Avianca Group, the parent company of Avianca Airlines based in Bogotá, has announced plans to confidentially submit a draft registration for an initial public offering (IPO) of its ordinary shares on a US stock exchange. This move marks a significant step for the airline group, emerging from Chapter 11 bankruptcy protection two-and-a-half years ago.
In a statement released on July 1, Avianca Group indicated its intention to proceed with the IPO pending approval from the US Securities and Exchange Commission (SEC) and favorable market conditions.
Financially, Avianca Group reported positive results for the first quarter of 2024, with total operating revenues reaching USD1.26 billion and a net income of USD13 million. These figures reflect a year-on-year improvement compared to USD1.08 billion in revenues and a USD12 million net loss reported in the same period of 2023.
Avianca Group’s decision to pursue an IPO aligns with similar moves in the Latin American airline industry, including Aeroméxico’s recent announcement of its own IPO plans in the United States, following its restructuring under Chapter 11 during the Covid-19 pandemic.
Avianca Airlines is part of the Abra Group, which includes other airlines like GOL Linhas Aéreas Inteligentes, currently undergoing Chapter 11 proceedings. Abra Group has recently expanded its portfolio with investments in Wamos Air and a joint venture with Volotea, demonstrating strategic diversification amidst evolving market dynamics.
The IPO initiative positions Avianca Group to strengthen its financial position, attract investment, and capitalize on opportunities in the post-pandemic aviation recovery phase, underlining its commitment to sustainable growth and operational resilience in the competitive airline industry.
