July 1 (Reuters) – Avianca Group, the company behind Colombia’s national airline, plans to secretly file for an Initial Public Offering (IPO) in the United States, it announced on Monday.
Founded in 1919, the Bogotá-based airline is moving forward with its IPO over two years after emerging from bankruptcy.
Avianca, which flies in Colombia, Ecuador, and Central America, was among several major Latin American airlines that went bankrupt during the pandemic due to a drop in travel demand.
The airline filed for Chapter 11 bankruptcy in May 2020 after missing a bond payment and came out of bankruptcy in December 2021.
In May 2022, Avianca joined forces with Brazilian airline Gol under the new Abra Group.
Avianca said the IPO’s timing and completion depend on market conditions.
As the world’s second-oldest operating airline, Avianca reported a profit of $13 million in the first quarter, transporting 9.3 million passengers—a 37.5% increase from the previous year.
In the same period, Avianca’s total revenue rose to $1.27 billion from $1.09 billion a year earlier.
As of late June, Avianca had 147 Airbus 320 and Boeing 787 Dreamliner planes.
The airline operates 150 routes, connecting over 76 destinations in 26 countries across the Americas and Europe.
Avianca is following other Latin American airlines looking to access the larger capital and higher valuations of U.S. markets.
Earlier this year, Mexico City-based Aeroméxico also filed for an IPO in New York, while Chile’s LATAM Airlines is working on re-listing its shares on the New York Stock Exchange.
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