Moody’s recently reported upgrading Avianca and LifeMiles’ ratings from B3 to B2, thanks to solid business plan execution after emerging from Chapter 11 restructuring with a strengthened capital structure and lower costs, as well as a change in its business model.

The credit rating agency stated that the B2 CFR rating continues to reflect the company’s leadership position in Latin America and its favorable cost structure, highlighting that, in the third quarter of 2023, the company reported an EBITDAR that exceeded projections by $63.7 million.

The stable outlook reflects Moody’s expectation that Avianca’s credit metrics will continue to strengthen given recently added aircraft and capacity increases, with liquidity to remain strong over the next 12-18 months, and while maintaining a conservative approach towards liquidity, cost management and capacity.