ACES enjoys bright 2000

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Colombian carrier ACES has significantly increased its market share and posted a profit for 2000, in contrast to the financial difficulties of its planned merger partner Avianca.

Despite increased costs of 35% during 2000, largely stemming from rising fuel prices, currency devaluation and an inflation rate of nearly 9%, ACES managed to post a positive operating income of COP2.7 billion ($1.2 million).

On top of operating revenues of $192 million, the sale of aircraft also enabled ACES to generate additional earnings of $1.8 million to cover its non-operating costs and taxes. Consequently, the carrier posted a net income of $2.1 million compared with a net loss of $1.9 million in 1999.

During the year ACES’ revenue passenger kilometre (RPK) traffic increased by over 14% against extra available seat kilometre (ASK) capacity of 8.4%. This improved load factors by almost three percentage points, from 55.8% to 58.7%.

ACES recorded a 13.4% increase in domestic passenger numbers for 2000, helping to increase its market share from 24.9% to 28.8%. Similarly, a 20% growth in passengers on international services helped ACES increase its market share from 7.8% to 9.1%, while freight transport grew 15% over the year.

Earlier this year ACES and fellow Colombian carrier Avianca signed a memorandum of understanding to pursue a merger, while retaining the brands of both carriers and also that of Avianca’s regional affiliate SAM Colombia.