Avianca Holdings S.A. 2Q 2013 Earnings Results

Avianca Holdings S.A. 2Q 2013 Earnings Results

2 Disclaimer This presentation contains certain forward-looking statements. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to the Company s business, financial results, trends, strategy and projections, and are based on assumptions, data or methods which, although considered reasonable by the Company, may turn out to be incorrect, or may not be possible to realize. The Company gives no assurance that expectations disclosed in this presentation will be confirmed. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements, due to a variety of factors. The Company specifically disclaims any obligation to update any forward-looking statements, which speak only for the date they are made.

2013 Industry Highlights Environment Capacity worldwide, measured in ASK's, grew 3.9% during the first half of 2013 when compared to the same period in 2012, while traffic (RPK s) increased 4.8%. As a result, load factor for the industry increased to 79.0%, up 0.8 pp when compared to the same period in 2012 During the first half of 2013 international air travel traffic (RPK s) in Latin America grew well above the global pace at 8.7%, supported from strong business travel demand During the first semester of 2013, the number of passengers carried in Latin America grew 6.7% when compared to the same period in 2012. Capacity, measured in ASK s, increased 5.5% while traffic measured in RPK s increased 7.0%. As a result the load factor increased to 76.2% from 75.1% in the same period last year During the first half of 2013, the global freight business experienced a stabilization in the number of tons shipped of 0.1%, while Latin America maintained a stable growth trend of 1.6%. Fuel Prices Fuel prices decreased on average 4.6% in the first half of 2013 while for the second quarter of this year prices decreased 6.5% over the same period in 2012 Exchange Rate The Colombian peso experienced, during the first half of 2013, a depreciation of nearly 9.1%. For the second quarter of this year the peso depreciated 5.3% over the same period in 2012 Source: ALTA & IATA 3

2Q 2013 Results Highlights In the second quarter of 2013 AVIANCA HOLDINGS reached a Net income of USD$ 70.3 million Operating revenues reached USD $ 1.1 billion, an increase of approximately 7.6% over the same period of 2012 Operating income (EBIT) for 2Q 2013 was USD $ 35.3 million, an increase of USD$ 23.1 million over the same period of last year. Consequently operating margin increased to 3.2%, up from 1.2% in 2Q 2012 EBITDAR came in at USD $ 144.1 million, a 30.8% increase over the same period of last year. EBITDAR Margin for the quarter rose to 13.0% increasing 2.3 pp over the same period of 2012 The cost per available seat kilometer excluding fuel costs (CASK ex Fuel) decreased 0.5% versus the same period of 2012 Capacity measured in ASK s increased 8.7%, while passenger traffic measured in RPK s rose 9.3%, outpacing Latin America and worldwide traffic growth. As a result, the load factor for the quarter increased to 78.2% from 77.7% in the previous year Passengers carried reached 5.9 million, increasing 9.6% over the same period of 2012. 4

2Q 2013 Earnings Results Summary (USD$ Millions) 2Q 2012 2Q 2013 % Var 2Q 2013 % VAR 2Q 2013 (Ex-Items)* 1H 2012 1H 2013 % VAR 1H 2013 % VAR 1H 2013 (Ex-Items)* Total Operating Revenues 1,027.0 1,105.1 7.6% 7.6% 2,078.7 2,223.1 6.9% 6.9% Passenger 856.3 906.0 5.8% 5.8% 1,738.0 1,843.6 6.1% 6.1% Cargo and other 170.8 199.1 16.6% 16.6% 340.7 379.6 11.4% 11.4% * Total operating expenses 1,014.9 1,069.9 5.4% 4.7% 1,984.9 2,085.1 5.1% 4.2% Expenses Excluding Fuel 700.7 757.5 8.1% 7.1% 1,345.0 1,432.9 6.5% 5.3% Aircraft fuel 314.2 312.4-0.6% -0.6% 639.9 652.2 1.9% 1.9% EBIT 12.2 35.3 +100% +100% 93.9 138.0 47.0% 74.2% EBIT Margin 1.2% 3.2% +2 pp +2.64 pp 4.5% 6.2% +1.69 pp +2.45 pp Net Income -44.8 70.3 +100% +100% -45.7 147.5 +100% +100% Net Margin -4.4% 6.4% +10.7 pp +9.8 pp -2.20% 6.64% +8.83 pp +8.83 pp EBITDAR 110.2 144.1 30.8% 38.2% 289.8 344.9 19.0% 25.7% EBITDAR Margin 10.7% 13.0% +2.3 pp +2.9 pp 13.9% 15.5% +1.57 pp +2.33 pp Ex-Items: Excluding Gain/Loss on sale of property and equipment EBIT = Operating Income, EBITDAR = earnings before interest, tax, depreciation, amortization and aircraft rentals Avianca Holdings consolidated operating revenues increased by 7.6%, leveraged by a strong growth 9.6% in passengers carried Total Operating Revenues grew 7.6% while Total Operating expenses grew 5.4%. Excluding special items Total Operating expenses increased only 4.7% Operating profit grew by USD$ 23 million over the same period of 2012, while operating margin increased by 2.2 pp reaching 6.2% Net income for the second quarter of 2012 includes a foreign exchange loss of USD$ 27.3 million and net income for the same period in 2013 includes a profit of USD$ 71.2 million profit 5

2Q 2013 Earnings Results Total Costs Highlights (Numbers expressed in million of USD$) Excluding special items total costs increased in USD $48.3 Million +4.7% 8.03 6.78 6.10 6.03 4.74 1,069.9 3.49 0.75-1.87-1.89 2.93 1,066.9 16.11 1,014.8 3.80 1,018.7 *Ex-Items: Excluding Gain/Loss on sale of property and equipment Others Include: Air Traffic & Flight Operation 6

2Q 2013 Earnings Results EBITDA Highlights (Numbers expressed in million of USD$) Excluding special items EBITDA increased in USD$ 34.5 Million +91.3% 28.30 1.89 1.87 16.10 8.00 49.70 6.78 6.09 6.03 3.49 0.75 72.42 2.93 69.49 41.70-3.80 37.90 7

2Q 2013 Cash Balance AVH En Cash el 4T Position 2012 se highlights tuvieron the los following variations siguientes for the movimientos 2 nd Q13: de caja: 511 13.4% 466 10.9% 425 9.8% * 630 14.3% Variations Concepto US$ Millions Net Generación Financing de Activities caja operativa 295 128.8 Operating Pago de Pensiones Cash Flow 81 (8.5) Asset Pago Sales de Intereses (18.1) 13 Interests Pago de PDP's (17) (40.1) Pago de deuda (56.1) Others (19) Otros (39.6) PDP's (32) Total (33.6) Dividend Payments (37) Debt Payments (79) Adicionalmente, Total la compañía a 205 Septiembre de 2012 contaba con: US$ Millones 2011 2012 1Q-2013 2Q-2013 Cash US$MM Cash/Revenue LTM US$MM AVH has made Concepto the following cash US$ deposits: Millones Depósitos para compra de flota 266.5 Depósito para Deposits mantenimiento aeronavesus$ 151.4 Millions PDP's Depósito para arrendamiento aeronaves 359.5 106.2 Maintenance Reserves Total 161.5 524.1 Security Deposits for Operating Leases 37.1 Total 558.1 * Cash and Cash equivalents under IFRS standards expressed in USD$ Millions 8

9 2Q 2013 Fuel Hedging Strategy 50% 40% 30% 20% 10% 0% 47% 14% 15% 33% 31% 46% 43% FUEL HEDGE (% Consumption) 17% 25% 14% 17% 1% 1% 1% 1% 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 31% H.O SWAP H.O CALL OPT INSTRUMENT 3Q -13 4Q -13 1Q -14 2Q -14 3Q -14 4Q -14 H.O SWAP (USD) 2,887 2,909 2,921 2,892 2,799 2,790 H.O CALL OPT (USD) 2,933 3,010 2,981 2,854 0 0 * Hedge in Heating Oil During the second quarter of 2013 realized hedge losses summed up to USD$ 1.0 million, which accounted for 27% of the gallons hedged. Hedged 164 million gallons, approximately 31% of the expected volume to be consumed over the next 12 months The average hedge price per gallon stands at USD$ 2.92 / gallon

2Q 2013 Passenger Business Highlights Capacity (ASK s millions) Traffic (RPK s millions) Load Factor Capacity (ASK s millions) Traffic RPK s (millions) Load Factor 8.7% 9,506 9.3% 7,435 0.5 pp 78.2% 8,748 6,801 77.7% Yield (USD$)* RASK (USD$) CASK - Exfuel (USD$) Yield (USD$) TRASK (USD$) CASK* - Exfuel (USD$) 12.6-3.2% -1.0% 12.2 11.7 11.6 8.01-0,5% 7.97 2Q 2012 2Q 2013 *Accounting Cask includes all business segments (Passenger, Cargo & Other) QoQ Total CASK decreased 3.0% 10

Diversified Capacity Growth International Network Domestic Network Colombia Peru - Ecuador Regional Network Central America Bucaraman ga Waspan 3 HUBS Bogota San Salvador Lima Pereira Armenia Ibague Tamarindo Sluna Bonanza Rosita Puerto Cabezas Corn Island Blue Field San Carlos San Juan del Norte La Fortuna/Arenal 3 Complementary Focus Cities San Jose Quito Guayaquil Map Conventions Avianca routes Destinations HUBS Complementary Focus Cities North America South America Europe (Spain) +1.05% +0.41% +22.8% Guayaquil Map Map Conventions Avianca,Taca, Aerogal routes Destinations HUBS Complementary Focus Cities Domestic Intra Home Markets 18.7% 17.8% La Paz Santa Cruz de la Sierra Map Conventions Taca Regional routes Destinations HUBS Complementary Focus Cities CAM & CAR Tambor Quepos/Manuel Antonio Palmar Sur Bahía Draka Puerto Jimenez Golfito +4.4% Total ASK Growth 8.7% 11

Diversified Traffic Growth International Network Domestic Network Colombia Peru - Ecuador Regional Network Central America Bucaraman ga Waspan 3 HUBS Bogota San Salvador Lima Pereira Armenia Ibague Tamarindo Sluna Bonanza Rosita Puerto Cabezas Corn Island Blue Field San Carlos San Juan del Norte La Fortuna/Arenal 3 Complementary Focus Cities San Jose Quito Guayaquil Map Conventions Avianca routes Destinations HUBS Complementary Focus Cities North America South America Europe (Spain) +2.8% +7.8% +18.3% Guayaquil Map Map Conventions Avianca,Taca, Aerogal routes Destinations HUBS Complementary Focus Cities Domestic Intra Home Markets +13.5% +14.9% La Paz Santa Cruz de la Sierra Map Conventions Taca Regional routes Destinations HUBS Complementary Focus Cities CAM & CAR Tambor Quepos/Manuel Antonio Palmar Sur Bahía Draka Puerto Jimenez Golfito +8.85% Total RPK Growth 9.3% 12

Network optimization International Network Domestic Network Colombia Peru - Ecuador Regional Network Central America Bucaraman ga Waspan 3 HUBS Bogota San Salvador Lima Pereira Armenia Ibague Tamarindo Sluna Bonanza Rosita Puerto Cabezas Corn Island Blue Field San Carlos San Juan del Norte La Fortuna/Arenal 3 Complementary Focus Cities San Jose Quito Guayaquil Map Conventions Avianca routes Destinations HUBS Complementary Focus Cities North America South America Europe (Spain) 82.8% 76.0% 87.5% Guayaquil Map Map Conventions Avianca,Taca, Aerogal routes Destinations HUBS Complementary Focus Cities Domestic Intra Home Markets 75.3% 68.7% La Paz Santa Cruz de la Sierra Map Conventions Taca Regional routes Destinations HUBS Complementary Focus Cities CAM & CAR Tambor Quepos/Manuel Antonio Palmar Sur Bahía Draka Puerto Jimenez Golfito 71.5% Total LF Growth 78.2% 13

14 Diversified Passenger Growth 165.744 131.188 294.626 485.937 510.760 468.297 + 9.6% 2Q 2012 Vs 2Q 2013 Pax Growth Domestic Colombia 14,7% North America 3,91% CAM/CAR 5,86% South America 6,02% Intra Home Markets 13,08% Domestic Peru 23,68% Domestic Ecuador -34,38% Europe 20,41% 847.760 3.027.120

A market leader in the Andean Region and Central America Domestic Market Share by Country 60,21% 55,48% 2Q 2012 2Q 2013 29,88% 20,81% 12,90% 15,12%* *Data as of March 30th 2013 Colombia Peru Ecuador Sustained leadership in the Colombian Domestic Market with a 55.48% market share as of June 30 th 2013 During the first semester of 2013 the Colombian domestic market grew by more than 25% in number of passengers 15

16 A market leader in the Andean Region and Central America Internacional Markets Share by Region The integration of Avianca Holdings route network has consolidated the company's leadership and passenger traffic between its home markets, generating significant connectivity in the Americas. This has enabled: An increase in passenger traffic in domestic markets Enhanced service from our home markets to international destinations To efficiently occupy the capacity incorporated in the different markets Offer a wider choice of possibilities to connect two destinations in the region 68,75% 68,22% 44,48% 43,14% 2Q 2012 28,09% 27,40% 29,48% 30,83% 2Q 2013 Home Markets Home Markets to NAM Home Markets to SAM Home Markets to Spain

2Q Cargo Business Highlights Capacity (ATK s Thousands) Capacity (ATK s Thousands) 10.9% Shipped Tons Tons Shipped 6.9% 237,756 263,785 60,365 66,330 Load Factor 4.1pp Average Fare ($USD) (USD$) -11.6% 67.9% 63.8% 1.10 0,98 1Q 2012 1Q 2013 As the company implements its cargo fleet renovation plan it will reorganize and optimize its current cargo network. As the company does not do segment reporting; it is assumed that due to the increase in capacity the CATK has been reduced during the first half of 2013 17

2Q 2013 Highlights FLEET NETWORK In Line with the fleet renewal plan, the company continues to incorporate new aircraft to its operation: 2 A320 equipped with sharklets During the second quarter the company took delivery of the first ATR 72 MILESTONES Increased frequencies from and to the Bogota hub as part of the network optimization plan on the following routes: 1F BOGSMR 7F BOGRCH 14F BOGCTG 6F BGAMDE 7F BAQBOG 4F BOGMAD 14F BOGCLO 3F BOGPUJ 10F BOGMDE 1F BOGHAV 4F BOGCUC 3F BOGGYE Implemented the second frequency to Madrid (Spain) from the Bogota Hub. During the second quarter of 2012 the company launched its single commercial brand: Avianca Avianca S.A was recognized by Skytrax as the airline with the best onboard and airport service in South America LifeMiles was chosen as the Frequent Flyer Program with the Best Redemption Ability in the Americas, by one of the most recognized awards in the industry: the Freddie Awards. 18

19 In Summary During the second quarter the company has continued with its leadership and consolidation strategy in Latin America The company continues to expand its passenger network, while outperforming the growth in traffic in Latin America and worldwide The cost reducing initiatives implemented so far have resulted into relevant margin expansion : Operating income increasing by USD$ 23.1 million over the same quarter of last year and USD$ 138.0 million over the first semester of 2012 Operating margin of 3.2%, up from 1.2% in 2Q 2012 and increasing to 6.2% in the first half 2013 over the same period last year EBITDAR Margin of 13.0% (+2.3 pp) and 15.5% (+1.6pp) in the first quarter and in the first half of 2013 over the same period of 2012 respectively

Outlook 2013 The results obtained on this second quarter are in line with the Companies full-year 2013 outlook PAX 10-12% ASK 8% - 10% LF 77% - 79% EBIT % 6.5% - 7.5% 20

Thank You 21