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The relationship between operating income and airline costs and expenses has improved. Airlines’ turnover to increase by 21.8% in 2023 ($17.76 billion) compared to 2022 ($14.59 billion), where inflation and expenses outweighed airline industry sales.
This action is worth highlighting, considering the return of 19% VAT on tourism products by 2023, the reduction in the number of airlines and the decline in local demand.
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This is clearly shown in the latest financial statements of airlines in 2023 released by the Civil Aviation Administration. These companies increased their turnover by $3.17 billion in absolute termsIn terms of profits, the good dynamics have made the industry generally By 2022, the company will go from a loss of $1.24 trillion to a profit of nearly $241.365 billion.
In national operations, Avianca Airlines has the highest revenue compared to its competitors By the end of 2023, this figure is $13.57 billion, an increase of 20.51% compared to $11.26 billion in 2022. The good performance in 2023 led to The airline turned a profit (loss of $801.213 billion in 2022) to $224.732 billion.
in the case of Latin America sales to reach $2.24 billion in 2023, up 30.9% This compares to revenues of $1.71 billion in the previous period. Now, although, unlike Avianca, LATAM continues to lose money, its losses have been significantly reduced, from $422.853 billion to $58.698 billion. This improvement is due to a better balance between revenues and costs, which was not the case in 2022.
For its part, Aerorepública (better known as Wingo), like Latam, achieved a better balance between revenues and costs in 2023, Loss of $30.477 billion, profit of $59.505 billionRevenue increased 24.7% from $658.117 billion to $763.598 billion.
You can read: LATAM Airlines posts first-half profit of $405 million
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Meanwhile, regional airlines Clic also expects operating revenue to increase from $493.702 billion in 2022 to $531.313 billion in 2023. Unlike other companies, Clic’s costs did not outweigh it compared to revenue. However, due to increased billings, their profits increased from $3.564 billion to over $39.138 billion at the end of the period.
As for state-owned airlines, Satena’s revenue grew 33%. From $270,645 million in 2022 to $360,684 in 2023. Despite this growth, history repeated itself two years in a row, with revenues falling below costs ($371,007 million) and expenses ($61,612 million). This financial dynamic led the company to report lower profits than in 2022, from $2,155 million in 2022 to $1,080 million in 2023.
For example, Avianca Express regional flights, despite a 20% increase in billings, from $195,473 million to $234,698 in 2023, expenses were higher than profits, at $250,541 million, compared to a total of $182,683 in the previous period. Unlike other growth, this growth resulted in They will go from a positive balance of $11.856 billion to a loss of $24.493 billion.
International Indicators
In terms of external operations, LATAM Airlines Group achieves a turnover of US$293.070 billion in 2023, up from US$231.572 billion in 2022. Despite the slightly better performance, profits fall sharply from US$86.717 billion to US$6.197 billion in 2023.
This was due to a lower record of non-operating income (from $32.607 billion to $1.287 billion) and a significant increase in the value of expenses (from $5.942 billion to $126.480 billion), the data showed.
Also read: Emirates is preparing a new luxury service: What is it and when will it launch?
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For this period of time, Air Canada’s sales reach $87.345 billionAnd in 2022 it was $71.363 billion. Due to good cost control and a lower number of expenses, they managed to increase profits from $37.766 billion to $44.886 billion.
On the contrary, AeroVietnam has accumulated more losses. This dynamic, according to Aerocivil records, is due to a significant increase in the company’s operating expenses. By 2023, revenues will grow by 11.9%, from $ 308.023 billion in 2022 to $ 344.844 billion, but expenses will grow by 84.2%, from $ 410.768 billion to $ 756.866. This causes the red figure to grow from $ 1.103 billion to more than $ 3.029 billion.
You can see: Clic Airlines will start flying between Pereira and Nuqui from August 1
Finally, Spanish airline Iberia saw sales increase from $448.542 billion to $529.721 billion, which helped them maintain their profit margins and record profits of $8.056 billion in their Colombian operations.
Paula Galeano Balaguera
Portfolio Reporter
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