Avianca’s performance on its major market
Avianca Holdings S.A. is currently based in Panama with subsidiaries in several Latin American countries. Colombia, however, remains its largest market. In 2020, more than one-third of the company’s revenue and over 70 percent of its employees were in the country alone. That same year, Avianca accounted for over 45 percent of the domestic passenger traffic in Colombia, which more than doubles the share of its major competitor LATAM Airlines.In the cargo segment, Avianca is one of Colombia’s major players, representing nearly 17 percent of the domestic air freight transported in the South American country in 2020. Avianca carried 535 thousand metric tons of cargo that same year, including both international and domestic cargo. Though this figure shows the smallest amount since at least 2014, the severity of the COVID-19 effects on this segment is way below the impact on its passenger transportation.
The expansion of Avianca’s loyalty program
Contrary to the cargo and passenger traffic, the number of Avianca frequent travelers continued the steady growth recorded in recent years. The loyalty program by the name LifeMiles was first introduced in 2011 and has become nowadays one of the most popular airline loyalty programs in Latin America. In the period between January 2015 and May 2021, LifeMiles was the third most downloaded app among Latin American frequent flyer program apps. As a Star Alliance member, the largest airline alliance worldwide, LifeMiles members also benefit from partner airlines’ awards and discounts.
