Avianca CEO Reveals Record Growth in 105th Year

‍DALLAS — To celebrate its 105th anniversary, Avianca (AV) invited Airways to an exclusive virtual press conference featuring Frederico Pedreira, CEO of the Abra Group airline. 

Pedreira shared key insights into the airline's milestones in 2024, including consolidating the most extensive network in its history and achieving record passenger numbers during the year.

Additionally, the CEO provided a glimpse into what’s next for the airline in 2025.

The results span multiple operating areas, from route expansion to significant improvements in operational efficiency, confirming its position as one of Latin America's leading airlines.

Network Expansion, Operational Improvements

The airline has reached a significant milestone, with 167 routes connecting more than 25 countries. Additionally, 14% of 2024 passengers are new customers for the airline.

For 2024, the carrier announced the addition of 24 new routes, including eight strategic destinations: Paris—this month, in partnership with Air France (AF); Chicago—performing better than expected; Montreal, Caracas, Havana, Colombia, Arauca, and Quibdó; and Aeroparque in Buenos Aires.

The CEO also confirmed more flights to Floridian destinations and Central America.

Strengthening Connectivity in Colombia

Avianca's domestic presence has significantly consolidated:

• Operates 80 routes in Colombia, with 43 domestic routes
• Connects 25 national and 37 international destinations
• Projects substantial growth in domestic passengers:some text
  • 2022: 14.6 million
  • 2023: 16.1 million (+10%)
  • 2024: projected 19.3 million (+20%)

Comparing 2019 with 2024, AV has achieved substantial improvements in several key indicators:

• Punctuality increased from 78.6% to 82.8%
• Baggage irregularities per 1,000 passengers reduced from 4.52 to 1.53
• Call response time dramatically improved from 16'48" to 1'12"
• Achieved 98.4% in first-contact problem resolution

Avianca’s Service Philosophy

The CEO underlined "The sky is for everyone" as the fundamental principle of the airline. In short, this means AV offers unbundled options for all types of travelers:

• For those seeking the most economical fare to destinations like Medellín, Cali, Cartagena, or Miami
• For those wanting executive class service
• For those needing to carry more luggage
• For those looking for a superior gastronomic experience onboard

Case in point: The CEO mentioned Brazil as a market that has not only doubled for the airline but that the more “challenging” Brazilian traveler understands AVs' unbundled offering well.

Pedreira cited Brazilian travelers purchasing tickets to Miami and Orlando that don’t include luggage but opting for tickets that do for the returning home flights, presumably after their shopping sprees in Florida. 

The CEO also discussed AV’s premium seating and services, highlighting key points about the business class experience, particularly in the Americas.

1. Premium Seating: Avianca offers a superior product compared to regional competitors. While some airlines opt for a two-seat configuration, Avianca provides three seats, with the middle one blocked, offering more space and comfort.
2. Business Class in the Americas: Avianca focuses on a high-quality "hard product" for business class, which refers to the physical seat. They have designed a superior product to cater to the growing demand for premium experiences, especially in the Americas.
3. Amenity Kits: Avianca offers amenity kits, including blankets and pillows, to enhance the flight experience for business class passengers.
4. Aircraft Upgrades: Avianca is installing dividers in its aircraft. By the end of December, all of its "neo" aircraft will feature these upgrades, and plans are to extend this to the rest of the fleet in the coming year.

The emphasis is on offering a top-tier experience for business class travelers, focusing on comfort, service, and a consistent product across flights.

Business in the Americas, Insignia for Europe

• Initially limited to wide-body operations
• Expanded to narrow-body due to high demand
• Started with 11 routes from Bogotá
• Currently operating on 34 routes
• Distinctive features:some text
  • Premium seat configuration
  • Cabin divider in neo-aircraft
  • Specially designed amenity kits

Service Levels

By flight duration:

• Flights under 3 hours:some text
  • Packaged snack
  • Hot and cold beverage options
  • Basic comfort elements
• Flights over 3 hours:some text
  • Full service
  • Hot meals
  • Complete amenity kit
  • Premium comfort elements

Insignia Class for European Routes

• Available on routes to Paris, Madrid, London, and Barcelona
• Operated on Boeing 787
• Flat-bed seats
• Enhanced menu in collaboration with Chef Álvaro
• Premium amenity kit with Colombian products
• A unique collaboration with the Gunadule community:some text
  • Designs inspired by Indigenous art
  • Partnership with Mola Sasa
  • Royalties directed to community cultural development

Growth of the Lifemiles program

The Lifemiles loyalty program has shown exceptional growth:

• 30% increase in redeemed tickets
• 14 million Lifemiles members (40% more vs 2019)
• 380,000 Elite members (150% more vs 2019)
• 177% growth in Club Lifemiles compared to 2023

Avianca Cargo: International recognition

The airline’s cargo division also achieved notable milestones in 2024:

• Recognized among the world's top six cargo airlines at the Air Cargo News Awards 2024
• Only Latin American airline on this prestigious list
• Network of over 350 destinations, the most extensive in its history from Miami
• Increase in transported tonnage from 377K to 391K
• Service level improvement from 62% to 82%
• A renewed aircraft fleet of A330Fs and BCFs, with two aircraft coming in Q1 2025

Other Expectations

Finally, the CEO was adamant when asked about new aircraft allocations, pointing out that that there was not only a shortage of new aircraft but that the July 25 Abra Group Memorandum of Understanding (MOU) with Airbus for five A350-900s to expand the group's international long-haul operations did not mean that there would be A350 AV operations for the foreseeable future, meaning we won’t see the A350 flying in 2025 for the airline.

Apart from the A350 operational wait, AV seems to be all positive news on its anniversary year. Aviation analytics firm Cirium presented the 2023 On-Time Performance (OTP) Award for global airlines to AV. With today's performance results, the 105-year-old airline should rank high again this year.

The Avianca Group is a company that is comprised of AV, a Star Alliance member, LifeMiles, and Avianca Cargo. In passenger transportation, AV is the leading airline in Colombia, Ecuador, and Central America, with over 104 years of continuous operation since 1919. 

The carrier has one of Latin America's most extensive air operations, with 700+ daily flights and a fleet of 140 Airbus 320 and Boeing 787 Dreamliner aircraft.