NOVEMBER 15TH, 2014

Avianca Holdings reports operating profit of $70.3 million for the third quarter of 2014

For the 3Q 2014, Avianca Holdings would have earned an adjusted net income of $37.7 million, excluding special items. Our adjusted net income margin came in at 3.1%. In the first nine months of the year, the Company earned an adjusted net income of $82.1 million, while the adjusted net income margin was 2.4 %.

Operating revenues1 amounted to $1.23 billion, up 3.9% over 3Q 2013, mainly due to a 4.4% increase in passenger revenues, driven by an increase of 7.5% in passengers carried. As such Cargo and other revenues1 increased by 1.0%.

Operating revenues for the first nine months of 2014 totaled $3.5 billion, up 1.6% from the same period in 2013.

Cost per available seat kilometer (CASK) 1 increased by 3.9% for the period. As such CASK ex-fuel1 reached 7.5 cents while cycles rose 11.3% for the quarter. CASK for the nine-month period of 2014 remained stable at 10.8 cents when compared with the same period of last year. These results are mainly driven by cost saving initiatives implemented throughout 2014.

EBITDAR for the 3Q of 2014 was $202.5 million dollars, while the EBITDAR margin reached 16.5%, the highest margin registered throughout the year and showing an improvement of 210bps when compared to the margin of 2Q 2014. The EBITDAR for the first nine months of 2014 totaled $ 528.6 million, while the EBITDAR margin reached 15.3%.

Operating income (EBIT) totaled $70.3 million, as a result the operating margin for 3Q 2014 reached 5.7%, an increase of 130 basis points over the 2Q of 2014. The operating income (EBIT) for the nine-month period of 2014 was $170.1 million; as a result, the operating margin for the first nine months of 2014 was 4.9%.

Capacity, measured in ASKs (available seat kilometers), increased 6.1% during 3Q 2014, mostly due to the continued expansion in our domestic markets and the entry into operation of the Bogota London route. Furthermore, passenger traffic, measured in RPKs (revenue passenger kilometers), grew 5.3%, reaching a consolidated load factor of 81.3%. During the first nine months of 2014, capacity measured in ASKs, rose 5.3%, while passenger traffic, measured in RPKs, increased 4.0%.

Between July and September 2014, the company took delivery of two A321, two A320, two A319 aircraft all equipped with sharklets, and four ATR72 which will operate in the domestic Colmbian and Central American market.