Colombia’s Avianca airline doubles group profit in 2 years

(Photo: EM Company)

Colombia’s Avianca Holdings airline group has reported consolidated net earnings of $249 million in the past year.

In 2011, the figure was only $100 million, according to reports from Colombia’s Portafolio magazine on Monday morning.

MORE: Avianca airlines posts 19.9% rise in stock value starting 2014

Avianca Holdings, the parent company of Colombia’s flag carrier airline, posted a net profit of $511 million, which is five and a half times larger than last year ($78 million).

The consolidated profit was about half that, at $249 million, after transactions between members of the group are taken into account.

Between mid-December and mid-January, the airline flew a record 11,791 flights, reportedly carrying over 1.4 million passengers.

Tax Reform

According to local financial newspaper La Republica, the Avianca profits, like other Colombian results this year, are impacted by payroll tax changes enacted in January 2013.

These changes reduced the payroll taxes assessed companies for each of their employees and replaced it with a tax on the profits they earn by making use of that labor.

MORE: Tax reform helping drive Colombia’s ‘promising’ economy: IMF

On Wall Street

In November, the Colombian airline debuted on the New York Stock Exchange – raising $409 million in pre-float stock sales.

Since the company entered the exchange, the share value has increased 4%.

Sources

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