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19 Nov 2024
Avianca Group, the Colombian airline, announced plans to confidentially file for an initial public offering (IPO) in the United States.
Based in Bogota and operational for over a century since 1919, Avianca is advancing with its listing over two years after emerging from bankruptcy.
Avianca, which operates in Colombia, Ecuador, and Central America, was among the major Latin American airlines that declared bankruptcy during the pandemic due to decreased travel demand.
The airline filed for Chapter 11 bankruptcy in May 2020 after missing a bond payment and exited bankruptcy in December 2021.
In May 2022, Avianca and Brazilian airline Gol agreed to combine under the Abra Group. The timing and success of the IPO will depend on market conditions, according to Avianca.
The airline, the world's second-oldest still in operation, reported a profit of $13 million in the first quarter, with 9.3 million passengers transported, a 37.5% increase from the previous year.
Avianca's total operating revenue for the period was $1.27 billion, up from $1.09 billion the previous year.
As of late June, Avianca's fleet included 147 Airbus 320 and Boeing 787 Dreamliner aircraft. The airline operates 150 routes connecting over 76 destinations across 26 countries in the Americas and Europe.
Avianca follows other Latin American airlines looking to benefit from the deeper capital markets and higher valuations in the U.S.
Earlier this year, Mexico's Aeroméxico filed to go public in New York, and Chile's LATAM Airlines is also working on re-listing its shares on the New York Stock Exchange.
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