Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Interactive Data Current | Yes |
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 Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Address, Country | CO |
Entity Incorporation, State or Country Code | R1 |
Entity Address, Address Line One | Arias, Fábrega & Fábrega, P.H. ARIFA, Floors 9 and 10, West Boulevard, Santa María Business District |
Document Accounting Standard | International Financial Reporting Standards |
ICFR Auditor Attestation Flag | true |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Trading Symbol | AVH |
Title of 12(b) Security | American Depositary Shares |
Common Shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 660,800,003 |
Preference shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 340,507,917 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 911,139 | $ 342,472 |
Restricted cash | 24,299 | 1 |
Short term investments | 42,919 | 55,440 |
Trade and other receivables, net of expected credit losses | 229,917 | 233,722 |
Accounts receivables from related parties | 157 | 3,348 |
Current tax assets | 111,785 | 198,719 |
Expendable spare parts and supplies, net of provision for obsolescence | 81,433 | 88,334 |
Prepayments | 36,247 | 69,012 |
Deposits and other assets | 37,544 | 39,175 |
Current assets other than assets | 1,475,440 | 1,030,223 |
Assets held for sale | 884 | 681,053 |
Total current assets | 1,476,324 | 1,711,276 |
Non–current assets: | ||
Deposits and other assets | 55,547 | 54,074 |
Trade and other receivables, net of expected credit losses | 2,918 | 22,569 |
Non-current taxes assets | 1 | |
Intangible assets and goodwill, net | 488,925 | 505,507 |
Deferred tax assets | 25,236 | 27,166 |
Property and equipment, net | 4,811,544 | 4,953,317 |
Total non–current assets | 5,384,170 | 5,562,634 |
Total assets | 6,860,494 | 7,273,910 |
Current liabilities: | ||
Short-term borrowings and current portion of long-term debt | 5,011,094 | 872,044 |
Accounts payable | 489,031 | 530,615 |
Accounts payable to related parties | 2,782 | 3,713 |
Accrued expenses | 16,448 | 87,610 |
Current tax liabilities | 54,738 | 26,421 |
Provisions for legal claims | 23,314 | 20,244 |
Provisions for return conditions | 22,277 | 21,963 |
Employee benefits | 135,056 | 148,678 |
Air traffic liability | 399,184 | 337,363 |
Frequent flyer deferred revenue | 162,013 | 187,931 |
Other liabilities | 4,144 | 5,110 |
Current liabilities other than liabilities | 6,320,081 | 2,241,692 |
Liabilities associated with the assets held for sale | 490,458 | |
Total current liabilities | 6,320,081 | 2,732,150 |
Non–current liabilities: | ||
Long–term debt | 1,270,162 | 3,984,279 |
Accounts payable | 17,225 | 11,931 |
Provisions for return conditions | 138,562 | 122,425 |
Employee benefits | 103,540 | 118,337 |
Deferred tax liabilities | 13,922 | 18,471 |
Frequent flyer deferred revenue | 290,802 | 229,701 |
Other liabilities | 7,972 | 51,449 |
Total non–current liabilities | 1,842,185 | 4,536,593 |
Total liabilities | 8,162,266 | 7,268,743 |
Equity (Deficit) | ||
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 |
Accumulated losses | (2,025,557) | (543,010) |
Other comprehensive income / (loss) | (91,511) | (78,120) |
Equity attributable to owners of the Company (Deficit) | (1,288,605) | 207,333 |
Non–controlling interest | (13,167) | (202,166) |
Total equity (Deficit) | (1,301,772) | 5,167 |
Total liabilities and equity (Deficit) | $ 6,860,494 | $ 7,273,910 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenue: | |||
Passenger | $ 1,003,983 | $ 3,904,765 | $ 4,074,391 |
Cargo and other | 707,602 | 716,731 | 816,439 |
Total operating revenue | 1,711,585 | 4,621,496 | 4,890,830 |
Operating expenses: | |||
Flight operations | 42,167 | 75,713 | 153,615 |
Aircraft fuel | 335,612 | 1,204,058 | 1,213,411 |
Ground operations | 212,444 | 478,029 | 474,802 |
Rentals | 3,398 | 11,762 | 267,708 |
Passenger services | 41,816 | 176,454 | 188,713 |
Maintenance and repairs | 121,481 | 257,642 | 206,454 |
Air traffic | 90,202 | 278,987 | 269,631 |
Selling expenses | 169,281 | 500,160 | 530,930 |
Salaries, wages and benefits | 388,962 | 717,342 | 760,758 |
Fees and other expenses | 367,446 | 411,573 | 203,304 |
Deconsolidation of subsidiary | 26,221 | ||
Depreciation and amortization | 532,994 | 593,396 | 350,507 |
Impairment | 1,070 | 470,661 | 38,881 |
Total operating expenses | 2,333,094 | 5,175,777 | 4,658,714 |
Operating (loss) profit | (621,509) | (554,281) | 232,116 |
Interest expense | (378,318) | (299,942) | (212,294) |
Interest income | 4,406 | 9,041 | 10,115 |
Derivative instruments | (3,063) | (2,164) | (260) |
Foreign exchange, net | (46,494) | (24,190) | (9,220) |
Equity method profit | 274 | 1,524 | 899 |
(Loss) profit before income tax | (1,044,704) | (870,012) | 21,356 |
Income tax expense – current | (49,378) | (26,475) | (27,151) |
(Expense) income tax income – deferred | (53) | 2,492 | 6,938 |
Total income tax expense | (49,431) | (23,983) | (20,213) |
Net (loss) profit for the year | $ (1,094,135) | $ (893,995) | $ 1,143 |
Basic loss per share | |||
Common stock | $ (1.09) | $ (0.92) | $ (0.03) |
Preferred stock | $ (1.09) | $ (0.92) | $ (0.03) |
Net (loss) income for the year | $ (1,094,135) | $ (893,995) | $ 1,143 |
Items that will not be reclassified to profit or loss in future periods: | |||
Revaluation (devaluation) of administrative property | 1,074 | 2,761 | (20,448) |
Remeasurements of defined benefit liability | (14,037) | (42,541) | (9,039) |
Income tax | (818) | 441 | (39) |
Items that will not be reclassified to profit or loss in future periods | (13,781) | (39,339) | (29,526) |
Items that will be reclassified to profit or loss in future periods: | |||
Effective portion of changes in fair value of hedging instruments | 474 | 3,932 | (13,701) |
Net change in fair value of financial assets with changes in OCI | 503 | 1,205 | (328) |
Items that will be reclassified to profit or loss in future periods | 977 | 5,137 | (14,029) |
Other comprehensive loss, net of income tax | (12,804) | (34,202) | (43,555) |
Total comprehensive (loss) profit net of income tax | (1,106,939) | (928,197) | (42,412) |
(Loss) profit attributable to: | |||
Equity holders of the parent | (1,086,935) | (913,712) | (24,803) |
Non–controlling interest | (7,200) | 19,717 | 25,946 |
Net (loss) profit for the year | (1,094,135) | (893,995) | 1,143 |
Total comprehensive (loss) income attributable to: | |||
Equity holders of the parent | (1,100,326) | (947,736) | (68,097) |
Non–controlling interest | (6,613) | 19,539 | 25,685 |
Total comprehensive (loss) profit net of income tax | $ (1,106,939) | $ (928,197) | $ (42,412) |
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 (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) |
Statement [LineItems] | ||||||||||
Net profit (loss) | 1,143 | (24,803) | (24,803) | 25,946 | ||||||
Other comprehensive income (loss) | (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) |
Statement [LineItems] | ||||||||||
Net profit (loss) | (893,995) | (913,712) | (913,712) | 19,717 | ||||||
Other comprehensive income (loss) | (34,202) | (36,785) | 2,761 | (34,024) | (178) | |||||
Sale of subsidiaries | (7,712) | (7,712) | ||||||||
Dividends decreed | (51,385) | (15,385) | (15,385) | (36,000) | ||||||
Ending balance at Dec. 31, 2019 | 5,167 | 82,600 | 42,023 | 234,567 | 469,273 | (118,815) | 40,695 | (543,010) | 207,333 | (202,166) |
Statement [LineItems] | ||||||||||
Net profit (loss) | (1,094,135) | (1,086,935) | (1,086,935) | (7,200) | ||||||
Other comprehensive income (loss) | (12,804) | (14,465) | 1,074 | (13,391) | 587 | |||||
Non-controlling interest increase | (200,000) | (395,612) | (395,612) | 195,612 | ||||||
Ending balance at Dec. 31, 2020 | $ (1,301,772) | $ 82,600 | $ 42,023 | $ 234,567 | $ 469,273 | $ (133,280) | $ 41,769 | $ (2,025,557) | $ (1,288,605) | $ (13,167) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) profit for the year | $ (1,094,135) | $ (893,995) | $ 1,143 |
Adjustments for: | |||
Provision net of expected credit losses | 4,323 | 50,703 | 4,526 |
Provision for expandable spare parts and suppliers obsolescence | (32) | 2,075 | (3,203) |
Provision (recovery) for return conditions, net | 18,960 | 16,114 | (27,092) |
Provisions (recovery) for legal claims, net | 7,555 | 14,671 | (2,973) |
Depreciation and amortization | 532,994 | 593,396 | 350,507 |
Impairment of property and equipment | 1,070 | 470,661 | 38,881 |
Sale and leaseback transactions amortization | (43,844) | (5,399) | (4,747) |
Loss (gains) on disposal of assets | 88,483 | 21,562 | (16,081) |
Loss (gains) on sale or liquidation of subsidiary | 26,221 | 5,487 | (10,579) |
Fair value adjustment of financial instruments | 3,063 | 2,164 | 260 |
Interest income | (4,406) | (9,041) | (10,115) |
Interest expense | 378,318 | 299,942 | 212,294 |
Deferred tax | 53 | (2,492) | (6,938) |
Current tax | 49,378 | 26,475 | 27,151 |
Unrealized foreign currency loss (gain) | (10,070) | 5,363 | (32,569) |
Changes in: | |||
Accounts receivable | 14,621 | (10,565) | (103,998) |
Expendable spare parts and supplies | 6,234 | (3,150) | 10,056 |
Prepayments | 26,541 | 30,404 | (115) |
Net current tax | 51,089 | 51,973 | 13,497 |
Deposits and other assets | (4,400) | 43,655 | 95,247 |
Accounts payable and accrued expenses | (146,781) | (123,171) | 249,901 |
Air traffic liability | 62,556 | (86,731) | (36,569) |
Frequent flyer deferred revenue | 35,015 | (3,001) | 37,719 |
Provision for return conditions | (15,248) | (1,886) | (5,814) |
Employee benefits | (28,533) | (1,345) | (29,740) |
Income tax paid | (17,221) | (45,534) | (47,547) |
Net cash (used in) provided by operating activities | (58,196) | 448,335 | 703,102 |
Cash flows from investing activities: | |||
Restricted cash | (24,201) | 4,558 | 378 |
Interest received | 4,387 | 9,619 | 9,871 |
Advance payments on aircraft purchase contracts | (21,324) | (111,711) | |
Return of aircraft advances | 50,004 | 30,312 | |
Acquisition of property and equipment | (86,980) | (246,591) | (430,610) |
Proceeds from sale of property and equipment | 325,649 | 233,035 | 132,369 |
Redemption in certificates of bank deposits | 12,339 | 11,866 | 4,640 |
Acquisition of intangible assets | (43,764) | (29,129) | (116,635) |
Liquidation and sale of subsidiaries | (1,778) | (875) | 18,000 |
Acquisition of investments | (78) | ||
Net cash provided by (used in) investing activities | 235,656 | (8,529) | (493,776) |
Cash flows from financing activities: | |||
Proceeds from loans and borrowings | 944,580 | 616,555 | 303,640 |
Transaction costs related to bonds | (42,516) | (18,807) | |
Repayments of loans and borrowings | (350,848) | (637,740) | (483,473) |
Interest paid | (136,063) | (275,054) | (208,709) |
Sale & leaseback transactions | 53,990 | ||
Acquisition of non-controlling interest | (26,500) | ||
Dividends paid | (14,057) | (35,508) | |
Dividends paid to minority shareholding | (36,000) | (56,096) | |
Net cash provided by (used in) financing activities | 388,653 | (365,103) | (426,156) |
Net increase (decrease) in cash and cash equivalents | 566,113 | 74,703 | (216,830) |
Effect of movements in exchange rates on cash held | 2,554 | (5,339) | (17,280) |
Cash on deconsolidation of subsidiary | (1,764) | ||
Cash and cash equivalents at beginning of year | 342,472 | 273,108 | 508,982 |
Cash and cash equivalents at end of year | $ 911,139 | $ 342,472 | $ 273,108 |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Reporting entity | (1) Reporting entity Avianca Holdings S.A. (the “Group” 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 was list as AVH. Synergy Aerospace Corp currently has the majority of the Group’s shareholding through BRW Aviation LLC, which is the Group’s direct controller. Since May 24, 2019, Kingsland Holdings Limited, through its ownership of ordinary shares of Avianca Holdings and authority to vote the ordinary shares of Avianca Holdings S.A. owned by BRW Aviation LLC, has effective control of Avianca. Debtor in Possession Avianca Holdings S.A. and certain of its subsidiary companies “the Debtors” filed, on May 10, 2020 and September 21, 2020 voluntary petitions under chapter 11 of the Bankruptcy Code (11 U.S.C. § 101, et. seq.) with the United States Bankruptcy Court for the Southern District of New York, which cases are being jointly administered under Case No. 20-11133 ™ debtor-in-possession. The Company currently operates as Debtor in Possession under the jurisdiction of the bankruptcy court and the provisions of the bankruptcy code. In general, as Debtor in Possession, the Company is authorized to continue operating as a going concern but cannot engage in transactions outside the ordinary course of its operation without prior court approval. The bankruptcy court guarantees some relief, among others, obligations to (i) employees, (ii) tax authorities, (iii) insurance companies, (iv) independent contractors for improvement projects, (v) foreign suppliers, (vi) other airlines under certain agreements, and (vii) certain suppliers considered critical to the operation of the Company. The following are the significant subsidiaries in the Group included within these consolidated financial statements: Name of Subsidiary Country of Ownership 2020 2019 Avianca Ecuador S.A. Ecuador 99.62 % 99.62 % Aerovias del Continente Americano S.A. (Avianca) Colombia 99.98 % 99.98 % Avianca, Inc. U.S. 100 % 100 % Avianca Leasing, LLC. U.S. 100 % 100 % Grupo Taca Holdings Limited. Bahamas 100 % 100 % Latin Airways Corp. Panamá 100 % 100 % LifeMiles Ltd. Bermuda 89.90 % 70 % Avianca Costa Rica S.A. Costa Rica 92.42 % 92.42 % Taca International Airlines, S.A. El Salvador 96.83 % 96.83 % Tampa Cargo Logistics, Inc. U.S. 100 % 100 % Tampa Cargo S.A.S. Colombia 100 % 100 % Technical and Training Services, S.A. de C.V. El Salvador 99 % 99 % Regional Express Américas S.A.S. Colombia 100 % 100 % Vu–Marsat S.A. Costa Rica 100 % 100 % The Group 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 and Nicaragua 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 and baggage handling; transfer of passenger and baggage at any point of connectivity, among others. The code-share agreements currently in place with other airlines include Air Canada, Aeromexico, United Airlines, Copa Airlines, Silver Airways, Iberia, Lufthansa, All Nippon Airways, Singapore Airlines, Eva Airways, Air China, Etihad Airways, Turkish Airlines, Air India, Azul Linhas Aéreas Brasileiras and GOL Linhas Aéreas Inteligentes, Avianca, Taca International (as well as Taca affiliates) and Avianca Ecuador are members of Star Alliance, which give customers access to destinations and services offered by Star Alliance network. Star Alliance members include several of the world’s most recognized airlines, including Lufthansa, United Airlines, Thai Airways, Air Canada, TAP, Singapore Airlines, among others, as well as smaller regional airlines. All of them are committed to meeting the highest standards in terms of security and customer service. 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, 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. Subsidiary liquidation Parallel to its filing of Chapter 11 in the US, the group began the liquidation of its operations in Peru in accordance with local laws. For the year ended December 31, 2020, the Group made the decision to liquidate the subsidiary detailed below: Avianca Perú S.A. On December 31, 2020, the Group defined it will carry out the definitive liquidation of the assets and liabilities of Avianca Perú S.A. Avianca Perú S.A. The following is the summary of the movements in the consolidated financial statements due to the liquidation and the corresponding loss of control of Avianca Perú S.A. Avianca Perú S.A. Cash amount in the company $ 1,778 Amount of company assets, without cash 36,768 Amount of liabilities in the company (12,325 ) Total net assets of the subsidiary 26,221 Loss on liquidation of subsidiary $ 26,221 The total amount of cash from losing control of the subsidiaries is reported in the statement of net cash flows of cash and cash equivalents disposed of as part of said transaction for a net value of $ 1,778. Sale of subsidiaries For the years ended December 31, 2019 and 2018, the Group signed two sale agreements that are detailed below: Turboprop Leasing Company and Aerotaxis La Costeña S.A. On April 22, 2019, the Group through its subsidiaries Grupo Taca Holdings Limited (“GTH”) and Nicaragüense de Aviación S.A. (“NICA”) sold all GTH shares in Turboprop Leasing Company Ltd. (“Turbo”), and all NICA shares in Aerotaxis La Costeña S.A. (“La Costeña”), respectively, to Regional Airline Holding LLC (the “Buyer”). As a result of the transaction, the Group lost control and ceased to consolidate the financial statements of Turboprop Leasing Company Ltd. and Aerotaxis La Costeña S.A. on May 31, 2019. The following is the summary of the movements in the consolidated financial statements due to the sale and the corresponding loss of control of Turbo Leasing Company Ltd. and Aerotaxis La Costeña S.A. Turboprop Aerotaxis La Total Sale Cash amount in the company $ 8,876 $ 2,889 $ 11,765 Amount of company assets, without cash 28,632 6,928 35,560 Amount of liabilities in the company (19,507 ) (3,729 ) (23,236 ) Total net assets of the subsidiary 18,001 6,088 24,089 Noncontrolling interest (5,769 ) (1,943 ) (7,712 ) Participation of GTH / Nicaragüense de Aviación $ 12,232 $ 4,145 $ 16,377 Consideration received in cash 6,425 4,465 10,890 Loss / gain on sale of subsidiaries $ (5,807 ) $ 320 $ (5,487 ) The total amount of cash paid for losing control of the subsidiaries is reported in the statement of net cash flows of cash and cash equivalents disposed of as part of said transaction for a net payment of $ 875. Getcom Int’l Investments SL On December 28, 2018, Avianca Holdings signed an agreement for the sale and transfer of its stake and control in Getcom Int’l Investments SL, a company incorporated in Spain, to Seger Investments, Corp, a company domiciled in Panama, which already owned a 50% stake in Getcom Int’l Investments SL. In accordance with the terms of said agreement, the Company and the Buyer also made the sale on this date. As a result of the transaction, the Group lost control and stopped consolidating the financial statements of Getcom Int’l Investments S.L. on December 31, 2018. The following is a summary of the movements in the financial statements due to the sale and the corresponding loss of control of Getcom Int’l Investments S.L: Cash amount at Getcom Int’l Investments S.L. $ 1,764 Amount of assets of Getcom Int’l Investments S.L., without cash 20,561 Amount of liabilities at Getcom Int’l Investments S.L. (6,980 ) Total net assets of the subsidiary $ 15,345 noncontrolling interest (7,674 ) AVH participation 7,671 Consideration Received: Part of the consideration consisting of cash 18,000 Part of the consideration consisting of accounts receivable 250 Fair value of the consideration received $ 18,250 Gain on sale of subsidiary $ 10,579 As of December 31, 2020, and 2019, Avianca Holdings S.A. had a total fleet consisting of: December 31, 2020 December 31, 2019 Aircraft Owned/ Financial Operating Lease (1) Total Owned/ Financial Operating Lease Total Airbus A-319 23 2 25 23 4 27 Airbus A-320 22 33 55 31 26 57 Airbus A-320 3 7 10 3 7 10 Airbus A-321 5 6 11 7 6 13 Airbus A-321 — 2 2 — 2 2 Airbus A-330 1 6 7 3 7 10 Airbus A-330F 6 — 6 6 — 6 Airbus A-300F 3 — 3 5 — 5 Boeing 787-8 8 5 13 8 5 13 Boeing 787-9 — 1 1 — 1 1 ATR-72 11 — 11 15 — 15 Boeing 767F 2 — 2 2 — 2 Embraer E-190 — — — 10 — 10 84 62 146 113 58 171 (1) Operating leases increase from 2019 to 2020, due to the acquisition of operating aircraft under lease (Sale and Lease Back). |
Basis of preparation of the con
Basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Basis of preparation of the consolidated financial statements | (2) Basis of preparation of the consolidated financial statements (a) Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) promulgated by the International Accounting Standards Board (“IASB”). The consolidated financial statements of the group for the year ended December 31, 2020 were prepared and submitted by Management and authorized for issuing by Audit Committee o n April 29, 202 1. (b) Basis of measurement The consolidated financial statements have been prepared on a historical cost basis, except for, land and buildings (classified as administrative property), assets held for sale, derivative financial instruments and plan assets, which 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 These 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. The evolution of COVID-19 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. In preparing these consolidated financial statements, significant judgments were made by Management when applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2020. However, the current environment generates uncertainty and complexity in the estimates calculate. 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: • Our situation related to Chapter 11 creates material uncertainties that may raise significant doubts about our ability to continue as a going concern. See note 2 (e). • 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 75 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: • The Group recognizes revenue from tickets that are expected to expire without having been used based on historical data and experience, and the impact of COVID-19 • 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. 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 and taxable temporary differences to the extent that it is probable that taxable profit will be available against which the deferred tax 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 (See note 14 y 24). The Group engaged independent valuation specialists to assists management in determine the fair value of these assets as of December 31, 2020. 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 considering the latest fleet plans and business plan information. In the note 14 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, it’s realized by transportation and loyalty cash generating units. An impairment charge is recognized when the asset’s carrying value exceeds its value-in-use 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. • 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 rate of the bonds issued by the Colombian Government. 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. • The Group estimated the breakage of miles, supported by a third valuation specialist to assist management in this process. The Group 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 estimated a provision for expected credit losses based on informed and reasonable information about past events, present conditions and reasonable and justifiable forecasts regarding future economic conditions, considering credit risk, classification and late payment. • 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) Avianca Holding Chapter 11 Filing, Insolvency of Avianca Peru and Going Concern Background As a result of the adverse effects of COVID-19, 314 mid-March, No. 20-11133 ™ Chapter 11 procedures and advisors The Chapter 11 process is a well-established legal process in the United States of America that is recognized by many other countries around the world. The process is a temporary one that, allows a company to reorganize and complete a financial and operational restructuring under the supervision of the U.S. federal court system, while continuing its operations under the oversight of its board of directors and management team. Many companies, including airlines, have used the Chapter 11 process to reorganize their financial obligations and emerge as stronger organizations. Avianca itself underwent a Chapter 11 process in 2003 that allowed it to position itself for expansion in Latin America. Through the Chapter 11 reorganization process, Avianca intends to: • Protect and preserve operations so Avianca can continue to operate and serve customers with safe and reliable air travel, under the strictest biosafety protocols, as COVID-19 • Ensure connectivity and drive investment and tourism by continuing as Colombia’s flagship airline, serving over 50% of the domestic market in Colombia and providing essential nonstop service across South America, North America and European markets as well as continuing cargo operations, playing a key role in the economic recovery of Colombia and the Company’s other core markets following the COVID-19 • Preserve jobs in Colombia and other markets where the Company operates, with Avianca directly responsible for more than 14,500 jobs throughout Latin America, including more than 10,000 in Colombia, and working with more than 3,000 vendors. • Restructure the Company’s balance sheet and obligations to enable Avianca to navigate the effects of the COVID-19 As a consequence of our filing Chapter 11 petitions, our operations and our ability to develop and execute a business plan, as well as our continuation as a going concern, will be subject to the risks and uncertainties associated with bankruptcy. These risks include our ability to: • maintain adequate cash on hand throughout the Chapter 11 process, • generate cash flow from operations, which depends largely on factors beyond our control relating to developments deriving from the spread of COVID-19, • confirm and consummate a plan of reorganization with respect to our Chapter 11 proceedings, • obtain sufficient financing to allow us to emerge from bankruptcy and execute our business plan post-emergence, as well as comply with the terms and conditions of that financing, • maintain relationships with our creditors, suppliers, service providers, customers, directors, officers, and employees, • maintain contracts that are critical to our operations on reasonably acceptable terms and conditions, and • bear the high costs of bankruptcy proceedings and related fees. Additionally, these risks include that: • counterparties may seek and obtain court approval to terminate contracts and other agreements with us, • third parties that are outside the jurisdiction of the bankruptcy court to enforce their claims against the Debtors, either during the Chapter 11 cases or after their conclusion, • the bankruptcy court may shorten the exclusivity period for us to propose and confirm a Chapter 11 plan appoint a Chapter 11 trustee (iii) convert the Chapter 11 proceedings to Chapter 7 liquidation proceedings or (iv) dismiss the Chapter 11 cases, and • the actions and decisions of our creditors and other third parties who have interests in our Chapter 11 proceedings may be inconsistent with our plans. Any delays in our Chapter 11 proceedings increase the risks of our inability to reorganize our business and emerge from bankruptcy and may increase our costs associated with the reorganization process. In connection with the Company’s reorganization proceedings pursuant to Chapter 11, the United States Trustee for Region Two appointed the following seven unsecured creditors as members of the Company’s Unsecured Creditors’ Committee (hereinafter the “Committee”): (i) La Caja de Auxilios y de Prestaciones de la Asociación Colombiana de Aviadores Civiles (Pension fund for the Colombian Association of Civil Aviators or CAXDAC); (ii) The Boeing Company; (iii) Puma Energy; (iv) SMBC Aviation Capital, Ltd. (v) KGAL Investment Management GmbH & Co KG; (vi) Delaware Trust Company; and (vii) the Colombian Association of Civil Aviators (Asociación Colombiana de Aviadores Civiles or “ACDAC”). To best position Avianca to successfully complete the Chapter 11 process, the Company’s Board of Directors has retained world-class advisors, including Seabury Securities LLC and FTI Consulting, which are serving as financial advisors to Avianca, as well as Milbank LLP, Smith, Gambrell & Russell, LLP, Gómez-Pinzón Chapter 11 Process Chapter 11 filing Avianca Holdings S.A. and certain of its subsidiary companies filed, on May 10, 2020 and September 21, 2020, voluntary petitions under chapter 11 of the Bankruptcy Code (11 U.S.C. § 101, et. seq.) with the United States Bankruptcy Court for the Southern District of New York. The prepetition liabilities of the 39 companies under chapter 11 as of May 10, 2020, and its update as of December 31, 2020 are the following: December 31, Debt 4,200,663 Accounts payable 261,126 Accrued expenses 22 Provisions for legal claims 18,107 Provisions for return conditions 160,839 Other liabilities 330 4,641,087 The two companies included under Chapter 11 on September 21, 2020 do not present liabilities. See details of the obligations subject to commitment in each of the disclosure notes. As a result of the filing of voluntary petitions on May 10, 2020, under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, the ( “NYSE”) announced on May 11, 2020 that, as is standard practice, the NYSE suspended trading in the Company’s American Deposit Shares (the “ADSs”), each of which represents eight preferred shares of the company. On May 27, 2020, the (“NYSE”) submitted to the Securities and Exchange Commission the intention to withdraw ADSs from Avianca Holdings from listing and registering on the (“NYSE”) at the opening of operations on June 8, 2020, in accordance with the provisions of Rule 12d2-2 On May 22, 2020, the Colombian Stock Exchange (“BVC”) notified the Company that: (i) the Company’s preferred shares continue to be listed on the BVC, (ii) the Company’s preferred shares remain ineligible for repo transactions and are inadmissible as collateral for margin calls on other types of transactions, and (iii) as of May 11, 2020, no futures or options contracts can be entered into with respect to Avianca’s preferred shares. Motions filed on May 10, 2020 have been progressively approved by the United States Bankruptcy Court for the Southern District of New York at hearings on May 12, 2020, June 11, 2020, and July 14, 2020 Collectively, the orders issued by the Court at the hearing will help ensure that Avianca continues normal business operations throughout the reorganization process. Operational motions The Court granted initial relief to make payments of $ 300 million. The foregoing allowed Grupo Avianca Holdings S.A. protect employees and suppliers while continuing to serve customers. Avianca received authorization to: • Pay certain employee wages, compensation and benefit obligations owed from before the filing date, as well as to continue paying wages and honoring employee benefit programs in the normal course of business during its Chapter 11 cases. • Maintain its network of customer programs throughout this process. Customers can continue to arrange travel and fly with Avianca in the same way they always have. Additionally, Avianca customers will continue to accrue miles when they fly with Avianca, and can continue to redeem miles earned through LifeMiles ™ • Honor various obligations owed to certain of its travel agency partners, vendors and suppliers from before the filing date. The Company will also continue to pay vendors and suppliers, as well as travel agency partners, in the ordinary course for goods and services provided on or after May 10, 2020. • Pay accrued and ongoing prepetition taxes and fees, as well as insurance and surety bond obligations, as they come due in the ordinary course of business. Rejection of certain contracts As debtor in the Chapter 11 cases, Avianca has the ability to reject burdensome executory contracts and unexpired leases. Upon commencement of the Chapter 11 cases, Avianca sought to reject the leases of 12 aircraft, which was approved at the hearing of June 11, 2020. The rejected aircraft correspond to 2 A330, 2 A319, 2 A320, 2 A321 and 4 ATR-72. DIP Financing On October 5, 2020, the U.S. Bankruptcy Court for the Southern District of New York approved Avianca Holdings S.A.’s debtor in possession (DIP) financing (the “DIP Order”) in an aggregate principal amount of up to approximately $1,992,191 – inclusive of outstanding debt that was refunded, refinanced and replaced (on a cashless basis), fees and discounts. The DIP financing consists of Tranche A loans and notes in an aggregate principal amount of up to $1,269,500 (corresponding to $881,000 of new money and the remaining $388,500 of roll-ups roll-ups sub-tranche A-2, Each of Avianca Holdings S.A.’s subsidiaries that are currently under Chapter 11 guarantee, on a joint and several basis, all of Avianca Holdings S.A.’s obligations. On October 13, 2020, the DIP financing agreements became effective and the initial disbursements thereunder took place, disclosed in note 17 to the consolidated financial statements. As set forth in the DIP Order and the applicable agreements, the DIP financing agreements are collateralized by all of the assets and properties (whether tangible, intangible, real, personal or mixed) of Avianca Holdings S.A. and the guarantors (including pledges on Avianca Holdings S.A.’s equity in LifeMiles and its material subsidiaries such as those that conduct cargo operations, pledges on certain of the obligors’ intellectual property and control agreements in respect of certain of Avianca Holdings S.A.’s and its subsidiaries’ bank accounts). The Company expects that the DIP financing will provide the Company necessary funds to support its operations through the Chapter 11 process. Claims processing On November 16, 2020, the United States Bankruptcy Court for the Southern District of New York granted the motion for a Claims Date (Bar Date) establishing January 20, 2021 (“The general deadline”) as the general deadline for each entity (including individuals, partnerships, joint venture agreement, trusts and government units) file proofs of claim against the Debtors. Government units had until February 5, 2021 (the “Deadline for Government Units”), to present evidence of claim. Entities that have a claim against any of the Debtors arising from the rejection of successive performance contracts and leases in force, must present evidence of claim no later than (i) on the General Deadline Date, or (ii) the last of the date that is (a) thirty days after the date of entry of an order from the Bankruptcy Court authorizing the rejection of said contract or lease, or (b) the applicable rejection date (the “Deadline for Rejection Claims”). In accordance with the Bar Date Order, if any of the Debtors modifies or complements its Annexes, the affected claimant must present its evidence of claim or rectify its evidence of claim already presented with respect to such modification of its Claim Prior to the Request in the Annex, no later than (a) on the General Deadline Date, or (b) within thirty days following the date on which the affected claimant is notified about the modification of the Annex, whichever is later “Deadline for Annexes Modified ”). On May 10, 2020 (the “Petition Date”), Avianca Holdings SA (the “Company” or “Avianca”) and certain of its subsidiaries and affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”), in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). No assurance can be given as to the value, if any, that may be ascribed to the Debtors’ various pre-petition Under Section 365 and other relevant sections of the Bankruptcy Code, the Debtors may assume, assume and assign, or reject executory contracts and unexpired leases, including, without limitation, agreements relating to aircraft and aircraft engines (collectively, Aircraft Property) and leases of real property, subject to the approval of the Bankruptcy Court and certain other conditions. In general, rejection of an executory contract or unexpired lease is treated as a prepetition breach of such contract or lease and, subject to certain exceptions, relieves the Debtors from performing their future obligations under such contract or lease. The contract counterparty or lessor, for its part, can assert a prepetition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease requires the Debtors to cure existing defaults under such executory contract or unexpired lease. As of December 31, 2020, the Debtors had rejected twelve Aircraft leases relating to four ATR 72, four Airbus A320, two Airbus A321 and two Airbus A330, which have been returned to the respective lessor. The Debtors expect that liabilities subject to compromise and resolution in the Chapter 11 Cases will arise in the future as a result of damage claims resulting from the Debtors’ rejection of various executory contracts and unexpired leases. Due to the uncertain nature of many of the potential rejection claims, the magnitude of such claims is not reasonably estimable at this time. Such claims may be material. As of December 31, 2020, the Group have recorded in the financial statements the amounts for claims for which there was reasonable sufficient information to estimate the claim. Dissolution of Avianca Peru Parallel to your Chapter 11 filing in the US, Avianca began winding up its operations in Peru in accordance with local law. This decision supports essential correct sizing efforts and will allow Avianca to renew its focus on core markets by exiting its court-supervised reorganization. Currently, the liquidation proceeding is in process of liquidating liabilities and assets of such entity. Such process is under the supervision of Estrategia Consultores S.A.C, the designated independent liquidator. Although the agreement of the General Shareholders’ Meeting has already been published, its registration in the Public Registry of Peru since July 08, 2020. On May 27, 2020, the Bankruptcy Court of the Southern District of New York, in the best interest of Avianca, its creditors and other related parties, authorized the debtor companies to pay the labor obligations to the employees of Avianca Peru S.A., as well as any other cost associated with its liquidation up to a limit of $7 million related to the 906 employees of the Company. As of December 31, 2020, payments related to labor settlements were recognized to the employees of Avianca Perú S.A. for $8,773, the same that have been served with the Company’s own resources without even having to resort to requesting funds from the Bankruptcy Court of the Southern District of New York. Going Concern As a result of the adverse effects of COVID-19, 1,020,874 The administration currently implements among others the following measures under its chapter 11 process: • Cost savings and liquidity preservation measures, including temporary deferral of non-essential • Legal and financial advice for the development and implementation of the reorganization plan under chapter 11 laws and the appropriate decision-making under the current conditions, which includes rejection of contracts and flexibility of lease contracts to limit the consumption of cash in the restructuring period of the Group. • Contract renegotiation with suppliers and lessors. • Fleet simplification, in line with the protection granted under Chapter 11. • Launching commercial strategies to re activate demand for Air services. The gradual reactivation of our passenger operation, in addition to the execution of the company’s DIP financing, partially disbursed during the last quarter of 2020, have enabled the company to continue to implement its restructuring plan, focused on successfully emerging from Chapter 11 as a viable entity. However, our operations and our ability to develop and execute our business plan, renegotiate our liabilities at sustainable levels, as well as our continuation as a going concern, will be subject to the risks and uncertainties associated with the reorganization process under Chapter 11. Such risk implies a significant doubt about our ability to continue as a going concern and, therefore, the Group may not be able to realize its assets and settle the liabilities in the normal course of business. These consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the carrying amounts or classification of reported assets, liabilities, and expenses, that would otherwise be necessary if the going concern assumption was not appropriate. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
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, except in mentioned in the 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 49 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 include 72 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. 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. (d) 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 acquire. 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 acquire. 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. If this consideration is less than the fair value of the net assets acquired, the difference is recognized as profit at the date of acquisition. 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 acquire are assigned to those units. (e) Revenue recognition Revenue is measured based on the consideration specified in a contract with a customer. The Group recognizes income when transferring control over the good or service to the customer. Below is information on the nature and timing of the satisfaction of performance obligations in contracts with customers. (i) Passenger and cargo transportation The Group recognizes revenues from passenger, cargo and other operating income in consolidated statements of comprehensive income. Revenues from passenger, 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 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 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 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) Loyalty program 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 22) 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 “. Breakage estimates are reviewed every semester. 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. (f) Income tax Income tax expense comprises current and deferred taxes and is accounted for in accordance with IAS 12 “Income Taxes”. They are recognized in results except to the extent that it relates to a business combination, or items recognized directly in equity or other comprehensive income. (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, but the Group intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. (g) 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 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 associated to 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. (h) Assets held for sale Non-current Non-current Property and equipment and intangible assets, once classified as held for sale, are not subject to depreciation or amortization and both the assets and any liabilities directly associated with the assets held for sale is reclassified to current and disclosed in a separate line of the consolidated financial statement, when the criteria for having an assets as held for sale are no longer met, the Company reclassifies property and equipment for the lower value between: 1) The carrying amount before the asset was classified as held for sale, adjusted for the depreciation that would have been recognized if it had not been classified as held for sale. 2) The recoverable amount on the date of the subsequent decision not to sell it. (i) Leased assets (i) Assets by right of use The Group recognizes the assets for right of use on the start date of the lease (that is, the date on which the underlying asset is available for use). The right-of-use (ii) Lease liabilities On the start date of the lease, the Group recognizes the lease liabilities measured at the present value of the lease payments that will be made during the term of the lease. Lease payments include fixed payments and variable lease payments that depend on an index or a rate. Lease payments also include the price of a purchase option that the Group can reasonably exercise and penalty payments for terminating a lease. Variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers the payment occurs. At the beginning of a contract, the Group assesses whether a contract is or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an asset for a period of time in exchange for a consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. At the commencement or modification of a contract that contains a lease component, the Group assigns the consideration in the contract to each lease component on the basis of their relative independent prices. However, for property leases the Group has chosen not to separate the non-lease non-lease (j) 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. (k) 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, without exceeding a business segment. Impairment measurement is currently carried out at the level of the air transport segment. 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 and impairment measurement is carried out at the air segment level. 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) Intangible assets associated with contractual rights and obligations 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. (l) 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 (SPPI)” 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 i |
New and amended standards and i
New and amended standards and interpretations | 12 Months Ended |
Dec. 31, 2020 | |
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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, 2020. The Group has not applied any standard, interpretation or modification that has been issued but is not yet effective. Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations to help entities determine whether an acquired set of activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. New illustrative examples were provided along with the amendments. Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Group was not affected by these amendments on the date of application. Amendments to IAS 1 and IAS 8: Definition of Material In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.’ The amendments to the definition of material do not have a significant impact on the Group’s consolidated financial statements. 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 17 Insurance contracts IFRS 17 is effective for reporting periods beginning on or after January 1, 2023, with comparative figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. This standard is not applicable to the Group. Modifications are effective for the period beginning January 1, 2021: IFRS 9—Financial Instruments, IFRS 7—Financial Instruments: Disclosure, IAS 39—Financial Instruments: Recognition and Measurement and Reform of the Reference Interest Rate Phase 2 The amendments are related to the modification of financial assets, financial liabilities and lease liabilities, specific hedge accounting requirements and disclosure requirements applying IFRS 7 to accompany the modifications related to modifications and hedge accounting: • Modification of financial assets and liabilities and lease liabilities. A practical file is introduced for the modifications by the reform, accounting for the updated effective interest rate. • Hedging transactions (and related documentation) should be adjusted to reflect changes to the hedged item, the hedging instrument, and the hedged risk. • Disclosures in order to allow users to understand the nature and scope of the risks arising from the IBOR reform to which the entity is exposed and how the entity manages these risks. IFRS 4 is also amended to require insurers that apply the temporary exemption from IFRS 9 to apply the amendment in accounting for the modifications directly required by the IBOR reform. The modifications are effective globally for annual periods beginning on or after January 1, 2021 and will be applied retrospectively. Early application is allowed. Restatement of previous periods is not required. However, an entity may restate prior periods if, and only if, it is possible without the use of hindsight. The following modifications are effective for the period beginning January 1, 2022: Classifications of Liabilities as Current or Non-Current • Modifies the requirement to classify a liability as current, by establishing that a liability is classified as current when “it does not have the right at the end of the reporting period to defer the settlement of the liability for at least the following twelve months. at the date of the reporting period”. • Clarifies in the added paragraph 72A that “the right of an entity to defer the settlement of a liability for at least twelve months after the reporting period must be substantial and, as paragraphs 73 to 75 illustrate, must exist at the end of the reporting period”. Reference to the Conceptual Framework (amendments to IFRS 3) • Modifications are made to the references to align them with the conceptual framework issued by the IASB in 2018 and incorporated into our legislation, in that sense the identifiable assets acquired and the liabilities assumed in a business combination, on the transaction date, will correspond to those that meet the definition of assets and liabilities described in the conceptual framework. • Paragraphs 21A, 21B and 21C are incorporated regarding the exceptions to the recognition principle for liabilities and contingent liabilities within the scope of IAS 37 and IFRIC 21. • Paragraph 23A is incorporated to define a contingent asset, and clarify that the acquirer in a business combination will not recognize a contingent asset on the acquisition date. Property, Plant and Equipment: Products Obtained Before Intended Use (amendments to IAS 16) • The modification deals with the costs directly attributable to the acquisition of the asset (which are part of the PPYE element) and refers to “the costs of checking that the asset works properly (that is, if the technical and physical performance of the asset it is such that it can be used in the production or supply of goods or services, to lease to third parties or for administrative purposes)”. • Paragraph 20A states that the production of inventories, while the PPYE element is in the conditions foreseen by management, at the time of sale, will affect the results of the period, together with its corresponding cost. • Any effect on its application will be made retroactively, but only to the elements of PPYE that are brought to the place and conditions necessary for them to operate in the manner foreseen by management from the beginning of the first period presented in the financial statements. in which the entity applies the modifications for the first time. The cumulative effect of the initial application of the amendments will be recognized as an adjustment to the opening balance of retained earnings (or other component of equity as appropriate) at the beginning of the first period presented. Onerous Contracts — Cost of Fulfillment of a Contract (amendments to IAS 37) • It is clarified that the cost of fulfilling a contract includes the costs directly related to the contract (the costs of direct labor and materials, and the allocation of costs directly related to the contract). • The effect of applying the amendment will not restate the comparative information. Instead, the cumulative effect of the initial application of the amendments will be recognized as an adjustment to the opening balance of retained earnings or other component of equity, as appropriate, on the date of initial application. Annual Improvements to IFRS Standards 2018–2020 • Modification to IFRS 1. Subsidiary that adopts IFRS for the first time. Paragraph D13A of IFRS 1 is added, incorporating an exemption on subsidiaries that adopt the IFRS for the first time and take as balances in the opening statement of financial position the book amounts included in the financial statements of the parent (literal a of the paragraph D16 of IFRS 1) so that it can measure the accumulated exchange differences for conversion by the carrying amount of said item in the consolidated financial statements of the parent (also applies to associates and joint ventures). • Amendment to IFRS 9. Fees in the “10% test” regarding the derecognition of financial liabilities. A text is added to paragraph B3.3.6 and B3.3.6A is added, it is special to clarify the recognition of the commissions paid (to the result if it is a cancellation of the liability, or as a lower value of the liability if it is not as a cancellation). • Amendment to IAS 41. Taxes in fair value measurements. The phrase “nor tax flows” is eliminated from paragraph 22 of IAS 41, the reason for the above is because “before Annual Improvements to IFRS Standards 2018-2020, IAS 41 had required an entity to use the flows of cash before taxes when measuring fair value but did not require the use of a discount rate before taxes to discount those cash flows”. In this way, the requirements of IAS 41 are aligned with those of IFRS 13. • Extension of the Temporary Exemption from the Application of IFRS 9 Paragraphs 20A, 20J and 20O of IFRS 4 are amended to allow the temporary exemption that allows, but does not require, the insurer to apply IAS 39. • Financial Instruments: Recognition and Measurement instead of IFRS 9 for annual periods beginning before January 1, 2023 (because from that date there is a new international requirement contained in IFRS 17). |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2020 | |
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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, 2020 are as follows: For the year ended December 31, 2020 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 1,566,546 $ 145,039 $ — $ 1,711,585 Inter-segment (102,770 ) 3,213 99,557 — Total operating revenue $ 1,463,776 $ 148,252 $ 99,557 $ 1,711,585 Operating expenses 1,582,249 117,432 99,349 1,799,030 Depreciation, amortization and impairment 532,150 11,931 (10,017 ) 534,064 Operating (loss) profit (650,623 ) 18,889 10,225 (621,509 ) Interest expense (352,421 ) (25,897 ) — (378,318 ) Interest income 2,904 1,502 — 4,406 Derivative instruments (3,064 ) 1 — (3,063 ) Foreign exchange (46,312 ) (182 ) — (46,494 ) Equity method 274 — — 274 Income tax expense (49,387 ) (44 ) — (49,431 ) Net (loss) profit for the period $ (1,098,629 ) $ (5,731 ) $ 10,225 $ (1,094,135 ) Total Assets $ 6,757,269 $ 226,391 $ (123,166 ) $ 6,860,494 Total Liabilities $ 7,289,684 $ 891,841 $ (19,259 ) $ 8,162,266 The Group’s operational information by reportable segment for the year ended December 31, 2019 are as follows: For the year ended December 31, 2019 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 4,284,901 $ 336,595 $ — $ 4,621,496 Inter-segment 149,595 1,856 (151,451 ) — Total operating revenue $ 4,434,496 $ 338,451 $ (151,451 ) $ 4,621,496 Operating expenses 4,067,372 196,116 (151,768 ) 4,111,720 Depreciation, amortization and impairment 1,061,766 11,991 (9,700 ) 1,064,057 Operating (loss) profit (694,642 ) 130,344 10,017 (554,281 ) Interest expense (263,049 ) (36,893 ) — (299,942 ) Interest income 6,741 2,300 — 9,041 Derivative instruments (1,892 ) (272 ) — (2,164 ) Foreign exchange (24,117 ) (73 ) — (24,190 ) Equity method 1,524 — — 1,524 Income tax expense (24,042 ) 59 — (23,983 ) Net (loss) profit for the period $ (999,477 ) $ 95,465 $ 10,017 $ (893,995 ) Total Assets $ 7,219,611 $ 243,249 $ (188,950 ) $ 7,273,910 Total Liabilities $ 6,522,422 $ 880,483 $ (134,162 ) $ 7,268,743 The Group’s operational information by segment reportable 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 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 899 — — 899 Income tax expense (20,258 ) 45 — (20,213 ) Net segment profit (loss) 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 (1) Loyalty revenue for redeemed miles is found in the entry of passengers revenue. (2) 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 in the Avianca Holdings 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, 2020, 2019 and 2018 are as follows: For the years ended December 31, 2020 2019 2018 United States of America $ 297.286 $ 681,728 $ 462,091 Central America and the Caribbean 318.723 289,543 248,896 Colombia 671.272 2,378,772 2,580,979 South America (excluding Colombia) 366.290 754,574 732,586 Other 58.014 516,879 866,278 Total operating revenue $ 1,711,585 $ 4,621,496 $ 4,890,830 The Group allocates revenues by geographic area based on the point of origin of the flight. Non-current |
Seasonality
Seasonality | 12 Months Ended |
Dec. 31, 2020 | |
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Seasonality | (6) Seasonality As a consequence of the COVID-19 Normally, the results of operations for any interim period are not necessarily indicative of those for the entire year because the business is subject to seasonal fluctuations. These fluctuations are the result of high vacation and leisure demand occurring during the northern hemisphere’s summer season in the third quarter (principally in July and August) and again during the fourth quarter (principally in December). However, fluctuations in high holiday now demand will be affected by the gradual recovery of passenger confidence in the wake of the pandemic. In addition, January is typically a month in which heavy air passenger demand occurs. The lowest levels of passenger traffic are concentrated in February, March, and May. Given the proportion of fixed costs, the Company and its subsidiaries expect that quarterly operating results to continue to fluctuate from quarter to quarter. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2020 | |
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Financial risk management | (7) Financial risk management The Group has exposure to different risks from its use of financial instruments, namely, liquidity risk, commodity 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. Our primary sources of funds are cash provided by operations and cash provided by financing activities. Our primary uses of cash are for working capital, capital expenditures, operating leases and general corporate purposes. Historically, we have been able to fund our short-term capital needs with cash generated from our operations. Our long-term capital needs relate to aircraft purchases. In March 2020, governments around the world, including those of the United States, Colombia and most Latin American countries, declared states of emergency due to the spread of COVID-19, These developments negatively impacted the demand for air travel and the company’s ability to maintain its passenger operation thus severely affecting the company’s ability to maintain adequate liquidity levels. In order to mitigate the described adverse effects, we temporarily reduced our domestic as well international capacity. In addition to reducing capacity, we implemented additional cost savings and liquidity preservation measures, including a suspension on hiring of new employees, implementation of voluntary unpaid leave of absence, which more than 14,000 employees took, and temporary deferral of labor contracts, non-essential To protect and preserve the Group’s operations Avianca Holdings S.A. and certain of its affiliated entities filed voluntary petitions for chapter 11 relief under title 11 of the United States Code on May 10, 2020. On October 5, 2020, the Group received approval from the U.S. Bankruptcy court for the Southern District of New York to access its debtor-in As of December 31, 2020, a part of the bondholders joined the DIP financing as part of the debt restructuring and therefore a roll-up We believe that the above sources, including our DIP financing and cash flow generated from operating activities, are sufficient for our current working capital requirements. The following are the contractual maturities of non-derivative As of December 31, 2020 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 4,235,197 $ 4,235,197 $ 4,235,197 — — — — Long–term Debt 292,503 375,007 69,564 305,443 — — — Bonds 352,011 352,011 352,011 — — — — Use rights – IFRS 16 1,401,545 1,646,587 485,985 326,674 263,657 234,064 336,207 Total debt 6,281,256 6,608,802 5,142,757 632,117 263,657 234,064 336,207 Accounts payable 506,256 506,256 489,031 17,225 — — — Accrued Expenses 16,448 16,448 16,448 — — — — Contractual maturities $ 6,803,960 $ 7,131,506 $ 5,648,236 $ 649,342 $ 263,657 $ 234,064 $ 336,207 As of December 31, 2019 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 118,137 $ 123,734 $ 123,734 $ — $ — $ — $ — Long–term Debt 3,008,412 3,640,008 554,021 540,615 853,756 612,874 1,078,742 Bonds 531,244 698,436 105,022 43,598 43,598 506,218 — Use rights – IFRS 16 1,198,530 1,321,871 264,510 246,759 234,094 206,367 370,141 Debt – assets held for sale 490,458 490,458 490,458 — — — — Total debt 5,346,781 6,274,507 1,537,745 830,972 1,131,448 1,325,459 1,448,883 Accounts payable 542,546 542,546 530,615 11,931 — — — Accrued Expenses 87,610 87,610 87,610 — — — — Contractual maturities $ 5,976,937 $ 6,904,663 $ 2,155,970 $ 842,903 $ 1,131,448 $ 1,325,459 $ 1,448,883 (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 years ended December 31, 2020, and 2019, by $3,255 and $12,041. 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 2019. (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 loss in foreign currency is derived primarily from the depreciation of the Colombian Peso against the US Dollar. For the years ended December 31, 2020, 2019 and 2018, the Group recognized a net loss from currency exchanges of $(46,508), $(24,190) and $(9,220) respectively. 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, 2020 USD Colombian Pesos Euros Mexican Pesos Argentinean Brazilian Reals Others Total Cash and cash equivalents $ 855,733 $ 33,968 $ 14,299 $ 21,985 $ 1,883 $ 1,478 $ 6,092 $ 935,438 Trade and other receivables, net of expected credit losses 70,018 41,985 43,709 44,878 1,263 10,646 18,038 230,537 Secured debt and bonds (3,919,738 ) (3,823 ) (102,935 ) — — — — (4,026,496 ) Unsecured debt (173,632 ) (535 ) — — — — — (174,167 ) Accrued expenses (14,386 ) (755 ) (92 ) — — (1,196 ) (19 ) (16,448 ) Accounts payable (337,854 ) (96,252 ) (15,893 ) (19,354 ) (2,261 ) (4,804 ) (29,838 ) (506,256 ) Net financial position exposure $ (3519,859 ) $ (25,412 ) $ (60,912 ) $ 47,509 $ 885 $ 6,124 $(5,727 ) $(3,557,392 ) Sensitivity analysis Change forecast in exchange rate (3.78 )% (8.19 )% (4.63 )% (22.32 )% (18.44 )% Effect on profit of the yea r $ 960.57 $ 4,988 $ (2,200 ) $ (19,753 ) $ (1,129 ) December 31, 2019 USD Colombian Pesos Euros Mexican Pesos Argentinean Brazilian Others Total Cash and cash equivalents $ 209,139 $ 87,382 $ 15,111 $ 4,789 $ $ — $ 15,007 $ 342,473 Trade and other receivables, net of expected credit losses 137,692 1,474 81,982 8,591 6,637 17,764 5,499 259,639 Secured debt and bonds (4,554,328 ) (16,285 ) (120,055 ) — — — — (4,690,668 ) Unsecured debt (160,801 ) (4,854 ) — — — — — (165,655 ) Debt – Assets held for sale (449,340 ) — (41,118 ) — — — — (490,458 ) Accrued expenses (63,385 ) (19,560 ) (2,726 ) (408 ) — (1,531 ) — (87,610 ) Accounts payable (363,129 ) (51,313 ) (38,716 ) (19,258 ) — (17,437 ) (52,693 ) (542,546 ) Net financial position exposure $ (5,244,152 ) $ (3,156 ) $ (105,522 ) $ (6,286 ) $ 17,682 $ (1,204 ) $ (32,187 ) $ (5,374,825 ) Sensitivity analysis Change forecast in exchange rate (6.4 )% (0.045 )% (4.4 )% 9.1 % 2.6 % Effect on profit of the year $ 201 $ (48 ) $ 279 $ 1,617 $ (32 ) 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. These lease payments long-term lease payments at interest floating rates expose the Group to the cash flow risk. 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 $ 678,720 $ 272,013 Financial liabilities (2,675,990 ) (4,421,351 ) Interest rate swaps — 471 Total $ (1,997,270 ) $ (4,148,867 ) Floating rate instruments Financial assets $ 40,050 $ 5,685 Financial liabilities (1,759,951 ) (925,430 ) Total $ (1,719,901 ) $ (919,745 ) (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 institution (both local and international). The Group 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 Group level of liquidity. According to these three parameters, the Group 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: Notes December 31, December 31, Debt 17 $ 6,281,256 $ 5,346,781 Less: cash and cash equivalents and restricted cash 8 (935,438 ) (342,473 ) Total net debt 5,345,818 5,004,308 Total equity (deficit) (1,301,772 ) 5,167 Total Capital $ 4,044,046 $ 5,009,475 Net debt–to–capital ratio 132 % 100 % As part of the Chapter 11 reorganization plan, the Group will submit to the Court the reorganization plan that will include the trading of liabilities at a sustainable level. (g) 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, 2020 are as follows: December 31, 2020 Notes Carrying Fair value Financial assets Investments 13 $ 42,919 $ 42,919 Plan assets 21 216,548 216,548 $ 259,467 $ 259,467 Financial liabilities Short term borrowings and long–term debt 17 $ 6.281.256 $ 6,275,788 Derivative instruments 28,29 2.697 2,697 $ 6.283.953 $ 6,278,485 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, 2019 are as follows: December 31, 2019 Notes Carrying Fair value Financial assets Investments 13 $ 55,440 $ 55,440 Derivative instruments 28 536 536 Plan assets 21 204,527 204,527 $ 260,503 $ 260,503 Financial liabilities Short term borrowings and long–term debt 17 $ 5,346,781 $ 5,454,688 Derivative instruments 28,29 1,289 1,289 $ 5,348,070 $ 5,455,977 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, 2020 | |
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Cash and cash equivalents and restricted cash | (8) Cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash as of December 31, 2020, and 2019 are as follows: December 31, 2020 December 31, Cash on hand and bank deposits $ 881,617 $ 339,010 Demand and term deposits (1) 29,522 3,462 Cash and cash equivalents 911,139 342,472 Restricted cash (2) 24,299 1 Cash, cash equivalents and restricted cash $ 935,438 $ 342,473 (1) As of December 31, 2020, and December 31, 2019, within the cash equivalents, there are demand and term deposits that amounted to $ 29,522 and $ 3,462, respectively. The use of term deposits depends on the cash requirements of the Group. As of December 31, 2020, term deposits accrue annual interest rates between 0.62% and 3.91% in Colombian pesos and between 3.54% and 5.38% in dollars. As of December 31, 2019, term deposits accrue annual interest rates between 3.61% and 5.21% in Colombian pesos and between 1.94% and 6.02% in dollars. (2) As of December 31, 2020, the total restricted cash will hedge events or claims against the Group. These resources have not risk of change in value on the time and are not available for general use within the Group. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2020 | |
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Trade and other receivables | (9) Trade and other receivables Trade and other receivables as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Trade (1) $ 130,009 $ 222,694 Employee advances 3,835 3,267 Other (2) 145,315 72,331 $ 279,159 $ 298,292 Less provision for expected credit losses (46,324 ) (42,001 ) Total $ 232,835 $ 256,291 Net current $ 229,917 $ 233,722 Net non-current 2,918 22,569 Total $ 232,835 $ 256,291 Trade receivables are non-interest (1) As of December 31, 2020, trade accounts receivable are mainly comprised of: $ 69,000 pertaining to pending deposits, $ 102,000 corresponding to debtors and $ 58,000 to other types of debtors. Its decrease is mainly due to the suspension of the operation. (2) As of December 2020, corresponds mainly to accounts receivables to Chelsea Securities, S.A for $34,980, USAV Flow for $59,295, miles trust contract for $15,405, Rolls Royce for $11,423, Luis Montes de Oca for $2,770, Airbus for $1,397. As of December 2019, corresponds mainly to amounts charged to Chelsea Securities S.A. for $34.980. Changes during the year in the provision for expected credit losses for as follows: December 31, 2020 December 31, 2019 Balance at beginning of year $ 42,001 $ 12,430 Provision bad debt expense (1) 12,069 50,703 Reversal against the allowance (7,746 ) (21,132 ) Total $ 46,324 $ 42,001 (1) As December 31, 2019, includes impairment of the account receivable assigned by Grupo Aeromar SA of CV to Chelsea Securities, S.A., this account receivable is unsecured, originated in a potential investment of the Group in the Mexican market, a decision to the invest wasn’t approved The aging of trade receivables at the end of the reporting period is as follows: December 31, December 31, Neither past due nor impaired $ 76,894 $ 129,732 Past due 1–30 days 535 24,259 Past due 31–90 days 13,168 16,896 Past due 91 days 39,412 51,807 Total trade $ 130,009 $ 222,694 Less provision for expected credit losses (11,344 ) (7,021 ) Trade receivables, net of expected credit losses $ 118,665 $ 215,673 |
Balances and transactions with
Balances and transactions with related parties | 12 Months Ended |
Dec. 31, 2020 | |
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Balances and transactions with related parties | (10) Balances and transactions with related parties The following is a summary of transactions and balances of related parties for the periods ended December 31, 2020 and 2019: Company Country December 31, 2020 December 31, 2019 Receivables Payables Revenues Expenses Receivables Payables Revenues Expenses OceanAir Linhas Aéreas. S.A. Brasil — 1,994 124 2,653 2,906 2,178 6,988 26,712 Opera Transporte y logística Integral S.A.S. Colombia — 443 — 3,329 — 448 6 4,390 Empresariales S.A.S. Colombia — 279 — 1,111 — 475 — 2,755 Global Operadora Hotelera S.A.S Colombia 3 4 2 90 4 368 6 2,532 Corp Hotelera Internac.. S.A. El Salvador — 62 — — — 131 — 731 Servicios Aéreos Nacionales S.A. Costa Rica — — — — 180 104 213 — Turbo Leasing Corp. Bahamas — — — — 196 — 196 — Other 154 — — 19 62 9 3 58 Subtotal $ 157 $ 2,782 $ 126 $ 7,202 $ 3,348 $ 3,713 $ 7,412 $ 37,178 Receivables Payables Receivables Payables Short–term $ 157 $ 2,782 $ 3,348 $ 3,713 On December 31, 2020, the Avianca Holdings S.A. Group settled the liabilities and assets of Avianca Perú S.A., as a result of this transaction, the Group lost control and stopped consolidating the financial statements of Avianca Perú S.A. as of December 31, 2020. During the period, a provision for uncollectible accounts has been recognized, in with OceanAir Linhas Aéreas for $ 10,153 USD, ($ 7,627 USD in 2019), which corresponds mainly to aircraft rentals and interline loads. The following is a description of the nature of the services provided by and for related parties. These transactions include: Related party Nature of Services Hotelería Internacional S.A. Corporación Hotelera Internacional, S.A. Accommodation services for crews and employees of the Companies. Empresariales S.A.S. Transportation services for employees of Avianca, S.A. OceanAir Linhas Aéreas, S.A. – in judicial reorganization On July 14, 2020, OceanAir was declared bankrupt. All contracts to date are not in force given the current situation of OceanAir and are not being executed, therefore, Avianca sent OceanAir a notification of termination of the contracts, so there are no more commercial relationships between the companies. Opera Transporte y logística Integral SAS, before Transportadora del Meta S.A.S. It provides Avianca, S.A. ground transportation services for cargo / courier shipments Key management personnel compensation expense During the year ended December 31, 2020 and 2019 the short-term employee benefits for key management personnel are $24,393 and $22,402, respectively. 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: For the year ended December 31, 2020 For the year ended December 31, 2019 Salaries $ 9,249 $ 12,467 Bonuses 9,731 6,658 Social benefits 4,638 2,149 Compensation 18 222 Others 757 906 Total $ 24,393 $ 22,402 |
Expendable spare parts and supp
Expendable spare parts and supplies, net of provision for obsolescence | 12 Months Ended |
Dec. 31, 2020 | |
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Expendable spare parts and supplies, net of provision for obsolescence | (11) Expendable spare parts and supplies, net of provision for obsolescence Expendable spare parts and supplies as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Expendable spare parts $ 73,502 $ 79,427 Supplies 7,931 8,907 Total $ 81,433 $ 88,334 For the years ended December 31, 2020 and 2019 expendable spare parts and supplies in the amount of $35,638 and $63,229, respectively, were recognized as maintenance expense. Changes during the year in the provision of obsolescence for expandable spare parts and suppliers as follows: December 31, 2020 December 31, 2019 Balance at beginning of year $ 5,330 $ 6,505 Expense (reversal) for obsolete inventory (32 ) 2,075 Write-offs against the allowance (820 ) (3,250 ) Balance at end of year $ 4,478 $ 5,330 |
Prepayments
Prepayments | 12 Months Ended |
Dec. 31, 2020 | |
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Prepayments | (12) Prepayments As of December 31, 2020, and 2019 prepaid balances are as follows: December 31, 2020 December 31, 2019 Prepaid commissions (1) $ 19,408 $ 41,727 Prepaid compensations clients 1,870 13,768 Premiums for insurance policies 10,241 4,716 Other 4,728 8,801 Total $ 36,247 $ 69,012 (1) Advance payment made to IATA for service charges of 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. |
Short term investments, deposit
Short term investments, deposits and other assets | 12 Months Ended |
Dec. 31, 2020 | |
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Short term investments, deposits and other assets | (13) Short term investments, deposits and other assets Short term investments, deposits and other assets as of December 31, 2020 and 2019 are as follows: Notes December 31, 2020 December 31, 2019 Short term investments (1) $ 42,919 $ 55,440 Total $ 42,919 $ 55,440 Deposits and other assets – short term: Deposits with lessors (2) $ 19,944 $ 11,963 Guarantee deposits (3) 6,509 8,657 Others (4) 11,091 18,030 Subtotal 37,544 38,650 Fair value of derivative instruments 31 — 525 Total $ 37,544 $ 39,175 Deposits and other assets – long term: Deposits with lessors (2) $ 41,098 $ 35,374 Long term investments 1,339 — Guarantee deposits (3) 12,262 10,032 Others (4) 848 8,657 Subtotal 55,547 54,063 Fair value of derivative instruments 31 — 11 Total $ 55,547 $ 54,074 (1) The short-term classification corresponds to funds invested for terms of less than one year; Excess cash in treasury is invested in accordance with the Group’s Investment Policy. Otherwise they are classified as long term. (2) 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. (3) Corresponds mainly to amounts paid to suppliers in connections with leasehold of airport facilities, among other service agreements. (4) Corresponds mainly to other security deposits, national tax refund titles and deferred charges and deferred charge. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
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Property and equipment, net | (14) Property and equipment, net The main additions correspond to: • Flight equipment: The main additions during the year ended December 31, 2020, correspond to sale and lease back transactions of nine Airbus A320 aircraft for $197,707 (recognized as rights of use) with Avolon Aerospace Leasing Limited and $7,581 for additions of connectivity and densification projects. During the year ended December 31, 2019, the Group acquired three Airbus A320N aircraft for $33,500, $31,111, and $30,242 one Boeing 787-9 During 2020, aircraft are reclassified from assets held for sale to property and equipment, correspond to of the aircraft 2 A319, 3 A320, 2 A330, 1 A330F and 4 A321 for a total amount of $ 352,867 COVID-19. The main disposals as of December 31, 2020, correspond to the following rejected aircraft leases, 2 A319, 2 A320, 2 A321, 2 A330, y 4 ATR-72 • Capitalized maintenance: Additions reported for the year ended December 31, 2020 and 2019 correspond to major fuselage, train and APU repairs for $ 30,694 and $ 16,658 also to major engine repairs for $ 43,169 and $ 142,514, respectively. As of December 31, 2020 and 2019, withdrawals are recognized for $ 18,726 and $ 6,745 for structural repair, respectively, and $ 104,766 and $ 104,886 for major repairs of Engines, OVH and LLP, respectively. • Reimbursement of predelivery payments: As of December 31, 2020, the Group suspended the capitalization of interest on PDP’S, mainly due to the cessation of advance payments to aircraft manufacturers. As of December 31, 2020, $ 19,794 was written off for PDPs, for future orders. As of December 31, 2019, the Group capitalized borrowing costs of $8,778 at an average interest rate of 7.01%. During 2020, the Group renegotiated aircraft purchase contracts for $ 58,548 of which $ 50,004 were received in cash, $ 4,329 was retained for future orders and $4,219 was to cross future predelivery payments. During the year ended December 31, 2019, the Group signed an aircraft purchase contract assignment, assigning 3 Boeing 787-9 90,312 • Administrative Property: As of December 31, 2020, additions are mainly recognized for improvements and adherence to the Crew Training building $ 2,567; $ 1,074 is recognized for revaluation. Avianca Holdings S.A.’s subsequent measurement policy is to revalue to recognize the fair value of land and buildings, which make up the property category. The fair values of properties are determined using comparable market methods. This means that the valuations made by the experts through the appraisals are based on market prices, adjusted according to individual characteristics, differences in nature, location or condition of the property. Impairment In the year 2019, the impairment loss of $470,661 represented: • Impairment of fleet Embraer E-190 • Administrative properties: Impairment of administrative property located in Venezuela $14,867 taking into consideration the significantly high levels of inflation that exist in Venezuela and the volatility of foreign currency exchange rates resulting from continued political instability, we record the impairment charges of value of our five offices in Venezuela. As a result of these impairment charges, the remaining book value of these administrative properties is zero. In the year 2019 the process of intention to sell these offices was reactivated. • Others: The main additions during the year ended December 31, 2020 correspond to assets in progress $ 2,241, tools $ 3,644, computer and security equipment $ 1,673 and other non-aeronautical • The main drops as of December 31, 2020 correspond to Ground support equipment and ramp $ 22,430, property improvements $ 13,397, tools and other equipment $ 5,624. Flight equipment, property and other equipment as of December 31, 2020, and 2019 is as follows: Flight Capitalized Rotable parts Reimbursement Administrative Others Total Gross: December 31, 2019 $ 4,933,056 $ 593,794 $ 173,318 $ 181,327 $ 138,599 $ 319,138 $ 6,339,232 Additions 205,289 73,863 6,812 10,118 2,567 11,153 309,803 Disposals (240,812 ) (123,494 ) (18,140 ) (79,463 ) — (41,451 ) (503,360 ) Transfers 1,710 2,624 (4,301 ) — 414 (447 ) — Reclassification assets held for sale 352,867 — — — — — 352,867 Revaluation — — — — 1,074 — 1,074 December 31, 2020 $ 5,252,110 $ 546,787 $ 157,689 $ 111,982 $ 142,654 $ 288,394 $ 6,499,616 Accumulated depreciation: December 31, 2019 $ 945,220 $ 225,973 $ 47,277 $ — $ 27,487 $ 139,958 $ 1,385,915 Additions 358,400 88,666 7,307 — 2,752 25,694 482,819 Impairment — — — — 1,070 — 1,070 Disposals (38,153 ) (114,911 ) (6,702 ) — — (21,966 ) (181,732 ) Transfers (1,823 ) 2,624 (769 ) — 414 (446 ) — December 31, 2020 $ 1,263,644 $ 202,352 $ 47,113 $ — $ 31,723 $ 143,240 $ 1,688,072 Net: December 31, 2019 $ 3,987,836 $ 367,821 $ 126,041 $ 181,327 $ 111,112 $ 179,180 $ 4,953,317 December 31, 2020 $ 3,988,466 $ 344,435 $ 110,576 $ 111,982 $ 110,931 $ 145,154 $ 4,811,544 Flight equipment, property and other equipment as of December 31, 2019 and December 31, 2018 is as follows: Flight Capitalized Rotable Reimbursement Administrative Others Total Gross: December 31, 2018 $ 5,244,160 $ 791,004 $ 225,841 $ 260,000 $ 135,838 $ 263,433 $ 6,920,276 Adoption IFRS 16 1,010,200 — — — — 69,533 1,079,733 January 1, 2019 $ 6,254,360 $ 791,004 $ 225,841 $ 260,000 $ 135,838 $ 332,966 $ 8,000,009 Additions 303,476 219,866 16,196 21,324 — 38,198 599,060 Disposals (48,381 ) (114,323 ) (43,207 ) (95,848 ) — (46,583 ) (348,342 ) Transfers 18,237 (8,554 ) (5,228 ) (4,149 ) — (306 ) — Sale of subsidiaries (31,270 ) (5,424 ) (198 ) — — (2,739 ) (39,631 ) Transfers to assets held for sale (1,563,366 ) (288,775 ) (20,086 ) — — (2,398 ) (1,874,625 ) Revaluation — — — — 2,761 — 2,761 December 31, 2019 $ 4,933,056 $ 593,794 $ 173,318 $ 181,327 $ 138,599 $ 319,138 $ 6,339,232 Accumulated depreciation: December 31, 2018 $ 1,028,191 $ 364,976 $ 57,238 $ — $ 10,789 $ 145,765 $ 1,606,959 Additions 341,699 157,572 20,047 — 2,178 26,780 548,276 Impairment 455,794 — — — 14,867 — 470,661 Disposals (39,166 ) (111,793 ) (12,960 ) — (347 ) (28,396 ) (192,662 ) Transfers 7,682 (6,985 ) (637 ) — — (60 ) — Sale of subsidiaries (11,560 ) (3,597 ) (34 ) — — (1,741 ) (16,932 ) Transfers to assets held for sale (837,420 ) (174,200 ) (16,377 ) — — (2,390 ) (1,030,387 ) December 31, 2019 $ 945,220 $ 225,973 $ 47,277 $ — $ 27,487 $ 139,958 $ 1,385,915 Net: December 31, 2018 $ 4,215,969 $ 426,028 $ 168,603 $ 260,000 $ 125,049 $ 117,668 $ 5,313,317 December 31, 2019 $ 3,987,836 $ 367,821 $ 126,041 $ 181,327 $ 111,112 $ 179,180 $ 4,953,317 |
Intangible assets and good will
Intangible assets and good will, net | 12 Months Ended |
Dec. 31, 2020 | |
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Intangible assets and good will, net | (15) Intangible assets and goodwill, net Intangible assets and goodwill, net of amortization as of December 31, 2020 and 2019 are follows: December 31, 2020 December 31, 2019 Routes $ 29,707 $ 31,911 Trademarks 3,938 3,938 Software and webpages 147,247 158,690 Other intangible rights — 2,935 Subtotal 180,892 197,474 Goodwill 308,033 308,033 Total Intangible Assets $ 488,925 $ 505,507 The following is the detail of intangible assets as of December 31, 2020 and 2019: Goodwill Routes Trade- Software & Others Total Cost: December 31, 2019 $ 311,180 $ 52,481 $ 3,938 $ 282,126 $ 27,521 $ 677,246 Additions (1) — — — 43,764 — 43,764 Disposals (1) — — — (10,171 ) — (10,171 ) December 31, 2020 $ 311,180 $ 52,481 $ 3,938 $ 315,719 $ 27,521 $ 710,839 Accumulated Amortization and Impairment Losses: December 31, 2019 $ 3,147 $ 20,570 $ — $ 123,436 $ 24,586 $ 171,739 Amortization for the year — 2,204 — 45,036 2,935 50,175 December 31, 2020 $ 3,147 $ 22,774 — $ 168,472 $ 27,521 $ 221,914 Carrying Amounts: December 31, 2019 $ 308,033 $ 31,911 $ 3,938 $ 158,690 $ 2,935 $ 505,507 December 31, 2020 $ 308,033 $ 29,707 $ 3,938 $ 147,247 — $ 488,925 (1) The main additions of other intangibles correspond to SAP project for $33,346, digital transformation project for $2,387, CRM project $2,179, Core System project $1,108, Software and webpages for $4,071. In relation to deconsolidation of Avianca Perú S.A. there is a disposal of $10,171. The following is the detail of intangible assets as of December 31, 2019 and 2018: Goodwill Routes Trade- Software & Others (1) Total Cost: December 31, 2018 $ 311,180 $ 52,481 $ 3,959 $ 171,400 $ 101,447 $ 640,467 Additions (1) — — — 34,751 2,099 36,850 Transfers — — — 76,025 (76,025 ) — Disposals — — (21 ) — — (21 ) Sale of subsidiaries — — — (50 ) — (50 ) December 31, 2019 $ 311,180 $ 52,481 $ 3,938 $ 282,126 $ 27,521 $ 677,246 Accumulated Amortization and Impairment Losses: December 31, 2018 $ 3,147 $ 18,182 $ — $ 86,930 $ 18,405 $ 126,664 Amortization for the year — 2,388 — 36,551 6,181 45,120 Sale of subsidiaries — — — (45 ) — (45 ) December 31, 2019 $ 3,147 $ 20,570 $ — $ 123,436 $ 24,586 $ 171,739 Carrying Amounts: December 31, 2018 $ 308,033 $ 34,299 $ 3,959 $ 84,470 $ 83,042 $ 513,803 December 31, 2019 $ 308,033 $ 31,911 $ 3,938 $ 158,690 $ 2,935 $ 505,507 (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. (15.1) Goodwill and intangible assets with indefinite useful life For the purpose of verifying the impairment of goodwill acquired through combinations of business and other intangibles with indefinite useful life, acquired before 2020, have been assigned to the air transport segment, since the Group considers that according to the operational and financial synergies between the different companies of the Group, this is the most appropriate and least arbitrary to measure the recoverable amount. In line with operative model of the Group. The carrying value of the goodwill allocated to the air transport segment is as follows: December 31, 2020 December 31, 2019 Goodwill $ 308,033 $ 308,033 Routes 23,463 23,463 Trademarks 3,938 3,938 The group performed its annual impairment test in the fourth quarter of 2020 consistently with previous years. As of December 31, 2020, and 2019, the Group did not identify potential impairment of goodwill or intangible assets, nor on equipment properties. Basis for calculating recoverable amount The recoverable amounts of CGUs have been measured based on their value-in-use. Value-in-use Cash flows extrapolated beyond the five-year period are projected to increase based on long-term growth rates, Cash flow projections are discounted using the CGU’s pre-tax Under the Board of directors approved business plan in the fourth quarter of 2020 and knows the impacts generated by COVID 19, The cash flows that have been used in the value-in-use 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. The main assumptions used in the calculations of the value in use are as follows: December 31, 2020 December 31, 2019 Carrying amount of goodwill, routes and trademarks with indefinite life $ 335,434 $ 335,434 Impairment losses — — Revenue growth p.a. over planning period 2.5% to 24.8% 2.3% to 5% Operating income over planning period (5.9%) to 11.4% 5.2% to 8.8% Capital expenditures over planning period 1.24% to 3.86% (0.2%) to 12.69% Duration of planning period 5 years 5 years Revenue growth p.a. after planning period 3.7% 4.3% Operating Income after planning period 11.50% 10.00% Capital expenditures after planning period 2.43% 6.43% Business Enterprise Value 5,724,540 9,269,446 Discount rate (1) 14.11% 8.72% As of December 31, 2020, the net book value of the Air Transport UGE, including intangible assets with an indefinite life, amounts to $ 3,190,059. (1) As a result of the distortion caused by the contingency of COVID-19 |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Assets held for sale | (16) Assets held for sale In August 2019, the Group began the process of selling 10 Airbus A318, 2 Airbus A319, 16 Airbus A320, 4 Airbus A321, 2 Airbus A330, 1 Airbus A330F and 10 Embraer E-190, Assets held for sale as of December 31, 2020 and December 31, 2019 consisted of the following assets. December 31, December 31, Airbus aircraft (1,2) 128,640 Airbus aircraft – Sale and subsequent lease (1,2) 489,149 Parts inventory (3) 884 63,264 Total assets held for sale $ 884 $ 681,053 Liabilities associated with the assets held for sale 490,458 Total Debt assets held for sale $ — $ 490,458 (1) During 2020, the aircraft: 2 Airbus A319, 3 Airbus A320, 4 Airbus A321, 2 Airbus A330 and 1 Airbus A330F, were classified as part of property and equipment for $ 352,867 (See note 14) due to their The sale does not meet the criteria of “highly probable”, derived from the current situation of the Group due to the effects of COVID-19 (2) In December 2019, the Group signed a letter of intent for the sale and subsequent lease agreement with Avolon Aerospace Leasing Limited in relation to 15 aircraft (Airbus A320 and A321), of which 9 Airbus A320 aircraft were sold during 2020 with subsequent lease, for a value of $ 263,293 and this operation generated a loss on sale of $ 1,628. (3) As of December 31, 2020, 10 Embraer 190s were sold for and this operation generated a loss on sale of (4) The assets classified as held for sale belong to the operating segment of air transportation. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
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Debt | (17) Debt Loans and borrowings, measured at amortized cost, as of December 31, 2020 and December 31, 2019 are summarized as follows: December 31, 2020 December 31, 2019 Current: Short–term borrowings and current portion of long–term debt $ 4,235,197 $ 569,292 Current portion-bonds 352,011 65,632 Short-term aircraft rentals - right of use 414,410 229,260 Short-term other rentals - right of use 9,476 7,860 $ 5,011,094 $ 872,044 Noncurrent: Long–term debt $ 292,503 $ 2,557,257 Non-current — 465,612 Long-term aircraft rentals – right of use 929,789 899,265 Long-term other rentals – right of use 47,870 62,145 $ 1,270,162 $ 3,984,279 As of December 31, 2020, the debt is classified as follows: 31 de December, 2020 Guaranteed $ 4,026,496 Not Guaranteed 174,167 Subtotal $ 4,200,663 Debt in Chapter 11 $ 4,200,663 Loans 397,630 (Debtor in Possession) DIP 1,682,963 Total $ 6,281,256 The debt of companies that filed voluntary petitions to the Bankruptcy Court of the Southern District of New York for protection under Chapter 11 of the United States Bankruptcy Code (11 USC § 101, et, seq) as of May 10, 2020 was $4,829,070. During the hearing held on June 11, 2020, the Court approved a motion to reject 12 aircraft, of which 10 corresponded to companies under the protection of Chapter 11 and had a debt of $259,347. As of December 31, 2020, the total debt of the companies that filed for protection under Chapter 11 is $4,200,663. The total debt for the 12 rejected aircraft is $277,091. Non-compliance As of December 31, 2020, we have reclassified long-term debt to short-term debt for $2,073,197 as a result of default on the loan conditions, derived from non-payment COVID-19 Additionally, aircraft rental payments under operating lease were suspended for $ 157 million. The long-term portion related to these leases is not reclassified to the short-term, as its accelerated payment is not required. Terms and conditions of the Group’s outstanding obligations for periods ended December 31, 2020 and December 31, 2019, are as follows: December 31, 2020 Due Weighted interest rate Nominal Carrying Short–term borrowings 2022 6.00 % $ 108,257 $ 99,857 Long–term debt 2029 6.91 % 4,975,853 4,427,843 Bonds 2023 8.88 % 550,000 352,011 Aircraft rentals 2031 4.92 % 1,266,489 1,344,199 Other rentals 2037 7.16 % 87,405 57,346 Total $ 6,988,004 $ 6,281,256 December 31, 2019 Due Weighted average interest rate Nominal Carrying Short–term borrowings 2020 6.43 % $ 128,671 $ 118,137 Long–term debt 2029 4.68 % 4,185,526 3,008,412 Bonds 2023 9.93 % 550,000 531,244 Aircraft rentals 2031 4.92 % 1,347,219 1,128,525 Other rentals 2037 7.37 % 87,405 70,005 Total $ 6,298,821 $ 4,856,323 Below the detail of the debt balance by type of loan: December 31, 2020 December 31, 2019 Aircraft $ 1,883,281 $ 1,832,500 Corporate 2,644,419 1,294,049 Bonds 352,011 531,244 Right of use IFRS 16 1,401,545 1,198,530 $ 6,281,256 $ 4,856,323 The main additions for the year ended December 31, 2020 and 2019 corresponds to: • During 2020, the Group recognized rights of use debt for $191,819 for nine Airbus A320. • During 2020, the Group obtained new debt by $ 1.088,371 roll-up • During 2019, the Group obtained $165,838 under loans in order to refinance three A319, nine A320, two A321 and two A330 aircraft. In addition, there were registered use rights debt for $313,001 for three Airbus A320N, Boeing 787-9 • Loans for general purposes of: • During 2020, the Group obtained $77,917 for working capital purposes, It includes a loan with Citadel for $51,000 through their administrative agent UMB Bank N,A, at a rate 9% for a term of 1 year, and a loan acquired by LifeMiles for $ 20,000 4,5 2 years • During 2019, the Group obtained $459,717 for working capital. Mainly, it corresponds to a $324,000 loan with Kingsland and United Airlines and private investors through their administrative agent UMB Bank N.A. at a rate 3% for a term of 4 years. Also, there are loans acquired by LifeMiles, $100,000 at a rate Libor + 5.5 for a term of 3 years. Secured loan agreement with United Airlines Inc, and Kingsland International Group S.A. On November 18, 2019, Avianca Holdings S,A signed a $250,000 convertible secured loan agreement with United Airlines, Inc, (“United”) and Kingsland International Group, S.A. or its affiliates (collectively, “Kingsland”), as creditors, which was added for $ 74,000 for a total of $324,000. The main terms and conditions of convertible loan are: • Expiration: Four years from the date of initial disbursement. • Interest: 3% annual PIK. • Guarantee: A pledge on the shares of the most relevant subsidiaries of the Company. • Conversion Price: $4.6217 (in dollars) for each ADS, representing a 35% surcharge to the weighted average price volume at 90 days • Mandatory conversion: The Company may require that the entire amount due under the Convertible Loan, together with all the corresponding PIK interest and cash caused, be converted into the Company’s capital in the event that the following conditions are met: (i) (a) Company ADSs are priced at a price of $7.00 (in dollars), or greater, at a weighted average price volume at 112 of 150 consecutive business days (if such conversion occurs after the first anniversary of the Convertible Loan disbursement) or (b) the Company ADSs are quoted at a price of $7.00 (in dollars), or greater, at a weighted price volume of 90 consecutive 120 business days (if such conversion occurs after the first anniversary of the disbursement of the Convertible Loan), (ii) the total average consolidated cash balance of the Company is equal to or exceeds $700,000 in the immediately preceding six -month period, (iii) the non-existence non-existence • According to the contractual conditions, this financial instrument is classified as debt. However, as of December 31, 2020, the obligations that had been contracted with United Airlines, Inc and Kingsland International Group, S.A. or its affiliates were incorporated into financing under the Debtor in Possession (“DIP”) structure, as part of Avianca Holdings’ debt restructuring. Senior bonds As part of the Avianca Holdings debt reprofiling program, on December 31, 2019, the automatic and mandatory exchange of $ 484,419 of the aggregate principal amount of the Guaranteed Senior Bonds issued and in circulation with a 8.375% coupon with maturity in 2020 for an Amount of nominal equivalent Senior Guaranteed, with a coupon of 9.00% and maturity in 2023 (the “New Bonds”), The non-exchanged As of December 31, 2020, and December 31, 2019 the Senior Notes outstanding, and the corresponding balances are as follows: • Initial issue – existing bonds Issuing entities Original Total placed in Balance as of December 31, December 31, 2020 2019 Avianca Holdings S.A., Avianca Leasing LLC and Grupo Taca Holdings Limited USD 550,000 $ 71,073 $ 65,632 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 $367 million. Pending bonds $ 65,581 aggregate capital amount of 8.375% Senior Bonds payable in 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 (a): The Senior Notes matured on May 10, 2020 (a) Due to the COVID-19 • New bonds Issuing entities Original Total placed in Balance as of December 31, December 31, 2020 2019 Avianca Holdings S.A. (1) USD 484,419 $ 280,938 $ 465,612 Issuers: Avianca Holdings S.A. 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 $367 million. Pending bonds $484,419 aggregate capital amount of 9.00% Senior Bonds payable in 2023. Initial Issue Date: December 31, 2019. Issue Amount: $484,419 Interest: The Senior Notes will bear interest at a fixed rate of 9.00% per year, The first issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on November 10, Interest will accrue from May 10, 2020, The interest are accumulated from December 31, 2019. Transaction costs The transaction costs associated with this new bond issue were $18,807, which are presented as a lower value of the initial carry amounts. Maturity Date: The Senior Notes will mature on May 10, 2023 (1) As of December 31, 2020, as part of debt restructuring, a Roll-up Future payments on long–term debt The following future payments including interests on long–term debt for the periods ended December 31, 2020 and December 31, 2019. The amounts are gross and undiscounted and include contractual interest payments and exclude the impact of netting agreements. Aircraft and corporate debt Years One Two Three Four Five and Total December 31, 2020 $ 4,304,761 $ 305,443 $ — $ — $ — $ 4,610,204 December 31, 2019 $ 554,021 $ 540,615 $ 853,756 $ 612,874 $ 1,078,742 $ 3,640,008 Bonds Years One Two Three Four Five and Total December 31, 2020 $ 352,011 $ — $ — $ — $ — $ 352,011 December 31, 2019 $ 105,022 $ 43,598 $ 43,598 $ 506,218 $ — $ 698,436 Aircraft rights of use Years One Two Three Four Five and Total December 31, 2020 $ 471,635 $ 319,849 $ 258,452 $ 229,118 $ 262,097 $ 1,541,151 December 31, 2019 $ 256,192 $ 238,618 $ 226,537 $ 198,880 $ 323,329 $ 1,243,556 Other rights of use Years One Two Three Four Five and Total December 31, 2020 $ 14,350 $ 6,825 $ 5,205 $ 4,946 $ 74,110 $ 105,436 December 31, 2019 $ 8,318 $ 8,141 $ 7,557 $ 7,487 $ 46,812 $ 78,315 Changes in liabilities derived from financing activities at December 31, 2020 January 1, New (1) New Leases (2) Financial Payments Interest Foreign Reclassification (4,5) December 31, 2020 Current interest-bearing loans and borrowings (excluding items listed below) $ 118,137 $ 51,223 $ — $ 6,707 $ (14,447 ) $ (2,400 ) $ (9,363 ) $ (50,000 ) $ 99,857 Current portion of long-term credits (excluding items listed below) $ 451,155 $ 1,048,941 $ — $ 174,384 $ (269,357 ) $ (102,713 ) $ (203,479 ) $ 3,036,409 $ 4,135,340 Current Bonds $ 65,632 $ — $ — $ 21,475 $ 85 $ — $ — $ 264,819 $ 352,011 Non-current $ 465,612 $ — $ — $ 2,314 $ — $ — $ 16,493 $ (484,419 ) $ — Non-current $ 2,557,257 $ 12,916 $ — $ — $ — $ — $ (1,319 ) $ (2,276,351 ) $ 292,503 Aircraft rentals – right of use $ 1,128,525 $ — $ 191,819 $ 79,730 $ (52,729 ) $ (28,919 ) $ 25,773 $ — $ 1,344,199 Other rentals – right of use $ 70,005 $ — $ 15 $ 1,688 $ (14,400 ) $ (2,031 ) $ 2,069 $ — $ 57,346 Total liabilities from financing activities $ 4,856,323 $ 1,113,080 $ 191,834 $ 286,298 $ (350,848 ) $ (136,063 ) $ (169,826 ) $ 490,458 $ 6,281,256 (1) The value indicated in the cash flow is $ 944,580, the difference corresponding to: $168,500 for the acquisition of Lifemiles. The transaction costs of the DIP financing contracts amount to $42,516. (2) Property and equipment acquired during the period under financial and operating lease; These movements have no effect on the consolidated statement of cash flows. (3) As part of reorganization proceedings on Chapter 11, 8 aircraft of financial lease and 4 aircraft recognized as rights of use were rejected. (4) $490,458 it was reclassified from liabilities associated with the assets held for sale to short-term and long-term debt, Likewise, a reclassification of long-term short-term debt of $2,073,197 has been recognized for purposes of non-compliance (5) As part of the debt restructuring, the Company Rolled-up Changes in liabilities derived from financing activities at December 31, 2019 January 1, Adoption New (2) New Leases (1) Financial Payments Interest Foreign Reclassification (3) December 31, Current interest-bearing loans and borrowings (excluding items listed below) $ 119,866 $ — $ 26,717 $ — $ 7,563 $ (27,833 ) $ (7,207 ) $ (969 ) $ — $ 118,137 Current portion of long-term credits (excluding items listed below) 469,500 — 144,783 — 155,444 (378,893 ) (162,096 ) (6,976 ) 229,393 451,155 Current Bonds 587,292 — — — 47,112 (26,820 ) (53,866 ) (3,667 ) (484,419 ) 65,632 Non-current — — 465,612 — — — — — — 465,612 Non-current 2,830,922 — 454,055 — (7,869 ) (719,851 ) 2,557,257 Aircraft rentals – right of use — 1,010,200 — 313,001 49,081 (194,676 ) (49,081 ) — — 1,128,525 Other rentals – right of use — 69,533 — 9,144 2,804 (9,518 ) (2,804 ) 846 — 70,005 Total liabilities from financing activities $ 4,007,580 $ 1,079,733 $ 1,091,167 $ 322,145 $ 262,004 $ (637,740 ) $ (275,054 ) $ (18,635 ) $ (974,877 ) $ 4,856,323 (1) Goods and equipment acquired during the period under finance and operative lease; these movements have no effect on the consolidated statement of cash flows. (2) The value indicated in the cash flow is $ 616,555, the difference of $ 465,612 corresponds to the value of the bonds exchanged ($484,419) in December 2019 less transaction costs ($18,807) and $9,000 corresponds to a loan acquired by Aerounion for the acquisition of the Airbus A330 aircraft with Scotiabank Bank, a movement that is not shown because it is related to property and equipment. (3) A reclassification of long-term short-term debt of $34,407 has been made for purposes of non-compliance |
Accounts payable
Accounts payable | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Accounts payable | (18) Accounts payable Accounts payable as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Current: Trade accounts payable $ 381,486 $ 302,414 Taxes no related to rent (1) 105,046 210,330 Social Charges (2) 1,766 327 Other payables (3) 733 17,544 Total $ 489,031 $ 530,615 Non-Current: Trade accounts payable 5,086 2,112 Social Charges (2) 2,070 2,190 Other payables (3) 10,069 7,629 Total $ 17,225 $ 11,931 (1) These corresponds to taxes and fees charged to passengers that will be paid to the government authority such as airport taxes, departure and entry taxes to countries, etc. In addition to VAT and VAT withholding payable and that due to the COVID-19 (2) Represent payroll taxes and contributions based on salaries and compensation paid to employees of the Group in the various jurisdictions in which it operates. (3) The other accounts payable mainly include provisions for travel expenses, provisions for fees and accrued interest. As well as projects related to aircraft that are in the long term. As of December 31, 2020, the accounts payable prior to entering Chapter 11 of the companies that availed themselves of this protection subject to compromise have a value of $261,126. |
Accrued expenses
Accrued expenses | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Accrued expenses | (19) Accrued expenses Accrued expenses as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Operating expenses (1) $ 16,448 $ 82,117 Other accrued expenses (2) — 5,493 Total $ 16,448 $ 87,610 (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. As of December 31, 2020, the Accrued expenses prior to entering Chapter 11 of the companies that availed themselves of this protection subject to compromise have a value of $22. |
Provisions for return condition
Provisions for return conditions | 12 Months Ended |
Dec. 31, 2020 | |
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Provisions for return conditions | (20) 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, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Current $ 22,277 $ 21,963 Non – current 138,562 122,425 Total $ 160,839 $ 144,388 Changes in provisions for return conditions as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Balances at beginning of year $ 144,388 $ 130,160 Provisions made 25,435 65,671 Provisions reversed (6,475 ) (49,557 ) Provisions used (2,509 ) (1,886 ) Balances at end of year $ 160,839 $ 144,388 As of December 31, 2020, there is an increase in maintenance reserves, mainly explained by changes in the scheduling of maintenance visits, incorporation of aircraft and start of provision of spare engines, updating of the present value of the provision and contract extensions. |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2020 | |
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Employee benefits | (21) Employee benefits Employee benefits as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Defined benefit plan $ 143,684 $ 156,732 Other benefits short term 91,176 105,792 Other benefits long term 3,736 4,491 Total $ 238,596 $ 267,015 Current $ 135,056 $ 148,678 Non – current 103,540 118,337 Total $ 238,596 267,015 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, 2020 and 2019. December 31, 2020 December 31, 2019 Fair value of plan assets $ (216,548 ) $ (204,527 ) Present value of the obligation 360,232 361,259 Total employee benefit liability $ 143,684 $ 156,732 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, 2020 (recognized in Salaries, wages and benefits) Defined benefit Other benefits Current service cost $ 1,492 $ 2,062 Interest cost on net benefit obligation 16,472 3,625 Interest income on plan assets (12,191 ) — Net Cost $ 5,773 $ 5,687 Net benefit expense – year ended December 31, 2019 (recognized in Salaries, wages and benefits) Defined benefit Other benefits Current service cost $ 1,152 $ 1,359 Interest cost on net benefit obligation 16,376 3,780 Interest income on plan assets (12,827 ) — Net Cost $ 4,701 $ 5,139 Changes in the present value of defined benefit obligation as of December 31, 2020 are as follows: Defined benefit Other benefits Total Benefit obligation as of December 31, 2019 300,288 60,971 361,259 Period cost 17,964 5,687 23,651 Benefits paid by employer (26,119 ) (3,737 ) (29,856 ) Remeasurements of defined benefit liability 9,498 6,164 15,662 Other 145 — 145 Exchange differences (9,832 ) (797 ) (10,629 ) Benefit obligation as of December 31, 2020 291,944 68,288 360,232 Fair value of plan assets (216,548 ) — (216,548 ) Total employee benefit liability $ 75,396 $ 68,288 $ 143,684 Current 39,219 3,333 42,552 Non-current 36,177 64,955 101,132 Total $ 75,396 $ 68,288 $ 143,684 Changes in the fair value of plan assets are as follows: Defined Fair value of plan assets at December 31, 2019 $ 204,527 Interest income on plan assets 12,191 Remeasurement of interest assumptions 1,625 Employer contributions 29,650 Benefits paid (22,246 ) Exchange differences (9,199 ) Fair value of plan assets at December 31, 2020 $ 216,548 Changes in the present value of defined benefit obligation as of December 31, 2019 are as follows: Defined benefit Other benefits Total Benefit obligation as of December 31, 2018 $ 268,486 $ 54,970 $ 323,456 Period cost 17,528 5,139 22,667 Benefits paid by employer (27,726 ) (5,190 ) (32,916 ) Remeasurements of defined benefit liability 42,048 7,878 49,926 Exchange differences (48 ) (1,826 ) (1,874 ) Benefit obligation as of December 31, 2019 300,288 60,971 361,259 Fair value of plan assets (204,527 ) — (204,527 ) Total employee benefit liability $ 95,761 $ 60,971 $ 156,732 Current $ 39,539 $ 3,346 $ 42,885 Non-current 56,222 57,625 113,847 Total $ 95,761 $ 60,971 $ 156,732 Changes in the fair value of plan assets are as follows: Defined Fair value of plan assets at December 31, 2018 $ 178,594 Interest income on plan assets 12,827 Remeasurement of interest assumptions 7,385 Employer contributions 34,083 Benefits paid (25,509 ) Exchange differences (2,853 ) Fair value of plan assets at December 31, 2019 204,527 For the year ended December 31, 2020 and 2019, the remeasurements of defined benefit plan liability, net of $(14,037) and $(42,541) respectively were recognized in other comprehensive income. December 31, December 31, Actuarial gains (losses) recognized in other comprehensive income $ (15,662 ) $ (49,926 ) Return on plan assets adjustment 1,625 7,385 Losses recognized in other comprehensive income $ (14,037 ) $ (42,541 ) The Group expects to contribute $34,321 to its defined benefit plan and other benefits in 2021. 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 6.00 % 6.25 % Price inflation 3.00 % 3.00 % Future salary increases Pilots 4.00 % 4.00 % Cabin crew 4.00 % 4.00 % Other employees 4.00 % 4.00 % Future pension increase 3.00 % 3.00 % 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, 2020 December 31, 2019 Equity securities 56.00 % 31.00 % Debt securities 12.00 % 18.00 % Domestic Corporate bonds 23.00 % 44.00 % Foreign government/corporate bonds 2.00 % 1.00 % Other 7.00 % 6.00 % 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 Yankee 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, 2020 December 31, 2019 Year 1 $ 34,318 $ 34,655 Year 2 20,714 21,413 Year 3 21.303 21,868 Year 4 22,253 22,537 Year 5 21,841 23,288 Next 5 years 115,073 117,918 $ 235,502 $ 241,679 The average duration of the benefit plan obligation at December 31, 2020 and 2019 is 11.10 and 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, 2020, and 2019, there are 12 beneficiaries, 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 (18,862 ) 21,856 Pension increase 16,501 (14,348 ) Mortality table (1,317 ) (13,317 ) Healthcare cost table (2,252 ) (8,887 ) Other employee benefits In the year 2018, the Group implemented a new incentive plan denominated options of shares: Avianca Holdings. Annually, the beneficiaries of the plan will receive a package of virtual shares to which they can be made creditors at the end of the period, as long as the financial and customer satisfaction goals of the business plan are met. Once the goal board is closed, and at the end of the period, the number of virtual shares the beneficiary takes can go from 0% to 200%, depending on the performance of long-term indicators. 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. 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 value to be paid for each third will be the result of calculating the number of virtual shares to be paid, multiplied by the value of the Avianca Holdings S.A. share in NYC for the period. 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. Based on the aforementioned assumptions, the Group recorded a liability of $1,233 and $2,619 on December 31, 2020 and 2019 which is considered within the other long-term employee benefits as a non-current |
Air traffic liability and frequ
Air traffic liability and frequent flyer deferred revenue | 12 Months Ended |
Dec. 31, 2020 | |
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Air traffic liability and frequent flyer deferred revenue | (22) 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. 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, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Air traffic liability $ 399,184 $ 337,363 Miles deferred revenue 162,013 187,931 Current $ 561,197 $ 525,294 Miles deferred revenue $ 290,802 $ 229,701 Non current $ 290,802 $ 229,701 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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Other liabilities | (23) Other Liabilities The other liabilities as of December 31, 2020 and 2019 are as follows: Notes December 31, December 31, Derivative instruments 28, 29 $ 2,697 $ 1,289 Deferred Revenue(1) 7,270 55,256 Other 2,149 14 Total $ 12,116 $ 56,559 Current $ 4,144 $ 5,110 Non-current(1) 7,972 51,449 Total $ 12,116 $ 56,559 (1) Corresponds mainly to deferred profits from sales and subsequent. The variation corresponds mainly to the recognition of $ 38,200 of profit on the sale of aircraft. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
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Equity | (24) Equity Common and preferred shares On November 5, 2013 “The Company issued 12,500,000 American Depository Shares (ADS) “ and each represented eight preferred shares. The net income derived from this offer amounts to $183,553 million (net of deduction of emission costs for $3,956), the preferred shares do not have the right to vote nor can they become common shares, the holders of the preferred shares and ADSs will be entitled to receive a minimum dividend to be paid with preference over the holders of the common shares, provided that the dividends have been declared by our shareholders at the annual meeting, If no dividends are declared, none of our shareholders will be entitled to dividends, If the dividends are declared and our annual distributable earnings are sufficient to pay a dividend of at least COP$50 per share to all of our holders of preferred and ordinary shares, such benefits will be paid equally with respect to our preferred and ordinary shares, however, if our earnings Annual distributions are insufficient to pay a dividend of at least COP$50 per share to all our holders of preferred and ordinary shares, a minimum preferred dividend of COP$50 per share will be distributed in proportion to the holders of preferred shares, and any excess over said minimum preferred dividend will be distributed exclusively to holders of ordinary shares. In relation to this offer, common shareholders (“selling shareholders”) converted 75,599,997 common shares to preferred shares representing 14,734,910 ADS. As a result, the number of common shares was reduced to 665,800,003 and the number of preferred shares increased by 75,599,997 for a total of 331,187,285 preferred shares. The Group did not receive any part of the net income from the sale of the ADS by the selling shareholders. As of December 31, 2013, “the Group acquired 197,141 of its current preferred shares” consequently, current preferred shares decreased by $25 and the additional capital paid in preferred shares was reduced by $452. On November 28, 2014, common shareholders (“selling shareholders”) converted 5,000,000 ordinary 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 by 5,000,000 to 336,187,285 preferred shares. The following is a summary of authorized, issued and paid shares: December 31, 2020 December 31, 2019 Authorized shares 4,000,000,000 4,000,000,000 Common shares issued and paid 660,800,003 660,800,003 Preferred shares issued and paid 336,187,285 336,187,285 The nominal value per share is $0.12 Expressed in cents. Other Comprehensive Income (“OCI”) Reserves The movement of the other comprehensive income from December 31 2019, to December 31, 2020, 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, 2019 $ (3,098 ) $ 457 $ (116,704 ) $ 3 $ 527 $ 40,695 $ (78,120 ) $ 16 $ (78,104) Other comprehensive Income (loss) for the Period 495 503 (14,608 ) — (855 ) 1,074 (13,391 ) 587 (12,804 ) As of December 31, 2020 $ (2,603 ) $ 960 $ (131,312 ) $ 3 $ (328 ) $ 41,769 $ (91,511 ) $ 603 $ (90,908 ) The movement of the other comprehensive income from December 31 2018, to December 31, 2019, is as follows: Attributable to owners of the Company Income tax reserves relating to (4) Hedging reserves (1) Fair value reserves (2) Reserves relating to actuarial gains and losses (3) Fair value reserves Reserves relating to actuarial gains and losses Revaluation of administrative property (5) Total NCI Total OCI As of December 31, 2018 $ (7,194 ) $ (748 ) $ (74,177 ) $ 3 $ 86 $ 37,934 $ (44,096 ) $ 194 $ (43,902 ) Other comprehensive Income (loss) for the Period 4,096 1,205 (42,527 ) — 441 2,761 (34,024 ) (178 ) (34,202 ) As of December 31, 2019 $ (3,098 ) $ 457 $ (116,704 ) $ 3 $ 527 $ 40,695 $ (78,120 ) $ 16 $ (78,104 ) (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 28). (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: December 31, 2020 December 31, 2019 Cash flow hedges: Reclassification during the year to profit or loss $ 4,152 $ (4,481 ) Effective valuation of cash flow hedged (3,678 ) 8,413 $ 474 $ 3,932 Fair value reserves: Valuations of investments in fair value with changes in OCI $ 503 $ 1,205 $ 503 $ 1,205 |
Non-Controlling interests
Non-Controlling interests | 12 Months Ended |
Dec. 31, 2020 | |
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Non-Controlling interests | (25) Non-controlling The information related to each of the subsidiaries of the Group that has material NCI as of December 31, 2020 is sum m Taca Avianca Other Total Percentage non-controlling 3.17 % 7.58 % Current assets $ 152,300 $ 43,954 $ 294,413 $ 490,667 Non-current 405,380 53,669 3,494,626 3,953,675 Current liabilities (365,984 ) (24,026 ) (2,566,719 ) (2,956,729 ) Non-current (179,468 ) (3,760 ) (1,317,552 ) (1,500,780 ) Net assets 12,228 69,837 (95,232 ) (13,167 ) Net profit (loss) (4,592 ) (3,095 ) 487 (7,200 ) Other comprehensive income $ (307 ) $ (1,141 ) $ 2,035 $ 587 The information related to each of the subsidiaries of the Group that has material NCI as of December 31, 2019 is summarized below: LifeMiles Taca Avianca Other Total Percentage non-controlling 30.00 % 3.17 % 7.58 % Current assets $ 52,807 $ 30,762 $ 28,747 $ 7,274 $ 119,590 Non-current 20,168 14,113 5,470 5,345 45,096 Current liabilities (94,047 ) (18,421 ) (34,584 ) (5,492 ) (152,544 ) Non-current (172,582 ) (37,848 ) (806 ) (3,072 ) (214,308 ) Net assets (193,654 ) (11,394 ) (1,173 ) 4,055 (202,166 ) Net profit (loss) 26,829 (3,524 ) (4,066 ) 478 19,717 Other comprehensive income $ (163 ) $ 7 $ (25 ) $ 3 $ (178 ) Acquisition of Non-Controlling In October 2020, the Group acquired an additional 19.9% interest in LifeMiles, increasing its stake from 70% to 89.9%; additionally, it signed a purchase option to acquire the remaining 10.1% of LifeMiles shares. The acquisition was carried out through DIP financing and $26,500 in cash. In accordance with the high probability of exercising the option by the group, an anticipated purchase was recognized for accounting purposes, increasing the stake from 89.9% to 100%. AV Loyalty (Cayman) Limited legally holds its 10.1% stake in LifeMiles ordinary shares. The book value of LifeMiles’ equity (deficit) in the group’s consolidated financial statements was $ ( 652,040 Book value of the acquired non-controlling $ (195,612 ) Consideration paid of acquired non-controlling (200,000 ) Increase in accumulated losses attributable to the Group $ (395,612 ) Due to this transaction, there was an increase in accumulated losses in equity attributable to the group for $395,612. |
Losses per share
Losses per share | 12 Months Ended |
Dec. 31, 2020 | |
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Losses per share | (26) Losses per share The calculation of basic loss per share at December 31, 2020 and 2019 is as follows: Total December 31, 2020 Total December 31, 2019 Total December 31, 2018 Net loss attributable to Avianca Holdings S.A. $ (1,086,935 ) $ (913,712 ) $ (24,803 ) Weighted average number of shares (in thousands of shares) Common stock 660,800 660,800 660,800 Preferred stock 336,187 336,187 336,187 Losses per share (1) Common stock $ (1.09 ) $ (0.92 ) $ (0.03 ) Preferred stock $ (1.09 ) $ (0.92 ) $ (0.03 ) (1) Expressed in dollars. There are no interests in convertible preferred shares. |
Operating revenue
Operating revenue | 12 Months Ended |
Dec. 31, 2020 | |
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Operating revenue | (27) Operating revenue The Group had no major customers which represented more than 10% of revenues in 2020 and 2019. The Group tracks its segmented gross revenue information by type of service provided and by region, as follows: By type of service provided Year ended Percentage Year ended Percentage Year on Domestic Passenger 511,839 30 % $ 2,000,222 43 % (1,488,383 ) Cargo and mail 294,312 17 % 285,802 6 % 8,510 806,151 47 % 2,286,024 49 % (1,479,873 ) International Passenger 492,144 29 % 1,904,542 41 % (1,412,398 ) Cargo and mail 278,302 16 % 282,576 6 % (4,274 ) 770,446 45 % 2,187,118 47 % (1,416,672 ) Other (1) 134,988 8 % 148,354 4 % (13,366 ) Total operating revenues 1,711,585 100 % $ 4,621,496 100 % (2,909,911 ) Year ended Percentage Year ended Percentage Year on Domestic Passenger $ 2,000,222 43 % $ 2,001,825 41 % (1,603 ) Cargo and mail 285,802 6 % 303,343 6 % (17,541 ) 2,286,024 49 % 2,305,168 47 % (19,144 ) International Passenger 1,904,542 41 % 2,072,566 42 % (168,024 ) Cargo and mail 282,576 6 % 315,433 7 % (32,857 ) 2,187,118 47 % 2,387,999 49 % (200,881 ) Other (1) 148,354 4 % 197,663 4 % (49,309 ) Total operating revenues $ 4,621,496 100 % $ 4,890,830 100 % (269,334 ) Other operating income Other operating revenue for the years ended December 31, 2020, 2019 and 2018 is as follows: Year ended December 31, 2020 Year ended 2019 Year ended 2018 Frequent flyer program $ 48,207 $ 40,794 $ 46,376 Ground operations (a) 6,032 18,448 23,592 Leases 619 11,590 22,610 Maintenance 10,350 8,162 58,032 Interline 742 2,087 2,025 Other (b) 69,038 67,273 45,028 $ 134,988 $ 148,354 $ 197,663 (a) Group provides services to other airlines at main hub airports. (b) Corresponds mainly to income from penalties, distribution of dividends received, additional services and the amortization of sale and leaseback. Contract balances The following table provides information on accounts receivable, assets and liabilities of contracts with customers: Notes December 31, December 31, Net of accounts receivable 9 $ 118,665 $ 215,673 Prepaid compensation customers 12 1,870 13,768 Air traffic responsibility 22 (399,184 ) (337,363 ) Deferred frequent flyer income 22 (452,815 ) $ (417,632 ) |
Derivatives recognized as hedgi
Derivatives recognized as hedging instruments | 12 Months Ended |
Dec. 31, 2020 | |
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Derivatives recognized as hedging instruments | (28) Derivatives recognized as hedging instruments Financial instruments recognized as hedging instruments at fair value though other comprehensive income as of December 31, 2020 and 2019, are the following: Note December 31, 2020 December 31, Cash flow hedges - assets Fuel price $ — $ 525 Interest rate — 11 Total $ — $ 536 Cash flow hedges - liabilities Interest rate 23 $ 2,697 $ 1,241 Total $ 2,697 $ 1,241 The notional value of derivatives recognized as hedging instruments for the period ended December 31, 2019, is equivalent to 6,792,000 gallons of jet fuel for aircraft, As of December 31, 2020, the Group does not have fuel price hedges. 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, 2020 and December 31, 2019: December 31, 2020 Fair Value 1–12 months 12–24 months Fuel price Liabilities $ 2,697 $ — $ 2,697 December 31, 2019 Fair Value 1–12 months 12–24 months Fuel price Assets $ 525 $ 525 $ — Interest rate Assets 11 — 11 Liabilities $ 1,241 $ — $ 1,241 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, 2020, 2019 and 2018, a net (loss)/gain relating to the hedging instruments of 474, $3,932 and $(13,701) respectively is included in other comprehensive income (See note 24). |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
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Derivative financial instruments | (29) Derivative financial instruments Derivative financial instruments at fair value through profit or loss as of December 31, 2020 and December 31, 2019 are the following: Notes December 31, 2020 December 31, 2019 Derivatives not designated as hedges – liabilities Derivative contracts of interest rate 23 $ — $ 48 Total $ — $ 48 Financial instruments to fair value financial instruments to fair value without effect in other comprehensive income are derivative contracts not designated as hedges instruments 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, 2020 | |
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Offsetting of Financial Instruments | (30) 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, 2020, and 2019, 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, 2020 | |
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Fair value measurements | (31) Fair value measurements The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities as of December 31, 2020: 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 Investments $ — $ 42,919 $ — $ 42,919 Assets of the benefits plan $ — $ 216,548 $ — $ 216,548 Assets held for sale (1) $ — $ 884 $ — $ 884 Revalued administrative property (note 14) $ — $ — $ 110,931 $ 110,931 (1) Assets held for sale don’t including sales costs associated. 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 Interest rate derivatives (notes 28 and 29) $ — $ 2,697 $ — $ 2,697 Liabilities for which fair values are disclosed Short–term borrowings and long–term debt $ — $ 6,275,788 $ — $ 6,275,788 The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities as of December 31, 2019: 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 28 and 29) Aircraft fuel hedges $ — $ 525 $ — $ 525 Interest rate derivatives — 11 — 11 Investments — 55,440 — 55,440 Assets of the benefits plan — 204,527 — 204,527 Assets held for sale (1) — 694,336 — 694,336 Revalued administrative property (note 14) $ — $ — $ 111,112 $ 111,112 (1) Assets held for sale don’t including sales costs associated. 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 Interest rate derivatives (notes 28 and 29) $ — $ 1,289 $ — $ 1,289 Liabilities for which fair values are disclosed Short–term borrowings and long–term debt $ — $ 5,454,688 $ — $ 5,454,688 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 on 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 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. |
Income tax expense and other ta
Income tax expense and other taxes | 12 Months Ended |
Dec. 31, 2020 | |
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Income tax expense and other taxes | (32) Income tax expense and other taxes Assets and liabilities for taxes as of December 31, 2020 and December 31, 2019 are as follows: December 31, December 31, Current income tax – assets $ 44,681 $ 99,973 Other current taxes Current VAT – assets 36,403 90,955 Other taxes current 30,701 7,791 Total other current taxes 67,104 98,746 Total current tax – assets $ 111,785 $ 198,719 Non-current — 1 Total tax - assets $ 111,785 $ 198,720 Current income tax - liabilities ($ 54,738 ) $ (26,421 ) Components of income tax expense Income tax expense for the periods ended December 31, 2020, 2019 and 2018 comprises the following: Year ended Year ended Year ended Current income tax: Current income tax charge $ 54,738 $ 25,171 $ 24,208 Changes in estimates related to prior years (3,731 ) 1,304 2,943 Deferred tax expense: Relating to origination and reversal of temporary differences 53 (2,492 ) (6,938 ) Income tax expense reported in the income statement $ 49,431 $ 23,983 $ 20,213 a) Reconciliation of the Tax Rate in accordance with the Tax Provisions and the Effective 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 and Salvador, the rate is 30%, in Guatemala the rate is 25%. Standards in Colombia Income tax recognized in income In 2019, the National Government issued Law 2010 in accordance with the objectives on the matter promoted by Law 1943 of 2018, however, it presents the following modifications: Income tax rate for taxable year 2020 and following: Year General Rate* Rate Applicable to 2020 32 % 36 % 2021 31 % 34 % 2022 and next 30 % 33 % Applicable rate for national companies, permanent establishments and foreign entities. ** Rate applicable to financial entities with taxable income equal to or greater than 120,000 UVT, as provided in paragraph 7 included in article 240 of the Tax Statute. Presumptive income tax On the other hand, it reduces for the year 2020, the applicable rate for the purposes of calculating income tax under the presumptive income system, which will be 0.5% of the taxpayer’s net worth of the immediately previous year. From the year 2021 the applicable rate will be 0%. Dividend Tax The rate is reduced from 15% to 10% for resident natural persons, illiquid inheritance. also, the rate is increased from 7.5% to 10% for non-resident Equity tax For the taxable years 2020 and 2021, the wealth tax is maintained, for natural persons, resident illiquid successions and non-resident Fifty percent (50%) of the equity value of the assets subject to the complementary tax of tax normalization that have been declared in the taxable period 2020 and that have been repatriated to Colombia and invested with vocation was added to the taxable base of the tax. of permanence in the country, in accordance with the standardization tax provided for in this Law. Normalization Tax The new tax normalization tax is created for the year 2020, complementary to the income tax and the wealth tax, in charge of the taxpayers of the income tax or substitute income tax regimes that have omitted assets or liabilities non-existent Transfer Pricing Income tax payers who carry out operations with related parties or related parties abroad are obliged to determine, for income tax purposes, their ordinary and extraordinary income, their costs and deductions, their assets and liabilities, considering for these operations the prices and profit margins that would have been used in comparable operations with or between economically unrelated operations. Independent advisors advance the update of the transfer pricing study, required by tax provisions, tending to demonstrate that the operations with foreign economic associates were carried out at market values during 2020. For this purpose, the Company will present an informative statement and will have available the referred study for the end of July 2021. Failure to comply with the transfer pricing regime may lead to financial penalties and a higher income tax; However, the Administration and its advisers are of the opinion that the study will be concluded in a timely manner and will not result in significant changes to the base used for the determination of the 2020 income tax provision. Audit benefit Law 1943 of 2018 established that taxpayers who for the taxable year 2019 and 2020 in their private liquidation of income and complementary taxes increase the net income tax by at least a minimum percentage of 30%, in relation to the Net income tax for the immediately preceding year, your return will be final within six (6) months from the date of its presentation if no notice of a summons to correct or special requirement or special summons or provisional liquidation has been notified and, provided that the declaration is presented in a timely manner and the payment is made within the established deadlines. However, if the increase in the net income tax is at least 20%, in relation to the net income tax of the immediately previous year, the return will be final within twelve (12) months following the presentation of the statement if no notice has been notified to correct or special requirement or special location or provisional settlement and the statement is always submitted in a timely manner and payment is made within the established deadlines. The above benefit does not apply to: (i) taxpayers who enjoy tax benefits due to their location in a specific geographic area; (ii) when it is shown that declared withholdings at source are non-existent; 71 Tax Procedure. The audit benefit applicable to the taxable year 2019 is extended to the taxable years 2020 and 2021. The term of firmness applicable to declarations in which tax losses are offset or generated is reduced to five years and compared to the years in which it is obliged to comply with the transfer pricing regime. The term for voluntarily correcting tax returns in which the balance in favor is decreased or the amount to be paid increases is extended to three years. Firmness of Income Tax and Complementary Tax Returns Before the issuance of Law 1819 of 2016, article 714 of the Tax Statute established the following firmness terms: to. General firmness: 2 years following the expiration date of the term to declare. b. Late filing: 2 years following the filing date of the return. c. Balance in favor: when the return presents a balance in favor of the taxpayer, it will be final within 2 years after the date of submission of the request for refund or compensation. As of the year 2017 and with the entry into force of Law 1819 of 2016, the general term of firmness of tax returns is 3 years from the date of their expiration or from the date of their presentation, when these have been submitted extemporaneously. The firm term is 6 years when there are transfer pricing obligations. Regarding those declarations in which favorable balances are presented, the firm term is 3 years, from the date of the presentation of the request for refund or compensation. Regarding those tax returns in which tax losses are offset, the firmness corresponds to the same term that the taxpayer has to offset it, that is, 12 years. This term extends from the date of compensation for 3 more years in relation to the statement in which said loss was settled. As of the year 2020, with the entry into force of the 2010 law of 2019, those tax returns in which tax losses are offset, the firmness corresponds to five years As of 2019 and with the entry into force of Law 1943 of 2018, the extension of the firmness of 3 additional years for compensation of tax losses is eliminated. As of the year 2020, with the entry into force of the 2010 law of 2019, those tax returns in which tax losses are offset, the firmness corresponds to five years As of 2019 and with the entry into force of Law 1943 of 2018, the extension of the firmness of 3 additional years for compensation of tax losses is eliminated. Reconciliation of the Tax Rate in Accordance with the Tax Provisions and the Effective Rate: The consolidated loss before income tax amounted to $ 1,044,704 A reconciliation between tax expense and the product of accounting profit multiplied by domestic tax rate for the years ended December 31, 2020, 2019 and 2018 is as follows: Year ended December 31, 2020 Year ended December 31, 2019 Year ended December 31, 2018 Net (loss) profit for the year $ (1,094,135 ) $ (893,995 ) $ 1,143 Total income tax expense 49,431 23,983 20,213 (Loss) profit before income tax $ (1,044,704 ) $ (870,012 ) $ 21,356 Income tax at Colombian statutory rate 32% (334,305 ) 33 % (287,104 ) 37.00 % 7,902 Productive fixed assets special deduction 0 % — 0 % — (268.0 %) (57,229 ) Permanent differences (1) (19 %) 195,061 (16 %) 136,798 (390.8 %) (83,458 ) Non-deductible taxes 0 % — 0 % (167 ) 16 % 3,413 Effect of tax exemptions, tax rates and exchange rates in foreign jurisdictions (7 %) 75,132 (11 %) 91,570 1,191.2 % 254,391 Non recognized deferred tax assets (11 %) 115,817 (9 %) 82,362 (544.9 %) (116,362 ) Prior year adjustments 0 % (2,114 ) 0 % (36 ) (5.8 %) (1,245 ) Changes in tax rates 0 % (160 ) 0 % 560 59.9 % 12,801 (5 %) $ 49,431 (3 %) $ 23,983 95 % $ 20,213 (1) Corresponds mainly to (a) application of special tax bases of taxation in subsidiaries that operate in El Salvador and Costa Rica, (b) non-deductible expenses for special deductions for the disposal of certain fixed assets and (c) application of the exception of IAS 12 in the recognition of deferred tax for investments in subsidiaries. (b) Deferred Taxes with Respect to Subsidiary Companies: During the year ended December 31, 2020 Avianca S.A. and Tampa Cargo S.A.S. are the dominant companies in their subsidiaries, which can control the future moment in which the temporary differences related to their investments will be reversed and additionally these are not expected to reverse in the foreseeable future. Consequently, and in accordance with the exception allowed by paragraphs 39 and 44 of IAS 12, deferred tax liabilities for US $ 99 million were not recognized as of December 31, 2020, for the year 2019 this figure is US $ 71 million. (c) Deferred Tax Unrecognized Assets on Tax Credits: As of December 31, 2020, and 2019, the following is the detail of the tax losses and excess presumptive income of the Company that have not been used and on which no active deferred tax has been recognized: Tax losses originated in the year: 2017 $ 87,569 2018 86,630 2019 51,849 2020 27,201 Total: $ 253,249 Excess of presumptive income originated in the year: Year 2017 $ 1,250 Year 2018 340 Total: $ 1,590 The Group has deferred tax asset corresponding to the aforementioned tax losses for $76 millions. However, according to the Company’s financial projections no tax income will be generated for the next 3 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 with accounting standards. (d) 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, 2020 and 2019 applying the tax rate for the taxable year in which those temporary differences will be reversed. Below is an analysis of the deferred tax assets and liabilities of the Group: Consolidated statement of financial position December 31, December 31, Variation Assets (liabilities) Accounts payable $ 461 $ 39,904 $ (39,443 ) Aircraft maintenance 909 (3,691 ) 4,600 Pension liabilities 10,477 10,599 (122 ) Provisions 96,151 24,330 71,821 Loss carry forwards — 5,333 (5,333 ) Unrecognized deferred tax asset (43,099 ) — (43,099 ) Non-monetary (51,621 ) (36,626 ) (14,995 ) Intangible assets (304 ) 1,159 (1,463 ) Other (1,660 ) (32,313 ) 30,653 Net deferred tax assets / (liabilities) $ 11,314 $ 8,695 $ 2,619 Reflected in the statement of financial position as follows: December 31, December 31, Deferred tax assets $ 25,236 $ 27,166 Deferred tax liabilities (13,922 ) (18,471 ) Deferred tax assets (liabilities) net $ 11,314 $ 8,695 Reconciliation of deferred tax assets net December 31, December 31, Opening balance as of January 1, $ 8,695 $ 6,136 Tax income during the period recognized in profit or loss (53 ) 2,492 Tax income during the period recognized in other comprehensive income (818 ) 441 Exchange differences 3,490 (374 ) Closing balance as of December 31 $ 11,314 $ 8,695 e) Effect of deferred tax on each component of the other comprehensive income account: The following summarizes the effects of deferred tax on each component of the other comprehensive income account: Consolidated Statement of Other Comprehensive Income December 31, December 31, December 31, Reserves related to actuarial gains and losses $ (818 ) $ 441 $ (39 ) Income tax recorded directly in other comprehensive income $ (818 ) $ 441 $ (39 ) |
Provisions for legal claims
Provisions for legal claims | 12 Months Ended |
Dec. 31, 2020 | |
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Provisions for legal claims | (33) Provisions for legal claims As of December 31, 2020, and 2019 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, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Balances at the beginning of the period $ 20,244 $ 7,809 Provisions constituted 11,215 21,208 Provisions reverse (3,660 ) (6,537 ) Provisions used (453 ) (2,236 ) Deconsolidation subsidiary AV Perú (4,032 ) — Balances at the end of the period $ 23,314 $ 20,244 Among the provisions for litigation are those related to labor processes (December 31, 2020: $13,329, December 2019: $6,413), consumer protection processes (December 31, 2020: $2,620, December 2019: $4,101) and civil processes (December 31, 2020: $771, December 2019: $766). Certain proceedings are considered possible obligations. Based on the plaintiffs’ claims, as of December 31, 2020 and December 31, 2019, these contingencies amount to a total of $138,357 and $206,382 respectively. Certain losses which may result from those proceedings will be covered either by insurance companies or with funds provided by third parties. The proceedings that will be settled using the aforementioned forms of payment are estimated $21,242 as of December 31, 2020 and $28,174 as of December 31, 2019. In accordance with IAS 37, the legal claims that the Group considers representing a remote risk are not contemplated in the consolidated financial statements. Internal investigations to determine whether we may have violated the U.S. Foreign Corrupt Practices Act and other laws In August 2019, the Group disclosed that it had discovered a business practice at the Group whereby Group employees, including members of senior management, as well as certain members of the board of directors, provided “things of value,” which based on its current understanding have been limited to free and discounted airline tickets and upgrades, to government employees in certain countries. The Group commenced an internal investigation, supervised by the Audit Committee, and retained reputable outside counsel and a specialized forensic investigatory firm to determine whether this practice may have violated the FCPA or other potentially applicable U.S. and non-U.S. Also, in February 2020, the Office of the Attorney General of Colombia served Avianca with a search warrant of its offices with the objective of collecting information related to this investigation, As has been its practice, Avianca has cooperated and will continue to cooperate with all pertinent authorities, Avianca will provide the information being requested to the Office of the Attorney General of Colombia, while exercising its legal rights to ensure that its confidential and privileged information remains protected. The U.S. and Colombian government inquiries described above, related inquiries and developments in other countries, and the Group’s internal investigations are continuing, Any action in these or related inquiries, proceedings or other developments, or any agreement the Group enters into to settle the same, may result in substantial fines, reputational harm and other sanctions and adverse consequences, Based upon the opinion of its outside counsel, the Group believes that there is no adequate basis at this time for estimating accruals or quantifying any contingency with respect to these matter s. As of the date of this report, the investigations remain ongoing . Internal Investigation regarding potential impacts at the group due to corrupt business practices at Airbus In January 2020, our primary aircraft supplier Airbus entered into a settlement with authorities in France, the United Kingdom and the United States regarding corrupt business practices, Airbus’ settlement with French authorities references a possible request by an Avianca “senior executive” in 2014 for an irregular commission payment, which was ultimately not made, As a result of this development, we have voluntarily initiated an internal investigation to analyze our commercial relationship with Airbus and to determine if we have been the victim of any improper or illegal acts, We have disclosed this internal investigation to the U.S. Department of Justice and the SEC, as well as the Superintendence of Industry and Commerce and the Colombian Office of the Attorney General, We are cooperating with all agencies, Our internal investigations are not complete and we cannot predict the outcome of these internal investigations or what potential actions may be taken by the U.S. Department of Justice, the SEC or local regulators or officials, If it is found that these business practices violated the FCPA or other similar laws applicable to us, or we were at any time not in compliance with any other laws governing the conduct of our business, we could be subject to criminal and civil remedies, including sanctions, monetary penalties and regulatory actions, which could materially and adversely affect us, The Office of the Attorney General of the Nation in Colombia has authorized us to act as potential victims of these events, and as such we have been participatin g. As of the date of this report, the investigations remain ongoing . Review of potential inadvertent violations of the U.S. Cuban Assets Control Regulations In September 2019, the Group disclosed that it had become aware that it had become subject to U.S. jurisdiction for purposes of certain U.S. sanctions laws and regulations administered by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury. This jurisdictional nexus was established as a result of the transfer, on November 9, 2018, by the Group’s parent co m now-terminated s. As of the date of this report, the investigations remain ongoing In light of the above, the Group has embarked on a comprehensive effort to improve and expand its compliance program worldwide, including enhancements to the Group’s existing sanctions screening processes, implementation of a comprehensive sanctions compliance program, and sanctions training for key Group employees. |
Future aircraft leases payments
Future aircraft leases payments | 12 Months Ended |
Dec. 31, 2020 | |
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Future aircraft leases payments | (34) Future aircraft leases payments The Group has 75 aircraft that are under financial leasing. The following is the summary of future financial lease commitments: Aircraft Less than one year (1) $ 1,883,281 $ 1,883,281 (1) It corresponds to financial leases that were in default before Chapter 11 and therefore all debt is short-term. The Group has 62 aircraft that are under operating leases, which have an average remaining lease term of 59 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(1) $ 274,167 Between one and five years 824,391 More than five years 282,474 $ 1,381,032 In the first quarter of 2020, the Group terminated the lease agreements of two (2 E-190s one (1 nine (9 In June 2020, the Group terminated operating leases on two two two two four Future operating lease commitments are calculated under the assumption that the aircraft will be in continuous operation. However, the amounts may vary depending on the aircraft operating plan during the Chapter 11 reorganization process, in which the Group agreed with the aircraft lessors on a variable “Power-by-the-Hour” The Group has 9 spare 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 $ 4,789 Between one and five years 17,856 More than five years 701 $ 23,346 As of December 31, 2020, the Group rejected under Chapter 11 leases for three one In the fourth quarter of 2020, the return of two (2) TRENT 772 engines supplied by the workshop to cover removals for repairs is legalized and five (5) CFM56-5B4/P Future operating lease commitments are calculated under the assumption that the engines will be operating continuously. However, amounts may vary depending on the engine operating plan during the Chapter 11 reorganization process, in which the Group agreed with the engine lessors on a variable “Power-by-the-Hour” During the year ended December 31, 2020, 16 A320, 4 A321 and 2 A330 operating leases were extended, 3 A320neo were added to the fleet under operating leases, 1 A300F was destroyed (due to damage), 1 A300F was acquired, 10 A318 and 2 A320 finance leases and 2 owned A320s were sold. A lease agreement for 1 B787-9 The value of payments recognized as expenses in the period is: December 31, 2020 December 31, 2019 Leases minimum payments $ 3,398 $ 11,762 |
Acquisition of aircraft
Acquisition of aircraft | 12 Months Ended |
Dec. 31, 2020 | |
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Acquisition of aircraft | (35) Acquisition of aircraft In accordance with the agreements in effect, future commitments related to the acquisition of aircraft and engines as of December 31, 2020, as follows: Less than one year 1-3 3-5 More than 5 years Total Aircraft and engine purchase commitments $ 21,175 $ 126,212 $ 1,629,460 $ 3,917,096 $ 5,693,943 Current prices disclosed reflect certain discounts negotiated with suppliers as of the date of the consolidated statement of financial position, which are calculated on a highly technical basis and are subject to multiple conditions and constant variations. Among the factors that may affect discounts are changes in our purchase agreements, including aircraft order volumes. At the end of 2019, with the reorganization of the company, the aircraft contract with Airbus was renegotiated, where the delivery dates were postponed and some aircraft cancellations were made, leaving the order for 88 aircraft, with the first one arriving in 2025. Additionally, negotiations with Boeing resulted in the remaining two 787-9 COVID-19 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
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Dividends | (36) Dividends The Group did not decree or pay dividends during ended December 31, 2020, based on the retained earnings as of December 31, 2019, and dividends were decreed by the Group during ended December 31, 2019, based on retained earnings as of December 31, 2018: December 31, December 31, Dividends decreed Dividend - Ordinary shared $ — $ 9,862 Dividend - Preferred shared 5,523 Total $ — $ 15,385 The General Shareholders Meeting of Avianca Holdings S.A. at an ordinary session on March 22, 2019, agreed distribution of profits for the year 2018 as dividend to the shareholders preferent and ordinary of the Group that will be paid the amount of COP$50 (Preferred shared) and COP$46 (Ordinary shared) per share, respectively. The dividends decreed were paid on May 24, 2019 by the amount of The decree of dividends was made with a TRM of COP $3,082.45. The payment of the dividends was made to the corresponding TRM on the date on which the transaction was made. Dividends paid to minority shareholding During the year ended December 31, 2019, LifeMiles Ltd. paid dividends for $36 million. In 2020, there are not payments of dividends. |
Debt covenants
Debt covenants | 12 Months Ended |
Dec. 31, 2020 | |
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Debt covenants | (37) Debt covenants As of December 31, 2020, Avianca Holdings S.A. was party to a long-term loan agreement (“DIP Credit Agreement”) pursuant to which Avianca Holdings S.A.’s Maximum Cumulative Cash Burn as of such date was $395,400 and maintain consolidated cash of no less than $400,000. Avianca Holdings S.A.’s actual cumulative cash burn as of December 31, 2020 was of $140,901. The negative covenants limiting the obligors’ ability to: dispose of certain assets, enter into transactions with affiliates, grant liens, modify their main line of business, merge or consolidate, incur additional debt, conduct investments, make restricted payments, change their fiscal year end or accounting policies, enter into agreements containing negative pledge clauses and to amend or modify the Lifemiles securities purchase agreement. Covenant to maintain consolidated cash of no less than $400 million on each date of determination and not to exceed certain cumulative cash burn. |
Special charges
Special charges | 12 Months Ended |
Dec. 31, 2020 | |
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Special charges | (38) Special Charges As of December 31, 2020, the Group registers $66,652 in special charges regarding expenses incurred in relation to the voluntary petitions filed, on May 10, 2020 by Avianca Holdings and certain of its subsidiaries, under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
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Subsequent Events | (39) Subsequent Events In the first quarter of 2021, the Group received the third disbursement of the DIP loan and presented a motion to reject the leases of 2 aircraft corresponding to 2 A319. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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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 49 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 include 72 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 | 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 | (d) 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 acquire. 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 acquire. 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. If this consideration is less than the fair value of the net assets acquired, the difference is recognized as profit at the date of acquisition. 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 acquire are assigned to those units. |
Revenue recognition | (e) Revenue recognition Revenue is measured based on the consideration specified in a contract with a customer. The Group recognizes income when transferring control over the good or service to the customer. Below is information on the nature and timing of the satisfaction of performance obligations in contracts with customers. (i) Passenger and cargo transportation The Group recognizes revenues from passenger, cargo and other operating income in consolidated statements of comprehensive income. Revenues from passenger, 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 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 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 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) Loyalty program 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 22) 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 “. Breakage estimates are reviewed every semester. 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 | (f) Income tax Income tax expense comprises current and deferred taxes and is accounted for in accordance with IAS 12 “Income Taxes”. They are recognized in results except to the extent that it relates to a business combination, or items recognized directly in equity or other comprehensive income. (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, but the Group intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. |
Property and equipment | (g) 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 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 associated to 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. |
Assets held for sale | (h) Assets held for sale Non-current Non-current Property and equipment and intangible assets, once classified as held for sale, are not subject to depreciation or amortization and both the assets and any liabilities directly associated with the assets held for sale is reclassified to current and disclosed in a separate line of the consolidated financial statement, when the criteria for having an assets as held for sale are no longer met, the Company reclassifies property and equipment for the lower value between: 1) The carrying amount before the asset was classified as held for sale, adjusted for the depreciation that would have been recognized if it had not been classified as held for sale. 2) The recoverable amount on the date of the subsequent decision not to sell it. |
Leased assets | (i) Leased assets (i) Assets by right of use The Group recognizes the assets for right of use on the start date of the lease (that is, the date on which the underlying asset is available for use). The right-of-use (ii) Lease liabilities On the start date of the lease, the Group recognizes the lease liabilities measured at the present value of the lease payments that will be made during the term of the lease. Lease payments include fixed payments and variable lease payments that depend on an index or a rate. Lease payments also include the price of a purchase option that the Group can reasonably exercise and penalty payments for terminating a lease. Variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers the payment occurs. At the beginning of a contract, the Group assesses whether a contract is or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an asset for a period of time in exchange for a consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. At the commencement or modification of a contract that contains a lease component, the Group assigns the consideration in the contract to each lease component on the basis of their relative independent prices. However, for property leases the Group has chosen not to separate the non-lease non-lease |
Borrowing costs | (j) 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 | (k) 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, without exceeding a business segment. Impairment measurement is currently carried out at the level of the air transport segment. 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 and impairment measurement is carried out at the air segment level. 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) Intangible assets associated with contractual rights and obligations 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 | (l) 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 (SPPI)” 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 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 31 includes an analysis of the fair values of financial instruments and more details on how they are valued. |
Derivative financial instruments and hedge accounting | (vi) 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 28 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 | (m) 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. The valuation method used by the Group is weighted average. |
Impairment of non-financial assets | (n) 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 identified the transportation business units and the loyalty program 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 value-in-use or 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. In 2020 due to the impact of COVID-19 non-financial |
Cash and cash equivalents | (o) 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 | (p) 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 | (q) 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 | (r) 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”. These costs are reviewed annually and adjusted accordingly. |
Employee benefits | (s) 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. |
Prepaid expenses | (t) 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 | (u) 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, 2020 | |
Disclosure of subsidiaries [line items] | |
Schedule of Significant Subsidiaries | The following are the significant subsidiaries in the Group included within these consolidated financial statements: Name of Subsidiary Country of Ownership 2020 2019 Avianca Ecuador S.A. Ecuador 99.62 % 99.62 % Aerovias del Continente Americano S.A. (Avianca) Colombia 99.98 % 99.98 % Avianca, Inc. U.S. 100 % 100 % Avianca Leasing, LLC. U.S. 100 % 100 % Grupo Taca Holdings Limited. Bahamas 100 % 100 % Latin Airways Corp. Panamá 100 % 100 % LifeMiles Ltd. Bermuda 89.90 % 70 % Avianca Costa Rica S.A. Costa Rica 92.42 % 92.42 % Taca International Airlines, S.A. El Salvador 96.83 % 96.83 % Tampa Cargo Logistics, Inc. U.S. 100 % 100 % Tampa Cargo S.A.S. Colombia 100 % 100 % Technical and Training Services, S.A. de C.V. El Salvador 99 % 99 % Regional Express Américas S.A.S. Colombia 100 % 100 % Vu–Marsat S.A. Costa Rica 100 % 100 % |
Schedule of Total Fleet Consisting | As of December 31, 2020, and 2019, Avianca Holdings S.A. had a total fleet consisting of: December 31, 2020 December 31, 2019 Aircraft Owned/ Financial Operating Lease (1) Total Owned/ Financial Operating Lease Total Airbus A-319 23 2 25 23 4 27 Airbus A-320 22 33 55 31 26 57 Airbus A-320 3 7 10 3 7 10 Airbus A-321 5 6 11 7 6 13 Airbus A-321 — 2 2 — 2 2 Airbus A-330 1 6 7 3 7 10 Airbus A-330F 6 — 6 6 — 6 Airbus A-300F 3 — 3 5 — 5 Boeing 787-8 8 5 13 8 5 13 Boeing 787-9 — 1 1 — 1 1 ATR-72 11 — 11 15 — 15 Boeing 767F 2 — 2 2 — 2 Embraer E-190 — — — 10 — 10 84 62 146 113 58 171 |
Turbo leasing company Ltd and Aerotaxis La Costea SA [member] | |
Disclosure of subsidiaries [line items] | |
Summary of the Movements in the Financial Statements Due to the Sale and Corresponding Loss | The following is the summary of the movements in the consolidated financial statements due to the sale and the corresponding loss of control of Turbo Leasing Company Ltd. and Aerotaxis La Costeña S.A. Turboprop Aerotaxis La Total Sale Cash amount in the company $ 8,876 $ 2,889 $ 11,765 Amount of company assets, without cash 28,632 6,928 35,560 Amount of liabilities in the company (19,507 ) (3,729 ) (23,236 ) Total net assets of the subsidiary 18,001 6,088 24,089 Noncontrolling interest (5,769 ) (1,943 ) (7,712 ) Participation of GTH / Nicaragüense de Aviación $ 12,232 $ 4,145 $ 16,377 Consideration received in cash 6,425 4,465 10,890 Loss / gain on sale of subsidiaries $ (5,807 ) $ 320 $ (5,487 ) |
Getcom Intl Investments SL [member] | |
Disclosure of subsidiaries [line items] | |
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 the corresponding loss of control of Getcom Int’l Investments S.L: Cash amount at Getcom Int’l Investments S.L. $ 1,764 Amount of assets of Getcom Int’l Investments S.L., without cash 20,561 Amount of liabilities at Getcom Int’l Investments S.L. (6,980 ) Total net assets of the subsidiary $ 15,345 noncontrolling interest (7,674 ) AVH participation 7,671 Consideration Received: Part of the consideration consisting of cash 18,000 Part of the consideration consisting of accounts receivable 250 Fair value of the consideration received $ 18,250 Gain on sale of subsidiary $ 10,579 |
Avianca Peru S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Summary of the Movements in the Financial Statements Due to the Sale and Corresponding Loss | The following is the summary of the movements in the consolidated financial statements due to the liquidation and the corresponding loss of control of Avianca Perú S.A. Avianca Perú S.A. Cash amount in the company $ 1,778 Amount of company assets, without cash 36,768 Amount of liabilities in the company (12,325 ) Total net assets of the subsidiary 26,221 Loss on liquidation of subsidiary $ 26,221 |
Basis of preparation of the c_2
Basis of preparation of the consolidated financial statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Detailed Information Of Prepetition Liabilities [Abstract] | |
Summary of the Prepetition Liabilities Under Chapter 11 | The prepetition liabilities of the 39 companies under chapter 11 as of May 10, 2020, and its update as of December 31, 2020 are the following: December 31, Debt 4,200,663 Accounts payable 261,126 Accrued expenses 22 Provisions for legal claims 18,107 Provisions for return conditions 160,839 Other liabilities 330 4,641,087 |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
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 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Operational Information by Reportable Segment | The Group’s operational information by reportable segment for the year ended December 31, 2020 are as follows: For the year ended December 31, 2020 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 1,566,546 $ 145,039 $ — $ 1,711,585 Inter-segment (102,770 ) 3,213 99,557 — Total operating revenue $ 1,463,776 $ 148,252 $ 99,557 $ 1,711,585 Operating expenses 1,582,249 117,432 99,349 1,799,030 Depreciation, amortization and impairment 532,150 11,931 (10,017 ) 534,064 Operating (loss) profit (650,623 ) 18,889 10,225 (621,509 ) Interest expense (352,421 ) (25,897 ) — (378,318 ) Interest income 2,904 1,502 — 4,406 Derivative instruments (3,064 ) 1 — (3,063 ) Foreign exchange (46,312 ) (182 ) — (46,494 ) Equity method 274 — — 274 Income tax expense (49,387 ) (44 ) — (49,431 ) Net (loss) profit for the period $ (1,098,629 ) $ (5,731 ) $ 10,225 $ (1,094,135 ) Total Assets $ 6,757,269 $ 226,391 $ (123,166 ) $ 6,860,494 Total Liabilities $ 7,289,684 $ 891,841 $ (19,259 ) $ 8,162,266 The Group’s operational information by reportable segment for the year ended December 31, 2019 are as follows: For the year ended December 31, 2019 Air Loyalty (1) Eliminations Consolidated Operating revenue: (2) External customers $ 4,284,901 $ 336,595 $ — $ 4,621,496 Inter-segment 149,595 1,856 (151,451 ) — Total operating revenue $ 4,434,496 $ 338,451 $ (151,451 ) $ 4,621,496 Operating expenses 4,067,372 196,116 (151,768 ) 4,111,720 Depreciation, amortization and impairment 1,061,766 11,991 (9,700 ) 1,064,057 Operating (loss) profit (694,642 ) 130,344 10,017 (554,281 ) Interest expense (263,049 ) (36,893 ) — (299,942 ) Interest income 6,741 2,300 — 9,041 Derivative instruments (1,892 ) (272 ) — (2,164 ) Foreign exchange (24,117 ) (73 ) — (24,190 ) Equity method 1,524 — — 1,524 Income tax expense (24,042 ) 59 — (23,983 ) Net (loss) profit for the period $ (999,477 ) $ 95,465 $ 10,017 $ (893,995 ) Total Assets $ 7,219,611 $ 243,249 $ (188,950 ) $ 7,273,910 Total Liabilities $ 6,522,422 $ 880,483 $ (134,162 ) $ 7,268,743 The Group’s operational information by segment reportable 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 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 899 — — 899 Income tax expense (20,258 ) 45 — (20,213 ) Net segment profit (loss) 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 (1) Loyalty revenue for redeemed miles is found in the entry of passengers revenue. (2) 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 in the Avianca Holdings Subsidiaries. |
Schedule of Revenues by Geographic Area | The Group’s revenues by geographic area for the years ended December 31, 2020, 2019 and 2018 are as follows: For the years ended December 31, 2020 2019 2018 United States of America $ 297.286 $ 681,728 $ 462,091 Central America and the Caribbean 318.723 289,543 248,896 Colombia 671.272 2,378,772 2,580,979 South America (excluding Colombia) 366.290 754,574 732,586 Other 58.014 516,879 866,278 Total operating revenue $ 1,711,585 $ 4,621,496 $ 4,890,830 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Contractual Maturities of Non-derivative Financial Liabilities | The following are the contractual maturities of non-derivative As of December 31, 2020 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 4,235,197 $ 4,235,197 $ 4,235,197 — — — — Long–term Debt 292,503 375,007 69,564 305,443 — — — Bonds 352,011 352,011 352,011 — — — — Use rights – IFRS 16 1,401,545 1,646,587 485,985 326,674 263,657 234,064 336,207 Total debt 6,281,256 6,608,802 5,142,757 632,117 263,657 234,064 336,207 Accounts payable 506,256 506,256 489,031 17,225 — — — Accrued Expenses 16,448 16,448 16,448 — — — — Contractual maturities $ 6,803,960 $ 7,131,506 $ 5,648,236 $ 649,342 $ 263,657 $ 234,064 $ 336,207 As of December 31, 2019 Years Carrying Contractual One Two Three Four Five and Short–term borrowings $ 118,137 $ 123,734 $ 123,734 $ — $ — $ — $ — Long–term Debt 3,008,412 3,640,008 554,021 540,615 853,756 612,874 1,078,742 Bonds 531,244 698,436 105,022 43,598 43,598 506,218 — Use rights – IFRS 16 1,198,530 1,321,871 264,510 246,759 234,094 206,367 370,141 Debt – assets held for sale 490,458 490,458 490,458 — — — — Total debt 5,346,781 6,274,507 1,537,745 830,972 1,131,448 1,325,459 1,448,883 Accounts payable 542,546 542,546 530,615 11,931 — — — Accrued Expenses 87,610 87,610 87,610 — — — — Contractual maturities $ 5,976,937 $ 6,904,663 $ 2,155,970 $ 842,903 $ 1,131,448 $ 1,325,459 $ 1,448,883 |
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, 2020 USD Colombian Pesos Euros Mexican Pesos Argentinean Brazilian Reals Others Total Cash and cash equivalents $ 855,733 $ 33,968 $ 14,299 $ 21,985 $ 1,883 $ 1,478 $ 6,092 $ 935,438 Trade and other receivables, net of expected credit losses 70,018 41,985 43,709 44,878 1,263 10,646 18,038 230,537 Secured debt and bonds (3,919,738 ) (3,823 ) (102,935 ) — — — — (4,026,496 ) Unsecured debt (173,632 ) (535 ) — — — — — (174,167 ) Accrued expenses (14,386 ) (755 ) (92 ) — — (1,196 ) (19 ) (16,448 ) Accounts payable (337,854 ) (96,252 ) (15,893 ) (19,354 ) (2,261 ) (4,804 ) (29,838 ) (506,256 ) Net financial position exposure $ (3519,859 ) $ (25,412 ) $ (60,912 ) $ 47,509 $ 885 $ 6,124 $(5,727 ) $(3,557,392 ) Sensitivity analysis Change forecast in exchange rate (3.78 )% (8.19 )% (4.63 )% (22.32 )% (18.44 )% Effect on profit of the yea r $ 960.57 $ 4,988 $ (2,200 ) $ (19,753 ) $ (1,129 ) December 31, 2019 USD Colombian Pesos Euros Mexican Pesos Argentinean Brazilian Others Total Cash and cash equivalents $ 209,139 $ 87,382 $ 15,111 $ 4,789 $ $ — $ 15,007 $ 342,473 Trade and other receivables, net of expected credit losses 137,692 1,474 81,982 8,591 6,637 17,764 5,499 259,639 Secured debt and bonds (4,554,328 ) (16,285 ) (120,055 ) — — — — (4,690,668 ) Unsecured debt (160,801 ) (4,854 ) — — — — — (165,655 ) Debt – Assets held for sale (449,340 ) — (41,118 ) — — — — (490,458 ) Accrued expenses (63,385 ) (19,560 ) (2,726 ) (408 ) — (1,531 ) — (87,610 ) Accounts payable (363,129 ) (51,313 ) (38,716 ) (19,258 ) — (17,437 ) (52,693 ) (542,546 ) Net financial position exposure $ (5,244,152 ) $ (3,156 ) $ (105,522 ) $ (6,286 ) $ 17,682 $ (1,204 ) $ (32,187 ) $ (5,374,825 ) Sensitivity analysis Change forecast in exchange rate (6.4 )% (0.045 )% (4.4 )% 9.1 % 2.6 % Effect on profit of the year $ 201 $ (48 ) $ 279 $ 1,617 $ (32 ) |
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 $ 678,720 $ 272,013 Financial liabilities (2,675,990 ) (4,421,351 ) Interest rate swaps — 471 Total $ (1,997,270 ) $ (4,148,867 ) Floating rate instruments Financial assets $ 40,050 $ 5,685 Financial liabilities (1,759,951 ) (925,430 ) Total $ (1,719,901 ) $ (919,745 ) |
Summary of Debt-to-capital Ratio of the Company | Following is a summary of the debt–to/capital ratio of the Group: Notes December 31, December 31, Debt 17 $ 6,281,256 $ 5,346,781 Less: cash and cash equivalents and restricted cash 8 (935,438 ) (342,473 ) Total net debt 5,345,818 5,004,308 Total equity (deficit) (1,301,772 ) 5,167 Total Capital $ 4,044,046 $ 5,009,475 Net debt–to–capital ratio 132 % 100 % |
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, 2020 are as follows: December 31, 2020 Notes Carrying Fair value Financial assets Investments 13 $ 42,919 $ 42,919 Plan assets 21 216,548 216,548 $ 259,467 $ 259,467 Financial liabilities Short term borrowings and long–term debt 17 $ 6.281.256 $ 6,275,788 Derivative instruments 28,29 2.697 2,697 $ 6.283.953 $ 6,278,485 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, 2019 are as follows: December 31, 2019 Notes Carrying Fair value Financial assets Investments 13 $ 55,440 $ 55,440 Derivative instruments 28 536 536 Plan assets 21 204,527 204,527 $ 260,503 $ 260,503 Financial liabilities Short term borrowings and long–term debt 17 $ 5,346,781 $ 5,454,688 Derivative instruments 28,29 1,289 1,289 $ 5,348,070 $ 5,455,977 |
Cash and cash equivalents and_2
Cash and cash equivalents and restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents and Restricted Cash | Cash and cash equivalents and restricted cash as of December 31, 2020, and 2019 are as follows: December 31, 2020 December 31, Cash on hand and bank deposits $ 881,617 $ 339,010 Demand and term deposits (1) 29,522 3,462 Cash and cash equivalents 911,139 342,472 Restricted cash (2) 24,299 1 Cash, cash equivalents and restricted cash $ 935,438 $ 342,473 (1) As of December 31, 2020, and December 31, 2019, within the cash equivalents, there are demand and term deposits that amounted to $ 29,522 and $ 3,462, respectively. The use of term deposits depends on the cash requirements of the Group. As of December 31, 2020, term deposits accrue annual interest rates between 0.62% and 3.91% in Colombian pesos and between 3.54% and 5.38% in dollars. As of December 31, 2019, term deposits accrue annual interest rates between 3.61% and 5.21% in Colombian pesos and between 1.94% and 6.02% in dollars. (2) As of December 31, 2020, the total restricted cash will hedge events or claims against the Group. These resources have not risk of change in value on the time and are not available for general use within the Group. |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Trade and Other Receivables | Trade and other receivables as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Trade (1) $ 130,009 $ 222,694 Employee advances 3,835 3,267 Other (2) 145,315 72,331 $ 279,159 $ 298,292 Less provision for expected credit losses (46,324 ) (42,001 ) Total $ 232,835 $ 256,291 Net current $ 229,917 $ 233,722 Net non-current 2,918 22,569 Total $ 232,835 $ 256,291 Trade receivables are non-interest (1) As of December 31, 2020, trade accounts receivable are mainly comprised of: $ 69,000 pertaining to pending deposits, $ 102,000 corresponding to debtors and $ 58,000 to other types of debtors. Its decrease is mainly due to the suspension of the operation. (2) As of December 2020, corresponds mainly to accounts receivables to Chelsea Securities, S.A for $34,980, USAV Flow for $59,295, miles trust contract for $15,405, Rolls Royce for $11,423, Luis Montes de Oca for $2,770, Airbus for $1,397. As of December 2019, corresponds mainly to amounts charged to Chelsea Securities S.A. for $34.980. |
Summary of Changes in Allowance for Doubtful Accounts | Changes during the year in the provision for expected credit losses for as follows: December 31, 2020 December 31, 2019 Balance at beginning of year $ 42,001 $ 12,430 Provision bad debt expense (1) 12,069 50,703 Reversal against the allowance (7,746 ) (21,132 ) Total $ 46,324 $ 42,001 (1) As December 31, 2019, includes impairment of the account receivable assigned by Grupo Aeromar SA of CV to Chelsea Securities, S.A., this account receivable is unsecured, originated in a potential investment of the Group in the Mexican market, a decision to the invest wasn’t approved |
Summary of Aging of Accounts Receivables | The aging of trade receivables at the end of the reporting period is as follows: December 31, December 31, Neither past due nor impaired $ 76,894 $ 129,732 Past due 1–30 days 535 24,259 Past due 31–90 days 13,168 16,896 Past due 91 days 39,412 51,807 Total trade $ 130,009 $ 222,694 Less provision for expected credit losses (11,344 ) (7,021 ) Trade receivables, net of expected credit losses $ 118,665 $ 215,673 |
Balances and transactions wit_2
Balances and transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Summary of Related Party Transactions | The following is a summary of transactions and balances of related parties for the periods ended December 31, 2020 and 2019: Company Country December 31, 2020 December 31, 2019 Receivables Payables Revenues Expenses Receivables Payables Revenues Expenses OceanAir Linhas Aéreas. S.A. Brasil — 1,994 124 2,653 2,906 2,178 6,988 26,712 Opera Transporte y logística Integral S.A.S. Colombia — 443 — 3,329 — 448 6 4,390 Empresariales S.A.S. Colombia — 279 — 1,111 — 475 — 2,755 Global Operadora Hotelera S.A.S Colombia 3 4 2 90 4 368 6 2,532 Corp Hotelera Internac.. S.A. El Salvador — 62 — — — 131 — 731 Servicios Aéreos Nacionales S.A. Costa Rica — — — — 180 104 213 — Turbo Leasing Corp. Bahamas — — — — 196 — 196 — Other 154 — — 19 62 9 3 58 Subtotal $ 157 $ 2,782 $ 126 $ 7,202 $ 3,348 $ 3,713 $ 7,412 $ 37,178 Receivables Payables Receivables Payables Short–term $ 157 $ 2,782 $ 3,348 $ 3,713 |
Disclosure of Transaction of Related Party, Nature of Services | The following is a description of the nature of the services provided by and for related parties. These transactions include: Related party Nature of Services Hotelería Internacional S.A. Corporación Hotelera Internacional, S.A. Accommodation services for crews and employees of the Companies. Empresariales S.A.S. Transportation services for employees of Avianca, S.A. OceanAir Linhas Aéreas, S.A. – in judicial reorganization On July 14, 2020, OceanAir was declared bankrupt. All contracts to date are not in force given the current situation of OceanAir and are not being executed, therefore, Avianca sent OceanAir a notification of termination of the contracts, so there are no more commercial relationships between the companies. Opera Transporte y logística Integral SAS, before 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: For the year ended December 31, 2020 For the year ended December 31, 2019 Salaries $ 9,249 $ 12,467 Bonuses 9,731 6,658 Social benefits 4,638 2,149 Compensation 18 222 Others 757 906 Total $ 24,393 $ 22,402 |
Expendable spare parts and su_2
Expendable spare parts and supplies, net of provision for obsolescence (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Expendable Spare Parts and Supplies | Expendable spare parts and supplies as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Expendable spare parts $ 73,502 $ 79,427 Supplies 7,931 8,907 Total $ 81,433 $ 88,334 |
Summary of Rollforward of Inventory Allowance | Changes during the year in the provision of obsolescence for expandable spare parts and suppliers as follows: December 31, 2020 December 31, 2019 Balance at beginning of year $ 5,330 $ 6,505 Expense (reversal) for obsolete inventory (32 ) 2,075 Write-offs against the allowance (820 ) (3,250 ) Balance at end of year $ 4,478 $ 5,330 |
Prepayments (Tables)
Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Prepaid Balances | As of December 31, 2020, and 2019 prepaid balances are as follows: December 31, 2020 December 31, 2019 Prepaid commissions (1) $ 19,408 $ 41,727 Prepaid compensations clients 1,870 13,768 Premiums for insurance policies 10,241 4,716 Other 4,728 8,801 Total $ 36,247 $ 69,012 (1) Advance payment made to IATA for service charges of 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. |
Short term investments, depos_2
Short term investments, deposits and other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Deposits and Other Assets | Short term investments, deposits and other assets as of December 31, 2020 and 2019 are as follows: Notes December 31, 2020 December 31, 2019 Short term investments (1) $ 42,919 $ 55,440 Total $ 42,919 $ 55,440 Deposits and other assets – short term: Deposits with lessors (2) $ 19,944 $ 11,963 Guarantee deposits (3) 6,509 8,657 Others (4) 11,091 18,030 Subtotal 37,544 38,650 Fair value of derivative instruments 31 — 525 Total $ 37,544 $ 39,175 Deposits and other assets – long term: Deposits with lessors (2) $ 41,098 $ 35,374 Long term investments 1,339 — Guarantee deposits (3) 12,262 10,032 Others (4) 848 8,657 Subtotal 55,547 54,063 Fair value of derivative instruments 31 — 11 Total $ 55,547 $ 54,074 (1) The short-term classification corresponds to funds invested for terms of less than one year; Excess cash in treasury is invested in accordance with the Group’s Investment Policy. Otherwise they are classified as long term. (2) 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. (3) Corresponds mainly to amounts paid to suppliers in connections with leasehold of airport facilities, among other service agreements. (4) Corresponds mainly to other security deposits, national tax refund titles and deferred charges and deferred charge. |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Flight Equipment, Property and Other Equipment | Flight equipment, property and other equipment as of December 31, 2020, and 2019 is as follows: Flight Capitalized Rotable parts Reimbursement Administrative Others Total Gross: December 31, 2019 $ 4,933,056 $ 593,794 $ 173,318 $ 181,327 $ 138,599 $ 319,138 $ 6,339,232 Additions 205,289 73,863 6,812 10,118 2,567 11,153 309,803 Disposals (240,812 ) (123,494 ) (18,140 ) (79,463 ) — (41,451 ) (503,360 ) Transfers 1,710 2,624 (4,301 ) — 414 (447 ) — Reclassification assets held for sale 352,867 — — — — — 352,867 Revaluation — — — — 1,074 — 1,074 December 31, 2020 $ 5,252,110 $ 546,787 $ 157,689 $ 111,982 $ 142,654 $ 288,394 $ 6,499,616 Accumulated depreciation: December 31, 2019 $ 945,220 $ 225,973 $ 47,277 $ — $ 27,487 $ 139,958 $ 1,385,915 Additions 358,400 88,666 7,307 — 2,752 25,694 482,819 Impairment — — — — 1,070 — 1,070 Disposals (38,153 ) (114,911 ) (6,702 ) — — (21,966 ) (181,732 ) Transfers (1,823 ) 2,624 (769 ) — 414 (446 ) — December 31, 2020 $ 1,263,644 $ 202,352 $ 47,113 $ — $ 31,723 $ 143,240 $ 1,688,072 Net: December 31, 2019 $ 3,987,836 $ 367,821 $ 126,041 $ 181,327 $ 111,112 $ 179,180 $ 4,953,317 December 31, 2020 $ 3,988,466 $ 344,435 $ 110,576 $ 111,982 $ 110,931 $ 145,154 $ 4,811,544 Flight equipment, property and other equipment as of December 31, 2019 and December 31, 2018 is as follows: Flight Capitalized Rotable Reimbursement Administrative Others Total Gross: December 31, 2018 $ 5,244,160 $ 791,004 $ 225,841 $ 260,000 $ 135,838 $ 263,433 $ 6,920,276 Adoption IFRS 16 1,010,200 — — — — 69,533 1,079,733 January 1, 2019 $ 6,254,360 $ 791,004 $ 225,841 $ 260,000 $ 135,838 $ 332,966 $ 8,000,009 Additions 303,476 219,866 16,196 21,324 — 38,198 599,060 Disposals (48,381 ) (114,323 ) (43,207 ) (95,848 ) — (46,583 ) (348,342 ) Transfers 18,237 (8,554 ) (5,228 ) (4,149 ) — (306 ) — Sale of subsidiaries (31,270 ) (5,424 ) (198 ) — — (2,739 ) (39,631 ) Transfers to assets held for sale (1,563,366 ) (288,775 ) (20,086 ) — — (2,398 ) (1,874,625 ) Revaluation — — — — 2,761 — 2,761 December 31, 2019 $ 4,933,056 $ 593,794 $ 173,318 $ 181,327 $ 138,599 $ 319,138 $ 6,339,232 Accumulated depreciation: December 31, 2018 $ 1,028,191 $ 364,976 $ 57,238 $ — $ 10,789 $ 145,765 $ 1,606,959 Additions 341,699 157,572 20,047 — 2,178 26,780 548,276 Impairment 455,794 — — — 14,867 — 470,661 Disposals (39,166 ) (111,793 ) (12,960 ) — (347 ) (28,396 ) (192,662 ) Transfers 7,682 (6,985 ) (637 ) — — (60 ) — Sale of subsidiaries (11,560 ) (3,597 ) (34 ) — — (1,741 ) (16,932 ) Transfers to assets held for sale (837,420 ) (174,200 ) (16,377 ) — — (2,390 ) (1,030,387 ) December 31, 2019 $ 945,220 $ 225,973 $ 47,277 $ — $ 27,487 $ 139,958 $ 1,385,915 Net: December 31, 2018 $ 4,215,969 $ 426,028 $ 168,603 $ 260,000 $ 125,049 $ 117,668 $ 5,313,317 December 31, 2019 $ 3,987,836 $ 367,821 $ 126,041 $ 181,327 $ 111,112 $ 179,180 $ 4,953,317 |
Intangible assets and good wi_2
Intangible assets and good will, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Intangible Assets And Good Will, Net Of Amortization | Intangible assets and goodwill, net of amortization as of December 31, 2020 and 2019 are follows: December 31, 2020 December 31, 2019 Routes $ 29,707 $ 31,911 Trademarks 3,938 3,938 Software and webpages 147,247 158,690 Other intangible rights — 2,935 Subtotal 180,892 197,474 Goodwill 308,033 308,033 Total Intangible Assets $ 488,925 $ 505,507 |
Detail Of Intangible Assets | The following is the detail of intangible assets as of December 31, 2020 and 2019: Goodwill Routes Trade- Software & Others Total Cost: December 31, 2019 $ 311,180 $ 52,481 $ 3,938 $ 282,126 $ 27,521 $ 677,246 Additions (1) — — — 43,764 — 43,764 Disposals (1) — — — (10,171 ) — (10,171 ) December 31, 2020 $ 311,180 $ 52,481 $ 3,938 $ 315,719 $ 27,521 $ 710,839 Accumulated Amortization and Impairment Losses: December 31, 2019 $ 3,147 $ 20,570 $ — $ 123,436 $ 24,586 $ 171,739 Amortization for the year — 2,204 — 45,036 2,935 50,175 December 31, 2020 $ 3,147 $ 22,774 — $ 168,472 $ 27,521 $ 221,914 Carrying Amounts: December 31, 2019 $ 308,033 $ 31,911 $ 3,938 $ 158,690 $ 2,935 $ 505,507 December 31, 2020 $ 308,033 $ 29,707 $ 3,938 $ 147,247 — $ 488,925 (1) The main additions of other intangibles correspond to SAP project for $33,346, digital transformation project for $2,387, CRM project $2,179, Core System project $1,108, Software and webpages for $4,071. In relation to deconsolidation of Avianca Perú S.A. there is a disposal of $10,171. The following is the detail of intangible assets as of December 31, 2019 and 2018: Goodwill Routes Trade- Software & Others (1) Total Cost: December 31, 2018 $ 311,180 $ 52,481 $ 3,959 $ 171,400 $ 101,447 $ 640,467 Additions (1) — — — 34,751 2,099 36,850 Transfers — — — 76,025 (76,025 ) — Disposals — — (21 ) — — (21 ) Sale of subsidiaries — — — (50 ) — (50 ) December 31, 2019 $ 311,180 $ 52,481 $ 3,938 $ 282,126 $ 27,521 $ 677,246 Accumulated Amortization and Impairment Losses: December 31, 2018 $ 3,147 $ 18,182 $ — $ 86,930 $ 18,405 $ 126,664 Amortization for the year — 2,388 — 36,551 6,181 45,120 Sale of subsidiaries — — — (45 ) — (45 ) December 31, 2019 $ 3,147 $ 20,570 $ — $ 123,436 $ 24,586 $ 171,739 Carrying Amounts: December 31, 2018 $ 308,033 $ 34,299 $ 3,959 $ 84,470 $ 83,042 $ 513,803 December 31, 2019 $ 308,033 $ 31,911 $ 3,938 $ 158,690 $ 2,935 $ 505,507 (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. |
Carrying Value Of The Goodwill Allocated To The Air Transport Segment | The carrying value of the goodwill allocated to the air transport segment is as follows: December 31, 2020 December 31, 2019 Goodwill $ 308,033 $ 308,033 Routes 23,463 23,463 Trademarks 3,938 3,938 |
Main Hypotheses Used In The Calculations Of The Value In Use | The main assumptions used in the calculations of the value in use are as follows: December 31, 2020 December 31, 2019 Carrying amount of goodwill, routes and trademarks with indefinite life $ 335,434 $ 335,434 Impairment losses — — Revenue growth p.a. over planning period 2.5% to 24.8% 2.3% to 5% Operating income over planning period (5.9%) to 11.4% 5.2% to 8.8% Capital expenditures over planning period 1.24% to 3.86% (0.2%) to 12.69% Duration of planning period 5 years 5 years Revenue growth p.a. after planning period 3.7% 4.3% Operating Income after planning period 11.50% 10.00% Capital expenditures after planning period 2.43% 6.43% Business Enterprise Value 5,724,540 9,269,446 Discount rate (1) 14.11% 8.72% |
Assets held for sale (Tables)
Assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Assets Held for Sale | Assets held for sale as of December 31, 2020 and December 31, 2019 consisted of the following assets. December 31, December 31, Airbus aircraft (1,2) 128,640 Airbus aircraft – Sale and subsequent lease (1,2) 489,149 Parts inventory (3) 884 63,264 Total assets held for sale $ 884 $ 681,053 Liabilities associated with the assets held for sale 490,458 Total Debt assets held for sale $ — $ 490,458 (1) During 2020, the aircraft: 2 Airbus A319, 3 Airbus A320, 4 Airbus A321, 2 Airbus A330 and 1 Airbus A330F, were classified as part of property and equipment for $ 352,867 (See note 14) due to their The sale does not meet the criteria of “highly probable”, derived from the current situation of the Group due to the effects of COVID-19 (2) In December 2019, the Group signed a letter of intent for the sale and subsequent lease agreement with Avolon Aerospace Leasing Limited in relation to 15 aircraft (Airbus A320 and A321), of which 9 Airbus A320 aircraft were sold during 2020 with subsequent lease, for a value of $ 263,293 and this operation generated a loss on sale of $ 1,628. (3) As of December 31, 2020, 10 Embraer 190s were sold for and this operation generated a loss on sale of (4) The assets classified as held for sale belong to the operating segment of air transportation. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of Loans and Borrowings, Measured at Amortized Cost | Loans and borrowings, measured at amortized cost, as of December 31, 2020 and December 31, 2019 are summarized as follows: December 31, 2020 December 31, 2019 Current: Short–term borrowings and current portion of long–term debt $ 4,235,197 $ 569,292 Current portion-bonds 352,011 65,632 Short-term aircraft rentals - right of use 414,410 229,260 Short-term other rentals - right of use 9,476 7,860 $ 5,011,094 $ 872,044 Noncurrent: Long–term debt $ 292,503 $ 2,557,257 Non-current — 465,612 Long-term aircraft rentals – right of use 929,789 899,265 Long-term other rentals – right of use 47,870 62,145 $ 1,270,162 $ 3,984,279 |
Schedule of Outstanding Obligations | Terms and conditions of the Group’s outstanding obligations for periods ended December 31, 2020 and December 31, 2019, are as follows: December 31, 2020 Due Weighted interest rate Nominal Carrying Short–term borrowings 2022 6.00 % $ 108,257 $ 99,857 Long–term debt 2029 6.91 % 4,975,853 4,427,843 Bonds 2023 8.88 % 550,000 352,011 Aircraft rentals 2031 4.92 % 1,266,489 1,344,199 Other rentals 2037 7.16 % 87,405 57,346 Total $ 6,988,004 $ 6,281,256 December 31, 2019 Due Weighted average interest rate Nominal Carrying Short–term borrowings 2020 6.43 % $ 128,671 $ 118,137 Long–term debt 2029 4.68 % 4,185,526 3,008,412 Bonds 2023 9.93 % 550,000 531,244 Aircraft rentals 2031 4.92 % 1,347,219 1,128,525 Other rentals 2037 7.37 % 87,405 70,005 Total $ 6,298,821 $ 4,856,323 |
Summary of Detail of the Debt Balance | Below the detail of the debt balance by type of loan: December 31, 2020 December 31, 2019 Aircraft $ 1,883,281 $ 1,832,500 Corporate 2,644,419 1,294,049 Bonds 352,011 531,244 Right of use IFRS 16 1,401,545 1,198,530 $ 6,281,256 $ 4,856,323 |
Schedule of Future Payments on Long-term Debt | Years One Two Three Four Five and Total December 31, 2020 $ 4,304,761 $ 305,443 $ — $ — $ — $ 4,610,204 December 31, 2019 $ 554,021 $ 540,615 $ 853,756 $ 612,874 $ 1,078,742 $ 3,640,008 |
Schedule of Future Payments on Bonds | Years One Two Three Four Five and Total December 31, 2020 $ 352,011 $ — $ — $ — $ — $ 352,011 December 31, 2019 $ 105,022 $ 43,598 $ 43,598 $ 506,218 $ — $ 698,436 |
Schedule of Changes in Liabilities Derived from Financing Activities | Changes in liabilities derived from financing activities at December 31, 2020 January 1, New (1) New Leases (2) Financial Payments Interest Foreign Reclassification (4,5) December 31, 2020 Current interest-bearing loans and borrowings (excluding items listed below) $ 118,137 $ 51,223 $ — $ 6,707 $ (14,447 ) $ (2,400 ) $ (9,363 ) $ (50,000 ) $ 99,857 Current portion of long-term credits (excluding items listed below) $ 451,155 $ 1,048,941 $ — $ 174,384 $ (269,357 ) $ (102,713 ) $ (203,479 ) $ 3,036,409 $ 4,135,340 Current Bonds $ 65,632 $ — $ — $ 21,475 $ 85 $ — $ — $ 264,819 $ 352,011 Non-current $ 465,612 $ — $ — $ 2,314 $ — $ — $ 16,493 $ (484,419 ) $ — Non-current $ 2,557,257 $ 12,916 $ — $ — $ — $ — $ (1,319 ) $ (2,276,351 ) $ 292,503 Aircraft rentals – right of use $ 1,128,525 $ — $ 191,819 $ 79,730 $ (52,729 ) $ (28,919 ) $ 25,773 $ — $ 1,344,199 Other rentals – right of use $ 70,005 $ — $ 15 $ 1,688 $ (14,400 ) $ (2,031 ) $ 2,069 $ — $ 57,346 Total liabilities from financing activities $ 4,856,323 $ 1,113,080 $ 191,834 $ 286,298 $ (350,848 ) $ (136,063 ) $ (169,826 ) $ 490,458 $ 6,281,256 (1) The value indicated in the cash flow is $ 944,580, the difference corresponding to: $168,500 for the acquisition of Lifemiles. The transaction costs of the DIP financing contracts amount to $42,516. (2) Property and equipment acquired during the period under financial and operating lease; These movements have no effect on the consolidated statement of cash flows. (3) As part of reorganization proceedings on Chapter 11, 8 aircraft of financial lease and 4 aircraft recognized as rights of use were rejected. (4) $490,458 it was reclassified from liabilities associated with the assets held for sale to short-term and long-term debt, Likewise, a reclassification of long-term short-term debt of $2,073,197 has been recognized for purposes of non-compliance (5) As part of the debt restructuring, the Company Rolled-up Changes in liabilities derived from financing activities at December 31, 2019 January 1, Adoption New (2) New Leases (1) Financial Payments Interest Foreign Reclassification (3) December 31, Current interest-bearing loans and borrowings (excluding items listed below) $ 119,866 $ — $ 26,717 $ — $ 7,563 $ (27,833 ) $ (7,207 ) $ (969 ) $ — $ 118,137 Current portion of long-term credits (excluding items listed below) 469,500 — 144,783 — 155,444 (378,893 ) (162,096 ) (6,976 ) 229,393 451,155 Current Bonds 587,292 — — — 47,112 (26,820 ) (53,866 ) (3,667 ) (484,419 ) 65,632 Non-current — — 465,612 — — — — — — 465,612 Non-current 2,830,922 — 454,055 — (7,869 ) (719,851 ) 2,557,257 Aircraft rentals – right of use — 1,010,200 — 313,001 49,081 (194,676 ) (49,081 ) — — 1,128,525 Other rentals – right of use — 69,533 — 9,144 2,804 (9,518 ) (2,804 ) 846 — 70,005 Total liabilities from financing activities $ 4,007,580 $ 1,079,733 $ 1,091,167 $ 322,145 $ 262,004 $ (637,740 ) $ (275,054 ) $ (18,635 ) $ (974,877 ) $ 4,856,323 (1) Goods and equipment acquired during the period under finance and operative lease; these movements have no effect on the consolidated statement of cash flows. (2) The value indicated in the cash flow is $ 616,555, the difference of $ 465,612 corresponds to the value of the bonds exchanged ($484,419) in December 2019 less transaction costs ($18,807) and $9,000 corresponds to a loan acquired by Aerounion for the acquisition of the Airbus A330 aircraft with Scotiabank Bank, a movement that is not shown because it is related to property and equipment. (3) A reclassification of long-term short-term debt of $34,407 has been made for purposes of non-compliance |
Schedule of Classification of Debt | As of December 31, 2020, the debt is classified as follows: 31 de December, 2020 Guaranteed $ 4,026,496 Not Guaranteed 174,167 Subtotal $ 4,200,663 Debt in Chapter 11 $ 4,200,663 Loans 397,630 (Debtor in Possession) DIP 1,682,963 Total $ 6,281,256 |
Aircraft Rights Of Use [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Disclosure Of Schedule Of Future Payments On Aircraft right of use | Years One Two Three Four Five and Total December 31, 2020 $ 471,635 $ 319,849 $ 258,452 $ 229,118 $ 262,097 $ 1,541,151 December 31, 2019 $ 256,192 $ 238,618 $ 226,537 $ 198,880 $ 323,329 $ 1,243,556 |
Other right of use [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Disclosure Of Schedule Of Future Payments On Other right of use | Years One Two Three Four Five and Total December 31, 2020 $ 14,350 $ 6,825 $ 5,205 $ 4,946 $ 74,110 $ 105,436 December 31, 2019 $ 8,318 $ 8,141 $ 7,557 $ 7,487 $ 46,812 $ 78,315 |
Avianca Holdings S.A., Avianca Leasing, LLC and Grupo Taca Holdings Limited [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of senior notes outstanding and the corresponding balances | As of December 31, 2020, and December 31, 2019 the Senior Notes outstanding, and the corresponding balances are as follows: • Initial issue – existing bonds Issuing entities Original Total placed in Balance as of December 31, December 31, 2020 2019 Avianca Holdings S.A., Avianca Leasing LLC and Grupo Taca Holdings Limited USD 550,000 $ 71,073 $ 65,632 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 $367 million. Pending bonds $ 65,581 aggregate capital amount of 8.375% Senior Bonds payable in 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 (a): The Senior Notes matured on May 10, 2020 |
Avianca Holdings SA [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of senior notes outstanding and the corresponding balances | Issuing entities Original Total placed in Balance as of December 31, December 31, 2020 2019 Avianca Holdings S.A. (1) USD 484,419 $ 280,938 $ 465,612 Issuers: Avianca Holdings S.A. 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 $367 million. Pending bonds $484,419 aggregate capital amount of 9.00% Senior Bonds payable in 2023. Initial Issue Date: December 31, 2019. Issue Amount: $484,419 Interest: The Senior Notes will bear interest at a fixed rate of 9.00% per year, The first issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on November 10, Interest will accrue from May 10, 2020, The interest are accumulated from December 31, 2019. Transaction costs The transaction costs associated with this new bond issue were $18,807, which are presented as a lower value of the initial carry amounts. Maturity Date: The Senior Notes will mature on May 10, 2023 |
Accounts payable (Tables)
Accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Accounts Payable | Accounts payable as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Current: Trade accounts payable $ 381,486 $ 302,414 Taxes no related to rent (1) 105,046 210,330 Social Charges (2) 1,766 327 Other payables (3) 733 17,544 Total $ 489,031 $ 530,615 Non-Current: Trade accounts payable 5,086 2,112 Social Charges (2) 2,070 2,190 Other payables (3) 10,069 7,629 Total $ 17,225 $ 11,931 (1) These corresponds to taxes and fees charged to passengers that will be paid to the government authority such as airport taxes, departure and entry taxes to countries, etc. In addition to VAT and VAT withholding payable and that due to the COVID-19 (2) Represent payroll taxes and contributions based on salaries and compensation paid to employees of the Group in the various jurisdictions in which it operates. (3) The other accounts payable mainly include provisions for travel expenses, provisions for fees and accrued interest. As well as projects related to aircraft that are in the long term. |
Accrued expenses (Tables)
Accrued expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Disclosure of Accrued Expenses | Accrued expenses as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Operating expenses (1) $ 16,448 $ 82,117 Other accrued expenses (2) — 5,493 Total $ 16,448 $ 87,610 (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, 2020 | |
Text block [abstract] | |
Schedule of Provisions for Return Conditions | Provisions for return conditions as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Current $ 22,277 $ 21,963 Non – current 138,562 122,425 Total $ 160,839 $ 144,388 |
Schedule of Changes in Provisions for Return Conditions | Changes in provisions for return conditions as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Balances at beginning of year $ 144,388 $ 130,160 Provisions made 25,435 65,671 Provisions reversed (6,475 ) (49,557 ) Provisions used (2,509 ) (1,886 ) Balances at end of year $ 160,839 $ 144,388 |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Employee Benefits | Employee benefits as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Defined benefit plan $ 143,684 $ 156,732 Other benefits short term 91,176 105,792 Other benefits long term 3,736 4,491 Total $ 238,596 $ 267,015 Current $ 135,056 $ 148,678 Non – current 103,540 118,337 Total $ 238,596 267,015 |
Schedule of Fixed Number of Beneficiaries | December 31, 2020 December 31, 2019 Fair value of plan assets $ (216,548 ) $ (204,527 ) Present value of the obligation 360,232 361,259 Total employee benefit liability $ 143,684 $ 156,732 |
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, 2020 (recognized in Salaries, wages and benefits) Defined benefit Other benefits Current service cost $ 1,492 $ 2,062 Interest cost on net benefit obligation 16,472 3,625 Interest income on plan assets (12,191 ) — Net Cost $ 5,773 $ 5,687 Net benefit expense – year ended December 31, 2019 (recognized in Salaries, wages and benefits) Defined benefit Other benefits Current service cost $ 1,152 $ 1,359 Interest cost on net benefit obligation 16,376 3,780 Interest income on plan assets (12,827 ) — Net Cost $ 4,701 $ 5,139 |
Summary of Changes in Present Value of Defined Benefit Obligation | Changes in the present value of defined benefit obligation as of December 31, 2020 are as follows: Defined benefit Other benefits Total Benefit obligation as of December 31, 2019 300,288 60,971 361,259 Period cost 17,964 5,687 23,651 Benefits paid by employer (26,119 ) (3,737 ) (29,856 ) Remeasurements of defined benefit liability 9,498 6,164 15,662 Other 145 — 145 Exchange differences (9,832 ) (797 ) (10,629 ) Benefit obligation as of December 31, 2020 291,944 68,288 360,232 Fair value of plan assets (216,548 ) — (216,548 ) Total employee benefit liability $ 75,396 $ 68,288 $ 143,684 Current 39,219 3,333 42,552 Non-current 36,177 64,955 101,132 Total $ 75,396 $ 68,288 $ 143,684 Changes in the present value of defined benefit obligation as of December 31, 2019 are as follows: Defined benefit Other benefits Total Benefit obligation as of December 31, 2018 $ 268,486 $ 54,970 $ 323,456 Period cost 17,528 5,139 22,667 Benefits paid by employer (27,726 ) (5,190 ) (32,916 ) Remeasurements of defined benefit liability 42,048 7,878 49,926 Exchange differences (48 ) (1,826 ) (1,874 ) Benefit obligation as of December 31, 2019 300,288 60,971 361,259 Fair value of plan assets (204,527 ) — (204,527 ) Total employee benefit liability $ 95,761 $ 60,971 $ 156,732 Current $ 39,539 $ 3,346 $ 42,885 Non-current 56,222 57,625 113,847 Total $ 95,761 $ 60,971 $ 156,732 |
Schedule of Fair Value of Plan Assets | Changes in the fair value of plan assets are as follows: Defined Fair value of plan assets at December 31, 2019 $ 204,527 Interest income on plan assets 12,191 Remeasurement of interest assumptions 1,625 Employer contributions 29,650 Benefits paid (22,246 ) Exchange differences (9,199 ) Fair value of plan assets at December 31, 2020 $ 216,548 Defined Fair value of plan assets at December 31, 2018 $ 178,594 Interest income on plan assets 12,827 Remeasurement of interest assumptions 7,385 Employer contributions 34,083 Benefits paid (25,509 ) Exchange differences (2,853 ) Fair value of plan assets at December 31, 2019 204,527 |
Schedule of Other Comprehensive Income | For the year ended December 31, 2020 and 2019, the remeasurements of defined benefit plan liability, net of $(14,037) and $(42,541) respectively were recognized in other comprehensive income. December 31, December 31, Actuarial gains (losses) recognized in other comprehensive income $ (15,662 ) $ (49,926 ) Return on plan assets adjustment 1,625 7,385 Losses recognized in other comprehensive income $ (14,037 ) $ (42,541 ) |
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 6.00 % 6.25 % Price inflation 3.00 % 3.00 % Future salary increases Pilots 4.00 % 4.00 % Cabin crew 4.00 % 4.00 % Other employees 4.00 % 4.00 % Future pension increase 3.00 % 3.00 % 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, 2020 December 31, 2019 Equity securities 56.00 % 31.00 % Debt securities 12.00 % 18.00 % Domestic Corporate bonds 23.00 % 44.00 % Foreign government/corporate bonds 2.00 % 1.00 % Other 7.00 % 6.00 % |
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, 2020 December 31, 2019 Year 1 $ 34,318 $ 34,655 Year 2 20,714 21,413 Year 3 21.303 21,868 Year 4 22,253 22,537 Year 5 21,841 23,288 Next 5 years 115,073 117,918 $ 235,502 $ 241,679 |
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 (18,862 ) 21,856 Pension increase 16,501 (14,348 ) Mortality table (1,317 ) (13,317 ) Healthcare cost table (2,252 ) (8,887 ) |
Air traffic liability and fre_2
Air traffic liability and frequent flyer deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Air Traffic Liability | The balance as of December 31, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Air traffic liability $ 399,184 $ 337,363 Miles deferred revenue 162,013 187,931 Current $ 561,197 $ 525,294 Miles deferred revenue $ 290,802 $ 229,701 Non current $ 290,802 $ 229,701 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of other liabilities | The other liabilities as of December 31, 2020 and 2019 are as follows: Notes December 31, December 31, Derivative instruments 28, 29 $ 2,697 $ 1,289 Deferred Revenue(1) 7,270 55,256 Other 2,149 14 Total $ 12,116 $ 56,559 Current $ 4,144 $ 5,110 Non-current(1) 7,972 51,449 Total $ 12,116 $ 56,559 (1) Corresponds mainly to deferred profits from sales and subsequent. The variation corresponds mainly to the recognition of $ 38,200 of profit on the sale of aircraft. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Authorized, Issued and Paid Shares | The following is a summary of authorized, issued and paid shares: December 31, 2020 December 31, 2019 Authorized shares 4,000,000,000 4,000,000,000 Common shares issued and paid 660,800,003 660,800,003 Preferred shares issued and paid 336,187,285 336,187,285 |
Schedule of Movement of the Other Comprehensive Income | The movement of the other comprehensive income from December 31 2019, to December 31, 2020, 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, 2019 $ (3,098 ) $ 457 $ (116,704 ) $ 3 $ 527 $ 40,695 $ (78,120 ) $ 16 $ (78,104) Other comprehensive Income (loss) for the Period 495 503 (14,608 ) — (855 ) 1,074 (13,391 ) 587 (12,804 ) As of December 31, 2020 $ (2,603 ) $ 960 $ (131,312 ) $ 3 $ (328 ) $ 41,769 $ (91,511 ) $ 603 $ (90,908 ) The movement of the other comprehensive income from December 31 2018, to December 31, 2019, is as follows: Attributable to owners of the Company Income tax reserves relating to (4) Hedging reserves (1) Fair value reserves (2) Reserves relating to actuarial gains and losses (3) Fair value reserves Reserves relating to actuarial gains and losses Revaluation of administrative property (5) Total NCI Total OCI As of December 31, 2018 $ (7,194 ) $ (748 ) $ (74,177 ) $ 3 $ 86 $ 37,934 $ (44,096 ) $ 194 $ (43,902 ) Other comprehensive Income (loss) for the Period 4,096 1,205 (42,527 ) — 441 2,761 (34,024 ) (178 ) (34,202 ) As of December 31, 2019 $ (3,098 ) $ 457 $ (116,704 ) $ 3 $ 527 $ 40,695 $ (78,120 ) $ 16 $ (78,104 ) (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 28). (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. |
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: December 31, 2020 December 31, 2019 Cash flow hedges: Reclassification during the year to profit or loss $ 4,152 $ (4,481 ) Effective valuation of cash flow hedged (3,678 ) 8,413 $ 474 $ 3,932 Fair value reserves: Valuations of investments in fair value with changes in OCI $ 503 $ 1,205 $ 503 $ 1,205 |
Non-Controlling interests (Tabl
Non-Controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Non-controlling Interest | The information related to each of the subsidiaries of the Group that has material NCI as of December 31, 2020 is sum m Taca Avianca Other Total Percentage non-controlling 3.17 % 7.58 % Current assets $ 152,300 $ 43,954 $ 294,413 $ 490,667 Non-current 405,380 53,669 3,494,626 3,953,675 Current liabilities (365,984 ) (24,026 ) (2,566,719 ) (2,956,729 ) Non-current (179,468 ) (3,760 ) (1,317,552 ) (1,500,780 ) Net assets 12,228 69,837 (95,232 ) (13,167 ) Net profit (loss) (4,592 ) (3,095 ) 487 (7,200 ) Other comprehensive income $ (307 ) $ (1,141 ) $ 2,035 $ 587 The information related to each of the subsidiaries of the Group that has material NCI as of December 31, 2019 is summarized below: LifeMiles Taca Avianca Other Total Percentage non-controlling 30.00 % 3.17 % 7.58 % Current assets $ 52,807 $ 30,762 $ 28,747 $ 7,274 $ 119,590 Non-current 20,168 14,113 5,470 5,345 45,096 Current liabilities (94,047 ) (18,421 ) (34,584 ) (5,492 ) (152,544 ) Non-current (172,582 ) (37,848 ) (806 ) (3,072 ) (214,308 ) Net assets (193,654 ) (11,394 ) (1,173 ) 4,055 (202,166 ) Net profit (loss) 26,829 (3,524 ) (4,066 ) 478 19,717 Other comprehensive income $ (163 ) $ 7 $ (25 ) $ 3 $ (178 ) |
Summary of Transactions Related to Acquisition of Non Controlling Interest | The book value of LifeMiles’ equity (deficit) in the group’s consolidated financial statements was $ ( 652,040 Book value of the acquired non-controlling $ (195,612 ) Consideration paid of acquired non-controlling (200,000 ) Increase in accumulated losses attributable to the Group $ (395,612 ) |
Losses per share (Tables)
Losses per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Calculation of Basic (Loss) Losses Per Share | The calculation of basic loss per share at December 31, 2020 and 2019 is as follows: Total December 31, 2020 Total December 31, 2019 Total December 31, 2018 Net loss attributable to Avianca Holdings S.A. $ (1,086,935 ) $ (913,712 ) $ (24,803 ) Weighted average number of shares (in thousands of shares) Common stock 660,800 660,800 660,800 Preferred stock 336,187 336,187 336,187 Losses per share (1) Common stock $ (1.09 ) $ (0.92 ) $ (0.03 ) Preferred stock $ (1.09 ) $ (0.92 ) $ (0.03 ) (1) Expressed in dollars. There are no interests in convertible preferred shares. |
Operating revenue (Tables)
Operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Information by Type of Service Rendered | By type of service provided Year ended Percentage Year ended Percentage Year on Domestic Passenger 511,839 30 % $ 2,000,222 43 % (1,488,383 ) Cargo and mail 294,312 17 % 285,802 6 % 8,510 806,151 47 % 2,286,024 49 % (1,479,873 ) International Passenger 492,144 29 % 1,904,542 41 % (1,412,398 ) Cargo and mail 278,302 16 % 282,576 6 % (4,274 ) 770,446 45 % 2,187,118 47 % (1,416,672 ) Other (1) 134,988 8 % 148,354 4 % (13,366 ) Total operating revenues 1,711,585 100 % $ 4,621,496 100 % (2,909,911 ) Year ended Percentage Year ended Percentage Year on Domestic Passenger $ 2,000,222 43 % $ 2,001,825 41 % (1,603 ) Cargo and mail 285,802 6 % 303,343 6 % (17,541 ) 2,286,024 49 % 2,305,168 47 % (19,144 ) International Passenger 1,904,542 41 % 2,072,566 42 % (168,024 ) Cargo and mail 282,576 6 % 315,433 7 % (32,857 ) 2,187,118 47 % 2,387,999 49 % (200,881 ) Other (1) 148,354 4 % 197,663 4 % (49,309 ) Total operating revenues $ 4,621,496 100 % $ 4,890,830 100 % (269,334 ) |
Summary of Other Operating Revenues | Other operating revenue for the years ended December 31, 2020, 2019 and 2018 is as follows: Year ended December 31, 2020 Year ended 2019 Year ended 2018 Frequent flyer program $ 48,207 $ 40,794 $ 46,376 Ground operations (a) 6,032 18,448 23,592 Leases 619 11,590 22,610 Maintenance 10,350 8,162 58,032 Interline 742 2,087 2,025 Other (b) 69,038 67,273 45,028 $ 134,988 $ 148,354 $ 197,663 (a) Group provides services to other airlines at main hub airports. (b) Corresponds mainly to income from penalties, distribution of dividends received, additional services and the amortization of sale and leaseback. |
Summary Of Significant Changes In Contract Assets And Contract Liabilities | The following table provides information on accounts receivable, assets and liabilities of contracts with customers: Notes December 31, December 31, Net of accounts receivable 9 $ 130,009 $ 215,673 Prepaid compensation customers 12 1,870 13,768 Air traffic responsibility 22 (399,184 ) (337,363 ) Deferred frequent flyer income 22 (452,815 ) $ (417,632 ) |
Derivatives recognized as hed_2
Derivatives recognized as hedging instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, are the following: Note December 31, 2020 December 31, Cash flow hedges - assets Fuel price $ — $ 525 Interest rate — 11 Total $ — $ 536 Cash flow hedges - liabilities Interest rate 23 $ 2,697 $ 1,241 Total $ 2,697 $ 1,241 |
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, 2020 and December 31, 2019: December 31, 2020 Fair Value 1–12 months 12–24 months Fuel price Liabilities $ 2,697 $ — $ 2,697 December 31, 2019 Fair Value 1–12 months 12–24 months Fuel price Assets $ 525 $ 525 $ — Interest rate Assets 11 — 11 Liabilities $ 1,241 $ — $ 1,241 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and December 31, 2019 are the following: Notes December 31, 2020 December 31, 2019 Derivatives not designated as hedges – liabilities Derivative contracts of interest rate 23 $ — $ 48 Total $ — $ 48 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Investments $ — $ 42,919 $ — $ 42,919 Assets of the benefits plan $ — $ 216,548 $ — $ 216,548 Assets held for sale (1) $ — $ 884 $ — $ 884 Revalued administrative property (note 14) $ — $ — $ 110,931 $ 110,931 (1) Assets held for sale don’t including sales costs associated. 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 28 and 29) Aircraft fuel hedges $ — $ 525 $ — $ 525 Interest rate derivatives — 11 — 11 Investments — 55,440 — 55,440 Assets of the benefits plan — 204,527 — 204,527 Assets held for sale (1) — 694,336 — 694,336 Revalued administrative property (note 14) $ — $ — $ 111,112 $ 111,112 (1) Assets held for sale don’t including sales costs associated. |
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 Interest rate derivatives (notes 28 and 29) $ — $ 2,697 $ — $ 2,697 Liabilities for which fair values are disclosed Short–term borrowings and long–term debt $ — $ 6,275,788 $ — $ 6,275,788 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 Interest rate derivatives (notes 28 and 29) $ — $ 1,289 $ — $ 1,289 Liabilities for which fair values are disclosed Short–term borrowings and long–term debt $ — $ 5,454,688 $ — $ 5,454,688 |
Income tax expense and other _2
Income tax expense and other taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of assets and liabilities for taxes | Assets and liabilities for taxes as of December 31, 2020 and December 31, 2019 are as follows: December 31, December 31, Current income tax – assets $ 44,681 $ 99,973 Other current taxes Current VAT – assets 36,403 90,955 Other taxes current 30,701 7,791 Total other current taxes 67,104 98,746 Total current tax – assets $ 111,785 $ 198,719 Non-current — 1 Total tax - assets $ 111,785 $ 198,720 Current income tax - liabilities ($ 54,738 ) $ (26,421 ) |
Schedule of components of income tax expense | Income tax expense for the periods ended December 31, 2020, 2019 and 2018 comprises the following: Year ended Year ended Year ended Current income tax: Current income tax charge $ 54,738 $ 25,171 $ 24,208 Changes in estimates related to prior years (3,731 ) 1,304 2,943 Deferred tax expense: Relating to origination and reversal of temporary differences 53 (2,492 ) (6,938 ) Income tax expense reported in the income statement $ 49,431 $ 23,983 $ 20,213 |
Disclosure of detailed information for applicable tax rate for entities explanatory | Income tax rate for taxable year 2020 and following: Year General Rate* Rate Applicable to 2020 32 % 36 % 2021 31 % 34 % 2022 and next 30 % 33 % |
Schedule of unused tax losses for which no deferred tax asset recognised | Tax losses originated in the year: 2017 $ 87,569 2018 86,630 2019 51,849 2020 27,201 Total: $ 253,249 |
Schedule of excess of presumptive income for which no deferred tax asset recognised | Excess of presumptive income originated in the year: Year 2017 $ 1,250 Year 2018 340 Total: $ 1,590 |
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 $ 461 $ 39,904 $ (39,443 ) Aircraft maintenance 909 (3,691 ) 4,600 Pension liabilities 10,477 10,599 (122 ) Provisions 96,151 24,330 71,821 Loss carry forwards — 5,333 (5,333 ) Unrecognized deferred tax asset (43,099 ) — (43,099 ) Non-monetary (51,621 ) (36,626 ) (14,995 ) Intangible assets (304 ) 1,159 (1,463 ) Other (1,660 ) (32,313 ) 30,653 Net deferred tax assets / (liabilities) $ 11,314 $ 8,695 $ 2,619 |
Summary of analysis of deferred tax assets and liabilities | Reflected in the statement of financial position as follows: December 31, December 31, Deferred tax assets $ 25,236 $ 27,166 Deferred tax liabilities (13,922 ) (18,471 ) Deferred tax assets (liabilities) net $ 11,314 $ 8,695 |
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, $ 8,695 $ 6,136 Tax income during the period recognized in profit or loss (53 ) 2,492 Tax income during the period recognized in other comprehensive income (818 ) 441 Exchange differences 3,490 (374 ) Closing balance as of December 31 $ 11,314 $ 8,695 |
Disclosure of detailed information of effect of deferred tax on each component of the other comprehensive income account | The following summarizes the effects of deferred tax on each component of the other comprehensive income account: Consolidated Statement of Other Comprehensive Income December 31, December 31, December 31, Reserves related to actuarial gains and losses $ (818 ) $ 441 $ (39 ) Income tax recorded directly in other comprehensive income $ (818 ) $ 441 $ (39 ) |
Provisions for legal claims (Ta
Provisions for legal claims (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of provisions for litigation | The changes in provisions for litigation as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Balances at the beginning of the period $ 20,244 $ 7,809 Provisions constituted 11,215 21,208 Provisions reverse (3,660 ) (6,537 ) Provisions used (453 ) (2,236 ) Deconsolidation subsidiary AV Perú (4,032 ) — Balances at the end of the period $ 23,314 $ 20,244 |
Future aircraft leases paymen_2
Future aircraft leases payments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Aircraft Under Operating Leases | The Group has 75 aircraft that are under financial leasing. The following is the summary of future financial lease commitments: Aircraft Less than one year (1) $ 1,883,281 $ 1,883,281 |
Schedule of Seven Spare Engines Under Operating Leases | The Group has 62 aircraft that are under operating leases, which have an average remaining lease term of 59 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(1) $ 274,167 Between one and five years 824,391 More than five years 282,474 $ 1,381,032 The Group has 9 spare 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 $ 4,789 Between one and five years 17,856 More than five years 701 $ 23,346 |
Expenses of Amount Recognized Payments | The value of payments recognized as expenses in the period is: December 31, 2020 December 31, 2019 Leases minimum payments $ 3,398 $ 11,762 |
Acquisition of aircraft (Tables
Acquisition of aircraft (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 as of December 31, 2020, as follows: Less than one year 1-3 3-5 More than 5 years Total Aircraft and engine purchase commitments $ 21,175 $ 126,212 $ 1,629,460 $ 3,917,096 $ 5,693,943 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Payment of Dividends | The Group did not decree or pay dividends during ended December 31, 2020, based on the retained earnings as of December 31, 2019, and dividends were decreed by the Group during ended December 31, 2019, based on retained earnings as of December 31, 2018: December 31, December 31, Dividends decreed Dividend - Ordinary shared $ — $ 9,862 Dividend - Preferred shared 5,523 Total $ — $ 15,385 |
Reporting Entity - Schedule of
Reporting Entity - Schedule of Significant Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | U.S. | |
Percentage of ownership interest | 100.00% | 100.00% |
Avianca Leasing, LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S. | |
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 | Panamá | |
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 | 89.90% | 70.00% |
Avianca Costa Rica S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Costa Rica | |
Percentage of ownership interest | 92.42% | 92.42% |
Taca International Airlines, S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | El Salvador | |
Percentage of ownership interest | 96.83% | 96.83% |
Tampa Cargo Logistics, Inc. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | U.S. | |
Percentage of ownership interest | 100.00% | 100.00% |
Tampa Cargo S.A.S. [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Colombia | |
Percentage of ownership interest | 100.00% | 100.00% |
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% |
Regional Express Amricas SAS [member] | ||
Disclosure of subsidiaries [line items] | ||
Country of Incorporation | Colombia | |
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) - USD ($) $ in Thousands | Dec. 28, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of reporting entity [line items] | ||||
Sale of subsidiaries | $ 1,778 | $ 875 | $ (18,000) | |
Avianca Peru S.A. [member] | ||||
Disclosure of reporting entity [line items] | ||||
Sale of subsidiaries | $ 1,778 | |||
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) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of subsidiaries [line items] | |||
Cash amount in the company | $ 11,765 | ||
Amount of company assets, without cash | 35,560 | ||
Amount of liabilities in the company | (23,236) | ||
Total net assets of the subsidiary | 24,089 | ||
Noncontrolling interest | (7,712) | $ (7,674) | |
GTH/ Nicaraguense de Aviacion participation | 16,377 | ||
Consideration received in cash | 10,890 | ||
Loss / gain on sale of subsidiaries | (5,487) | ||
Turbo leasing company Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Cash amount in the company | 8,876 | ||
Amount of company assets, without cash | 28,632 | ||
Amount of liabilities in the company | (19,507) | ||
Total net assets of the subsidiary | 18,001 | ||
Noncontrolling interest | (5,769) | ||
GTH/ Nicaraguense de Aviacion participation | 12,232 | ||
Consideration received in cash | 6,425 | ||
Loss / gain on sale of subsidiaries | (5,807) | ||
Aerotaxis La Costea SA [member] | |||
Disclosure of subsidiaries [line items] | |||
Cash amount in the company | 2,889 | ||
Amount of company assets, without cash | 6,928 | ||
Amount of liabilities in the company | (3,729) | ||
Total net assets of the subsidiary | 6,088 | ||
Noncontrolling interest | (1,943) | ||
GTH/ Nicaraguense de Aviacion participation | 4,145 | ||
Consideration received in cash | 4,465 | ||
Loss / gain on sale of subsidiaries | $ 320 | ||
Getcom Intl Investments SL [member] | |||
Disclosure of subsidiaries [line items] | |||
Cash amount in the company | 1,764 | ||
Amount of company assets, without cash | 20,561 | ||
Amount of liabilities in the company | (6,980) | ||
Total net assets of the subsidiary | 15,345 | ||
Noncontrolling interest | (7,674) | ||
GTH/ Nicaraguense de Aviacion participation | 7,671 | ||
Consideration received in cash | 18,000 | ||
Part of the consideration consisting of accounts receivable | 250 | ||
Fair Value of the received consideration | 18,250 | ||
Loss / gain on sale of subsidiaries | $ 10,579 | ||
Avianca Peru S.A. [member] | |||
Disclosure of subsidiaries [line items] | |||
Cash amount in the company | $ 1,778 | ||
Amount of company assets, without cash | 36,768 | ||
Amount of liabilities in the company | (12,325) | ||
Total net assets of the subsidiary | 26,221 | ||
Loss / gain on sale of subsidiaries | $ 26,221 |
Reporting Entity - Schedule o_2
Reporting Entity - Schedule of Total Fleet Consisting (Detail) - Aircraft | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 146 | 171 |
Airbus A-319 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 25 | 27 |
Airbus A-320 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 55 | 57 |
Airbus A-320 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | 10 |
Airbus A-321 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 11 | 13 |
Airbus A-321 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
Airbus A-330 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 7 | 10 |
Airbus A-330F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 6 | 6 |
Airbus A-300F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 3 | 5 |
Boeing 787-8 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 13 | 13 |
Boeing 787-9 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 1 | 1 |
ATR 72 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 11 | 15 |
Boeing 767F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
Embraer E-190 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | |
Owned/ Financial Lease [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 84 | 113 |
Owned/ Financial Lease [member] | Airbus A-319 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 23 | 23 |
Owned/ Financial Lease [member] | Airbus A-320 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 22 | 31 |
Owned/ Financial Lease [member] | Airbus A-320 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 3 | 3 |
Owned/ Financial Lease [member] | Airbus A-321 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 5 | 7 |
Owned/ Financial Lease [member] | Airbus A-330 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 1 | 3 |
Owned/ Financial Lease [member] | Airbus A-330F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 6 | 6 |
Owned/ Financial Lease [member] | Airbus A-300F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 3 | 5 |
Owned/ Financial Lease [member] | Boeing 787-8 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 8 | 8 |
Owned/ Financial Lease [member] | ATR 72 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 11 | 15 |
Owned/ Financial Lease [member] | Boeing 767F [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
Owned/ Financial Lease [member] | Embraer E-190 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 10 | |
Operating Leases [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 62 | 58 |
Operating Leases [Member] | Airbus A-319 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 4 |
Operating Leases [Member] | Airbus A-320 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 33 | 26 |
Operating Leases [Member] | Airbus A-320 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 7 | 7 |
Operating Leases [Member] | Airbus A-321 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 6 | 6 |
Operating Leases [Member] | Airbus A-321 NEO [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 2 | 2 |
Operating Leases [Member] | Airbus A-330 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 6 | 7 |
Operating Leases [Member] | Boeing 787-8 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 5 | 5 |
Operating Leases [Member] | Boeing 787-9 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Total | 1 | 1 |
Basis of Presentation of the Co
Basis of Presentation of the Consolidated Financial Statements - Summary of the Prepetition Liabilities Under Chapter 11 (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure of detailed information of prepetition liabilities [line items] | |
Bankruptcy claims amount of claims filed | $ 4,641,087 |
Debt [member] | |
Disclosure of detailed information of prepetition liabilities [line items] | |
Bankruptcy claims amount of claims filed | 4,200,663 |
Accounts payable [member] | |
Disclosure of detailed information of prepetition liabilities [line items] | |
Bankruptcy claims amount of claims filed | 261,126 |
Accrued expenses [member] | |
Disclosure of detailed information of prepetition liabilities [line items] | |
Bankruptcy claims amount of claims filed | 22 |
Provisions for legal claims [member] | |
Disclosure of detailed information of prepetition liabilities [line items] | |
Bankruptcy claims amount of claims filed | 18,107 |
Provisions for return conditions [member] | |
Disclosure of detailed information of prepetition liabilities [line items] | |
Bankruptcy claims amount of claims filed | 160,839 |
Other liabilities [member] | |
Disclosure of detailed information of prepetition liabilities [line items] | |
Bankruptcy claims amount of claims filed | $ 330 |
Basis of Presentation of the _2
Basis of Presentation of the Consolidated Financial Statements - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)AircraftJobsVendors | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 05, 2020USD ($) | May 27, 2020USD ($)Employees | |
Disclosure Of Basis Of Preparation [line items] | |||||
Net (loss) profit for the year | $ (1,094,135) | $ (893,995) | $ 1,143 | ||
Excess of Current liabilities over current assets | 4,282,560 | 495,580 | |||
Total equity | $ (1,301,772) | 5,167 | 992,461 | ||
Impact on covid-19 reduction of revenues | 63.00% | ||||
Debt | $ 6,281,256 | 4,856,323 | $ 4,007,580 | ||
Covid 19 [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Net (loss) profit for the year | 1,094,135 | 893,995 | |||
Total equity | (1,301,772) | ||||
Current liabilities over current assets | $ (4,843,757) | $ (1,020,874) | |||
Increase decrease in percentage of global passenger traffic | 90.00% | ||||
Increase decrease in revenue | $ 314,000,000 | ||||
Percentage of operations | 50.00% | ||||
Number of vendors | Vendors | 3,000 | ||||
Payments for legal settlements | $ 300,000 | ||||
Number of aircraft under lease | Aircraft | 12 | ||||
Debt | $ 1,992,191 | ||||
Covid 19 [member] | Latin America [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Number of jobs preserved | Jobs | 14,500 | ||||
Covid 19 [member] | Colombia [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Number of jobs preserved | Jobs | 10,000 | ||||
Dissolution of Avianca Peru [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Liquidation cost | $ 7,000 | ||||
Number of employees | Employees | 906 | ||||
Payments related to labor settlements | $ 8,773 | ||||
Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Number of Aircrafts for which Claims Filed were rejected | Aircraft | 12 | ||||
Tranche A Loans [member] | Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Aggregate principal amount | 1,269,500 | ||||
Borrowings principal amount of new issues | 881,000 | ||||
Borrowings principal amount of roll ups | 388,500 | ||||
Tranche B Notes [member] | Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Aggregate principal amount | 722,918 | ||||
Borrowings principal amount of new issues | 335,920 | ||||
Borrowings principal amount of roll ups | 388,500 | ||||
Subtranche A Two [member] | Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Aggregate principal amount | $ 240,000 | ||||
ATR 72 [member] | Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Number of Aircrafts for which Claims Filed were rejected | Aircraft | 4 | ||||
Aircraft A320 [member] | Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Number of Aircrafts for which Claims Filed were rejected | Aircraft | 4 | ||||
Aircraft A321 [member] | Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Number of Aircrafts for which Claims Filed were rejected | Aircraft | 2 | ||||
A-330 [member] | Debtor In Possession Structure [member] | |||||
Disclosure Of Basis Of Preparation [line items] | |||||
Number of Aircrafts for which Claims Filed were rejected | Aircraft | 2 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Number | |
Disclosure of significant accounting policies [line items] | |
Number of SPE included in Consolidated Financial Statements | 49 |
Number of addition consolidated entities included in Consolidated Financial Statements | 72 |
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, 2020 | |
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 components and engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 4 years |
Bottom of Range [member] | Administrative Property [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 components and engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 12 years |
Top of Range [member] | Administrative Property [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 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segments | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenue: | |||
Operating expenses | $ 2,333,094 | $ 5,175,777 | $ 4,658,714 |
Operating (loss) profit | (621,509) | (554,281) | 232,116 |
Interest expense | (378,318) | (299,942) | (212,294) |
Interest income | 4,406 | 9,041 | 10,115 |
Derivative instruments | (3,063) | (2,164) | (260) |
Foreign exchange | (46,494) | (24,190) | (9,220) |
Equity method profit | 274 | 1,524 | 899 |
Income tax expense | (49,431) | (23,983) | (20,213) |
Net (loss) profit for the year | (1,094,135) | (893,995) | 1,143 |
Total Assets | 6,860,494 | 7,273,910 | |
Total Liabilities | 8,162,266 | 7,268,743 | |
Reportable Segments [member] | |||
Operating revenue: | |||
External customers | 1,711,585 | 4,621,496 | 4,890,830 |
Total operating revenue | 1,711,585 | 4,621,496 | 4,890,830 |
Operating expenses | 1,799,030 | 4,111,720 | 4,269,326 |
Depreciation, amortization and impairment | 534,064 | 1,064,057 | 389,388 |
Operating (loss) profit | (621,509) | (554,281) | 232,116 |
Interest expense | (378,318) | (299,942) | (212,294) |
Interest income | 4,406 | 9,041 | 10,115 |
Derivative instruments | (3,063) | (2,164) | (260) |
Foreign exchange | (46,494) | (24,190) | (9,220) |
Equity method profit | 274 | 1,524 | 899 |
Income tax expense | (49,431) | (23,983) | (20,213) |
Net (loss) profit for the year | (1,094,135) | (893,995) | 1,143 |
Total Assets | 6,860,494 | 7,273,910 | 7,118,643 |
Total Liabilities | 8,162,266 | 7,268,743 | 6,126,182 |
Air Transportation Segments [member] | Reportable Segments [member] | |||
Operating revenue: | |||
External customers | 1,566,546 | 4,284,901 | 4,577,021 |
Inter-segment | (102,770) | 149,595 | 148,882 |
Total operating revenue | 1,463,776 | 4,434,496 | 4,725,903 |
Operating expenses | 1,582,249 | 4,067,372 | 4,226,414 |
Depreciation, amortization and impairment | 532,150 | 1,061,766 | 388,960 |
Operating (loss) profit | (650,623) | (694,642) | 110,529 |
Interest expense | (352,421) | (263,049) | (182,230) |
Interest income | 2,904 | 6,741 | 8,062 |
Derivative instruments | (3,064) | (1,892) | 567 |
Foreign exchange | (46,312) | (24,117) | (9,238) |
Equity method profit | 274 | 1,524 | 899 |
Income tax expense | (49,387) | (24,042) | (20,258) |
Net (loss) profit for the year | (1,098,629) | (999,477) | (91,669) |
Total Assets | 6,757,269 | 7,219,611 | 7,098,272 |
Total Liabilities | 7,289,684 | 6,522,422 | 5,426,718 |
Loyalty Segments [member] | Reportable Segments [member] | |||
Operating revenue: | |||
External customers | 145,039 | 336,595 | 313,809 |
Inter-segment | 3,213 | 1,856 | 1,867 |
Total operating revenue | 148,252 | 338,451 | 315,676 |
Operating expenses | 117,432 | 196,116 | 193,269 |
Depreciation, amortization and impairment | 11,931 | 11,991 | 12,976 |
Operating (loss) profit | 18,889 | 130,344 | 109,431 |
Interest expense | (25,897) | (36,893) | (30,064) |
Interest income | 1,502 | 2,300 | 2,053 |
Derivative instruments | 1 | (272) | (827) |
Foreign exchange | (182) | (73) | 18 |
Income tax expense | (44) | 59 | 45 |
Net (loss) profit for the year | (5,731) | 95,465 | 80,656 |
Total Assets | 226,391 | 243,249 | 248,937 |
Total Liabilities | 891,841 | 880,483 | 862,834 |
Elimination of Intersegment Amounts [member] | Reportable Segments [member] | |||
Operating revenue: | |||
Inter-segment | 99,557 | (151,451) | (150,749) |
Total operating revenue | 99,557 | (151,451) | (150,749) |
Operating expenses | 99,349 | (151,768) | (150,357) |
Depreciation, amortization and impairment | (10,017) | (9,700) | (12,548) |
Operating (loss) profit | 10,225 | 10,017 | 12,156 |
Net (loss) profit for the year | 10,225 | 10,017 | 12,156 |
Total Assets | (123,166) | (188,950) | (228,566) |
Total Liabilities | $ (19,259) | $ (134,162) | $ (163,370) |
Segment Information - Schedul_2
Segment Information - Schedule of Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | $ 1,711,585 | $ 4,621,496 | $ 4,890,830 |
United States of America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 297,286 | 681,728 | 462,091 |
Central America and the Caribbean [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 318,723 | 289,543 | 248,896 |
Colombia [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 671,272 | 2,378,772 | 2,580,979 |
South America (excluding - Colombia) [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | 366,290 | 754,574 | 732,586 |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total operating revenue | $ 58,014 | $ 516,879 | $ 866,278 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 05, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||||
Net gain (loss) from currency exchanges | $ (46,508) | $ (24,190) | $ (9,220) | |
Debtor-in-possession financing, amount arranged | $ 2,000,000 | |||
Debtor-in-possession financing, amendments to arrangement, increase (decrease) in amount arranged | 1,217,000 | |||
Debtor reorganization items, debtor-in-possession facility financing costs | $ 219,600 | |||
Tranche A Senior Loan [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Debtor-in-possession financing, borrowings outstanding | 1,270,000 | |||
Debtor-in-possession financing, amendments to arrangement, increase (decrease) in amount arranged | 881,000 | |||
Tranche B Subordinated Loan [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Debtor-in-possession financing, borrowings outstanding | 722,000 | |||
Debtor-in-possession financing, amendments to arrangement, increase (decrease) in amount arranged | $ 336,000 | |||
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 | $ 3,255 | $ 12,041 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Contractual Maturities of Non-derivative Financial Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | $ 6,281,256 | $ 4,856,323 | $ 4,007,580 |
Debt – Assets held for sale | 490,458 | ||
Short-term Borrowings [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 4,235,197 | 118,137 | |
Contractual cash flow | 4,235,197 | 123,734 | |
Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 292,503 | 3,008,412 | |
Contractual cash flow | 375,007 | 3,640,008 | |
Liquidity Risk [member] | Right-of-use assets [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 1,646,587 | 1,321,871 | |
Use rights – IFRS 16 | 1,401,545 | 1,198,530 | |
Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 352,011 | 531,244 | |
Contractual cash flow | 352,011 | 698,436 | |
Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 6,281,256 | 5,346,781 | |
Contractual cash flow | 6,608,802 | 6,274,507 | |
Liquidity Risk [member] | Accounts Payable [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 506,256 | 542,546 | |
Contractual cash flow | 506,256 | 542,546 | |
Liquidity Risk [member] | Accrued Expense [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 16,448 | 87,610 | |
Contractual cash flow | 16,448 | 87,610 | |
Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Carrying amount | 6,803,960 | 5,976,937 | |
Contractual cash flow | 7,131,506 | 6,904,663 | |
Year one [member] | Liquidity Risk [member] | Right-of-use assets [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Use rights – IFRS 16 | 485,985 | 264,510 | |
Year one [member] | Liquidity Risk [member] | Short-term Borrowings [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 4,235,197 | 123,734 | |
Year one [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 69,564 | 554,021 | |
Year one [member] | Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 352,011 | 105,022 | |
Year one [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 5,142,757 | 1,537,745 | |
Year one [member] | Liquidity Risk [member] | Accounts Payable [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 489,031 | 530,615 | |
Year one [member] | Liquidity Risk [member] | Accrued Expense [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 16,448 | 87,610 | |
Year one [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 5,648,236 | 2,155,970 | |
Year two [member] | Liquidity Risk [member] | Right-of-use assets [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Use rights – IFRS 16 | 326,674 | 246,759 | |
Year two [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 305,443 | 540,615 | |
Year two [member] | Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 43,598 | ||
Year two [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 632,117 | 830,972 | |
Year two [member] | Liquidity Risk [member] | Accounts Payable [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 17,225 | 11,931 | |
Year two [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 649,342 | 842,903 | |
Year three [member] | Liquidity Risk [member] | Right-of-use assets [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Use rights – IFRS 16 | 263,657 | 234,094 | |
Year three [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 853,756 | ||
Year three [member] | Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 43,598 | ||
Year three [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 263,657 | 1,131,448 | |
Year three [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 263,657 | 1,131,448 | |
Year four [member] | Liquidity Risk [member] | Right-of-use assets [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Use rights – IFRS 16 | 234,064 | 206,367 | |
Year four [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 612,874 | ||
Year four [member] | Liquidity Risk [member] | Bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 506,218 | ||
Year four [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 234,064 | 1,325,459 | |
Year four [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 234,064 | 1,325,459 | |
Year Five and Thereafter [member] | Liquidity Risk [member] | Right-of-use assets [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Use rights – IFRS 16 | 336,207 | 370,141 | |
Year Five and Thereafter [member] | Liquidity Risk [member] | Long-term Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 1,078,742 | ||
Year Five and Thereafter [member] | Liquidity Risk [member] | Total Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | 336,207 | 1,448,883 | |
Year Five and Thereafter [member] | Liquidity Risk [member] | Contractual Maturities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Contractual cash flow | $ 336,207 | $ 1,448,883 |
Financial Risk Management - S_2
Financial Risk Management - Summary of Quantitative Data About Exposure to Currency Risk (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | $ 911,139,000 | $ 342,472,000 | $ 273,108,000 | $ 508,982,000 |
Trade and other receivables, net of expected credit losses | 232,835,000 | 256,291,000 | ||
Debt – Assets held for sale | 490,458,000 | |||
Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 935,438,000 | 342,473,000 | ||
Trade and other receivables, net of expected credit losses | 230,537,000 | 259,639,000 | ||
Secured debt and bonds | (4,026,496,000) | (4,690,668,000) | ||
Unsecured debt | (174,167,000) | (165,655,000) | ||
Debt – Assets held for sale | (490,458,000) | |||
Accrued expenses | (16,448,000) | (87,610,000) | ||
Accounts payable | (506,256,000) | (542,546,000) | ||
Net financial position exposure | (3,557,392,000) | (5,374,825,000) | ||
USD [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 855,733,000 | 209,139,000 | ||
Trade and other receivables, net of expected credit losses | 70,018,000 | 137,692,000 | ||
Secured debt and bonds | (3,919,738,000) | (4,554,328,000) | ||
Unsecured debt | (173,632,000) | (160,801,000) | ||
Debt – Assets held for sale | (449,340,000) | |||
Accrued expenses | (14,386,000) | (63,385,000) | ||
Accounts payable | (337,854,000) | (363,129,000) | ||
Net financial position exposure | (3,519,859,000) | (5,244,152,000) | ||
Colombian, Pesos [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 33,968,000 | 87,382,000 | ||
Trade and other receivables, net of expected credit losses | 41,985,000 | 1,474,000 | ||
Secured debt and bonds | (3,823,000) | (16,285,000) | ||
Unsecured debt | (535,000) | (4,854,000) | ||
Accrued expenses | (755,000) | (19,560,000) | ||
Accounts payable | (96,252,000) | (51,313,000) | ||
Net financial position exposure | $ (25,412,000) | $ (3,156,000) | ||
Change in forecast in exchange rate | (3.78%) | (6.40%) | ||
Sensitivity analysis effect on profit of the year | $ 960.570 | $ 201,000 | ||
Mexico, Pesos [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 21,985,000 | 4,789,000 | ||
Trade and other receivables, net of expected credit losses | 44,878,000 | 8,591,000 | ||
Accrued expenses | (408,000) | |||
Accounts payable | (19,354,000) | (19,258,000) | ||
Net financial position exposure | $ 47,509,000 | $ (6,286,000) | ||
Change in forecast in exchange rate | (4.63%) | (4.40%) | ||
Sensitivity analysis effect on profit of the year | $ (2,200,000) | $ 279,000 | ||
Euro [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 14,299,000 | 15,111,000 | ||
Trade and other receivables, net of expected credit losses | 43,709,000 | 81,982,000 | ||
Secured debt and bonds | (102,935,000) | (120,055,000) | ||
Debt – Assets held for sale | (41,118,000) | |||
Accrued expenses | (92,000) | (2,726,000) | ||
Accounts payable | (15,893,000) | (38,716,000) | ||
Net financial position exposure | $ (60,912,000) | $ (105,522,000) | ||
Change in forecast in exchange rate | (8.19%) | (0.045%) | ||
Sensitivity analysis effect on profit of the year | $ 4,988,000 | $ (48,000) | ||
Argentinean, Pesos [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 1,883,000 | 11,045,000 | ||
Trade and other receivables, net of expected credit losses | 1,263,000 | 6,637,000 | ||
Accounts payable | (2,261,000) | |||
Net financial position exposure | $ 885,000 | $ 17,682,000 | ||
Change in forecast in exchange rate | (22.32%) | 9.10% | ||
Sensitivity analysis effect on profit of the year | $ (19,753,000) | $ 1,617,000 | ||
Brazilian Reals [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 1,478,000 | |||
Trade and other receivables, net of expected credit losses | 10,646,000 | 17,764,000 | ||
Accrued expenses | (1,196,000) | (1,531,000) | ||
Accounts payable | (4,804,000) | (17,437,000) | ||
Net financial position exposure | $ 6,124,000 | $ (1,204,000) | ||
Change in forecast in exchange rate | (18.44%) | 2.60% | ||
Sensitivity analysis effect on profit of the year | $ (1,129,000) | $ (32,000) | ||
Other [member] | Currency Risk [member] | ||||
Disclosure of financial assets [line items] | ||||
Cash and cash equivalents | 6,092,000 | 15,007,000 | ||
Trade and other receivables, net of expected credit losses | 18,038,000 | 5,499,000 | ||
Accrued expenses | (19,000) | |||
Accounts payable | (29,838,000) | (52,693,000) | ||
Net financial position exposure | $ (5,727,000) | $ (32,187,000) |
Financial Risk Management - S_3
Financial Risk Management - Summary of Interest Rate Profile of the Company's Interest-bearing Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed Interest Rate [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | $ 678,720 | $ 272,013 |
Financial liabilities | (2,675,990) | (4,421,351) |
Total | (1,997,270) | (4,148,867) |
Fixed Interest Rate [member] | Interest Rate Swap Contract [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Interest rate swaps | 471 | |
Floating Interest Rate [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 40,050 | 5,685 |
Financial liabilities | (1,759,951) | (925,430) |
Total | $ (1,719,901) | $ (919,745) |
Financial Risk Management - S_4
Financial Risk Management - Summary of the Debt-to-capital Ratio of the Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Debt Capital Ratio [line items] | ||
Less: cash and cash equivalents and restricted cash | $ (935,438) | $ (342,473) |
Total equity (deficit) | (1,288,605) | 207,333 |
Capital Risk Management [member] | ||
Disclosure of Debt Capital Ratio [line items] | ||
Debt | 6,281,256 | 5,346,781 |
Less: cash and cash equivalents and restricted cash | (935,438) | (342,473) |
Total net debt | 5,345,818 | 5,004,308 |
Total equity (deficit) | (1,301,772) | 5,167 |
Total Capital | $ 4,044,046 | $ 5,009,475 |
Net debt-to-capital ratio | 132.00% | 100.00% |
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, 2020 | Dec. 31, 2019 |
Carrying Amount [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | $ 259,467 | $ 260,503 |
Financial liabilities | 6,283,953 | 5,348,070 |
Carrying Amount [member] | Short-term Borrowings and Long-term Debt [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | 6,281,256 | 5,346,781 |
Carrying Amount [member] | Derivative Instruments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | 2,697 | 1,289 |
Carrying Amount [member] | Investments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 42,919 | 55,440 |
Carrying Amount [member] | Derivative Instruments Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 536 | |
Carrying Amount [member] | Plan Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 216,548 | 204,527 |
Fair Value [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 259,467 | 260,503 |
Financial liabilities | 6,278,485 | 5,455,977 |
Fair Value [member] | Short-term Borrowings and Long-term Debt [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | 6,275,788 | 5,454,688 |
Fair Value [member] | Derivative Instruments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial liabilities | 2,697 | 1,289 |
Fair Value [member] | Investments [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 42,919 | 55,440 |
Fair Value [member] | Derivative Instruments Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | 536 | |
Fair Value [member] | Plan Assets [member] | ||
Disclosure Of Fair Value Financial Assets And Liabilities [line items] | ||
Financial assets | $ 216,548 | $ 204,527 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of cash and cash equivalents and restricted cash [abstract] | ||||
Cash on hand and bank deposits | $ 881,617 | $ 339,010 | ||
Demand and term deposits (1) | 29,522 | 3,462 | ||
Cash and cash equivalents | 911,139 | 342,472 | $ 273,108 | $ 508,982 |
Restricted cash (2) | 24,299 | 1 | ||
Cash and cash equivalents and restricted cash | $ 935,438 | $ 342,473 |
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, 2020 | Dec. 31, 2019 | |
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Demand and term deposits | $ 29,522 | $ 3,462 |
Colombian, Pesos [member] | Bottom of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 0.62% | 3.61% |
Colombian, Pesos [member] | Top of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 3.91% | 5.21% |
USD [member] | Bottom of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 3.54% | 1.94% |
USD [member] | Top of Range [member] | ||
Disclosure of cash and cash equivalents and restricted cash [line items] | ||
Percentage of deposits annual interest rate | 5.38% | 6.02% |
Trade and Other Receivables - A
Trade and Other Receivables - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Pending Deposits [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Trade accounts receivable | $ 69,000 | |
Debtors [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Trade accounts receivable | 102,000 | |
Other Type of Debtors [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Trade accounts receivable | 58,000 | |
Chelsea Securities SA [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Other accounts receivable | 34,980 | $ 34,980 |
Grupo Aeromar SA [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Other accounts receivable | 34,980 | |
USAV Flow [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Other accounts receivable | 59,295 | |
Miles Trust Contract [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Other accounts receivable | 15,405 | |
Rolls Royce [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Other accounts receivable | 11,423 | |
Luis Montes de Oca [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Other accounts receivable | 2,770 | |
Airbus [Member] | ||
Disclosure of Trade and Other Accounts Receivables [line items] | ||
Other accounts receivable | $ 1,397 |
Trade and Other Receivables - S
Trade and Other Receivables - Schedule of Trade and Other Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Trade and Other Accounts Receivables [line items] | |||
Less provision for expected credit losses | $ (46,324) | $ (42,001) | $ (12,430) |
Total | 232,835 | 256,291 | |
Net current | 229,917 | 233,722 | |
Net non-current | 2,918 | 22,569 | |
Gross Carrying Amount [member] | |||
Disclosure of Trade and Other Accounts Receivables [line items] | |||
Trade | 130,009 | 222,694 | |
Employee advances | 3,835 | 3,267 | |
Other | 145,315 | 72,331 | |
Total | $ 279,159 | $ 298,292 |
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, 2020 | Dec. 31, 2019 | |
Changes in allowance account for credit losses of financial assets [abstract] | ||
Balance at beginning of year | $ 42,001 | $ 12,430 |
Provision bad debt expense | 12,069 | 50,703 |
Reversal against the allowance | (7,746) | (21,132) |
Balance at end of year | $ 46,324 | $ 42,001 |
Trade and Other Receivables -_3
Trade and Other Receivables - Summary of Aging of Accounts Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of provision matrix [line items] | |||
Less provision for expected credit losses | $ (46,324) | $ (42,001) | $ (12,430) |
Trade receivables, net of expected credit losses | 118,665 | 215,673 | |
Passenger Transport Services [member] | |||
Disclosure of provision matrix [line items] | |||
Less provision for expected credit losses | (11,344) | (7,021) | |
Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 130,009 | 222,694 | |
Past due 1-30 days [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 535 | 24,259 | |
Past due 31-90 days [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 13,168 | 16,896 | |
Past Due 91 Days [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | 39,412 | 51,807 | |
Financial Assets Neither Past Due nor Impaired [member] | Gross Carrying Amount [member] | |||
Disclosure of provision matrix [line items] | |||
Total trade | $ 76,894 | $ 129,732 |
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, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | ||
Receivables | $ 157 | $ 3,348 |
Payables | 2,782 | 3,713 |
Revenues | 126 | 7,412 |
Expenses | 7,202 | 37,178 |
OceanAir Linhas Aereas, S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 2,906 | |
Payables | 1,994 | 2,178 |
Revenues | 124 | 6,988 |
Expenses | 2,653 | 26,712 |
Opera Transporte y logstica Integral SAS [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Payables | 443 | 448 |
Revenues | 6 | |
Expenses | 3,329 | 4,390 |
Empresariales S.A.S. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Payables | 279 | 475 |
Expenses | 1,111 | 2,755 |
Global Operadora Hotelera S.A.S [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 3 | 4 |
Payables | 4 | 368 |
Revenues | 2 | 6 |
Expenses | 90 | 2,532 |
Corporacion Hotelera Internacional S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Payables | 62 | 131 |
Expenses | 731 | |
Other [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 154 | 62 |
Payables | 9 | |
Revenues | 3 | |
Expenses | 19 | 58 |
Servicos Aeros Nacionales A A [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 180 | |
Payables | 104 | |
Revenues | 213 | |
Turbo Leasing Corp [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 196 | |
Revenues | 196 | |
Short Term [member] | ||
Disclosure of transactions between related parties [line items] | ||
Receivables | 157 | 3,348 |
Payables | $ 2,782 | $ 3,713 |
Balances and Transactions Wit_4
Balances and Transactions With Related Parties - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Aircraft Rentals and Interline Loads [Member] | OceanAir Linhas Aereas, S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Provision of uncollectible accounts by entity related party transactions | $ 10,153 | $ 7,627 |
Key Management Personnel of Entity or Parent [member] | ||
Disclosure of transactions between related parties [line items] | ||
Key management personnel compensation expense | $ 24,393 | $ 22,402 |
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, 2020 | |
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 Companies. |
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 Companies. |
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 Companies. |
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 | On July 14, 2020, OceanAir was declared bankrupt. All contracts to date are not in force given the current situation of OceanAir and are not being executed, therefore, Avianca sent OceanAir a notification of termination of the contracts, so there are no more commercial relationships between the companies. |
Opera Transporte y logstica Integral SAS [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, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | ||
Key management personnel compensation, Salaries | $ 9,249 | $ 12,467 |
Key management personnel compensation, Bonuses | 9,731 | 6,658 |
Key management personnel compensation, Social benefits | 4,638 | 2,149 |
Key management personnel compensation, Compensation | 18 | 222 |
Key management personnel compensation, Others | 757 | 906 |
Key management personnel compensation, Total | $ 24,393 | $ 22,402 |
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, 2020 | Dec. 31, 2019 |
Classes of current inventories [abstract] | ||
Expendable spare parts | $ 73,502 | $ 79,427 |
Supplies | 7,931 | 8,907 |
Total | $ 81,433 | $ 88,334 |
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, 2020 | Dec. 31, 2019 | |
Classes of current inventories [abstract] | ||
Maintenance expense | $ 35,638 | $ 63,229 |
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, 2020 | Dec. 31, 2019 | |
Classes of current inventories [abstract] | ||
Balance at beginning of year | $ 5,330 | $ 6,505 |
Expense reversal for obsolete inventory | (32) | 2,075 |
Write-offs against the allowance | (820) | (3,250) |
Balance at end of year | $ 4,478 | $ 5,330 |
Prepayments - Schedule of Prepa
Prepayments - Schedule of Prepaid Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Prepaid expenses tables [abstract] | |||
Prepaid commissions | [1] | $ 19,408 | $ 41,727 |
Prepaid compensations clients | 1,870 | 13,768 | |
Premiums for insurance policies | 10,241 | 4,716 | |
Other | 4,728 | 8,801 | |
Total | $ 36,247 | $ 69,012 | |
[1] | Advance payment made to IATA for service charges of 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. |
Short term investments, depos_3
Short term investments, deposits and other assets - Summary of Deposits and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Short term: | ||
Short term investments | $ 42,919 | $ 55,440 |
Others | 11,091 | 18,030 |
Sub-Total | 37,544 | 38,650 |
Fair value of derivative instruments | 525 | |
Total | 37,544 | 39,175 |
Long term: | ||
Long term investments – restricted | 1,339 | |
Others | 848 | 8,657 |
Sub-Total | 55,547 | 54,063 |
Fair value of derivative instruments | 11 | |
Total | 55,547 | 54,074 |
Deposits with Lessors [member] | ||
Short term: | ||
Deposits with lessors | 19,944 | 11,963 |
Long term: | ||
Deposits with lessors | 41,098 | 35,374 |
Guarantee Deposits [member] | ||
Short term: | ||
Guarantee deposits | 6,509 | 8,657 |
Long term: | ||
Guarantee deposits | $ 12,262 | $ 10,032 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) | Jun. 11, 2020USD ($) | Dec. 31, 2020USD ($)Aircraft | Dec. 31, 2019USD ($)Aircraft | Dec. 31, 2018USD ($) |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment loss | $ 1,070,000 | $ 470,661,000 | $ 38,881,000 | |
Reclassification of assets held for sale | 352,867,000 | |||
Chapter 11 Plan of Reorganization [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Decrease through classified as held for sale property plant and equipment | 221,866,000 | |||
Airbus and Boeing [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Renegotiated Value Of Purchase Of Property Plant And Equipment classified as Investing Activities | 58,548,000 | |||
Other Cash Receipts From Renegotiation Of Property Plant And Equipment | 50,004,000 | |||
Cash Retained For Future Orders | 4,329,000 | |||
Other Cash Receipts Payments For Cross Future Predelivery Payments | 4,219,000 | |||
320 [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions to right-of-use assets | 197,707,000 | |||
Additions to right of use assets | $ 197,707,000 | |||
A-318 [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft sold | Aircraft | 10 | |||
A-320 [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft sold | Aircraft | 9 | 16 | ||
A-300-F [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft purchased | Aircraft | 1 | |||
Engine [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Carried out and capitalized engine maintenance | $ 43,169,000 | $ 142,514,000 | ||
B-787-9 | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft purchased | Aircraft | 1 | |||
A-320-N | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft purchased | Aircraft | 3 | |||
A-320-N | Aircraft 1 [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | $ 33,500,000 | |||
A-320-N | Aircraft 2 [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 31,111,000 | |||
A-320-N | Aircraft 3 [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 30,242,000 | |||
A Seven Eighty Seven And Nine [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions to right-of-use assets | 77,673,000 | |||
Additions to right of use assets | 77,673,000 | |||
Administrative Property In Venzuela [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment loss | 14,867,000 | |||
Embarer E One Hundred And Ninety And Airbus [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment loss | 455,794,000 | |||
Embarer E One Hundred And Ninety [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft sold | Aircraft | 10 | |||
A-319 [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft sold | Aircraft | 2 | |||
A-321 [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft sold | Aircraft | 4 | |||
A-330 [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft sold | Aircraft | 2 | |||
A-330-F [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Number of aircraft sold | Aircraft | 1 | |||
Additions | 14,495 | |||
Connectivity And Densification Project [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions to right-of-use assets | 7,581,000 | |||
Additions to right of use assets | 7,581,000 | |||
Due to Replacement [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Decrease through classified as held for sale property plant and equipment | $ 18,946,000 | |||
Fuselage Train and APU [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Carried out and capitalized engine maintenance | 30,694,000 | $ 16,658,000 | ||
Structural [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Withdrawals and for Engine Maintenance | 18,726,000 | 6,745,000 | ||
Engine OVH And LLP [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Withdrawals and for Engine Maintenance | 104,766,000 | 104,886,000 | ||
PDPs [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Writeoff Capitalization of interest | 19,794,000 | |||
Capitalized Borrowing Costs | $ 8,778,000 | |||
Average interest rate | 7.01% | |||
Improvements and Adherence To Crew Training Building [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 2,567,000 | |||
Revaluation [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Additions | 1,074,000 | |||
Assets in Progress [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment loss | 2,241,000 | |||
Tools [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment loss | 3,644,000 | |||
Computer and Security Equipment [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment loss | 1,673,000 | |||
Other Non Aeronautical Equipment [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment loss | 2,570,000 | |||
Support Equipment And Ramp [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Adjustments to Impairmet loss | 22,430,000 | |||
Property Improvements [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Adjustments to Impairmet loss | 13,397,000 | |||
Tools and Other Equipment [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Adjustments to Impairmet loss | $ 5,624,000 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Flight Equipment, Property and Other Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 4,953,317 | $ 5,313,317 | |
Adoption IFRS 16 | 1,079,733 | ||
Sale of subsidiaries | 7,712 | $ 7,674 | |
Ending balance | 4,811,544 | 4,953,317 | 5,313,317 |
Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,339,232 | 8,000,009 | 6,920,276 |
Adoption IFRS 16 | 1,079,733 | ||
Additions | 309,803 | 599,060 | |
Disposals | (503,360) | (348,342) | |
Reclassification assets held for sale | 352,867 | ||
Transfers to assets held for sale | (1,874,625) | ||
Sale of subsidiaries | (39,631) | ||
Revaluation | 1,074 | 2,761 | |
Ending balance | 6,499,616 | 6,339,232 | 8,000,009 |
Gross Carrying Amount [member] | Previously stated [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,339,232 | ||
Ending balance | 6,339,232 | ||
Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,385,915 | 1,606,959 | |
Additions | 482,819 | 548,276 | |
Disposals | (181,732) | (192,662) | |
Impairment | 1,070 | 470,661 | |
Transfers to assets held for sale | (1,030,387) | ||
Sale of subsidiaries | (16,932) | ||
Ending balance | 1,688,072 | 1,385,915 | 1,606,959 |
Flight Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,987,836 | 4,215,969 | |
Ending balance | 3,988,466 | 3,987,836 | 4,215,969 |
Flight Equipment [member] | Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4,933,056 | 6,254,360 | 5,244,160 |
Adoption IFRS 16 | 1,010,200 | ||
Additions | 205,289 | 303,476 | |
Disposals | (240,812) | (48,381) | |
Transfers | 1,710 | 18,237 | |
Reclassification assets held for sale | 352,867 | ||
Transfers to assets held for sale | (1,563,366) | ||
Sale of subsidiaries | (31,270) | ||
Ending balance | 5,252,110 | 4,933,056 | 6,254,360 |
Flight Equipment [member] | Gross Carrying Amount [member] | Previously stated [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4,933,056 | ||
Ending balance | 4,933,056 | ||
Flight Equipment [member] | Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 945,220 | 1,028,191 | |
Additions | 358,400 | 341,699 | |
Disposals | (38,153) | (39,166) | |
Impairment | 455,794 | ||
Transfers | (1,823) | 7,682 | |
Transfers to assets held for sale | (837,420) | ||
Sale of subsidiaries | (11,560) | ||
Ending balance | 1,263,644 | 945,220 | 1,028,191 |
Capitalized Maintenance [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 367,821 | 426,028 | |
Ending balance | 344,435 | 367,821 | 426,028 |
Capitalized Maintenance [member] | Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 593,794 | 791,004 | 791,004 |
Additions | 73,863 | 219,866 | |
Disposals | (123,494) | (114,323) | |
Transfers | 2,624 | (8,554) | |
Transfers to assets held for sale | (288,775) | ||
Sale of subsidiaries | (5,424) | ||
Ending balance | 546,787 | 593,794 | 791,004 |
Capitalized Maintenance [member] | Gross Carrying Amount [member] | Previously stated [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 593,794 | ||
Ending balance | 593,794 | ||
Capitalized Maintenance [member] | Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 225,973 | 364,976 | |
Additions | 88,666 | 157,572 | |
Disposals | (114,911) | (111,793) | |
Transfers | 2,624 | (6,985) | |
Transfers to assets held for sale | (174,200) | ||
Sale of subsidiaries | (3,597) | ||
Ending balance | 202,352 | 225,973 | 364,976 |
Rotable Spare Parts [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 126,041 | 168,603 | |
Ending balance | 110,576 | 126,041 | 168,603 |
Rotable Spare Parts [member] | Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 173,318 | 225,841 | 225,841 |
Additions | 6,812 | 16,196 | |
Disposals | (18,140) | (43,207) | |
Transfers | (4,301) | (5,228) | |
Transfers to assets held for sale | (20,086) | ||
Sale of subsidiaries | (198) | ||
Ending balance | 157,689 | 173,318 | 225,841 |
Rotable Spare Parts [member] | Gross Carrying Amount [member] | Previously stated [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 173,318 | ||
Ending balance | 173,318 | ||
Rotable Spare Parts [member] | Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 47,277 | 57,238 | |
Additions | 7,307 | 20,047 | |
Disposals | (6,702) | (12,960) | |
Transfers | (769) | (637) | |
Transfers to assets held for sale | (16,377) | ||
Sale of subsidiaries | (34) | ||
Ending balance | 47,113 | 47,277 | 57,238 |
Aircraft Predelivery Payments [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 181,327 | 260,000 | |
Ending balance | 111,982 | 181,327 | 260,000 |
Aircraft Predelivery Payments [member] | Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 181,327 | 260,000 | 260,000 |
Additions | 10,118 | 21,324 | |
Disposals | (79,463) | (95,848) | |
Transfers | (4,149) | ||
Ending balance | 111,982 | 181,327 | 260,000 |
Aircraft Predelivery Payments [member] | Gross Carrying Amount [member] | Previously stated [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 181,327 | ||
Ending balance | 181,327 | ||
Administrative Property [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 111,112 | 125,049 | |
Ending balance | 110,931 | 111,112 | 125,049 |
Administrative Property [member] | Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 138,599 | 135,838 | 135,838 |
Additions | 2,567 | ||
Transfers | 414 | ||
Revaluation | 1,074 | 2,761 | |
Ending balance | 142,654 | 138,599 | 135,838 |
Administrative Property [member] | Gross Carrying Amount [member] | Previously stated [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 138,599 | ||
Ending balance | 138,599 | ||
Administrative Property [member] | Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 27,487 | 10,789 | |
Additions | 2,752 | 2,178 | |
Disposals | (347) | ||
Impairment | 1,070 | 14,867 | |
Transfers | 414 | ||
Ending balance | 31,723 | 27,487 | 10,789 |
Other Property, Plant and Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 179,180 | 117,668 | |
Ending balance | 145,154 | 179,180 | 117,668 |
Other Property, Plant and Equipment [member] | Gross Carrying Amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 319,138 | 332,966 | 263,433 |
Adoption IFRS 16 | 69,533 | ||
Additions | 11,153 | 38,198 | |
Disposals | (41,451) | (46,583) | |
Transfers | (447) | (306) | |
Transfers to assets held for sale | (2,398) | ||
Sale of subsidiaries | (2,739) | ||
Ending balance | 288,394 | 319,138 | 332,966 |
Other Property, Plant and Equipment [member] | Gross Carrying Amount [member] | Previously stated [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 319,138 | ||
Ending balance | 319,138 | ||
Other Property, Plant and Equipment [member] | Accumulated Depreciation and Amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 139,958 | 145,765 | |
Additions | 25,694 | 26,780 | |
Disposals | (21,966) | (28,396) | |
Transfers | (446) | (60) | |
Transfers to assets held for sale | (2,390) | ||
Sale of subsidiaries | (1,741) | ||
Ending balance | $ 143,240 | $ 139,958 | $ 145,765 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets And Good Will, Net Of Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | $ 180,892 | $ 197,474 | |
Goodwill | 308,033 | 308,033 | |
Total Intangible Assets | 488,925 | 505,507 | $ 513,803 |
Routes [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 29,707 | 31,911 | |
Total Intangible Assets | 29,707 | 31,911 | 34,299 |
Trademarks [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 3,938 | 3,938 | |
Total Intangible Assets | 3,938 | 3,938 | 3,959 |
Software and webpages [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 147,247 | 158,690 | |
Total Intangible Assets | $ 147,247 | 158,690 | 84,470 |
Other intangible rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets and goodwill | 2,935 | ||
Total Intangible Assets | $ 2,935 | $ 83,042 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | |||
Net Book Value of Tabgible and Intangible Assets with an indefinite life | $ 488,925 | $ 505,507 | $ 513,803 |
Air Transport UGE [Member] | |||
Disclosure of operating segments [line items] | |||
Net Book Value of Tabgible and Intangible Assets with an indefinite life | $ 3,190,059 |
Intangible Assets - Detail Of I
Intangible Assets - Detail Of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | $ 505,507 | $ 513,803 |
Ending balance | 488,925 | 505,507 |
Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 677,246 | 640,467 |
Additions | 43,764 | 36,850 |
Disposals | (10,171) | (21) |
Sale of subsidiaries | (50) | |
Ending balance | 710,839 | 677,246 |
Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 171,739 | 126,664 |
Amortization for the year | 50,175 | 45,120 |
Sale of subsidiaries | (45) | |
Ending balance | 221,914 | 171,739 |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 308,033 | |
Ending balance | 308,033 | 308,033 |
Goodwill [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 311,180 | 311,180 |
Ending balance | 311,180 | 311,180 |
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 |
Ending balance | 3,147 | 3,147 |
Routes [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 31,911 | 34,299 |
Ending balance | 29,707 | 31,911 |
Routes [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 52,481 | 52,481 |
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 | 20,570 | 18,182 |
Amortization for the year | 2,204 | 2,388 |
Ending balance | 22,774 | 20,570 |
Trademarks 1 [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 3,938 | 3,959 |
Ending balance | 3,938 | 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 | 3,959 |
Disposals | (21) | |
Ending balance | 3,938 | 3,938 |
Software & Webpages [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 158,690 | 84,470 |
Ending balance | 147,247 | 158,690 |
Software & Webpages [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 282,126 | 171,400 |
Additions | 43,764 | 34,751 |
Transfers | 76,025 | |
Disposals | (10,171) | |
Sale of subsidiaries | (50) | |
Ending balance | 315,719 | 282,126 |
Software & Webpages [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 123,436 | 86,930 |
Amortization for the year | 45,036 | 36,551 |
Sale of subsidiaries | (45) | |
Ending balance | 168,472 | 123,436 |
Other Intangible Assets [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 2,935 | 83,042 |
Ending balance | 2,935 | |
Other Intangible Assets [member] | Gross Carrying Amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 27,521 | 101,447 |
Additions | 2,099 | |
Transfers | (76,025) | |
Ending balance | 27,521 | 27,521 |
Other Intangible Assets [member] | Accumulated Depreciation and Amortisation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 24,586 | 18,405 |
Amortization for the year | 2,935 | 6,181 |
Ending balance | $ 27,521 | $ 24,586 |
Intangible Assets - Detail Of_2
Intangible Assets - Detail Of Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Avianca Peru S.A. [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Disposals and retirements, intangible assets other than goodwill | $ 10,171 | |
Other Intangible Assets [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | 33,346 | $ 28,567 |
Other Intangible Assets [member] | SAP Project [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | 17,566 | |
Other Intangible Assets [member] | J2C Project [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | 13,056 | |
Other Intangible Assets [member] | SOC Project [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | 8,848 | |
Other Intangible Assets [member] | CRM Project [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | 2,179 | $ 5,936 |
Other Intangible Assets [member] | Core System project [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | 1,108 | |
Other Intangible Assets [member] | Digital Transformation Project [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | 2,387 | |
Other Intangible Assets [member] | Software and Webpages [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Acquisitions of other intangibles | $ 4,071 |
Intangible Assets - Carrying Va
Intangible Assets - Carrying Value Of The Goodwill Allocated To The Air Transport Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | $ 488,925 | $ 505,507 | $ 513,803 |
Goodwill [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 308,033 | 308,033 | |
Routes [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 29,707 | 31,911 | 34,299 |
Routes [member] | Passenger operations [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | 23,463 | 23,463 | |
Trademarks 1 [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Intangible assets and goodwill | $ 3,938 | $ 3,938 | $ 3,959 |
Intangible Assets - Main Hypoth
Intangible Assets - Main Hypotheses Used In The Calculations Of The Value In Use (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Carrying amount of goodwill routes and trademarks with indefinite life | $ 335,434 | $ 335,434 |
Duration of planning period | 5 years | 5 years |
Revenue growth p.a. after planning period | 3.70% | 4.30% |
Operating Income after planning period | 11.50% | 10.00% |
Capital expenditures after planning period | 2.43% | 6.43% |
Business Enterprise Value | $ 5,724,540 | $ 9,269,446 |
Discount rate | 14.11% | 8.72% |
Bottom of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Revenue growth p.a. over planning period | 2.50% | 2.30% |
Operating income over planning period | 5.90% | 5.20% |
Capital expenditures over planning period | 1.24% | 0.20% |
Top of Range [member] | ||
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | ||
Revenue growth p.a. over planning period | 24.80% | 5.00% |
Operating income over planning period | 11.40% | 8.80% |
Capital expenditures over planning period | 3.86% | 12.69% |
Intangible Assets - Main Hypo_2
Intangible Assets - Main Hypotheses Used In The Calculations Of The Value In Use (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Discount rates | 6.00% | 6.25% |
Bottom of range [member] | Covid19 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Discount rates | 9.34% | |
Top of range [member] | Covid19 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Discount rates | 14.11% |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets Held for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of assets held for sale [line items] | ||
Assets held for sale | $ 884 | $ 681,053 |
Debt assets held for sale | 490,458 | |
Airbus Aircraft [member] | ||
Disclosure of assets held for sale [line items] | ||
Assets held for sale | 128,640 | |
Sale and Subsequent Lease [member] | ||
Disclosure of assets held for sale [line items] | ||
Assets held for sale | 489,149 | |
Parts inventory [Member] | ||
Disclosure of assets held for sale [line items] | ||
Assets held for sale | $ 884 | 63,264 |
Liabilities Associated with the Assets Held for Sale [member] | ||
Disclosure of assets held for sale [line items] | ||
Debt assets held for sale | $ 490,458 |
Assets Held for Sale - Summar_2
Assets Held for Sale - Summary of Assets Held for Sale (Parenthetical) (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Aircraft | Dec. 31, 2019Aircraft | |
Disclosure of assets held for sale [line items] | ||
Number of aircrafts subject to sale and lease agreement | Aircraft | Aircraft | 15 | |
Subsequent Event [Member] | Covid19 [Member] | ||
Disclosure of assets held for sale [line items] | ||
Revaluation of carrying amount of Property plant and equipment recoverable value | $ 352,867 | |
A-320 [member] | ||
Disclosure of assets held for sale [line items] | ||
Number of aircraft sold | Aircraft | 9 | 16 |
Proceeds from non current assets or disposal group classified as held for sale | $ 263,293 | |
Loss on sale of disposal group discontinued assets | 1,628 | |
Embraer E One Hundred And Ninty [Member] | ||
Disclosure of assets held for sale [line items] | ||
Proceeds from non current assets or disposal group classified as held for sale | 62,356 | |
Loss on sale of disposal group discontinued assets | $ 16 |
Debt - Schedule of Loans and Bo
Debt - Schedule of Loans and Borrowings, Measured at Amortized Cost (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [line items] | ||
Current | $ 5,011,094 | $ 872,044 |
Non-current | 1,270,162 | 3,984,279 |
Current Short Term Borrowings [member] | ||
Disclosure of financial liabilities [line items] | ||
Current | 4,235,197 | 569,292 |
Current Portion of Bonds [member] | ||
Disclosure of financial liabilities [line items] | ||
Current | 352,011 | 65,632 |
Long-term Debt [member] | ||
Disclosure of financial liabilities [line items] | ||
Non-current | 292,503 | 2,557,257 |
Non-current Portion of Bonds [member] | ||
Disclosure of financial liabilities [line items] | ||
Non-current | 465,612 | |
Aircraft Rentals Right Of Use [Member] | ||
Disclosure of financial liabilities [line items] | ||
Current | 414,410 | 229,260 |
Non-current | 929,789 | 899,265 |
Other Rentals Right Of Use [Member] | ||
Disclosure of financial liabilities [line items] | ||
Current | 9,476 | 7,860 |
Non-current | $ 47,870 | $ 62,145 |
Debt - Schedule of outstanding
Debt - Schedule of outstanding obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial liabilities [line items] | |||
Nominal value | $ 6,988,004 | $ 6,298,821 | |
Carrying amount | $ 6,281,256 | $ 4,856,323 | $ 4,007,580 |
Short-term Borrowings [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2022 | 2020 | |
Weighted average interest rate | 6.00% | 6.43% | |
Nominal value | $ 108,257 | $ 128,671 | |
Carrying amount | 4,235,197 | $ 118,137 | |
Short-term Borrowings [member] | Debt Reclassification Chapter 11 [member] | |||
Disclosure of financial liabilities [line items] | |||
Carrying amount | $ 99,857 | ||
Long-term Debt [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2029 | 2029 | |
Weighted average interest rate | 6.91% | 4.68% | |
Nominal value | $ 4,975,853 | $ 4,185,526 | |
Carrying amount | 292,503 | $ 3,008,412 | |
Long-term Debt [member] | Debt Reclassification Chapter 11 [member] | |||
Disclosure of financial liabilities [line items] | |||
Carrying amount | $ 4,427,843 | ||
Bonds [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2023 | 2023 | |
Weighted average interest rate | 8.88% | 9.93% | |
Nominal value | $ 550,000 | $ 550,000 | |
Carrying amount | $ 352,011 | $ 531,244 | |
Aircraft rentals [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2031 | 2031 | |
Weighted average interest rate | 4.92% | 4.92% | |
Nominal value | $ 1,266,489 | $ 1,347,219 | |
Carrying amount | $ 1,344,199 | $ 1,128,525 | |
Other rentals [member] | |||
Disclosure of financial liabilities [line items] | |||
Due through | 2037 | 2037 | |
Weighted average interest rate | 7.16% | 7.37% | |
Nominal value | $ 87,405 | $ 87,405 | |
Carrying amount | $ 57,346 | $ 70,005 |
Debt - Summary of Detail of the
Debt - Summary of Detail of the Debt Balance (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of debt [line items] | |||
Debt | $ 6,281,256 | $ 4,856,323 | $ 4,007,580 |
Aircraft [member] | |||
Disclosure of debt [line items] | |||
Debt | 1,883,281 | 1,832,500 | |
Corporate [member] | |||
Disclosure of debt [line items] | |||
Debt | 2,644,419 | 1,294,049 | |
Bonds [member] | |||
Disclosure of debt [line items] | |||
Debt | 352,011 | 531,244 | |
Right of use IFRS 16 [member] | |||
Disclosure of debt [line items] | |||
Debt | $ 1,401,545 | $ 1,198,530 |
Debt - Schedule of Classificati
Debt - Schedule of Classification of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | |||
Notional amount | $ 6,281,256 | $ 4,856,323 | $ 4,007,580 |
Guaranteed [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount | 4,026,496 | ||
Not Guaranteed [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount | 174,167 | ||
Debt in Chapter 11 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount | 4,200,663 | ||
Loans [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount | 397,630 | ||
(Debtor in Possession) DIP [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Notional amount | $ 1,682,963 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands | Mar. 20, 2020USD ($) | Nov. 18, 2019USD ($)$ / shares | Oct. 03, 2019$ / shares | Dec. 31, 2020USD ($)Aircraft | Dec. 31, 2019USD ($)Aircraft | Dec. 31, 2018USD ($) | Oct. 05, 2020USD ($) | Jun. 11, 2020USD ($) | May 10, 2020USD ($) |
Disclosure of debt [line items] | |||||||||
Debt issuance | $ 191,819 | $ 165,838 | |||||||
Proceeds from loans and borrowings | $ 944,580 | $ 616,555 | $ 303,640 | ||||||
Borrowings description | a loan acquired by LifeMiles for $20,000 at a rate Libor + 4,5% a term of 2 years | Also, there are loans acquired by LifeMiles, $100,000 at a rate Libor + 5.5 for a term of 3 years. | |||||||
Carrying amount | $ 6,281,256 | $ 4,856,323 | $ 4,007,580 | ||||||
Transaction Costs | $ 42,516 | ||||||||
Number of aircraft | Aircraft | 146 | 171 | |||||||
Borrowings Reclassified As Asset Available For Sale | $ 490,458 | $ 490,458 | |||||||
Bankruptcy claims amount of claims filed | 4,641,087 | ||||||||
Loans acquired | $ 168,500 | ||||||||
Number of aircrafts under financial lease for which claims filed were rejected | Aircraft | 8 | ||||||||
Number of aircrafts under right to use assets for which claims Filed were rejected | Aircraft | 4 | ||||||||
Covid 19 [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Carrying amount | $ 1,992,191 | ||||||||
Borrowings reclassified | $ 2,073,197 | ||||||||
Debt amortization payments suspended | $ 210,000 | ||||||||
Debtor In Possession Structure [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Bankruptcy claims amount of claims filed | $ 4,829,070 | ||||||||
Bankruptcy claims amount of filed claims denied | $ 277,091 | $ 259,347 | |||||||
Number of aircrafts for which claims filed were rejected | Aircraft | 12 | ||||||||
Bankruptcy claims amount of claims debt filed | $ 4,200,663 | ||||||||
American Depository Shares Member [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Currency Conversion Price | $ / shares | $ 4.6217 | $ 3.4235 | |||||||
Increase Decrease Currency Conversion Price | $ / shares | $ 4.1595 | ||||||||
Cash | $ 700,000 | ||||||||
Description of Conversion Loan | (a) Company ADSs are priced at a price of $7.00 (in dollars), or greater, at a weighted average price volume at 112 of 150 consecutive business days (if such conversion occurs after the first anniversary of the Convertible Loan disbursement) or (b) the Company ADSs are quoted at a price of $7.00 (in dollars), or greater, at a weighted price volume of 90 consecutive 120 business days | ||||||||
Weighted Average Interest Rate | 35.00% | ||||||||
Senior Bonds [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Carrying amount | 65,632 | ||||||||
Aggregate principal amount | 484,419 | ||||||||
Borrowings rolled up | 219,600 | ||||||||
Senior Bonds [Member] | Debtor In Possession Structure [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Borrowings rolled up | 219,600 | ||||||||
Long Term And Short Term Borrowing [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Reclassification Of Noncurrent And Current Borrowings | 2,073,197 | 34,407 | |||||||
Bonds [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Carrying amount | $ 352,011 | $ 531,244 | |||||||
Weighted Average Interest Rate | 8.88% | 9.93% | |||||||
Increase Decrease In Borrowings Exchange To Bonds | $ 484,419 | ||||||||
Borrowings rolled up | $ 386,998 | ||||||||
Bonds [member] | Debtor In Possession Structure [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Borrowings rolled up | 50,000 | ||||||||
Bonds maturing in 2020 [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Interest rate | 9.00% | ||||||||
Bonds maturing in 2023 [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Interest rate | 8.375% | ||||||||
Debtor in Possession [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Debt issuance | 1,088,371 | ||||||||
Carrying amount | 1,682,963 | ||||||||
Airbus Three Hundred And Thirty Aircraft Member [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Proceeds from loans and borrowings | $ 616,555 | ||||||||
Carrying amount | 465,612 | ||||||||
Bonds Exchange | 484,419 | ||||||||
Transaction Costs | 18,807 | ||||||||
Loans Acquried | 9,000 | ||||||||
Aircraft [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Debt issuance | 313,001 | ||||||||
Suspended operating lease payments | 157,000 | ||||||||
Carrying amount | $ 1,883,281 | $ 1,832,500 | |||||||
Number of aircraft | Aircraft | 3 | ||||||||
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 | ||||||||
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 matured on May 10, 2020 | ||||||||
Carrying amount | $ 550,000 | ||||||||
Borrowings | 71,073 | $ 65,632 | |||||||
Avianca Holdings Avianca Leasing and Grupo Taca Holdings Limited [member] | Financial guarantee contracts [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Carrying amount | $ 367,000 | ||||||||
Avianca Holdings Avianca Leasing and Grupo Taca Holdings Limited [member] | Bonds maturing in 2020 [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Interest rate | 8.375% | ||||||||
Aggregate principal amount | $ 65,581 | ||||||||
Avianca Holdings SA [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Borrowings issuers | Avianca Holdings S.A. | ||||||||
Initial issue date | Dec. 31, 2019 | ||||||||
Issue amount | $ 484,419 | ||||||||
Interest | The Senior Notes will bear interest at a fixed rate of 9.00% per year, The first issuance is payable semiannually in arrears on May 10 and November 10 of each year, commencing on November 10, Interest will accrue from May 10, 2020, The interest are accumulated from December 31, 2019. | ||||||||
Maturity date | The Senior Notes will mature on May 10, 2023 | ||||||||
Interest rate | 3.00% | ||||||||
Carrying amount | $ 250,000 | $ 484,419 | |||||||
Additional Borrowings | 74,000 | ||||||||
Borrowings | $ 324,000 | 280,938 | 465,612 | ||||||
Debt transaction costs | 18,807 | ||||||||
Avianca Holdings SA [Member] | Financial guarantee contracts [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Carrying amount | $ 367,000 | ||||||||
Avianca Holdings SA [Member] | Bonds maturing in 2023 [member] | |||||||||
Disclosure of debt [line items] | |||||||||
Interest rate | 9.00% | ||||||||
Aggregate principal amount | $ 484,419 | ||||||||
UMB Bank NA [Member] | |||||||||
Disclosure of debt [line items] | |||||||||
Debt issuance | $ 77,917 | $ 459,717 | |||||||
Maturity date | 1 year | 4 years | |||||||
Interest rate | 9.00% | 3.00% | |||||||
Borrowings | $ 51,000 | $ 324,000 |
Debt - Schedule of Senior Notes
Debt - Schedule of Senior Notes Outstanding and the Corresponding Balance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 18, 2019 | Dec. 31, 2018 | |
Disclosure of debt [line items] | ||||
Total placed in original currency | $ 6,281,256 | $ 4,856,323 | $ 4,007,580 | |
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 | $ 71,073 | 65,632 | ||
Avianca Holdings SA [Member] | ||||
Disclosure of debt [line items] | ||||
Original currency | USD | |||
Total placed in original currency | $ 484,419 | $ 250,000 | ||
Borrowings | $ 280,938 | $ 465,612 | $ 324,000 |
Debt - Schedule of Future Payme
Debt - Schedule of Future Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Aircraft Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 1,541,151 | $ 1,243,556 |
Other Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 105,436 | 78,315 |
Aircraft and Corporate Debt [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,610,204 | 3,640,008 |
Year one [member] | Aircraft Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 471,635 | 256,192 |
Year one [member] | Other Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 14,350 | 8,318 |
Year one [member] | Aircraft and Corporate Debt [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,304,761 | 554,021 |
Year two [member] | Aircraft Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 319,849 | 238,618 |
Year two [member] | Other Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,825 | 8,141 |
Year two [member] | Aircraft and Corporate Debt [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 305,443 | 540,615 |
Year three [member] | Aircraft Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 258,452 | 226,537 |
Year three [member] | Other Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,205 | 7,557 |
Year three [member] | Aircraft and Corporate Debt [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 853,756 | |
Year four [member] | Aircraft Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 229,118 | 198,880 |
Year four [member] | Other Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,946 | 7,487 |
Year four [member] | Aircraft and Corporate Debt [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 612,874 | |
Year Five and Thereafter [member] | Aircraft Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 262,097 | 323,329 |
Year Five and Thereafter [member] | Other Rights Of Use [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 74,110 | 46,812 |
Year Five and Thereafter [member] | Aircraft and Corporate Debt [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 1,078,742 |
Debt - Schedule of Future Pay_2
Debt - Schedule of Future Payments on Bonds (Detail) - Bonds [member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 352,011 | $ 698,436 |
Year one [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 352,011 | 105,022 |
Year two [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 43,598 | |
Year three [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 43,598 | |
Year four [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 506,218 | |
Year Five and Thereafter [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings |
Debt - Schedule of Changes in L
Debt - Schedule of Changes in Liabilities Derived from Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | $ 4,856,323 | $ 4,007,580 |
Adoption IFRS 16 | 1,079,733 | |
New acquisitions | 1,113,080 | 1,091,167 |
New leases | 191,834 | 322,145 |
Financial cost | 286,298 | 262,004 |
Payments | (350,848) | (637,740) |
Interest payments | (136,063) | (275,054) |
Foreign exchange movement | (169,826) | (18,635) |
Reclassification | 490,458 | (974,877) |
Notional amount ending balance | 6,281,256 | 4,856,323 |
Non-current portion of long term debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | 2,557,257 | 2,830,922 |
New acquisitions | 12,916 | 454,055 |
Foreign exchange movement | (1,319) | (7,869) |
Reclassification | (2,276,351) | (719,851) |
Notional amount ending balance | 292,503 | 2,557,257 |
Current Interest Bearing Loans and Borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | 118,137 | 119,866 |
New acquisitions | 51,223 | 26,717 |
Financial cost | 6,707 | 7,563 |
Payments | (14,447) | (27,833) |
Interest payments | (2,400) | (7,207) |
Foreign exchange movement | (9,363) | (969) |
Reclassification | (50,000) | |
Notional amount ending balance | 99,857 | 118,137 |
Current Portion of Long Term Credits [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | 451,155 | 469,500 |
New acquisitions | 1,048,941 | 144,783 |
Financial cost | 174,384 | 155,444 |
Payments | (269,357) | (378,893) |
Interest payments | (102,713) | (162,096) |
Foreign exchange movement | (203,479) | (6,976) |
Reclassification | 3,036,409 | 229,393 |
Notional amount ending balance | 4,135,340 | 451,155 |
Current Bonds [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | 65,632 | 587,292 |
Financial cost | 21,475 | 47,112 |
Payments | 85 | (26,820) |
Interest payments | (53,866) | |
Foreign exchange movement | (3,667) | |
Reclassification | 264,819 | (484,419) |
Notional amount ending balance | 352,011 | 65,632 |
Non current Portion of Bonds [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | 465,612 | |
New acquisitions | 465,612 | |
Financial cost | 2,314 | |
Foreign exchange movement | 16,493 | |
Reclassification | (484,419) | |
Notional amount ending balance | 465,612 | |
Aircraft rentals [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | 1,128,525 | |
Adoption IFRS 16 | 1,010,200 | |
New leases | 191,819 | 313,001 |
Financial cost | 79,730 | 49,081 |
Payments | (52,729) | (194,676) |
Interest payments | (28,919) | (49,081) |
Foreign exchange movement | 25,773 | |
Notional amount ending balance | 1,344,199 | 1,128,525 |
Other rentals [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount beginning balance | 70,005 | |
Adoption IFRS 16 | 69,533 | |
New leases | 15 | 9,144 |
Financial cost | 1,688 | 2,804 |
Payments | (14,400) | (9,518) |
Interest payments | (2,031) | (2,804) |
Foreign exchange movement | 2,069 | 846 |
Notional amount ending balance | $ 57,346 | $ 70,005 |
Accounts Payable - Schedule of
Accounts Payable - Schedule of Accounts Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts payable details [abstract] | ||
Trade accounts payable | $ 381,486 | $ 302,414 |
Taxes no related to rent | 105,046 | 210,330 |
Social Charges | 1,766 | 327 |
Other payables | 733 | 17,544 |
Total current | 489,031 | 530,615 |
Trade accounts payable | 5,086 | 2,112 |
Social Charges | 2,070 | 2,190 |
Other payables | 10,069 | 7,629 |
Total non current | $ 17,225 | $ 11,931 |
Accounts Payable - Additional I
Accounts Payable - Additional Information (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Prior to Entering Chapter Eleven of Companies [Member] | |
Statement [line items] | |
Accounts payable | $ 261,126 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses details [abstract] | ||
Operating expenses | $ 16,448 | $ 82,117 |
Other accrued expenses | 5,493 | |
Total | $ 16,448 | $ 87,610 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Prior to Entering Chapter Eleven of Companies [Member] | |
Statement [line items] | |
Accrued Expense | $ 22 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Provisions [line items] | ||||
Balances at beginning of year | $ 144,388 | |||
Current | $ 22,277 | $ 21,963 | ||
Non - current | 138,562 | 122,425 | ||
Total | 144,388 | $ 144,388 | 160,839 | 144,388 |
Balances at end of year | 160,839 | 144,388 | ||
Refunds Provision [member] | ||||
Disclosure of Provisions [line items] | ||||
Balances at beginning of year | 144,388 | 130,160 | ||
Provisions made | 25,435 | 65,671 | ||
Provisions reversed | (6,475) | (49,557) | ||
Total | 160,839 | 130,160 | $ 160,839 | $ 144,388 |
Provisions used | (2,509) | (1,886) | ||
Balances at end of year | $ 160,839 | $ 144,388 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Employee Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Classes of employee benefits expense [abstract] | ||
Defined benefit plan | $ 143,684 | $ 156,732 |
Other benefits Short term | 91,176 | 105,792 |
Other benefits Long term | 3,736 | 4,491 |
Total | 238,596 | 267,015 |
Current | 135,056 | 148,678 |
Non - current | 103,540 | 118,337 |
Total | $ 238,596 | $ 267,015 |
Employee Benefits - Schedule _2
Employee Benefits - Schedule of Fixed Number of Beneficiaries (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefits Details [Abstract] | ||
Fair value of plan assets | $ (216,548) | $ (204,527) |
Present value of the obligation | 360,232 | 361,259 |
Total employee benefit liability | $ 143,684 | $ 156,732 |
Employee Benefits - Schedule _3
Employee Benefits - Schedule of Components of Net Benefit Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Net costs | $ 143,684 | $ 156,732 |
Defined Benefit Plan [member] | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 1,492 | 1,152 |
Interest cost on net benefit obligation | 16,472 | 16,376 |
Interest income on plan assets | (12,191) | (12,827) |
Net costs | 5,773 | 4,701 |
Other Benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 2,062 | 1,359 |
Interest cost on net benefit obligation | 3,625 | 3,780 |
Net costs | $ 5,687 | $ 5,139 |
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, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | $ 361,259 | |
Benefit obligation, ending balance | 360,232 | $ 361,259 |
Fair value of plan assets | (216,548) | (204,527) |
Total employee benefit liability | 143,684 | 156,732 |
Total | 143,684 | 156,732 |
Present Value of Defined Benefit Obligation [member] | ||
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | 361,259 | 323,456 |
Period cost | 23,651 | 22,667 |
Benefits paid by employer | (29,856) | (32,916) |
Remeasurements of defined benefit liability | 15,662 | 49,926 |
Other | 145 | |
Exchange differences | (10,629) | (1,874) |
Benefit obligation, ending balance | 360,232 | 361,259 |
Fair value of plan assets | (216,548) | (204,527) |
Total employee benefit liability | 143,684 | 156,732 |
Current | 42,552 | 42,885 |
Non-current | 101,132 | 113,847 |
Total | 143,684 | 156,732 |
Defined Benefit Plan [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total employee benefit liability | 5,773 | 4,701 |
Total | 5,773 | 4,701 |
Defined Benefit Plan [member] | Present Value of Defined Benefit Obligation [member] | ||
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | 300,288 | 268,486 |
Period cost | 17,964 | 17,528 |
Benefits paid by employer | (26,119) | (27,726) |
Remeasurements of defined benefit liability | 9,498 | 42,048 |
Other | 145 | |
Exchange differences | (9,832) | (48) |
Benefit obligation, ending balance | 291,944 | 300,288 |
Fair value of plan assets | (216,548) | (204,527) |
Total employee benefit liability | 75,396 | 95,761 |
Current | 39,219 | 39,539 |
Non-current | 36,177 | 56,222 |
Total | 75,396 | 95,761 |
Other Benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total employee benefit liability | 5,687 | 5,139 |
Total | 5,687 | 5,139 |
Other Benefits [member] | Present Value of Defined Benefit Obligation [member] | ||
Disclosure of defined benefit plans [line items] | ||
Benefit obligation, beginning balance | 60,971 | 54,970 |
Period cost | 5,687 | 5,139 |
Benefits paid by employer | (3,737) | (5,190) |
Remeasurements of defined benefit liability | 6,164 | 7,878 |
Exchange differences | (797) | (1,826) |
Benefit obligation, ending balance | 68,288 | 60,971 |
Total employee benefit liability | 68,288 | 60,971 |
Current | 3,333 | 3,346 |
Non-current | 64,955 | 57,625 |
Total | $ 68,288 | $ 60,971 |
Employee Benefits - Schedule _4
Employee Benefits - Schedule of Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Fair value of assets , beginning balance | $ 156,732 | |
Fair value of assets, ending balance | 143,684 | $ 156,732 |
Defined Benefit Plan [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Fair value of assets , beginning balance | 4,701 | |
Interest income on plan assets | 16,472 | 16,376 |
Fair value of assets, ending balance | 5,773 | 4,701 |
Defined Benefit Plan [member] | Plan Assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Fair value of assets , beginning balance | 204,527 | 178,594 |
Interest income on plan assets | 12,191 | 12,827 |
Remeasurament of interest assumptions | 1,625 | 7,385 |
Employer contributions | 29,650 | 34,083 |
Benefits paid | (22,246) | (25,509) |
Exchange differences | (9,199) | (2,853) |
Fair value of assets, ending balance | $ 216,548 | $ 204,527 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)BeneficiaryPayment | Dec. 31, 2019USD ($)Beneficiary | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($) | |
Classes Of Employee Benefits Expense [line items] | ||||
Amount recognized in other comprehensive income | $ (14,037) | $ (42,541) | $ (9,039) | |
Employee benefits | $ 34,321 | |||
Average duration of benefit plan obligation | 11 years 1 month 6 days | 10 years 9 months 14 days | ||
Number of beneficiaries | Beneficiary | 12 | 12 | ||
Period of short term indicators | 1 year | |||
Number of payments to be deferred | Payment | 3 | |||
Other long-term employee benefits | $ 1,233 | $ 2,619 |
Employee Benefits - Schedule _5
Employee Benefits - Schedule of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Amount recognized in other comprehensive income | $ (14,037) | $ (42,541) | $ (9,039) |
Present Value of Defined Benefit Obligation [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Actuarial gains recognized in other comprehensive income | (15,662) | (49,926) | |
Return on plan assets adjustment | 1,625 | 7,385 | |
Amount recognized in other comprehensive income | $ (14,037) | $ (42,541) |
Employee Benefits - Schedule _6
Employee Benefits - Schedule of Determining Pension and Post-employment Medical Benefit (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate on all plans | 6.00% | 6.25% |
Price inflation | 3.00% | 3.00% |
Future pension increase | 3.00% | 3.00% |
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, 2020 | Dec. 31, 2019 |
Equity Securities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 56.00% | 31.00% |
Debt Securities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 12.00% | 18.00% |
Domestic Corporate Bonds [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 23.00% | 44.00% |
Foreign Government/Corporate Bonds [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 2.00% | 1.00% |
Other [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Plans assets, percentage | 7.00% | 6.00% |
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, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Expected payments | $ 235,502 | $ 241,679 |
Year one [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 34,318 | 34,655 |
Year two [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 20,714 | 21,413 |
Year three [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 21,303 | 21,868 |
Year four [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 22,253 | 22,537 |
Year five [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | 21,841 | 23,288 |
Later than five years and not later than ten years [member] | ||
Disclosure of defined benefit plans [line items] | ||
Expected payments | $ 115,073 | $ 117,918 |
Employee Benefits - Schedule _8
Employee Benefits - Schedule of Change in the Respective Assumptions (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Discount rate [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase decrease in defined benefit obligation | $ (18,862) |
Increase decrease in defined benefit obligation | 21,856 |
Pension increase [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase decrease in defined benefit obligation | 16,501 |
Increase decrease in defined benefit obligation | (14,348) |
Mortality table [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase decrease in defined benefit obligation | (1,317) |
Increase decrease in defined benefit obligation | (13,317) |
Healthcare cost table [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase decrease in defined benefit obligation | (2,252) |
Increase decrease in defined benefit obligation | $ (8,887) |
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, 2020 | Dec. 31, 2019 |
Air traffic liability tables [abstract] | ||
Air traffic liability | $ 399,184 | $ 337,363 |
Miles deferred revenue | 162,013 | 187,931 |
Current | 561,197 | 525,294 |
Miles deferred revenue | 290,802 | 229,701 |
Non-current | $ 290,802 | $ 229,701 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other liabilities details [abstract] | ||
Derivative instruments | $ 2,697 | $ 1,289 |
Deferred Revenue | 7,270 | 55,256 |
Other | 2,149 | 14 |
Total | 12,116 | 56,559 |
Current | 4,144 | 5,110 |
Non-current | 7,972 | 51,449 |
Total | $ 12,116 | $ 56,559 |
Other Liabilities - Schedule _2
Other Liabilities - Schedule of Other Liabilities (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Other liabilities details [abstract] | |
Deferred profits with sale of aircraft | $ 38,200 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Nov. 28, 2014 | Nov. 05, 2013 | Dec. 31, 2020 | Dec. 31, 2013 |
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 will be entitled to receive a minimum dividend to be paid with preference over the holders of the common shares, provided that the dividends have been declared by our shareholders at the annual meeting, If no dividends are declared, none of our shareholders will be entitled to dividends, If the dividends are declared and our annual distributable earnings are sufficient to pay a dividend of at least COP$50 per share to all of our holders of preferred and ordinary shares, such benefits will be paid equally with respect to our preferred and ordinary shares, however, if our earnings Annual distributions are insufficient to pay a dividend of at least COP$50 per share to all our holders of preferred and ordinary shares, a minimum preferred dividend of COP$50 per share will be distributed in proportion to the holders of preferred shares, and any excess over said minimum preferred dividend will be distributed exclusively to holders of ordinary shares. | |||
Share nominal value | $ 0.12 | |||
Issued capital common stock [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Decrease In preferred shares | $ 452,000 | |||
Issued capital preferred stock [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Decrease In preferred shares | $ 25,000 | |||
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 | |||
Number of Share Acquired | 197,141 | |||
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 |
Equity - Schedule of Authorized
Equity - Schedule of Authorized, Issued and Paid Shares (Detail) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | ||
Authorized shares | 4,000,000,000 | 4,000,000,000 |
Common Shares Issued And Paid | 660,800,003 | 660,800,003 |
Preferred Shares Issued and Paid | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | $ (78,104) | $ (43,902) | |
Other comprehensive Income (loss) for the Period | (12,804) | (34,202) | $ (43,555) |
Ending balance | (90,908) | (78,104) | |
Cash Flow Hedges [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | (3,098) | (7,194) | |
Other comprehensive Income (loss) for the Period | 495 | 4,096 | |
Ending balance | (2,603) | (3,098) | |
Fair Value Reserves [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | 457 | (748) | |
Other comprehensive Income (loss) for the Period | 503 | 1,205 | |
Ending balance | 960 | 457 | |
Reserves Relating to Actuarial Gains and Losses [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | (116,704) | (74,177) | |
Other comprehensive Income (loss) for the Period | (14,608) | (42,527) | |
Ending balance | (131,312) | (116,704) | |
Income Tax Reserves Relating to Fair Value Reserves [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | 3 | 3 | |
Ending balance | 3 | 3 | |
Income Tax Reserves Relating to Reserve Actuarial Gains and Losses [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | 527 | 86 | |
Other comprehensive Income (loss) for the Period | (855) | 441 | |
Ending balance | (328) | 527 | |
Revaluation of Administrative Property [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | 40,695 | 37,934 | |
Other comprehensive Income (loss) for the Period | 1,074 | 2,761 | |
Ending balance | 41,769 | 40,695 | |
Total OCI [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | (78,120) | (44,096) | |
Other comprehensive Income (loss) for the Period | (13,391) | (34,024) | |
Ending balance | (91,511) | (78,120) | |
Non-controlling interests [member] | |||
Disclosure of the Other Comprenhensive Income [line items] | |||
Beginning balance | 16 | 194 | |
Other comprehensive Income (loss) for the Period | 587 | (178) | |
Ending balance | $ 603 | $ 16 |
Equity - Schedule of Reclassifi
Equity - Schedule of Reclassification, Without Considering Items Remaining in OCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | $ (12,804) | $ (34,202) | $ (43,555) |
Cash Flow Hedges [member] | |||
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | 495 | 4,096 | |
Fair Value Reserves [member] | |||
Disclosure of reclassification of financial assets [line items] | |||
Other comprehensive income (loss) in the period | 503 | 1,205 | |
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 | 4,152 | (4,481) | |
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 | (3,678) | 8,413 | |
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 | $ 503 | $ 1,205 |
Non-Controlling Interests - Sch
Non-Controlling Interests - Schedule of Non-controlling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of noncontrolling interests [line items] | |||
Current assets | $ 1,476,324 | $ 1,711,276 | |
Non-current assets | 5,384,170 | 5,562,634 | |
Current liabilities | (6,320,081) | (2,732,150) | |
Non-current liabilities | (1,842,185) | (4,536,593) | |
(Loss) profit | (7,200) | 19,717 | $ 25,946 |
Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
Current assets | 490,667 | 119,590 | |
Non-current assets | 3,953,675 | 45,096 | |
Current liabilities | (2,956,729) | (152,544) | |
Non-current liabilities | (1,500,780) | (214,308) | |
Total assets | (13,167) | (202,166) | |
(Loss) profit | (7,200) | 19,717 | |
Other comprehensive income | $ 587 | $ (178) | |
LifeMiles Ltd. [Member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 30.00% | ||
Current assets | $ 52,807 | ||
Non-current assets | 20,168 | ||
Current liabilities | (94,047) | ||
Non-current liabilities | (172,582) | ||
Total assets | (193,654) | ||
(Loss) profit | 26,829 | ||
Other comprehensive income | $ (163) | ||
Taca International Airlines S.A. [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 3.17% | 3.17% | |
Current assets | $ 152,300 | $ 30,762 | |
Non-current assets | 405,380 | 14,113 | |
Current liabilities | (365,984) | (18,421) | |
Non-current liabilities | (179,468) | (37,848) | |
Total assets | 12,228 | (11,394) | |
(Loss) profit | (4,592) | (3,524) | |
Other comprehensive income | $ (307) | $ 7 | |
Avianca Costa Rica S.A. [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
NCI percentage | 7.58% | 7.58% | |
Current assets | $ 43,954 | $ 28,747 | |
Non-current assets | 53,669 | 5,470 | |
Current liabilities | (24,026) | (34,584) | |
Non-current liabilities | (3,760) | (806) | |
Total assets | 69,837 | (1,173) | |
(Loss) profit | (3,095) | (4,066) | |
Other comprehensive income | (1,141) | (25) | |
Other Individually Immaterial Subsidiaries [member] | Non-controlling interests [member] | |||
Disclosure of noncontrolling interests [line items] | |||
Current assets | 294,413 | 7,274 | |
Non-current assets | 3,494,626 | 5,345 | |
Current liabilities | (2,566,719) | (5,492) | |
Non-current liabilities | (1,317,552) | (3,072) | |
Total assets | (95,232) | 4,055 | |
(Loss) profit | 487 | 478 | |
Other comprehensive income | $ 2,035 | $ 3 |
Non-Controlling Interest - Addi
Non-Controlling Interest - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | |
Oct. 31, 2020 | Dec. 31, 2020 | |
AV Loyalty Cayman Limited [Member] | ||
Disclosure of detailed information about business combination [line items] | ||
Percentage of Ownership interests acquired | 10.10% | |
Life Miles Ltd [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Percentage of Ownership interests acquired | 19.90% | |
Percentage Of Purchase Option Of Remaining Ownership Interest | 10.10% | |
Cash transferred | $ 26,500 | |
Increase in accumulated losses attributable to the Group | $ (395,612) | |
Bottom of range [member] | Life Miles Ltd [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Percentage of Ownership interests acquired | 70.00% | |
Percentage of anticipated increase in Ownership interests stake | 89.90% | |
Top of range [member] | Life Miles Ltd [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Percentage of Ownership interests acquired | 89.90% | |
Percentage of anticipated increase in Ownership interests stake | 100.00% |
Non-Controlling Interest - Summ
Non-Controlling Interest - Summary of Transactions Related to Acquisition of Non Controlling Interest (Detail) - Life Miles Ltd [member] $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure of detailed information about business combination [line items] | |
Book value of the acquired non-controlling interest ($652,040*30%) | $ (195,612) |
Consideration paid of acquired non-controlling interest | (200,000) |
Increase in accumulated losses attributable to the Group | $ (395,612) |
Non-Controlling Interest - Su_2
Non-Controlling Interest - Summary of Transactions Related to Acquisition of Non Controlling Interest (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure of detailed information about business combination [abstract] | |
Book Value of the acquired non controlling Interest | $ 652,040 |
Percentage of voting equity interests acquired | 30.00% |
Losses per share - Schedule of
Losses per share - Schedule of Calculation of Basic Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | |||
Net loss attributable to Avianca Holdings S.A. | $ (1,086,935) | $ (913,712) | $ (24,803) |
Common Shares [member] | |||
Weighted average number of shares | |||
Number of shares | 660,800,000 | 660,800,000 | 660,800,000 |
Losses per share | |||
Number of per shares | $ (1.09) | $ (0.92) | $ (0.03) |
Preference shares [member] | |||
Weighted average number of shares | |||
Number of shares | 336,187,000 | 336,187,000 | 336,187,000 |
Losses per share | |||
Number of per shares | $ (1.09) | $ (0.92) | $ (0.03) |
Operating Revenue - Additional
Operating Revenue - Additional Information (Detail) - Customers | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 100.00% | 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 2020 and 2019. | ||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | $ 1,003,983 | $ 3,904,765 | $ 4,074,391 |
Cargo and mail | 707,602 | 716,731 | 816,439 |
Total | 1,711,585 | 4,621,496 | 4,890,830 |
Total operating revenues | $ 1,711,585 | $ 4,621,496 | $ 4,890,830 |
Total operating revenues | 100.00% | 100.00% | 100.00% |
Total operating revenues | $ (2,909,911) | $ (269,334) | |
Domestic [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 511,839 | 2,000,222 | $ 2,001,825 |
Cargo and mail | 294,312 | 285,802 | 303,343 |
Total | $ 806,151 | $ 2,286,024 | $ 2,305,168 |
Passenger | 30.00% | 43.00% | 41.00% |
Cargo and mail | 17.00% | 6.00% | 6.00% |
Total | 47.00% | 49.00% | 47.00% |
Passenger | $ (1,488,383) | $ (1,603) | |
Cargo and mail | 8,510 | (17,541) | |
Total | (1,479,873) | (19,144) | |
International [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Passenger | 492,144 | 1,904,542 | $ 2,072,566 |
Cargo and mail | 278,302 | 282,576 | 315,433 |
Total | $ 770,446 | $ 2,187,118 | $ 2,387,999 |
Passenger | 29.00% | 41.00% | 42.00% |
Cargo and mail | 16.00% | 6.00% | 7.00% |
Total | 45.00% | 47.00% | 49.00% |
Passenger | $ (1,412,398) | $ (168,024) | |
Cargo and mail | (4,274) | (32,857) | |
Total | (1,416,672) | (200,881) | |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other | $ 134,988 | $ 148,354 | $ 197,663 |
Other | 8.00% | 4.00% | 4.00% |
Other | $ (13,366) | $ (49,309) |
Operating Revenue - Summary o_2
Operating Revenue - Summary of Other Operating Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | $ 134,988 | $ 148,354 | $ 197,663 |
Frequent Flyer Program [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 48,207 | 40,794 | 46,376 |
Ground Operations [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 6,032 | 18,448 | 23,592 |
Leases [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 619 | 11,590 | 22,610 |
Maintenance [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 10,350 | 8,162 | 58,032 |
Interline [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 742 | 2,087 | 2,025 |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | $ 69,038 | $ 67,273 | $ 45,028 |
Operating Revenue - Summary O_3
Operating Revenue - Summary Of Significant Changes In Contract Assets And Contract Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of changes in trade receivables, contract assets and contract liabilities [abstract] | ||
Net of accounts receivable | $ 118,665 | $ 215,673 |
Prepaid compensation customers | 1,870 | 13,768 |
Air traffic responsibility | (399,184) | (337,363) |
Deferred frequent flyer income | $ (452,815) | $ (417,632) |
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, 2020 | Dec. 31, 2019 |
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 | $ 536 | |
Financial Liabilities At Fair Value Through Other Comprehensive Income | $ 2,697 | 1,241 |
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 | 525 | |
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 | 11 | |
Financial Liabilities At Fair Value Through Other Comprehensive Income | $ 2,697 | $ 1,241 |
Derivatives Recognized as Hed_4
Derivatives Recognized as Hedging Instruments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)gal | Dec. 31, 2018USD ($) | |
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 | $ | $ 474 | $ 3,932 | $ (13,701) |
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 | 6,792,000 |
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, 2020 | Dec. 31, 2019 |
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 | $ 536 | |
Financial Liabilities At Fair Value Through Other Comprehensive Income | $ 2,697 | 1,241 |
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 | 525 | |
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 | 11 | |
Financial Liabilities At Fair Value Through Other Comprehensive Income | 2,697 | 1,241 |
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 | 525 | |
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 | 11 | |
Financial Liabilities At Fair Value Through Other Comprehensive Income | $ 2,697 | $ 1,241 |
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] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets Liabilities at Fair Value through Profit or Loss | $ 0 | $ 48 |
Derivative Contracts of Interest Rate [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets Liabilities at Fair Value through Profit or Loss | $ 0 | $ 48 |
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, 2020 | Dec. 31, 2019 |
Assets Investments [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | $ 42,919 | $ 55,440 |
Assets Plan [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 216,548 | 204,527 |
Classification of Assets as Held for Sale [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 884 | 694,336 |
Derivative Instruments Assets [member] | Aircraft Fuel Hedges [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 525 | |
Derivative Instruments Assets [member] | Interest Rate Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 11 | |
Revalued Administrative Property [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Financial assets | 110,931 | 111,112 |
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 | 42,919 | 55,440 |
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 | 216,548 | 204,527 |
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 | 884 | 694,336 |
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 | 525 | |
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 | 11 | |
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 | $ 110,931 | $ 111,112 |
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, 2020 | Dec. 31, 2019 |
Interest Rate Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | $ 2,697 | $ 1,289 |
Short-term Borrowings and Long-term Debt [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | 6,275,788 | 5,454,688 |
Significant Observable Inputs (Level 2) [member] | Interest Rate Derivatives [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Financial liabilities | 2,697 | 1,289 |
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 | $ 6,275,788 | $ 5,454,688 |
Income tax expense and other _3
Income tax expense and other taxes - Summary of assets and liabilities for taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of income tax expense [abstract] | ||
Current income tax - assets | $ 44,681 | $ 99,973 |
Other current taxes | ||
Current VAT – assets | 36,403 | 90,955 |
Other taxes current | 30,701 | 7,791 |
Total other current taxes | 67,104 | 98,746 |
Total current tax - assets | 111,785 | 198,719 |
Non-current income tax – assets | 1 | |
Total tax - assets | 111,785 | 198,720 |
Current income tax - liabilities | $ (54,738) | $ (26,421) |
Income tax expense and other _4
Income tax expense and other taxes - Schedule of components of income tax expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax: | |||
Current income tax charge | $ 54,738 | $ 25,171 | $ 24,208 |
Changes in estimates related to prior years | (3,731) | 1,304 | 2,943 |
Deferred tax expense: | |||
Relating to origination and reversal of temporary differences | 53 | (2,492) | (6,938) |
Income tax expense reported in the income statement | $ 49,431 | $ 23,983 | $ 20,213 |
Income tax expense and other _5
Income tax expense and other taxes - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)Aircraft | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure Of Income Tax Expense [line items] | |||
Income tax rate | 32.00% | 33.00% | 37.00% |
Temporary difference recognize deferred tax | $ 99,000 | $ 71,000 | |
Tax losses | $ 76,000 | ||
Threshold taxable under statute | Aircraft | 120,000 | ||
(Loss) Profit before income tax | $ (1,044,704) | (870,012) | $ 21,356 |
Income tax expense reported in the income statement | $ 49,431 | $ 23,983 | $ 20,213 |
Effective tax rate | (5.00%) | (3.00%) | 95.00% |
Audit Benefit [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Threshold income tax | $ 2,528,097 | ||
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] | |||
Income tax and corporate complementary rates | 30.00% | ||
El Salvador [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% | ||
Dividends [member] | Companies [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Withholding rate | 7.50% | ||
Normalization Tax [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax rate | 15.00% | ||
Percentage of reduction of base tax due to repatriated of normalized assets | 50.00% | ||
Tax year 2020 [member] | Colombia [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Percentage of equity value of the assets repatriated | 50.00% | ||
Tax year 2020 [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Presumptive tax rate | 0.50% | ||
Tax year 2021 [member] | Tax reform [member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Presumptive tax rate | 0.00% | ||
Bottom of Range [member] | Audit Benefit [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Percentage of increase in income tax | 20.00% | ||
Duration of finalization of income tax return | 6 months | ||
Bottom of Range [member] | Dividends [member] | Residential Natural Person [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax rate | 15.00% | ||
Bottom of Range [member] | Dividends [member] | Nonresidential natural and legal person [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax rate | 7.50% | ||
Top of Range [member] | Audit Benefit [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Percentage of increase in income tax | 30.00% | ||
Duration of finalization of income tax return | 12 months | ||
Top of Range [member] | Dividends [member] | Residential Natural Person [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax rate | 10.00% | ||
Top of Range [member] | Dividends [member] | Nonresidential natural and legal person [Member] | |||
Disclosure Of Income Tax Expense [line items] | |||
Income tax rate | 10.00% |
Income tax expense and other _6
Income tax expense and other taxes - Income tax rate for taxable (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Income Tax Rate [Line Items] | |||
Income tax rate | 32.00% | 33.00% | 37.00% |
Year 2020 [Member] | |||
Disclosure of Income Tax Rate [Line Items] | |||
Income tax rate | 32.00% | ||
Year 2021 [Member] | |||
Disclosure of Income Tax Rate [Line Items] | |||
Income tax rate | 31.00% | ||
Year 2022 And Next [Member] | |||
Disclosure of Income Tax Rate [Line Items] | |||
Income tax rate | 30.00% | ||
Financial Entities [Member] | Year 2020 [Member] | |||
Disclosure of Income Tax Rate [Line Items] | |||
Income tax rate | 36.00% | ||
Financial Entities [Member] | Year 2021 [Member] | |||
Disclosure of Income Tax Rate [Line Items] | |||
Income tax rate | 34.00% | ||
Financial Entities [Member] | Year 2022 And Next [Member] | |||
Disclosure of Income Tax Rate [Line Items] | |||
Income tax rate | 33.00% |
Income tax expense and other _7
Income tax expense and other taxes - Schedule of reconciliation between tax expense and the product (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of income tax expense [abstract] | |||
Income tax at Colombian statutory rate | 32.00% | 33.00% | 37.00% |
Productive fixed assets special deduction | 0.00% | 0.00% | (268.00%) |
Permanent differences | (19.00%) | (16.00%) | (390.80%) |
Non-deductible taxes | 0.00% | 0.00% | 16.00% |
Effect of tax exemptions and tax rates in foreign jurisdictions | (7.00%) | (11.00%) | 1191.20% |
Non recognized deferred tax assets | (11.00%) | (9.00%) | (544.90%) |
Prior year adjustments | 0.00% | 0.00% | (5.80%) |
Changes in tax rates | 0.00% | 0.00% | 59.90% |
Effective tax rate | (5.00%) | (3.00%) | 95.00% |
Net (loss) profit for the year | $ (1,094,135) | $ (893,995) | $ 1,143 |
Total, income tax expense | 49,431 | 23,983 | 20,213 |
(Loss) Profit before income tax | (1,044,704) | (870,012) | 21,356 |
Income tax at Colombian statutory rate | (334,305) | (287,104) | 7,902 |
Productive fixed assets special deduction | (57,229) | ||
Permanent differences (1) | 195,061 | 136,798 | (83,458) |
Non-deductible taxes | (167) | 3,413 | |
Effect of tax exemptions, tax rates and exchange rates in foreign jurisdictions | 75,132 | 91,570 | 254,391 |
Non recognized deferred tax assets | 115,817 | 82,362 | (116,362) |
Prior year adjustments | (2,114) | (36) | (1,245) |
Changes in tax rates | $ (160) | $ 560 | $ 12,801 |
Income tax expense and other _8
Income tax expense and other taxes - Disclosure of Detailed Information For Tax Losses Originated Explanatory (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure of Tax Losses [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | $ 253,249 |
Tax year 2017 [Member] | |
Disclosure of Tax Losses [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | 87,569 |
Tax year 2018 [Member] | |
Disclosure of Tax Losses [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | 86,630 |
Tax year 2019 [Member] | |
Disclosure of Tax Losses [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | 51,849 |
Tax year 2020 [Member] | |
Disclosure of Tax Losses [Line Items] | |
Unused tax losses for which no deferred tax asset recognised | $ 27,201 |
Income tax expense and other _9
Income tax expense and other taxes - Schedule of excess of presumptive income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of excess of presumptive income [Line Items] | |
Excess of presumptive income tax | $ 1,590 |
Year 2017 [Member] | |
Disclosure of excess of presumptive income [Line Items] | |
Excess of presumptive income tax | 1,250 |
Year 2018 [Member] | |
Disclosure of excess of presumptive income [Line Items] | |
Excess of presumptive income tax | $ 340 |
Income tax expense and other_10
Income tax expense and other taxes - Summary of Analysis of the Company's Deferred Tax Assets and Liabilities - Consolidated Statement of Financial Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | $ 11,314 | $ 8,695 | $ 6,136 |
Accounts payables [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 461 | 39,904 | |
Aircraft maintenance [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 909 | (3,691) | |
Pension liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 10,477 | 10,599 | |
Provisions [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 96,151 | 24,330 | |
Loss Carry Forwards [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 5,333 | ||
Unrecognized deferred tax asset [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (43,099) | ||
Non monetary items [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (51,621) | (36,626) | |
Intangible asset [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (304) | 1,159 | |
Other assets and liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (1,660) | $ (32,313) | |
Variation [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 2,619 | ||
Variation [member] | Accounts payables [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (39,443) | ||
Variation [member] | Aircraft maintenance [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 4,600 | ||
Variation [member] | Pension liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (122) | ||
Variation [member] | Provisions [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | 71,821 | ||
Variation [member] | Loss Carry Forwards [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (5,333) | ||
Variation [member] | Unrecognized deferred tax asset [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (43,099) | ||
Variation [member] | Non monetary items [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (14,995) | ||
Variation [member] | Intangible asset [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | (1,463) | ||
Variation [member] | Other assets and liabilities [member] | |||
Disclosure of assets and liabilities with significant risk of material adjustment [line items] | |||
Deferred tax assets(liabilities) | $ 30,653 |
Income tax expense and other_11
Income tax expense and other taxes - Summary of Analysis of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets and liabilities [abstract] | |||
Deferred tax assets | $ 25,236 | $ 27,166 | |
Deferred tax liabilities | (13,922) | (18,471) | |
Deferred tax assets (liabilities) net | $ 11,314 | $ 8,695 | $ 6,136 |
Income tax expense and other_12
Income tax expense and other taxes - Reconciliation of Deferred Tax Assets Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets and liabilities [abstract] | ||
Beginning balance | $ 8,695 | $ 6,136 |
Tax income during the period recognized in profit or loss | (53) | 2,492 |
Tax income during the period recognized in other comprehensive income | (818) | 441 |
Exchange differences | 3,490 | (374) |
Ending balance | $ 11,314 | $ 8,695 |
Income tax expense and other_13
Income tax expense and other taxes - Disclosure of Detailed Information Of Effect Of Deferred Tax On Each Component of The Other Comprehensive Income Account (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss [abstract] | |||
Reserves related to actuarial gains and losses | $ (818) | $ 441 | $ (39) |
Income tax recorded directly in other comprehensive income | $ (818) | $ 441 | $ (39) |
Provisions for legal claims - S
Provisions for legal claims - Schedule of provisions for litigation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [line items] | ||
Balances at beginning of year | $ 144,388 | |
Balances at end of year | 160,839 | $ 144,388 |
Legal proceedings provision [member] | ||
Disclosure of other provisions [line items] | ||
Balances at beginning of year | 20,244 | 7,809 |
Provisions constituted | 11,215 | 21,208 |
Provisions reverse | (3,660) | (6,537) |
Provisions used | (453) | (2,236) |
Deconsolidation subsidiary AV Perú | (4,032) | 0 |
Balances at end of year | $ 23,314 | $ 20,244 |
Provisions for legal claims - A
Provisions for legal claims - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of other provisions [line items] | ||
Contingent obligations | $ 138,357 | $ 206,382 |
Unsettled contingent obligations | 21,242 | 28,174 |
Labor [member] | ||
Disclosure of other provisions [line items] | ||
Contingent obligations | 13,329 | 6,413 |
Consumer protection [member] | ||
Disclosure of other provisions [line items] | ||
Contingent obligations | 2,620 | 4,101 |
Civil [member] | ||
Disclosure of other provisions [line items] | ||
Contingent obligations | $ 771 | $ 766 |
Future Aircraft Leases Paymen_3
Future Aircraft Leases Payments - Additional Information (Detail) - Aircraft | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of aircraft | 146 | 171 |
Number of engines | 9 | |
Description of leases | In June 2020, the Group terminated operating leases on two (2) A319s and two (2) A320s and finance leases on two (2) A321s, two (2) A330s and four (4) ATR72s. | |
Description of rejection under Chapter 11 Leases | As of December 31, 2020, the Group rejected under Chapter 11 leases for three (3) engines with future commitments, of which two (2) engines are from the A320 fleet and one (1) engine is from the E190 Fleet. At the end of 2020, the termination documents for these leases were in the process of being signed, which would formalize the departure of the engines from Avianca Holdings S.A. fleet. | |
Description of termination of lease agreements and expiration of wet lease agreement | In the first quarter of 2020, the Group terminated the lease agreements of two (2) Embraer E-190s with Aerolitoral, S.A. de C.V. and ended the wet lease agreement of one (1) A330. | |
Number of rejected leases for aircrafts | 3 | |
Aircraft 75 [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of aircraft | 75 | |
Aircraft 62 [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of aircraft | 62 | |
Average lease term | 59 months | |
Embraer E190 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of lease agreements terminated | 2 | |
Number of leases sold | 10 | |
Number of rejected leases for aircrafts | 1 | |
A300 [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of leases sold | 2 | |
A-320 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of leases converted from finance lease to operating lease | 9 | |
Number of rejected leases for aircrafts | 2 | |
A-330 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of wet lease agreement expired | 1 |
Future Aircraft Leases Paymen_4
Future Aircraft Leases Payments - Schedule of Aircraft Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Aircraft 75 [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | $ 1,883,281 |
Aircraft 75 [member] | Year one [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | 1,883,281 |
Aircraft 62 [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | 1,381,032 |
Aircraft 62 [member] | Year one [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | 274,167 |
Aircraft 62 [member] | Between one and five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | 824,391 |
Aircraft 62 [member] | More than five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future financial lease commitments | $ 282,474 |
Future Aircraft Leases Paymen_5
Future Aircraft Leases Payments - Schedule of Seven Spare Engines Under Operating Leases (Detail) - Aircraft Engine 9 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | $ 23,346 |
Year one [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 4,789 |
Between one and five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | 17,856 |
More than five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Future commitments of operating leases | $ 701 |
Future Aircraft Leases Paymen_6
Future Aircraft Leases Payments - Expenses of Amount Recognized Payments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Leases minimum payments | $ 3,398 | $ 11,762 |
Acquisition of aircraft - Sched
Acquisition of aircraft - Schedule of future commitments related to aircraft acquisition (Detail) - Aircraft And Engines [Member] $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure of fair value measurement of assets [line items] | |
Aircraft acquisition commitments | $ 5,693,943 |
Less than one year [member] | |
Disclosure of fair value measurement of assets [line items] | |
Aircraft acquisition commitments | 21,175 |
1-3 years [member] | |
Disclosure of fair value measurement of assets [line items] | |
Aircraft acquisition commitments | 126,212 |
3-5 years [member] | |
Disclosure of fair value measurement of assets [line items] | |
Aircraft acquisition commitments | 1,629,460 |
More than 5 years [member] | |
Disclosure of fair value measurement of assets [line items] | |
Aircraft acquisition commitments | $ 3,917,096 |
Dividends - Summary of Payment
Dividends - Summary of Payment of Dividends (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Dividends [abstract] | ||
Dividend - Ordinary shared | $ 0 | $ 9,862 |
Dividend - Preferred shared | 5,523 | |
Total | $ 0 | $ 15,385 |
Dividends - Additional Informat
Dividends - Additional Information (Detail) $ / shares in Units, $ in Thousands | Sep. 20, 2019$ / shares | Aug. 23, 2019$ / shares | May 24, 2019$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018$ / shares |
Disclosure of Dividends [line items] | ||||||||
Dividend | $ | $ 51,385 | $ 97,604 | ||||||
Preference shares [member] | ||||||||
Disclosure of Dividends [line items] | ||||||||
Dividends per share | $ 18 | $ 16 | $ 16 | $ 50 | ||||
Dividend Per share For Preferred Share Holders | 18 | 16 | 16 | 50 | ||||
Common Shares [member] | ||||||||
Disclosure of Dividends [line items] | ||||||||
Dividends per share | 40 | 3 | 3 | |||||
Dividend Per share For Preferred Share Holders | $ 40 | $ 3 | $ 3 | |||||
Dividend Per share For Common Stock Holders | $ 46 | |||||||
TRM [member] | ||||||||
Disclosure of Dividends [line items] | ||||||||
Dividend | $ | $ 3,082.45 | |||||||
Life Miles Ltd [member] | ||||||||
Disclosure of Dividends [line items] | ||||||||
Dividend | $ | $ 0 | $ 36,000 |
Debt Covenants - Additional Inf
Debt Covenants - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of debt [line items] | ||
Minimum liquidity covenant | $ 400,000 | |
Cash | 881,617 | $ 339,010 |
DIP Credit Agreement [Member] | Avianca Holdings SA [Member] | ||
Disclosure of debt [line items] | ||
Actual cumulative cash burn of loan | 140,901 | |
Top of range [member] | DIP Credit Agreement [Member] | Avianca Holdings SA [Member] | ||
Disclosure of debt [line items] | ||
Maximum cumulative cash burn of loan | 395,400 | |
Minimum [Member] | ||
Disclosure of debt [line items] | ||
Cash | $ 400,000 |
Special Charges - Additional In
Special Charges - Additional Information (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Disclosure of special charges [Line Items] | |
Special charges incurred in relation to the voluntary petition | $ 66,652 |