Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | AVH |
Entity Registrant Name | Avianca Holdings S.A. |
Entity Central Index Key | 0001575969 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Common Shares [member] | |
Document Information [Line Items] | |
Entity Stock, Shares Outstanding | 660,800,003 |
Preference shares [member] | |
Document Information [Line Items] | |
Entity Stock, Shares Outstanding | 340,507,917 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 273,108 | $ 508,982 |
Restricted cash | 4,843 | 5,465 |
Trade and other receivables, net of expected credit losses | 288,157 | 226,015 |
Accounts receivables from related parties | 6,290 | 17,204 |
Current tax assets | 231,914 | 114,361 |
Expendable spare parts and supplies, net of provision for obsolescence | 90,395 | 97,248 |
Prepayments | 99,864 | 99,757 |
Deposits and other assets | 89,773 | 201,984 |
Total current assets | 1,084,344 | 1,271,016 |
Assets held for sale | 31,580 | |
Non-current assets: | ||
Deposits and other assets | 115,504 | 116,400 |
Trade and other receivables, net of expected credit losses | 35,503 | 4,115 |
Non current taxes assets | 19 | 136,301 |
Intangible assets and goodwill, net | 513,803 | 426,579 |
Deferred tax assets | 24,573 | 25,969 |
Property and equipment, net | 5,313,317 | 4,881,016 |
Total non-current assets | 6,002,719 | 5,590,380 |
Net assets | 7,118,643 | 6,861,396 |
Current liabilities: | ||
Short-term borrowings and current portion of long-term debt | 626,742 | 572,072 |
Accounts payable | 732,574 | 495,029 |
Accounts payable to related parties | 2,827 | 7,187 |
Accrued expenses | 120,894 | 186,657 |
Current tax liabilities | 26,702 | 31,935 |
Provisions for legal claims | 7,809 | 11,720 |
Provisions for return conditions | 2,475 | 19,093 |
Employee benefits | 44,663 | 38,706 |
Air traffic liability | 424,579 | 454,018 |
Frequent flyer deferred revenue | 186,378 | 85,207 |
Other liabilities | 3,861 | 9,415 |
Total current liabilities | 2,179,504 | 1,911,039 |
Non-current liabilities: | ||
Long-term debt | 3,380,838 | 3,180,041 |
Accounts payable | 7,127 | 5,084 |
Provisions for return conditions | 127,685 | 144,099 |
Employee benefits | 110,085 | 135,640 |
Deferred tax liabilities | 18,437 | 25,814 |
Frequent flyer deferred revenue | 234,260 | 104,786 |
Other liabilities | 68,246 | 15,193 |
Total non-current liabilities | 3,946,678 | 3,610,657 |
Total liabilities | 6,126,182 | 5,521,696 |
Equity: | ||
Common stock | 82,600 | 82,600 |
Preferred stock | 42,023 | 42,023 |
Additional paid-in capital on common stock | 234,567 | 234,567 |
Additional paid-in capital on preferred stock | 469,273 | 469,273 |
Retained earnings | 386,087 | 587,989 |
Other comprehensive income | (44,096) | (802) |
Equity attributable to owners of the Company | 1,170,454 | 1,415,650 |
Non-controlling interest | (177,993) | (75,950) |
Total equity | 992,461 | 1,339,700 |
Total liabilities and equity | $ 7,118,643 | $ 6,861,396 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenue: | |||
Passenger | $ 4,074,391 | $ 3,550,160 | $ 3,285,217 |
Cargo and other | 816,439 | 891,524 | 853,121 |
Total operating revenue | 4,890,830 | 4,441,684 | 4,138,338 |
Operating expenses: | |||
Flight operations | 153,615 | 92,471 | 58,381 |
Aircraft fuel | 1,213,411 | 923,468 | 785,273 |
Ground operations | 474,802 | 450,209 | 426,203 |
Aircraft rentals | 267,708 | 278,772 | 314,493 |
Passenger services | 188,713 | 166,869 | 151,718 |
Maintenance and repairs | 206,454 | 280,536 | 260,703 |
Air traffic | 269,631 | 242,587 | 218,965 |
Selling expenses | 530,930 | 515,073 | 545,318 |
Salaries, wages and benefits | 760,758 | 706,778 | 661,708 |
Fees and other expenses | 203,304 | 177,864 | 187,560 |
Depreciation, amortization and impairment | 389,388 | 313,413 | 269,546 |
Total operating expenses | 4,658,714 | 4,148,040 | 3,879,868 |
Operating profit | 232,116 | 293,644 | 258,470 |
Interest expense | (212,294) | (183,332) | (172,630) |
Interest income | 10,115 | 13,548 | 13,054 |
Derivative instruments | (260) | (2,536) | 3,321 |
Foreign exchange | (9,220) | (20,163) | (23,939) |
Equity method profit | 899 | 980 | |
Profit (loss) before income tax | 21,356 | 102,141 | 78,276 |
Income tax expense - current | (27,151) | (35,159) | (27,448) |
Income tax expense - deferred | 6,938 | 15,050 | (6,642) |
Total income tax expense | (20,213) | (20,109) | (34,090) |
Net profit (loss) for the year | $ 1,143 | $ 82,032 | $ 44,186 |
Basic earnings per share | |||
Common stock | $ (0.025) | $ 0.050 | $ 0.040 |
Preferred stock | $ (0.025) | $ 0.050 | $ 0.040 |
Items that will not be reclassified to profit or loss in future periods: | |||
Revaluation of administrative property | $ (20,448) | $ 31,017 | $ 8,971 |
Remeasurements of defined benefit liability | (9,039) | (33,385) | 4,094 |
Income tax | (39) | (15,018) | 4,289 |
Items that will not be reclassified to profit or loss in future periods | (29,526) | (17,386) | 17,354 |
Items that will be reclassified to profit or loss in future periods: | |||
Effective portion of changes in fair value of hedging instruments | (13,701) | 6,385 | 21,712 |
Net change in fair value of financial assets with changes in OCI | (328) | 19 | (245) |
Income tax | 3,558 | (3,558) | |
Items that will be reclassified to profit or loss in future periods | (14,029) | 9,962 | 17,909 |
Other comprehensive (loss) income, net of income tax | (43,555) | (7,424) | 35,263 |
Total comprehensive (loss) income | (42,412) | 74,608 | 79,449 |
Profit attributable to: | |||
Equity holders of the parent | (24,803) | 48,237 | 16,980 |
Non-controlling interest | 25,946 | 33,795 | 27,206 |
Net (loss) profit for the period | 1,143 | 82,032 | 44,186 |
Total comprehensive (loss) income attributable to: | |||
Equity holders of the parent | (68,097) | 40,358 | 52,243 |
Non-controlling interest | 25,685 | 34,250 | 27,206 |
Total comprehensive (loss) income | $ (42,412) | $ 74,608 | $ 79,449 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Issued capital common stock [member] | Issued capital preferred stock [member] | Additional paid-in capital common stock [member] | Additional paid-in capital preferred stock [member] | Other reserves [member] | Revaluation surplus [member] | Retained earnings [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] |
Beginning balance at Dec. 31, 2015 | $ 1,372,635 | $ 82,600 | $ 42,023 | $ 234,567 | $ 469,273 | $ (46,580) | $ 18,394 | $ 553,712 | $ 1,353,989 | $ 18,646 |
Statement [LineItems] | ||||||||||
Net profit | 44,186 | 17,149 | 17,149 | 27,037 | ||||||
Other comprehensive income | 35,263 | 26,123 | 8,971 | 35,094 | 169 | |||||
Dividends decreed | (31,823) | (5,723) | (5,723) | (26,100) | ||||||
Ending balance at Dec. 31, 2016 | 1,420,261 | 82,600 | 42,023 | 234,567 | 469,273 | (20,457) | 27,365 | 565,138 | 1,400,509 | 19,752 |
Statement [LineItems] | ||||||||||
Net profit | 82,032 | 48,523 | 48,523 | 33,509 | ||||||
Increase in non-controlling interest | 504 | 504 | ||||||||
Other comprehensive income | (7,424) | (38,727) | 31,017 | (7,710) | 286 | |||||
Dividends decreed | (155,673) | (25,672) | (25,672) | (130,001) | ||||||
Ending balance (Adjusted [member]) at Dec. 31, 2017 | 1,140,151 | 82,600 | 42,023 | 234,567 | 469,273 | (59,184) | 58,382 | 446,398 | 1,274,059 | (133,908) |
Ending balance at Dec. 31, 2017 | 1,339,700 | 82,600 | 42,023 | 234,567 | 469,273 | (59,184) | 58,382 | 587,989 | 1,415,650 | (75,950) |
Statement [LineItems] | ||||||||||
Adjustment on initial application of new standards | (199,549) | (141,591) | (141,591) | (57,958) | ||||||
Net profit | 1,143 | (24,803) | (24,803) | 25,946 | ||||||
Other comprehensive income | (43,555) | (22,846) | (20,448) | (43,294) | (261) | |||||
Sale of subsidiaries | (7,674) | (7,674) | ||||||||
Dividends decreed | (97,604) | (35,508) | (35,508) | (62,096) | ||||||
Ending balance at Dec. 31, 2018 | $ 992,461 | $ 82,600 | $ 42,023 | $ 234,567 | $ 469,273 | $ (82,030) | $ 37,934 | $ 386,087 | $ 1,170,454 | $ (177,993) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net profit for the year | $ 1,143 | $ 82,032 | $ 44,186 |
Adjustments for: | |||
Provision net of expected credit losses | 4,526 | 4,363 | 2,966 |
Provision for expandable spare parts and suppliers obsolescence | (3,203) | (5,376) | (7,094) |
Recovery for return conditions | (27,092) | 811 | 28,354 |
Net provisions for legal claims | (2,973) | 14,490 | 11,116 |
Depreciation, amortization and impairment | 389,388 | 313,413 | 269,546 |
Sale & leaseback amortization | (4,747) | ||
Share-based payment (income) expense | (1,002) | 1,111 | |
(Gains) Loss on disposal of assets | (16,081) | (1,978) | 10,256 |
Gains on sale of subsidiary | (10,579) | ||
Fair value adjustment of financial instruments | 260 | 3,549 | (4,290) |
Interest income | (10,115) | (14,528) | (13,054) |
Interest expense | 212,294 | 183,332 | 172,630 |
Deferred tax | (6,938) | (15,050) | 6,642 |
Current tax | 27,151 | 35,159 | 27,448 |
Unrealized foreign currency (gain) losses | (32,569) | 20,163 | 23,939 |
Changes in: | |||
Accounts receivables | (103,998) | (42,244) | (18,177) |
Expendable spare parts and supplies | 10,056 | (9,272) | (6,499) |
Prepayments | (115) | (49,396) | (14,017) |
Net current tax | 13,497 | (49,930) | (41,635) |
Deposits and other assets | 95,247 | 38,611 | 28,050 |
Accounts payable and accrued expenses | 259,485 | 61,246 | 23,397 |
Air traffic liability | (36,569) | 2,608 | 83,982 |
Frequent flyer deferred revenue | 37,719 | 21,883 | 5,205 |
Provision for return conditions | (5,814) | (11,458) | (16,967) |
Employee benefits | (39,324) | (15,011) | (8,929) |
Income tax paid | (47,547) | (39,098) | (40,212) |
Net cash provided by operating activities | 703,102 | 527,317 | 567,954 |
Cash flows from investing activities: | |||
Acquisition of investments available for sale | 85 | 170 | |
Restricted cash | 378 | (505) | 7,422 |
Interest received | 9,871 | 12,492 | 8,606 |
Advance payments on aircraft purchase contracts | (111,711) | (119,049) | (78,523) |
Acquisition of property and equipment | (430,610) | (215,305) | (210,772) |
Proceeds from sale of property and equipment | 132,369 | 161,910 | 143,362 |
Investment in certificates of bank deposits | 4,640 | 32,709 | |
Redemption of certificates of bank deposits | (15,540) | ||
Acquisition of intangible assets | (116,635) | (30,619) | (21,660) |
Proceeds from acquisition of subsidiary | 6 | ||
Sale of subsidiaries | 18,000 | ||
Acquisition of investments | (78) | ||
Sale of investments | 484 | 296 | |
Net cash used in investing activities | (493,776) | (206,041) | (118,390) |
Cash flows from financing activities: | |||
Proceeds from loans and borrowings | 303,640 | 510,360 | 35,034 |
Repayments of loans and borrowings | (483,473) | (388,096) | (394,939) |
Interest paid | (208,709) | (162,144) | (158,741) |
Sale & finance leaseback transactions | 53,990 | ||
Dividends paid | (35,508) | (25,671) | (5,723) |
Dividends paid to minority shareholding | (56,096) | (130,002) | (26,100) |
Net cash used in financing activities | (426,156) | (195,553) | (550,469) |
Net (decrease) increase in cash and cash equivalents | (216,830) | 125,723 | (100,905) |
Cash on deconsolidation of subsidiary | (1,764) | ||
Effect of movements in exchange rates on cash held | (17,280) | 7,506 | (2,723) |
Cash and cash equivalents at beginning of year | 508,982 | 375,753 | 479,381 |
Cash and cash equivalents at end of year | $ 273,108 | $ 508,982 | $ 375,753 |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Reporting entity | (1) Reporting entity Avianca Holdings S.A. (the “Company” or “Avianca Holdings S.A.”), a Panamanian corporation whose registered address is at Calle Aquilino de la Guardia No. 8 IGRA Building, Panama City, Republic of Panama, was incorporated on October 5, 2009 under the name SK Holdings Limited in and under the laws of the Commonwealth of the Bahamas. Subsequently, the Company changed its corporate name as follows on March 10, 2010 to AviancaTaca Limited, on January 28, 2011 to AviancaTaca Holding, S.A and on March 3, 2011 changed its registered offices to Panama. In 2011 AviancaTaca listed its shares in the Bolsa de Valores de Colombia (“BVC”) and was listed as PFAVTA: CB. On March 21, 2013 the Company changed its legal name from AviancaTaca Holding S.A. to Avianca Holdings S.A. and its listing name to PFAVH: CB. On November 6, 2013, the Company listed its shares on the New York Stock Exchange (NYSE) and is listed as AVH. It’s ultimate holding company is Synergy Aerospace Corp. and directly holding is BRW Aviation LLC. The following are the significant subsidiaries in the Group included within these financial statements: Name of Subsidiary Country of Ownership 2018 2017 Avianca Ecuador Ecuador 99.62 % 99.62 % Aerovias del Continente Americano S.A. (Avianca) Colombia 99.98 % 99.98 % Avianca, Inc. EE.UU. 100 % 100 % Avianca Leasing, LLC EE.UU. 100 % 100 % Grupo Taca Holdings Limited Bahamas 100 % 100 % Latin Airways Corp. Panama 100 % 100 % LifeMiles Ltd. Bermuda 70 % 70 % Avianca Costa Rica S.A. Costa Rica 92.40 % 92.40 % Taca International Airlines, S.A. El Salvador 96.83 % 96.84 % Tampa Cargo Logistics, Inc. EE.UU. 99.98 % 99.98 % Tampa Cargo S.A.S. Colombia 99.98 % 99.98 % Technical and Training Services, S.A. de C.V. El Salvador 99 % 99 % Avianca Peru S.A. Perú 100 % 100 % Vu–Marsat S.A. Costa Rica 100 % 100 % The Company through its subsidiaries is a provider of domestic and international, passenger and cargo air transportation, both in the domestic markets of Colombia, Ecuador, Costa Rica, Nicaragua and Peru and international routes serving North, Central and South America, Europe, and the Caribbean. The Group has entered into a number of bilateral code share alliances with other airlines (whereby selected seats on one carrier’s flights can be marketed under the brand name and commercial code of the other), expanding travel choices to customers worldwide. Marketing alliances typically include: joint frequent flyer program participation; coordination of reservations, ticketing, passenger check-in Cargo operations are carried out by our subsidiaries and affiliates, including Tampa Cargo S.A.S. with headquarters in Colombia and Aerotransporte de Carga Union S.A. de C.V. The Group also undertakes cargo operations through the use of hold space on passenger flights and dedicated freight aircraft. In certain of the airport hubs, the Group performs ground operations for third-party airlines. Additionally, an important part of the cargo business is carried by the companies that operate passenger air transportation. The Group owns and operates a coalition loyalty program called LifeMiles (the “Program”), which is also the frequent flyer Program for the airline subsidiaries of AVH. LifeMiles sells loyalty currency (“Miles”) to its commercial partners and Program members, including to AVH airlines and other airline partners from the Star Alliance network, and collects incentive payments and fees from partners and members of the Program for certain transactions. These partners in turn use Miles to reward their customers, increasing loyalty for their brands. For instance, partner airlines reward passengers with Miles whenever they fly, financial partners reward cardholders with Miles when they spend with their credit cards, and retail partners reward customers with Miles when they purchase merchandise or other goods and services. Miles earned can be exchanged for flights with Avianca, airline members of Star Alliance and other air partners, as well as for other commercial partners’ products and services such as hotel nights, car rentals and retail merchandise, among other rewards. Sale of subsidiaries On December 28, 2018, Avianca Holding entered into an agreement for the sale and transfer of its participation and control in Getcom Int’l Investments S.L., a company incorporated in Spain, to Seger Investments, Corp, a company domiciled in Panama, who already owned 50% equity interest in Getcom Int’l Investments S.L. Pursuant to the terms of such agreement, the Company and the Purchaser also effected the sale in this date. As a result of the transaction, the Company loss the control and ceased to consolidate Getcom Int’l Investments S.L.’s financial statements on December 31, 2018. The following is a summary of the movements in the financial statements due to the sale and corresponding loss of control of Getcom Int’l Investments S.L Amount of cash in Getcom Int’l Investments S.L. $ 1,764 Carrying amount of the Getcom Int’l Investments S.L. assets, without cash 20,561 Carrying amount of the Getcom Int’l Investments S.L. liabilities (6,980 ) Net Assets of the subsidiary $ 15,345 Non-controlling (7,674 ) AVH participation 7,671 Received consideration: Portion of the consideration consisting of cash 18,000 Portion of the consideration consisting of accounts receivables 250 Fair Value of the received consideration $ 18,250 Gains on the sale of the subsidiary $ 10,579 As of December 31, 2018 and 2017, Avianca Holdings S.A. had a total fleet consisting of: 2018 2017 Aircraft Owned/ Financial Operating Lease Total Owned/ Financial Operating Lease Total Airbus A-318 10 — 10 10 — 10 Airbus A-319 23 4 27 23 5 28 Airbus A-320 35 26 61 37 25 62 Airbus A-320 3 4 7 — 2 2 Airbus A-321 7 6 13 5 8 13 Airbus A-321 — 2 2 — — — Airbus A-330 3 7 10 1 9 10 Airbus A-330F 6 — 6 6 — 6 Airbus A-300F-B4F 5 — 5 5 — 5 Boeing 787-8 8 5 13 7 5 12 ATR-42 2 — 2 2 — 2 ATR-72 15 — 15 15 — 15 Boeing 767F 2 — 2 2 — 2 Boeing 767 — — — — 1 1 Cessna Grand Caravan 13 — 13 13 — 13 Embraer E-190 10 — 10 10 — 10 142 54 196 136 55 191 |
Basis of preparation of the con
Basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Basis of preparation of the consolidated financial statements | (2) Basis of preparation of the consolidated financial statements Applied Professional Accounting Standards (a) Statement of compliance The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements of the Group were authorized for issue by the Board of Directors on April , 2019. (b) Basis of measurement The consolidated financial statements have been prepared on a historical cost basis, except for, certain land and buildings (classified as property), derivative financial instruments and plan assets, have been measured at fair value. The carrying values of recognized assets and liabilities that are designated as hedged items in cash flow for changes in fair value that would otherwise be carried at amortized cost are adjusted to recognize changes in the fair values attributable to the risks that are being hedged in effective hedge relationships. (c) Functional and presentation currency The Group’s consolidated financial statements are presented in US Dollars, which is also the parent company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and on disposal of a foreign operation, the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method. (d) Use of estimates and judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The following are critical judgments used in applying accounting policies that may have the most significant effect on the amounts recognized in the Consolidated financial statements: • The Group has entered into operating lease contracts with respect to 54 aircraft. The Group has determined, based on the terms and conditions of the arrangements, that the significant risks and rewards of ownership of all these leased aircraft have not been transferred from the lessor, so it accounts for these lease contracts as operating leases. • The Group operates certain aircraft under a financing structure which involves the creation of structured entities that acquire aircraft with bank and third–party financing. This relates to 100 aircraft from the A319, A320, A321, A330, A330F, ATR72 and B787 families. The Group has determined, based on the terms and conditions of the arrangements, that the Company controls these special purpose entities (“SPE”) and therefore, SPEs are consolidated by the Group and these aircraft are shown in the consolidated statement of financial position as part of Property and Equipment with the corresponding debt shown as a liability. The following assumptions and estimation uncertainties may have the most significant effect on the amounts recognized in the Consolidated financial statements within the next financial year: • The Group periodically evaluates Air traffic liability and any significant adjustment is recorded in the consolidated statements of comprehensive income. These adjustments are mainly due to differences between actual events and circumstances such as historical sales rates and customer travel patterns that may result in refunds, changes or expiration of tickets that differ substantially from the estimates. The Group evaluates its estimates and adjusts deferred revenue for unearned transportation and revenue for passenger transport when necessary. • The Group believes that the tax positions taken are reasonable. However, tax authorities by audits proceedings may challenge the positions taken resulting in additional liabilities for taxes and interest that may become payable in future years. Tax positions involve careful judgment on the part of management and are reviewed and adjusted to account for changes in circumstances, such as lapse of applicable statutes of limitations, conclusions of tax audits, additional exposures derived from new legal issues or court decisions on a particular tax matter. The Group establishes provisions, based on their estimation on feasibility of a negative decision derived from an audit proceeding by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and different interpretations of tax regulations by the taxable entity and the responsible tax authority. Actual results could differ from estimates. • Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized and the tax rates used, based upon the likely timing and the level of future taxable profits together with future tax planning strategies, and the enacted tax rates in the jurisdictions in which the entity operates. • The Group measures administrative land and buildings primarily in Bogota, Medellin, San Jose, and San Salvador at revalued amounts with changes in fair value being recognized in other comprehensive income. The Group engaged independent valuation specialists to assists management in determine the fair value of these assets as of December 31, 2018 and 2017. The valuation techniques used by these specialists require estimates about market conditions at the time of the report. • The Group estimates useful lives and residual values of property and equipment, including fleet assets based on network plans and recoverable value. Useful lives and residual values area revaluated annually taking into account the latest fleet plans and business plan information. In the note 13 provides more information about the net book value of the property and equipment and their respective depreciation charges. • The Group evaluates the carrying value of long-lived assets subject to amortization or depreciation whenever events or changes in circumstances indicate that an impairment may exist. For purposes of this testing, the Company has generally identified the aircraft fleet type as the lowest level of identifiable cash flows. An impairment charge is recognized when the asset’s carrying value exceeds its net undiscounted future cash flows and its fair market value. The amount of the charge is the difference between the asset’s carrying value and fair market value. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment annually or more frequently if events or circumstances indicate that the asset may be impaired. Goodwill and indefinite-lived assets are reviewed for impairment on an annual basis, or on an interim basis whenever a triggering event occurs. • The cost of defined benefit pension plans and other post–employment medical benefits and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its long–term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. For determines the discount rate of the pension plans in Colombia, the management takes as a reference the local market rates. The mortality rate is based on publicly available mortality tables in Colombia. Future salary increases and pension increases are based on expected future inflation rates in Colombia. • As a result of the maturity of loyalty business and given the information available on the history of program and members behavior, in June 2017 the Group implemented a new methodology to estimate breakage, supported by a third valuation specialist to assist management in this process. The change in estimate in accordance with accounting standards was treated prospectively from the date of the change in accordance with IAS 8. In the previous methodology, the breakage was calculated based on historical redemption patterns from older months, based on the aggregate behavior of all members. The new methodology considers the behavior of the members based on a segmentation into statistically homogeneous groups of members to be able to project future behaviors, and therefore is considered to be more robust in predicting redemption rates by segment and breakage estimates of the Program. • The Group recognizes a provision in the balance sheet when a third party account has a legal or implicit obligation as a result of a past event, and it is probable that an exit of liquidity benefits to the obligation is required. In relation to provisions for litigation, the main source of uncertainty is the time of the outcome of the process. • Aircraft lease contracts establish certain conditions in which aircraft shall be returned to the lessor at the end of the contracts. To comply with return conditions, the Group incurs costs such as the payment to the lessor of a rate in accordance with the use of components through the term of the lease contract, payment of maintenance deposits to the lessor, or overhaul costs of components. In certain contracts, if the asset is returned in a better maintenance condition than the condition at which the asset was originally delivered, the Group is entitled to receive compensation from the lessor. The Group accrues a provision to comply with return conditions at the time the asset does not meet the return condition criteria based on the conditions of each lease contract. The recognition of return conditions require management to make estimates of the costs with third parties of return conditions and use inputs such as hours or cycles flown of major components, estimated hours or cycles at redelivery of major components, projected overhaul costs and overhaul dates of major components. At redelivery of aircraft, any difference between the provision recorded and actual costs is recognized in the result of the period. (e) Reclassifications Reclassifications have been made to the prior year consolidated financial statements to conform to the current period presentation: • ‘Air traffic liability’ in the amount of $644,011 in the consolidated statement financial position was bifurcated into ‘air traffic liability’ at December 31, 2017 the amount of $454,018, ‘frequent flyer deferred revenue-current’ of $ 85,207 and ‘frequent flyer deferred revenue-non current’ $104,786 to reflect the current and non-current • Current tax assets for $114,361, non-current • “accounts receivables” for an initial value of ($108,793) (($ 65,516) in 2016), remaining at ($42,244) (($18,177) in 2016), • “accounts payable and accrued expenses” for an initial value of $77,865 ($ 29,101 in 2016) , remaining at $ 61,246 ($ 23,397 in 2016), • “net current tax” for ($ 49,930) (($ 41,635) in 2016). (f) Going Concern On November 29, 2018, BRW and BRW Aviation Holding LLC (BRW Holding) entered into a loan agreement, as borrower and guarantor, respectively, with United Airlines, Inc. (United), as lender, and Wilmington Trust, National Association, as administrative and collateral agent (the United Loan). Neither Avianca Holdings nor any of its subsidiaries are party to the United Loan and they are not obligors thereunder. On April 10, 2019, BRW and United informed Avianca Holdings that BRW was not in compliance with the collateral coverage ratio covenant under the United Loan and that no waiver was in place for such non-compliance. Such non-compliance constitutes an event of the default under the United Loan. The existence of one or more events of default under the United Loan entitles United or its collateral agent to take enforcement action in relation to 78.1% of our common shares, which could result in United or its collateral agent taking steps to enforce the share pledge, including ultimately taking control of our company or selling such control to a third party. There are a number of different definitions of change of control in our financing documents, which management identified upon gaining knowledge of BRW and United having entered into this loan, and any determination of whether a change in control has occurred is a complex assessment and is not without doubt. If United or its collateral agent were to take enforcement action on the share pledge, it could negatively affect our financing agreements and other contracts. As a result, a change in control of Avianca Holdings could adversely affect our financial and operational performance and affect our ability to continue as a going concern. • Our 8.375% Senior Notes due 2020 contain a change of control repurchase provision which provides that if there is a rating downgrade in such notes by each rating agency that rates the Notes, and such downgrade results from a change of control, we will be required to offer to all holders of such notes the right to sell such notes to us for a purchase price of 101% of their principal amount plus accrued and unpaid interest. • Our lenders would have the right to institute insolvency proceedings or foreclose on certain of our assets and we may file for bankruptcy protection under Chapter 11 or otherwise seek to commence a restructuring of our outstanding indebtedness. The aggregate principal amount of our indebtedness that contains change of control events of default, change of control repurchase provisions or cross-default provisions which could be triggered in the circumstances described above is $1,566.1 million, of which $1,006.9 million is secured indebtedness. Some of the actions taken by the management of Avianca Holdings are: • Avianca Holdings is currently in the process of seeking amendments to its existing financing agreements in order to include United, the collateral agent and the independent third party, each pursuant to the United Loan, as permitted holders under such financing agreements in order that enforcement actions, such as the voting of the shares of Avianca Holdings by United, such collateral agent or such independent third party, would not constitute a change of control under any such financing agreement of Avianca Holdings. • Assuming that this approach is accepted by lenders under such financing agreements of Avianca Holdings, United would be able to enforce under the share pledge in connection with the United Loan to take ownership of the shares of Avianca Holdings without causing a change of control under any of the financing agreements of Avianca Holdings. • As referenced in note 38 of the financial statements Avianca Holdings has obtained an amended credit and guaranty agreement as well as an acknowledgment by Banco de Bogota, which solve the non-compliance of the company under the Banco de Bogota loan for the December 31, 2018. In addition to the aforementioned paragraphs, Avianca Holdings is not aware and has not been informed of any enforcement action in conjunction with the share pledge. As such, the management of Avianca Holdings has assessed the risks described above and considers that it has the ability to continue as a going concern, which is the basis for the preparation of these financial statements. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Significant accounting policies | (3) Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently by all the Company’s entities of the Group. This is the first set of the Group’s annual financial statements in which IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments have been applied. Changes to significant accounting policies are described in Note 4. (a) Basis of consolidation Subsidiaries are entities controlled by Avianca Holdings S.A. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases, in accordance with IFRS 10. Control is established after assessing the Group’s ability to direct the relevant activities of the investee, its exposure and rights to variable returns, and its ability to use its power to affect the amount of the investee’s returns. The accounting policies of subsidiaries have been aligned when necessary with the policies adopted by the Group. The consolidated financial statements also include 52 special purpose entities that relate primarily to the Group’s aircraft leasing activities. These special purpose entities are created in order to facilitate financing of aircraft with each SPE holding a single aircraft or asset. In addition the consolidated financial statements includes 58 entities that are mainly investment vehicles, personnel employers and service providers within the consolidated entities. The Group has consolidated these entities in accordance with IFRS 10. When the sale of a subsidiary occurs and no percentage of participation is retained on it, the Group derecognizes the assets and liabilities of the subsidiary, the non-controlling If the Group retains a percentage of participation in the subsidiary sold, and does not represent control, this is recognized at its fair value on the date when control is lost, the amounts previously recognized in other comprehensive income are accounted for as if the Group had directly disposed of the related assets and liabilities, which may cause these amounts to be reclassified to profit or loss. The retained percentage valued at its fair value is subsequently accounted for using the equity method. (b) Transactions eliminated on consolidation Intercompany balances and transactions, and any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. (c) Foreign currency Foreign currency transactions These consolidated financial statements are presented in US dollars, which is the Group’s functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the respective spot rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the spot rate of exchange ruling at the reporting date. All differences are recognized currently as an element of profit or loss. Non–monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non–monetary items measured at a revalued amount in a foreign currency are translated using the exchange rates at the date when the fair value was determined. (d) Foreign operations Assets and liabilities of foreign operations included in the consolidated Statement of Financial Position are translated using the closing exchange rate on the date of the consolidated statement of financial position. The revenues and expenses of each income statement account are translated at quarterly average rates; and all the resultant exchange differences are shown as a separate component in other comprehensive income. (e) Business combinations Business combinations are accounted for using the acquisition method in accordance with IFRS 3 “Business Combinations”. The consideration for an acquisition is measured at acquisition date fair value of consideration transferred including the amount of any non–controlling interests in the acquiree. Acquisition costs are expensed as incurred and included in administrative expenses. When the Group acquires a business, it measures at fair value the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred to the seller, including the amount recognized for non–controlling interest over the fair value of identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purposes of impairment testing, goodwill acquired is, from the acquisition date, allocated to each of the Group’s cash–generating units that are expected to benefit from the acquisition, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. (f) Revenue recognition The group has initially applied IFRS 15 from January 1, 2018. The effect of initially applying IFRS 15 described in note 4. (i) Passenger and cargo transportation The Group recognizes revenues from passenger, cargo and other operating income in consolidated statements of comprehensive income. Passenger income, which includes transportation, baggage fees, fares, and other associated ancillary income, is recognized when transportation is provided. Cargo revenues are recognized when the shipments are delivered. Other operating income is recognized as the related performance obligations are met. The tickets and other revenues related to transportation that have not yet been provided are initially deferred and recorded as “Air traffic liability” in the consolidated statement of financial position, deferring the revenue recognition until the trip occurs. For trips that have more than one flight segment, the Group considers each segment as a separate performance obligation and recognizes the revenues of each segment as the trip takes place. Tickets sold by other airlines where the Group provides transportation are recognized as passenger income at the estimated value that will be billed to the other airline when the trip is provided. Reimbursable tickets usually expire after one year from the date of issuance. Non-refundable The various taxes and fees calculated on the sale of tickets to customers are collected as an agent and sent to the tax authorities. The Group records a liability when taxes are collected and deregisters it when the government entity is paid. (ii) Frequent flyer The Group has a frequent flyer program “LifeMiles”, that is managed by LifeMiles Ltd, a subsidiary of the Group, which airlines buy lots of miles to be granted to member costumers of the program. The purpose of the program is designed to retain and increase travelers’ loyalty by offering incentives to travelers for their continued patronage. Under the LifeMiles program, miles are earned by flying on the Group’s airlines or its alliance partners and by using the services of program partners for such things as credit card use, hotel stays, car rentals, and other activities. Miles are also directly sold through different distribution channels. Miles earned can be exchanged for flights or other products or services from alliance partners. The liabilities for the accumulated miles are recognized under “Frequent Flyer Deferred Revenue” (See Note 21) until the miles are redeemed. The Group recognizes the revenue for the redemption of miles at the time of the exchange of miles. They are calculated based on the number of miles redeemed in a given period multiplied by the cumulative weighted average yield (CWAY), which leads to the decrease of “ Frequent Flyer Deferred Revenue “. The price of the miles is determinited according with the contracts. The Group reviews it Breakage estimate during the year, based upon the latest available information regarding redemption and expiration patterns. If a change in the estimate is presented, the adjustments will be accounted for prospectively through the income, with an adjustment of “update” to the corresponding deferred income balances. (g) Income tax Income tax expense comprises current and deferred taxes and is accounted for in accordance with IAS 12 “Income Taxes”. (i) Current income tax Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognized directly in equity or in other comprehensive income recognized in the consolidated statement of changes in equity or consolidated statement of comprehensive income, respectively. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. (ii) Deferred income tax Deferred tax is recognized for temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are recognized to the extent that is probable that the temporary differences, the carry forward of unused tax credits and any unused tax losses can be utilized, except: • Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. • In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax laws enacted or substantively enacted at the reporting date. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re–assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax relating to items recognized outside profit or loss is recognized in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities. (h) Property and equipment (i) Recognition and measurement Flight equipment, property and other equipment are measured at cost less accumulated depreciation and accumulated impairment losses in accordance with IAS 16 “Property, Plant and Equipment”. Property, operating equipment, and improvements that are being built or developed for future use by the Group are recorded at cost as under–construction assets. When under–construction assets are ready for use, the accumulated cost is reclassified to the respective property and equipment category. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gain and losses on disposal of an item of flight equipment, property and equipment are determined by comparing the proceeds from disposal with the carrying amount. (ii) Subsequent costs The costs incurred for major maintenance of an aircraft’s fuselage and engines are capitalized and depreciated over the shorter period to the next scheduled maintenance or return of the asset. The depreciation rate is determined according to the asset’s expected useful life based on projected cycles and flight hours. Routine maintenance expenses of aircraft and engines are charged to income as incurred. (iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is recognized in the consolidated statement of comprehensive income on a straight–line basis over the estimated useful lives of flight equipment, property and other equipment, since this method most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Rotable spare parts for flight equipment are depreciated on the straight–line method, using rates that allocate the cost of these assets over the estimated useful life of the related aircraft. Land is not depreciated. Estimated useful lives are as follows: Estimated useful life (years) Flight equipment: Aircraft 10 – 30 Aircraft components and engines Useful life of fleet associated with component or engines Aircraft major overhaul repairs 4 – 12 Rotable parts Useful life of fleet associated Leasehold improvements Lesser of remaining lease term and estimated useful life of the leasehold improvement Administrative Property 20 – 50 Vehicles 2 – 10 Machinery and equipment 2 – 15 Residual values, amortization methods and useful lives of the assets are reviewed and adjusted, if appropriate, at each reporting date. The carrying value of flight equipment, property and other equipment is reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable and the carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The Group receives credits from manufacturers on acquisition of certain aircraft and engines that may be used for the payment of maintenance services, training, acquisition of spare parts and others. These credits are recorded as a reduction of the cost of acquisition of the related aircraft and engines and against other accounts receivable. These amounts are then charged to expense or recorded as an asset, when the credits are used to purchase additional goods or services. These credits are recorded within other liabilities in the consolidated statement of financial position when awarded by manufacturers. (iv) Revaluation and other reserves Administrative property in Bogota, Medellín, El Salvador, and San Jose is recorded at fair value less accumulated depreciation on buildings and impairment losses recognized at the date of revaluation. Valuations are performed with sufficient frequency to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. A revaluation reserve is recorded in other comprehensive income and credited to the asset revaluation reserve in equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognized in profit or loss, the increase is recognized in profit and loss. A revaluation deficit is recognized in the other comprehensive income, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation reserve. Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings. (i) Non-current Non-current Non-current Property and equipment and intangible assets, once classified as held for sale, are not subject to depreciation or amortization. (j) Leased assets Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases in accordance with IAS 17 “Leases”. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in interest expense in the consolidated statement of comprehensive income. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the lease term. Operating lease payments are recognized as an operating expense in the consolidated statement of comprehensive income during the lease term. Gains or losses related to sale–leaseback transactions classified as an operating lease after the sale are accounted for as follows: (i) They are immediately recognized as other (expense) income when it is clear that the transaction is established at fair value; (ii) If the sale price is below fair value, any profit or loss is immediately recognized as other (expense) income, however, if the loss is compensated by future lease payments at below market price, it is deferred and amortized in proportion to the lease payments over the contractual lease term; (iii) In the event of the sale price is higher than the fair value of the asset, the value exceeding the fair value is deferred and amortized during the period when the asset is expected to be used. The amortization of the gain is recorded as a reduction in lease expenses. If the sale–leaseback transactions result in financial lease, any excess proceeds over the carrying amount shall be deferred and amortized over the lease term as an other income. (k) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets in accordance with IAS 23 “Borrowing Costs”. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. (l) Intangible assets Intangible assets acquired separately are initially measured at cost in accordance with IAS 38 “Intangible Assets”. The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in the consolidated statement of comprehensive income in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or in the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the consolidated statement of comprehensive income within depreciation and amortization. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash–generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Gains and losses arising from the de–recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the consolidated statement of comprehensive income when the asset is derecognized. Goodwill is measured initially at cost, represented by the excess of the sum of the consideration transferred and the amount recognized for the non-controlling After initial recognition, Goodwill is measured at cost less any accumulated impairment loss. For the purpose of impairment tests, Goodwill acquired in a business combination is assigned, from the date of acquisition, to each company acquired, that we consider a cash generating unit. The Group’s intangible assets include the following: (i) Software and webpages Acquired computer software licenses are capitalized on the basis of cost incurred to acquire, implement and bring the software into use. Costs associated with maintaining computer software programs are expensed as incurred. In case of development or improvement to systems that will generate probable future economic benefits, the Group capitalizes software development costs, including directly attributable expenditures on materials, labor, and other direct costs. Acquired software cost is amortized on a straight-line basis over its useful life. Licenses and software rights acquired by the Group have finite useful lives and are amortized on a straight–line basis over the term of the contract. Amortization expense is recognized in the consolidated statement of comprehensive income. (ii) Routes and trademarks Routes and trademarks are carried at cost, less any accumulated amortization and impairment. The useful life of intangible assets associated with routes and trademark rights are based on management’s assumptions of estimated future economic benefits. The intangible assets are amortized over their useful lives of between two and thirteen years. Certain routes and trademarks have indefinite useful lives and therefore are not amortized, but tested for impairment at least at the end of each reporting period. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. The Group expects to provide an indefinite service on the routes it has determined with an indefinite useful life and expects the support infrastructure to be maintained at those airports during the entire time that the routes exist. The analysis of demand and cash flows supports these assumptions because the facts and circumstances support the ability of the entity to continue providing air service indefinitely. (iii) Contract–based intangible assets The useful life of intangible assets associated with contract rights and obligations is based on the term of the contract and are carried at cost, less accumulated amortization and related impairment. (iv) Other intangible rights Contains projects related to technological developments to generate efficiencies in the operation. Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate: • The technical feasibility of completing the intangible asset so that the asset will be available for use or sale • Its intention to complete and its ability and intention to use or sell the asset • How the asset will generate future economic benefits • The availability of resources to complete the asset • The ability to measure reliably the expenditure during development Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in cost of sales. During the period of development, the asset is tested for impairment annually. (m) Financial instruments – initial recognition, classification and subsequent measurement (i) Financial assets Financial assets are classified in the initial recognition as follows: • Measured at amortized cost, • At fair value through changes in other comprehensive income (OCI) and • At fair value through profit or loss. The classification of financial assets in the initial recognition depends on the characteristics of the contractual cash flow of the financial asset and the Group’s business model for its administration. With the exception of commercial accounts receivable that do not contain a significant financing component, the Group initially measures a financial asset at its fair value plus, (in the case of a financial asset that does not obtain profit or loss), transaction costs. Commercial accounts receivable that do not contain a significant financing component are measured at the transaction price determined in accordance with IFRS 15. For a financial asset to be classified and measured at amortized cost or at fair value through OCI, it must give rise to cash flows that are “only capital and interest payments (OCI)” over the outstanding principal amount. This evaluation is known as the SPPI test and is performed at the instrument level. The Group’s business model for the management of financial assets refers to how it manages its financial assets to generate cash flows. The business model determines whether cash flows will result from the collection of contractual cash flows, the sale of financial assets or both. Purchases or sales of financial assets that require the delivery of assets within a time frame established by regulation or convention in the market (regular operations), are recognized on the trading date, that is, the date on which the Group Commit to buy or sell the asset. Subsequent measurement For subsequent measurement purposes, financial assets are classified into four categories: • Financial assets at amortized cost (debt instruments) • Financial assets at fair value through OCI with effect on accumulated gains and losses (debt instruments) • Financial assets designated at fair value through OCI without effect on accumulated gains and losses upon derecognition (equity instruments) • Financial assets at fair value through profit or loss Financial assets at amortized cost (debt instruments) The Group measures financial assets at amortized cost if the following conditions are met: • The financial asset is maintained within a business model with the objective of maintaining financial assets in order to collect the contractual cash flows. • The contractual terms of the financial asset give rise on specific dates to the cash flows that are only payments of the principal and interest on the principal amount pending payment. Financial assets at amortized cost are subsequently measured using the effective interest method (EIM) and are subject to impairment. Profits and losses are recognized in results when the asset is written off, modified or impaired. The Group’s financial assets at amortized cost include trade accounts receivable, accounts receivable with related parties, accounts receivable from employees and other non-current Financial assets at fair value through OCI (debt instruments) The Group measures debt instruments at fair value through OCI if the following conditions are met: • The financial asset is maintained within a commercial model with the objective of maintaining both to collect contractual cash flows and sell. • The contractual terms of the financial asset give rise on specific dates to the cash flows that are only payments of the principal and interest on the principal amount pending payment. For debt instruments at fair value through OCI, interest income, exchange revaluation and impairment losses or reversals are recognized in the other comprehensive income and are calculated in the same manner as for financial assets measured at amortized cost. The remaining changes in fair value are recognized in OCI. After derecognition, the change in accumulated fair value recognized in OCI is recognized in profit or loss. Financial assets designated at fair value through OCI (equity instruments) After initial recognition, the Group may elect to irrevocably classify its capital investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments. The classification is determined instrument by instrument. Gains and losses on these financial assets are never recognized as gains or losses. Dividends are recognized as other income in the income statement when the right to payment has been established, except when the Group benefits from such income as a recovery of part of the cost of the financial asset, in which case such earnings are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment evaluation. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated at initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the short term. Derivatives, including embedded implicit derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not only capital and interest payments are classified and measured at fair value through profit or loss, regardless of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments can be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are recorded in the statement of financial position, at fair value with net changes, recognized in the statement of comprehensive income. This category includes derivatives and listed equity investments that the Group had not irrevocably chosen to be classified at fair value through OCI. Dividends on listed equity investments are also recognized as other income in the statement of comprehensive income when the right to payment has been established. (ii) Impairment of financial assets The Group recognizes a reserve for expected credit losses (ECL) for all debt instruments that are not held at fair value through profit or loss. The ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. For trade accounts receivable and contractual assets, the Group applies a simplified approach when calculating ECL. Therefore, the Group does not track changes in credit risk, but recognizes a loss adjustment based on ECL for life at each reporting date. The Group has established a provision matrix that is based on its historical experience of credit losses, adjusted by specific prospective factors for debtors and the economic environment. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized primarily when: • The rights to receive cash flows from the asset have expired • The Group has transferred its rights to receive cash flows from the asset or has assumed the obligation to pay the cash flows received in full without significant delay to a third party under a “transfer” agreement, and (a) the Group has transferred substantially all the risks and benefits of the asset, or (b) the Group has not transferred or retained substantially all the risks and benefits of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a transfer agreement, it evaluates whether an |
New and amended standards and i
New and amended standards and interpretations | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
New and amended standards and interpretations | (4) New and amended standards and interpretations 4.1 Amendments to IFRSs that are mandatorily effective for the current year The Group has applied for the first time some standards and modifications to the standards, which were effective for the periods beginning on January 1, 2018. The Group has not applied any standard, interpretation or modification that has been issued but is not yet effective. The Group applied for the first time IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, this application generated a decrease in equity of $199,549 distributed as follows: $199,765 for application of IFRS 15 and ($216) for IFRS 9. IFRS 15 Revenue from Contracts with Customers In May 2014, the IASB issued IFRS 15, which establishes a five-step model to determine the time and amount by which revenues should be recognized. The new standard replaces existing revenue recognition guidelines, including IAS 18 Revenue from Ordinary Activities, IAS 11 Construction Contracts and IFRIC 13 Loyalty Programs with Customers. The standard was effective for annual periods beginning on January 1, 2018 and its early adoption is allowed. For its adoption, the standard allows choosing between the total retrospective method and the cumulative effect method. The Group adopted IFRS 15 on January 1, 2018, using the cumulative effect method that does not require the restatement of previous financial statements. The Group completed its qualitative and quantitative assessment of the impacts of the adoption of IFRS 15 in its consolidated financial statements. The evaluation included, among others, the following activities: • Analysis of the contracts concluded with clients and their main characteristics; • Identification of the performance obligations included in said contracts; • Determination of the price of the transaction and the effects caused by the variable considerations; • Analysis of the payments made to customers, including their proper classification and presentation in the income statement (net of income); • Assignment of the transaction amount to each performance obligation; • Analysis of the moment in which the income must be recognized by the Group, either at a moment in time or in the course of time, as appropriate; • Analysis of the impacts that the adoption of IFRS 15 has originated in the Group’s accounting policies, processes and internal controls, as well as; The accounting policies at the consolidated level, as well as at the level of the subsidiaries in relation to the recognition of income, had already been subject to the approval of the Group’s Audit Committee and establish the new bases for accounting for the revenue from contracts with customers under IFRS 15. Likewise, the Group analyzed the aspects related to internal control derived from the adoption of IFRS 15, with the objective of ensuring that the Group’s internal control environment is appropriate for the purposes of the financial reporting process. The group recognizes revenue from the following main sources: (i) Passengers (ii) Cargo and others Management used the alternative transition method to adopt IFRS 15. The majority of the revenues are generated from the ticket sale, which will continue to be recognized as the flight service is provided. The evaluation included an estimate of the impact that the new revenue standard will have on the accounting of revenue from passengers and cargo and others, both with all the sub-revenue Upon adoption of IFRS15, revenues for ancillaries associated with changes in date, destination or passenger name are recognized at the time of use date and classified in “Passenger revenue”. Previously this ancillaries, were recognized when changes were requested and it was classified under “Cargo and other revenue”. Under IFRS15, ancillaries revenues are not considered to be a separate performance obligation, and are combined with the existing performance obligation and accounted for as if they were part of the original ticket sale transaction. Therefore, the original price of the ticket and the amount paid for the ancillaries are combined and considered to be one single performance obligation, which is deferred and recognized as “Passenger revenues” when the related consideration is satisfied. The impact of the change was USD $6,840 and resulted upon adoption, in an increase of the air traffic liability. For revenue arrangements associated with the LifeMiles loyalty program, the Group concluded that there is only one performance obligation, and as such, that loyalty revenue should be recognized upon the redemption of miles by its customers. In accordance with IAS 18 and with IFRIC 13—Customer Loyalty Programs, prior to 2018, the Group allocated the fair value of consideration received or receivable from a sale of Miles transaction (or gross billing with respect to sale of Miles) between the fair value of award credits and other components of the sale (initial sales component). The Group recorded the fair value of award credits in a given period as deferred revenue and recognized the fair value of award credits as revenue upon the redemption of those Miles. The Group estimated the fair value of award credits using cost of rewards per mile redeemed, as adjusted by its estimate of breakage (the cost of rewards per mile redeemed is obtained using significant observable inputs (Level 2) in accordance with IFRS 13 Fair Value Measurements). The difference between gross billings with respect to sale of Miles for the period and fair value of award credits sold was recognized as revenue at the time of each sales transaction. The Group referred to such revenue from the sale of Miles as the “initial sales component.” The Group recognized revenues generated in connection with incentive payments and fees as such payments and fees are charged. Under IFRS 15, the Group record the fair value of the consideration received or receivable from the sale of Miles as deferred revenue and do not recognize an initial sales component in connection with such sale. The Group recognizes the fair value of the consideration received in respect of Miles sold as revenue upon redemption of those Miles. Under IFRS 15, the Group continues to recognize revenues generated in connection with incentive payments and fees as such payments and fees are earned. The Group recognizes breakage revenue over time on a pro-rata basis per mile redeemed based on the number of Miles redeemed in a period and its expectation of future redemptions. As a result, upon adoption of IFRS 15 on January 1, 2018, the Group recorded an increase to Frequent flyer deferred revenue of $192,925. Our analysis also included the evaluation of the costs to obtain and to fulfill a contract which we anticipate, given the current accounting policy in effect, will not have a significant impact as a result of the adoption of the new standard. The current accounting policy of the Group is to recognize certain bonus associated with different commercial agreements as other income, when the agreement is signed. At the date of transition, the Group recognized non-material Impacts of the IFRS 15 standard adoption (As of January 1, 2018) The effects of the adoption of IFRS 15 standard in the consolidated financial statements position of the Group’s was as follows: Reported as of Application of the new Reported as of Deferred revenue (1)(2) Total Assets $ 6,861,396 — $ 6,861,396 Total Liabilities 5,521,696 199,765 5,721,461 Total Equity 1,339,700 (199,765 ) 1,139,935 (1) An adjustment of $192,925, was recognized as an increase to Frequent flyer deferred revenue. This adjustment did not have a related tax impact due to is originated in LifeMiles Ltd. that is considered an exempted company for Bermuda tax purposes until March , 2035 with the option of extending this term. (2) An adjustment of $6,840 was recognized to an increase to air traffic liability, in exchange for date, change of destination and name changes. This adjustment did not have a related tax impact. The effects of the adoption of IFRS 15 standard to Non-controlling Impacts of the IFRS 15 standard adoption (for the year ended December 31, 2018) The effects on the adoption of the standard in the consolidated financial statements of comprehensive income of the Group was as follows: Amounts for the Application of the new standard Amounts for the Deferred revenue adjustment (1) Reclasifications (2) Operating revenue: Passager $ 4,059,170 $ (8,239 ) $ 23,460 $ 4,074,391 Cargo and other 839,899 — (23,460 ) 816,439 Total operating revenue 4,899,069 (8,239 ) — 4,890,830 Total operating expenses 4,658,714 — — 4,658,714 Operating profit 240,355 (8,239 ) — 232,116 Other no operating Income and expenses (210,760 ) — — (210,760 ) Profit before tax 29,595 (8,239 ) — 21,356 Income tax expense (20,213 ) — — (20,213 ) Net loss for the year $ 9,382 $ (8,239 ) $ — $ 1,143 (1) Corresponds to the effect of the change in the recognition of some ancillaries until the date of flight and income from the sale of miles at the time of redemption. (2) In accordance with the recognition criteria of IFRS 15, the reclassification associated with the items for the income of ancillaries is directly related to the income of passengers. IFRS 9 Financial Instruments In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 “Financial Instruments: Recognition and Measurement” and all previous versions of IFRS 9. IFRS 9 includes three aspects of accounting for financial instruments: classification and measurement, impairment and hedge accounting. Retrospective application is required but the presentation of comparative information is not mandatory, except for hedge accounting, for which the requirements are applied prospectively, with some exceptions. Due to the transition method chosen by the Group in applying IFRS 9, comparative information throughout these financial statements has not generally been restarted to reflect its requirements. Avianca Holdings adopted the new standard on the required effective date. During 2017, the Group carried out a detailed impact assessment of the three aspects of IFRS 9. (a) Classification and measurement The Group measures all financial assets that under IAS 39 were measured at fair value. Loans and commercial accounts receivable are maintained to collect the contractual cash flows and are expected to generate cash flows that represent only capital and interests payments. The Group analyzed the contractual characteristics of the cash flows of these instruments and concluded that they meet the criteria for measuring amortized cost according to IFRS 9. Therefore, reclassification is not required for these instruments. (b) Impairment IFRS 9 requires the Group to record the expected credit losses on all its debt securities, loans and trade accounts receivable, either for 12 months or for life. The Group applied the simplified approach and record the expected lifetime losses on all trade accounts receivable. The Group determined that, due to the unsecured nature of its loans and accounts receivable, the loss allowance will decrease by $216 upon adoption with the corresponding related decrease in the deferred tax asset of $71has determined that, due to the unsecured nature of its loans and accounts receivable, the impact of the application of this standard will not be material. (c) Hedge accounting The Group determined that all existing hedging relationships currently designated as effective hedging relationships will continue to qualify for hedge accounting under IFRS 9. The Group has opted not to retrospectively apply IFRS 9 in the transition to hedges where the Group excluded the forward points the coverage designation according to IAS 39. As IFRS 9 does not change the general principles of how an entity accounts for effective hedges, the application of the hedging requirements of IFRS 9 do not have a significant impact on the consolidated financial statements of the Group. IFRIC 22- This Interpretation provides guidance on the determination of the date of transactions for purposes of establishing the exchange rate to be used in the initial recognition of the related asset, expense or income (or the corresponding part thereof), and the derecognition of an non-monetary non-monetary This Interpretation is effective for the periods beginning on or after January 1, 2018 and this did not have a significant effect on the Group’s consolidated financial statements, because the Group already accounts for transactions that involve payment or receipt of an advance consideration in a foreign currency in a manner consistent with the interpretation. 4.2 Standards issued but not yet effective The group has not applied the following new and revised IFRSs that are not yet effective: IFRS 16 Leases IFRIC 23 Uncertainty over Income Tax Treatments Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted. IFRS 16 Leases IFRS 16, Leases, must be applied from January 1, 2019. Currently, the payment obligations arising from operating leases only have to be disclosed in the Notes. The new standard requires lessees to recognize a right-of-use The lease liability will be measured at the present value of the unpaid lease payments. Lease payments will include fixed and in-substance non-lease The group will initially measure the value of the right-of-use The Group will adopt the modified retrospective approach to introduction of this standard and the practical expedient to adopt the definition of lease at the time of the transition. Under this approach, the comparable figures for the previous year are not adjusted and all adjustment effects as of January 1, 2019 are therefore to be presented as adjustments to retained earnings, The Group are completing its assessment of the impacts of the adoption of IFRS 16 in its consolidated financial statements. The evaluation includes: • Aircraft Leases: As of December 31, 2018, the Group had 54 aircraft under operating leases, and The Group expects to record such aircraft as right-of-use Right-of-use right-of-use end-of-lease right-of-us right-of-use • Property Leases The Group has leases related to airport terminal operations space and other real states. For leases related to terminal operations space, there are generally effective substitution rights in the hands of the lessor and therefore these are not considered lease contracts under the standard. Airport terminal contracts with variable leases payments will also be excluded since variable lease payments, other than those bases on an index or rate, are excluded from the measurement of the lease liability. The property leases that are expected to be recorded as right-of-use • Other Leases Other leases related to vehicles, machinery, technology Equipment has been evaluated, discarding short-term contracts and low-value right-of-use • Main Impacts At the date of initial application, the Group will expect an increase pre-tax The impacts on the income statement, will be an elimination of aircraft rent and will be replaced by a depreciation of the right-use IFRIC 23- The interpretation refers to income tax accounting in cases in which the tax treatment includes uncertainties that affect the application of IAS 12 and does not apply to taxes that are outside the scope of this standard, nor does it include specific requirements related to it. with interests and penalties associated with uncertain tax treatments. The interpretation establishes the following: • Whether the Group considers uncertain tax treatments separately . • The assumptions made by the entity about the examination of tax treatments by the corresponding authorities. • The manner in which the entity determines the fiscal profit (or fiscal loss), fiscal bases, unused fiscal losses or credits, and fiscal rates. • The manner in which the entity considers changes in events and circumstances. The Group must determine if it evaluates each uncertain treatment separately or in groups, using the approach that best predicts the resolution of uncertainties. The group will apply its interpretation from its effective date. No significant impacts are expected in the application of this standard. Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions The IASB issued amendments to IFRS 2 Share-based Payment that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The Group’s accounting policy for cash-settled share based payments is consistent with the approach clarified in the amendments. In addition, the Group has no share-based payment transaction with net settlement features for withholding tax obligations . Therefore, these amendments do not have any impact on the Group’s consolidated financial statements. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Segment information | (5) Segment information The Group reports information by segments as established in IFRS 8 “Operating segments”. The Group has two reportable segments, as follows: • Air transportation: Corresponds to passenger and cargo operating revenues on scheduled flights and freight transport, respectively. • Loyalty: Corresponds to the coalition loyalty program, the frequent flyer program for the airline subsidiaries of Avianca Holdings S.A. The Board of Directors is the Chief Operating Decision Maker (CODM) and monitors the operating results of its reportable segment separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on statement of comprehensive income and is measured consistently with the Group’s consolidated financial statements. The Group’s operational information by reportable segment for the year ended December 31, 2018 are as follows: For the year ended December 31, 2018 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 4,577,021 $ 313,809 — $ 4,890,830 Inter-segment 148,882 1,867 (150,749 ) — Total operating revenue 4,725,903 315,676 (150,749 ) 4,890,830 Operating expenses 4,226,414 193,269 (150,357 ) 4,269,326 Depreciation, amortization and impairment 388,960 12,976 (12,548 ) 389,388 Operating profit 110,529 109,431 12,156 232,116 Interest expense (182,230 ) (30,064 ) — (212,294 ) Interest income 8,062 2,053 — 10,115 Derivative instruments 567 (827 ) — (260 ) Foreign exchange (9,238 ) 18 — (9,220 ) Equity method profit 899 — — 899 Income tax expense (20,258 ) 45 — (20,213 ) Net (loss) profit for the period $ (91,669 ) $ 80,656 $ 12,156 $ 1,143 Total Assets $ 7,098,272 $ 248,937 $ (228,566 ) $ 7,118,643 Total Liabilities $ 5,426,718 $ 862,834 $ (163,370 ) $ 6,126,182 The Group’s operational information by reportable segment for the year ended December 31, 2017 are as follows: For the year ended December 31, 2017 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 4,167,658 $ 274,026 $ — $ 4,441,684 Inter-segment 112,037 4,366 (116,403 ) — Total operating revenue 4,279,695 278,392 (116,403 ) 4,441,684 Operating expenses 3,797,456 156,627 (119,456 ) 3,834,627 Depreciation and, amortization 313,314 12,876 (12,777 ) 313,413 Operating profit 168,925 108,889 15,830 293,644 Interest expense 174,657 8,675 — 183,332 Interest income (11,998 ) (1,550 ) — (13,548 ) Derivative instruments 2,536 — — 2,536 Foreign exchange 20,161 2 — 20,163 Income tax expense 19,457 652 — 20,109 Equity method profit 980 — — 980 Net (loss) profit for the Period $ (34,908 ) $ 101,110 $ 15,830 $ 82,032 Total Assets $ 6,796,848 $ 248,919 $ (184,371 ) $ 6,861,396 Total Liabilities $ 5,082,763 $ 545,951 $ (107,018 ) $ 5,521,696 The Group’s operational information by reportable segment for the year ended December 31, 2016 are as follows: For the year ended December 31, 2016 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 3,898,271 $ 240,067 $ — $ 4,138,338 Inter-segment 89,071 3,834 (92,905 ) — Total operating revenue 3,987,342 243,901 (92,905 ) 4,138,338 Cost of loyalty rewards 53,901 120,589 (78,785 ) 95,705 Operating expenses 3,509,122 19,617 (14,122 ) 3,514,617 Depreciation and, amortization 269,534 12,789 (12,777 ) 269,546 Interest expense 172,381 249 — 172,630 Interest income (13,960 ) 906 — (13,054 ) Derivative instruments (3,321 ) — — (3,321 ) Foreign exchange 23,952 (13 ) — 23,939 Income tax expense 32,384 1,706 — 34,090 Net (loss) profit for the Period $ (56,651 ) $ 88,058 $ 12,779 $ 44,186 Total Assets $ 6,328,740 $ 227,382 $ (204,787 ) $ 6,351,335 Total Liabilities $ 4,842,190 $ 203,542 $ (114,658 ) $ 4,931,074 (1) 2018 Financial Information is prepared under IFRS 15 “Revenue from Contracts with clients” and for 2017 and 2016 it was prepared under IFRIC13 “ Customer loyalty programs” (2) Loyalty revenue for miles redeemed is allocated to passenger revenue and, other loyalty revenue is recorded in other revenue. The results, assets and liabilities allocated to the loyalty segment reportable correspond to those attributable directly to the subsidiary LifeMiles Corp., and exclude assets, liabilities, income and expenses of the loyalty program recognized by the Group’s Subsidiaries. Inter-segment revenues are eliminated upon consolidation and reflected in the “Eliminations” column. The Group’s revenues by geographic area for the years ended December 31, 2018, 2017 and 2016 are as follows: For the year ended December 31, 2018 2017 2016 United States of America $ 462,091 $ 565,910 $ 539,365 Central America and the Caribbean 248,896 539,682 442,841 Colombia 2,580,979 1,961,600 1,831,218 South America (excluding–Colombia) 732,586 933,569 840,934 Other 866,278 440,923 483,980 Total operating revenue $ 4,890,830 $ 4,441,684 $ 4,138,338 The Group allocates revenues by geographic area based on the point of origin of the flight. Non-current |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Financial risk management | (6) Financial risk management The Group has exposure to different risks from its use of financial instruments, namely, liquidity risk, fuel price risk, foreign currency risk, interest rate risk, credit risk and capital risk management. The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board has established mechanisms for developing and monitoring the Group’s risk management policies. The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. (a) Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Due to the seasonal and cyclical nature of the business and the liquidity needs for the operations and for the investments derived from the incorporation of new aircraft and the renewal of its fleet, the Group requires a very prudent management of its liquidity. This management consists of insuring, as much as possible, that there will always be sufficient liquidity to meet its obligations when they mature, under normal conditions and stress situations due to seasonality of liquidity. This management focuses on obtaining sufficient and adequate financing for its fleet assets, adapting the terms of new fleet incorporations to the growth and renewal strategies with the aim of reducing commitments of advance payment of investments above the necessary thresholds and renegotiating the long-term structural financing with sufficient margin to avoid incurring unacceptable losses or risk the reputation of the Group. As of December 31, 2018 and 2017, the Group had unsecured revolving lines of credit with different financial institutions in the aggregate amounts of $423,880, and $115,742, respectively. As of December 31, 2018 and 2017, there were $109,059, and $14,123 unused credit line balances, respectively, under these facilities. These revolving lines of credit are preapproved by the financial institutions and the Group may withdraw funds if it has working capital requirements. The following are the contractual maturities of non–derivative financial liabilities, including estimated interest payments. Amounts under the “Years” columns represent the contractual undiscounted cash flows of each liability. As of December 31, 2018 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 119,866 $ 121,194 $ 121,194 $ — $ — $ — $ — Long–term Debt 3,300,422 3,992,304 627,272 595,696 645,103 690,558 1,433,675 Bonds 587,292 649,020 75,988 573,032 — — — Total debt 4,007,580 4,762,518 824,454 1,168,728 645,103 690,558 1,433,675 Accounts payable 437,506 437,506 437,506 — — — — Accrued Expenses 108,707 108,707 108,707 — — — — Contractual maturities $ 4,553,793 $ 5,308,731 $ 1,370,667 $ 1,168,728 $ 645,103 $ 690,558 $ 1,433,675 As of December 31, 2017 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 79,263 $ 80,459 $ 80,459 $ — $ — $ — $ — Long–term Debt 3,063,801 3,568,473 586,446 485,333 498,336 460,022 1,538,336 Bonds 609,049 732,149 81,062 78,140 572,947 — — Total debt 3,752,113 4,381,081 747,967 563,473 1,071,283 460,022 1,538,336 Accounts payable 140,848 140,848 140,848 — — — — Accrued Expenses 150,513 150,513 150,513 — — — — Contractual maturities $ 4,043,474 $ 4,672,442 $ 1,039,328 $ 563,473 $ 1,071,283 $ 460,022 $ 1,538,336 (b) Fuel price risk The Group maintains a commodity–price–risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by commodity–price volatility. The operations of the Group require a significant volume of jet fuel purchases. Price fluctuations of oil, which are directly related with price fluctuations of jet fuel, cause market values of jet fuel to differ from its cost and cause the actual purchase price of jet fuel to differ from the anticipated price. All such transactions are carried out within the guidelines set by the Risk Management Committee. The Group enters into derivative financial instruments using heating oil and jet fuel to reduce the exposure to jet fuel price risks. Such financial instruments are deemed to be highly effective hedge because changes in their fair value are closely correlated with variations in jet fuel prices. The Group determines fair value of the contracts based on the notional future curves as observed in the market; gain or loss of hedge instruments are recognized directly in net equity, through other comprehensive income (OCI), based on Hedge Accounting procedures. Sensitivity analysis A change in 1% in jet fuel prices would have increased/decreased profit or loss for the year by $12,163 and $9,235. This calculation assumes that the change occurred at the reporting date and had been applied to risk exposures existing at that date. This analysis assumes that all other variables remain constant and considers the effect of changes in jet fuel price and underlying hedging contracts. The analysis is performed on the same basis for 2017. (c) Foreign currency risk The foreign currency risk arises when the Group carries out transactions and maintains monetary assets and liabilities in currencies other than its functional currency. The functional currency used by the Group to establish the prices of its services is the US dollar. The Group sells most of its services at prices equivalent to the US dollar and a large part of its expenses are denominated in US dollars or are indexed to that currency, particularly fuel costs, maintenance costs, aircraft leases, lease payments, aircraft, insurance and aircraft components and accessories. The remuneration expenses are denominated in local currencies. The Group maintains its freight and passenger rates in US dollars. Although sales in domestic markets are made in local currencies, prices are indexed to the US dollar. The gain or loss in foreign currency is derived primarily from the appreciation or depreciation of the Colombian Peso against the US Dollar. For the years ended December 31, 2018, 2017 and 2016, the Group recognized a net loss from currency exchanges of $(9,220), $(20,163) and $(23,939), respectively. The Group manages its exposure to foreign currency risk by hedging the selected balances using exchange contracts and currency swaps. The summary quantitative data about the Group’s exposure to currency risk as reported to the management of the Group based on its risk management policy was as follows: December 31, 2018 USD Colombian Pesos Euros Argentinean Brazilian Others Total Cash and cash equivalents $ 172,966 $ 33,822 $ 7,501 $ 16,430 $ 20,769 $ 26,463 $ 277,951 Accounts receivable, net of expected credit losses 186,841 56,862 6,863 6,843 33,632 38,909 329,950 Secured debt and bonds (3,115,356 ) (29,316 ) (170,670 ) — — (14,041 ) (3,329,383 ) Unsecured debt (675,699 ) (2,498 ) — — — — (678,197 ) Accrued expenses (91,118 ) (20,363 ) (7,577 ) (231 ) (717 ) (888 ) (120,894 ) Accounts payable (505,789 ) (97,830 ) (22,293 ) (5,471 ) (16,203 ) (92,115 ) (739,701 ) Net financial position exposure $ (4,028,155 ) $ (59,323 ) $ (186,176 ) $ 17,571 $ 37,481 $(41,672) $(4,260,274) Sensitivity analysis Change forecast in exchange rate (4.03 )% (5.64 )% 2.36 % (4.39 )% Effect on profit of the year $ 2,391 $ 10,500 415 (1,645 ) December 31, 2017 USD Colombian Pesos Euros Venezuelan Argentinean Brazilian Others Total Cash and cash equivalents $ 342,524 $ 70,957 $ 20,914 $ 11 $ 6,874 $ 19,468 $ 48,234 $ 508,982 Available-for-sale — — — 55 — — — 55 Accounts receivable, net of expected credit losses 71,640 133,319 50,983 102 8,282 21,749 194,717 480,792 Secured debt and bonds (2,931,194 ) (61,784 ) (127,416 ) — — — — (3,120,394 ) Unsecured debt (628,767 ) (2,952 ) — — — — — (631,719 ) Accounts payable (286,401 ) (144,146 ) (10,239 ) (119 ) (7,184 ) (11,943 ) (72,016 ) (532,048 ) Net financial position exposure $ (3,432,198 ) $ (4,606 ) $ (65,758 ) $ 49 $ 7,972 $ 29,274 $ 170,935 $ (3,294,332 ) Sensitivity analysis Change of 1% in exchange rate Effect on profit of the year $ — $ (46 ) $ (658 ) $ — $ 80 $ 293 $ — $ — Sensitivity analysis The calculation assumes that the change occurred at the reporting date and had been applied to risk exposures existing at that date. This analysis assumes that all other variables remain constant and considers the effect of changes in the exchange rate, which is the rate that could materially affect the Group’s consolidated statement of comprehensive income. (d) Interest rate risk The Group incurs interest rate risk mainly on financial obligations with banks and aircraft lessors. Interest rate risk is managed through a mix of fixed and floating rates on loans and lease agreements, combined with interest rate swaps. The Group assesses interest rate risk by monitoring and identifying changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Group maintains risk management control systems to monitor interest rate risk attributable to both the Group’s outstanding or forecasted debt obligations. At the reporting date the interest rate profile of the Group’s interest–bearing financial instruments is: Carrying amount – asset/(liability) December 31, December 31, Fixed rate instruments Financial assets $ 68,706 $ 340,877 Financial liabilities (3,162,548 ) (3,003,336 ) Interest rate swaps 5,063 2,990 Total $ (3,088,779 ) $ (2,659,469 ) Floating rate instruments Financial assets 14,798 $ 51,042 Financial liabilities (845,031 ) (748,777 ) Total $ (830,233 ) $ (697,735 ) At December 31, 2018, the interest rates vary from 0.44% to 12.55% (December 31, 2017: 0.44% to 12.15% ) and the main floating rate instruments are linked to LIBOR plus a spread according to the terms of each contract. Sensitivity analysis As of December 31, 2018 and 2017 an average increase of 1% in interest rates on short-term and long–term debt would be expected to decrease the Group’s income by $10,284 and $8,825 respectively. (e) Credit risk Credit risk is the potential loss from a transaction in the event of default by the counterparty during the term of the transaction or on settlement of the transaction. Credit exposure is measured as the cost to replace existing transactions should a counterparty default. There are no significant concentrations of credit risk at the consolidated statement of financial position date. The maximum exposure to credit risk is represented by the carrying amount of each financial asset. The Group conducts transactions with the following major types of counterparties: • Trade receivables, net of expected credit losses: The Group is not exposed to significant concentrations of credit risk since most accounts receivable arise from sales of airline tickets to individuals through travel agencies in various countries, including virtual agencies and other airlines. These receivables are short term in nature and are generally settled shortly after the sales are made through major credit card companies. Cargo–related receivables present a higher credit risk than passenger sales given the nature of processing payment for these sales. The Group is continuing its implementation of measures to reduce this credit risk for example by reducing the payment terms and affiliating cargo agencies to the IATA Cargo Account Settlement Systems (“CASS”). CASS is designed to simplify the billing and settling of accounts between airlines and freight forwarders. It operates through an advanced global web–enabled e–billing solution. • Cash, cash equivalents and deposits with banks and financial institutions: In order to reduce counterparty risk and to ensure that the risk assumed is known and managed by the Company, investments are diversified among different banking institutions (both local and international). The Company evaluates the credit standing of each counterparty and the levels of investment, based on (i) their credit rating, (ii) the equity size of the counterparty, and (iii) investment limits according to the Company’s level of liquidity. According to these three parameters, the Company chooses the most restrictive parameter of the previous three and based on this, establishes limits for operations with each counterparty. • Foreign exchange transactions: The Group minimizes counterparty credit risk in derivative instruments by entering into transactions with counterparties with which the Group has signed “International Swaps and Derivatives Association Master Agreements”. Given their high credit ratings, management does not expect any counterparty to fail to meet its contractual obligations. (f) Capital risk management The Group’s capital management policy is to maintain a sound capital base in order to safeguard the Group’s ability to continue as a going concern, and in doing so, face its current and long–term obligations, provide returns for its shareholders, and maintain an optimal capital structure to reduce the cost of capital. The Group monitors capital on the basis of the debt–to–capital ratio. Following is a summary of the debt–to/capital ratio of the Group: December 31, December 31, Debt 16 $ 4,007,580 $ 3,752,113 Less: cash and cash equivalents and restricted cash 7 (277,951 ) (514,447 ) Total net debt 3,729,629 3,237,666 Total equity attributable to the Company 1,155,587 1,415,650 Total Capital $ 4,885,216 $ 4,653,316 Net debt–to–capital ratio 76 % 68 % There were no changes in the Group’s approach to capital management during the year. Fair value financial assets and liabilities The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statement of financial position as of December 31, 2018 are as follows: December 31, 2018 Notes Carrying Fair value Financial assets Investments 12 $ 67,306 $ 67,306 Derivative instruments 27 7,456 7,456 Plan assets 20 178,594 178,594 $ 253.356 $ 253.356 Financial liabilities Short term borrowings and long–term debt 16 $ 4,007,580 $ 4,022,707 Derivative instruments 28 (17 ) (17 ) $ 4,007,563 $ 4,022,690 The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statement of financial position as of December 31, 2017 are as follows: December 31, 2017 Notes Carrying Fair value Financial assets Derivative instruments 27 23,539 23,539 Plan assets 20 189,697 189,697 $ 213,236 $ 213,236 December 31, 2017 Notes Carrying Fair value Financial liabilities Short term borrowings and long–term debt 16 $ 3,752,113 $ 3,587,841 Derivative instruments 28 137 137 $ 3,752,250 $ 3,587,978 The fair value of the financial assets and liabilities corresponds the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Management assessed that cash and cash equivalents, account receivable, account payable and other current liabilities approximate their carrying amount largely due to the short–term maturities of these instruments. |
Cash and cash equivalents and r
Cash and cash equivalents and restricted cash | 12 Months Ended |
Dec. 31, 2018 | |
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Cash and cash equivalents and restricted cash | (7) Cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash as of December 31, 2018 and 2017 are as follows: December 31, December 31, Cash on hand and bank deposits $ 264,565 $ 490,657 Demand and term deposits (1) 8,543 18,325 Cash and cash equivalents 273,108 508,982 Restricted cash (2) 4,843 5,465 Cash and cash equivalents and restricted cash $ 277,951 $ 514,447 (1) As of December 31, 2018 and 2017, within the cash equivalents, there are demand and term deposits that amounted to $8,543 and $ 18,325, respectively. The use of term deposits depends on the cash requirements of the Group. As of December 31, 2018, term deposits accrue annual interest rates between 2,61% and 4,85% in Colombian pesos and between 2,05% and 4,59% in dollars. As of December 31, 2017, term deposits accrue annual interest rates between 3.77% and 5.52% in colombian pesos and between 2.10% and 6.50% in dollars. (2) As of December 31, 2018, the restricted cash includes resources in administration in an trust, which have a specific destination in relation to the object for which they were constituted, they consist among others in the payment of capital and interests to the bondholders. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2018 | |
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Trade and other receivables | (8) Trade and other receivables Trade and other receivables as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Trade $ 258,186 $ 190,501 Employee advances 4,848 6,213 Other (1) 73,056 46,596 $ 336,090 $ 243,310 Less Allowance for expected credit losses (12,430 ) (13,180 ) Total $ 323,660 $ 230,130 Net current $ 288,157 $ 226,015 Net non–current 35,503 4,115 Total $ 323,660 $ 230,130 (1) Corresponds mainly to amounts charged to Rolls Royce to contractual rights acquired in connection with failures in Trent 1000 engines. Changes during the year in the allowance as follows: December 31, 2018 December 31, 2017 Balance at beginning of year $ 13,180 $ 13,256 Adjustment implementation IFRS 9 (See note 4) (216 ) — Bad debt expense 4,526 4,363 Write–off against the allowance (5,060 ) (4,439 ) Total $ 12,430 $ 13,180 The aging of accounts receivables at the end of the reporting period as follows: December 31, December 31, Neither past due nor impaired 169,589 127,046 Past due 1–30 days 33,721 23,537 Past due 31–90 days 17,506 17,151 Past due 91 days 37,370 22,767 Total trade $ 258,186 $ 190,501 Allowance for expected credit losses (12,430 ) (13,180 ) Net accounts receivable $ 245,756 $ 177,321 |
Balances and transactions with
Balances and transactions with related parties | 12 Months Ended |
Dec. 31, 2018 | |
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Balances and transactions with related parties | (9) Balances and transactions with related parties The following is a summary of related party transactions for the years ended December 31, 2018 and 2017: Company Country December 31, 2018 December 31, 2017 Receivables Payables Revenues Expenses Receivables Payables Revenues Expenses SP SYN Participações S.A. Brazil $ — $ — $ 585 $ — $ 13,853 $ — $ 860 $ — OceanAir Linhas Aéreas, S.A. Brazil 6,199 1,078 23,062 58,479 1,725 4,264 28,906 33,888 Aerovias Beta Corp. Panama — — — — 977 — — — Aeromantenimiento, S.A. El Salvador 10 — — — 17 — — 622 Transportadora del Meta S.A.S. Colombia 13 569 19 4,781 — 222 18 3,444 Empresariales S.A.S. Colombia — 364 5 3,511 — 467 3 10,107 Global Operadora Hotelera S.A.S Colombia 9 532 7 5,954 8 636 9 5,340 Synergy Aerospace Corp. Panamá — — — — 512 1,262 — 4,201 Corp. Hotelera Internac S.A. El Salvador — 203 — 745 — 83 — 432 Other 59 81 6 2 112 253 23 846 Subtotal $ 6,290 $ 2,827 $ 23,684 $ 73,472 $ 17,204 $ 7,187 $ 29,819 $ 58,880 Receivables Payables Receivables Payables Short–term $ 6,290 $ 2,827 $ 17,204 $ 7,187 Accounts receivable with SP SYN Participações S.A. As of December 31, 2018 there are payments in full. The Group has not recognized any expense or provision for doubtful accounts since it is expected that the balances will be recovered completely. All related parties are companies controlled by the same ultimate shareholder that controls Avianca Holdings S.A. The following is a description of the nature of services provided by and to related parties. These transactions include: Related party Nature of Services Aeromantenimiento S.A. Aircraft maintenance company that provides aircraft overhaul services to the Group. Aerovías Beta Corp. Accounts receivable correspond to amounts due to Latin Airways Corp. as a result of the spin-off Corporación Hotelera Internacional S.A. Global Operadora Hotelera S.A.S. Accommodation services for crews and employees of the Group. Empresariales S.A.S. Transportation services for employees of Avianca, S.A. OceanAir Linhas Aéreas, S.A. The Group provides to and receives from OceanAir logistic services, marketing and advertising, maintenance services, and training services. The Group has entered into a licensing agreement with OceanAir for the use of the Avianca trademark in Brazil. Additionally, the Group leases aircraft to OceanAir (see Note 33). On November 4, 2014, Tampa Cargo S.A.S., entered into a Block Space Agreement with OceanAir Linhas Aéreas, S.A., acquiring priority rights and a minimum guaranteed cargo capacity on certain flights of the carrier. SP SYN Participações S.A. Avianca, S.A. (“Avianca”) and SP SYN Participações S.A. (“SP SYN”) signed a novation of the receivables from OceanAir Linhas Aéreas, S.A. (“OceanAir”) whereby SP SYN would be the new debtor. Synergy Aerospace Corp. The balances of accounts receivable correspond to reserves on aircraft engines and maintenance contracts. The balances payable originate in payments executed by Synergy Aerospace Corp. on behalf of Latin Airways Corp. Related party Nature of Services Transportadora del Meta S.A.S. It provides Avianca, S.A. ground transportation services for cargo / courier shipments. Key management personnel compensation expense During 2018 and 2017 the short-term employee benefits for key management personnel are $26,499 and $22,074. The Group does not have any long-term benefits including post-employment benefits, defined contribution plan, termination benefits or other long term benefits for the key management personnel. Following the detail for short-term compensation. December 31, 2018 December 31, 2017 Salaries $ 13,791 $ 13,571 Bonuses 8,775 5,054 Social benefits 3,027 2,604 Loans — 55 Compensation 73 31 Others 833 759 Total $ 26,499 $ 22,074 |
Expendable spare parts and supp
Expendable spare parts and supplies, net of provision for obsolescence | 12 Months Ended |
Dec. 31, 2018 | |
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Expendable spare parts and supplies, net of provision for obsolescence | (10) Expendable spare parts and supplies, net of provision for obsolescence Expendable spare parts and supplies as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Expendable spare parts $ 83,151 $ 86,705 Supplies 7,244 10,543 Total $ 90,395 $ 97,248 For the years ended December 31, 2018, 2017 and 2016 expendable spare parts and supplies in the amount of $84,662, $60,027 and $59,579, respectively, were recognized as maintenance expense. Changes during the year in the allowance as follows: 2018 2017 Balance at beginning of year $ 18,631 $ 24,705 Provisions reverse (3,203 ) (4,858 ) Write-offs against the allowance (8,923 ) (1,216 ) Balance at end of year $ 6,505 $ 18,631 |
Prepayments
Prepayments | 12 Months Ended |
Dec. 31, 2018 | |
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Prepayments | (11) Prepayments As of December 31, 2018 and 2017 prepaid balances are as follows: December 31, 2018 December 31, 2017 Prepaid commissions (1) $ 27,991 $ 33,170 Prepaid compensations clients 37,130 29,754 Advance payments on operating aircraft leases 12,470 9,507 Premiums for insurance policies 2,401 12,142 Other 19,872 15,184 Total $ 99,864 $ 99,757 (1) Advance payment made to IATA for service charges made by airlines. This is mainly the case with Airlines that belong to Star Alliance for the accumulation of miles, use of VIP lounges and Reservation Systems, Travelport Global Distribution System B.V., Services of Bolivian Airports, S.A., United Airlines Inc. |
Deposits and other assets
Deposits and other assets | 12 Months Ended |
Dec. 31, 2018 | |
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Deposits and other assets | (12) Deposits and other assets Deposits and other assets as of December 31, 2018 and 2017 are as follows: Notes December 31, 2018 December 31, 2017 Short term: Deposits with lessors (1) $ 15,535 $ 111,229 Short term investments (2) 59,847 59,332 Guarantee deposits (3) 2,283 2,003 Others (4) 9,542 8,871 Sub–Total 87,207 181,435 Fair value of derivative instruments 27 2,566 20,549 Total $ 89,773 $ 201,984 Long term: Deposits with lessors (1) $ 73,569 $ 63,962 Long term investments – 7,459 9,214 Guarantee deposits (3) 14,715 16,531 Others (4) 14,983 23,703 Sub–Total 110,726 113,410 Fair value of derivative instruments 27 4,778 2,990 Total $ 115,504 $ 116,400 (1) Corresponds mainly to maintenance deposits in connection with leased aircraft. These deposits are applied to future maintenance event costs, and are calculated on the basis of a performance measure, such as flight hours or cycles. They are specifically intended to guarantee maintenance events on leased aircraft. Maintenance deposits paid do not transfer the obligation to maintain aircraft or the costs associated with maintenance activities. Maintenance deposits are reimbursable to the Group upon completion of the maintenance event in an amount equal to the lesser of (a) the amount of the maintenance deposits held by the lessor associated with the specific maintenance event or (b) the qualifying costs related to the specific maintenance event. The variation corresponds to the change of guarantee on the debt since now the group constitutes letters of credit with the same lessor in order to ensure the payments. (2) Short term classification corresponds to funds invested that will expire within one year. All treasury cash surpluses are invested as defined and outlined in the Group’s Investment Policy. Otherwise, they are classified as long-term. The restricted investments correspond to CDT’s and bonds constituted by the Trusts held by the Group. (3) Corresponds mainly to amounts paid to suppliers in connections with leasehold of airport facilities, among other service agreements. (4) It mainly corresponds to guarantee deposits pending return with Airbus for delivery of aircraft and funds to guarantee 15% of the outstanding amount of the debt with the bondholders. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
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Property and equipment, net | Property and equipment, net The main additions corresponds to: • Flight equipment: During the year ended December 31, 2018, the Group acquired two aircraft A-330-300, A321-200, B-787 A-318 A-320, B787-8, A-300F • Capitalized maintenance: Additions reported for the year ended December 31, 2018 and 2017 correspond mainly to major repairs of the fuselage for $16,441 and $27,821, respectively, and major engine repairs for $197,674 and $143,786, respectively. • Reimbursement of predelivery payments: In the item of aircraft advances, as of December 31, 2018 and 2017, the Group capitalized loan costs of $16,355 at an average interest rate of 7.16% and $10,443 at an interest rate average of 7.30%, respectively. In addition, the Group made pre-delivery • Others: During the year ended December 31, 2018, the following capitalizations can be highlighted: • Charges associated with the phase V project transfer to El Dorado International Airport and expansion of the VIP Room for $4,267 • Assembly of multimedia equipment in airplanes for $5,610 • Furniture and office equipment for $726. • Aeronautical training and emergency practices (ATR Gate), originating a higher value of the A320 TRU flight simulator for $886. • Charges associated with the repair of roofs, improvements to the internal structure and surrounding land of Hangar II, located on the Bogota air bridge for $ 607. Charges associated with the adaptation of the new VIP Lounge at the Alfonso Bonilla International Airport and adaptation of the Santa Marta VIP Lounge Simón Bolivar International Airport for $ 295 and $ 207 respectively. Closed Circuit Television - CCTV for phases IV, V and VIP Room El Dorado International Airport for $ 270. • During the year ended December 31, 2018, $25,963 was capitalized for the purchase and installation of an Airbus A320 MSN 2605 flight simulator installed in the CEO. The cost includes tariffs and taxes. It is used for personnel training. • During the year ended December 31, 20187, the Hangar MRO of Avianca in the Jose Maria Cordova International Airport of the municipality of Rionegro, ended with a total cost of $43,443, which consists of hangars and specialized workshops for the repair of aircraft components, as well as infrastructure for the taxing of aircraft, spare parts warehouses and training rooms. During the year ended December 31, 2018, the Group obtained a gain of $70,070 related to sale and leaseback transactions: • Transaction results in a financial lease: $53,990 was recognize as financial leasing and it has been deferred and will be amortized over the term of financing, $4,747 were recognized in the consolidated statement of comprehensive income, as amortization. • Transaction results in an operating lease: $16,080 was recognize as a loss in the consolidated statement of comprehensive income. Impairment In 2018, the impairment loss of $38,881 represented: • Impairment of fleet Embraer E-190 Embraer-190 Administrative property The Group uses the revaluation model to measure its land and buildings which are composed of administrative properties. Management determined that this constitutes one class of asset under IAS 16, based on the nature, characteristics and risks of the property. The fair values of the properties were determined by using market comparable methods. This means that valuations performed by the appraisals are based on active market prices, adjusted for difference in the nature, location or condition of the specific property. The Group engaged accredited independent appraisals, to assist management determine the fair value of its land and buildings. Land and buildings were revaluated at December 31, 2018 and 2017. In order to establish the fair value of real estate as of December 31, 2018, the revaluation of land of $917 and buildings of $(967) originated from the figures determined in the technical studies (valuation) was recognized as a result a final balance of Land is recorded for $54,536 and $79,049 for buildings. In the year 2018, the Group reduced the revaluation value of lands and building located in Colombia for an amount of $20,448, due to the effect of loss in Colombian peso that affect the fair value of property in relation with our functional currency. In the area of administrative properties, there are land and buildings valued at $ 14,867 (net), which are located in Venezuela, on which it has not been technically possible to make appraisals taking into account the instability of the market in that country. These assets are measured under the cost model. If land and buildings were measured using the cost model, the carrying amounts would be as follows: December 31, 2018 December 31, 2017 Cost $ 102,351 $ 128,791 Accumulated depreciation (10,371 ) (11,230 ) Net carrying amount $ 91,980 $ 117,561 Flight equipment, property and other equipment as of December 31, 2018 and 2017 is as follows: Flight Capitalized Rotable parts Reimbursement Administrative Others Total Gross: December 31, 2017 $ 4,808,885 $ 555,619 $ 219,067 $ 159,303 $ 158,217 $ 294,306 $ 6,195,397 Additions 516,614 238,597 30,098 111,711 1,615 71,437 970,072 Disposals (81,381 ) (3,632 ) (22,843 ) (11,014 ) (3,546 ) (48,165 ) (170,581 ) Transfers 42 420 (481 ) — — 19 — Transfers to assets held for sale — — — — — (41,402 ) (41,402 ) Sale of subsidiaries — — — — — (12,762 ) (12,762 ) Revaluation — — — — (20,448 ) — (20,448 ) December 31, 2018 $ 5,244,160 $ 791,004 $ 225,841 $ 260,000 $ 135,838 $ 263,433 $ 6,920,276 Accumulated depreciation: December 31, 2017 $ 824,774 $ 270,780 $ 67,560 $ — $ 10,554 $ 140,713 $ 1,314,381 Additions 192,581 95,460 10,742 — 2,310 23,245 324,338 Disposals (28,188 ) (1,264 ) (20,918 ) — (2,075 ) (1,065 ) (53,510 ) Impairment 38,881 — — — — — 38,881 Transfers 143 — (146 ) — — 3 — Transfers to assets held for sale — — — — — (9,573 ) (9,573 ) Sale of subsidiaries — — — — — (7,558 ) (7,558 ) December 31, 2018 $ 1,028,191 $ 364,976 $ 57,238 $ — $ 10,789 $ 145,765 $ 1,606,959 Net: December 31, 2017 $ 3,984,111 $ 284,839 $ 151,507 $ 159,303 $ 147,663 $ 153,593 $ 4,881,016 December 31, 2018 $ 4,215,969 $ 426,028 $ 168,603 $ 260,000 $ 125,049 $ 117,668 $ 5,313,317 Flight Capitalized Rotable Reimbursement Administrative Others Total Gross: December 31, 2016 $ 4,450,572 $ 383,434 203,545 215 097 158,777 274,872 5,686,297 Additions 333,202 171,607 17,271 119,049 2,099 33,828 677,056 Disposals/Transfers 25,111 578 (1,749 ) (174,843 ) (33,676 ) (14,394 ) (198,973 ) Revaluation — — — — 31,017 — 31,017 December 31, 2017 $ 4,808,885 $ 555,619 $ 219,067 $ 159,303 $ 158,217 $ 294,306 $ 6,195,397 Accumulated depreciation: December 31, 2016 $ 653,415 $ 190,596 $ 62,489 $ — $ 9,406 $ 120,462 $ 1,036,368 Additions 177,262 81,616 6,642 — 2,229 25,351 293,100 Disposals (5,903 ) (1,432 ) (1,571 ) — (1,081 ) (5,100 ) (15,087 ) December 31, 2017 $ 824,774 $ 270,780 $ 67,560 $ — $ 10,554 $ 140,713 $ 1,314,381 Net: December 31, 2016 $ 3,797,157 $ 192,838 $ 141,056 $ 215,097 $ 149,371 $ 154,410 $ 4,649,929 December 31, 2017 $ 3,984,111 $ 284,839 $ 151,507 $ 159,303 $ 147,663 $ 153,593 $ 4,881,016 |
Intangible assets and good will
Intangible assets and good will, net | 12 Months Ended |
Dec. 31, 2018 | |
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Intangible assets and good will, net | (14) Intangible assets and good will, net Intangible assets and good will, net of amortization as of December 31, 2018 and 2017 are follows: December 31, 2018 December 31, 2017 Routes $ 34,299 $ 36,503 Trademarks 3,959 3,938 Software and webpages 84,470 70,927 Other intangible rights 83,042 3,938 Subtotal 205,770 115,306 Goodwill 308,033 311,273 Total Intangible Assets $ 513,803 $ 426,579 The following is the detail of intangible assets as of December 31, 2018 and 2017: Goodwill Routes Trade- Software & Others (1) Total Cost: December 31, 2017 $ 314,420 $ 52,481 $ 3,938 $ 147,512 $ 8,721 $ 527,072 Other Acquisitions – Internally developed — — 21 23,888 92,726 116,635 Acquisitions / Adjustment through Business Combinations (3,240 ) — — — — (3,240 ) December 31, 2018 $ 311,180 $ 52,481 $ 3,959 $ 171,400 $ 101,447 $ 640,467 Accumulated Amortization and Impairment Losses: December 31, 2017 $ 3,147 $ 15,978 $ — $ 76,585 $ 4,783 $ 100,493 Amortization for the year — 2,204 — 10,345 13,622 26,171 December 31, 2018 $ 3,147 $ 18,182 $ — $ 86,930 $ 18,405 $ 126,664 Carrying Amounts: December 31, 2017 $ 311,273 $ 36,503 $ 3,938 $ 70,927 $ 3,938 $ 426,579 December 31, 2018 $ 308,033 $ 34,299 $ 3,959 $ 84,470 $ 83,042 $ 513,803 (1) The main acquisitions of other intangibles correspond to digital transformation project for $ 28,567, the SAP project for $17,566, J2C project for $ 13,056, SOC Project for $ 8,848 and CRM project 5,936. The following is the detail of intangible assets as of December 31, 2017 and 2016: Goodwill Routes Trade- Software & Others Total Cost: December 31, 2016 $ 311,181 $ $ 3,938 $ 120,694 $ 4,804 $ 493,098 Other Acquisitions – Internally developed 3,240 — — 26,818 3,916 33,974 December 31, 2017 $ 314,421 $ $ 3,938 $ 147,512 $ 8,720 $ 527,072 Accumulated Amortization and Impairment Losses: December 31, 2016 $ 3,147 $ 13,774 $ — $ 58,890 $ 4,369 $ 80,180 Amortization for the year — 2,204 — 17,695 414 20,313 December 31, 2017 $ 3,147 $ 15,978 $ — $ 76,585 $ 4,783 $ 100,493 Carrying Amounts: December 31, 2016 $ 308,034 $ $ 3,938 $ 61,804 $ 435 $ 412,918 December 31, 2017 $ 311,274 $ $ 3,938 $ 70,927 $ 3,937 $ 426,579 (14.1) Goodwill and intangible assets with indefinite useful life In order to verify the impairment of goodwill acquired through business combinations and other intangibles with indefinite useful life, these have been assigned to the following Cash Generating Units (CGU): • Avianca Ecuador, S.A. • Grupo Taca Holdings Limited • Tampa Cargo S.A.S. The carrying amount of goodwill and intangibles allocated to each of the CGUs: Avianca Ecuador, S.A. Grupo Taca Holdings Tampa Cargo S.A.S. 2018 2017 2018 2017 2018 2017 Goodwill $ 32,979 $ 32,979 $ 234,779 $ 234,779 $ 40,276 $ 40,276 Routes — — — — 23,463 23,463 Trademarks — — — — 3,938 3,938 The Group performed its annual impairment test in December 2018 and 2017. The Group considers the relationship between the value in use of the CGU and its book value, among other factors, when reviewing for indicators of impairment on the goodwill or any of its intangible assets. As of December 31, 2018 and 2017, the Group did not identify potential impairment of goodwill or intangible assets. Basis for calculating recoverable amount The recoverable amounts of CGUs have been measured based on their value-in-use. Value-in-use pre-tax Annually the Group prepares and the Board approves five year business plans. Business plans were approved in the fourth quarter of the year. The business plan cash flows used in the value-in-use For each of the CGUs the key assumptions used in the value-in-use Avianca Ecuador, S.A. Grupo Taca Holdings Limited Tampa Cargo S.A.S. 2018 2017 2018 2017 2018 2017 Carrying amount of goodwill $ 32,979 $ 32,979 $ 234,779 $ 234,779 $ 40,276 $ 40,276 Impairment losses — — — — — — Revenue growth p.a. over planning period -0.6% to 8.9% 1.9% to 11.7% 1.3% to 9.6% 4.3% to 17.8% 0.4% to 1.9% 0.8% to 3.7% Operating income over planning period 4.9% to 17.7% 8.5% to 14.9% -3,0% to 2.2% 1.8% to 5.2% 8.4% to 13.9% 8.9% to 12.3% Capital expenditures over planning period 9% to 17% 3% to 13% 9% to 13% 4% to 11% 2% to 10% 0.3% to 7.7% Duration of planning period 5 years 5 years 5 years 5 years 5 years 5 years Revenue growth p.a. after planning period 4.4% 6.9% 4.4% 12.9% 3.9% 5.5% Operating Income after planning period 5.9% 13.2% 3.2% 5.2% 15.3% 11.4% Capital expenditures after planning period 10% 7% 8% 5% 6% 6.6% Business Enterprise Value 274,720 231,008 2,142,073 1,886,880 759,450 772,027 Discount rate 12.32% 13.03% 13.44% 14.48% 9.36% 9.6% The projections are based on the Company’s budget, from which we calculate the unit and its growth trends to develop the 5-year Macroeconomic assumptions are based on market data extracted from Bloomberg for both the expected WTI price and the expected interest rate levels, which have a direct impact on our cost projections. All costs are affected by inflation. |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2018 | |
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Assets held for sale | (15) Assets held for sale Assets held for sale at December 31, 2018 consist of the following assets: December 31, Flight Simulators $ 31,580 Total Assets Held For Sale $ 31,580 (1) No impairment loss was recognized at the time of the reclassification of the simulators to the item as held for sale at December 31, 2018, since it is expected that the fair value less cost of sales is greater than the amount in books. (2) The company signed a sale agreement on January 30, 2019 with CAE International Holdings Ltd., agreeing to sell (10) ten flight simulators belonging to the Group. The simulators were in use for the provision of training services for pilots and co-pilots (3) The assets classified as held for sale belong to the operating segment of air transportation. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2018 | |
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Long-term debt | (16) Long–term debt Loans and borrowings, measured at amortized cost, as of December 31, 2018 and 2017 are summarized as follows: Notes December 31, 2018 December 31, 2017 Current: Short–term borrowings and current portion of $ 589,366 $ 542,614 Current portion-bonds 37,376 29,458 $ 626,742 $ 572,072 Non–current: Long–term debt $ 2,830,922 $ 2,600,450 Non current portion-bonds 549,916 579,591 $ 3,380,838 $ 3,180,041 Terms and conditions of the Group’s outstanding obligations for years ended December 31, 2018 and 2017 are as follows: December 31, 2018 Due Weighted Face Value Carrying Short–term borrowings 2019 5.81 % $ 130,858 $ 119,866 Long–term debt 2029 4.76 % 5,249,987 3,300,422 Bonds–Colombia 2019 9.87 % 81,966 28,147 Bonds– Luxembourg 2020 7.95 % 550,000 559,145 Total $ 6,012,811 $ 4,007,580 December 31, 2017 Due Weighted Face Value Carrying Short–term borrowings 2018 3.96 % $ 85,387 $ 79,263 Long–term debt 2029 4.14 % 4,699,338 3,063,801 Bonds–Colombia 2019 10.58 % 89,266 59,808 Bonds– Luxembourg 2020 8.38 % 550,000 549,241 Total $ 5,423,991 $ 3,752,113 Below we present the detail of the debt balance by type of loan: December 31, December 31, Aircraft $ 2,396,748 $ 2,288,605 Corporate 1,023,540 854,459 Bonds 587,292 609,049 $ 4,007,580 $ 3,752,113 The majority of interests bearing liabilities are denominated in US dollars except for bonds and certain financing liabilities for working capital which are denominated in Colombian Pesos, and some aircraft debts are denominated in Euros. The main additions for the years ended at 31 December, 2018 and 2017 corresponds to: • Loans (financial leasing) to finance the purchase of aircraft: • During 2018, the Group obtained $427,751 in loans to finance the purchase of one A320 aircraft, two A321, two A330, and one B787. • During 2017, the Group obtained $340,568 in loans to finance the purchase of ten A318 aircraft, one B787, one A320, two A320neo, and refinance one A319 and two A320. • Loans for general purposes of working capital: • During 2018, the Group also obtained $303,640. Mainly these loans are acquired by Lifemiles, $ 95,000 at a rate Libor + 5.5 for a term of 4 years. • During 2017, the Group also obtained $510,360. Amount these loans is the one acquired by LifeMiles, $300,000 at a rate LIBOR + 5.5%, for a term of 5 years, this loan is guaranteed with all tangible and intangible assets, except for some exclusions of LifeMiles Ltd and its subsidiaries, likewise this debt has financial commitments. In addition , the Group received a US $150,000 (less transaction costs) in connection with the transfer of future cash flows from certain sales of credit card tickets in the United States (related only to travel agency sales), which were sold by Avianca to USAVFlow for a period of five years. Senior bonds As of December 31, 2018 and 2017, the Senior Notes outstanding and the corresponding balances are as follows: Balance as of Issuing entities Original Total placed in 2018 2017 Avianca Holdings S.A., Avianca Leasing, LLC and Grupo Taca Holdings Limited USD 550,000 $ 559,145 $ 549,241 Issuers: Avianca Holdings S.A., Avianca Leasing, LLC, and Grupo Taca Holdings Limited Guarantors: Avianca Costa Rica, S.A., Avianca Perú S.A., and Taca International Airlines, S.A. fully and unconditionally guarantee the total Notes. Aerovías del Continente Americano – Avianca, S.A. unconditionally guarantee the obligations of Avianca Leasing, LLC under the Senior Notes in an amount equal to $375 million. Notes offered: $550,000 aggregate principal amount of 8.375% Senior Notes due 2020. Initial Issue Price: 98.706% Initial Issue Date: May 10, 2013 Issue Amount: $300 million Interest: The Senior Notes will bear interest at a fixed rate of 8.375% per year. The first issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on November 10, 2013. Interest will accrue from May 10, 2013. The second issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on May 10, 2014. Second Issue Price: 104.50% Second Issue Date: April 8, 2014 Maturity Date: The Senior Notes will mature on May 10, 2020. Local bonds As of December 31, 2018 and 2017, bonds issued and the corresponding balances are as follows: Issuing entity Issue Total Balance as of December 31, 2018 2017 Original In US Original In US Avianca Series A 75,000 — $ — — $ — Avianca Series B 158,630 — — — — Avianca Series C 266,370 90,566 28,147 178,468 59,808 Total $ 28,147 $ 59,808 (1) Presentation of original currency in millions of Colombian pesos On August 25, 2009 a bond issue was completed on the Colombian stock exchange, which is collateralized by Credibanco and Visa credit cards ticket sales in Colombia. The specific conditions of the 2009 bond issue in Colombia are as follows: Representative of bondholders: Helm Trust, S.A. Amount of issue: $500,000 million Colombian Pesos Managing agent: Fiduciaria Bogota, S.A. Series: Series A: Authorized issue $100,000 million Colombian Pesos Series B: Authorized issue $200,000 million Colombian Pesos Series C: Authorized issue $300,000 million Colombian Pesos Coupon: Series A: Indexed to Colombian consumer price index Series B: Indexed to Colombian consumer price index Series C: Indexed to Colombian consumer price index Interest is payable at quarter–end Term: Series A: 5 years Series B: 7 years Series C: 10 years Repayment of capital: Series A: At the end of 5 years Series B: 50% after 6 years and 50% after 7 years Series C: 33% after 8 years, 33% after 9 years and 34% after 10 years Future payments on long–term debt Future payments on long–term debt for the years ended December 31, 2018 and 2017 are as follows: Years One Two Three Four Five and Total December 31, 2018 $ 469,500 $ 457,737 $ 529,125 $ 608,026 $ 1,236,034 $ 3,300,422 December 31, 2017 $ 463,351 $ 381,288 $ 412,839 $ 392,810 $ 1,413,513 $ 3,063,801 Future payments on bonds for the years ended December 31, 2018 and 2017 are as follows: Years One Two Three Four Five and Total December 31, 2018 $ 37,376 $ 549,916 $ — $ — $ — $ 587,292 December 31, 2017 $ 29,458 $ 29,676 $ 549,915 $ — $ — $ 609,049 Changes in liabilities derived from financing activities at December 31, 2018 January 1, New New (1) Financial (2) Payments Interest Foreign December 31, 2018 Current interest-bearing loans and borrowings (excluding items listed below) $ 79,263 $ 68,866 $ — $ 5,556 $ (27,691 ) $ (4,572 ) $ (1,556 ) $ 119,866 Current portion of long-term credits (excluding items listed below) 463,351 — — 141,337 (103,630 ) (56,650 ) 25,092 469,500 Current Bonds 29,458 — — 57,940 — (51,044 ) 1,022 37,376 Non-current 2,600,450 234,774 427,751 23,063 (324,748 ) (96,443 ) (33,925 ) 2,830,922 Bonds 579,591 — — 5,416 (27,404 ) — (7,687 ) 549,916 Total liabilities from financing activities $ 3,752,113 $ 303,640 $ 427,751 $ 233,312 $ (483,473 ) $ (208,709 ) $ (17,054 ) $ 4,007,580 (1) Goods and equipment acquired during the period under finance lease; these movements have no effect on the statement of cash flows. (2) This column contains the value of the pending interest for the year ended to 2018 for $212,294 and the initial balance of interest payable related to the financial obligations of $ 21,018. In the year 2017 the interest caused was $ 183,332 and these were presented as accounts payable. Changes in liabilities derived from financing activities at December 31, 2017 January 1, New New Leases (1) Payments Foreign December 31, 2017 Current interest-bearing loans and borrowings (excluding items listed below) $ 62,179 $ 39,492 $ — $ (22,408 ) $ — $ 79,263 Current portion of long-term credits (excluding items listed below) 314,970 207,562 — (57,197 ) (1,984 ) 463,351 Bonds 29,590 — — — (132 ) 29,458 Non-current 2,259,459 263,306 340,568 (279,580 ) 16,697 2,600,450 Bonds 608,037 — — (28,910 ) 464 579,591 Total liabilities from financing activities $ 3,274,235 $ 510,360 $ 340,568 $ (388,095 ) $ 15,045 $ 3,752,113 (1) Goods and equipment acquired during the period under finance lease; these movements have no effect on the statement of cash flows. In the year 2017 the interest caused was $183,332 and these were presented as accounts payable. |
Accounts payable
Accounts payable | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Accounts payable | (17) Accounts payable Accounts payable as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Trade accounts payable $ 424,717 $ 122,696 Non-income 226,006 300,435 Payroll taxes (1) 69,062 53,746 Other payables (2) 12,789 18,152 Total current $ 732,574 $ 495,029 Trade accounts payable 4,276 — Social Charges 2,851 5,084 Total non current $ 7,127 $ 5,084 (1) Represent payroll taxes and contributions based on salaries and compensation paid to employees of the Group in the various jurisdictions in which it operates. (2) Other accounts payable include mainly provisions for travel expenses, provisions for fees and accrued interest. |
Accrued expenses
Accrued expenses | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Accrued expenses | (18) Accrued expenses Accrued expenses as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Operating expenses (1) $ 105,649 $ 112,844 Vacation and other employee accruals 12,187 36,144 Other accrued expenses (2) 3,058 37,669 Total $ 120,894 $ 186,657 (1) Corresponds mainly costs for landings, credit card commissions, air navigation, ground services and passenger services. (2) Other accrued expenses include transport, freight and haulage, public services and maintenance |
Provisions for return condition
Provisions for return conditions | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Provisions for return conditions | (19) Provisions for return conditions For certain operating leases, the Group is contractually obligated to return the aircraft in a predefined condition. The Group accrues for restitution costs related to aircraft held under operating leases at the time the asset does not meet the return conditions criteria and throughout the remaining duration of the lease. Provisions for return conditions as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Current $ 2,475 $ 19,093 Non – current 127,685 144,099 Total $ 130,160 $ 163,192 Changes in provisions for return conditions as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Balances at beginning of year $ 163,192 $ 173,938 Provisions made 43,705 811 Provisions reverse (1) (70,797 ) — Provisions used (5,940 ) (11,557 ) Balances at end of year $ 130,160 $ 163,192 (1) In 2018 there is a decrease in provisions for return conditions, mainly due to: $ 14,650 for extension of operating contracts and $48,581 for extension in the period of maintenance. |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Employee benefits | (20) Employee benefits Employee benefits as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Defined benefit plan $ 144,862 $ 174,346 Other benefits Short term 9,084 — Other benefits Long term 802 — Total $ 154,748 $ 174,346 Current $ 44,663 $ 38,706 Non – current 110,085 135,640 Total $ 154,748 $ 174,346 The Group has a defined benefit plan which requires contributions to be made to separately administered funds. The Group has also agreed to provide post–employment benefits to its retirees that consist primarily of medical benefit plans as well as certain other benefits, including scholarships, tickets, seniority and retirement. These other benefits are unfunded. Accounting for pensions and other post–employment benefits involves estimating the benefit cost to be provided well into the future and attributing that cost over the time period in which each employee works for the Group. This requires the use of extensive estimates and assumptions about inflation, investment returns, mortality rates, turnover rates, medical cost trends and discount rates, among other information. The Group has two distinct pension plans, one for pilots and the other for ground personnel. Both plans have been closed to new participants, and therefore there are a fixed number of beneficiaries covered under these plans as of December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Fair value of plan assets $ (178,594 ) $ (189,697 ) Present value of the obligation 323,456 364,043 Total employee benefit liability $ 144,862 $ 174,346 The following table summarizes the components of net benefit expense recognized in the consolidated statement of comprehensive income and the funded status and amounts recognized in the consolidated statement of financial position for the respective plans: Net benefit expense – year ended December 31, 2018 (recognized in Salaries, wages and benefits) Defined benefit plan Other benefits Current service cost $ 1,094 $ 2,353 Interest cost on net benefit obligation 17,375 3,706 Interest income on plan assets (11,699 ) — Net Cost $ 6,770 $ 6,059 Net benefit expense – year ended December 31, 2017 (recognized in Salaries, wages and benefits) Defined benefit Other benefits Current service cost $ 1,207 $ 1,982 Interest cost on net benefit obligation 18,490 3,984 Interest income on plan assets (12,615 ) — Net Cost $ 7,082 $ 5,966 Changes in the present value of defined benefit obligation as of December 31, 2018 are as follows: Defined benefit Other benefits Total Benefit obligation as of December 31, 2017 300,773 63,270 364,043 Period cost 18,469 6,059 24,528 Benefits paid by employer (29,879 ) (3,188 ) (33,067 ) Remeasurements of defined benefit liability 850 (6,172 ) (5,322 ) Other current — (342 ) (342 ) Exchange differences (21,727 ) (4,657 ) (26,384 ) Benefit obligation as of December 31, 2018 268,486 54,970 323,456 Fair value of plan assets (178,594 ) — (178,594 ) Total employee benefit liability 89,892 54,970 144,862 Current 32,205 3,374 35,579 Non–current 57,687 51,596 109,283 Total 89,892 54,970 144,862 Changes in the fair value of plan assets are as follows: Defined benefit plan Fair value of assets at December 31, 2017 189,697 Interest income on plan assets 11,699 Remeasurement of interest assumptions (14,361 ) Employer contributions 31,871 Benefits paid (26,268 ) Exchange differences (14,044 ) Fair value of plan assets at December 31, 2018 178,594 Changes in the present value of defined benefit obligation as of December 31, 2017 are as follows: Defined benefit Obligation Other benefits Total Benefit obligation as of December 31, 2016 $ 265,928 $ 54,962 $ 320,890 Period cost 19,697 5,966 25,663 Benefits paid by employer (20,058 ) (2,398 ) (22,456 ) Defined benefit Other benefits Total Remeasurements of defined benefit liability 34,848 4,572 39,420 Other OCI (1,215 ) — (1,215 ) Exchange differences 1,573 168 1,741 Benefit obligation as of December 31, 2017 300,773 63,270 364,043 Fair value of plan assets (189,697 ) — (189,697 ) Total employee benefit liability $ 111,076 $ 63,270 $ 174,346 Current $ 34,141 $ 4,565 $ 38,706 Non–current 76,935 58,705 135,640 Total $ 111,076 $ 63,270 $ 174,346 Changes in the fair value of plan assets are as follows: Defined Fair value of assets at December 31, 2016 $ 165,740 Interest income on plan assets 12,615 Remeasurement of interest assumptions 6,568 Employer contributions 23,522 Benefits paid (17,460 ) Adjustment in plan asset performance (1,896 ) Exchange differences 608 Fair value of assets at December 31, 2017 $ 189,697 For the year ended December 31, 2018, 2017 and 2016, the remeasurements of defined benefit plan liability, net of $(9,039), $(33,385) and $4,094 respectively were recognized in other comprehensive income. December 31, December 31, December 31, Actuarial gains recognized in other comprehensive income $ 5,322 $ (38,205 ) $ 2,383 Return on plan assets adjustment (14,361 ) 4,672 1,711 Adjustments for translation — 148 — Amount recognized in other comprehensive income $ (9,039 ) $ (33,385 ) $ 4,094 The Group expects to contribute $35,579 to its defined benefit plan and other benefits in 2019. Plan assets correspond to net funds transferred to CAXDAC, which is responsible for the administration of the pilots’ pension plan. The assets held by CAXDAC are segregated into separate accounts corresponding to each contributing Group. Additionally the plan assets included a portion relating to pension plan of ground personnel. The principal assumptions (inflation–adjusted) that are used in determining pension and post–employment medical benefit obligations for the Group’s plans are shown below: December 31, December 31, Discount rate on all plans 7.25 % 6.75 % Price inflation 3.00 % 3.09 % Future salary increase Pilots 4.00 % 4.00 % Cabin crew 4.00 % 4.00 % Other employees 4.00 % 4.00 % Future pension increase 3.18 % 3.18 % Healthcare cost increase 4.50 % 4.50 % Ticket cost increase 3.00 % 3.00 % Education cost increase 3.00 % 3.00 % The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows: December 31, 2018 December 31, 2017 Equity securities 31.00 % 22.04 % Debt securities 21.00 % 33.73 % Domestic Corporate bonds 32.00 % 35.30 % Foreign government/corporate bonds 10.00 % 6.61 % Other 6.00 % 2.30 % Equity securities comprise investments in Colombian entities with a credit rating between AAA and BBB. The debt securities include investments in bonds of the Colombian government, in banks and in Colombian public and private entities. Domestic corporate bonds include bonds issued by private companies and Foreign Government Corporate Bonds include Yankie bonds and bonds issued by financial and private entities abroad. The following are the expected payments or contributions to the defined Benefit plan in future years: December 31, December 31, Year 1 $ 26,773 $ 39,074 Year 2 24,798 23,733 Year 3 24,309 24,285 Year 4 24,781 23,705 Year 5 25,626 24,699 Next 5 years 132,969 127,940 $ 259,256 $ 263,436 The average duration of the benefit plan obligation at 31 december 2018 and 2017 are 10.13, 10.79 years, respectively. Pension plans for ground personnel In 2008, the Group entered into a commutation agreement with Compañía Aseguradora de Vida Colseguros S.A. (Insurance Company) in connection with the pension liability of two of the Company’s pension plans. As of December 31, 2018 and 2017, there are 12 and 12 beneficiaries, respectively, which have not been commuted. Consequently, the Group estimates through an actuarial calculation the pension liability of these beneficiaries. Pension plans for flight personnel Due to local regulations for two of the Group’s pension plans, the Group has to make contributions to a fund which is externally administrated. The amount of the annual contribution is based on the following: • Basic contribution for the year: equal to the expected annual pension payments. • Additional contribution for the year (if necessary): equal to the necessary amount to match the actuarial liability under local accounting rules and the plan assets as of year 2023 (determined with an actuarial calculation). Sensitivity Analysis The calculation of the defined benefit obligation is sensitive to the aforementioned assumptions. The following table summarizes how the impact on the defined benefit obligation at the end of the reporting period would have increased (decreased) as a result of a change in the respective assumptions: 0.5% increase 0.5% decrease Discount rate (15,675 ) 17,226 Pension increase 14,100 (12,978 ) Mortality table (7,096 ) 17,533 Shares Base arrangements (cash settled) The Company authorized the implementation of an incentive plan (the “Share Based Plan”) on January 27, 2012 whereby eligible recipients, including directors, officers, certain employees, receive a special cash payout if certain redemption conditions are met. The Share Based Plan participants have the option to redeem the vested portion of their respective rights for cash, with the payment being equal to the difference between the trading share price of the preferred shares of Avianca Holdings S.A., as reported by the Colombian Stock Exchange during the 30 calendar days immediately preceding redemption, and COP$5,000. 18,026,158 awards were issued on March 15, 2012, and will vest in equal tranches over a 4 year period, with the first tranche vesting on March 15, 2013, and subsequent tranches vesting on each subsequent anniversary date. Upon vesting, each tranche must be redeemed within 5 years and no later than March 2021. On November 5, 2013, the Company listed its American Depositary Shares (“ADS”) in the New York Stock Exchange. As a consequence, the terms of the Share Based Plan were modified as follows: Starting on the effective date of the sale of ADSs in the market, the value of each award, as long as the result is positive, will result from: i) calculating the difference between the average quote of the ADSs representative of preferred shares of Avianca Holdings S.A., as reported by the New York Stock Exchange during the 30 calendar days immediately prior to each vesting date of the Share Based Plan and the price of $15, and ii) dividing the latter calculation by eight, considering that each ADS represents eight preferred shares and applying the resulting amount by the exchange rate of COP$1,901.22 per $1, (the exchange rate as of November 5, 2013 or the effective date of listing of the ADSs in the New York Stock Exchange). However, this modification does not affect Tranche 1. Additionally, the Company issued 2,000,000 new awards (“New Awards”) for the Board of Directors and C Levels on November 6, 2013. These New Awards vest in four equal tranches and expire five year after the vesting date. The value of each New Award is determined in the same way as the modified terms of the Share Based Plan. On March 11, 2014, the Company revised the New Awards and reduced them to 1,840,000 units. As of December 31, 2017, active beneficiaries have been awarded with 13,307,451 units out of 18,026,158 initially approved and issued, and have redeemed 480,025 units, corresponding to the vesting periods March 15, 2012–2013 and March 15, 2013–2014. Total awards to be redeemed as of December 31, 2017 are equal to 12,827,426. A summary of the terms of the awards excluding the 1,840,000 New Awards is as follows: Vesting dates Percentage vesting Redemption period March 15, 2013 25 % From March 16, 2013 through March 15, 2018 March 15, 2014 25 % From March 16, 2014 through March 15, 2019 March 15, 2015 25 % From March 16, 2015 through March 15, 2020 March 15, 2016 25 % From March 16, 2016 through March 15, 2021 A summary of the terms of the 1,840,000 New Awards is as follows: Vesting dates Percentage Redemption period November 6, 2014 25 % From November 7, 2014 through November 6, 2019 November 6, 2015 25 % From November 7, 2015 through November 6, 2020 November 6, 2016 25 % From November 7, 2016 through November 6, 2021 November 6, 2017 25 % From November 7, 2017 through November 6, 2022 Participants who are terminated, or resigned, cease to be part of the Share Based Plan. The awards were only issued to board members and key management. The Company has determined the fair value of the outstanding awards as of December 31, 2017 and 2016 using the Turnbull–Wakeman model, which is a variation of the Black–Scholes model and was deemed to be an appropriate valuation model given the requirement that the share price be above a certain threshold for 30 days prior to redemption. For the valuation as of December 31, 2017, the Turnbull–Wakeman model uses several inputs including: • Expected term of 0.10 to 2.42 years • Time in averaging period of 0.08 years • Stock price of COP$2,950 in the Colombian Stock Exchange and $8.03 in the New York Stock Exchange • Strike price of COP$5,000 for tranche 1 and $15 for tranches 2, 3, 4, and for the New Awards in all tranches • Risk free rate of 1.80% to 4.43% • Dividend yield of 1.69% • Volatility of 19.58% to 48.87% For the valuation as of December 31, 2016, the Turnbull–Wakeman model uses several inputs including: • Expected term of 0.60 to 3.35 years • Time in averaging period of 0.08 years • Stock price of COP$3,600 in the Colombian Stock Exchange and $9.64 in the New York Stock Exchange • Strike price of COP$5,000 for tranche 1 and $15 for tranches 2, 3, 4, and for the New Awards in all tranches • Risk free rate of 0.96% to 5.61% • Dividend yield of 1.39% • Volatility of 44.20% to 56.57% Since Avianca Holdings S.A. has a public traded history of approximately four and a half years for the preferred shares, which is shorter than all the expected terms except for Tranche 1–3 of the original Share Based Plan and Tranche 1 and 2 of the New Awards, the Company used data for guideline public companies similar to Avianca Holdings S.A. to estimate its equity volatility. Based on the aforementioned assumptions, the Company determined that the loss (income) of the Share Based Plan Awards for the period ended December 31, 2017 and 2016 was $(1,002) and $1,111 respectively which has been recognized within operating profit. As of December 31, 2017 and 2016, $140 and $1,115, respectively, is reflected as a current liability on the Consolidated Statement of Financial Position. During 2018, the plan was cancelled an no additional expense was recognized. The liability was written-off. Other Employee benefits During 2018 the Company implemented a new incentive plan called stocks options - Avianca Holdings. Annually, the beneficiaries of the plan will receive the plan denominated “virtual shares”, which correspond the to package of shares of the Company which are liquidated based on an average market share price for the year at the end of the period in an specific amount the number of virtual shares assigned depends on the achievement of certain financial and security goals (performance conditions). These indicators are measured in the short term (1 year), but their payment is long term, which will be deferred in 3 payments as long as there is employment linkage at the time of payment ( “service condition”). Once the virtual shares have been assigned to the selected employees, the value of the shares will be updated for future development. The Company recognizes the expected payment as an expense during the service period. The beneficiaries of the plan are those positions of Vice President and Director level, in addition all those persons who are defined as high potential and / or who hold critical positions which must be approved by the CEO. Each year a new package of virtual shares will be settled, which according to the performance of the period will be delivered in thirds during the following three years. The payment will be made in the base country of work of the beneficiary, the value will be subject to the deductions of taxes that correspond to each country at the time of payment. The Company recorded a liability of $ (1,312) on December 31, 2018, which is considered within the other long-term employee benefits as a non current liability in the consolidated statement of financial position. |
Air traffic liability and frequ
Air traffic liability and frequent flyer deferred revenue | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Air traffic liability and frequent flyer deferred revenue | (21) Air traffic liability and frequent flyer deferred revenue The Air traffic liability, comprises the proceeds from the unused air ticket or the revenues corresponding to the unused portion of a ticket sold. This income also includes the deferred income from the loyalty programs. The Group periodically evaluates this liability and any significant adjustment is recorded in the consolidated statements of comprehensive income. These adjustments are mainly due to differences between actual events and circumstances such as historical sales rates and customer travel patterns that may result in refunds, changes or expiration of tickets that change substantially from the estimates. The balance as of December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Advance ticket sales $ 424,579 $ 454,018 Miles deferred revenue 186,378 85,207 Current $ 610,957 $ 539,225 Miles deferred revenue $ 234,260 $ 104,786 Non current $ 234,260 $ 104,786 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Other liabilities | (22) Other liabilities Other liabilities as of December 31, 2018 and 2017 are as follows: Notes December 31, 2018 December 31, 2017 Derivative instruments 27,28 $ (129) $ 137 Deferred income (1) 71,649 24,471 Other 587 — Total $ 72,107 $ 24,608 Current $ 3,861 $ 9,415 Non–current 68,246 15,193 Total $ 72,107 $ 24,608 (1) As disclosed in note 13, the Group reclassified to other liabilities, the balances related to deferred profits with sale and leaseback transactions for $53,990, which are deferred for a period of ten years. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Equity | (23) Equity Common and preferred stock On November 5, 2013, the Company issued 12,500,000 American Depository Shares, or ADSs, each representing 8 preferred shares. Net proceeds from this offering amounted to $183,553 million (net of issuance costs amounting to $3,956). Preferred stock has no voting rights and cannot be converted to common stock. Holders of the preferred shares and ADSs are entitled to receive a minimum dividend to be paid preferentially over holders of common shares, so long as dividends have been declared by our shareholders at their annual meeting. If no dividends are declared, none of the Company’s shareholders will be entitled to any dividends. If dividends are declared and the Company’s annual distributable profits are sufficient to pay a dividend per share of at least COP 50 per share to all the Company’s holders of preferred and common shares, such profits will be paid equally with respect to the Company’s preferred and common shares. However, if the Company’s annual distributable profits are insufficient to pay a dividend of at least COP 50 per share to all our holders of preferred and common shares, a minimum preferred dividend of COP 50 per share will be distributed pro rata to the holders of the Company’s preferred shares, and any excess above such minimum preferred dividend will be distributed solely to holders of our common shares. In connection with that offering, the common shareholders (“selling shareholders”) converted 75,599,997 common shares to preferred shares, representing 14,734,910 ADSs. As a consequence, the number of common shares was reduced to 665,800,003; the number of preferred shares increased in 75,599,997 to 331,187,285 preferred shares. The Company did not receive any of the net proceeds from the sale of ADS by the selling shareholders. On November 28, 2014, the common shareholders (“selling shareholders”) converted 5,000,000 common shares to preferred shares. As a consequence, the number of common shares was reduced to 660,800,003 and the number of preferred shares increased in 5,000,000 to 336,187,285 preferred shares. The total issue preferred stock are 340,507,917 and the group have repurchased 4,320,632, for a total of paid preferred stock of 336,187,285. The following is a summary of authorized, issued and paid shares: December 31, 2018 December 31, 2017 Authorized shares 4,000,000,000 4,000,000,000 Issued and paid common stock 660,800,003 660,800,003 Issued and paid preferred stock 336,187,285 336,187,285 The nominal value are $0.125 per share. Other Comprehensive Income (“OCI”) Reserves The movement of the other comprehensive income as of December 31, 2018 and 2017 is as follows: Attributable to owners of the Company Income tax reserves relating to (4) Hedging Fair value Reserves relating losses (3) Fair value Reserves gains and losses Revaluation of Total NCI Total OCI As of December 31, 2017 $ 6,507 $ (681 ) $ (65,138 ) $ 3 $ 125 $ 58,382 $ (802 ) $ 455 $ (347) Other comprehensive Income (loss) for the Period (13,701 ) (67 ) (9,039 ) — (39 ) (20,448 ) (43,294 ) (261 ) $ (43,555 ) As of December 31, 2018 $ (7,194 ) $ (748 ) $ (74,177 ) $ 3 $ 86 $ 37,934 $ (44,096 ) $ 194 $ (43,902 ) Attributable to owners of the Company Income tax reserves relating to (4) Hedging Fair value Reserves relating gains and losses (3) Fair value Fair value Reserves Revaluation of Total NCI Total OCI As of December 31, 2016 $ 122 $ (414 ) $ (31,753 ) $ (3,558 ) $ 3 $ 15,143 $ 27,365 $ 6,908 $ 169 $ 7,077 Other comprehensive Income (loss) for the Period 6,385 (267 ) (33,385 ) 3,558 — (15,018 ) 31,017 (7,710 ) 286 (7,424 ) As of December 31, 2017 $ 6,507 $ (681 ) $ (65,138 ) $ — $ 3 $ 125 $ 58,382 $ (802 ) $ 455 $ (347) (1) Hedging Reserves The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition of the hedged cash flows (See Note 27). (2) Fair value reserves The fair value reserve comprises the cumulative net change in the fair value of available–for–sale financial assets until the assets are derecognized or impaired. (3) Reserve relating to actuarial gains and losses It comprises actuarial gains or losses on defined benefit plans and post–retirement medical benefits recognized in other comprehensive income. (4) Income tax on other comprehensive income Whenever an item of other comprehensive income gives rise to a temporary difference, a deferred income tax asset or liability is recognized directly in other comprehensive income (5) Revaluation of administrative property Revaluation of administrative property is related to the revaluation of administrative buildings and property in Colombia, Costa Rica, and El Salvador. The revaluation reserve is adjusted for increases or decreases in fair values of such property. The following provides an analysis of items presented net in the statement of consolidated statement of comprehensive income which have been subject to reclassification, without considering items remaining in OCI which are never reclassified to profit of loss: 2018 2017 Cash flow hedges: Reclassification during the year to profit or loss $ (17,179 ) $ 10,309 Effective valuation of cash flow hedged 3,478 (3,924 ) $ (13,701 ) $ 6,385 Fair value reserves: Valuations of investments in fair value with changes in OCI $ (67 ) $ (267 ) $ (67 ) $ (267 ) |
Non-Controlling interests
Non-Controlling interests | 12 Months Ended |
Dec. 31, 2018 | |
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Non-Controlling interests | Non-Controlling The following is summaries the information relating to each of the Group’ subsidiaries that has material NCI as of December 31, 2018 and 2017: LifeMiles Taca Aerotaxis la TurboProp Avianca Other Total NCI percentage 30.00 % 3.17 % 31.92 % 32.00 % 7.58 % Current assets $ 50,344 $ 28,269 $ 2,597 $ 4,155 $ 25,818 $ 5,719 $ 116,902 Non-current 24,337 8,932 687 7,615 5,444 2,529 49,544 Current liabilities (98,034 ) (18,861 ) (1,268 ) (2,658 ) (27,515 ) (3,481 ) (151,817 ) Non-current (160,816 ) (26,210 ) — (3,995 ) (827 ) (774 ) (192,622 ) Net assets (184,169 ) (7,870 ) 2,016 5,117 2,920 3,993 (177,993 ) (Loss) profit 24,321 (3,684 ) (499 ) 1,283 841 3,683 25,946 Other comprehensive income $ (94) $ (158) $ — $ — $ — $ (9) $ (261) LifeMiles Taca Aerotaxis la TurboProp Avianca Other Total NCI percentage 30.00 % 3.17 % 31.92 % 32.00 % 7.58 % Current assets $ 47,603 $ 24,269 $ 2,971 $ 7,095 $ 30,581 $ 7,381 $ 119,900 Non-current 27,039 10,720 777 7,908 6,092 4,268 56,804 Current liabilities (67,815 ) (14,915 ) (1,232 ) (7,317 ) (29,007 ) (2,880 ) (123,166 ) Non-current (95,939 ) (24,054 ) — (3,257 ) (5,470 ) (768 ) (129,488 ) Net assets (89,112 ) (3,980 ) 2,516 4,429 2,196 8,001 (75,950 ) (Loss) profit 30,738 (3,980 ) 2,364 674 2,106 1,893 33,795 Other comprehensive income $ 78 $ 358 $ — $ — $ — $ 19 $ 455 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Earnings per Share | (25) Earnings per Share The calculation of basic (loss) earnings per share at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Net profit (loss) attributable to Avianca Holdings S.A. $ (24,803 ) $ 48,237 Weighted average number of shares (in thousands of shares) Common stock 660,800 660,800 Preferred stock 336,187 336,187 Earnings per share Common stock $ (0.025) $ 0.05 Preferred stock $ (0.025) $ 0.05 There are not interest on convertible preference shares. |
Operating revenue
Operating revenue | 12 Months Ended |
Dec. 31, 2018 | |
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Operating revenue | (26) Operating revenue The Group had no major customers which represented more than 10% of revenues in 2018 and 2017. The Group tracks its segmented gross revenue information by type of service rendered and by region, as follows: By type of service rendered Year ended Percentage Year ended Percentage Year on Domestic Passenger 2,001,825 41 % $ 1,900,627 42 % 101,198 Cargo and mail 303,343 6 % 279,666 6 % 23,677 2,305,168 47 % 2,180,293 48 % 124,875 International Passenger 2,072,566 42 % 1,649,533 37 % 423,033 Cargo and mail 315,433 6 % 271,313 6 % 44,120 2,387,999 49 % 1,920,846 43 % 467,153 Other (1) 197,663 4 % 340,545 9 % (142,882 ) Total operating revenues 4,890,830 100 % $ 4,441,684 100 % 449,146 Year ended Percentage Year ended Percentage Year on Domestic Passenger $ 1,900,627 42 % $ 1,752,001 42 % $ 148,626 Cargo and mail 279,666 6 % 264,432 6 % 15,234 2,180,293 48 % 2,016,433 48 % 163,860 International Passenger 1,649,533 37 % 1,533,216 37 % 116,317 Cargo and mail 271,313 6 % 291,442 7 % (20,129 ) 1,920,846 43 % 1,824,658 44 % 96,188 Other (1) 340,545 9 % 297,247 8 % 43,298 Total operating revenues $ 4,441,684 100 % $ 4,138,338 100 % $ 303,346 Other operating revenue for the years ended December 31, 2018, 2017 and 2016 is as follows: December 31, 2018 December 31, 2017 December 31, 2016 Frequent flyer program $ 46,376 $ 178,841 $ 154,245 Ground operations (a) 23,592 20,172 21,053 Leases 22,610 22,232 28,295 Maintenance 58,032 11,639 7,696 Interline 2,025 1,900 3,859 Other (b) 45,028 105,769 82,099 $ 197,663 $ 340,553 $ 297,247 (a) Group provides services to other airlines at main hub airports. (b) Corresponds mainly to income from penalties, access to VIP rooms and additional services. Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. Notes December 31, December 31, Net account receivable trade 8 $ 245,756 $ 177,321 Prepaid compensations clients 11 37,130 29,754 Air traffic liability 21 (424,579 ) (454,018 ) Frequent flyer deferred revenue 21 (420,638 ) (189,993 ) |
Derivatives recognized as hedgi
Derivatives recognized as hedging instruments | 12 Months Ended |
Dec. 31, 2018 | |
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Derivatives recognized as hedging instruments | (27) Derivatives recognized as hedging instruments Financial instruments recognized as hedging instruments at fair value though other comprehensive income as of December 31, 2018 and 2017 are the following: Notes December 31, December 31, Cash flow hedges – Assets Fuel price hedges $ 2,566 $ 20,549 Interest rate 4,890 2,990 Total 12,22 $ 7,456 $ 23,539 The notional value of derivatives recognized as hedging instruments for the year ended December 31, 2018 is equivalent to 92,560,000 gallons of jet fuel. Financial assets and liabilities at fair value through other comprehensive income reflect the change in fair value of fuel price derivative contracts designated as cash flow hedges. Hedged items are designated future purchases deemed as highly probable forecast transactions. Cash flow hedges liabilities are recognized within Other Liabilities in the consolidated statement of financial position. The Group purchases jet fuel on an ongoing basis as its operating activities require a continuous supply of this commodity. The increased volatility in jet fuel prices has led the Group to the decision to enter into commodity contracts. These contracts are expected to reduce the volatility attributable to fluctuations in jet fuel prices for highly probable forecast jet fuel purchases, in accordance with the risk management strategy outlined by the Board of Directors. The contracts are intended to hedge the volatility of the jet fuel prices for a period between three and twelve months based on existing purchase agreements. The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur, and the fair values of the related hedging instruments to December 31, 2018 and 2017: December 31, 2018 Fair Value 1–12 months 12–24 months Fuel price $ 2,566 $ 2,566 Assets Interest rate $ 4,890 $ 112 $ 4,778 Assets December 31, 2017 Fair Value 1–12 months 12–24 months Fuel price Assets $ 20,549 $ 20,549 $ — Interest rate Assets $ 2,990 $ — $ 2.990 The terms of the cash flow hedging contracts have been negotiated for the expected highly probable forecast transactions to which hedge accounting has been applied. As of December 31, 2018, 2017 and 2016, a net (loss)/gain relating to the hedging instruments of $(13,701), $6,385 and $21,712 respectively is included in other comprehensive income (see Note 23). |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
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Derivative financial instruments | (28) Derivative financial instruments Derivative financial instruments at fair value through profit or loss as of December 31, 2018 and 2017 are the following: Notes December 31, 2018 December 31, 2017 Derivatives not designated as hedges – Liabilities Derivative contracts of interest rate 22 $ (17 ) $ 137 Total $ (17 ) $ 137 Financial instruments through profit or loss are derivative contracts not designated as hedges for accounting purposes that are intended to reduce the levels of risk of foreign currency and interest rates. Liabilities on derivatives not designated as hedges are recognized within Other Liabilities in the consolidated statement of financial position. Foreign currency risk Certain foreign currency forward contracts are measured at fair value through profit or loss and are not designated as hedging instruments for accounting purposes. The foreign currency forward contract balances vary with the level of expected foreign currency sales and purchases and changes in foreign currency forward rates. Interest rate risk The Group incurs interest rate risk primarily on financial obligations to banks and aircraft lessors. Certain financial derivative instruments are recognized at fair value through profit or loss and are not designated as hedging instruments for accounting purposes. The interest rate contracts vary according to the level of expected interest payable and changes in interest rates of financial obligations. Interest rate risk is managed through a mix of fixed and floating rates on loans and lease agreements, combined with interest rate swaps and options. Under these agreements, the Group pays a fixed rate and receives a variable rate. |
Offsetting of Financial Instrum
Offsetting of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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Offsetting of Financial Instruments | (29) Offsetting of Financial Instruments The Group has derivative instruments that could meet the offsetting criteria in paragraph 42 of IAS 32 given that the Group has signed with its counterparties enforceable master netting arrangements. Consequently, when derivatives signed with the same counterparty and for the same type of notional result in gross assets and liabilities, the positions are set off resulting in the presentation of a net derivative. As of December 31, 2018 and 2017, the Group has not set off derivative instruments because it has not had gross assets and liabilities with the same counterparty for the same type of notional. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Fair value measurements | (30) Fair value measurements The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities as of December 31, 2018: Quantitative disclosures of fair value measurement hierarchy for assets: Fair value measurement using Assets measured at fair value Quoted prices (Level 1) Significant (Level 2) Significant (Level 3) Total Derivative financial assets (Note 27 y 28) Aircraft fuel hedges — 2,566 — 2,566 Interest rate derivatives — 4,890 — 4,890 Investments — 67,306 — 67,306 Assets plan — 178,594 — 178,594 Revalued administrative property (Note 13) — — 110,182 110,182 Quantitative disclosures of fair value measurement hierarchy for liabilities: Fair value measurement using Liabilities measured at fair value Quoted prices (Level 1) Significant (Level 2) Significant (Level 3) Total Foreign currency derivatives — (17 ) — (17 ) Liabilities for which fair values are disclosed Short–term borrowings and long–term debt — 4,022,707 — 4,022,707 The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities as of December 31, 2017: Quantitative disclosures of fair value measurement hierarchy for assets: Fair value measurement using Assets measured at fair value Quoted prices in active (Level 1) Significant (Level 2) Significant (Level 3) Total Derivative financial assets (Note 27) Aircraft fuel hedges Interest rate derivatives — 20,549 — 20,549 Available–for–sale securities — 2,990 — 2,990 Assets held for sale — 55 — 55 Assets plan — 189,697 — 189,697 Revalued administrative property (Note 13) — — 147,663 147,663 Quantitative disclosures of fair value measurement hierarchy for liabilities: Fair value measurement using Liabilities measured at fair value Quoted prices (Level 1) Significant (Level 2) Significant (Level 3) Total Derivative financial liabilities (Note 27) Interest rate derivatives — 137 — 137 Frequent flyer liability (Note 21) — 191,157 — 191,157 Liabilities for which fair values are disclosed Short–term borrowings and long–term debt (Note 16) — 3,587,841 — 3,587,841 Fair values hierarchy The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows: Level 1 Observable inputs such as quoted prices in active markets Level 2 inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; or Level 3 inputs are unobservable inputs for the asset or liability. For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re–assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. (a) The fair value of financial assets which changes in OCI is determined by reference to the present value of future principal and interest cash flows, discounted at a market based interest rate at the reporting date. (b) The Group enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate contracts, foreign currency forward contracts and commodity contracts. The most frequently applied valuation techniques include forward pricing and swap models, using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign currency spot and forward rates, interest rate curves and forward rate curves of the underlying commodity. (c) The fair value of short – – (d) The Group uses the revaluation model to measure its land and buildings which are composed of administrative properties. Management determined that this constitutes one class of asset under IAS 16, based on the nature, characteristics and risks of the property. The fair values of the properties were determined by using market comparable methods. This means that valuations performed by the appraisals are based on active market prices, adjusted for difference in the nature, location or condition of the specific property. The Group engaged accredited independent appraisals, to determine the fair value of its land and buildings. Level 3 Fair Values The fair value measurements for our administrative property have been categorised as Level 3 fair values based on the inputs to the valuation techniques used. The following table shows a breakdown of the total gains (losses) recognised in respect of Level 3 fair values (administrative property): December 31, 2018 December 31, 2017 Gain included in OCI Change in fair value (unrealized) $ (20,448 ) $ 31,017 Change in fair value (realized) — — Total gain included in OCI $ (20,448 ) $ 31,017 Valuation technique and significant unobservable inputs The following table shows the valuation technique used in measuring the fair value of administrative property, as well as the significant unobservable inputs used. Valuation technique Signicant unobservable inputs Market comparison approach: A method of appraising property by analyzing the prices of similar properties sold in the recent past and then making adjustments based on differences among the properties and the relative age of the other Expected Market rental growth: (2018: 1%-2%, 2017: 3%-4%) Occupancy Rate (2018: 87% weighted average, 2017: 82% weighted average) GDP from construction (2018: 1% weighted average, 2017: (5%). Appreciation or depreciation of the Colombian Peso against the US Dollar: 2018 (8.91%), 2017: 0.56%. |
Income tax expense
Income tax expense | 12 Months Ended |
Dec. 31, 2018 | |
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Income tax expense | (31) Income tax expense Assets and liabilities for taxes as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Current income tax – assets $ 152,601 $ 78,434 Current VAT-assets 72,857 33,318 Other taxex-current 6,456 2,609 Total current tax – assets $ 231,914 $ 114,361 Non Current income tax – assets 19 136,301 Total tax – assets $ 231,933 $ 250,662 Current income tax – liabilities $ (26,702 ) $ (31,935 ) (a) Income tax expense components The major components of income tax expense for the years ended December 31, 2018, 2017 and 2016 are: Consolidated statement of comprehensive income December 31, December 31, December 31, Current income tax: Current income tax charge $ 24,208 $ 32,934 $ 28,114 Adjustment in respect of current income tax of previous year 2,943 2,225 (666 ) Deferred tax expense: Relating to origination and reversal of temporary differences (6,938 ) (15,050 ) 6,642 Income tax expense reported in the income statement $ 20,213 $ 20,109 $ 34,090 Consolidated statement of other comprehensive income December 31, December 31, December 31, Hedging reserves $ — $ 3,558 $ (3,558 ) Reserves relating to actuarial gains and losses (39 ) (15,018 ) 4,289 Income tax charged directly to other comprehensive income $ (39 ) $ (11,460 ) $ 731 (b) Tax Rate reconciliation in accordance with the Tax Provisions and the Effective Rate Current Colombian tax legislation applicable to dominant company in its subsidiaries: • The income tax rate applicable for 2017 and 2018 is 40% and 37% respectively (including the 6%- and 4%-income tax overcharge, respectively). • For the years 2017 and 2018, the presumptive income to determine the income tax cannot be less than 3.5% of the net equity on the last day of the immediately preceding taxable year. • From 2017, tax losses may be compensated with ordinary liquid income obtained in the following 12 taxable periods. • Excess of presumptive income can be compensated in the following 5 taxable periods. • The tax for occasional income is taxed at the 10% rate Standards in other countries Subsidiary companies in Ecuador must pay a capital gains tax at a 28% rate. For subsidiaries in Costa Rica, México, Salvador and Peru the rate is 30% , in Guatemala the rate is 25%. Funding Law - (Tax reform)-Colombia On December 28, 2018, Law 1943 was issued (Funding Law), by which new rules were introduced in tax regulation, the most relevant aspects are presented below: • Progressive reduction in the income tax and corporate complementary rates as follows: taxable year 2019, 33% rate; 2020 taxable year, 32% rate; 2021 taxable year, 31% rate; and since the taxable year 2022, 30% rate. • Progressive reduction of presumptive tax as follows: taxable year 2018, rate of 3.5%; 2019 taxable year, 1.5% rate; 2020 taxable year, 1.5% rate; And since the taxable year 2020, 0% rate. A general rule determines that 100% of taxes, fees and contributions paid in the taxable year will be deductible, if it has causal relationship with the generation of income except for the income tax. • 50% of the industry and commerce tax may be deductible from the income tax in the taxable year in which it is effectively paid and to the extent that it has a causal relation with its economic activity. As of the year 2022 it can be discounted 100%. The value-added tax (IVA) on import, training, construction or acquisition of real productive fixed assets including services can be considered as a discount on income tax for those responsible for sales tax. • The capitalization rule is modified, indicating that the maximum amount of indebtedness will be the liquid equity of the previous year, multiplied by two (previously was multiplied by three), it is necessary that the indebtedness must correspond to loans with residents and non-residents. • In reference to the dividend tax, the following modifications were made: • The withholding tax rate on untaxed dividends was increased to 7.5%, in favor of companies and foreign entities, non-residents • The applicable table to untaxed dividends for the benefit of individuals residing in the country and illiquid successions of the decedents in the country was modified, establishing a marginal rate of 15% for dividends that exceed 300 UVT ($ 10,281,000, for the year 2019). • It was established that the taxed dividends will be determined: (i) applying the tax income rate in the year in which they are decreed (33% year 2019, 32% year 2020, 31% year 2021, and 30% year 2022) and (ii) for the remainder, the rate corresponding to the non-taxed • It established a Tax regime on dividends decreed for the first time to national companies, which will be transferable to the final beneficiary, a resident or an investor resident abroad. • The dividends decreed with a charge to profits of the years 2016 and previous will keep the current treatment in that moment; and the profits for the years 2017 and 2018 will be governed by the rates set forth in Law 1819 of 2016 and will be decreed as enforceable before December 31, 2018, otherwise, it will adhere to the new rules of the Law of Financing. • Stipulated a new mega-investment regime applicable to income taxpayers that increase de employment on 250 direct jobs and make investments in Colombia in property, plant and equipment that are productive or have the potential to be, for an equal or higher value to 30 million UVT ($ 1,028,100 million in 2019). The law has a series of tax incentives for these investments: income tax rate of 27%; depreciation of fixed assets for a minimum term of 2 years; not subject to estate tax or presumed income; special rates for taxation on taxable dividends that are decreed, among others. Taxpayers who make Mega-Inversions may sign tax stability settlement with the State to stabilize the fiscal conditions of the aforementioned regime for a term of 20 years. This regime does not apply to companies related to the exploitation of non-renewable Under the Colombian tax bill, it is possible the early termination – or extraordinary termination – of the legal processes by the Tax Authorities, through the following mechanisms: 1. Termination by Mutual Agreement and 2. Tax court settlement (known as “Conciliación Contencioso Administrativa”), by the payment of the 100% or the 50% of the tax payable, depending on the administrative act object of discussion and, obtaining a debt forgiveness, in a proportion of the interests, sanctions and updates, that varies depending on the moment in which the process is found. For the Tax court settlement, the interested may request it until September 30, 2019 and sign the minutes no later than October 31, 2019. For the Terminations by Mutual Agreement the interested may request its implementation until October 31, 2019. A reconciliation between tax expense and the product of accounting profit multiplied by domestic tax rate for the years ended December 31, 2018, 2017 and 2016 is as follows: December 31, 2018 December 31, 2017 December 31, 2016 Accounting profit after income tax $ 1,143 $ 82,032 $ 44,186 Total, income tax expense 20,213 20,109 34,090 Profit before income tax $ 21,356 $ 102,141 $ 78,276 Income tax at Colombian statutory rate 37.00 % 7,902 40.00 % 40,856 40.00 % 31,311 Tax credit (1) 0.0 % — 0.00 % — (5.74 %) (4,493 ) Productive fixed assets special deduction (267.99 %) (57,229 ) (44.91 %) (45,868 ) (22.10 %) (17,299 ) Permanent differences (2) (96.90 %) (20,694 ) 138.54 % 141,508 (346.48 %) (271,209 ) Non–deductible taxes 15.98 % 3,413 3.06 % 3,124 15.01 % 11,749 Effect of tax exemptions and tax rates in foreign jurisdictions 253.27 % 54,086 (118.26 %) (120,797 ) 71.56 % 56,014 Non recognized deferred tax assets 402.02 % 85,852 (141.93 %) (144,965 ) 248.77 % 194,732 Losses of tax reversion 0.0 % — 184.69 % 188,640 0.00 % — Exchange rate differences (304,23 )% (64,969 ) (48.56 %) (49,595 ) 107.20 % 83,916 Prior year expenses (5.83 %) (1,245 ) 0.00 % — 0.00 % — Changes in tax rates 61.33 % 13,097 (2.24 %) (2,292 ) (51.58 %) (40,377 ) Other 0.0 % — 9.30 % 9,498 (13.10 %) (10,254 ) 94.65 % $ 20,213 19.69 % $ 20,109 43.55 % $ 34,090 (1) Airline companies in Colombia are entitled to a tax credit or discount for income tax purposes based on the proportion between the international flight’s income and total income of the Company during the year. The legislative purpose of this tax provision is to limit the Company’s exposure to double taxation on their worldwide income in Colombia, therefore limiting the tax expense to local Colombian source income. The tax reform contained in the Law 1819 of 2016 eliminates the tax credit for air or marine international transportation above noted, therefore in Tampa Cargo S.A.S. such tax credit will only be applicable until tax year 2016, however due to Avianca’s Stabilization Agreement the credit will be available to offset until tax year 2028. (2) This item includes various permanent differences for Corporate Income Tax purposes in Colombia. These permanent differences include nontaxable gains and losses on the sale of property, plant and equipment, nontaxable revenues and other items. (c) Subsidiaries Investments Because Avianca S.A. and Tampa Cargo S.A.S. are the dominant companies in their subsidiaries and are able to control the future moment in which the temporary difference related to their investments in such subsidiaries can be reversed. Consequently, and in accordance with the exception permitted by paragraphs 39 and 44 of IAS 12, deferred tax liabilities with respect to temporary differences of investments in subsidiaries, were not recognized for a value of US $60 million as of December 31. 2018, for the year 2017 this figure amounted to US $61 million. (d) Tax Credits As of December 31 2018, the Company’s subsidiaries have tax loss carryforwards of approximately $416,993 ($141,878, 2017) and excess of presumptive income tax of approximately $9,766 ($10,635, 2017), which are available to offset in future taxable income in the relevant jurisdictions, if any, where appropriate. The main tax loss carryforwards, belong to Subsidiaries , are in Colombia for $352,863 ($102,611, 2017), which expier in 2031. The Company has deferred tax asset corresponding to the aforementioned tax losses for $127,707 ($48,955, 2017). However, according to the Company’s financial projections no tax income will be generated for the next 5 years to allow the compensation of the deferred tax assets. Therefore, said deferred tax assets has only been recognized by an amount up to the concurrence of deferred tax liabilities, according to IAS12 paragraph 35. (e) Deferred tax by type of temporary difference The differences between the carrying value of assets and liabilities and the tax bases, lead to temporary differences that generate deferred taxes, calculated and registered in the periods December 31, 2018 and December 31, 2017 applying the tax rate for the taxable year in which those temporary differences will be reversed. Consolidated Statement of Financial Position December 31, December 31, Variation Assets (liabilities) Accounts payable $ 88,920 $ — $ 88,920 Deposits and other assets (11,481 ) (24,379 ) 12,898 Aircraft maintenance (3,573 ) (43,973 ) 40,400 Pension liabilities 3,089 (525 ) 3,614 Provisions 19,037 103,830 (84,793 ) Loss carry forwards 603 8,670 (8,067 ) Non-monetary (49,343 ) (29,231 ) (20,112 ) Intangible assets (8,220 ) (11,534 ) 3,314 Other (32,896 ) (2,703 ) (30,193 ) Net deferred tax assets / (liabilities) $ 6,136 $ 155 $ 5,981 The analysis of deferred tax assets and liabilities as of December 31, 2018 and December 31, 2017 is as follows: Reflected in the statement of financial position as follows: Deferred tax assets $ 24,573 $ 25,969 (1,396 ) Deferred tax liabilities (18,437 ) (25,814 ) 7,377 Deferred tax assets (liabilities) net $ 6,136 $ 155 $ 5,981 In accordance with paragraph 74 of IAS 12, the Company has compensated the deferred tax assets and liabilities for presentation purposes in the Statement of Financial Position. The impact of this application, in consideration of the quantitative analysis and economic facts involved, does not significantly alter and is not relevant regarding to the Statement of Financial Position. Reconciliation of deferred tax assets net December 31, December 31, Opening balance as of January 1, $ 155 $ (14,507 ) Tax income during the period recognized in profit or loss 6,938 15,050 Tax income during the period recognized in other comprehensive income (40 ) (155 ) Deferred taxes acquired in business combinations Exchange differences (917 ) (233 ) Closing balance as of December 31 $ 6,136 $ 155 (f) Transfer pricing The Group’s companies prepared transfer-pricing studies about transactions within and between enterprises under common ownership or control during fiscal year 2017. There were no adjustments to taxable income or deductible expenses that affected the Group, due to these studies. Although the Group is currently working on the transfer pricing studies for 2018, we don’t anticipate any significant changes in contrast with fiscal year 2017. (g) Position due to tax uncertainties For the financial statements as of December 31, 2018 and December 31 2017, has been analyzed the tax positions adopted in the tax statements still subject to review by the Tax Authority, in order to identify uncertainties associated with a difference between such positions and those of the Tax Administration. According to the evaluations compiled, no events have been identified that lead to the recording of additional provisions for this concept. |
Provisions for legal claims
Provisions for legal claims | 12 Months Ended |
Dec. 31, 2018 | |
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Provisions for legal claims | (32) Provisions for legal claims As of December 31, 2018 and 2017, the Group is involved in different lawsuits and legal actions that arise in the development of commercial activities. The changes in provisions for litigation as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Balances at the beginning of the period $ 11,720 $ 18,516 Provisions constituted 2,034 14,491 Provisions reverse (5,007 ) — Provisions used (938 ) (21,287 ) Balances at the end of the period $ 7,809 $ 11,720 Among the provisions for litigation are those related to labor processes (2018: $3,695, 2017: $5,062, consumer protection processes (2018: $1,133, 2017: $1,704) and civil processes (2018: $795, 2017 : $1,857). Certain processes are considered possible obligations. Based on the plaintiffs’ claims as of December 31, 2018 and 2017, these contingencies total $123,216 and $119,573, respectively. Certain losses that may arise from such litigation will be covered by the insurance companies or with funds provided by third parties. Legal claims resolved with the aforementioned forms of payment are estimated at $ 56,210 as of December 31, 2018 and $ 26,275 as of December 31, 2017 In accordance with IAS 37, the legal claims that the Group considers to represent a remote risk are not contemplated in the consolidated financial statements. Cessation of pilot activities affiliated with the Colombian Association of Civil Aviators (ACDAC) On September 20, 2017, the Colombian Association of Civil Aviators union (“ACDAC”) unilaterally initiated a cease of activities as no agreement had been reached in a labor dispute between the union and Avianca S.A. The cease of profit activities lasted for 51 days and lend to the cancellation of 14,337 flights, approximately 50% of our flights, during that period. On September 25, 2017, Avianca S.A. filed a lawsuit with the Superior Court of Bogota to declare the illegality of the strike. Such motion was granted by the court on October 6, 2017. Subsequently, ACDAC filed an appeal but such decision was upheld by the Labor Chamber of the Colombian Supreme Court of Justice. ACDAC submitted an application with the court for additional clarification of the judgment as well as an annulment. However, on February 8, 2018, the Colombian Supreme Courtdenied the motions presented by ACDAC and, therefore, the judge’s decision declaring the strike illegal became final. On September 28, 2017, by resolution No. 3744 of 2017, the Ministry of Labor convened a compulsory arbitration tribunal, whose awards are comparable to collective bargaining agreements, to settle the differences regarding economic claims between ACDAC and Avianca S.A. The tribunal served Avianca S.A. with the award on December 11, 2017. Subsequently, Avianca S.A. filed a motion to clarify the terms of the award and another motion for annulment since, the Group believes , the tribunal exceeded its competence by rendering decision beyond the scope of its jurisdiction. On February 8, 2018, the arbitration tribunal accepted such motions and remanded the case before the Labor Chamber of the Colombian Supreme Court of Justice, who is the competent authority to rule on the recourse. On July 18, 2018, the Supreme Court of Justice in its civil court confirmed the decision of illegality of the ACDAC strike. Current Situation with Oceanair Linhas Aereas S.A. On December 10th, 2018 Oceanair Linhas Aereas S.A. (See Note 9-Balances Derived from this event, the Group is currently assessing the potential impacts related to all commercial agreements executed between certain companies of the Group and Oceanair Linhas Aereas S.A., including 4 sublease agreements for the following aircraft: 1 A330, 1 A330F, 2 A319. The Group has formally requested the termination and redelivery of the aircraft in compliance with the terms and conditions set forth in each of the sublease agreements. Two subleased aircraft 1 A330 and 1A330 F were already redelivered to Avianca in February and March 2019 and we are currently negotiating the redelivery of the remaining two aircraft 2A319. In regards to the redelivery of the subleased aircraft, the Group is evaluating the process of reincorporating these aircrafts into the Group operation or eventually its sale to third parties. As of the issuance of these financial statements, none of these aircraft has been incorporated into the Group fleet. |
Future aircraft leases payments
Future aircraft leases payments | 12 Months Ended |
Dec. 31, 2018 | |
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Future aircraft leases payments | (33) Future aircraft leases payments The Group has 124 aircraft that are under financial leasing. The following is the summary of future financial lease commitments: Aircraft Less than one year 316,334 Between one and five years 1,117,208 More than five years 963,206 $ 2,396,748 The Group has 54 aircraft that are under operating leases with an average lease term of 50 months. Operating leases can be renewed, in accordance with the Administration’s business plan. The following is the summary of the future commitments of operating leases: Aircraft Less than one year 245,579 Between one and five years 668,403 More than five years 186,711 $ 1,100,693 The Group has 6 engines under an operating lease contract for its aircraft fleet of the E190 and A320 families. The following is the summary of the future commitments of operating leases: Engines Less than one year 10,131 Between one and five years 28,513 More than five years 9,378 $ 48,022 As of December 31, 2018 the Group had two Airbus A319, one Airbus A330F and one Airbus A330, under operating lease to OceanAir Linhas Aéreas, S.A. and two E-190 Aircraft Less than one year 26,442 Between one and five years 52,543 More than five years 20,720 $ 99,705 On February 2019, the Group signed a termination of the operative leases of one Airbus A330F and one Airbus A330 with OceanAir Linhas Aéreas, S.A. which modifies the future minimum income from these lease agreements as follows: Aircraft Less than one year 15,142 Between one and five years 6,493 More than five years — $ 21,635 The amount of recognized payments has expenses during the year is as follows: December 2018 December 2017 December 2016 Leases minimum payments $ 267,708 $ 278,772 $ 314,493 |
Acquisition of aircraft
Acquisition of aircraft | 12 Months Ended |
Dec. 31, 2018 | |
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Acquisition of aircraft | (34) Acquisition of aircraft In accordance with the agreements in effect, future commitments related to the acquisition of aircraft and engines are as follows: Order Options Delivery Airbus (Family A320) (1) 111 — 2019-2028 Boeing 787- 3 9 2019 Engines (3) 3 — 2019-2020 (1) On December 2017, the Group signed two Assignment, Assumption and Release Agreement, one assigning 5 A-320 A-320 (2) On September 2017, the Company signed an amendment to convert three 787-8 787-9 787-8 (3) The Group has 3 firm orders with CFM for the acquisition of LEAP-1A On November 2017, the Company signed two Aircraft Sale and Purchase Agreement between Transasia Airways Corporation and Avianca. Each agreement for 1 A330-300 A321-200 The value of the final purchase orders is based on the aircraft price list (excluding discounts and contractual credits granted by the manufacturers) and including estimated incremental costs, commitments acquired with manufacturers for the purchase of aircraft and advance payments are summarized below. Advance payments are subsequently applied to aircraft acquisition commitments. Year one Year two Year three Year four Thereafter Total Advance payments $ 223,071 $ 237,970 $ 205,594 $ 210,735 $ 380,559 $ 1,257,929 Aircraft acquisition commitments $ 981,054 $ 2,123,295 $ 2,407,313 $ 2,162,148 $ 6,831,519 $ 14,505,329 In line with Avianca Holdings S.A.’s initiatives directed towards enhancing profitability, achieving a leaner capital structure as well as reducing the current levels of debt, in March 2019 the Group negotiated cancellation of 17 aircraft and a significant reduction of its scheduled aircraft deliveries in 2019, 2020, 2021 and 2022 and changes some aircraft type both, upgrades and downgrades with Airbus SAS with deliveries scheduled between 2019 and 2028. Year one Year two Year three Year four Thereafter Total Advance payments $ 31,048 $ 51,502 $ 93,211 $ 222,771 $ 784,572 $ 1,183,104 Aircraft acquisition commitments $ 14,874 $ 288,716 $ 534,304 $ 135,783 $ 7,076,164 $ 8,049,841 The Group plans to finance the acquisition of the commitments acquired with the resources generated by the Group and the financial operations that can be formalized with financial entities and aircraft leasing companies. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2018 | |
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Dividends | Dividends The Group paid dividends during the year ended December 31, 2018 and 2017, based on the retained earnings as of December 31, 2017 and 2016, respectively: December 31, December 31, Dividend - Ordinary shared $ 23,433 $ 16,942 Dividend - Preferred shared 12,075 8,730 Total $ 35,508 $ 25,672 The Board of Directors of Avianca Holdings S.A. at an ordinary session of the General Shareholders Meeting held on March 16, 2018, agreed distribution of profits for the year 2017 as dividend to the shareholders of the Group who will be paid the amount of COP$98.6 per share, for a total amount of $35,508. The dividends declared were paid in four equal installments of COP$24.65 per share, on June 29, July 31, August 31 and September 28, 2018. The decree of dividends was made with a TRM of COP $ 2,780.47. The payment of the dividends was made to the corresponding TRM on the date on which the transaction was made. The Board of Directors of Avianca Holdings S.A. at an ordinary session of the General Shareholders Meeting held on March 31, 2017, agreed the project for the distribution of profits for the year 2016 as dividend to the shareholders of the Group who will be paid the amount of COP$77 per share. The dividends declared were paid in two equal installments of COP$38.5 per share, on July 31 and September 30, 2017. Dividends paid to minority shareholding During the year ended December 31, 2018, the subsidiaries with minority interest, declared dividends as follows: December 31, 2018 December 31, 2017 Subsidiaries Minority AVH Total Minority AVH Total LifeMiles Ltd (1) $ 61,500 $ 143,500 $ 205,000 $ 127,001 $ 296,335 $ 423,336 Turbo Prop Leasing Corp 596 1,265 1,861 — — — Aerotaxis La Costeña S.A — — — 3,000 6,377 9,377 Total $ 62,096 $ 144,765 $ 206,861 $ 130,001 $ 302,712 $ 432,713 The dividends received for AVH are eliminated in consolidation process. (1) At December 31, 2018 the amount of $6,000 is pending to pay at minority interest. |
Debt covenants
Debt covenants | 12 Months Ended |
Dec. 31, 2018 | |
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Debt covenants | (36) Debt covenants During 2018 and 2017, the Company did not comply with certain debt covenants. However these breaches did not accelerate the due date for the repayment of the debt. As of December 31, 2018. The most significant commitments related to financial ratios assumed by the Company and its subsidiaries are as follows: Avianca Holdings S.A. The consolidated financial statements of Avianca Holdings must comply with the following financial covenants: • EBITDAR Coverage Ratio: Should be not less than 1.75 to 1.0. • Capitalization Ratio: Should not be greater than 0.86 to 1.00 at the end of December 31, 2018, and the reporting periods are the quarters ending in March, June, September and December. • Coverage Ratio: Should not be less than 1.5 to 1.0 at the end of each reporting period. • Cash reserves held or controlled or otherwise available to the guarantor or its subsidiaries should be at least $350 million at all times until the relevant testing date in respect of the period ending December 31, 2018. Relevant testing date means the date on which the Avianca Holdings S.A. and subsidiaries audited financial statements prepared in accordance with IFRS are delivered to the Security Trustee, no later than 180 days of the end of the financial period. • EBITDA Margin: At the end of each period the EBITDA margin shall not be less than 0%. The reporting periods are the quarters ending in March, June, September and December. Avianca S.A. The issuance of bonds in the local Colombia Capital Market requires de compliance with the following financial covenants: • Debt Service: should be greater than or equal to 1.4 at the end of each reporting period • Leverage ratio: should be less than or equal than or equal to 4.5 at the end of each reporting period. The reporting periods are the semesters ending in June and December, and these covenants are measured at the Avianca S.A. level. Although a breach in these covenants has no consequences in terms of acceleration of debt, it would impose restrictions on additional indebtedness that Aerovías del Continente Americano Avianca S.A., can take outside of fleet financing and ground support equipment. Avianca S.A. had restriction to declared dividends. Lifemiles Ltd. & Subsidiaries Covenants as of December 31, 2018 and 2017 include maintenance of a Total Leverage Ratio (as defined in the Credit Agreement) below 4.50:1.00 for the first year and 4.00:1.00 thereafter, certain restrictions on distribution of dividends and incurrence of certain types of investments, among others. As of December 31, 2018 and 2017 the Company was in compliance with all its loan covenants. Other Covenants The United Loan is subject to certain affirmative and negative covenants, including, among others, the financial covenants that are expressly calculated by reference to the financial position of Avianca. Management were not involved in the final measurement of these covenants and the role was limited to Avianca Holdings’ providing to BRW the information requested by BRW. • Leverage ratio – calculated by dividing Avianca Holdings’ adjusted net debt by Avianca Holdings’ adjusted EBITDAR, the required covenant level of which would currently be 5.9:1 when measured through to September 30, 2019. • Minimum liquidity covenant – calculated based on Avianca Holdings’ unrestricted cash, the required covenant level of which would currently be $400 million (that is, through to the first anniversary of the funding date under the United Loan), unless certain grace period provisions are complied with by BRW so as to temporarily reduce the minimum liquidity level to $300 million. Avianca Holdings has been made aware by its shareholder BRW that the minimum liquidity covenant has been waived down to compliance at $300 million. • Covenant debt provision – calculated by taking Avianca Holdings’ adjusted debt and subtracting the lesser of its unrestricted cash and $200 million, which must not exceed $5.88 billion as of December 31, 2018 and $5.71 billion as of December 31, 2019, among other thresholds. • Capital expenditures – requirement that cumulative Avianca Holdings’ capital expenditures not exceed specified amounts at certain points in time (including $659 million in the year ended December 31, 2018 and $1,245 million in the year ended December 31, 2019, among other thresholds. • Collateral Coverage Ratio – this covenant depends on the compliance of BRW on achieving certain coverage percentages at certain point in time, throughout the lifetime of the loan agreement A breach of above-referenced covenants or other obligations under the United loan could constitute an event of default for Avianca Holdings SA. As mentioned in note 2f, BRW informed Avianca Holdings SA of its non compliance under the Collateral Coverage Ratio on April 10, 2019. As referenced in note 38 of the financial statements Avianca Holdings SA has obtained an amended credit and guaranty agreement as well as an acknowledgment by Banco de Bogota, which solve the non compliance of the company under the Banco de Bogota loan for the December 31, 2018. As Avianca Holdings and its subsidiaries are not party to the United Loan and are not obligors thereunder, any default by BRW under this loan does not per se constitute an event of default in respect of indebtedness owed by Avianca Holdings or any of its subsidiaries. All of the covenants under the financing documents of Avianca Holdings calculated by reference to our results of operations are complied with or non-compliance |
Relevant Information
Relevant Information | 12 Months Ended |
Dec. 31, 2018 | |
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Relevant Information | (37) Relevant Information Commercial and Strategic Partnership Avianca, United y Copa Airlines On November 29, 2018, Avianca Holdings’ airlines (Avianca) entered into a revenue-sharing joint business agreement with United Airlines, Inc. (“United”), a wholly-owned subsidiary of United Continental Holdings, Inc., Compañía Panameña de Aviación, S.A. (“Copa”) and several respective affiliates. This long-term revenue sharing arrangement among United, Avianca and Copa covers routes between the United States and Central and South America (excluding the Caribbean, Mexico and Brazil). The Avianca Holdings’ airlines (Avianca) that entered into a revenue-sharing joint business agreement are: • Aerovías del Continente Americano S.A • Taca International Airlines, S.A. • Avianca Perú S.A. • Avianca Costa Rica S.A. • Avianca Guatemala S.A. • Servicios Aéreos Nacionales S.A. • Isleña de Inversiones S.A. • Aerotaxis la Costeña S.A Allowing the carriers to serve customers as if they were a single airline is expected to enable the companies to better align their frequent flyer programs, coordinate flight schedules and improve airport facilities By integrating their route networks between United States and the Latin American countries under the joint business agreement (“JBA”), Avianca, together with United and Copa, plan to offer important benefits for travelers, including: • Joint service between the companies so that customers may travel with more than 12,000 connection options, • New nonstop routes, • Additional flights on existing routes and, • Reduced travel times. The arrangement is subject to regulatory approval in the United States and several jurisdictions in Central and South America. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
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Subsequent Events | (38) Subsequent Events • On March 15, 2019, the Group announced the reschedule the delivery of 35 A320neo aircraft currently scheduled to be delivered between 2020 and 2022. Avianca has also cancelled the delivery of another 17 A320neo aircraft associated with the purchase order signed in 2015. The revised Airbus A320 family delivery schedule is as follows: 2019 2020 2021 2022 2023-2028 Total Original Order 5 20 23 20 60 128 Deferred Aircraft (2 ) (14 ) (19 ) (16 ) 51 — Canceled Aircraft — — — — (17 ) (17 ) Adjusted Order 3 6 4 4 94 111 This agreement will reduce Avianca’s fleet CapEx needs by more than $350 million over the next three years and reduces financial commitments for the 2020-2022 period by more than $2.6 billion. The updated delivery schedule decreases the speed at which new aircraft are incorporated into Avianca’s operating fleet, enabling the Company to strengthen its cash position and reduce leverage. See more information on Note 34-Acquisition of aircraft. Sale Agreement of Aerotaxis La Costeña and Turboprop Leasing Co. On April 23, 2019, our subsidiaries Taca and NICA entered into an agreement to sell all of Taca’s 68% interest in Turboprop Leasing Company Ltd. and all of NICA’s 68% interest in Aerotaxis La Costeña S.A. to Regional Airline Holding LLC, a third-party purchaser. Completion of the sale is subject to the satisfaction of certain conditions precedent. The purchase price is payable in a fixed amount of $11.7 million and in variable earn-out consideration of up to $3.8 million. The sale agreement is subject to customary representations and indemnities, among other provisions, and the purchase price payable includes an element of earn-out Covenant of United Loan As described in note 2, on April 10, 2019, on a conference call with representatives of BRW and United, such representatives informed Avianca Holdings that BRW was not in compliance with the collateral coverage ratio covenant under the United Loan and that no waiver was in place for such non-compliance, On April 22, 2019 BRW affirmed that it was breaching the collateral coverage ratio on December 31 2018. Per our analysis and assessment of this situation, Avianca Holdings has identified a situation that could have effected our consolidated financial statements as of and for the year ended December 31, 2018, due to the potential change of control under the Banco de Bogota loan that would have required Avianca Holdings to reclassify the totality ($ 245 million) of the loan as a short term liability. On April 23, 2019, the board of directors of Banco de Bogota amended the credit and guaranty agreement and acknowledge and agree that: • from the date of the Credit Agreement (June 16, 2015) and the Pledge (November 29, 2018) through to the date of this Letter (April 23, 2019), no Change of Control has occurred; and • unless and until any enforcement action is taken under the terms of the Pledge, neither United Loan nor any Pledge (nor any circumstance or action existing or taken in connection therewith) shall constitute a Change of Control. Further Banco de Bogota agreed to include United Airlines as a permitted beneficial owner of Avianca Holdings. As such, there is no change of control under the Banco de Bogota Loan and, as a consequence, there is no default under the Banco de Bogota Loan. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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Basis of consolidation | (a) Basis of consolidation Subsidiaries are entities controlled by Avianca Holdings S.A. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases, in accordance with IFRS 10. Control is established after assessing the Group’s ability to direct the relevant activities of the investee, its exposure and rights to variable returns, and its ability to use its power to affect the amount of the investee’s returns. The accounting policies of subsidiaries have been aligned when necessary with the policies adopted by the Group. The consolidated financial statements also include 52 special purpose entities that relate primarily to the Group’s aircraft leasing activities. These special purpose entities are created in order to facilitate financing of aircraft with each SPE holding a single aircraft or asset. In addition the consolidated financial statements includes 58 entities that are mainly investment vehicles, personnel employers and service providers within the consolidated entities. The Group has consolidated these entities in accordance with IFRS 10. When the sale of a subsidiary occurs and no percentage of participation is retained on it, the Group derecognizes the assets and liabilities of the subsidiary, the non-controlling If the Group retains a percentage of participation in the subsidiary sold, and does not represent control, this is recognized at its fair value on the date when control is lost, the amounts previously recognized in other comprehensive income are accounted for as if the Group had directly disposed of the related assets and liabilities, which may cause these amounts to be reclassified to profit or loss. The retained percentage valued at its fair value is subsequently accounted for using the equity method. |
Transactions eliminated on consolidation | (b) Transactions eliminated on consolidation Intercompany balances and transactions, and any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. |
Foreign currency | (c) Foreign currency Foreign currency transactions These consolidated financial statements are presented in US dollars, which is the Group’s functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the respective spot rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the spot rate of exchange ruling at the reporting date. All differences are recognized currently as an element of profit or loss. Non–monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non–monetary items measured at a revalued amount in a foreign currency are translated using the exchange rates at the date when the fair value was determined. |
Foreign operations | (d) Foreign operations Assets and liabilities of foreign operations included in the consolidated Statement of Financial Position are translated using the closing exchange rate on the date of the consolidated statement of financial position. The revenues and expenses of each income statement account are translated at quarterly average rates; and all the resultant exchange differences are shown as a separate component in other comprehensive income. |
Business combinations | (e) Business combinations Business combinations are accounted for using the acquisition method in accordance with IFRS 3 “Business Combinations”. The consideration for an acquisition is measured at acquisition date fair value of consideration transferred including the amount of any non–controlling interests in the acquiree. Acquisition costs are expensed as incurred and included in administrative expenses. When the Group acquires a business, it measures at fair value the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred to the seller, including the amount recognized for non–controlling interest over the fair value of identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purposes of impairment testing, goodwill acquired is, from the acquisition date, allocated to each of the Group’s cash–generating units that are expected to benefit from the acquisition, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. |
Revenue recognition | (f) Revenue recognition The group has initially applied IFRS 15 from January 1, 2018. The effect of initially applying IFRS 15 described in note 4. (i) Passenger and cargo transportation The Group recognizes revenues from passenger, cargo and other operating income in consolidated statements of comprehensive income. Passenger income, which includes transportation, baggage fees, fares, and other associated ancillary income, is recognized when transportation is provided. Cargo revenues are recognized when the shipments are delivered. Other operating income is recognized as the related performance obligations are met. The tickets and other revenues related to transportation that have not yet been provided are initially deferred and recorded as “Air traffic liability” in the consolidated statement of financial position, deferring the revenue recognition until the trip occurs. For trips that have more than one flight segment, the Group considers each segment as a separate performance obligation and recognizes the revenues of each segment as the trip takes place. Tickets sold by other airlines where the Group provides transportation are recognized as passenger income at the estimated value that will be billed to the other airline when the trip is provided. Reimbursable tickets usually expire after one year from the date of issuance. Non-refundable The various taxes and fees calculated on the sale of tickets to customers are collected as an agent and sent to the tax authorities. The Group records a liability when taxes are collected and deregisters it when the government entity is paid. (ii) Frequent flyer The Group has a frequent flyer program “LifeMiles”, that is managed by LifeMiles Ltd, a subsidiary of the Group, which airlines buy lots of miles to be granted to member costumers of the program. The purpose of the program is designed to retain and increase travelers’ loyalty by offering incentives to travelers for their continued patronage. Under the LifeMiles program, miles are earned by flying on the Group’s airlines or its alliance partners and by using the services of program partners for such things as credit card use, hotel stays, car rentals, and other activities. Miles are also directly sold through different distribution channels. Miles earned can be exchanged for flights or other products or services from alliance partners. The liabilities for the accumulated miles are recognized under “Frequent Flyer Deferred Revenue” (See Note 21) until the miles are redeemed. The Group recognizes the revenue for the redemption of miles at the time of the exchange of miles. They are calculated based on the number of miles redeemed in a given period multiplied by the cumulative weighted average yield (CWAY), which leads to the decrease of “ Frequent Flyer Deferred Revenue “. The price of the miles is determinited according with the contracts. The Group reviews it Breakage estimate during the year, based upon the latest available information regarding redemption and expiration patterns. If a change in the estimate is presented, the adjustments will be accounted for prospectively through the income, with an adjustment of “update” to the corresponding deferred income balances. |
Income tax | (g) Income tax Income tax expense comprises current and deferred taxes and is accounted for in accordance with IAS 12 “Income Taxes”. (i) Current income tax Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognized directly in equity or in other comprehensive income recognized in the consolidated statement of changes in equity or consolidated statement of comprehensive income, respectively. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. (ii) Deferred income tax Deferred tax is recognized for temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are recognized to the extent that is probable that the temporary differences, the carry forward of unused tax credits and any unused tax losses can be utilized, except: • Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. • In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax laws enacted or substantively enacted at the reporting date. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re–assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax relating to items recognized outside profit or loss is recognized in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities. |
Property and equipment | (h) Property and equipment (i) Recognition and measurement Flight equipment, property and other equipment are measured at cost less accumulated depreciation and accumulated impairment losses in accordance with IAS 16 “Property, Plant and Equipment”. Property, operating equipment, and improvements that are being built or developed for future use by the Group are recorded at cost as under–construction assets. When under–construction assets are ready for use, the accumulated cost is reclassified to the respective property and equipment category. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gain and losses on disposal of an item of flight equipment, property and equipment are determined by comparing the proceeds from disposal with the carrying amount. (ii) Subsequent costs The costs incurred for major maintenance of an aircraft’s fuselage and engines are capitalized and depreciated over the shorter period to the next scheduled maintenance or return of the asset. The depreciation rate is determined according to the asset’s expected useful life based on projected cycles and flight hours. Routine maintenance expenses of aircraft and engines are charged to income as incurred. (iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is recognized in the consolidated statement of comprehensive income on a straight–line basis over the estimated useful lives of flight equipment, property and other equipment, since this method most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Rotable spare parts for flight equipment are depreciated on the straight–line method, using rates that allocate the cost of these assets over the estimated useful life of the related aircraft. Land is not depreciated. Estimated useful lives are as follows: Estimated useful life (years) Flight equipment: Aircraft 10 – 30 Aircraft components and engines Useful life of fleet associated with component or engines Aircraft major overhaul repairs 4 – 12 Rotable parts Useful life of fleet associated Leasehold improvements Lesser of remaining lease term and estimated useful life of the leasehold improvement Administrative Property 20 – 50 Vehicles 2 – 10 Machinery and equipment 2 – 15 Residual values, amortization methods and useful lives of the assets are reviewed and adjusted, if appropriate, at each reporting date. The carrying value of flight equipment, property and other equipment is reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable and the carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The Group receives credits from manufacturers on acquisition of certain aircraft and engines that may be used for the payment of maintenance services, training, acquisition of spare parts and others. These credits are recorded as a reduction of the cost of acquisition of the related aircraft and engines and against other accounts receivable. These amounts are then charged to expense or recorded as an asset, when the credits are used to purchase additional goods or services. These credits are recorded within other liabilities in the consolidated statement of financial position when awarded by manufacturers. (iv) Revaluation and other reserves Administrative property in Bogota, Medellín, El Salvador, and San Jose is recorded at fair value less accumulated depreciation on buildings and impairment losses recognized at the date of revaluation. Valuations are performed with sufficient frequency to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. A revaluation reserve is recorded in other comprehensive income and credited to the asset revaluation reserve in equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognized in profit or loss, the increase is recognized in profit and loss. A revaluation deficit is recognized in the other comprehensive income, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation reserve. Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings. |
Non-current assets available for sale and discontinued operations | (i) Non-current Non-current Non-current Property and equipment and intangible assets, once classified as held for sale, are not subject to depreciation or amortization. |
Leased assets | (j) Leased assets Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases in accordance with IAS 17 “Leases”. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in interest expense in the consolidated statement of comprehensive income. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the lease term. Operating lease payments are recognized as an operating expense in the consolidated statement of comprehensive income during the lease term. Gains or losses related to sale–leaseback transactions classified as an operating lease after the sale are accounted for as follows: (i) They are immediately recognized as other (expense) income when it is clear that the transaction is established at fair value; (ii) If the sale price is below fair value, any profit or loss is immediately recognized as other (expense) income, however, if the loss is compensated by future lease payments at below market price, it is deferred and amortized in proportion to the lease payments over the contractual lease term; (iii) In the event of the sale price is higher than the fair value of the asset, the value exceeding the fair value is deferred and amortized during the period when the asset is expected to be used. The amortization of the gain is recorded as a reduction in lease expenses. If the sale–leaseback transactions result in financial lease, any excess proceeds over the carrying amount shall be deferred and amortized over the lease term as an other income. |
Borrowing costs | (k) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets in accordance with IAS 23 “Borrowing Costs”. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. |
Intangible assets | (l) Intangible assets Intangible assets acquired separately are initially measured at cost in accordance with IAS 38 “Intangible Assets”. The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in the consolidated statement of comprehensive income in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or in the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the consolidated statement of comprehensive income within depreciation and amortization. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash–generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Gains and losses arising from the de–recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the consolidated statement of comprehensive income when the asset is derecognized. Goodwill is measured initially at cost, represented by the excess of the sum of the consideration transferred and the amount recognized for the non-controlling After initial recognition, Goodwill is measured at cost less any accumulated impairment loss. For the purpose of impairment tests, Goodwill acquired in a business combination is assigned, from the date of acquisition, to each company acquired, that we consider a cash generating unit. The Group’s intangible assets include the following: (i) Software and webpages Acquired computer software licenses are capitalized on the basis of cost incurred to acquire, implement and bring the software into use. Costs associated with maintaining computer software programs are expensed as incurred. In case of development or improvement to systems that will generate probable future economic benefits, the Group capitalizes software development costs, including directly attributable expenditures on materials, labor, and other direct costs. Acquired software cost is amortized on a straight-line basis over its useful life. Licenses and software rights acquired by the Group have finite useful lives and are amortized on a straight–line basis over the term of the contract. Amortization expense is recognized in the consolidated statement of comprehensive income. (ii) Routes and trademarks Routes and trademarks are carried at cost, less any accumulated amortization and impairment. The useful life of intangible assets associated with routes and trademark rights are based on management’s assumptions of estimated future economic benefits. The intangible assets are amortized over their useful lives of between two and thirteen years. Certain routes and trademarks have indefinite useful lives and therefore are not amortized, but tested for impairment at least at the end of each reporting period. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. The Group expects to provide an indefinite service on the routes it has determined with an indefinite useful life and expects the support infrastructure to be maintained at those airports during the entire time that the routes exist. The analysis of demand and cash flows supports these assumptions because the facts and circumstances support the ability of the entity to continue providing air service indefinitely. (iii) Contract–based intangible assets The useful life of intangible assets associated with contract rights and obligations is based on the term of the contract and are carried at cost, less accumulated amortization and related impairment. (iv) Other intangible rights Contains projects related to technological developments to generate efficiencies in the operation. Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate: • The technical feasibility of completing the intangible asset so that the asset will be available for use or sale • Its intention to complete and its ability and intention to use or sell the asset • How the asset will generate future economic benefits • The availability of resources to complete the asset • The ability to measure reliably the expenditure during development Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in cost of sales. During the period of development, the asset is tested for impairment annually. |
Financial instruments - initial recognition, classification and subsequent measurement | (m) Financial instruments – initial recognition, classification and subsequent measurement (i) Financial assets Financial assets are classified in the initial recognition as follows: • Measured at amortized cost, • At fair value through changes in other comprehensive income (OCI) and • At fair value through profit or loss. The classification of financial assets in the initial recognition depends on the characteristics of the contractual cash flow of the financial asset and the Group’s business model for its administration. With the exception of commercial accounts receivable that do not contain a significant financing component, the Group initially measures a financial asset at its fair value plus, (in the case of a financial asset that does not obtain profit or loss), transaction costs. Commercial accounts receivable that do not contain a significant financing component are measured at the transaction price determined in accordance with IFRS 15. For a financial asset to be classified and measured at amortized cost or at fair value through OCI, it must give rise to cash flows that are “only capital and interest payments (OCI)” over the outstanding principal amount. This evaluation is known as the SPPI test and is performed at the instrument level. The Group’s business model for the management of financial assets refers to how it manages its financial assets to generate cash flows. The business model determines whether cash flows will result from the collection of contractual cash flows, the sale of financial assets or both. Purchases or sales of financial assets that require the delivery of assets within a time frame established by regulation or convention in the market (regular operations), are recognized on the trading date, that is, the date on which the Group Commit to buy or sell the asset. Subsequent measurement For subsequent measurement purposes, financial assets are classified into four categories: • Financial assets at amortized cost (debt instruments) • Financial assets at fair value through OCI with effect on accumulated gains and losses (debt instruments) • Financial assets designated at fair value through OCI without effect on accumulated gains and losses upon derecognition (equity instruments) • Financial assets at fair value through profit or loss Financial assets at amortized cost (debt instruments) The Group measures financial assets at amortized cost if the following conditions are met: • The financial asset is maintained within a business model with the objective of maintaining financial assets in order to collect the contractual cash flows. • The contractual terms of the financial asset give rise on specific dates to the cash flows that are only payments of the principal and interest on the principal amount pending payment. Financial assets at amortized cost are subsequently measured using the effective interest method (EIM) and are subject to impairment. Profits and losses are recognized in results when the asset is written off, modified or impaired. The Group’s financial assets at amortized cost include trade accounts receivable, accounts receivable with related parties, accounts receivable from employees and other non-current Financial assets at fair value through OCI (debt instruments) The Group measures debt instruments at fair value through OCI if the following conditions are met: • The financial asset is maintained within a commercial model with the objective of maintaining both to collect contractual cash flows and sell. • The contractual terms of the financial asset give rise on specific dates to the cash flows that are only payments of the principal and interest on the principal amount pending payment. For debt instruments at fair value through OCI, interest income, exchange revaluation and impairment losses or reversals are recognized in the other comprehensive income and are calculated in the same manner as for financial assets measured at amortized cost. The remaining changes in fair value are recognized in OCI. After derecognition, the change in accumulated fair value recognized in OCI is recognized in profit or loss. Financial assets designated at fair value through OCI (equity instruments) After initial recognition, the Group may elect to irrevocably classify its capital investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments. The classification is determined instrument by instrument. Gains and losses on these financial assets are never recognized as gains or losses. Dividends are recognized as other income in the income statement when the right to payment has been established, except when the Group benefits from such income as a recovery of part of the cost of the financial asset, in which case such earnings are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment evaluation. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated at initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the short term. Derivatives, including embedded implicit derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not only capital and interest payments are classified and measured at fair value through profit or loss, regardless of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments can be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are recorded in the statement of financial position, at fair value with net changes, recognized in the statement of comprehensive income. This category includes derivatives and listed equity investments that the Group had not irrevocably chosen to be classified at fair value through OCI. Dividends on listed equity investments are also recognized as other income in the statement of comprehensive income when the right to payment has been established. (ii) Impairment of financial assets The Group recognizes a reserve for expected credit losses (ECL) for all debt instruments that are not held at fair value through profit or loss. The ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. For trade accounts receivable and contractual assets, the Group applies a simplified approach when calculating ECL. Therefore, the Group does not track changes in credit risk, but recognizes a loss adjustment based on ECL for life at each reporting date. The Group has established a provision matrix that is based on its historical experience of credit losses, adjusted by specific prospective factors for debtors and the economic environment. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized primarily when: • The rights to receive cash flows from the asset have expired • The Group has transferred its rights to receive cash flows from the asset or has assumed the obligation to pay the cash flows received in full without significant delay to a third party under a “transfer” agreement, and (a) the Group has transferred substantially all the risks and benefits of the asset, or (b) the Group has not transferred or retained substantially all the risks and benefits of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a transfer agreement, it evaluates whether and to what extent it has retained the risks and benefits of ownership. When it has not transferred or retained substantially all the risks and benefits of the asset, nor transferred control of the asset, the Group continues to recognize the asset transferred to the extent of its continued participation. In this case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. The continuous participation that takes the form of a guarantee on the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group may have to repay. (iii) Financial liabilities Financial liabilities are classified, on initial recognition, as financial liabilities at fair value through profit or loss, loans and debt, accounts payable, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are initially recognized at fair value and, in the case of loans and debt and accounts payable, net of directly attributable transaction costs. The Group’s financial liabilities include trade accounts payable and other accounts payable, loans and debt, including bank overdrafts and derivative financial instruments. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated at initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the short term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in the hedging relationships defined by IFRS 9. Separate embedded derivatives are also classified as held for trading unless they are designated as equity instruments. effective coverage. Gains or losses on liabilities held for trading are recognized in the consolidated statement of income. The financial liabilities designated in the initial recognition at fair value through profit or loss are designated at the initial recognition date, and only if the criteria of IFRS 9 are met. The Group has not designated any financial liability at fair value with changes in results. Loans carried at amortized cost This is the most relevant category for the Group. After initial recognition, interest-bearing loans are subsequently measured at amortized cost using the effective interest method (EIM). Profits and losses are recognized in results when liabilities are derecognized in accounts, as well as through the EIM amortization process. The amortized cost is calculated taking into account any discount or premium on the acquisition and the fees or costs that are an integral part of the EIM. The amortization of the EIM is included as financial costs in the income statement. This category generally applies to loans and debt that accrue interest. Derecognition financial instruments Financial liability is derecognized when the obligation under the liability is canceled or expires. When an existing financial liability is replaced by another of the same lender in substantially different terms, or the terms of an existing liability are substantially modified, such exchange or modification is treated as the derecognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement. (iv) Compensation of financial assets and liabilities Financial assets and liabilities are offset and the net amount is recorded in the consolidated statements of financial position, if and only if, you have the legal right to offset the amounts recognized and there is an intention to cancel them on a net basis, or, to realize the assets and cancel the liabilities simultaneously. (v) Fair value of financial instruments The fair value of the financial instruments that are traded in the active markets on each reporting date is based on the prices quoted on the market (on the prices of purchase and sale prices on the stock exchange), not including deductions for transaction costs. In the case of financial instruments that are not traded in active markets, fair value is determined using valuation techniques. Such techniques may include recent purchase and sale transactions at arm’s length prices, reference to the fair value of other basically identical financial instruments, an analysis of the discounted cash flow, or recourse to other valuation models. Note 30 includes an analysis of the fair values of financial instruments and more details on how they are valued. |
Derivative financial instruments and hedge accounting | (n) Derivative financial instruments and hedge accounting The Group uses derivative financial instruments such as forward currency contracts, interest rate contracts and forward commodity contracts to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into. Subsequent to initial recognition, derivatives are carried at fair value as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Future contracts from commodities that are entered into and continue to be held for the purpose of the receipt or delivery of a non–financial item in accordance with the Group’s expected purchase, sale or usage requirements are held at cost. Any gains or losses arising from changes in the fair value of derivatives are taken directly into the consolidated statement of comprehensive income, except for the effective portion of derivatives assigned as cash flow hedges, which is recognized in other comprehensive income. Cash flow hedges At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. Cash flow hedges which meet the strict criteria for hedge accounting are accounted for as follows: The effective portion of the gain or loss on the hedging instrument is recognized directly as other comprehensive income in the equity, while any ineffective portion of cash flow hedge related to operating and financing activities is recognized immediately in the consolidated statement of comprehensive income. Amounts recognized as other comprehensive income are transferred to the consolidated statement of comprehensive income when the hedged transaction affects earnings, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. Where the hedged item is the cost of a non–financial asset or non–financial liability, the amounts recognized as other comprehensive income are transferred to the initial carrying amount of the non–financial asset or liability. If the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or loss previously recognized in equity is transferred to the consolidated statement of comprehensive income. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, any cumulative gain or loss previously recognized in other comprehensive income remains in other comprehensive income until the forecast transaction or firm commitment affects profit or loss. The Group uses forward currency contracts and cross currency swaps as hedges of its exposure to foreign currency risk in forecasted transactions and firm commitments, as well as forward commodity contracts for its exposure to volatility in the commodity prices. Refer to Note 27 for more details. Current versus non–current classification of derivatives instruments Derivative instruments that are not designated as effective hedging instruments are classified as current or non–current or separated into a current and non–current portion based on an assessment of the facts and circumstances (i.e., the underlying contracted cash flows). Where the Group will hold a derivative as an economic hedge (and does not apply hedge accounting) for a period beyond 12 months after the reporting date, the derivative is classified as non–current (or separated into current and non–current portions) consistent with the classification of the underlying item. Derivative instruments that are designated as, and are effective hedging instruments, are classified consistently with the classification of the underlying hedged item. The derivative instrument is separated into a current portion and a non–current portion only if a reliable allocation can be made Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and the combined instrument is not measured at fair value through other comprehensive income. |
Expendable spare parts and supplies | (o) Expendable spare parts and supplies Expendable spare parts relating to flight equipment are measured at the lower of average cost and net realizable value. Net realizable value is the estimated base stock cost reduced by the allowance for obsolescence. |
Impairment of non-financial assets | (p) Impairment of non–financial assets We review flight equipment and other long-lived assets used in operations for impairment losses when events and circumstances indicate the assets may be impaired. Factors which could be indicators of impairment include, but are not limited to, (1) a decision to permanently remove flight equipment or other long lived assets from operations, (2) significant changes in the estimated useful life, (3) significant changes in projected cash flows, (4) permanent and significant declines in fleet fair values and (5) changes to the regulatory environment. For long-lived assets held for sale, we discontinue depreciation and record impairment losses when the carrying amount of these assets is greater than the fair value less the cost to sell. For purposes of this testing, the Group has generally identified the aircraft fleet type as the lowest level of identifiable cash flows. An impairment charge is recognized when the asset’s carrying value exceeds the greater value of its net undiscounted future cash flows or its fair market value. The amount of the charge is the difference between the asset’s carrying value and the recovareble amount. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment annually or more frequently if events or circumstances indicate that the asset may be impaired. Goodwill and indefinite-lived assets are reviewed for impairment on an annual basis or on an interim basis whenever a triggering event occurs. |
Cash and cash equivalents | (q) Cash and cash equivalents Cash and cash equivalents in the consolidated statement of financial position comprise cash at banks and on hand and short–term deposits with original maturity of three months or less, which are subject to an insignificant risk of change in value. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short–term deposits as defined above, net of outstanding bank overdrafts, if any. |
Maintenance deposits | (r) Maintenance deposits Maintenance deposits correspond to deposits paid to lessors based on cycles, flight hours, or fixed monthly amounts, depending on the specific nature of each provision. Rates used for the calculation and monthly amounts are specified in each lease agreement. The maintenance deposits paid to aircraft lessors are recorded within “Deposits and other assets” when they are susceptible for recovery, to the extent that such amounts are expected to be used to fund future maintenance activities. Deposits that are not probable of being used to fund future maintenance activities are expensed as incurred. The maintenance deposits refer to payments made by the Group to leasing companies to be used in future aircraft and engine maintenance work. Management performs regular reviews of the recovery of maintenance deposits and believes that the values reflected in the consolidated statement of financial position are recoverable. These deposits are used to pay for maintenance performed, and might be reimbursed to the Group after the execution of a qualifying maintenance service or when the leases are completed, according to the contractual conditions. Certain lease agreements establish that the existing deposits, in excess of maintenance costs are not refundable. Such excess occurs when the amounts used in future maintenance services are lower than the amounts deposited. Any excess amounts expected to be retained by the lessor upon the lease contract termination date, which are not considered material, are recognized as additional aircraft lease expense. Payments related to maintenance that the Group does not expect to perform are recognized when paid as additional rental expense. Some of the aircraft lease agreements do not require maintenance deposits. |
Security deposits for aircraft and engines | (s) Security deposits for aircraft and engines The Group must pay security deposits for certain aircraft and engine lease agreements. Reimbursable aircraft deposits are stated at cost. Deposits that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Such assets are measured at amortized cost using the effective interest method, less any impairment. Interest income is recognized by applying the effective interest rate. Deposits for guarantee and collateral are represented by amounts deposited with lessors, as required at the inception of the lease agreements. The deposits are typically denominated in U.S. Dollars, do not bear interest and are reimbursable to the Group upon termination of the agreements. |
Provisions | (t) Provisions A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is more likely than not that an outflow of economic benefits will be required to settle the obligation in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”. Provisions are set up for all legal claims related to lawsuits for which it is probable that an outflow of funds will be required to settle the legal claims obligation and a reasonable estimate can be made. The assessment of probability of loss includes assessing the available evidence, the hierarchy of laws, available case law, the most recent court decision and their relevance in the legal system, as well as the assessment of legal counsel. If the effect of the time value of money is material, provisions are discounted using a current pre–tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a financial cost. For certain operating leases, the Group is contractually obligated to return aircraft in a defined condition. The Group recognizes for restitution costs of the aircraft held under operating leases and accumulates them monthly during the term of the lease contract. Restitution costs are based on the net present value of the estimated average costs of returning the aircraft and are recognized in the consolidated statement of comprehensive income in “Maintenance and repairs.” |
Employee benefits | (u) Employee benefits The Group sponsors defined benefit pension plans, which require contributions to be made to separately administered funds. The Group has also agreed to provide certain additional post–employment benefits to senior employees in Colombia. These benefits are unfunded. The cost of providing benefits under the defined benefit plans is determined separately for each plan using the projected unit credit cost method. Actuarial gains and losses for defined benefit plans are recognized in full in the period in which they occur in other comprehensive income. The defined benefit asset or liability comprises the present value of the defined benefit obligation (using a discount rate based on Colombian Government bonds), and less the fair value of plan assets out of which the obligations are to be settled. Plan assets are held by CAXDAC, nor can they be paid directly to the Group. Fair value is based on market price information and in the case of quoted securities on the published bid price. The value of any defined benefit asset recognized is restricted and the present value of any economic benefits available in the form of refunds from the plan or reductions in the future contributions to the plan. Under IAS 19 (issued in June 2011 and amended in November 2013), the Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability (asset) at the beginning of the annual period. It takes into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. The net interest on the net defined benefit liability (asset) comprises: • Interest income on plan assets. • Interest cost on the defined benefit obligation; and • Interest on the effect of the asset ceiling Additionally the Group offers the following employee benefits: (i) Defined contribution plans Obligations for contributions to defined contribution pension plans are recognized as an expense in the consolidated statement of comprehensive income when they are due. (ii) Termination benefits Termination benefits are recognized as an expense at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs. (v) Employee benefits The Company updated its share-based payment plan, by which eligible participants receive payments with virtual shares of Avianca Holdings S.A. that are quoted in NYC, as long as certain conditions and short-term indicators are met. The Company accounts for the Share-based Plan as a stock-based payment settled in cash in accordance with the provisions of IFRS 2 “Share-based Payments”, whereby the Company accumulates a liability at the end of each reporting period based on the estimated fair value of the prizes that are expected to be exchanged. |
Prepaid expenses | (w) Prepaid expenses (i) Prepaid commissions Commissions paid for tickets sold are recorded as prepaid expenses and expensed when the tickets are used. (ii) Prepaid rent Prepaid rent for aircraft corresponds to prepaid contractual amounts that will be applied to future lease payments over a term of less than one year. |
Interest income and interest expense | (x) Interest income and interest expense Interest income comprises interest income on funds invested (including available–for–sale financial assets), changes in the fair value of financial assets at fair value through the consolidated statement of comprehensive income and gains on interest rate hedging instruments that are recognized in the consolidated statement of comprehensive income. Interest income is recognized as accrued in the consolidated statement of comprehensive income, using the effective interest rate method. Interest expense comprises interest expense on borrowings, unwinding of the discount on provisions, changes in the fair value of financial assets at fair value through the consolidated statement of comprehensive Income, and losses on interest rate hedging instruments that are recognized in the consolidated statement of comprehensive income. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in the consolidated statement of comprehensive income using the effective interest method. |
Reporting entity (Tables)
Reporting entity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Significant Subsidiaries | The following are the significant subsidiaries in the Group included within these financial statements: Name of Subsidiary Country of Ownership 2018 2017 Avianca Ecuador Ecuador 99.62 % 99.62 % Aerovias del Continente Americano S.A. (Avianca) Colombia 99.98 % 99.98 % Avianca, Inc. EE.UU. 100 % 100 % Avianca Leasing, LLC EE.UU. 100 % 100 % Grupo Taca Holdings Limited Bahamas 100 % 100 % Latin Airways Corp. Panama 100 % 100 % LifeMiles Ltd. Bermuda 70 % 70 % Avianca Costa Rica S.A. Costa Rica 92.40 % 92.40 % Taca International Airlines, S.A. El Salvador 96.83 % 96.84 % Tampa Cargo Logistics, Inc. EE.UU. 99.98 % 99.98 % Tampa Cargo S.A.S. Colombia 99.98 % 99.98 % Technical and Training Services, S.A. de C.V. El Salvador 99 % 99 % Avianca Peru S.A. Perú 100 % 100 % Vu–Marsat S.A. Costa Rica 100 % 100 % |
Summary of the Movements in the Financial Statements Due to the Sale and Corresponding Loss | The following is a summary of the movements in the financial statements due to the sale and corresponding loss of control of Getcom Int’l Investments S.L Amount of cash in Getcom Int’l Investments S.L. $ 1,764 Carrying amount of the Getcom Int’l Investments S.L. assets, without cash 20,561 Carrying amount of the Getcom Int’l Investments S.L. liabilities (6,980 ) Net Assets of the subsidiary $ 15,345 Non-controlling (7,674 ) AVH participation 7,671 Received consideration: Portion of the consideration consisting of cash 18,000 Portion of the consideration consisting of accounts receivables 250 Fair Value of the received consideration $ 18,250 Gains on the sale of the subsidiary $ 10,579 |
Schedule of Total Fleet Consisting | As of December 31, 2018 and 2017, Avianca Holdings S.A. had a total fleet consisting of: 2018 2017 Aircraft Owned/ Financial Operating Lease Total Owned/ Financial Operating Lease Total Airbus A-318 10 — 10 10 — 10 Airbus A-319 23 4 27 23 5 28 Airbus A-320 35 26 61 37 25 62 Airbus A-320 3 4 7 — 2 2 Airbus A-321 7 6 13 5 8 13 Airbus A-321 — 2 2 — — — Airbus A-330 3 7 10 1 9 10 Airbus A-330F 6 — 6 6 — 6 Airbus A-300F-B4F 5 — 5 5 — 5 Boeing 787-8 8 5 13 7 5 12 ATR-42 2 — 2 2 — 2 ATR-72 15 — 15 15 — 15 Boeing 767F 2 — 2 2 — 2 Boeing 767 — — — — 1 1 Cessna Grand Caravan 13 — 13 13 — 13 Embraer E-190 10 — 10 10 — 10 142 54 196 136 55 191 |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Estimated Useful Lives | Estimated useful lives are as follows: Estimated useful life (years) Flight equipment: Aircraft 10 – 30 Aircraft components and engines Useful life of fleet associated with component or engines Aircraft major overhaul repairs 4 – 12 Rotable parts Useful life of fleet associated Leasehold improvements Lesser of remaining lease term and estimated useful life of the leasehold improvement Administrative Property 20 – 50 Vehicles 2 – 10 Machinery and equipment 2 – 15 |
New and amended standards and_2
New and amended standards and interpretations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Effects of the Adoption of IFRS 15 Standard in Consolidated Financial Statements Position | The effects of the adoption of IFRS 15 standard in the consolidated financial statements position of the Group’s was as follows: Reported as of Application of the new Reported as of Deferred revenue (1)(2) Total Assets $ 6,861,396 — $ 6,861,396 Total Liabilities 5,521,696 199,765 5,721,461 Total Equity 1,339,700 (199,765 ) 1,139,935 (1) An adjustment of $192,925, was recognized as an increase to Frequent flyer deferred revenue. This adjustment did not have a related tax impact due to is originated in LifeMiles Ltd. that is considered an exempted company for Bermuda tax purposes until March , 2035 with the option of extending this term. (2) An adjustment of $6,840 was recognized to an increase to air traffic liability, in exchange for date, change of destination and name changes. This adjustment did not have a related tax impact. |
Schedule of Effects of the Adoption of IFRS 15 Standard in Consolidated Financial Statements of Comprehensive Income | The effects on the adoption of the standard in the consolidated financial statements of comprehensive income of the Group was as follows: Amounts for the Application of the new standard Amounts for the Deferred revenue adjustment (1) Reclasifications (2) Operating revenue: Passager $ 4,059,170 $ (8,239 ) $ 23,460 $ 4,074,391 Cargo and other 839,899 — (23,460 ) 816,439 Total operating revenue 4,899,069 (8,239 ) — 4,890,830 Total operating expenses 4,658,714 — — 4,658,714 Operating profit 240,355 (8,239 ) — 232,116 Other no operating Income and expenses (210,760 ) — — (210,760 ) Profit before tax 29,595 (8,239 ) — 21,356 Income tax expense (20,213 ) — — (20,213 ) Net loss for the year $ 9,382 $ (8,239 ) $ — $ 1,143 (1) Corresponds to the effect of the change in the recognition of some ancillaries until the date of flight and income from the sale of miles at the time of redemption. (2) In accordance with the recognition criteria of IFRS 15, the reclassification associated with the items for the income of ancillaries is directly related to the income of passengers. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Operational Information by Reportable Segment | The Group’s operational information by reportable segment for the year ended December 31, 2018 are as follows: For the year ended December 31, 2018 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 4,577,021 $ 313,809 — $ 4,890,830 Inter-segment 148,882 1,867 (150,749 ) — Total operating revenue 4,725,903 315,676 (150,749 ) 4,890,830 Operating expenses 4,226,414 193,269 (150,357 ) 4,269,326 Depreciation, amortization and impairment 388,960 12,976 (12,548 ) 389,388 Operating profit 110,529 109,431 12,156 232,116 Interest expense (182,230 ) (30,064 ) — (212,294 ) Interest income 8,062 2,053 — 10,115 Derivative instruments 567 (827 ) — (260 ) Foreign exchange (9,238 ) 18 — (9,220 ) Equity method profit 899 — — 899 Income tax expense (20,258 ) 45 — (20,213 ) Net (loss) profit for the period $ (91,669 ) $ 80,656 $ 12,156 $ 1,143 Total Assets $ 7,098,272 $ 248,937 $ (228,566 ) $ 7,118,643 Total Liabilities $ 5,426,718 $ 862,834 $ (163,370 ) $ 6,126,182 The Group’s operational information by reportable segment for the year ended December 31, 2017 are as follows: For the year ended December 31, 2017 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 4,167,658 $ 274,026 $ — $ 4,441,684 Inter-segment 112,037 4,366 (116,403 ) — Total operating revenue 4,279,695 278,392 (116,403 ) 4,441,684 Operating expenses 3,797,456 156,627 (119,456 ) 3,834,627 Depreciation and, amortization 313,314 12,876 (12,777 ) 313,413 Operating profit 168,925 108,889 15,830 293,644 Interest expense 174,657 8,675 — 183,332 Interest income (11,998 ) (1,550 ) — (13,548 ) Derivative instruments 2,536 — — 2,536 Foreign exchange 20,161 2 — 20,163 Income tax expense 19,457 652 — 20,109 Equity method profit 980 — — 980 Net (loss) profit for the Period $ (34,908 ) $ 101,110 $ 15,830 $ 82,032 Total Assets $ 6,796,848 $ 248,919 $ (184,371 ) $ 6,861,396 Total Liabilities $ 5,082,763 $ 545,951 $ (107,018 ) $ 5,521,696 The Group’s operational information by reportable segment for the year ended December 31, 2016 are as follows: For the year ended December 31, 2016 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 3,898,271 $ 240,067 $ — $ 4,138,338 Inter-segment 89,071 3,834 (92,905 ) — Total operating revenue 3,987,342 243,901 (92,905 ) 4,138,338 Cost of loyalty rewards 53,901 120,589 (78,785 ) 95,705 Operating expenses 3,509,122 19,617 (14,122 ) 3,514,617 Depreciation and, amortization 269,534 12,789 (12,777 ) 269,546 Interest expense 172,381 249 — 172,630 Interest income (13,960 ) 906 — (13,054 ) Derivative instruments (3,321 ) — — (3,321 ) Foreign exchange 23,952 (13 ) — 23,939 Income tax expense 32,384 1,706 — 34,090 Net (loss) profit for the Period $ (56,651 ) $ 88,058 $ 12,779 $ 44,186 Total Assets $ 6,328,740 $ 227,382 $ (204,787 ) $ 6,351,335 Total Liabilities $ 4,842,190 $ 203,542 $ (114,658 ) $ 4,931,074 (1) 2018 Financial Information is prepared under IFRS 15 “Revenue from Contracts with clients” and for 2017 and 2016 it was prepared under IFRIC13 “ Customer loyalty programs” (2) Loyalty revenue for miles redeemed is allocated to passenger revenue and, other loyalty revenue is recorded in other revenue. |
Schedule of Revenues by Geographic Area | The Group’s revenues by geographic area for the years ended December 31, 2018, 2017 and 2016 are as follows: For the year ended December 31, 2018 2017 2016 United States of America $ 462,091 $ 565,910 $ 539,365 Central America and the Caribbean 248,896 539,682 442,841 Colombia 2,580,979 1,961,600 1,831,218 South America (excluding–Colombia) 732,586 933,569 840,934 Other 866,278 440,923 483,980 Total operating revenue $ 4,890,830 $ 4,441,684 $ 4,138,338 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Contractual Maturities of Non-derivative Financial Liabilities | The following are the contractual maturities of non–derivative financial liabilities, including estimated interest payments. Amounts under the “Years” columns represent the contractual undiscounted cash flows of each liability. As of December 31, 2018 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 119,866 $ 121,194 $ 121,194 $ — $ — $ — $ — Long–term Debt 3,300,422 3,992,304 627,272 595,696 645,103 690,558 1,433,675 Bonds 587,292 649,020 75,988 573,032 — — — Total debt 4,007,580 4,762,518 824,454 1,168,728 645,103 690,558 1,433,675 Accounts payable 437,506 437,506 437,506 — — — — Accrued Expenses 108,707 108,707 108,707 — — — — Contractual maturities $ 4,553,793 $ 5,308,731 $ 1,370,667 $ 1,168,728 $ 645,103 $ 690,558 $ 1,433,675 As of December 31, 2017 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 79,263 $ 80,459 $ 80,459 $ — $ — $ — $ — Long–term Debt 3,063,801 3,568,473 586,446 485,333 498,336 460,022 1,538,336 Bonds 609,049 732,149 81,062 78,140 572,947 — — Total debt 3,752,113 4,381,081 747,967 563,473 1,071,283 460,022 1,538,336 Accounts payable 140,848 140,848 140,848 — — — — Accrued Expenses 150,513 150,513 150,513 — — — — Contractual maturities $ 4,043,474 $ 4,672,442 $ 1,039,328 $ 563,473 $ 1,071,283 $ 460,022 $ 1,538,336 |
Summary of Quantitative Data About Exposure to Currency Risk | The summary quantitative data about the Group’s exposure to currency risk as reported to the management of the Group based on its risk management policy was as follows: December 31, 2018 USD Colombian Pesos Euros Argentinean Brazilian Others Total Cash and cash equivalents $ 172,966 $ 33,822 $ 7,501 $ 16,430 $ 20,769 $ 26,463 $ 277,951 Accounts receivable, net of expected credit losses 186,841 56,862 6,863 6,843 33,632 38,909 329,950 Secured debt and bonds (3,115,356 ) (29,316 ) (170,670 ) — — (14,041 ) (3,329,383 ) Unsecured debt (675,699 ) (2,498 ) — — — — (678,197 ) Accrued expenses (91,118 ) (20,363 ) (7,577 ) (231 ) (717 ) (888 ) (120,894 ) Accounts payable (505,789 ) (97,830 ) (22,293 ) (5,471 ) (16,203 ) (92,115 ) (739,701 ) Net financial position exposure $ (4,028,155 ) $ (59,323 ) $ (186,176 ) $ 17,571 $ 37,481 $(41,672) $(4,260,274) Sensitivity analysis Change forecast in exchange rate (4.03 )% (5.64 )% 2.36 % (4.39 )% Effect on profit of the year $ 2,391 $ 10,500 415 (1,645 ) December 31, 2017 USD Colombian Pesos Euros Venezuelan Argentinean Brazilian Others Total Cash and cash equivalents $ 342,524 $ 70,957 $ 20,914 $ 11 $ 6,874 $ 19,468 $ 48,234 $ 508,982 Available-for-sale — — — 55 — — — 55 Accounts receivable, net of expected credit losses 71,640 133,319 50,983 102 8,282 21,749 194,717 480,792 Secured debt and bonds (2,931,194 ) (61,784 ) (127,416 ) — — — — (3,120,394 ) Unsecured debt (628,767 ) (2,952 ) — — — — — (631,719 ) Accounts payable (286,401 ) (144,146 ) (10,239 ) (119 ) (7,184 ) (11,943 ) (72,016 ) (532,048 ) Net financial position exposure $ (3,432,198 ) $ (4,606 ) $ (65,758 ) $ 49 $ 7,972 $ 29,274 $ 170,935 $ (3,294,332 ) Sensitivity analysis Change of 1% in exchange rate Effect on profit of the year $ — $ (46 ) $ (658 ) $ — $ 80 $ 293 $ — $ — |
Summary of Interest Rate Profile of the Company's Interest-bearing Financial Instruments | At the reporting date the interest rate profile of the Group’s interest–bearing financial instruments is: Carrying amount – asset/(liability) December 31, December 31, Fixed rate instruments Financial assets $ 68,706 $ 340,877 Financial liabilities (3,162,548 ) (3,003,336 ) Interest rate swaps 5,063 2,990 Total $ (3,088,779 ) $ (2,659,469 ) Floating rate instruments Financial assets 14,798 $ 51,042 Financial liabilities (845,031 ) (748,777 ) Total $ (830,233 ) $ (697,735 ) |
Summary of Debt-to-capital Ratio of the Company | Following is a summary of the debt–to/capital ratio of the Group: December 31, December 31, Debt 16 $ 4,007,580 $ 3,752,113 Less: cash and cash equivalents and restricted cash 7 (277,951 ) (514,447 ) Total net debt 3,729,629 3,237,666 Total equity attributable to the Company 1,155,587 1,415,650 Total Capital $ 4,885,216 $ 4,653,316 Net debt–to–capital ratio 76 % 68 % |
Schedule of Fair Values of Financial Assets and Liabilities | The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statement of financial position as of December 31, 2018 are as follows: December 31, 2018 Notes Carrying Fair value Financial assets Investments 12 $ 67,306 $ 67,306 Derivative instruments 27 7,456 7,456 Plan assets 20 178,594 178,594 $ 253.356 $ 253.356 Financial liabilities Short term borrowings and long–term debt 16 $ 4,007,580 $ 4,022,707 Derivative instruments 28 (17 ) (17 ) $ 4,007,563 $ 4,022,690 The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statement of financial position as of December 31, 2017 are as follows: December 31, 2017 Notes Carrying Fair value Financial assets Derivative instruments 27 23,539 23,539 Plan assets 20 189,697 189,697 $ 213,236 $ 213,236 December 31, 2017 Notes Carrying Fair value Financial liabilities Short term borrowings and long–term debt 16 $ 3,752,113 $ 3,587,841 Derivative instruments 28 137 137 $ 3,752,250 $ 3,587,978 |
Cash and cash equivalents and_2
Cash and cash equivalents and restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Cash and Cash Equivalents and Restricted Cash | Cash and cash equivalents and restricted cash as of December 31, 2018 and 2017 are as follows: December 31, December 31, Cash on hand and bank deposits $ 264,565 $ 490,657 Demand and term deposits (1) 8,543 18,325 Cash and cash equivalents 273,108 508,982 Restricted cash (2) 4,843 5,465 Cash and cash equivalents and restricted cash $ 277,951 $ 514,447 (1) As of December 31, 2018 and 2017, within the cash equivalents, there are demand and term deposits that amounted to $8,543 and $ 18,325, respectively. The use of term deposits depends on the cash requirements of the Group. As of December 31, 2018, term deposits accrue annual interest rates between 2,61% and 4,85% in Colombian pesos and between 2,05% and 4,59% in dollars. As of December 31, 2017, term deposits accrue annual interest rates between 3.77% and 5.52% in colombian pesos and between 2.10% and 6.50% in dollars. (2) As of December 31, 2018, the restricted cash includes resources in administration in an trust, which have a specific destination in relation to the object for which they were constituted, they consist among others in the payment of capital and interests to the bondholders. |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Trade and Other Receivables | Trade and other receivables as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Trade $ 258,186 $ 190,501 Employee advances 4,848 6,213 Other (1) 73,056 46,596 $ 336,090 $ 243,310 Less Allowance for expected credit losses (12,430 ) (13,180 ) Total $ 323,660 $ 230,130 Net current $ 288,157 $ 226,015 Net non–current 35,503 4,115 Total $ 323,660 $ 230,130 (1) Corresponds mainly to amounts charged to Rolls Royce to contractual rights acquired in connection with failures in Trent 1000 engines. |
Summary of Changes in Allowance for Doubtful Accounts | Changes during the year in the allowance as follows: December 31, 2018 December 31, 2017 Balance at beginning of year $ 13,180 $ 13,256 Adjustment implementation IFRS 9 (See note 4) (216 ) — Bad debt expense 4,526 4,363 Write–off against the allowance (5,060 ) (4,439 ) Total $ 12,430 $ 13,180 |
Summary of Aging of Accounts Receivables | The aging of accounts receivables at the end of the reporting period as follows: December 31, December 31, Neither past due nor impaired 169,589 127,046 Past due 1–30 days 33,721 23,537 Past due 31–90 days 17,506 17,151 Past due 91 days 37,370 22,767 Total trade $ 258,186 $ 190,501 Allowance for expected credit losses (12,430 ) (13,180 ) Net accounts receivable $ 245,756 $ 177,321 |
Balances and transactions wit_2
Balances and transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Summary of Related Party Transactions | The following is a summary of related party transactions for the years ended December 31, 2018 and 2017: Company Country December 31, 2018 December 31, 2017 Receivables Payables Revenues Expenses Receivables Payables Revenues Expenses SP SYN Participações S.A. Brazil $ — $ — $ 585 $ — $ 13,853 $ — $ 860 $ — OceanAir Linhas Aéreas, S.A. Brazil 6,199 1,078 23,062 58,479 1,725 4,264 28,906 33,888 Aerovias Beta Corp. Panama — — — — 977 — — — Aeromantenimiento, S.A. El Salvador 10 — — — 17 — — 622 Transportadora del Meta S.A.S. Colombia 13 569 19 4,781 — 222 18 3,444 Empresariales S.A.S. Colombia — 364 5 3,511 — 467 3 10,107 Global Operadora Hotelera S.A.S Colombia 9 532 7 5,954 8 636 9 5,340 Synergy Aerospace Corp. Panamá — — — — 512 1,262 — 4,201 Corp. Hotelera Internac S.A. El Salvador — 203 — 745 — 83 — 432 Other 59 81 6 2 112 253 23 846 Subtotal $ 6,290 $ 2,827 $ 23,684 $ 73,472 $ 17,204 $ 7,187 $ 29,819 $ 58,880 Receivables Payables Receivables Payables Short–term $ 6,290 $ 2,827 $ 17,204 $ 7,187 |
Disclosure of Transaction of Related Party, Nature of Services | All related parties are companies controlled by the same ultimate shareholder that controls Avianca Holdings S.A. The following is a description of the nature of services provided by and to related parties. These transactions include: Related party Nature of Services Aeromantenimiento S.A. Aircraft maintenance company that provides aircraft overhaul services to the Group. Aerovías Beta Corp. Accounts receivable correspond to amounts due to Latin Airways Corp. as a result of the spin-off Corporación Hotelera Internacional S.A. Global Operadora Hotelera S.A.S. Accommodation services for crews and employees of the Group. Empresariales S.A.S. Transportation services for employees of Avianca, S.A. OceanAir Linhas Aéreas, S.A. The Group provides to and receives from OceanAir logistic services, marketing and advertising, maintenance services, and training services. The Group has entered into a licensing agreement with OceanAir for the use of the Avianca trademark in Brazil. Additionally, the Group leases aircraft to OceanAir (see Note 33). On November 4, 2014, Tampa Cargo S.A.S., entered into a Block Space Agreement with OceanAir Linhas Aéreas, S.A., acquiring priority rights and a minimum guaranteed cargo capacity on certain flights of the carrier. SP SYN Participações S.A. Avianca, S.A. (“Avianca”) and SP SYN Participações S.A. (“SP SYN”) signed a novation of the receivables from OceanAir Linhas Aéreas, S.A. (“OceanAir”) whereby SP SYN would be the new debtor. Synergy Aerospace Corp. The balances of accounts receivable correspond to reserves on aircraft engines and maintenance contracts. The balances payable originate in payments executed by Synergy Aerospace Corp. on behalf of Latin Airways Corp. Related party Nature of Services Transportadora del Meta S.A.S. It provides Avianca, S.A. ground transportation services for cargo / courier shipments. |
Summary of Key Management Personnel Short-Term Compensation | Following the detail for short-term compensation. December 31, 2018 December 31, 2017 Salaries $ 13,791 $ 13,571 Bonuses 8,775 5,054 Social benefits 3,027 2,604 Loans — 55 Compensation 73 31 Others 833 759 Total $ 26,499 $ 22,074 |
Expendable spare parts and su_2
Expendable spare parts and supplies, net of provision for obsolescence (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Expendable Spare Parts and Supplies | Expendable spare parts and supplies as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Expendable spare parts $ 83,151 $ 86,705 Supplies 7,244 10,543 Total $ 90,395 $ 97,248 |
Summary of Rollforward of Inventory Allowance | Changes during the year in the allowance as follows: 2018 2017 Balance at beginning of year $ 18,631 $ 24,705 Provisions reverse (3,203 ) (4,858 ) Write-offs against the allowance (8,923 ) (1,216 ) Balance at end of year $ 6,505 $ 18,631 |
Prepayments (Tables)
Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Prepaid Balances | As of December 31, 2018 and 2017 prepaid balances are as follows: December 31, 2018 December 31, 2017 Prepaid commissions (1) $ 27,991 $ 33,170 Prepaid compensations clients 37,130 29,754 Advance payments on operating aircraft leases 12,470 9,507 Premiums for insurance policies 2,401 12,142 Other 19,872 15,184 Total $ 99,864 $ 99,757 (1) Advance payment made to IATA for service charges made by airlines. This is mainly the case with Airlines that belong to Star Alliance for the accumulation of miles, use of VIP lounges and Reservation Systems, Travelport Global Distribution System B.V., Services of Bolivian Airports, S.A., United Airlines Inc. |
Deposits and other assets (Tabl
Deposits and other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Deposits and Other Assets | Deposits and other assets as of December 31, 2018 and 2017 are as follows: Notes December 31, 2018 December 31, 2017 Short term: Deposits with lessors (1) $ 15,535 $ 111,229 Short term investments (2) 59,847 59,332 Guarantee deposits (3) 2,283 2,003 Others (4) 9,542 8,871 Sub–Total 87,207 181,435 Fair value of derivative instruments 27 2,566 20,549 Total $ 89,773 $ 201,984 Long term: Deposits with lessors (1) $ 73,569 $ 63,962 Long term investments – 7,459 9,214 Guarantee deposits (3) 14,715 16,531 Others (4) 14,983 23,703 Sub–Total 110,726 113,410 Fair value of derivative instruments 27 4,778 2,990 Total $ 115,504 $ 116,400 (1) Corresponds mainly to maintenance deposits in connection with leased aircraft. These deposits are applied to future maintenance event costs, and are calculated on the basis of a performance measure, such as flight hours or cycles. They are specifically intended to guarantee maintenance events on leased aircraft. Maintenance deposits paid do not transfer the obligation to maintain aircraft or the costs associated with maintenance activities. Maintenance deposits are reimbursable to the Group upon completion of the maintenance event in an amount equal to the lesser of (a) the amount of the maintenance deposits held by the lessor associated with the specific maintenance event or (b) the qualifying costs related to the specific maintenance event. The variation corresponds to the change of guarantee on the debt since now the group constitutes letters of credit with the same lessor in order to ensure the payments. (2) Short term classification corresponds to funds invested that will expire within one year. All treasury cash surpluses are invested as defined and outlined in the Group’s Investment Policy. Otherwise, they are classified as long-term. The restricted investments correspond to CDT’s and bonds constituted by the Trusts held by the Group. (3) Corresponds mainly to amounts paid to suppliers in connections with leasehold of airport facilities, among other service agreements. (4) It mainly corresponds to guarantee deposits pending return with Airbus for delivery of aircraft and funds to guarantee 15% of the outstanding amount of the debt with the bondholders. |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Carrying Amounts | If land and buildings were measured using the cost model, the carrying amounts would be as follows: December 31, 2018 December 31, 2017 Cost $ 102,351 $ 128,791 Accumulated depreciation (10,371 ) (11,230 ) Net carrying amount $ 91,980 $ 117,561 |
Schedule of Flight Equipment, Property and Other Equipment | Flight equipment, property and other equipment as of December 31, 2018 and 2017 is as follows: Flight Capitalized Rotable parts Reimbursement Administrative Others Total Gross: December 31, 2017 $ 4,808,885 $ 555,619 $ 219,067 $ 159,303 $ 158,217 $ 294,306 $ 6,195,397 Additions 516,614 238,597 30,098 111,711 1,615 71,437 970,072 Disposals (81,381 ) (3,632 ) (22,843 ) (11,014 ) (3,546 ) (48,165 ) (170,581 ) Transfers 42 420 (481 ) — — 19 — Transfers to assets held for sale — — — — — (41,402 ) (41,402 ) Sale of subsidiaries — — — — — (12,762 ) (12,762 ) Revaluation — — — — (20,448 ) — (20,448 ) December 31, 2018 $ 5,244,160 $ 791,004 $ 225,841 $ 260,000 $ 135,838 $ 263,433 $ 6,920,276 Accumulated depreciation: December 31, 2017 $ 824,774 $ 270,780 $ 67,560 $ — $ 10,554 $ 140,713 $ 1,314,381 Additions 192,581 95,460 10,742 — 2,310 23,245 324,338 Disposals (28,188 ) (1,264 ) (20,918 ) — (2,075 ) (1,065 ) (53,510 ) Impairment 38,881 — — — — — 38,881 Transfers 143 — (146 ) — — 3 — Transfers to assets held for sale — — — — — (9,573 ) (9,573 ) Sale of subsidiaries — — — — — (7,558 ) (7,558 ) December 31, 2018 $ 1,028,191 $ 364,976 $ 57,238 $ — $ 10,789 $ 145,765 $ 1,606,959 Net: December 31, 2017 $ 3,984,111 $ 284,839 $ 151,507 $ 159,303 $ 147,663 $ 153,593 $ 4,881,016 December 31, 2018 $ 4,215,969 $ 426,028 $ 168,603 $ 260,000 $ 125,049 $ 117,668 $ 5,313,317 Flight Capitalized Rotable Reimbursement Administrative Others Total Gross: December 31, 2016 $ 4,450,572 $ 383,434 203,545 215 097 158,777 274,872 5,686,297 Additions 333,202 171,607 17,271 119,049 2,099 33,828 677,056 Disposals/Transfers 25,111 578 (1,749 ) (174,843 ) (33,676 ) (14,394 ) (198,973 ) Revaluation — — — — 31,017 — 31,017 December 31, 2017 $ 4,808,885 $ 555,619 $ 219,067 $ 159,303 $ 158,217 $ 294,306 $ 6,195,397 Accumulated depreciation: December 31, 2016 $ 653,415 $ 190,596 $ 62,489 $ — $ 9,406 $ 120,462 $ 1,036,368 Additions 177,262 81,616 6,642 — 2,229 25,351 293,100 Disposals (5,903 ) (1,432 ) (1,571 ) — (1,081 ) (5,100 ) (15,087 ) December 31, 2017 $ 824,774 $ 270,780 $ 67,560 $ — $ 10,554 $ 140,713 $ 1,314,381 Net: December 31, 2016 $ 3,797,157 $ 192,838 $ 141,056 $ 215,097 $ 149,371 $ 154,410 $ 4,649,929 December 31, 2017 $ 3,984,111 $ 284,839 $ 151,507 $ 159,303 $ 147,663 $ 153,593 $ 4,881,016 |
Intangible assets and good wi_2
Intangible assets and good will, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Intangible Assets | Intangible assets and good will, net of amortization as of December 31, 2018 and 2017 are follows: December 31, 2018 December 31, 2017 Routes $ 34,299 $ 36,503 Trademarks 3,959 3,938 Software and webpages 84,470 70,927 Other intangible rights 83,042 3,938 Subtotal 205,770 115,306 Goodwill 308,033 311,273 Total Intangible Assets $ 513,803 $ 426,579 |
Rollforward of Intangibles Assets | The following is the detail of intangible assets as of December 31, 2018 and 2017: Goodwill Routes Trade- Software & Others (1) Total Cost: December 31, 2017 $ 314,420 $ 52,481 $ 3,938 $ 147,512 $ 8,721 $ 527,072 Other Acquisitions – Internally developed — — 21 23,888 92,726 116,635 Acquisitions / Adjustment through Business Combinations (3,240 ) — — — — (3,240 ) December 31, 2018 $ 311,180 $ 52,481 $ 3,959 $ 171,400 $ 101,447 $ 640,467 Accumulated Amortization and Impairment Losses: December 31, 2017 $ 3,147 $ 15,978 $ — $ 76,585 $ 4,783 $ 100,493 Amortization for the year — 2,204 — 10,345 13,622 26,171 December 31, 2018 $ 3,147 $ 18,182 $ — $ 86,930 $ 18,405 $ 126,664 Carrying Amounts: December 31, 2017 $ 311,273 $ 36,503 $ 3,938 $ 70,927 $ 3,938 $ 426,579 December 31, 2018 $ 308,033 $ 34,299 $ 3,959 $ 84,470 $ 83,042 $ 513,803 (1) The main acquisitions of other intangibles correspond to digital transformation project for $ 28,567, the SAP project for $17,566, J2C project for $ 13,056, SOC Project for $ 8,848 and CRM project 5,936. The following is the detail of intangible assets as of December 31, 2017 and 2016: Goodwill Routes Trade- Software & Others Total Cost: December 31, 2016 $ 311,181 $ $ 3,938 $ 120,694 $ 4,804 $ 493,098 Other Acquisitions – Internally developed 3,240 — — 26,818 3,916 33,974 December 31, 2017 $ 314,421 $ $ 3,938 $ 147,512 $ 8,720 $ 527,072 Accumulated Amortization and Impairment Losses: December 31, 2016 $ 3,147 $ 13,774 $ — $ 58,890 $ 4,369 $ 80,180 Amortization for the year — 2,204 — 17,695 414 20,313 December 31, 2017 $ 3,147 $ 15,978 $ — $ 76,585 $ 4,783 $ 100,493 Carrying Amounts: December 31, 2016 $ 308,034 $ $ 3,938 $ 61,804 $ 435 $ 412,918 December 31, 2017 $ 311,274 $ $ 3,938 $ 70,927 $ 3,937 $ 426,579 |
Summary of Carrying Amount of Goodwill and Intangibles Allocated to Each of CGUs | The carrying amount of goodwill and intangibles allocated to each of the CGUs: Avianca Ecuador, S.A. Grupo Taca Holdings Tampa Cargo S.A.S. 2018 2017 2018 2017 2018 2017 Goodwill $ 32,979 $ 32,979 $ 234,779 $ 234,779 $ 40,276 $ 40,276 Routes — — — — 23,463 23,463 Trademarks — — — — 3,938 3,938 |
Summary of CGUs Key Assumptions Used in Value in Use Calculation | For each of the CGUs the key assumptions used in the value-in-use Avianca Ecuador, S.A. Grupo Taca Holdings Limited Tampa Cargo S.A.S. 2018 2017 2018 2017 2018 2017 Carrying amount of goodwill $ 32,979 $ 32,979 $ 234,779 $ 234,779 $ 40,276 $ 40,276 Impairment losses — — — — — — Revenue growth p.a. over planning period -0.6% to 8.9% 1.9% to 11.7% 1.3% to 9.6% 4.3% to 17.8% 0.4% to 1.9% 0.8% to 3.7% Operating income over planning period 4.9% to 17.7% 8.5% to 14.9% -3,0% to 2.2% 1.8% to 5.2% 8.4% to 13.9% 8.9% to 12.3% Capital expenditures over planning period 9% to 17% 3% to 13% 9% to 13% 4% to 11% 2% to 10% 0.3% to 7.7% Duration of planning period 5 years 5 years 5 years 5 years 5 years 5 years Revenue growth p.a. after planning period 4.4% 6.9% 4.4% 12.9% 3.9% 5.5% Operating Income after planning period 5.9% 13.2% 3.2% 5.2% 15.3% 11.4% Capital expenditures after planning period 10% 7% 8% 5% 6% 6.6% Business Enterprise Value 274,720 231,008 2,142,073 1,886,880 759,450 772,027 Discount rate 12.32% 13.03% 13.44% 14.48% 9.36% 9.6% |
Assets held for sale (Tables)
Assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Assets Held for Sale | Assets held for sale at December 31, 2018 consist of the following assets: December 31, Flight Simulators $ 31,580 Total Assets Held For Sale $ 31,580 (1) No impairment loss was recognized at the time of the reclassification of the simulators to the item as held for sale at December 31, 2018, since it is expected that the fair value less cost of sales is greater than the amount in books. (2) The company signed a sale agreement on January 30, 2019 with CAE International Holdings Ltd., agreeing to sell (10) ten flight simulators belonging to the Group. The simulators were in use for the provision of training services for pilots and co-pilots (3) The assets classified as held for sale belong to the operating segment of air transportation. |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Loans and Borrowings, Measured at Amortized Cost | Loans and borrowings, measured at amortized cost, as of December 31, 2018 and 2017 are summarized as follows: Notes December 31, 2018 December 31, 2017 Current: Short–term borrowings and current portion of $ 589,366 $ 542,614 Current portion-bonds 37,376 29,458 $ 626,742 $ 572,072 Non–current: Long–term debt $ 2,830,922 $ 2,600,450 Non current portion-bonds 549,916 579,591 $ 3,380,838 $ 3,180,041 |
Schedule of Outstanding Obligations | Terms and conditions of the Group’s outstanding obligations for years ended December 31, 2018 and 2017 are as follows: December 31, 2018 Due Weighted Face Value Carrying Short–term borrowings 2019 5.81 % $ 130,858 $ 119,866 Long–term debt 2029 4.76 % 5,249,987 3,300,422 Bonds–Colombia 2019 9.87 % 81,966 28,147 Bonds– Luxembourg 2020 7.95 % 550,000 559,145 Total $ 6,012,811 $ 4,007,580 December 31, 2017 Due Weighted Face Value Carrying Short–term borrowings 2018 3.96 % $ 85,387 $ 79,263 Long–term debt 2029 4.14 % 4,699,338 3,063,801 Bonds–Colombia 2019 10.58 % 89,266 59,808 Bonds– Luxembourg 2020 8.38 % 550,000 549,241 Total $ 5,423,991 $ 3,752,113 |
Summary of Detail of the Debt Balance | Below we present the detail of the debt balance by type of loan: December 31, December 31, Aircraft $ 2,396,748 $ 2,288,605 Corporate 1,023,540 854,459 Bonds 587,292 609,049 $ 4,007,580 $ 3,752,113 |
Schedule of senior notes outstanding and the corresponding balances | As of December 31, 2018 and 2017, the Senior Notes outstanding and the corresponding balances are as follows: Balance as of Issuing entities Original Total placed in 2018 2017 Avianca Holdings S.A., Avianca Leasing, LLC and Grupo Taca Holdings Limited USD 550,000 $ 559,145 $ 549,241 Issuers: Avianca Holdings S.A., Avianca Leasing, LLC, and Grupo Taca Holdings Limited Guarantors: Avianca Costa Rica, S.A., Avianca Perú S.A., and Taca International Airlines, S.A. fully and unconditionally guarantee the total Notes. Aerovías del Continente Americano – Avianca, S.A. unconditionally guarantee the obligations of Avianca Leasing, LLC under the Senior Notes in an amount equal to $375 million. Notes offered: $550,000 aggregate principal amount of 8.375% Senior Notes due 2020. Initial Issue Price: 98.706% Initial Issue Date: May 10, 2013 Issue Amount: $300 million Interest: The Senior Notes will bear interest at a fixed rate of 8.375% per year. The first issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on November 10, 2013. Interest will accrue from May 10, 2013. The second issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on May 10, 2014. Second Issue Price: 104.50% Second Issue Date: April 8, 2014 Maturity Date: The Senior Notes will mature on May 10, 2020. |
Summary of Bonds Issued and the Corresponding Balances | As of December 31, 2018 and 2017, bonds issued and the corresponding balances are as follows: Issuing entity Issue Total Balance as of December 31, 2018 2017 Original In US Original In US Avianca Series A 75,000 — $ — — $ — Avianca Series B 158,630 — — — — Avianca Series C 266,370 90,566 28,147 178,468 59,808 Total $ 28,147 $ 59,808 (1) Presentation of original currency in millions of Colombian pesos |
Schedule of Future Payments on Long-term Debt | Future payments on long–term debt for the years ended December 31, 2018 and 2017 are as follows: Years One Two Three Four Five and Total December 31, 2018 $ 469,500 $ 457,737 $ 529,125 $ 608,026 $ 1,236,034 $ 3,300,422 December 31, 2017 $ 463,351 $ 381,288 $ 412,839 $ 392,810 $ 1,413,513 $ 3,063,801 |
Schedule of Future Payments on Bonds | Future payments on bonds for the years ended December 31, 2018 and 2017 are as follows: Years One Two Three Four Five and Total December 31, 2018 $ 37,376 $ 549,916 $ — $ — $ — $ 587,292 December 31, 2017 $ 29,458 $ 29,676 $ 549,915 $ — $ — $ 609,049 |
Schedule of Changes in Liabilities Derived from Financing Activities | Changes in liabilities derived from financing activities at December 31, 2018 January 1, New New (1) Financial (2) Payments Interest Foreign December 31, 2018 Current interest-bearing loans and borrowings (excluding items listed below) $ 79,263 $ 68,866 $ — $ 5,556 $ (27,691 ) $ (4,572 ) $ (1,556 ) $ 119,866 Current portion of long-term credits (excluding items listed below) 463,351 — — 141,337 (103,630 ) (56,650 ) 25,092 469,500 Current Bonds 29,458 — — 57,940 — (51,044 ) 1,022 37,376 Non-current 2,600,450 234,774 427,751 23,063 (324,748 ) (96,443 ) (33,925 ) 2,830,922 Bonds 579,591 — — 5,416 (27,404 ) — (7,687 ) 549,916 Total liabilities from financing activities $ 3,752,113 $ 303,640 $ 427,751 $ 233,312 $ (483,473 ) $ (208,709 ) $ (17,054 ) $ 4,007,580 (1) Goods and equipment acquired during the period under finance lease; these movements have no effect on the statement of cash flows. (2) This column contains the value of the pending interest for the year ended to 2018 for $212,294 and the initial balance of interest payable related to the financial obligations of $ 21,018. In the year 2017 the interest caused was $ 183,332 and these were presented as accounts payable. Changes in liabilities derived from financing activities at December 31, 2017 January 1, New New Leases (1) Payments Foreign December 31, 2017 Current interest-bearing loans and borrowings (excluding items listed below) $ 62,179 $ 39,492 $ — $ (22,408 ) $ — $ 79,263 Current portion of long-term credits (excluding items listed below) 314,970 207,562 — (57,197 ) (1,984 ) 463,351 Bonds 29,590 — — — (132 ) 29,458 Non-current 2,259,459 263,306 340,568 (279,580 ) 16,697 2,600,450 Bonds 608,037 — — (28,910 ) 464 579,591 Total liabilities from financing activities $ 3,274,235 $ 510,360 $ 340,568 $ (388,095 ) $ 15,045 $ 3,752,113 (1) Goods and equipment acquired during the period under finance lease; these movements have no effect on the statement of cash flows. |
Accounts payable (Tables)
Accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Accounts Payable | Accounts payable as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Trade accounts payable $ 424,717 $ 122,696 Non-income 226,006 300,435 Payroll taxes (1) 69,062 53,746 Other payables (2) 12,789 18,152 Total current $ 732,574 $ 495,029 Trade accounts payable 4,276 — Social Charges 2,851 5,084 Total non current $ 7,127 $ 5,084 (1) Represent payroll taxes and contributions based on salaries and compensation paid to employees of the Group in the various jurisdictions in which it operates. (2) Other accounts payable include mainly provisions for travel expenses, provisions for fees and accrued interest. |
Accrued expenses (Tables)
Accrued expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Disclosure of Accrued Expenses | Accrued expenses as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Operating expenses (1) $ 105,649 $ 112,844 Vacation and other employee accruals 12,187 36,144 Other accrued expenses (2) 3,058 37,669 Total $ 120,894 $ 186,657 (1) Corresponds mainly costs for landings, credit card commissions, air navigation, ground services and passenger services. (2) Other accrued expenses include transport, freight and haulage, public services and maintenance |
Provisions for return conditi_2
Provisions for return conditions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Provisions for Return Conditions | Provisions for return conditions as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Current $ 2,475 $ 19,093 Non – current 127,685 144,099 Total $ 130,160 $ 163,192 |
Schedule of Changes in Provisions for Return Conditions | Changes in provisions for return conditions as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Balances at beginning of year $ 163,192 $ 173,938 Provisions made 43,705 811 Provisions reverse (1) (70,797 ) — Provisions used (5,940 ) (11,557 ) Balances at end of year $ 130,160 $ 163,192 (1) In 2018 there is a decrease in provisions for return conditions, mainly due to: $ 14,650 for extension of operating contracts and $48,581 for extension in the period of maintenance. |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Employee Benefits | Employee benefits as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Defined benefit plan $ 144,862 $ 174,346 Other benefits Short term 9,084 — Other benefits Long term 802 — Total $ 154,748 $ 174,346 Current $ 44,663 $ 38,706 Non – current 110,085 135,640 Total $ 154,748 $ 174,346 |
Schedule of Fixed Number of Beneficiaries | Both plans have been closed to new participants, and therefore there are a fixed number of beneficiaries covered under these plans as of December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Fair value of plan assets $ (178,594 ) $ (189,697 ) Present value of the obligation 323,456 364,043 Total employee benefit liability $ 144,862 $ 174,346 |
Schedule of Components of Net Benefit Expense | The following table summarizes the components of net benefit expense recognized in the consolidated statement of comprehensive income and the funded status and amounts recognized in the consolidated statement of financial position for the respective plans: Net benefit expense – year ended December 31, 2018 (recognized in Salaries, wages and benefits) Defined benefit plan Other benefits Current service cost $ 1,094 $ 2,353 Interest cost on net benefit obligation 17,375 3,706 Interest income on plan assets (11,699 ) — Net Cost $ 6,770 $ 6,059 Net benefit expense – year ended December 31, 2017 (recognized in Salaries, wages and benefits) Defined benefit Other benefits Current service cost $ 1,207 $ 1,982 Interest cost on net benefit obligation 18,490 3,984 Interest income on plan assets (12,615 ) — Net Cost $ 7,082 $ 5,966 |
Summary of Changes in Present Value of Defined Benefit Obligation | Changes in the present value of defined benefit obligation as of December 31, 2018 are as follows: Defined benefit Other benefits Total Benefit obligation as of December 31, 2017 300,773 63,270 364,043 Period cost 18,469 6,059 24,528 Benefits paid by employer (29,879 ) (3,188 ) (33,067 ) Remeasurements of defined benefit liability 850 (6,172 ) (5,322 ) Other current — (342 ) (342 ) Exchange differences (21,727 ) (4,657 ) (26,384 ) Benefit obligation as of December 31, 2018 268,486 54,970 323,456 Fair value of plan assets (178,594 ) — (178,594 ) Total employee benefit liability 89,892 54,970 144,862 Current 32,205 3,374 35,579 Non–current 57,687 51,596 109,283 Total 89,892 54,970 144,862 Changes in the present value of defined benefit obligation as of December 31, 2017 are as follows: Defined benefit Obligation Other benefits Total Benefit obligation as of December 31, 2016 $ 265,928 $ 54,962 $ 320,890 Period cost 19,697 5,966 25,663 Benefits paid by employer (20,058 ) (2,398 ) (22,456 ) Defined benefit Other benefits Total Remeasurements of defined benefit liability 34,848 4,572 39,420 Other OCI (1,215 ) — (1,215 ) Exchange differences 1,573 168 1,741 Benefit obligation as of December 31, 2017 300,773 63,270 364,043 Fair value of plan assets (189,697 ) — (189,697 ) Total employee benefit liability $ 111,076 $ 63,270 $ 174,346 Current $ 34,141 $ 4,565 $ 38,706 Non–current 76,935 58,705 135,640 Total $ 111,076 $ 63,270 $ 174,346 |
Schedule of Fair Value of Plan Assets | Changes in the fair value of plan assets are as follows: Defined benefit plan Fair value of assets at December 31, 2017 189,697 Interest income on plan assets 11,699 Remeasurement of interest assumptions (14,361 ) Employer contributions 31,871 Benefits paid (26,268 ) Exchange differences (14,044 ) Fair value of plan assets at December 31, 2018 178,594 Changes in the fair value of plan assets are as follows: Defined Fair value of assets at December 31, 2016 $ 165,740 Interest income on plan assets 12,615 Remeasurament of interest assumptions 6,568 Employer contributions 23,522 Benefits paid (17,460 ) Adjustment in plan asset performance (1,896 ) Exchange differences 608 Fair value of assets at December 31, 2017 $ 189,697 |
Schedule of Other Comprehensive Income | December 31, December 31, December 31, Actuarial gains recognized in other comprehensive income $ 5,322 $ (38,205 ) $ 2,383 Return on plan assets adjustment (14,361 ) 4,672 1,711 Adjustments for translation — 148 — Amount recognized in other comprehensive income $ (9,039 ) $ (33,385 ) $ 4,094 |
Schedule of Determining Pension and Post-employment Medical Benefit | The principal assumptions (inflation–adjusted) that are used in determining pension and post–employment medical benefit obligations for the Group’s plans are shown below: December 31, December 31, Discount rate on all plans 7.25 % 6.75 % Price inflation 3.00 % 3.09 % Future salary increase Pilots 4.00 % 4.00 % Cabin crew 4.00 % 4.00 % Other employees 4.00 % 4.00 % Future pension increase 3.18 % 3.18 % Healthcare cost increase 4.50 % 4.50 % Ticket cost increase 3.00 % 3.00 % Education cost increase 3.00 % 3.00 % |
Schedule of Categories of Plan Assets as a Percentage of Fair Value | The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows: December 31, 2018 December 31, 2017 Equity securities 31.00 % 22.04 % Debt securities 21.00 % 33.73 % Domestic Corporate bonds 32.00 % 35.30 % Foreign government/corporate bonds 10.00 % 6.61 % Other 6.00 % 2.30 % |
Summary of Expected Payments or Contributions to Defined Benefit Plan | The following are the expected payments or contributions to the defined Benefit plan in future years: December 31, December 31, Year 1 $ 26,773 $ 39,074 Year 2 24,798 23,733 Year 3 24,309 24,285 Year 4 24,781 23,705 Year 5 25,626 24,699 Next 5 years 132,969 127,940 $ 259,256 $ 263,436 |
Schedule of Change in the Respective Assumptions | The following table summarizes how the impact on the defined benefit obligation at the end of the reporting period would have increased (decreased) as a result of a change in the respective assumptions: 0.5% increase 0.5% decrease Discount rate (15,675 ) 17,226 Pension increase 14,100 (12,978 ) Mortality table (7,096 ) 17,533 |
Schedule of Award | A summary of the terms of the awards excluding the 1,840,000 New Awards is as follows: Vesting dates Percentage vesting Redemption period March 15, 2013 25 % From March 16, 2013 through March 15, 2018 March 15, 2014 25 % From March 16, 2014 through March 15, 2019 March 15, 2015 25 % From March 16, 2015 through March 15, 2020 March 15, 2016 25 % From March 16, 2016 through March 15, 2021 A summary of the terms of the 1,840,000 New Awards is as follows: Vesting dates Percentage Redemption period November 6, 2014 25 % From November 7, 2014 through November 6, 2019 November 6, 2015 25 % From November 7, 2015 through November 6, 2020 November 6, 2016 25 % From November 7, 2016 through November 6, 2021 November 6, 2017 25 % From November 7, 2017 through November 6, 2022 |
Air traffic liability and fre_2
Air traffic liability and frequent flyer deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Air Traffic Liability | The balance as of December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Advance ticket sales $ 424,579 $ 454,018 Miles deferred revenue 186,378 85,207 Current $ 610,957 $ 539,225 Miles deferred revenue $ 234,260 $ 104,786 Non current $ 234,260 $ 104,786 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of other liabilities | Other liabilities as of December 31, 2018 and 2017 are as follows: Notes December 31, 2018 December 31, 2017 Derivative instruments 27,28 $ (129) $ 137 Deferred income (1) 71,649 24,471 Other 587 — Total $ 72,107 $ 24,608 Current $ 3,861 $ 9,415 Non–current 68,246 15,193 Total $ 72,107 $ 24,608 (1) As disclosed in note 13, the Group reclassified to other liabilities, the balances related to deferred profits with sale and leaseback transactions for $53,990, which are deferred for a period of ten years. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Authorized, Issued and Paid Shares | The following is a summary of authorized, issued and paid shares: December 31, 2018 December 31, 2017 Authorized shares 4,000,000,000 4,000,000,000 Issued and paid common stock 660,800,003 660,800,003 Issued and paid preferred stock 336,187,285 336,187,285 |
Schedule of Movement of the Other Comprehensive Income | The movement of the other comprehensive income as of December 31, 2018 and 2017 is as follows: Attributable to owners of the Company Income tax reserves relating to (4) Hedging Fair value Reserves relating losses (3) Fair value Reserves gains and losses Revaluation of Total NCI Total OCI As of December 31, 2017 $ 6,507 $ (681 ) $ (65,138 ) $ 3 $ 125 $ 58,382 $ (802 ) $ 455 $ (347) Other comprehensive Income (loss) for the Period (13,701 ) (67 ) (9,039 ) — (39 ) (20,448 ) (43,294 ) (261 ) $ (43,555 ) As of December 31, 2018 $ (7,194 ) $ (748 ) $ (74,177 ) $ 3 $ 86 $ 37,934 $ (44,096 ) $ 194 $ (43,902 ) Attributable to owners of the Company Income tax reserves relating to (4) Hedging Fair value Reserves relating gains and losses (3) Fair value Fair value Reserves Revaluation of Total NCI Total OCI As of December 31, 2016 $ 122 $ (414 ) $ (31,753 ) $ (3,558 ) $ 3 $ 15,143 $ 27,365 $ 6,908 $ 169 $ 7,077 Other comprehensive Income (loss) for the Period 6,385 (267 ) (33,385 ) 3,558 — (15,018 ) 31,017 (7,710 ) 286 (7,424 ) As of December 31, 2017 $ 6,507 $ (681 ) $ (65,138 ) $ — $ 3 $ 125 $ 58,382 $ (802 ) $ 455 $ (347) (1) Hedging Reserves The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition of the hedged cash flows (See Note 27). (2) Fair value reserves The fair value reserve comprises the cumulative net change in the fair value of available–for–sale financial assets until the assets are derecognized or impaired. (3) Reserve relating to actuarial gains and losses It comprises actuarial gains or losses on defined benefit plans and post–retirement medical benefits recognized in other comprehensive income. (4) Income tax on other comprehensive income Whenever an item of other comprehensive income gives rise to a temporary difference, a deferred income tax asset or liability is recognized directly in other comprehensive income (5) Revaluation of administrative property |
Schedule of Reclassification, Without Considering Items Remaining in OCI | The following provides an analysis of items presented net in the statement of consolidated statement of comprehensive income which have been subject to reclassification, without considering items remaining in OCI which are never reclassified to profit of loss: 2018 2017 Cash flow hedges: Reclassification during the year to profit or loss $ (17,179 ) $ 10,309 Effective valuation of cash flow hedged 3,478 (3,924 ) $ (13,701 ) $ 6,385 Fair value reserves: Valuations of investments in fair value with changes in OCI $ (67 ) $ (267 ) $ (67 ) $ (267 ) |
Non-Controlling interests (Tabl
Non-Controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Non-controlling Interest | The following is summaries the information relating to each of the Group’ subsidiaries that has material NCI as of December 31, 2018 and 2017: LifeMiles Taca Aerotaxis la TurboProp Avianca Other Total NCI percentage 30.00 % 3.17 % 31.92 % 32.00 % 7.58 % Current assets $ 50,344 $ 28,269 $ 2,597 $ 4,155 $ 25,818 $ 5,719 $ 116,902 Non-current 24,337 8,932 687 7,615 5,444 2,529 49,544 Current liabilities (98,034 ) (18,861 ) (1,268 ) (2,658 ) (27,515 ) (3,481 ) (151,817 ) Non-current (160,816 ) (26,210 ) — (3,995 ) (827 ) (774 ) (192,622 ) Net assets (184,169 ) (7,870 ) 2,016 5,117 2,920 3,993 (177,993 ) (Loss) profit 24,321 (3,684 ) (499 ) 1,283 841 3,683 25,946 Other comprehensive income $ (94) $ (158) $ — $ — $ — $ (9) $ (261) LifeMiles Taca Aerotaxis la TurboProp Avianca Other Total NCI percentage 30.00 % 3.17 % 31.92 % 32.00 % 7.58 % Current assets $ 47,603 $ 24,269 $ 2,971 $ 7,095 $ 30,581 $ 7,381 $ 119,900 Non-current 27,039 10,720 777 7,908 6,092 4,268 56,804 Current liabilities (67,815 ) (14,915 ) (1,232 ) (7,317 ) (29,007 ) (2,880 ) (123,166 ) Non-current (95,939 ) (24,054 ) — (3,257 ) (5,470 ) (768 ) (129,488 ) Net assets (89,112 ) (3,980 ) 2,516 4,429 2,196 8,001 (75,950 ) (Loss) profit 30,738 (3,980 ) 2,364 674 2,106 1,893 33,795 Other comprehensive income $ 78 $ 358 $ — $ — $ — $ 19 $ 455 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Calculation of Basic (Loss) Earnings Per Share | The calculation of basic (loss) earnings per share at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Net profit (loss) attributable to Avianca Holdings S.A. $ (24,803 ) $ 48,237 Weighted average number of shares (in thousands of shares) Common stock 660,800 660,800 Preferred stock 336,187 336,187 Earnings per share Common stock $ (0.025) $ 0.05 Preferred stock $ (0.025) $ 0.05 |
Operating revenue (Tables)
Operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Information by Type of Service Rendered | By type of service rendered Year ended Percentage Year ended Percentage Year on Domestic Passenger 2,001,825 41 % $ 1,900,627 42 % 101,198 Cargo and mail 303,343 6 % 279,666 6 % 23,677 2,305,168 47 % 2,180,293 48 % 124,875 International Passenger 2,072,566 42 % 1,649,533 37 % 423,033 Cargo and mail 315,433 6 % 271,313 6 % 44,120 2,387,999 49 % 1,920,846 43 % 467,153 Other (1) 197,663 4 % 340,545 9 % (142,882 ) Total operating revenues 4,890,830 100 % $ 4,441,684 100 % 449,146 Year ended Percentage Year ended Percentage Year on Domestic Passenger $ 1,900,627 42 % $ 1,752,001 42 % $ 148,626 Cargo and mail 279,666 6 % 264,432 6 % 15,234 2,180,293 48 % 2,016,433 48 % 163,860 International Passenger 1,649,533 37 % 1,533,216 37 % 116,317 Cargo and mail 271,313 6 % 291,442 7 % (20,129 ) 1,920,846 43 % 1,824,658 44 % 96,188 Other (1) 340,545 9 % 297,247 8 % 43,298 Total operating revenues $ 4,441,684 100 % $ 4,138,338 100 % $ 303,346 |
Summary of Other Operating Revenues | Other operating revenue for the years ended December 31, 2018, 2017 and 2016 is as follows: December 31, 2018 December 31, 2017 December 31, 2016 Frequent flyer program $ 46,376 $ 178,841 $ 154,245 Ground operations (a) 23,592 20,172 21,053 Leases 22,610 22,232 28,295 Maintenance 58,032 11,639 7,696 Interline 2,025 1,900 3,859 Other (b) 45,028 105,769 82,099 $ 197,663 $ 340,553 $ 297,247 (a) Group provides services to other airlines at main hub airports. (b) Corresponds mainly to income from penalties, access to VIP rooms and additional services. |
Summary Of Significant Changes In Contract Assets And Contract Liabilities | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. Notes December 31, December 31, Net account receivable trade 8 $ 245,756 $ 177,321 Prepaid compensations clients 11 37,130 29,754 Air traffic liability 21 (424,579 ) (454,018 ) Frequent flyer deferred revenue 21 (420,638 ) (189,993 ) |
Derivatives recognized as hed_2
Derivatives recognized as hedging instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Financial Instruments Recognized as Hedging Instruments at Fair Value Though Other Comprehensive Income | Financial instruments recognized as hedging instruments at fair value though other comprehensive income as of December 31, 2018 and 2017 are the following: Notes December 31, December 31, Cash flow hedges – Assets Fuel price hedges $ 2,566 $ 20,549 Interest rate 4,890 2,990 Total 12,22 $ 7,456 $ 23,539 |
Summary of Periods in which Cash Flows Associated with Cash Flow Hedges are Expected to Occur and Fair Values of Related Hedging Instruments | The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur, and the fair values of the related hedging instruments to December 31, 2018 and 2017: December 31, 2018 Fair Value 1–12 months 12–24 months Fuel price $ 2,566 $ 2,566 Assets Interest rate $ 4,890 $ 112 $ 4,778 Assets December 31, 2017 Fair Value 1–12 months 12–24 months Fuel price Assets $ 20,549 $ 20,549 $ — Interest rate Assets $ 2,990 $ — $ 2.990 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Derivative Financial Instruments at Fair Value through Profit or Loss | Derivative financial instruments at fair value through profit or loss as of December 31, 2018 and 2017 are the following: Notes December 31, 2018 December 31, 2017 Derivatives not designated as hedges – Liabilities Derivative contracts of interest rate 22 $ (17 ) $ 137 Total $ (17 ) $ 137 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Quantitative Disclosures of Fair Value Measurement Hierarchy for Assets | Quantitative disclosures of fair value measurement hierarchy for assets: Fair value measurement using Assets measured at fair value Quoted prices (Level 1) Significant (Level 2) Significant (Level 3) Total Derivative financial assets (Note 27 y 28) Aircraft fuel hedges — 2,566 — 2,566 Interest rate derivatives — 4,890 — 4,890 Investments — 67,306 — 67,306 Assets plan — 178,594 — 178,594 Revalued administrative property (Note 13) — — 110,182 110,182 Quantitative disclosures of fair value measurement hierarchy for assets: Fair value measurement using Assets measured at fair value Quoted prices in active (Level 1) Significant (Level 2) Significant (Level 3) Total Derivative financial assets (Note 27) Aircraft fuel hedges Interest rate derivatives — 20,549 — 20,549 Available–for–sale securities — 2,990 — 2,990 Assets held for sale — 55 — 55 Assets plan — 189,697 — 189,697 Revalued administrative property (Note 13) — — 147,663 147,663 |
Quantitative Disclosures of Fair Value Measurement Hierarchy for Liabilities | Quantitative disclosures of fair value measurement hierarchy for liabilities: Fair value measurement using Liabilities measured at fair value Quoted prices (Level 1) Significant (Level 2) Significant (Level 3) Total Foreign currency derivatives — (17 ) — (17 ) Liabilities for which fair values are disclosed Short–term borrowings and long–term debt — 4,022,707 — 4,022,707 Quantitative disclosures of fair value measurement hierarchy for liabilities: Fair value measurement using Liabilities measured at fair value Quoted prices (Level 1) Significant (Level 2) Significant (Level 3) Total Derivative financial liabilities (Note 27) Interest rate derivatives — 137 — 137 Frequent flyer liability (Note 21) — 191,157 — 191,157 Liabilities for which fair values are disclosed Short–term borrowings and long–term debt (Note 16) — 3,587,841 — 3,587,841 |
Summary of Valuation Technique Used in Measuring the Fair Value | Valuation technique and significant unobservable inputs The following table shows the valuation technique used in measuring the fair value of administrative property, as well as the significant unobservable inputs used. Valuation technique Signicant unobservable inputs Market comparison approach: A method of appraising property by analyzing the prices of similar properties sold in the recent past and then making adjustments based on differences among the properties and the relative age of the other Expected Market rental growth: (2018: 1%-2%, 2017: 3%-4%) Occupancy Rate (2018: 87% weighted average, 2017: 82% weighted average) GDP from construction (2018: 1% weighted average, 2017: (5%). Appreciation or depreciation of the Colombian Peso against the US Dollar: 2018 (8.91%), 2017: 0.56%. |
Summary of Breakdown of Total Gains (Losses) Recognised in Respect of Level 3 Fair Values | The following table shows a breakdown of the total gains (losses) recognised in respect of Level 3 fair values (administrative property): December 31, 2018 December 31, 2017 Gain included in OCI Change in fair value (unrealized) $ (20,448 ) $ 31,017 Change in fair value (realized) — — Total gain included in OCI $ (20,448 ) $ 31,017 |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of assets and liabilities for taxes | Assets and liabilities for taxes as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Current income tax – assets $ 152,601 $ 78,434 Current VAT-assets 72,857 33,318 Other taxex-current 6,456 2,609 Total current tax – assets $ 231,914 $ 114,361 Non Current income tax – assets 19 136,301 Total tax – assets $ 231,933 $ 250,662 Current income tax – liabilities $ (26,702 ) $ (31,935 ) |
Schedule of components of income tax expense | The major components of income tax expense for the years ended December 31, 2018, 2017 and 2016 are: Consolidated statement of comprehensive income December 31, December 31, December 31, Current income tax: Current income tax charge $ 24,208 $ 32,934 $ 28,114 Adjustment in respect of current income tax of previous year 2,943 2,225 (666 ) Deferred tax expense: Relating to origination and reversal of temporary differences (6,938 ) (15,050 ) 6,642 Income tax expense reported in the income statement $ 20,213 $ 20,109 $ 34,090 |
Schedule of components of income tax expense | Consolidated statement of other comprehensive income December 31, December 31, December 31, Hedging reserves $ — $ 3,558 $ (3,558 ) Reserves relating to actuarial gains and losses (39 ) (15,018 ) 4,289 Income tax charged directly to other comprehensive income $ (39 ) $ (11,460 ) $ 731 |
Schedule of reconciliation between tax expense and the product | A reconciliation between tax expense and the product of accounting profit multiplied by domestic tax rate for the years ended December 31, 2018, 2017 and 2016 is as follows: December 31, 2018 December 31, 2017 December 31, 2016 Accounting profit after income tax $ 1,143 $ 82,032 $ 44,186 Total, income tax expense 20,213 20,109 34,090 Profit before income tax $ 21,356 $ 102,141 $ 78,276 Income tax at Colombian statutory rate 37.00 % 7,902 40.00 % 40,856 40.00 % 31,311 Tax credit (1) 0.0 % — 0.00 % — (5.74 %) (4,493 ) Productive fixed assets special deduction (267.99 %) (57,229 ) (44.91 %) (45,868 ) (22.10 %) (17,299 ) Permanent differences (2) (96.90 %) (20,694 ) 138.54 % 141,508 (346.48 %) (271,209 ) Non–deductible taxes 15.98 % 3,413 3.06 % 3,124 15.01 % 11,749 Effect of tax exemptions and tax rates in foreign jurisdictions 253.27 % 54,086 (118.26 %) (120,797 ) 71.56 % 56,014 Non recognized deferred tax assets 402.02 % 85,852 (141.93 %) (144,965 ) 248.77 % 194,732 Losses of tax reversion 0.0 % — 184.69 % 188,640 0.00 % — Exchange rate differences (304,23 )% (64,969 ) (48.56 %) (49,595 ) 107.20 % 83,916 Prior year expenses (5.83 %) (1,245 ) 0.00 % — 0.00 % — Changes in tax rates 61.33 % 13,097 (2.24 %) (2,292 ) (51.58 %) (40,377 ) Other 0.0 % — 9.30 % 9,498 (13.10 %) (10,254 ) 94.65 % $ 20,213 19.69 % $ 20,109 43.55 % $ 34,090 (1) Airline companies in Colombia are entitled to a tax credit or discount for income tax purposes based on the proportion between the international flight’s income and total income of the Company during the year. The legislative purpose of this tax provision is to limit the Company’s exposure to double taxation on their worldwide income in Colombia, therefore limiting the tax expense to local Colombian source income. The tax reform contained in the Law 1819 of 2016 eliminates the tax credit for air or marine international transportation above noted, therefore in Tampa Cargo S.A.S. such tax credit will only be applicable until tax year 2016, however due to Avianca’s Stabilization Agreement the credit will be available to offset until tax year 2028. (2) This item includes various permanent differences for Corporate Income Tax purposes in Colombia. These permanent differences include nontaxable gains and losses on the sale of property, plant and equipment, nontaxable revenues and other items. |
Schedule of Unused Tax Losses for Which No Deferred Tax Asset Recognised | Tax losses originated in the year: 2014 $ 1.061 2015 4.282 2016 19.458 2017 105.449 2018 260.342 Total: $ 390.592 |
Schedule of Excess of presumptive Income for Which No Deferred Tax Asset Recognised | Excess of presumptive income originated in the year: Year 2017 $ 8.495 Year 2018 1.271 Total: $ 9.766 |
Summary of Analysis of the Company's Deferred Tax Assets and Liabilities | Consolidated Statement of Financial Position December 31, December 31, Variation Assets (liabilities) Accounts payable $ 88,920 $ — $ 88,920 Deposits and other assets (11,481 ) (24,379 ) 12,898 Aircraft maintenance (3,573 ) (43,973 ) 40,400 Pension liabilities 3,089 (525 ) 3,614 Provisions 19,037 103,830 (84,793 ) Loss carry forwards 603 8,670 (8,067 ) Non-monetary (49,343 ) (29,231 ) (20,112 ) Intangible assets (8,220 ) (11,534 ) 3,314 Other (32,896 ) (2,703 ) (30,193 ) Net deferred tax assets / (liabilities) $ 6,136 $ 155 $ 5,981 |
Summary of Analysis of Deferred Tax Assets and Liabilities | The analysis of deferred tax assets and liabilities as of December 31, 2018 and December 31, 2017 is as follows: Reflected in the statement of financial position as follows: Deferred tax assets $ 24,573 $ 25,969 (1,396 ) Deferred tax liabilities (18,437 ) (25,814 ) 7,377 Deferred tax assets (liabilities) net $ 6,136 $ 155 $ 5,981 |
Summary of Analysis of the Company's Deferred Tax Assets | Reconciliation of deferred tax assets net December 31, December 31, Opening balance as of January 1, $ 155 $ (14,507 ) Tax income during the period recognized in profit or loss 6,938 15,050 Tax income during the period recognized in other comprehensive income (40 ) (155 ) Deferred taxes acquired in business combinations Exchange differences (917 ) (233 ) Closing balance as of December 31 $ 6,136 $ 155 |
Provisions for legal claims (Ta
Provisions for legal claims (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of provisions for litigation | The changes in provisions for litigation as of December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Balances at the beginning of the period $ 11,720 $ 18,516 Provisions constituted 2,034 14,491 Provisions reverse (5,007 ) — Provisions used (938 ) (21,287 ) Balances at the end of the period $ 7,809 $ 11,720 |
Future aircraft leases paymen_2
Future aircraft leases payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Aircraft Under Operating Leases | The following is the summary of future financial lease commitments: Aircraft Less than one year 316,334 Between one and five years 1,117,208 More than five years 963,206 $ 2,396,748 |
Schedule of Seven Spare Engines Under Operating Leases | The Group has 54 aircraft that are under operating leases with an average lease term of 50 months. Operating leases can be renewed, in accordance with the Administration’s business plan. The following is the summary of the future commitments of operating leases: Aircraft Less than one year 245,579 Between one and five years 668,403 More than five years 186,711 $ 1,100,693 The Group has 6 engines under an operating lease contract for its aircraft fleet of the E190 and A320 families. The following is the summary of the future commitments of operating leases: Engines Less than one year 10,131 Between one and five years 28,513 More than five years 9,378 $ 48,022 |
Schedule of Future Minimum Income from Lease Agreements | As of December 31, 2018 the Group had two Airbus A319, one Airbus A330F and one Airbus A330, under operating lease to OceanAir Linhas Aéreas, S.A. and two E-190 Aircraft Less than one year 26,442 Between one and five years 52,543 More than five years 20,720 $ 99,705 On February 2019, the Group signed a termination of the operative leases of one Airbus A330F and one Airbus A330 with OceanAir Linhas Aéreas, S.A. which modifies the future minimum income from these lease agreements as follows: Aircraft Less than one year 15,142 Between one and five years 6,493 More than five years — $ 21,635 |
Expenses of Amount Recognized Payments | The amount of recognized payments has expenses during the year is as follows: December 2018 December 2017 December 2016 Leases minimum payments $ 267,708 $ 278,772 $ 314,493 |
Acquisition of aircraft (Tables
Acquisition of aircraft (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of future commitments related to aircraft acquisition | In accordance with the agreements in effect, future commitments related to the acquisition of aircraft and engines are as follows: Order Options Delivery Airbus (Family A320) (1) 124 — 2019-2025 Boeing 787- 3 9 2019 Engines (3) 3 — 2019-2020 (1) On December 2017, the Group signed two Assignment, Assumption and Release Agreement, one assigning 5 A-320 A-320 (2) On September 2017, the Company signed an amendment to convert three 787-8 787-9 787-8 (3) The Group has 3 firm orders with CFM for the acquisition of LEAP-1A |
Schedule of advanced payments and airctraft acquisition | Year one Year two Year three Year four Thereafter Total Advance payments $ 223,071 $ 237,970 $ 205,594 $ 210,735 $ 380,559 $ 1,257,929 Aircraft acquisition commitments $ 981,054 $ 2,123,295 $ 2,407,313 $ 2,162,148 $ 6,831,519 $ 14,505,329 Year one Year two Year three Year four Thereafter Total Advance payments $ 31,048 $ 51,502 $ 93,211 $ 222,771 $ 784,572 $ 1,183,104 Aircraft acquisition commitments $ 14,874 $ 288,716 $ 534,304 $ 135,783 $ 7,076,164 $ 8,049,841 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Payment of Dividends | The Group paid dividends during the year ended December 31, 2018 and 2017, based on the retained earnings as of December 31, 2017 and 2016, respectively: December 31, December 31, Dividend - Ordinary shared $ 23,433 $ 16,942 Dividend - Preferred shared 12,075 8,730 Total $ 35,508 $ 25,672 |
Summary of Dividends Paid to Minority Shareholding | During the year ended December 31, 2018, the subsidiaries with minority interest, declared dividends as follows: December 31, 2018 December 31, 2017 Subsidiaries Minority AVH Total Minority AVH Total LifeMiles Ltd (1) $ 61,500 $ 143,500 $ 205,000 $ 127,001 $ 296,335 $ 423,336 Turbo Prop Leasing Corp 596 1,265 1,861 — — — Aerotaxis La Costeña S.A — — — 3,000 6,377 9,377 Total $ 62,096 $ 144,765 $ 206,861 $ 130,001 $ 302,712 $ 432,713 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Family Delivery Schedule | The revised Airbus A320 family delivery schedule is as follows: 2019 2020 2021 2022 2023-2028 Total Original Order 5 20 23 20 60 128 Deferred Aircraft (2 ) (14 ) (19 ) (16 ) 51 — Canceled Aircraft — — — — (17 ) (17 ) Adjusted Order 3 6 4 4 94 111 |
Reporting Entity - Schedule of
Reporting Entity - Schedule of Significant Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Avianca Ecuador [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Ecuador | |
Percentage of ownership interest | 99.62% | 99.62% |
Aerovias del Continente Americano S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Colombia | |
Percentage of ownership interest | 99.98% | 99.98% |
Avianca, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | EE.UU. | |
Percentage of ownership interest | 100.00% | 100.00% |
Avianca Leasing, LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | EE.UU. | |
Percentage of ownership interest | 100.00% | 100.00% |
Grupo Taca Holdings Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Bahamas | |
Percentage of ownership interest | 100.00% | 100.00% |
Latin Airways Corp. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Panama | |
Percentage of ownership interest | 100.00% | 100.00% |
Life Miles Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Bermuda | |
Percentage of ownership interest | 70.00% | 70.00% |
Avianca Costa Rica S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Costa Rica | |
Percentage of ownership interest | 92.40% | 92.40% |
Taca International Airlines, S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | El Salvador | |
Percentage of ownership interest | 96.83% | 96.84% |
Tampa Cargo Logistics, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | EE.UU. | |
Percentage of ownership interest | 99.98% | 99.98% |
Tampa Cargo S.A.S. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Colombia | |
Percentage of ownership interest | 99.98% | 99.98% |
Technical and Training Services, S.A. de C.V. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | El Salvador | |
Percentage of ownership interest | 99.00% | 99.00% |
Avianca Peru S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Perú | |
Percentage of ownership interest | 100.00% | 100.00% |
Vu-Marsat S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Costa Rica | |
Percentage of ownership interest | 100.00% | 100.00% |
Reporting Entity - Additional I
Reporting Entity - Additional Information (Detail) | Dec. 28, 2018 |
Seger Investments Corp [member] | Getcom Int'l Investments S.L. [member] | |
Disclosure of reporting entity [line items] | |
Percentage of ownership interest | 50.00% |
Reporting Entity - Summary of t
Reporting Entity - Summary of the Movements in the Financial Statements Due to the Sale and Corresponding Loss (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of subsidiaries [abstract] | |
Amount of cash in Getcom Int'l Investments S.L. | $ 1,764 |
Carrying amount of the Getcom Int'l Investments S.L. assets, without cash | 20,561 |
Carrying amount of the Getcom Int'l Investments S.L. liabilities | (6,980) |
Net Assets of the subsidiary | 15,345 |
Non-controlling interest | (7,674) |
AVH participation | 7,671 |
Portion of the consideration consisting of cash | 18,000 |
Portion of the consideration consisting of accounts receivables | 250 |
Fair Value of the received consideration | 18,250 |
Gains on the sale of the subsidiary | $ 10,579 |
Reporting Entity - Schedule o_2
Reporting Entity - Schedule of Total Fleet Consisting (Detail) - Aircraft | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 196 | 191 |
Airbus A-318 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | 10 |
Airbus A-319 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 27 | 28 |
Airbus A-320 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 61 | 62 |
Airbus A-320 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 7 | 2 |
Airbus A-321 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 13 | 13 |
Airbus A-321 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | |
Airbus A-330 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | 10 |
Airbus A330F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 6 | 6 |
Airbus A300F-B4F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 5 | 5 |
Boeing 787-8 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 13 | 12 |
ATR 42 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
ATR 72 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 15 | 15 |
Boeing 767F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
Boeing 767 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 1 | |
Cessna Grand Caravan [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 13 | 13 |
Embraer E-190 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | 10 |
Property plant and equipment subject to owned financial lease [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 142 | 136 |
Property plant and equipment subject to owned financial lease [member] | Airbus A-318 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | 10 |
Property plant and equipment subject to owned financial lease [member] | Airbus A-319 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 23 | 23 |
Property plant and equipment subject to owned financial lease [member] | Airbus A-320 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 35 | 37 |
Property plant and equipment subject to owned financial lease [member] | Airbus A-320 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 3 | |
Property plant and equipment subject to owned financial lease [member] | Airbus A-321 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 7 | 5 |
Property plant and equipment subject to owned financial lease [member] | Airbus A-330 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 3 | 1 |
Property plant and equipment subject to owned financial lease [member] | Airbus A330F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 6 | 6 |
Property plant and equipment subject to owned financial lease [member] | Airbus A300F-B4F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 5 | 5 |
Property plant and equipment subject to owned financial lease [member] | Boeing 787-8 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 8 | 7 |
Property plant and equipment subject to owned financial lease [member] | ATR 42 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
Property plant and equipment subject to owned financial lease [member] | ATR 72 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 15 | 15 |
Property plant and equipment subject to owned financial lease [member] | Boeing 767F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
Property plant and equipment subject to owned financial lease [member] | Cessna Grand Caravan [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 13 | 13 |
Property plant and equipment subject to owned financial lease [member] | Embraer E-190 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | 10 |
Property, Plant and Equipment Subject to Operating Leases [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 54 | 55 |
Property, Plant and Equipment Subject to Operating Leases [Member] | Airbus A-319 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 4 | 5 |
Property, Plant and Equipment Subject to Operating Leases [Member] | Airbus A-320 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 26 | 25 |
Property, Plant and Equipment Subject to Operating Leases [Member] | Airbus A-320 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 4 | 2 |
Property, Plant and Equipment Subject to Operating Leases [Member] | Airbus A-321 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 6 | 8 |
Property, Plant and Equipment Subject to Operating Leases [Member] | Airbus A-321 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | |
Property, Plant and Equipment Subject to Operating Leases [Member] | Airbus A-330 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 7 | 9 |
Property, Plant and Equipment Subject to Operating Leases [Member] | Boeing 787-8 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 5 | 5 |
Property, Plant and Equipment Subject to Operating Leases [Member] | Boeing 767 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 1 |
Basis of Presentation of the Co
Basis of Presentation of the Consolidated Financial Statements - Additional Information (Detail) $ in Thousands | Apr. 10, 2019USD ($) | Dec. 31, 2018USD ($)Aircraft | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Disclosure Of Basis Of Preparation [line items] | ||||
Current - Air traffic liability | $ 424,579 | $ 454,018 | ||
Frequent flyer deferred revenue-current | 85,207 | |||
Frequent flyer deferred revenue-non current | 104,786 | |||
Air traffic liability | 644,011 | |||
Air traffic liability | (36,569) | 2,608 | $ 83,982 | |
Frequent flyer deferred revenue | 37,719 | 21,883 | 5,205 | |
Current taxes - assets | 231,914 | 114,361 | ||
Non Current taxes - assets | 19 | 136,301 | ||
Current taxes - liabilities | 26,702 | 31,935 | ||
Accounts receivables | (103,998) | (42,244) | (18,177) | |
Accounts payable and accrued expenses | (259,485) | (61,246) | (23,397) | |
Net current tax | $ 13,497 | (49,930) | (41,635) | |
Financial Covenants [member] | ||||
Disclosure Of Basis Of Preparation [line items] | ||||
Redemption price per share due to change in control of 8.375% Senior Notes due 2020 | 101.00% | |||
Percentage of ownership entitled to covenants upon debt default | 78.10% | |||
Aggregate principal amount of indebtedness that contains change of control events of default, change of control repurchase provisions or cross-default provisions | $ 1,566,100 | |||
Financial Covenants [member] | Secured Debt1 [member] | ||||
Disclosure Of Basis Of Preparation [line items] | ||||
Aggregate principal amount of indebtedness that contains change of control events of default, change of control repurchase provisions or cross-default provisions | $ 1,006,900 | |||
Previously Stated [member] | ||||
Disclosure Of Basis Of Preparation [line items] | ||||
Air traffic liability | 24,491 | 89,187 | ||
Accounts receivables | (108,793) | (65,516) | ||
Accounts payable and accrued expenses | $ 77,865 | $ 29,101 | ||
Aircraft Under Operating Lease [member] | ||||
Disclosure Of Basis Of Preparation [line items] | ||||
Number of aircraft | Aircraft | 54 | |||
Aircraft under finance lease [member] | ||||
Disclosure Of Basis Of Preparation [line items] | ||||
Number of aircraft | Aircraft | 100 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Number | |
Disclosure of significant accounting policies [line items] | |
Number of SPE included in Consolidated Financial Statements | 52 |
Number of addition consolidated entities included in Consolidated Financial Statements | 58 |
Description of performance obligation and revenue recognition of segments | For trips that have more than one flight segment, the Group considers each segment as a separate performance obligation and recognizes the revenues of each segment as the trip takes place. |
Period in which derivative held as an economic hedge | 12 months |
Cash and cash equivalents maturity | 3 months |
Bottom of Range [member] | Routes and trademarks [member] | |
Disclosure of significant accounting policies [line items] | |
Intangible assets are amortized over their useful lives | 2 years |
Top of Range [member] | Routes and trademarks [member] | |
Disclosure of significant accounting policies [line items] | |
Intangible assets are amortized over their useful lives | 13 years |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Aircraft components and engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | Useful life of fleet associated with component or engines |
Rotable parts [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | Useful life of fleet associated |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | Lesser of remaining lease term and estimated useful life of the leasehold improvement |
Bottom of Range [member] | Aircraft [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 10 years |
Bottom of Range [member] | Aircraft major overhaul repairs [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 4 years |
Bottom of Range [member] | Land [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 20 years |
Bottom of Range [member] | Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 2 years |
Bottom of Range [member] | Machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 2 years |
Top of Range [member] | Aircraft [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 30 years |
Top of Range [member] | Aircraft major overhaul repairs [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 12 years |
Top of Range [member] | Land [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 50 years |
Top of Range [member] | Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 10 years |
Top of Range [member] | Machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 15 years |
New and Amended Standards and_3
New and Amended Standards and Interpretations - Additional Information (Detail) | Jan. 01, 2018USD ($) | Dec. 31, 2018USD ($)Aircraft | Dec. 31, 2017USD ($)Aircraft |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Change in equity arising from application of IFRS 9 and IFRS 15 | $ 199,549,000 | ||
Non controlling interests | (177,993,000) | $ (75,950,000) | |
Decrease in deferred tax asset | $ (1,396,000) | ||
Number of aircraft | Aircraft | 196 | 191 | |
Property, Plant and Equipment Subject to Operating Leases [Member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Number of aircraft | Aircraft | 54 | 55 | |
IFRS Fifteen [Member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Date of entity plan application permitted | Jan. 1, 2018 | ||
Increase to frequent flyer deferred revenue | $ 192,925,000 | ||
IFRS 16 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Date of entity plan application permitted | Jan. 1, 2019 | ||
IFRS 16 [member] | Bottom of Range [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Increase in pre-tax in assets and financial obligations | $ 900,000,000 | ||
Incremental rate | 4.50% | ||
IFRS 16 [member] | Top of Range [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Increase in pre-tax in assets and financial obligations | $ 1,100,000,000 | ||
Incremental rate | 6.00% | ||
Increase (Decrease) Due to Application of IFRS 15 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Change in equity arising from application of IFRS 9 and IFRS 15 | $ 199,765,000 | ||
Increase in air traffic liability | 6,840,000 | 6,840,000 | |
Increase to frequent flyer deferred revenue | $ 192,925,000 | ||
Increase (decrease) due to application of IFRS 9 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Change in equity arising from application of IFRS 9 and IFRS 15 | (216,000) | ||
Impact of adopting IFRS 15 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Non controlling interests | 57,958,000 | ||
IFRS9 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Decrease in allowance of loss of loans and accounts receivable | 216,000 | ||
Decrease in deferred tax asset | $ 71,000 |
New and Amended Standards and_4
New and Amended Standards and Interpretations - Schedule of Effects of the Adoption of IFRS 15 Standard in Consolidated Financial Statements Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Total Assets | $ 7,118,643 | $ 6,861,396 | |||
Total Liabilities | 6,126,182 | 5,521,696 | |||
Total Equity | $ 992,461 | $ 1,339,700 | $ 1,420,261 | $ 1,372,635 | |
IFRS9 [member] | |||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Total Assets | $ 6,861,396 | ||||
Total Liabilities | 5,521,696 | ||||
Total Equity | 1,339,700 | ||||
Increase (Decrease) Due to Application of IFRS 15 [member] | |||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Total Liabilities | 199,765 | ||||
Total Equity | (199,765) | ||||
Currently Stated [member] | |||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||||
Total Assets | 6,861,396 | ||||
Total Liabilities | 5,721,461 | ||||
Total Equity | $ 1,139,935 |
New and Amended Standards and_5
New and Amended Standards and Interpretations - Schedule of Effects of the Adoption of IFRS 15 Standard in Consolidated Financial Statements Position (Parenthetical) (Detail) - Increase (Decrease) Due to Application of IFRS 15 [member] - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||
Increase to frequent flyer deferred revenue | $ 192,925 | |
Increase in air traffic liability | $ 6,840 | $ 6,840 |
New and Amended Standards and_6
New and Amended Standards and Interpretations - Schedule of Effects of the Adoption of IFRS 15 Standard in Consolidated Financial Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenue: | |||
Passenger | $ 4,074,391 | $ 3,550,160 | $ 3,285,217 |
Cargo and other | 816,439 | 891,524 | 853,121 |
Total operating revenue | 4,890,830 | 4,441,684 | 4,138,338 |
Total operating expenses | 4,658,714 | 4,148,040 | 3,879,868 |
Operating profit | 232,116 | 293,644 | 258,470 |
Other no operating Income and expenses | (210,760) | ||
Profit (loss) before income tax | 21,356 | 102,141 | 78,276 |
Income tax expense | (20,213) | (20,109) | (34,090) |
Net loss for the year | 1,143 | $ 82,032 | $ 44,186 |
Previously Stated [member] | |||
Operating revenue: | |||
Passenger | 4,059,170 | ||
Cargo and other | 839,899 | ||
Total operating revenue | 4,899,069 | ||
Total operating expenses | 4,658,714 | ||
Operating profit | 240,355 | ||
Other no operating Income and expenses | (210,760) | ||
Profit (loss) before income tax | 29,595 | ||
Income tax expense | (20,213) | ||
Net loss for the year | 9,382 | ||
Deferred Revenue Adjustment [member] | Increase (Decrease) Due to Application of IFRS 15 [member] | |||
Operating revenue: | |||
Passenger | (8,239) | ||
Total operating revenue | (8,239) | ||
Operating profit | (8,239) | ||
Profit (loss) before income tax | (8,239) | ||
Net loss for the year | (8,239) | ||
IFRS 15 Reclassifications [member] | Increase (Decrease) Due to Application of IFRS 15 [member] | |||
Operating revenue: | |||
Passenger | 23,460 | ||
Cargo and other | $ (23,460) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segments | |
Segment information [abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Operational Information by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenue: | |||
Operating expenses | $ 4,658,714 | $ 4,148,040 | $ 3,879,868 |
Depreciation, amortization and impairment | 389,388 | 313,413 | 269,546 |
Operating profit | 232,116 | 293,644 | 258,470 |
Interest expense | (212,294) | (183,332) | (172,630) |
Interest income | 10,115 | 13,548 | 13,054 |
Derivative instruments | (260) | (2,536) | 3,321 |
Foreign exchange | (9,220) | (20,163) | (23,939) |
Equity method profit | 899 | 980 | |
Income tax expense | (20,213) | (20,109) | (34,090) |
Net (loss) profit for the period | 1,143 | 82,032 | 44,186 |
Total Assets | 7,118,643 | 6,861,396 | |
Total Liabilities | 6,126,182 | 5,521,696 | |
Reportable Segments [member] | |||
Operating revenue: | |||
External customers | 4,890,830 | 4,441,684 | 4,138,338 |
Total operating revenue | 4,890,830 | 4,441,684 | 4,138,338 |
Cost of loyalty rewards | 95,705 | ||
Operating expenses | 4,269,326 | 3,834,627 | 3,514,617 |
Depreciation, amortization and impairment | 389,388 | ||
Depreciation and, amortization | 313,413 | 269,546 | |
Operating profit | 232,116 | 293,644 | |
Interest expense | (212,294) | 183,332 | 172,630 |
Interest income | 10,115 | (13,548) | (13,054) |
Derivative instruments | (260) | 2,536 | (3,321) |
Foreign exchange | (9,220) | 20,163 | 23,939 |
Equity method profit | 899 | 980 | |
Income tax expense | (20,213) | 20,109 | 34,090 |
Net (loss) profit for the period | 1,143 | 82,032 | 44,186 |
Total Assets | 7,118,643 | 6,861,396 | 6,351,335 |
Total Liabilities | 6,126,182 | 5,521,696 | 4,931,074 |
Air Transportation Segments [member] | Reportable Segments [member] | |||
Operating revenue: | |||
External customers | 4,577,021 | 4,167,658 | 3,898,271 |
Inter-segment | 148,882 | 112,037 | 89,071 |
Total operating revenue | 4,725,903 | 4,279,695 | 3,987,342 |
Cost of loyalty rewards | 53,901 | ||
Operating expenses | 4,226,414 | 3,797,456 | 3,509,122 |
Depreciation, amortization and impairment | 388,960 | ||
Depreciation and, amortization | 313,314 | 269,534 | |
Operating profit | 110,529 | 168,925 | |
Interest expense | (182,230) | 174,657 | 172,381 |
Interest income | 8,062 | (11,998) | (13,960) |
Derivative instruments | 567 | 2,536 | (3,321) |
Foreign exchange | (9,238) | 20,161 | 23,952 |
Equity method profit | 899 | 980 | |
Income tax expense | (20,258) | 19,457 | 32,384 |
Net (loss) profit for the period | (91,669) | (34,908) | (56,651) |
Total Assets | 7,098,272 | 6,796,848 | 6,328,740 |
Total Liabilities | 5,426,718 | 5,082,763 | 4,842,190 |
Loyalty Segments [member] | Reportable Segments [member] | |||
Operating revenue: | |||
External customers | 313,809 | 274,026 | 240,067 |
Inter-segment | 1,867 | 4,366 | 3,834 |
Total operating revenue | 315,676 | 278,392 | 243,901 |
Cost of loyalty rewards | 120,589 | ||
Operating expenses | 193,269 | 156,627 | 19,617 |
Depreciation, amortization and impairment | 12,976 | ||
Depreciation and, amortization | 12,876 | 12,789 | |
Operating profit | 109,431 | 108,889 | |
Interest expense | (30,064) | 8,675 | 249 |
Interest income | 2,053 | (1,550) | 906 |
Derivative instruments | (827) | ||
Foreign exchange | 18 | 2 | (13) |
Income tax expense | 45 | 652 | 1,706 |
Net (loss) profit for the period | 80,656 | 101,110 | 88,058 |
Total Assets | 248,937 | 248,919 | 227,382 |
Total Liabilities | 862,834 | 545,951 | 203,542 |
Elimination of Intersegment Amounts [member] | Reportable Segments [member] | |||
Operating revenue: | |||
Inter-segment | (150,749) | (116,403) | (92,905) |
Total operating revenue | (150,749) | (116,403) | (92,905) |
Cost of loyalty rewards | (78,785) | ||
Operating expenses | (150,357) | (119,456) | (14,122) |
Depreciation, amortization and impairment | (12,548) | ||
Depreciation and, amortization | (12,777) | (12,777) | |
Operating profit | 12,156 | 15,830 | |
Net (loss) profit for the period | 12,156 | 15,830 | 12,779 |
Total Assets | (228,566) | (184,371) | (204,787) |
Total Liabilities | $ (163,370) | $ (107,018) | $ (114,658) |
Segment Information - Schedul_2
Segment Information - Schedule of Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | $ 4,890,830 | $ 4,441,684 | $ 4,138,338 |
United States of America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 462,091 | 565,910 | 539,365 |
Central America and the Caribbean [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 248,896 | 539,682 | 442,841 |
Colombia [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 2,580,979 | 1,961,600 | 1,831,218 |
South America (excluding - Colombia) [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 732,586 | 933,569 | 840,934 |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | $ 866,278 | $ 440,923 | $ 483,980 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | |||
Net gain (loss) from currency exchanges | $ (9,220,000) | $ (20,163,000) | $ (23,939,000) |
Revolving Credit Facility [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Unsecured revolving credit facility | 423,880,000 | 115,742,000 | |
Unused credit balances | $ 109,059,000 | $ 14,123,000 | |
Bottom of Range [member] | Floating Interest Rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments interest rate | 0.44% | 0.44% | |
Top of Range [member] | Floating Interest Rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial instruments interest rate | 12.55% | 12.15% | |
Commodity Price Risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of change in jet fuel prices | 1.00% | ||
Increase in profit due to change in fuel prices | $ 12,163,000 | ||
Decrease in profit due to change in fuel prices | $ 9,235,000 | ||
Interest Rate Risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Average increase in interest rate | 1.00% | ||
Decrease in Groups income | $ 10,284,000 | $ 8,825,000 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Contractual Maturities of Non-derivative Financial Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | $ 4,007,580 | $ 3,752,113 | $ 3,274,235 |
Short-term Borrowings [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 119,866 | 79,263 | |
Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 3,300,422 | 3,063,801 | |
Liquidity Risk [member] | Short-term Borrowings [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 119,866 | 79,263 | |
Contractual cash flow | 121,194 | 80,459 | |
Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 3,300,422 | 3,063,801 | |
Contractual cash flow | 3,992,304 | 3,568,473 | |
Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 587,292 | 609,049 | |
Contractual cash flow | 649,020 | 732,149 | |
Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 4,007,580 | 3,752,113 | |
Contractual cash flow | 4,762,518 | 4,381,081 | |
Liquidity Risk [member] | Accounts Payable [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 437,506 | 140,848 | |
Contractual cash flow | 437,506 | 140,848 | |
Liquidity Risk [member] | Accrued Expense [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 108,707 | 150,513 | |
Contractual cash flow | 108,707 | 150,513 | |
Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 4,553,793 | 4,043,474 | |
Contractual cash flow | 5,308,731 | 4,672,442 | |
Year one [member] | Liquidity Risk [member] | Short-term Borrowings [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 121,194 | 80,459 | |
Year one [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 627,272 | 586,446 | |
Year one [member] | Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 75,988 | 81,062 | |
Year one [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 824,454 | 747,967 | |
Year one [member] | Liquidity Risk [member] | Accounts Payable [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 437,506 | 140,848 | |
Year one [member] | Liquidity Risk [member] | Accrued Expense [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 108,707 | 150,513 | |
Year one [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 1,370,667 | 1,039,328 | |
Year two [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 595,696 | 485,333 | |
Year two [member] | Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 573,032 | 78,140 | |
Year two [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 1,168,728 | 563,473 | |
Year two [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 1,168,728 | 563,473 | |
Year three [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 645,103 | 498,336 | |
Year three [member] | Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 572,947 | ||
Year three [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 645,103 | 1,071,283 | |
Year three [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 645,103 | 1,071,283 | |
Year four [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 690,558 | 460,022 | |
Year four [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 690,558 | 460,022 | |
Year four [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 690,558 | 460,022 | |
Year Five and Thereafter [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 1,433,675 | 1,538,336 | |
Year Five and Thereafter [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 1,433,675 | 1,538,336 | |
Year Five and Thereafter [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | $ 1,433,675 | $ 1,538,336 |
Financial Risk Management - S_2
Financial Risk Management - Summary of Quantitative Data About Exposure to Currency Risk (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | $ 273,108 | $ 508,982 | $ 375,753 | $ 479,381 |
Accounts receivable, net of expected credit losses | 323,660 | 230,130 | ||
Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 277,951 | 508,982 | ||
Available-for-salesecurities | 55 | |||
Accounts receivable, net of expected credit losses | 329,950 | 480,792 | ||
Secured debt and bonds | (3,329,383) | (3,120,394) | ||
Unsecured debt | (678,197) | (631,719) | ||
Accrued expenses | (120,894) | |||
Accounts payable | (739,701) | (532,048) | ||
Net financial position exposure | (4,260,274) | (3,294,332) | ||
USD [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 172,966 | 342,524 | ||
Accounts receivable, net of expected credit losses | 186,841 | 71,640 | ||
Secured debt and bonds | (3,115,356) | (2,931,194) | ||
Unsecured debt | (675,699) | (628,767) | ||
Accrued expenses | (91,118) | |||
Accounts payable | (505,789) | (286,401) | ||
Net financial position exposure | (4,028,155) | (3,432,198) | ||
Colombian, Pesos [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 33,822 | 70,957 | ||
Accounts receivable, net of expected credit losses | 56,862 | 133,319 | ||
Secured debt and bonds | (29,316) | (61,784) | ||
Unsecured debt | (2,498) | (2,952) | ||
Accrued expenses | (20,363) | |||
Accounts payable | (97,830) | (144,146) | ||
Net financial position exposure | $ (59,323) | $ (4,606) | ||
Percentage change in exchange rate | (4.03%) | 1.00% | ||
Sensitivity analysis effect on profit of the year | $ 2,391 | $ (46) | ||
Euro [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 7,501 | 20,914 | ||
Accounts receivable, net of expected credit losses | 6,863 | 50,983 | ||
Secured debt and bonds | (170,670) | (127,416) | ||
Accrued expenses | (7,577) | |||
Accounts payable | (22,293) | (10,239) | ||
Net financial position exposure | $ (186,176) | $ (65,758) | ||
Percentage change in exchange rate | (5.64%) | 1.00% | ||
Sensitivity analysis effect on profit of the year | $ 10,500 | $ (658) | ||
Venezuelan Bolivares [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 11 | |||
Available-for-salesecurities | 55 | |||
Accounts receivable, net of expected credit losses | 102 | |||
Accounts payable | (119) | |||
Net financial position exposure | 49 | |||
Argentinean, Pesos [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 16,430 | 6,874 | ||
Accounts receivable, net of expected credit losses | 6,843 | 8,282 | ||
Accrued expenses | (231) | |||
Accounts payable | 5,471 | (7,184) | ||
Net financial position exposure | $ 17,571 | $ 7,972 | ||
Percentage change in exchange rate | 2.36% | 1.00% | ||
Sensitivity analysis effect on profit of the year | $ 415 | $ 80 | ||
Brazilian Reals [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 20,769 | 19,468 | ||
Accounts receivable, net of expected credit losses | 33,632 | 21,749 | ||
Accrued expenses | (717) | |||
Accounts payable | (16,203) | (11,943) | ||
Net financial position exposure | $ 37,481 | $ 29,274 | ||
Percentage change in exchange rate | (4.39%) | 1.00% | ||
Sensitivity analysis effect on profit of the year | $ (1,645) | $ 293 | ||
Other [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 26,463 | 48,234 | ||
Accounts receivable, net of expected credit losses | 38,909 | 194,717 | ||
Secured debt and bonds | (14,041) | |||
Accrued expenses | (888) | |||
Accounts payable | (92,115) | (72,016) | ||
Net financial position exposure | $ (41,672) | $ 170,935 |
Financial Risk Management - S_3
Financial Risk Management - Summary of Quantitative Data About Exposure to Currency Risk (Parenthetical) (Detail) - Currency Risk [member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Colombian, Pesos [member] | ||
Disclosure of financial assets [line items] | ||
Percentage change in exchange rate | (4.03%) | 1.00% |
Euro [member] | ||
Disclosure of financial assets [line items] | ||
Percentage change in exchange rate | (5.64%) | 1.00% |
Argentinean, Pesos [member] | ||
Disclosure of financial assets [line items] | ||
Percentage change in exchange rate | 2.36% | 1.00% |
Brazilian Reals [member] | ||
Disclosure of financial assets [line items] | ||
Percentage change in exchange rate | (4.39%) | 1.00% |
Financial Risk Management - S_4
Financial Risk Management - Summary of Interest Rate Profile of the Company's Interest-bearing Financial Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed Interest Rate [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | $ 68,706 | $ 340,877 |
Financial liabilities | (3,162,548) | (3,003,336) |
Total | (3,088,779) | (2,659,469) |
Fixed Interest Rate [member] | Interest Rate Swap Contract [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Interest rate swaps | 5,063 | 2,990 |
Floating Interest Rate [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 14,798 | 51,042 |
Financial liabilities | (845,031) | (748,777) |
Total | $ (830,233) | $ (697,735) |
Financial Risk Management - S_5
Financial Risk Management - Summary of the Debt-to-capital Ratio of the Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Debt Capital Ratio [line items] | ||
Debt | $ 28,147 | $ 59,808 |
Less: cash and cash equivalents and restricted cash | (277,951) | (514,447) |
Total equity attributable to the Company | 1,170,454 | 1,415,650 |
Capital Risk Management [member] | ||
Disclosure of Debt Capital Ratio [line items] | ||
Debt | 4,007,580 | 3,752,113 |
Less: cash and cash equivalents and restricted cash | (277,951) | (514,447) |
Total net debt | 3,729,629 | 3,237,666 |
Total equity attributable to the Company | 1,155,587 | 1,415,650 |
Total Capital | $ 4,885,216 | $ 4,653,316 |
Net debt-to-capital ratio | 76.00% | 68.00% |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Fair Values of Financial Assets and Liabilities (Detail) - Capital Risk Management [member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | $ 253,356 | $ 213,236 |
Financial liabilities | 4,007,563 | 3,752,250 |
Carrying Amount [member] | Short-term Borrowings and Long-term Debt [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | 4,007,580 | 3,752,113 |
Carrying Amount [member] | Derivative Instruments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | (17) | 137 |
Carrying Amount [member] | Investments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 67,306 | |
Carrying Amount [member] | Derivative Instruments Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 7,456 | 23,539 |
Carrying Amount [member] | Plan Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 178,594 | 189,697 |
Fair Value [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 253,356 | 213,236 |
Financial liabilities | 4,022,690 | 3,587,978 |
Fair Value [member] | Short-term Borrowings and Long-term Debt [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | 4,022,707 | 3,587,841 |
Fair Value [member] | Derivative Instruments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | (17) | 137 |
Fair Value [member] | Investments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 67,306 | |
Fair Value [member] | Derivative Instruments Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 7,456 | 23,539 |
Fair Value [member] | Plan Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | $ 178,594 | $ 189,697 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Restricted Cash - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of cash and cash equivalents and restricted cash [abstract] | ||||
Cash on hand and bank deposits | $ 264,565 | $ 490,657 | ||
Demand and term deposits (1) | 8,543 | 18,325 | ||
Cash and cash equivalents | 273,108 | 508,982 | $ 375,753 | $ 479,381 |
Restricted cash (2) | 4,843 | 5,465 | ||
Cash and cash equivalents and restricted cash | $ 277,951 | $ 514,447 |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Restricted Cash - Summary of Cash and Cash Equivalents and Restricted Cash (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Demand and term deposits | $ 8,543 | $ 18,325 |
Colombian, Pesos [member] | Bottom of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 2.61% | 3.77% |
Percentage of deposits annual interest rate | 2.61% | 3.77% |
Colombian, Pesos [member] | Top of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 4.85% | 5.52% |
Percentage of deposits annual interest rate | 4.85% | 5.52% |
USD [member] | Bottom of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 2.05% | 2.10% |
Percentage of deposits annual interest rate | 2.05% | 2.10% |
USD [member] | Top of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 4.59% | 6.50% |
Percentage of deposits annual interest rate | 4.59% | 6.50% |
Trade and Other Receivables - S
Trade and Other Receivables - Schedule of Trade and Other Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Trade and Other Accounts Receivables [line items] | |||
Less Allowance for expected credit losses | $ (12,430) | $ (13,180) | $ (13,256) |
Total | 323,660 | 230,130 | |
Net current | 288,157 | 226,015 | |
Net non-current | 35,503 | 4,115 | |
Gross Carrying Amount [member] | |||
Disclosure of Trade and Other Accounts Receivables [line items] | |||
Trade | 258,186 | 190,501 | |
Employee advances | 4,848 | 6,213 | |
Other | 73,056 | 46,596 | |
Total | $ 336,090 | $ 243,310 |
Trade and Other Receivables -_2
Trade and Other Receivables - Summary of Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in allowance account for credit losses of financial assets [abstract] | ||
Balance at beginning of year | $ 13,180 | $ 13,256 |
Adjustment implementation IFRS 9 | (216) | |
Bad debt expense | 4,526 | 4,363 |
Write-off against the allowance | (5,060) | (4,439) |
Balance at end of year | $ 12,430 | $ 13,180 |
Trade and Other Receivables -_3
Trade and Other Receivables - Summary of Aging of Accounts Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of provision matrix [line items] | |||
Allowance for expected credit losses | $ (12,430) | $ (13,180) | $ (13,256) |
Net accounts receivable | 245,756 | 177,321 | |
Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 258,186 | 190,501 | |
Past due 1-30 days [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 33,721 | 23,537 | |
Past due 31-90 days [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 17,506 | 17,151 | |
Past Due 91 Days [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 37,370 | 22,767 | |
Financial Assets Neither Past Due nor Impaired [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | $ 169,589 | $ 127,046 |
Balances and Transactions Wit_3
Balances and Transactions With Related Parties - Schedule of Summary of Related Party Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | ||
Receivables | $ 6,290 | $ 17,204 |
Payables | 2,827 | 7,187 |
Revenues | 23,684 | 29,819 |
Expenses | 73,472 | 58,880 |
SP SYN Participacoes S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 13,853 | |
Revenues | 585 | 860 |
OceanAir Linhas Aereas, S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 6,199 | 1,725 |
Payables | 1,078 | 4,264 |
Revenues | 23,062 | 28,906 |
Expenses | 58,479 | 33,888 |
Aerovias Beta Corp. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 977 | |
Aeromantenimiento, S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 10 | 17 |
Expenses | 622 | |
Transportadora del Meta S.A.S. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 13 | |
Payables | 569 | 222 |
Revenues | 19 | 18 |
Expenses | 4,781 | 3,444 |
Empresariales S.A.S. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Payables | 364 | 467 |
Revenues | 5 | 3 |
Expenses | 3,511 | 10,107 |
Global Operadora Hotelera S.A.S [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 9 | 8 |
Payables | 532 | 636 |
Revenues | 7 | 9 |
Expenses | 5,954 | 5,340 |
Synergy Aerospace Corp. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 512 | |
Payables | 1,262 | |
Expenses | 4,201 | |
Corporacion Hotelera Internacional S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Payables | 203 | 83 |
Expenses | 745 | 432 |
Other [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 59 | 112 |
Payables | 81 | 253 |
Revenues | 6 | 23 |
Expenses | 2 | 846 |
Short Term [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 6,290 | 17,204 |
Payables | $ 2,827 | $ 7,187 |
Balances and Transactions Wit_4
Balances and Transactions With Related Parties - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | ||
Expense for doubtful accounts with respect to related party | $ 0 | |
Provision for doubtful accounts with respect to related party | 0 | |
Key Management Personnel of Entity or Parent [member] | ||
Disclosure of transactions between related parties [line items] | ||
Key management personnel compensation expense | $ 26,499,000 | $ 22,074,000 |
Balances and Transactions Wit_5
Balances and Transactions With Related Parties - Disclosure of Transaction of Related Party, Nature of Services (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Aeromantenimiento, S.A. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | Aircraft maintenance company that provides aircraft overhaul services to the Group. |
Aerovias Beta Corp. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | Accounts receivable correspond to amounts due to Latin Airways Corp. as a result of the spin-off of Aerovías Beta Corp., which led to the creation of Latin Airways Corp. |
Corporacion Hotelera Internacional S.A. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | Accommodation services for crews and employees of the Group. |
Global Operadora Hotelera S.A.S [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | Accommodation services for crews and employees of the Group. |
Empresariales S.A.S. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | Transportation services for employees of Avianca, S.A. |
OceanAir Linhas Aereas, S.A. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | The Group provides to and receives from OceanAir logistic services, marketing and advertising, maintenance services, and training services. The Group has entered into a licensing agreement with OceanAir for the use of the Avianca trademark in Brazil. Additionally, the Group leases aircraft to OceanAir (see Note 33). On November 4, 2014, Tampa Cargo S.A.S., entered into a Block Space Agreement with OceanAir Linhas Aéreas, S.A., acquiring priority rights and a minimum guaranteed cargo capacity on certain flights of the carrier. |
SP SYN Participacoes S.A. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | Avianca, S.A. ("Avianca") and SP SYN Participações S.A. ("SP SYN") signed a novation of the receivables from OceanAir Linhas Aéreas, S.A. ("OceanAir") whereby SP SYN would be the new debtor. |
Synergy Aerospace Corp. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | The balances of accounts receivable correspond to reserves on aircraft engines and maintenance contracts. The balances payable originate in payments executed by Synergy Aerospace Corp. on behalf of Latin Airways Corp. |
Transportadora del Meta S.A.S. [member] | |
Disclosure of transactions between related parties [line items] | |
Description of nature of services | It provides Avianca, S.A. ground transportation services for cargo / courier shipments. |
Balances and Transactions Wit_6
Balances and Transactions With Related Parties - Summary of Key Management Personnel Short-Term Compensation (Detail) - Key Management Personnel of Entity or Parent [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | ||
Key management personnel compensation, Salaries | $ 13,791 | $ 13,571 |
Key management personnel compensation, Bonuses | 8,775 | 5,054 |
Key management personnel compensation, Social benefits | 3,027 | 2,604 |
Key management personnel compensation, Loans | 55 | |
Key management personnel compensation, Compensation | 73 | 31 |
Key management personnel compensation, Others | 833 | 759 |
Key management personnel compensation, Total | $ 26,499 | $ 22,074 |
Expendable Spare Parts and Su_3
Expendable Spare Parts and Supplies, Net of Provision for Obsolescence - Summary of Expendable Spare Parts and Supplies (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Classes of current inventories [abstract] | ||
Expendable spare parts | $ 83,151 | $ 86,705 |
Supplies | 7,244 | 10,543 |
Total | $ 90,395 | $ 97,248 |
Expendable Spare Parts and Su_4
Expendable Spare Parts and Supplies, Net of Provision for Obsolescence - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classes of current inventories [abstract] | |||
Maintenance expense | $ 84,662 | $ 60,027 | $ 59,579 |
Expendable Spare Parts and Su_5
Expendable Spare Parts and Supplies, Net of Provision for Obsolescence - Summary of Rollforward of Inventory Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of current inventories [abstract] | ||
Balance at beginning of year | $ 18,631 | $ 24,705 |
Provisions reverse | (3,203) | (4,858) |
Write-offs against the allowance | (8,923) | (1,216) |
Balance at end of year | $ 6,505 | $ 18,631 |
Prepayments - Schedule of Prepa
Prepayments - Schedule of Prepaid Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Prepaid expenses tables [abstract] | |||
Prepaid commissions | [1] | $ 27,991 | $ 33,170 |
Prepaid compensations clients | 37,130 | 29,754 | |
Advance payments on operating aircraft leases | 12,470 | 9,507 | |
Premiums for insurance policies | 2,401 | 12,142 | |
Other | 19,872 | 15,184 | |
Total | $ 99,864 | $ 99,757 | |
[1] | Advance payment made to IATA for service charges made by airlines. This is mainly the case with Airlines that belong to Star Alliance for the accumulation of miles, use of VIP lounges and Reservation Systems, Travelport Global Distribution System B.V., Services of Bolivian Airports, S.A., United Airlines Inc. |
Deposits and Other Assets - Sum
Deposits and Other Assets - Summary of Deposits and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short term: | ||
Short term investments | $ 59,847 | $ 59,332 |
Others | 9,542 | 8,871 |
Sub-Total | 87,207 | 181,435 |
Fair value of derivative instruments | 2,566 | 20,549 |
Total | 89,773 | 201,984 |
Long term: | ||
Long term investments - restricted | 7,459 | 9,214 |
Others | 14,983 | 23,703 |
Sub-Total | 110,726 | 113,410 |
Fair value of derivative instruments | 4,778 | 2,990 |
Total | 115,504 | 116,400 |
Deposits with Lessors [member] | ||
Short term: | ||
Deposits with lessors | 15,535 | 111,229 |
Long term: | ||
Deposits with lessors | 73,569 | 63,962 |
Guarantee Deposits [member] | ||
Short term: | ||
Guarantee deposits | 2,283 | 2,003 |
Long term: | ||
Guarantee deposits | $ 14,715 | $ 16,531 |
Deposits and Other Assets - S_2
Deposits and Other Assets - Summary of Deposits and Other Assets (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Deposits And Other Assets [abstract] | |
Percentage of outstanding amount of debt with bondholders. | 15.00% |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Aircraft | Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | $ 441,175 | $ 337,083 | |
Expansion expenses for VIP Room | 4,267 | ||
Aeronautical training and emergency practice exercises expense | 886 | ||
Charges assocaited with repair and improvements | 84,662 | 60,027 | $ 59,579 |
Net gain on sale and leaseback transactions | 70,070 | ||
Financial leasing | 53,990 | ||
Amortization recognized in comprehensive income | 4,747 | ||
Loss from operating lease | 16,080 | ||
Impairment loss | 38,881 | ||
Balance | 5,313,317 | 4,881,016 | $ 4,649,929 |
Land and buildings | 14,867 | ||
Colombia [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Revaluation value of lands and building | 20,448 | ||
Airbus and Boeing [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Capitalized loan costs | $ 16,355 | $ 10,443 | |
Average interest rate | 7.16% | 7.30% | |
Number of aircraft order under Pre-delivery payments | Aircraft | 29 | ||
A-330-330 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 2 | ||
A321-200 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 2 | ||
B-787 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 1 | ||
320 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 1 | ||
A-318 [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 10 | ||
A-320 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 1 | ||
B787-8 [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 1 | ||
A-300-F [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 1 | ||
A-320-NEO [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of aircraft purchased | Aircraft | 2 | ||
Fuselage [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Carried out and capitalized engine maintenance | $ 16,441 | $ 27,821 | |
Engine [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Carried out and capitalized engine maintenance | 197,674 | $ 143,786 | |
Multimedia Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions | 5,610 | ||
Furniture and Office Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Additions | 726 | ||
Airbus A320 M S N 2605 Flight Simulator Model [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Cost of Airbus A320 MSN 2605 flight simulator capitalized | 25,963 | ||
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Revaluation value of lands and building | 917 | ||
Balance | 54,536 | ||
Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Revaluation value of lands and building | (967) | ||
Balance | 79,049 | ||
Bogota Air Bridger [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Charges assocaited with repair and improvements | 607 | ||
Alfonso Bonilla International Airport [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Charges assocaited with repair and improvements | 295 | ||
Santa Marta VIP Lounge Simon Bolivar International Airport [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Charges assocaited with repair and improvements | 207 | ||
CCTV [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Charges assocaited with repair and improvements | 270 | ||
Center of Operational Excellence Building [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Cost of project | $ 43,443 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Carrying Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Accumulated depreciation | $ 5,313,317 | $ 4,881,016 | $ 4,649,929 |
Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Accumulated depreciation | 6,920,276 | 6,195,397 | 5,686,297 |
Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Accumulated depreciation | (1,606,959) | (1,314,381) | $ (1,036,368) |
Land and Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Accumulated depreciation | 91,980 | 117,561 | |
Land and Buildings [member] | Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Accumulated depreciation | 102,351 | 128,791 | |
Land and Buildings [member] | Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Accumulated depreciation | $ (10,371) | $ (11,230) |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Flight Equipment, Property and Other Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 4,881,016 | $ 4,649,929 |
Sale of subsidiaries | 7,674 | |
Ending balance | 5,313,317 | 4,881,016 |
Gross Carrying Amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6,195,397 | 5,686,297 |
Additions | 970,072 | 677,056 |
Disposals | (170,581) | |
Disposals/Transfers | (198,973) | |
Transfers to assets held for sale | (41,402) | |
Sale of subsidiaries | (12,762) | |
Revaluation | (20,448) | 31,017 |
Ending balance | 6,920,276 | 6,195,397 |
Accumulated Depreciation and Amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,314,381) | (1,036,368) |
Additions | (324,338) | (293,100) |
Disposals | 53,510 | 15,087 |
Impairment | (38,881) | |
Transfers to assets held for sale | 9,573 | |
Sale of subsidiaries | 7,558 | |
Ending balance | (1,606,959) | (1,314,381) |
Flight Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 3,984,111 | 3,797,157 |
Ending balance | 4,215,969 | 3,984,111 |
Flight Equipment [member] | Gross Carrying Amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,808,885 | 4,450,572 |
Additions | 516,614 | 333,202 |
Disposals | (81,381) | |
Disposals/Transfers | 25,111 | |
Transfers | 42 | |
Ending balance | 5,244,160 | 4,808,885 |
Flight Equipment [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (824,774) | (653,415) |
Additions | (192,581) | (177,262) |
Disposals | 28,188 | 5,903 |
Impairment | (38,881) | |
Transfers | (143) | |
Ending balance | (1,028,191) | (824,774) |
Capitalized Maintenance [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 284,839 | 192,838 |
Ending balance | 426,028 | 284,839 |
Capitalized Maintenance [member] | Gross Carrying Amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 555,619 | 383,434 |
Additions | 238,597 | 171,607 |
Disposals | (3,632) | |
Disposals/Transfers | 578 | |
Transfers | 420 | |
Ending balance | 791,004 | 555,619 |
Capitalized Maintenance [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (270,780) | (190,596) |
Additions | (95,460) | (81,616) |
Disposals | 1,264 | 1,432 |
Ending balance | (364,976) | (270,780) |
Rotable Spare Parts [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 151,507 | 141,056 |
Ending balance | 168,603 | 151,507 |
Rotable Spare Parts [member] | Gross Carrying Amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 219,067 | 203,545 |
Additions | 30,098 | 17,271 |
Disposals | (22,843) | |
Disposals/Transfers | (1,749) | |
Transfers | (481) | |
Ending balance | 225,841 | 219,067 |
Rotable Spare Parts [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (67,560) | (62,489) |
Additions | (10,742) | (6,642) |
Disposals | 20,918 | 1,571 |
Transfers | 146 | |
Ending balance | (57,238) | (67,560) |
Aircraft Predelivery Payments [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 159,303 | 215,097 |
Ending balance | 260,000 | 159,303 |
Aircraft Predelivery Payments [member] | Gross Carrying Amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 159,303 | 215,097 |
Additions | 111,711 | 119,049 |
Disposals | (11,014) | |
Disposals/Transfers | (174,843) | |
Ending balance | 260,000 | 159,303 |
Administrative Property [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 147,663 | 149,371 |
Ending balance | 125,049 | 147,663 |
Administrative Property [member] | Gross Carrying Amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 158,217 | 158,777 |
Additions | 1,615 | 2,099 |
Disposals | (3,546) | |
Disposals/Transfers | (33,676) | |
Revaluation | (20,448) | 31,017 |
Ending balance | 135,838 | 158,217 |
Administrative Property [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (10,554) | (9,406) |
Additions | (2,310) | (2,229) |
Disposals | 2,075 | 1,081 |
Ending balance | (10,789) | (10,554) |
Other Property, Plant and Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 153,593 | 154,410 |
Ending balance | 117,668 | 153,593 |
Other Property, Plant and Equipment [member] | Gross Carrying Amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 294,306 | 274,872 |
Additions | 71,437 | 33,828 |
Disposals | (48,165) | |
Disposals/Transfers | (14,394) | |
Transfers | 19 | |
Transfers to assets held for sale | (41,402) | |
Sale of subsidiaries | (12,762) | |
Ending balance | 263,433 | 294,306 |
Other Property, Plant and Equipment [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (140,713) | (120,462) |
Additions | (23,245) | (25,351) |
Disposals | 1,065 | 5,100 |
Transfers | (3) | |
Transfers to assets held for sale | 9,573 | |
Sale of subsidiaries | 7,558 | |
Ending balance | $ (145,765) | $ (140,713) |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | $ 205,770 | $ 115,306 | |
Goodwill | 308,033 | 311,273 | |
Total Intangible Assets | 513,803 | 426,579 | $ 412,918 |
Routes [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 34,299 | 36,503 | |
Total Intangible Assets | 34,299 | 36,503 | 38,707 |
Trademarks 1 [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 3,959 | 3,938 | |
Total Intangible Assets | 3,959 | 3,938 | 3,938 |
Computer Software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 84,470 | 70,927 | |
Total Intangible Assets | 84,470 | 70,927 | 61,804 |
Other Intangible Assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 83,042 | 3,938 | |
Total Intangible Assets | $ 83,042 | $ 3,938 | $ 435 |
Intangible Assets - Rollforward
Intangible Assets - Rollforward of Intangibles Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | $ 426,579 | $ 412,918 |
Ending balance | 513,803 | 426,579 |
Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 527,072 | 493,098 |
Other Acquisitions - Internally developed | 116,635 | 33,974 |
Acquisitions / Adjustment through Business Combinations | (3,240) | |
Ending balance | 640,467 | 527,072 |
Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (100,493) | (80,180) |
Amortization for the year | 26,171 | 20,313 |
Ending balance | (126,664) | (100,493) |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 311,274 | 308,034 |
Ending balance | 308,033 | 311,274 |
Goodwill [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 314,421 | 311,181 |
Other Acquisitions - Internally developed | 0 | 3,240 |
Acquisitions / Adjustment through Business Combinations | (3,240) | |
Ending balance | 311,180 | 314,421 |
Goodwill [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (3,147) | (3,147) |
Amortization for the year | 0 | 0 |
Ending balance | (3,147) | (3,147) |
Routes [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 36,503 | 38,707 |
Ending balance | 34,299 | 36,503 |
Routes [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 52,481 | 52,481 |
Other Acquisitions - Internally developed | 0 | 0 |
Acquisitions / Adjustment through Business Combinations | 0 | |
Ending balance | 52,481 | 52,481 |
Routes [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (15,978) | (13,774) |
Amortization for the year | 2,204 | 2,204 |
Ending balance | (18,182) | (15,978) |
Trademarks 1 [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 3,938 | 3,938 |
Ending balance | 3,959 | 3,938 |
Trademarks 1 [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 3,938 | 3,938 |
Other Acquisitions - Internally developed | 21 | 0 |
Acquisitions / Adjustment through Business Combinations | 0 | |
Ending balance | 3,959 | 3,938 |
Trademarks 1 [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 0 | 0 |
Amortization for the year | 0 | 0 |
Ending balance | 0 | 0 |
Computer Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 70,927 | 61,804 |
Ending balance | 84,470 | 70,927 |
Computer Software [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 147,512 | 120,694 |
Other Acquisitions - Internally developed | 23,888 | 26,818 |
Acquisitions / Adjustment through Business Combinations | 0 | |
Ending balance | 171,400 | 147,512 |
Computer Software [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (76,585) | (58,890) |
Amortization for the year | 10,345 | 17,695 |
Ending balance | (86,930) | (76,585) |
Other Intangible Assets [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 3,938 | 435 |
Ending balance | 83,042 | 3,938 |
Other Intangible Assets [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 8,720 | 4,804 |
Other Acquisitions - Internally developed | 92,726 | 3,916 |
Acquisitions / Adjustment through Business Combinations | 0 | |
Ending balance | 101,447 | 8,720 |
Other Intangible Assets [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (4,783) | (4,369) |
Amortization for the year | 13,622 | 414 |
Ending balance | $ (18,405) | $ (4,783) |
Intangible Assets - Rollforwa_2
Intangible Assets - Rollforward of Intangibles Assets (Parenthetical) (Detail) - Other Intangible Assets [member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Acquisitions of other intangibles | $ 28,567 |
SAP Project [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Acquisitions of other intangibles | 17,566 |
J2C Project [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Acquisitions of other intangibles | 13,056 |
SOC Project [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Acquisitions of other intangibles | 8,848 |
CRM Project [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Acquisitions of other intangibles | $ 5,936 |
Intangible Assets - Summary of
Intangible Assets - Summary of Carrying Amount of Goodwill and Intangibles Allocated to Each of CGUs (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | $ 513,803 | $ 426,579 | $ 412,918 |
Goodwill [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 308,033 | 311,274 | 308,034 |
Routes [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 34,299 | 36,503 | 38,707 |
Trademarks 1 [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 3,959 | 3,938 | $ 3,938 |
Avianca Ecuador S.A [member] | Goodwill [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 32,979 | 32,979 | |
Grupo Taca Holdings Limited [member] | Goodwill [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 234,779 | 234,779 | |
Tampa Cargo S.A.S. [member] | Goodwill [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 40,276 | 40,276 | |
Tampa Cargo S.A.S. [member] | Routes [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 23,463 | 23,463 | |
Tampa Cargo S.A.S. [member] | Trademarks 1 [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | $ 3,938 | $ 3,938 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of CGUs Key Assumptions Used in Value in Use Calculation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Carrying amount of goodwill | $ 308,033 | $ 311,273 |
Avianca Ecuador S.A [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Carrying amount of goodwill | 32,979 | 32,979 |
Impairment losses | $ 0 | $ 0 |
Duration of planning period | 5 years | 5 years |
Revenue growth p.a. after planning period | 4.40% | 6.90% |
Operating Income after planning period | 5.90% | 13.20% |
Capital expenditures after planning period | 10.00% | 7.00% |
Business Enterprise Value | $ 274,720 | $ 231,008 |
Discount rate | 12.32% | 13.03% |
Avianca Ecuador S.A [member] | Bottom of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Impairment losses | $ 0 | $ 0 |
Revenue growth p.a. over planning period | (0.60%) | 1.90% |
Operating income over planning period | 4.90% | 8.50% |
Capital expenditures over planning period | 9.00% | 3.00% |
Avianca Ecuador S.A [member] | Top of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Impairment losses | $ 0 | $ 0 |
Revenue growth p.a. over planning period | 8.90% | 11.70% |
Operating income over planning period | 17.70% | 14.90% |
Capital expenditures over planning period | 17.00% | 13.00% |
Grupo Taca Holdings Limited [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Carrying amount of goodwill | $ 234,779 | $ 234,779 |
Impairment losses | $ 0 | $ 0 |
Duration of planning period | 5 years | 5 years |
Revenue growth p.a. after planning period | 4.40% | 12.90% |
Operating Income after planning period | 32.00% | 5.20% |
Capital expenditures after planning period | 8.00% | 5.00% |
Business Enterprise Value | $ 2,142,073 | $ 1,886,880 |
Discount rate | 13.44% | 14.48% |
Grupo Taca Holdings Limited [member] | Bottom of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Impairment losses | $ 0 | $ 0 |
Revenue growth p.a. over planning period | 1.30% | 4.30% |
Operating income over planning period | (30.00%) | 1.80% |
Capital expenditures over planning period | 9.00% | 4.00% |
Grupo Taca Holdings Limited [member] | Top of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Impairment losses | $ 0 | $ 0 |
Revenue growth p.a. over planning period | 9.60% | 17.80% |
Operating income over planning period | 2.20% | 5.20% |
Capital expenditures over planning period | 13.00% | 11.00% |
Tampa Cargo S.A.S. [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Carrying amount of goodwill | $ 40,276 | $ 40,276 |
Impairment losses | $ 0 | $ 0 |
Duration of planning period | 5 years | 5 years |
Revenue growth p.a. after planning period | 3.90% | 5.50% |
Operating Income after planning period | 15.30% | 11.40% |
Capital expenditures after planning period | 6.00% | 6.60% |
Business Enterprise Value | $ 759,450 | $ 772,027 |
Discount rate | 9.36% | 9.60% |
Tampa Cargo S.A.S. [member] | Bottom of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Impairment losses | $ 0 | $ 0 |
Revenue growth p.a. over planning period | 0.40% | 0.80% |
Operating income over planning period | 8.40% | 8.90% |
Capital expenditures over planning period | 2.00% | 0.30% |
Tampa Cargo S.A.S. [member] | Top of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Impairment losses | $ 0 | $ 0 |
Revenue growth p.a. over planning period | 1.90% | 3.70% |
Operating income over planning period | 13.90% | 12.30% |
Capital expenditures over planning period | 10.00% | 7.70% |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets Held for Sale (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of assets held for sale [line items] | |
Assets held for sale | $ 31,580 |
Flight Simulators [member] | |
Disclosure of assets held for sale [line items] | |
Assets held for sale | $ 31,580 |
Assets Held for Sale - Summar_2
Assets Held for Sale - Summary of Assets Held for Sale (Parenthetical) (Detail) | Jan. 30, 2019Flights |
Events After Reporting Period [member] | |
Disclosure of assets held for sale [line items] | |
Number of flight simulators held for sale | 10 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Loans and Borrowings, Measured at Amortized Cost (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | ||
Current | $ 626,742 | $ 572,072 |
Non-current | 3,380,838 | 3,180,041 |
Current Short Term Borrowings [member] | ||
Disclosure of financial liabilities [line items] | ||
Current | 589,366 | 542,614 |
Current Portion of Bonds [member] | ||
Disclosure of financial liabilities [line items] | ||
Current | 37,376 | 29,458 |
Long-term Debt [member] | ||
Disclosure of financial liabilities [line items] | ||
Non-current | 2,830,922 | 2,600,450 |
Non current Portion of Bonds [member] | ||
Disclosure of financial liabilities [line items] | ||
Non-current | $ 549,916 | $ 579,591 |
Long-Term Debt - Schedule of ou
Long-Term Debt - Schedule of outstanding obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial liabilities [line items] | |||
Face value | $ 6,012,811 | $ 5,423,991 | |
Carrying amount | $ 4,007,580 | $ 3,752,113 | $ 3,274,235 |
Short-term Borrowings [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2019 | 2018 | |
Weighted average interest rate | 5.81% | 3.96% | |
Face value | $ 130,858 | $ 85,387 | |
Carrying amount | $ 119,866 | $ 79,263 | |
Long-term Debt [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2029 | 2029 | |
Weighted average interest rate | 4.76% | 4.14% | |
Face value | $ 5,249,987 | $ 4,699,338 | |
Carrying amount | 3,300,422 | 3,063,801 | |
Bonds [member] | |||
Disclosure of financial liabilities [line items] | |||
Carrying amount | $ 587,292 | $ 609,049 | |
Colombia [member] | Bonds [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2019 | 2019 | |
Weighted average interest rate | 9.87% | 10.58% | |
Face value | $ 81,966 | $ 89,266 | |
Carrying amount | $ 28,147 | $ 59,808 | |
Bonds-Luxembourg [member] | Bonds [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2020 | 2020 | |
Weighted average interest rate | 7.95% | 8.38% | |
Face value | $ 550,000 | $ 550,000 | |
Carrying amount | $ 559,145 | $ 549,241 |
Long-Term Debt - Summary of Det
Long-Term Debt - Summary of Detail of the Debt Balance (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of debt [line items] | |||
Debt | $ 4,007,580 | $ 3,752,113 | $ 3,274,235 |
Corporate bonds [member] | |||
Disclosure of debt [line items] | |||
Debt | 1,023,540 | 854,459 | |
Bonds [member] | |||
Disclosure of debt [line items] | |||
Debt | 587,292 | 609,049 | |
Aircraft [member] | |||
Disclosure of debt [line items] | |||
Debt | $ 2,396,748 | $ 2,288,605 |
Long-Term debt - Additional Inf
Long-Term debt - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of debt [line items] | |||
Debt issuance | $ 427,751 | $ 340,568 | |
Proceeds from loans and borrowings | $ 303,640 | $ 510,360 | $ 35,034 |
Borrowings description | Mainly these loans are acquired by Lifemiles, $ 95,000 at a rate Libor + 5.5 for a term of 4 years. | Amount these loans is the one acquired by LifeMiles, $300,000 at a rate LIBOR + 5.5%, for a term of 5 years | |
Representative of bondholders | Helm Trust, S.A. | ||
Amount of issue | $500,000 million Colombian Pesos | ||
Managing agent | Fiduciaria Bogota, S.A. | ||
Series | Series A: Authorized issue $100,000 million Colombian Pesos Series B: Authorized issue $200,000 million Colombian Pesos Series C: Authorized issue $300,000 million Colombian Pesos | ||
Coupon | Series A: Indexed to Colombian consumer price index Series B: Indexed to Colombian consumer price index Series C: Indexed to Colombian consumer price index Interest is payable at quarter–end | ||
Term | Series A: 5 years Series B: 7 years Series C: 10 years | ||
capital | Series A: At the end of 5 years Series B: 50% after 6 years and 50% after 7 years Series C: 33% after 8 years, 33% after 9 years and 34% after 10 years | ||
Avianca Holdings Avianca Leasing and Grupo Taca Holdings Limited [member] | |||
Disclosure of debt [line items] | |||
Borrowings issuers | Avianca Holdings S.A., Avianca Leasing, LLC, and Grupo Taca Holdings Limited | ||
Borrowings guarantors | 0.00% | ||
Notes offered | 0.00% | ||
Initial issue price | 98.706% | ||
Initial issue date | May 10, 2013 | ||
Issue amount | $ 300,000 | ||
Interest | The Senior Notes will bear interest at a fixed rate of 8.375% per year. The first issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on November 10, 2013. Interest will accrue from May 10, 2013. The second issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on May 10, 2014. | ||
Second issue price | 104.50% | ||
Second issue date | Apr. 8, 2014 | ||
Maturity date | The Senior Notes will mature on May 10, 2020. |
Long-Term debt - Schedule of Se
Long-Term debt - Schedule of Senior Notes Outstanding and the Corresponding Balance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of debt [line items] | |||
Total placed in original currency | $ 4,007,580 | $ 3,752,113 | $ 3,274,235 |
Borrowings | $ 28,147 | 59,808 | |
Avianca Holdings Avianca Leasing and Grupo Taca Holdings Limited [member] | |||
Disclosure of debt [line items] | |||
Original currency | USD | ||
Total placed in original currency | $ 550,000 | ||
Borrowings | $ 559,145 | $ 549,241 |
Long-Term Debt - Schedule of Bo
Long-Term Debt - Schedule of Bonds Issued (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of liabilities [line items] | |||
Original currency | $ 4,007,580 | $ 3,752,113 | $ 3,274,235 |
Borrowings | 28,147 | 59,808 | |
Series C Bonds [member] | Avianca [member] | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Borrowings | 28,147 | 59,808 | |
Colombian, Pesos [member] | Series A Bonds [member] | Avianca [member] | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Original currency | 75,000 | ||
Colombian, Pesos [member] | SeriesB Bonds [member] | Avianca [member] | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Original currency | 158,630 | ||
Colombian, Pesos [member] | Series C Bonds [member] | Avianca [member] | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Original currency | 266,370 | ||
Borrowings | $ 90,566 | $ 178,468 |
Long-Term debt - Schedule of Fu
Long-Term debt - Schedule of Future Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 28,147 | $ 59,808 |
Long-term Debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,300,422 | 3,063,801 |
Year one [member] | Long-term Debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 469,500 | 463,351 |
Year two [member] | Long-term Debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 457,737 | 381,288 |
Year three [member] | Long-term Debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 529,125 | 412,839 |
Year four [member] | Long-term Debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 608,026 | 392,810 |
Year Five and Thereafter [member] | Long-term Debt [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 1,236,034 | $ 1,413,513 |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Future Payments on Bonds (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 28,147 | $ 59,808 |
Bonds [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 587,292 | 609,049 |
Year one [member] | Bonds [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 37,376 | 29,458 |
Year two [member] | Bonds [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 549,916 | 29,676 |
Year three [member] | Bonds [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 549,915 |
Long-term debt - Schedule of Ch
Long-term debt - Schedule of Changes in Liabilities Derived from Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | |||
Notional amount beginning balance | $ 3,752,113 | $ 3,274,235 | |
New acquisitions | 303,640 | 510,360 | $ 35,034 |
New leases | 427,751 | 340,568 | |
New cost | 233,312 | (388,095) | |
Debt payments | (483,473) | ||
Interest payments | (208,709) | ||
Foreign exchange movement | (17,054) | 15,045 | |
Notional amount ending balance | 4,007,580 | 3,752,113 | 3,274,235 |
Current Interest Bearing Loans and Borrowings [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount beginning balance | 79,263 | 62,179 | |
New acquisitions | 68,866 | 39,492 | |
New cost | 5,556 | (22,408) | |
Debt payments | (27,691) | ||
Interest payments | (4,572) | ||
Foreign exchange movement | (1,556) | ||
Notional amount ending balance | 119,866 | 79,263 | 62,179 |
Current Portion of Long Term Credits [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount beginning balance | 463,351 | 314,970 | |
New acquisitions | 207,562 | ||
New cost | 141,337 | (57,197) | |
Debt payments | (103,630) | ||
Interest payments | (56,650) | ||
Foreign exchange movement | 25,092 | (1,984) | |
Notional amount ending balance | 469,500 | 463,351 | 314,970 |
Current Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount beginning balance | 29,458 | 29,590 | |
New cost | 57,940 | ||
Interest payments | (51,044) | ||
Foreign exchange movement | 1,022 | (132) | |
Notional amount ending balance | 37,376 | 29,458 | 29,590 |
Non Current Obligations under Financial Lease Agreements and Purchase Agreements [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount beginning balance | 2,600,450 | 2,259,459 | |
New acquisitions | 234,774 | 263,306 | |
New leases | 427,751 | 340,568 | |
New cost | 23,063 | (279,580) | |
Debt payments | (324,748) | ||
Interest payments | (96,443) | ||
Foreign exchange movement | (33,925) | 16,697 | |
Notional amount ending balance | 2,830,922 | 2,600,450 | 2,259,459 |
Non current Portion of Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount beginning balance | 579,591 | 608,037 | |
New cost | 5,416 | (28,910) | |
Debt payments | (27,404) | ||
Foreign exchange movement | (7,687) | 464 | |
Notional amount ending balance | $ 549,916 | $ 579,591 | $ 608,037 |
Long-term debt - Schedule of _3
Long-term debt - Schedule of Changes in Liabilities Derived from Financing Activities (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [abstract] | |||
Interest expense | $ 212,294 | $ 183,332 | $ 172,630 |
Financial obligations | $ 21,018 |
Accounts Payable - Schedule of
Accounts Payable - Schedule of Accounts Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts payable details [abstract] | ||
Trade accounts payable | $ 424,717 | $ 122,696 |
Non-income taxes collected in advance | 226,006 | 300,435 |
Payroll taxes | 69,062 | 53,746 |
Other payables | 12,789 | 18,152 |
Total current | 732,574 | 495,029 |
Trade accounts payable | 4,276 | |
Social Charges | 2,851 | 5,084 |
Total non current | $ 7,127 | $ 5,084 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued expenses details [abstract] | ||
Operating expenses | $ 105,649 | $ 112,844 |
Vacation and other employee accruals | 12,187 | 36,144 |
Other accrued expenses | 3,058 | 37,669 |
Total | $ 120,894 | $ 186,657 |
Provisions for Return Conditi_3
Provisions for Return Conditions - Schedule of Changes in Provisions for Return Conditions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Provisions [line items] | ||||
Balances at beginning of year | $ 163,192 | |||
Current | $ 2,475 | $ 19,093 | ||
Non - current | 127,685 | 144,099 | ||
Total | 163,192 | $ 163,192 | 130,160 | 163,192 |
Balances at end of year | 130,160 | 163,192 | ||
Refunds Provision [member] | ||||
Disclosure of Provisions [line items] | ||||
Balances at beginning of year | 163,192 | 173,938 | ||
Provisions made | 43,705 | 811 | ||
Provisions reverse | (70,797) | |||
Total | 163,192 | 173,938 | $ 130,160 | $ 163,192 |
Provisions used | (5,940) | (11,557) | ||
Balances at end of year | $ 130,160 | $ 163,192 |
Provisions for Return Conditi_4
Provisions for Return Conditions - Schedule of Changes in Provisions for Return Conditions (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Provisions for return conditions details [abstract] | |
Extension of operating contracts | $ 14,650 |
Extension period of maintenance | $ 48,581 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Employee Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of employee benefits expense [abstract] | ||
Defined benefit plan | $ 144,862 | $ 174,346 |
Other benefits Short term | 9,084 | |
Other benefits Long term | 802 | |
Total | 154,748 | 174,346 |
Current | 44,663 | 38,706 |
Non - current | 110,085 | 135,640 |
Total | $ 154,748 | $ 174,346 |
Employee Benefits - Schedule _2
Employee Benefits - Schedule of Fixed Number of Beneficiaries (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefits Details [Abstract] | ||
Fair value of plan assets | $ (178,594) | $ (189,697) |
Present value of the obligation | 323,456 | 364,043 |
Total employee benefit liability | $ 144,862 | $ 174,346 |
Employee Benefits - Schedule _3
Employee Benefits - Schedule of Components of Net Benefit Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Net costs | $ 144,862 | $ 174,346 |
Defined Benefit Plan [member] | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 1,094 | 1,207 |
Interest cost on net benefit obligation | 17,375 | 18,490 |
Interest income on plan assets | (11,699) | (12,615) |
Net costs | 6,770 | 7,082 |
Other Benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 2,353 | 1,982 |
Interest cost on net benefit obligation | 3,706 | 3,984 |
Net costs | $ 6,059 | $ 5,966 |
Employee Benefits - Summary of
Employee Benefits - Summary of Changes In Present Value of Defined Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | $ 364,043 | |
Benefit obligation, ending balance | 323,456 | $ 364,043 |
Fair value of plan assets | (178,594) | (189,697) |
Total employee benefit liability | 144,862 | 174,346 |
Total | 144,862 | 174,346 |
Present Value of Defined Benefit Obligation [member] | ||
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | 364,043 | 320,890 |
Period cost | 24,528 | 25,663 |
Benefits paid by employer | (33,067) | (22,456) |
Remeasurements of defined benefit liability | (5,322) | 39,420 |
Other current | (342) | |
Other OCI | (1,215) | |
Exchange differences | (26,384) | 1,741 |
Benefit obligation, ending balance | 323,456 | 364,043 |
Fair value of plan assets | (178,594) | (189,697) |
Total employee benefit liability | 144,862 | 174,346 |
Current | 35,579 | 38,706 |
Non-current | 109,283 | 135,640 |
Total | 144,862 | 174,346 |
Defined Benefit Plan [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total employee benefit liability | 6,770 | 7,082 |
Total | 6,770 | 7,082 |
Defined Benefit Plan [member] | Present Value of Defined Benefit Obligation [member] | ||
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | 300,773 | 265,928 |
Period cost | 18,469 | 19,697 |
Benefits paid by employer | (29,879) | (20,058) |
Remeasurements of defined benefit liability | 850 | 34,848 |
Other OCI | (1,215) | |
Exchange differences | (21,727) | 1,573 |
Benefit obligation, ending balance | 268,486 | 300,773 |
Fair value of plan assets | (178,594) | (189,697) |
Total employee benefit liability | 89,892 | 111,076 |
Current | 32,205 | 34,141 |
Non-current | 57,687 | 76,935 |
Total | 89,892 | 111,076 |
Other Benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total employee benefit liability | 6,059 | 5,966 |
Total | 6,059 | 5,966 |
Other Benefits [member] | Present Value of Defined Benefit Obligation [member] | ||
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | 63,270 | 54,962 |
Period cost | 5,966 | |
Benefits paid by employer | (2,398) | |
Remeasurements of defined benefit liability | 4,572 | |
Exchange differences | 168 | |
Benefit obligation, ending balance | 63,270 | |
Total employee benefit liability | 63,270 | |
Current | 4,565 | |
Non-current | 58,705 | |
Total | 63,270 | |
Other benefits [Member] | Present Value of Defined Benefit Obligation [member] | ||
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | 63,270 | |
Period cost | 6,059 | |
Benefits paid by employer | (3,188) | |
Remeasurements of defined benefit liability | (6,172) | |
Other current | (342) | |
Exchange differences | (4,657) | |
Benefit obligation, ending balance | 54,970 | $ 63,270 |
Total employee benefit liability | 54,970 | |
Current | 3,374 | |
Non-current | 51,596 | |
Total | $ 54,970 |
Employee Benefits - Schedule _4
Employee Benefits - Schedule of Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Fair value of assets at December 31, 2017 | $ 174,346 | |
Fair value of assets, ending balance | 144,862 | $ 174,346 |
Defined Benefit Plan [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Fair value of assets at December 31, 2017 | 7,082 | |
Interest income on plan assets | 17,375 | 18,490 |
Fair value of assets, ending balance | 6,770 | 7,082 |
Defined Benefit Plan [member] | Plan Assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Fair value of assets at December 31, 2017 | 189,697 | 165,740 |
Interest income on plan assets | 11,699 | 12,615 |
Remeasurament of interest assumptions | (14,361) | 6,568 |
Employer contributions | 31,871 | 23,522 |
Benefits paid | (26,268) | (17,460) |
Adjustment in plan asset performance | (1,896) | |
Exchange differences | (14,044) | 608 |
Fair value of assets, ending balance | $ 178,594 | $ 189,697 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) | Mar. 11, 2014Segment | Nov. 06, 2013Segment | Nov. 05, 2013USD ($)Segment | Mar. 15, 2012Segment | Jan. 27, 2012 | Dec. 31, 2018USD ($)YearsBeneficiaryPayment | Dec. 31, 2017USD ($)YearsyrBeneficiary$ / sharesshares | Dec. 31, 2017COP ($)YearsyrBeneficiaryshares | Dec. 31, 2016USD ($)yr$ / shares | Dec. 31, 2016COP ($)yr | Dec. 31, 2017COP ($)shares |
Classes Of Employee Benefits Expense [line items] | |||||||||||
Amount recognized in other comprehensive income | $ (9,039,000) | $ (33,385,000) | $ 4,094,000 | ||||||||
Employee benefits | $ 35,579,000 | ||||||||||
Average duration of benefit plan obligation | Years | 10.13 | 10.79 | 10.79 | ||||||||
Number of beneficiaries | Beneficiary | 12 | 12 | 12 | ||||||||
Period of short term indicators | 1 year | ||||||||||
Number of payments to be deferred | Payment | 3 | ||||||||||
Expected term | Expected term of 0.10 to 2.42 years | Expected term of 0.10 to 2.42 years | Expected term of 0.60 to 3.35 years | Expected term of 0.60 to 3.35 years | |||||||
Time in averaging period | Time in averaging period of 0.08 years | Time in averaging period of 0.08 years | Time in averaging period of 0.08 years | Time in averaging period of 0.08 years | |||||||
Description of stock price | Stock price of COP$2,950 in the Colombian Stock Exchange and $8.03 in the New York Stock Exchange | Stock price of COP$2,950 in the Colombian Stock Exchange and $8.03 in the New York Stock Exchange | Stock price of COP$3,600 in the Colombian Stock Exchange and $9.64 in the New York Stock Exchange | Stock price of COP$3,600 in the Colombian Stock Exchange and $9.64 in the New York Stock Exchange | |||||||
Dividend yield | 1.69% | 1.69% | 1.39% | 1.39% | |||||||
Loss (income) from operating activities | $ 232,116,000 | $ 293,644,000 | $ 258,470,000 | ||||||||
Current liabilities | 2,179,504,000 | 1,911,039,000 | |||||||||
Stock price | $ 2,950,000 | $ 3,600,000 | |||||||||
Stock price per share | $ / shares | $ 8.03 | $ 9.64 | |||||||||
Time in average period | yr | 0.08 | 0.08 | 0.08 | 0.08 | |||||||
Other long-term employee benefits | (1,312,000) | ||||||||||
Share Based Plan [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Description of vesting requirements | Vest in equal tranches over a 4 year period, with the first tranche vesting on March 15, 2013, and subsequent tranches vesting on each subsequent anniversary date. Upon vesting, each tranche must be redeemed within 5 years and no later than March 2021. | The Share Based Plan participants have the option to redeem the vested portion of their respective rights for cash, with the payment being equal to the difference between the trading share price of the preferred shares of Avianca Holdings S.A., as reported by the Colombian Stock Exchange during the 30 calendar days immediately preceding redemption, and COP$5,000. | Redeemed 480,025 units, corresponding to the vesting periods March 15, 2012–2013 and March 15, 2013–2014. | Redeemed 480,025 units, corresponding to the vesting periods March 15, 2012–2013 and March 15, 2013–2014. | |||||||
Number of shares issued under plan | Segment | 18,026,158 | ||||||||||
Closing foreign exchange rate | Segment | 1,901.22 | ||||||||||
Number of shares redeemed | shares | 12,827,426 | 12,827,426 | |||||||||
Number of shares awarded | shares | 18,026,158 | 18,026,158 | |||||||||
Redemption of preferred shares | $ 5,000 | ||||||||||
Loss (income) from operating activities | $ (1,002,000) | $ 1,111,000 | |||||||||
Current liabilities | 1,115,000 | $ 140,000 | |||||||||
Additional expense recognized | $ 0 | ||||||||||
Share Based Plan [member] | American Depository Shares [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Share price | $ 15,000 | ||||||||||
Share Based Plan [member] | Beneficiaries [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Number of shares awarded | shares | 13,307,451 | 13,307,451 | |||||||||
Number of shares redeemed | shares | 480,025 | 480,025 | |||||||||
New Awards [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Number of shares issued under plan | Segment | 1,840,000 | 2,000,000 | |||||||||
New Awards [member] | Tranche 1 [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Strike price | $ 5,000,000 | $ 5,000,000 | |||||||||
New Awards [member] | Tranche 2 [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Strike price | $ 15,000 | 15,000 | |||||||||
New Awards [member] | Tranche 3 [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Strike price | 15,000 | 15,000 | |||||||||
New Awards [member] | Tranche 4 [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Strike price | $ 15,000 | $ 15,000 | |||||||||
Bottom of Range [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Risk free rate | 1.80% | 1.80% | 0.96% | 0.96% | |||||||
Volatility | 19.58% | 19.58% | 44.20% | 44.20% | |||||||
Expected term | 1 month 6 days | 1 month 6 days | 7 months 6 days | 7 months 6 days | |||||||
Top of Range [member] | |||||||||||
Classes Of Employee Benefits Expense [line items] | |||||||||||
Risk free rate | 4.43% | 4.43% | 5.61% | 5.61% | |||||||
Volatility | 48.87% | 48.87% | 56.57% | 56.57% | |||||||
Expected term | 2 years 5 months 1 day | 2 years 5 months 1 day | 3 years 4 months 6 days | 3 years 4 months 6 days |
Employee Benefits - Schedule _5
Employee Benefits - Schedule of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Amount recognized in other comprehensive income | $ (9,039) | $ (33,385) | $ 4,094 |
Present Value of Defined Benefit Obligation [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Actuarial gains recognized in other comprehensive income | 5,322 | (38,205) | 2,383 |
Return on plan assets adjustment | (14,361) | 4,672 | 1,711 |
Adjustments for translation | 148 | ||
Amount recognized in other comprehensive income | $ (9,039) | $ (33,385) | $ 4,094 |
Employee Benefits - Schedule _6
Employee Benefits - Schedule of Determining Pension and Post-employment Medical Benefit (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate on all plans | 7.25% | 6.75% |
Price inflation | 3.00% | 3.09% |
Future pension increase | 3.18% | 3.18% |
Healthcare cost increase | 4.50% | 4.50% |
Ticket cost increase | 3.00% | 3.00% |
Education cost increase | 3.00% | 3.00% |
Pilots [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Actuarial assumptions | 4.00% | 4.00% |
Cabin Crew [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Actuarial assumptions | 4.00% | 4.00% |
Other Employees [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Actuarial assumptions | 4.00% | 4.00% |
Employee Benefits - Schedule _7
Employee Benefits - Schedule of Categories of Plan Assets as a Percentage of Fair Value (Detail) - Plan Assets [member] | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Securities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 31.00% | 22.04% |
Debt Securities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 21.00% | 33.73% |
Domestic Corporate Bonds [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 32.00% | 35.30% |
Foreign Government/Corporate Bonds [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 10.00% | 6.61% |
Other [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 6.00% | 2.30% |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Expected Payments or Contributions to Defined Benefit Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Expected payments | $ 259,256 | $ 263,436 |
Year one [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 26,773 | 39,074 |
Year two [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 24,798 | 23,733 |
Year three [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 24,309 | 24,285 |
Year four [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 24,781 | 23,705 |
Year five [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 25,626 | 24,699 |
Later than five years and not later than ten years [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | $ 132,969 | $ 127,940 |
Employee Benefits - Schedule _8
Employee Benefits - Schedule of Change in the Respective Assumptions (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Discount rate [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase decrease in defined benefit obligation | $ (15,675) |
Increase decrease in defined benefit obligation | 17,226 |
Pension increase [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase decrease in defined benefit obligation | 14,100 |
Increase decrease in defined benefit obligation | (12,978) |
Actuarial assumption of mortality rates [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase decrease in defined benefit obligation | (7,096) |
Increase decrease in defined benefit obligation | $ 17,533 |
Employee Benefits - Schedule _9
Employee Benefits - Schedule of Award (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Excluding 1,840,000 New Awards [member] | March 15, 2013 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Mar. 15, 2013 |
Percentage vesting | 25.00% |
Redemption period | From March 16, 2013 through March 15, 2018 |
Excluding 1,840,000 New Awards [member] | March 15, 2014 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Mar. 15, 2014 |
Percentage vesting | 25.00% |
Redemption period | From March 16, 2014 through March 15, 2019 |
Excluding 1,840,000 New Awards [member] | March 15, 2015 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Mar. 15, 2015 |
Percentage vesting | 25.00% |
Redemption period | From March 16, 2015 through March 15, 2020 |
Excluding 1,840,000 New Awards [member] | March 15, 2016 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Mar. 15, 2016 |
Percentage vesting | 25.00% |
Redemption period | From March 16, 2016 through March 15, 2021 |
Including 1,840,000 New Awards [member] | November 6, 2014 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Nov. 6, 2014 |
Percentage vesting | 25.00% |
Redemption period | From November 7, 2014 through November 6, 2019 |
Including 1,840,000 New Awards [member] | November 6, 2015 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Nov. 6, 2015 |
Percentage vesting | 25.00% |
Redemption period | From November 7, 2015 through November 6, 2020 |
Including 1,840,000 New Awards [member] | November 6, 2016 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Nov. 6, 2016 |
Percentage vesting | 25.00% |
Redemption period | From November 7, 2016 through November 6, 2021 |
Including 1,840,000 New Awards [member] | November 6, 2017 [member] | |
Disclosure of terms of new awards [line items] | |
Vesting dates | Nov. 6, 2017 |
Percentage vesting | 25.00% |
Redemption period | From November 7, 2017 through November 6, 2022 |
Air Traffic Liability and Fre_3
Air Traffic Liability and Frequent Flyer Deferred Revenue - Schedule of Air Traffic Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Air traffic liability tables [abstract] | ||
Advance ticket sales | $ 424,579 | $ 454,018 |
Miles deferred revenue | 186,378 | 85,207 |
Current | 610,957 | 539,225 |
Miles deferred revenue | 234,260 | 104,786 |
Non-current | $ 234,260 | $ 104,786 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other liabilities details [abstract] | ||
Derivative instruments | $ (129) | $ 137 |
Deferred income | 71,649 | 24,471 |
Other | 587 | |
Total | 72,107 | 24,608 |
Current | 3,861 | 9,415 |
Non-current | 68,246 | 15,193 |
Total | $ 72,107 | $ 24,608 |
Other Liabilities - Schedule _2
Other Liabilities - Schedule of Other Liabilities (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Other liabilities details [abstract] | |
Deferred profits with sale and leaseback transactions | $ 53,990 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Nov. 28, 2014 | Nov. 05, 2013 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of transactions between related parties [line items] | ||||
Proceeds from issuing shares | $ 183,553,000,000 | |||
Net of issuance costs | $ 3,956,000 | |||
Preferred dividends per share | $ 50 | |||
Dividend Payment description | Holders of the preferred shares and ADSs are entitled to receive a minimum dividend to be paid preferentially over holders of common shares, so long as dividends have been declared by our shareholders at their annual meeting. If no dividends are declared, none of the Company’s shareholders will be entitled to any dividends. If dividends are declared and the Company’s annual distributable profits are sufficient to pay a dividend per share of at least COP 50 per share to all the Company’s holders of preferred and common shares, such profits will be paid equally with respect to the Company’s preferred and common shares. However, if the Company’s annual distributable profits are insufficient to pay a dividend of at least COP 50 per share to all our holders of preferred and common shares, a minimum preferred dividend of COP 50 per share will be distributed pro rata to the holders of the Company’s preferred shares, and any excess above such minimum preferred dividend will be distributed solely to holders of our common shares. | |||
Preferred stock | $ 42,023,000 | $ 42,023,000 | ||
Share nominal value | $ 0.125 | |||
American Depository Shares [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Number of shares issued | 12,500,000 | |||
Proceeds from issuing shares | $ 0 | |||
Conversion of stock converted | 75,599,997 | |||
Conversion of stock converted | 331,187,285 | |||
Preference shares [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Number of shares issued | 8 | |||
Conversion of stock converted | 5,000,000 | 14,734,910 | ||
Conversion of stock converted | 336,187,285 | 336,187,285 | 336,187,285 | |
Preferred stock | $ 340,507,917 | |||
Repurchase of shares | 4,320,632 | |||
Common Shares [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Conversion of stock converted | 5,000,000 | |||
Conversion of stock converted | 660,800,003 | 665,800,003 | 660,800,003 | 660,800,003 |
Equity - Schedule of Authorized
Equity - Schedule of Authorized, Issued and Paid Shares (Detail) - shares | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 28, 2014 | Nov. 05, 2013 |
Disclosure of classes of share capital [line items] | ||||
Authorized shares | 4,000,000,000 | 4,000,000,000 | ||
Common Shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Issued and paid common stock | 660,800,003 | 660,800,003 | 660,800,003 | 665,800,003 |
Preference shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Issued and paid common stock | 336,187,285 | 336,187,285 | 336,187,285 |
Equity - Schedule of Movement o
Equity - Schedule of Movement of the Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [line items] | |||
Beginning balance | $ (347) | $ 7,077 | |
Other comprehensive Income (loss) for the Period | (43,555) | (7,424) | $ 35,263 |
Ending balance | (43,902) | (347) | |
Cash Flow Hedges [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 6,507 | 122 | |
Other comprehensive Income (loss) for the Period | (13,701) | 6,385 | |
Ending balance | (7,194) | 6,507 | |
Fair Value Reserves [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | (681) | (414) | |
Other comprehensive Income (loss) for the Period | (67) | (267) | |
Ending balance | (748) | (681) | |
Reserves Relating to Actuarial Gains and Losses [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | (65,138) | (31,753) | |
Other comprehensive Income (loss) for the Period | (9,039) | (33,385) | |
Ending balance | (74,177) | (65,138) | |
Income Tax Reserves Relating to Fair Value Reserves [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 3 | (3,558) | |
Other comprehensive Income (loss) for the Period | 3,558 | ||
Ending balance | 3 | ||
Income Tax Reserves Relating to Reserve Actuarial Gains and Losses [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 125 | 15,143 | |
Other comprehensive Income (loss) for the Period | (39) | (15,018) | |
Ending balance | 86 | 125 | |
Revaluation of Administrative Property [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 58,382 | 27,365 | |
Other comprehensive Income (loss) for the Period | (20,448) | 31,017 | |
Ending balance | 37,934 | 58,382 | |
Total OCI [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | (802) | 6,908 | |
Other comprehensive Income (loss) for the Period | (43,294) | (7,710) | |
Ending balance | (44,096) | (802) | |
Non-controlling interests [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 455 | 169 | |
Other comprehensive Income (loss) for the Period | (261) | 286 | |
Ending balance | $ 194 | 455 | |
Income Tax Reserves Relating to Fair Value Reserves Two [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 3 | ||
Ending balance | $ 3 |
Equity - Schedule of Reclassifi
Equity - Schedule of Reclassification, Without Considering Items Remaining in OCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | $ (43,555) | $ (7,424) | $ 35,263 |
Cash Flow Hedges [member] | |||
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | (13,701) | 6,385 | |
Fair Value Reserves [member] | |||
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | (67) | (267) | |
Reclassification During Year to Profit or Loss [member] | Cash Flow Hedges [member] | |||
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | (17,179) | 10,309 | |
Effective Valuation of Cash Flow Hedged [member] | Cash Flow Hedges [member] | |||
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | 3,478 | (3,924) | |
Valuations of Available For Sale Investments [member] | Fair Value Reserves [member] | |||
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | $ (67) | $ (267) |
Non-Controlling Interests - Sch
Non-Controlling Interests - Schedule of Non-controlling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of noncontrolling interests [line items] | |||
Non-current assets | $ 6,002,719 | $ 5,590,380 | |
Current liabilities | (2,179,504) | (1,911,039) | |
Non-current liabilities | (3,946,678) | (3,610,657) | |
Net assets | 7,118,643 | 6,861,396 | |
(Loss) profit | 25,946 | 33,795 | $ 27,206 |
Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
Current assets | 116,902 | 119,900 | |
Non-current assets | 49,544 | 56,804 | |
Current liabilities | (151,817) | (123,166) | |
Non-current liabilities | (192,622) | (129,488) | |
Net assets | (177,993) | (75,950) | |
(Loss) profit | 25,946 | 33,795 | |
Other comprehensive income | $ (261) | $ 455 | |
LifeMiles Ltd. [Member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 30.00% | 30.00% | |
Current assets | $ 50,344 | $ 47,603 | |
Non-current assets | 24,337 | 27,039 | |
Current liabilities | (98,034) | (67,815) | |
Non-current liabilities | (160,816) | (95,939) | |
Net assets | (184,169) | (89,112) | |
(Loss) profit | 24,321 | 30,738 | |
Other comprehensive income | $ (94) | $ 78 | |
Taca International Airlines S.A. [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 3.17% | 3.17% | |
Current assets | $ 28,269 | $ 24,269 | |
Non-current assets | 8,932 | 10,720 | |
Current liabilities | (18,861) | (14,915) | |
Non-current liabilities | (26,210) | (24,054) | |
Net assets | (7,870) | (3,980) | |
(Loss) profit | (3,684) | (3,980) | |
Other comprehensive income | $ (158) | $ 358 | |
Aerotaxisla Costena SA [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 31.92% | 31.92% | |
Current assets | $ 2,597 | $ 2,971 | |
Non-current assets | 687 | 777 | |
Current liabilities | (1,268) | (1,232) | |
Net assets | 2,016 | 2,516 | |
(Loss) profit | $ (499) | $ 2,364 | |
Turbo Prop Leasing Corp [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 32.00% | 32.00% | |
Current assets | $ 4,155 | $ 7,095 | |
Non-current assets | 7,615 | 7,908 | |
Current liabilities | (2,658) | (7,317) | |
Non-current liabilities | (3,995) | (3,257) | |
Net assets | 5,117 | 4,429 | |
(Loss) profit | $ 1,283 | $ 674 | |
Avianca Costa Rica S.A. [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 7.58% | 7.58% | |
Current assets | $ 25,818 | $ 30,581 | |
Non-current assets | 5,444 | 6,092 | |
Current liabilities | (27,515) | (29,007) | |
Non-current liabilities | (827) | (5,470) | |
Net assets | 2,920 | 2,196 | |
(Loss) profit | 841 | 2,106 | |
Other Individually Immaterial Subsidiaries [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
Current assets | 5,719 | 7,381 | |
Non-current assets | 2,529 | 4,268 | |
Current liabilities | (3,481) | (2,880) | |
Non-current liabilities | (774) | (768) | |
Net assets | 3,993 | 8,001 | |
(Loss) profit | 3,683 | 1,893 | |
Other comprehensive income | $ (9) | $ 19 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Calculation of Basic (Loss) Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [line items] | |||
Net profit (loss) attributable to Avianca Holdings S.A. | $ (24,803) | $ 48,237 | $ 16,980 |
Common Shares [member] | |||
Weighted average number of shares | |||
Common stock | 660,800,000 | 660,800,000 | |
Earnings per share | |||
Common stock | $ (0.025) | $ 0.050 | |
Preference shares [member] | |||
Weighted average number of shares | |||
Common stock | 336,187,000 | 336,187,000 | |
Earnings per share | |||
Common stock | $ (0.025) | $ 0.050 |
Operating Revenue - Additional
Operating Revenue - Additional Information (Detail) - Customers | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 100.00% | 100.00% | |
Major Customers [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Major customers information | The Group had no major customers which represented more than 10% of revenues in 2018 and 2017. | ||
Number of customers which represented more than 10% of revenues | 0 | 0 | |
Major Customers [member] | Bottom of Range [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 10.00% | 10.00% |
Operating Revenue - Summary of
Operating Revenue - Summary of Information by Type of Service Rendered (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other | 4.00% | 8.00% | |
Total operating revenues | 100.00% | 100.00% | |
Passenger | $ 4,074,391 | $ 3,550,160 | $ 3,285,217 |
Cargo and mail | 816,439 | 891,524 | 853,121 |
Total | 4,890,830 | 4,441,684 | 4,138,338 |
Other | 197,663 | 340,545 | 297,247 |
Total operating revenues | 4,890,830 | 4,441,684 | 4,138,338 |
Domestic [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 2,001,825 | 1,900,627 | 1,752,001 |
Cargo and mail | 303,343 | 279,666 | 264,432 |
Total | $ 2,305,168 | 2,180,293 | $ 2,016,433 |
Passenger | 41.00% | 42.00% | |
Cargo and mail | 6.00% | 6.00% | |
Total | 47.00% | 48.00% | |
International [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | $ 2,072,566 | 1,649,533 | $ 1,533,216 |
Cargo and mail | 315,433 | 271,313 | 291,442 |
Total | $ 2,387,999 | 1,920,846 | $ 1,824,658 |
Passenger | 42.00% | 37.00% | |
Cargo and mail | 6.00% | 7.00% | |
Total | 49.00% | 44.00% | |
Year on Year Variation [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other | $ (142,882) | 43,298 | |
Total operating revenues | 449,146 | 303,346 | |
Year on Year Variation [member] | Domestic [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 101,198 | 148,626 | |
Cargo and mail | 23,677 | 15,234 | |
Total | 124,875 | 163,860 | |
Year on Year Variation [member] | International [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 423,033 | 116,317 | |
Cargo and mail | 44,120 | (20,129) | |
Total | $ 467,153 | $ 96,188 | |
Type one [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other | 9.00% | ||
Total operating revenues | 100.00% | ||
Type one [member] | Domestic [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 42.00% | ||
Cargo and mail | 6.00% | ||
Total | 48.00% | ||
Type one [member] | International [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 37.00% | ||
Cargo and mail | 6.00% | ||
Total | 43.00% | ||
Type two [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other | 9.00% | ||
Total operating revenues | 100.00% | ||
Type two [member] | Domestic [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 42.00% | ||
Cargo and mail | 6.00% | ||
Total | 48.00% | ||
Type two [member] | International [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 37.00% | ||
Cargo and mail | 6.00% | ||
Total | 43.00% |
Operating Revenue - Summary o_2
Operating Revenue - Summary of Other Operating Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | $ 197,663 | $ 340,553 | $ 297,247 |
Frequent Flyer Program [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 46,376 | 178,841 | 154,245 |
Ground Operations [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 23,592 | 20,172 | 21,053 |
Leases [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 22,610 | 22,232 | 28,295 |
Maintenance [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 58,032 | 11,639 | 7,696 |
Interline [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 2,025 | 1,900 | 3,859 |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | $ 45,028 | $ 105,769 | $ 82,099 |
Operating Revenue - Summary O_3
Operating Revenue - Summary Of Significant Changes In Contract Assets And Contract Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of changes in trade receivables, contract assets and contract liabilities [abstract] | ||
Net account receivable trade | $ 245,756 | $ 177,321 |
Prepaid compensations clients | 37,130 | 29,754 |
Air traffic liability | (424,579) | (454,018) |
Frequent flyer deferred revenue | $ (420,638) | $ (189,993) |
Derivatives Recognized as Hed_3
Derivatives Recognized as Hedging Instruments - Summary of Financial Instruments Recognized as Hedging Instruments at Fair Value Though Other Comprehensive Income (Detail) - Cash Flow Hedges [member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | $ 7,456 | $ 23,539 |
Fuel Price [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | 2,566 | 20,549 |
Interest Rate [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | $ 4,890 | $ 2,990 |
Derivatives Recognized as Hed_4
Derivatives Recognized as Hedging Instruments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)gal | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | |||
Effective portion of changes in fair value of hedging instruments | $ | $ (13,701) | $ 6,385 | $ 21,712 |
Jetfuel [member] | |||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | |||
Notional value of derivatives recognized as hedging instruments | gal | 92,560,000 |
Derivatives Recognized as Hed_5
Derivatives Recognized as Hedging Instruments - Summary of Periods in which Cash Flows Associated with Cash Flow Hedges are Expected to Occur and Fair Values of Related Hedging Instruments (Detail) - Cash Flow Hedges [member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | $ 7,456 | $ 23,539 |
Fuel Price [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | 2,566 | 20,549 |
Interest Rate [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | 4,890 | 2,990 |
Later Than One Month and Not Later Than Twelve Months [member] | Fuel Price [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | 2,566 | 20,549 |
Later Than One Month and Not Later Than Twelve Months [member] | Interest Rate [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | 112 | |
Later Than Twelve Months and Not Later Than Twenty Four Months [member] | Interest Rate [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Financial instruments at fair value though other comprehensive income | $ 4,778 | $ 2,990 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivative Financial Instruments at Fair Value through Profit or Loss (Detail) - Derivatives Not Designated as Hedges - Liabilities [member] - Derivative Contracts of Interest Rate [member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value through profit or loss | $ (17) | $ 137 |
Financial liabilities at fair value through profit or loss | $ (17) | $ 137 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Disclosures of Fair Value Measurement Hierarchy for Assets (Detail) - Recurring Fair Value Measurement [member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Investments [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | $ 67,306 | |
Assets Plan [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 178,594 | $ 189,697 |
Classification of Assets as Held for Sale [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 55 | |
Derivative Instruments Assets [member] | Aircraft Fuel Hedges [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 2,566 | |
Derivative Instruments Assets [member] | Interest Rate Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 4,890 | 20,549 |
Revalued Administrative Property [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 110,182 | 147,663 |
Available for Sale Securities [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 2,990 | |
Significant Observable Inputs (Level 2) [member] | Assets Investments [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 67,306 | |
Significant Observable Inputs (Level 2) [member] | Assets Plan [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 178,594 | 189,697 |
Significant Observable Inputs (Level 2) [member] | Classification of Assets as Held for Sale [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 55 | |
Significant Observable Inputs (Level 2) [member] | Derivative Instruments Assets [member] | Aircraft Fuel Hedges [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 2,566 | |
Significant Observable Inputs (Level 2) [member] | Derivative Instruments Assets [member] | Interest Rate Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 4,890 | 20,549 |
Significant Observable Inputs (Level 2) [member] | Available for Sale Securities [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 2,990 | |
Significant Unobservable Inputs (Level 3) [member] | Revalued Administrative Property [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | $ 110,182 | $ 147,663 |
Fair Value Measurements - Qua_2
Fair Value Measurements - Quantitative Disclosures of Fair Value Measurement Hierarchy for Liabilities (Detail) - Recurring Fair Value Measurement [member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments [member] | Foreign Currency Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | $ (17) | |
Derivative Instruments [member] | Interest Rate Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | $ 137 | |
Short-term Borrowings and Long-term Debt [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | 4,022,707 | 3,587,841 |
Frequent Flyer Liability [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | 191,157 | |
Significant Observable Inputs (Level 2) [member] | Derivative Instruments [member] | Foreign Currency Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | (17) | |
Significant Observable Inputs (Level 2) [member] | Derivative Instruments [member] | Interest Rate Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | 137 | |
Significant Observable Inputs (Level 2) [member] | Short-term Borrowings and Long-term Debt [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | $ 4,022,707 | 3,587,841 |
Significant Observable Inputs (Level 2) [member] | Frequent Flyer Liability [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | $ 191,157 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Breakdown of Total Gains (Losses) Recognised in Respect of Level 3 Fair Values (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of unrealized fair value losses (gains) [line items] | |||
Total gain included in OCI | $ (20,448) | $ 31,017 | $ 8,971 |
Significant Unobservable Inputs (Level 3) [member] | |||
Disclosure of unrealized fair value losses (gains) [line items] | |||
Change in fair value (unrealized) | (20,448) | 31,017 | |
Change in fair value (realized) | 0 | 0 | |
Total gain included in OCI | $ (20,448) | $ 31,017 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Valuation Technique Used in Measuring the Fair Value (Detail) - Market approach [member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of significant unobservable inputs used in fair value measurement of equity [line items] | ||
Occupancy rate | 87.00% | 82.00% |
Percentage of GDP from construction | 1.00% | 5.00% |
Appreciation or depreciation of the Colombian Peso against the US Dollar | (8.91%) | 0.56% |
Bottom of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of equity [line items] | ||
Expected Market rental growth | 1.00% | 3.00% |
Top of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of equity [line items] | ||
Expected Market rental growth | 2.00% | 4.00% |
Income Tax Expense - Summary of
Income Tax Expense - Summary of assets and liabilities for taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of income tax expense [abstract] | ||
Current income tax - assets | $ 152,601 | $ 78,434 |
Current VAT-assets | 72,857 | 33,318 |
Other taxex-current | 6,456 | 2,609 |
Total current tax - assets | 231,914 | 114,361 |
Non Current income tax - assets | 19 | 136,301 |
Total tax - assets | 231,933 | 250,662 |
Current income tax - liabilities | $ (26,702) | $ (31,935) |
Income Tax Expense - Schedule o
Income Tax Expense - Schedule of components of income tax expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax: | |||
Current income tax charge | $ 24,208 | $ 32,934 | $ 28,114 |
Adjustment in respect of current income tax of previous year | 2,943 | 2,225 | (666) |
Deferred tax expense: | |||
Relating to origination and reversal of temporary differences | (6,938) | (15,050) | 6,642 |
Income tax expense reported in the income statement | 20,213 | 20,109 | 34,090 |
Hedging reserves | 3,558 | (3,558) | |
Income tax | (39) | (15,018) | 4,289 |
Income tax charged directly to other comprehensive income | $ (39) | $ (11,460) | $ 731 |
Income Tax Expense - Additional
Income Tax Expense - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Income Tax Expense [line items] | |||
Income tax payable | 37.00% | 40.00% | 40.00% |
Tax overcharge | 4.00% | 6.00% | |
Tax effect of tax losses obatain period | 12 taxable periods | ||
Excess of presumptive income compensated period | 5 taxable periods | ||
Tax rate for occasional income | 10.00% | ||
Percentage of taxable fees and contributions | 100.00% | ||
Percentage of tax used for economic activity | 50.00% | ||
Percentage of untaxed dividends | 7.50% | ||
Percentage of marginal dividend rate | 15.00% | ||
Dividends | $ 300 | ||
Percentage of early termination payment | 100.00% | ||
Percentage of extraordinary termination payment | 50.00% | ||
Temporary difference recognize deferred tax | $ 60,000 | $ 61,000 | |
Tax loss carryforwards | 416,993 | 141,878 | |
Excess of presumptive income tax | 9,766 | 10,635 | |
Tax losses | $ 127,707 | 48,955 | |
Ecuador [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Capital gain tax rate | 28.00% | ||
Costa Rica [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Capital gain tax rate | 30.00% | ||
Mexico [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Capital gain tax rate | 30.00% | ||
El Salvador [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Capital gain tax rate | 30.00% | ||
Peru [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Capital gain tax rate | 30.00% | ||
Guatemala [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Capital gain tax rate | 25.00% | ||
Colombia [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Tax loss carryforwards | $ 352,863 | $ 102,611 | |
Dividends [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Non taxed dividend | 7.50% | ||
Mega-Inversions [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Tax stability settlement term | 20 years | ||
Colombia in property, plant and equipment [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Number of direct jobs | 250 | ||
Investments | $ 30,000 | ||
Income tax payable | 27.00% | ||
Depreciation of fixed assets for a minimum term | 2 years | ||
Tax year 2019 [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Dividends | $ 10,281,000 | ||
Tax year 2019 [member] | Dividends [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax payable | 33.00% | ||
Tax year 2019 [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax and corporate complementary rates | 33.00% | ||
Presumptive tax rate | 1.50% | ||
Tax year 2019 [member] | Colombia in property, plant and equipment [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Investments | $ 1,028,100,000 | ||
Tax year 2020 [member] | Dividends [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax payable | 32.00% | ||
Tax year 2020 [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax and corporate complementary rates | 32.00% | ||
Presumptive tax rate | 1.50% | ||
Tax year 2021 [member] | Dividends [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax payable | 31.00% | ||
Tax year 2021 [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax and corporate complementary rates | 31.00% | ||
Tax year 2022 [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Percentage of tax discount | 100.00% | ||
Tax year 2022 [member] | Dividends [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax payable | 30.00% | ||
Tax year 2022 [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax and corporate complementary rates | 30.00% | ||
Tax year 2018 [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Presumptive tax rate | 3.50% | ||
Tax year 2020 and thereafter [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Presumptive tax rate | 0.00% | ||
Bottom of Range [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Percentage of income tax based on net equity | 3.50% | 3.50% |
Income Tax Expense - Schedule_2
Income Tax Expense - Schedule of reconciliation between tax expense and the product (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of income tax expense [abstract] | |||
Income tax at Colombian statutory rate | 37.00% | 40.00% | 40.00% |
Tax credit | 0.00% | 0.00% | (5.74%) |
Productive fixed assets special deduction | (267.99%) | (44.91%) | (22.10%) |
Permanent differences | (96.90%) | 138.54% | (346.48%) |
Non-deductible taxes | 15.98% | 3.06% | 15.01% |
Effect of tax exemptions and tax rates in foreign jurisdictions | 253.27% | (118.26%) | 71.56% |
Non recognized deferred tax assets | 402.02% | (141.93%) | 248.77% |
Losses of tax reversion | 0.00% | 184.69% | 0.00% |
Exchange rate differences | (304.23%) | (48.56%) | 107.20% |
Prior year expenses | (5.83%) | 0.00% | 0.00% |
Changes in tax rates | 61.33% | (2.24%) | (51.58%) |
Other | 0.00% | 9.30% | (13.10%) |
Effective tax rate | 94.65% | 19.69% | 43.55% |
Accounting profit after income tax | $ 1,143 | $ 82,032 | $ 44,186 |
Total, income tax expense | 20,213 | 20,109 | 34,090 |
Profit before income tax | 21,356 | 102,141 | 78,276 |
Income tax at Colombian statutory rate | 7,902 | 40,856 | 31,311 |
Tax credit (1) | (4,493) | ||
Productive fixed assets special deduction | (57,229) | (45,868) | (17,299) |
Permanent differences (2) | (20,694) | 141,508 | (271,209) |
Non-deductible taxes | 3,413 | 3,124 | 11,749 |
Effect of tax exemptions and tax rates in foreign jurisdictions | 54,086 | (120,797) | 56,014 |
Non recognized deferred tax assets | 85,852 | (144,965) | 194,732 |
Losses of tax reversion | 188,640 | ||
Exchange rate differences | (64,969) | (49,595) | 83,916 |
Prior year expenses | (1,245) | ||
Changes in tax rates | $ 13,097 | (2,292) | (40,377) |
Other | $ 9,498 | $ (10,254) |
Income Tax Expense - Addition_2
Income Tax Expense - Additional Information (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of income tax expense [abstract] | |
Projected tax income generated for the next 5 years | $ 0 |
Income Tax Expense - Summary _2
Income Tax Expense - Summary of Analysis of the Company's Deferred Tax Assets and Liabilities - Consolidated Statement of Financial Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | $ (6,136) | $ (155) | $ 14,507 |
Accounts payables [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (88,920) | ||
Deposits and other assets [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 11,481 | 24,379 | |
Aircraft maintenance [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 3,573 | 43,973 | |
Pension liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 3,089 | (525) | |
Provisions [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (19,037) | (103,830) | |
Loss Carry Forwards [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (603) | (8,670) | |
Non monetary items [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 49,343 | 29,231 | |
Intangible asset [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 8,220 | 11,534 | |
Other assets and liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 32,896 | $ 2,703 | |
Variation [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (5,981) | ||
Variation [member] | Accounts payables [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (88,920) | ||
Variation [member] | Deposits and other assets [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (12,898) | ||
Variation [member] | Aircraft maintenance [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (40,400) | ||
Variation [member] | Pension liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (3,614) | ||
Variation [member] | Provisions [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 84,793 | ||
Variation [member] | Loss Carry Forwards [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 8,067 | ||
Variation [member] | Non monetary items [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 20,112 | ||
Variation [member] | Intangible asset [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (3,314) | ||
Variation [member] | Other assets and liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | $ 30,193 |
Income Tax Expense - Summary _3
Income Tax Expense - Summary of Analysis of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred tax assets and liabilities [abstract] | |||
Deferred tax assets | $ (1,396) | ||
Deferred tax liabilities | 7,377 | ||
Deferred tax assets (liabilities) net | 5,891 | ||
Deferred tax assets | 24,573 | $ 25,969 | |
Deferred tax liabilities | 18,437 | 25,814 | |
Deferred tax assets (liabilities) net | $ 6,136 | $ 155 | $ (14,507) |
Income Tax Expense - Reconcilia
Income Tax Expense - Reconciliation of Deferred Tax Assets Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax assets and liabilities [abstract] | ||
Beginning balance | $ 155 | $ (14,507) |
Tax income during the period recognized in profit or loss | 6,938 | 15,050 |
Tax income during the period recognized in other comprehensive income | (40) | (155) |
Deferred taxes acquired in business combinations | 0 | 0 |
Exchange differences | (917) | (233) |
Ending balance | $ 6,136 | $ 155 |
Provisions for legal claims - S
Provisions for legal claims - Schedule of provisions for litigation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | ||
Balances at beginning of year | $ 163,192 | |
Provisions reverse | (3,203) | $ (4,858) |
Balances at end of year | 130,160 | 163,192 |
Legal proceedings provision [member] | ||
Disclosure of other provisions [line items] | ||
Balances at beginning of year | 11,720 | 18,516 |
Provisions constituted | 2,034 | 14,491 |
Provisions reverse | (5,007) | |
Provisions used | (938) | (21,287) |
Balances at end of year | $ 7,809 | $ 11,720 |
Provisions for legal claims - A
Provisions for legal claims - Additional Information (Detail) $ in Thousands | Sep. 20, 2017Flights | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Disclosure of other provisions [line items] | |||
Contingent obligations | $ 123,216 | $ 119,573 | |
Unsettled contingent obligations | 56,210 | 26,275 | |
Cease profit activities, days | 51 days | ||
Number of flight cancellations | Flights | 14,337 | ||
Number of flight cancellations, percentage | 50.00% | ||
Labor [member] | |||
Disclosure of other provisions [line items] | |||
Contingent obligations | 3,695 | 5,062 | |
Consumer protection [member] | |||
Disclosure of other provisions [line items] | |||
Contingent obligations | 1,133 | 1,704 | |
Civil [member] | |||
Disclosure of other provisions [line items] | |||
Contingent obligations | $ 795 | $ 1,857 |
Future Aircraft Leases Paymen_3
Future Aircraft Leases Payments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018AircraftEngine | Dec. 31, 2017Aircraft | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of aircraft | 196 | 191 |
Aircraft 124 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of aircraft | 124 | |
Aircraft 54 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of aircraft | 54 | |
Average lease term | 50 months | |
Aircraft Engine 6 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of engines | Engine | 6 |
Future Aircraft Leases Paymen_4
Future Aircraft Leases Payments - Schedule of Aircraft Under Operating Leases (Detail) - Aircraft 124 [member] $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | $ 2,396,748 |
Year one [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | 316,334 |
Between one and five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | 1,117,208 |
More than five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | $ 963,206 |
Future Aircraft Leases Paymen_5
Future Aircraft Leases Payments - Schedule of Seven Spare Engines Under Operating Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Aircraft 54 [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | $ 1,100,693 |
Aircraft 54 [member] | Year one [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 245,579 |
Aircraft 54 [member] | Between one and five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 668,403 |
Aircraft 54 [member] | More than five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 186,711 |
Aircraft Engine 6 [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 48,022 |
Aircraft Engine 6 [member] | Year one [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 10,131 |
Aircraft Engine 6 [member] | Between one and five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 28,513 |
Aircraft Engine 6 [member] | More than five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | $ 9,378 |
Future Aircraft Leases Paymen_6
Future Aircraft Leases Payments - Schedule of Future Minimum Income from Lease Agreements (Detail) - USD ($) $ in Thousands | Feb. 28, 2019 | Dec. 31, 2018 |
Termination of operative lease [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum income | $ 21,635 | |
Year one [member] | Termination of operative lease [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum income | 15,142 | |
Between one and five years [member] | Termination of operative lease [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum income | $ 6,493 | |
Aircraft Under Operating Lease [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum income | $ 99,705 | |
Aircraft Under Operating Lease [member] | Year one [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum income | 26,442 | |
Aircraft Under Operating Lease [member] | Between one and five years [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum income | 52,543 | |
Aircraft Under Operating Lease [member] | More than five years [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum income | $ 20,720 |
Future Aircraft Leases Paymen_7
Future Aircraft Leases Payments - Expenses of Amount Recognized Payments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||
Leases minimum payments | $ 267,708 | $ 278,772 | $ 314,493 |
Acquisition of aircraft - Sched
Acquisition of aircraft - Schedule of future commitments related to aircraft acquisition (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Airbus Family A 320 [member] | |
Disclosure of fair value measurement of assets [line items] | |
Order | 111 |
Delivery | 2019-2028 |
Boeing 787-89 [member] | |
Disclosure of fair value measurement of assets [line items] | |
Order | 3 |
Options | 9 |
Delivery | 2019 |
Engines [member] | |
Disclosure of fair value measurement of assets [line items] | |
Order | 3 |
Delivery | 2019-2020 |
Acquisition of aircraft - Addit
Acquisition of aircraft - Additional Information (Detail) | Nov. 17, 2017 | Jan. 31, 2018 |
Disclosure of fair value measurement of assets [abstract] | ||
Number of sale and purchase agreement signed | 2 | 2 |
Acquisition of aircraft - Sch_2
Acquisition of aircraft - Schedule of advanced payments and airctraft acquisition (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Aircraft [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | $ 1,257,929 |
Aircraft acquisition commitments | 14,505,329 |
Airbus SAS [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 1,183,104 |
Aircraft acquisition commitments | 8,049,841 |
Year one [member] | Aircraft [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 223,071 |
Aircraft acquisition commitments | 981,054 |
Year one [member] | Airbus SAS [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 31,048 |
Aircraft acquisition commitments | 14,874 |
Year two [member] | Aircraft [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 237,970 |
Aircraft acquisition commitments | 2,123,295 |
Year two [member] | Airbus SAS [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 51,502 |
Aircraft acquisition commitments | 288,716 |
Year three [member] | Aircraft [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 205,594 |
Aircraft acquisition commitments | 2,407,313 |
Year three [member] | Airbus SAS [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 93,211 |
Aircraft acquisition commitments | 534,304 |
Year four [member] | Aircraft [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 210,735 |
Aircraft acquisition commitments | 2,162,148 |
Year four [member] | Airbus SAS [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 222,771 |
Aircraft acquisition commitments | 135,783 |
Year five [member] | Aircraft [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 380,559 |
Aircraft acquisition commitments | 6,831,519 |
Year five [member] | Airbus SAS [member] | |
Disclosure of fair value measurement of assets [line items] | |
Advance payments | 784,572 |
Aircraft acquisition commitments | $ 7,076,164 |
Dividends - Summary of Payment
Dividends - Summary of Payment of Dividends (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Dividends [abstract] | ||
Dividend - Ordinary shared | $ 23,433 | $ 16,942 |
Dividend - Preferred shared | 12,075 | 8,730 |
Total | $ 35,508 | $ 25,672 |
Dividends - Additional Informat
Dividends - Additional Information (Detail) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | Sep. 28, 2018$ / shares | Aug. 31, 2018$ / shares | Jul. 31, 2018$ / shares | Jun. 29, 2018$ / shares | Mar. 16, 2018USD ($)$ / shares | Sep. 30, 2017$ / shares | Jul. 31, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Disclosure of Dividends [line items] | ||||||||||||
Dividends per share | (per share) | $ 24.65 | $ 24.65 | $ 24.65 | $ 24.65 | $ 98.6 | $ 38.5 | $ 38.5 | $ 77 | ||||
Dividend | $ 35,508 | $ 97,604 | $ 155,673 | $ 31,823 | ||||||||
Number of dividend paid installments | 4 | 2 | ||||||||||
Dividends per share | (per share) | $ 24.65 | $ 24.65 | $ 24.65 | $ 24.65 | $ 98.6 | $ 38.5 | $ 38.5 | $ 77 | ||||
Dividends payable to minority shareholdings | $ 6,000 | |||||||||||
TRM [member] | ||||||||||||
Disclosure of Dividends [line items] | ||||||||||||
Dividend | $ 278,047 |
Dividends - Summary of Dividend
Dividends - Summary of Dividends Paid to Minority Shareholding (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | $ 206,861 | $ 432,713 |
Life Miles Ltd [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 205,000 | 423,336 |
Turbo Prop Leasing Corp [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 1,861 | |
Aerotaxisla Costena SA [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 9,377 | |
Non-controlling interests [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 62,096 | 130,001 |
Non-controlling interests [member] | Life Miles Ltd [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 61,500 | 127,001 |
Non-controlling interests [member] | Turbo Prop Leasing Corp [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 596 | |
Non-controlling interests [member] | Aerotaxisla Costena SA [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 3,000 | |
Avianca Holdings SA participation [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 144,765 | 302,712 |
Avianca Holdings SA participation [member] | Life Miles Ltd [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | 143,500 | 296,335 |
Avianca Holdings SA participation [member] | Turbo Prop Leasing Corp [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | $ 1,265 | |
Avianca Holdings SA participation [member] | Aerotaxisla Costena SA [member] | ||
Disclosure of Dividends [line items] | ||
Dividends paid to noncontrolling interests | $ 6,377 |
Debt Covenants - Additional Inf
Debt Covenants - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of debt [line items] | |||
EBITDAR coverage ratio | 175.00% | ||
Capitalization Ratio | 86.00% | ||
Coverage ratio | 150.00% | ||
Debt service ratio | 140.00% | ||
Leverage ratio | 4.50% | 4.00% | |
Other Covenants [Member] | |||
Disclosure of debt [line items] | |||
Leverage ratio | 5.90% | ||
Minimum liquidity covenant | $ 400,000,000 | ||
Minimum liquidity covenant temporarily reduction | 300,000,000 | ||
Covenant debt provision | $ 5,880,000,000 | ||
Covenant debt provision, description | Covenant debt Provision - calculated by taking Avianca Holdings’ adjusted debt and subtracting the lesser of its nrestricted cash and $200 million. | ||
Capital expenditures requirement | $ 659,000,000 | ||
Scenario Forecast1 [member] | Other Covenants [Member] | |||
Disclosure of debt [line items] | |||
Covenant debt provision | $ 5,710,000,000 | ||
Capital expenditures requirement | $ 1,245,000,000 | ||
Bottom of Range [member] | |||
Disclosure of debt [line items] | |||
Cash reserves held or controlled to guarantor or subsidiaries | $ 350,000,000 | ||
EBITDA margin rate | 0.00% |
Relevant Information - Addition
Relevant Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Option | |
Bottom of Range [member] | |
Relevant Events [line items] | |
Number of customers connection options | 12,000 |
Subsequent Events - Summary of
Subsequent Events - Summary of Family Delivery Schedule (Detail) - Major purchases of assets [member] | Mar. 15, 2019Aircraft |
Subsequent event1 [line items] | |
Original Order | 128 |
Canceled Aircraft | (17) |
Adjusted Order | 111 |
Year one [member] | |
Subsequent event1 [line items] | |
Original Order | 5 |
Deferred Aircraft | (2) |
Adjusted Order | 3 |
Year two [member] | |
Subsequent event1 [line items] | |
Original Order | 20 |
Deferred Aircraft | (14) |
Adjusted Order | 6 |
Year three [member] | |
Subsequent event1 [line items] | |
Original Order | 23 |
Deferred Aircraft | (19) |
Adjusted Order | 4 |
Year four [member] | |
Subsequent event1 [line items] | |
Original Order | 20 |
Deferred Aircraft | (16) |
Adjusted Order | 4 |
Year Five and Thereafter [member] | |
Subsequent event1 [line items] | |
Original Order | 60 |
Deferred Aircraft | 51 |
Canceled Aircraft | (17) |
Adjusted Order | 94 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions | Apr. 23, 2019 | Mar. 15, 2019 | Dec. 31, 2018 |
Banco De Bogota [member] | |||
Subsequent event1 [line items] | |||
Short term loan | $ 245 | ||
Major purchases of assets [member] | |||
Subsequent event1 [line items] | |||
Decrease in capital expenditures | $ 350 | ||
Decrease in financial commitments | $ 2,600 | ||
Major purchases of assets [member] | Turbo Prop Leasing Corp and Aerotaxisla Costena SA [member] | |||
Subsequent event1 [line items] | |||
Purchase price amount | $ 11.7 | ||
Earn-out consideration | $ 3.8 | ||
Share exchange agreement [member] | Aerotaxisla Costena SA [member] | |||
Subsequent event1 [line items] | |||
Agreement to sale interest in subsidiary | 68.00% | ||
Share exchange agreement [member] | Turbo Prop Leasing Corp [member] | |||
Subsequent event1 [line items] | |||
Agreement to sale interest in subsidiary | 68.00% |