca Cargo’s operational freighter fleet expanded during the quarter with the commissioning of two additional A330 passenger-to-freighter (P2F) aircraft, bringing the total to nine widebody freighters. These aircraft continue to serve major trade routes across the Americas, supporting high-value and time-sensitive cargo flows through the region.

The strong performance of the freight business is due to a combination of fleet expansion, efficient network deployment and a stable rate environment. While global air cargo revenues have been under pressure in some regions, Avianca Cargo’s performance points to targeted capacity growth, customer retention, and operational execution as factors behind higher revenues.

The broader group’s performance reflects a strong strategy
Beyond shipping, the group reported total operating revenues of US$1,509 million, representing a 12.8 per cent increase on Q3 2024. Operating costs rose to US$1,290 million (up 13.3 per cent), but cost discipline was evident in several areas, including fuel.

Passenger fuel cost per available seat kilometer (CASK) fell by 9.9 percent year-on-year, thanks to improved fuel efficiency and favorable pricing. Total passenger CASK fell to 5.7 cents, down from 5.8 cents a year ago, while non-fuel CASK rose slightly to 3.9 cents (up 2.1 percent).

The group carried 9.7 million passengers, maintaining stable volumes compared to the previous year. Despite a 6.8% growth in capacity (measured in available seat kilometres) and a 7.0% rise in passenger revenue per kilometre, average revenue per passenger fell by 3.5%, reflecting competitive pricing and network improvement. The load factor remained stable at 82.9 percent, indicating efficient capacity management.

Avianca’s cost discipline and network strategy resulted in net income of $101 million, an increase of 40.1 percent year-over-year, underscoring strong execution in both passenger and cargo operations.

In recognition of the continued financial improvements, Moody’s and Fitch raised Avianca’s credit ratings during the quarter – to B1 and B+, respectively, with a stable outlook. The upgrades reflect confidence in the airline’s operating model, ongoing cash generation, and balance sheet health.

At the end of the third quarter, Avianca reported liquidity of $1,361 million, which included a cash balance of $1,161 million and $200 million of undrawn revolving credit. The group’s net leverage ratio improved slightly to 2.8 times, down from 2.9 times in the previous quarter.

Avianca has continued to improve its passenger network, improving connectivity through the redesign of key hubs in Bogota, San Salvador and Medellin. These efforts resulted in a 23 percent increase in markets served through its centers and an 11 percent increase in weekly connections for the winter of 2025 compared to the same period in 2024.

The company also launched business class service across 54 new destinations, expanding its premium product offerings across Colombia, El Salvador, Ecuador and other key destinations. These additions improve the passenger experience and contribute to increased incremental revenue and loyalty engagement.

Avianca LifeMiles loyalty program continues to be a major contributor to the Group’s profitability. The program recorded a 72 percent increase in third-party cash EBITDA, to $77 million in the quarter. Growth was driven by the use of co-branded credit cards, increased redemptions, and strong partner engagement.