Corporate Presentation March 2018

Corporate Presentation March 2018

Disclaimer The material that follows comprises information about Avianca Holdings S.A. (the Company ) and its subsidiaries, as of the date of the presentation. It has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving legal, tax, investment or other advice to potential investors. The information presented or contained herein is in summary form and does not purport to be complete. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness of this information. Neither the Company nor any of its affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice, and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives makes any undertaking to update any such information subsequent to the date hereof. This presentation contains forward-looking statements, which are based upon the Company and/or its management s current expectations and projections about future events. When used in this presentation, the words believe, anticipate, intend, estimate, expect, should, may and similar expressions, or the negative of such words and expressions, are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. Additionally, all information, other than historical facts included in this presentation is forward-looking information. Such statements and information are subject to a number of risks, uncertainties and assumptions. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated due to many factors. As for forward-looking statements that relate to future financial results and other projections, actual results may be different due to the inherent uncertainty of estimates, forecasts and projections. Because of these uncertainties, potential investors should not rely on these forward-looking statements. Neither the Company nor any of its affiliates, directors, officers, agents or employees, nor any of the shareholders or initial purchasers shall be liable, in any event, before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. Certain data in this presentation was obtained from various external sources, and neither the Company nor its affiliates, advisers or representatives has verified such data with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives makes any representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. In addition to IFRS financials, this presentation includes certain non-ifrs financial measures, including Adjusted EBITDAR, which is commonly used in the airline industry to view operating results before depreciation, amortization and aircraft operating lease charges, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other asset acquisitions. However, Adjusted EBITDAR should not be considered as an alternative measure to operating profit, as an indicator of operating performance, as an alternative to operating cash flows or as a measure of the Company s liquidity. Adjusted EBITDAR as calculated by the Company and as presented in this document may differ materially from similarly titled measures reported by other companies due to differences in the way these measures are calculated. Adjusted EBITDAR has important limitations as an analytical tool and should not be considered in isolation from, or as a substitute for an analysis of, the Company s operating results as reported under IFRS. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company or this proposed offering. 2

Agenda 1 Company Overview and Track Record 2 Leading Airline in Latin America focused on service excellence 3 Strong Operational and Financial Performance 4 Diversified Sources of Revenue with Growing Non-Passenger Businesses 5 Strategic Projects and Full Year Outlook 3

Company Overview and Track Record

Successful Integration with Further Synergy Generation Potential Well-Defined Integration Plan Realized Revenue Synergies: $219MM Star Alliance Single Brand Single Commercial Code Single Web Page LifeMiles Maximization Ancillary Revenue Revenue Management Optimization Total Revenue 17: $4,625 MM 2017 2018 Total Revenue 10: $2,815MM (1) Single Management Team 2010 Single Loyalty Program 2011 Network & Commercial Integration 2012 Core Systems Migration 2013 Fleet Interchangeability 2014 ERP Intra Hub Connectivity 2015 2016 Single Operations Management Airport Optimization Model MRO and CEO (3) Cost Control Initiatives Potential Cost-Reduction Synergies: US$80MM Network / Fleet Optimization EBIT Margin: ~4.5% (2) 5.3% 6.6% 8.4% 6.2% 5.9% 7.2% 7.2% 6.0% -8.0% Shared Strengths and Values Complementary Fleet Experience operating widebody aircraft offers new opportunities for traffic from Central America and Lima Customer Service Approach Both airlines shared similar brand and customer strategies, providing a high standard of service Complementary Routes Complementary networks offer a unique growth proposition in Central and South America Only 2 routes overlapped before combination Great Talent Talent and commitment aligned with objectives and similar cultures 5 Source: Company. (1) Consolidated figures for the eleven months ended December 31, 2010. (2) Includes EBIT contribution of Avianca S.A. and GTH. (3) Maintenance, Repair and Overhaul providers ( MRO ) and Operational Excellence Center ( CEO ).

Leading Airline with Strategic Footprint in the Americas US$4,625 mm Total Revenues* in 2017 Geographic Footprint US$1,006 mm Total EBITDAR* in 2017 183 Aircraft Fleet (171 Passenger and 12 Freighter Aircraft (1) ) as of 3Q18. Average Jet Fleet Age of 6.6 Years as of Feb 2018. 3 Hubs: Bogota, San Salvador and Lima (NY008B8R) 684268_1.wor 100+ Destinations and 6,000+ Weekly Departures Leading Loyalty Coalition Program with 7.8+ mm Members Complementary Business Lines ~20% of Consolidated Revenues in 2017 Single commercial code Single Avianca brand Single website Interchangeability of aircraft Avianca Brasil (2) Colombia Domestic Intra-Home Markets (4) Home Markets to Spain #1 #1 #1 Courier 54.5% Market Share (3) 65.8% Market Share (3) 28.1% Market Share (3) 6 Source: Company, Aeronáutica Civil de Colombia, and internal data derived from Travelport Marketing Information Data Tapes ( MIDT ). Note: market shares based on number of passengers (1) 5 Airbus 330F, 5 Airbus 300F and 2 Boeing 767F (2) Brazilian operations reflect the code-share agreement with Oceanair ( Avianca Brasil ), including the licensing of the Avianca trademark (3) Sourced from Company, 2017 for Colombia Domestic, as of Dec 2017 for Intra-Home Markets and Home Markets To Spain (4) International traffic within our Home Markets (Colombia, Ecuador, Peru, El Salvador, Costa Rica, Nicaragua, Honduras, Guatemala, Belize, excluding Central American & Caribbean (non-regional)) * When indicated the figures are adjusted by one-time items during 2017

Leading Airline in Latin America focused on service excellence

Leading Airline in Latin America Leading Position in Latin American Markets (1) Significant Market Share Gains in Key Markets Passenger Evolution (MM) Colombia (4) Peru (4) 4.7% 4.4% 1.6% 59.1% 14.0% 1 54.5% 3.4% Others 11.4% 3 #1 19.9% 11.5% 14.6% #2 Ecuador Domestic 24.3% Market Share #3 Colombia Domestic 54.5% Market Share #4 Leading Airline with Strategic Footprint in the Americas (5) Unparalleled route network connecting the Americas Leadership position in the markets served: ~54.5% domestic market share in Colombia ~65.8% market share in Intra-Home Markets (6) Peru Domestic 11.5% Market Share Brazil Domestic (2) 11.8% Market Share 24.0% Market Share in Core Network (3) ~28.1% market share in Home Markets to Spain routes Domestic Operations Avianca Brasil (2) Undisputed leadership connecting passengers across our home markets with one another and with North America, Europe and South America 8 Source: Company and local regulators. (1) Market share based on number of passengers. Colombia: 2017, Perú: 2017, Ecuador: 2017 (2) Brazilian operations reflect the code-share agreement with Oceanair ( Avianca Brasil ), including the licensing of the Avianca trademark to 2016 (3) Reflects market share in the routes it operates as of April 2017. (4) Based on domestic and international passengers. Colombia and Peru, as of 2017 (5) Market shares sourced from Company. (6) International traffic within our Home Markets (Colombia, Ecuador, Peru, El Salvador, Costa Rica, Nicaragua, Honduras, Guatemala,Belize, excluding Central American & Caribbean (non-regional)).

Successful Fleet Optimization Leading to Reduced Complexity 2010 9 Families Average Jet Fleet Age of 10.1 Years 2017 7 Families Long Term Fleet 4 Families by 2020 A330 B737 F100 Boeing 787 B767F Boeing 787 A320 Neo A320 B767 Regional A320 Family (1) E190 More fuel efficient than many similarly sized airplanes 15% less fuel consumption Up to 500nm of additional range Up to 3% cost savings ATR 72 / 42 Cessna 208 ATR72 A330F E190 MD83 B757 A330 Pax / 330F /300F ATR72s for improved regional capacity 40% more cargo capacity vs. previous cargo fleet Backlog Designed to Enhance Fleet Efficiency (2) Modern fleet providing platform for higher profitability 9 Increased fuel efficiency Improved technical dispatch reliability Reduced training costs and maintenance expenses Improved range and network performance Opportunity to upgage in congested markets Increased regional capacity New A321 Neo (5 for 2018): First Latin American airline to operate it; allows savings of up to 20% in jet fuel New B787-9 (3 for 2019): 250-290 passengers. This variant differs from the 787-8, a greater capacity of fuel, a greater maximu.m weight to the takeoff (MTOW). Jet passenger operative Fleet average age: 6.6 years Source: Company. (1) The Airbus A320 Family is comprised of 10 A318, 16 A319, 49 A320, 2 A321, 10 A319sharklets, 13 A320sharklets and 9 A321sharklets. (2) Avianca also has rights to purchase up to 10 Boeing 787 Dreamliners and 15 ATR72s. In April 30, 2015, the Company signed a Purchase Contract for a total of 100 A320 New Engine Option (NEO) family aircraft with deliveries between 2019 and 2024, which are included in the contractual delivery schedule set above. In line with our initiatives directed towards enhancing profitability, achieving a leaner capital structure and reducing the current levels of debt, in April 2016, Avianca negotiated with Airbus a significant reduction of its scheduled aircraft deliveries for 2016, 2017, 2018 and 2019 and certain changes to the type of aircraft (both upgrades and downgrades), but did not alter the total deliveries scheduled between 2016 and 2025. 2018 2019 2020 2021 2022+ Total B787 1 3 - - - 4 A319 - - 4 4 12 20 A320 5 6 14 17 56 98 A321 2-2 2 11 17 Total (1) 8 9 20 23 79 139

Strong Operational and Financial Performance

Demand outgrows capacity deployment resulting in record Load Factor Region FY2017 RPK Growth FY2017 ASK Growth FY2017 Load Factor FY2017 Insights Domestic* -3,7% -7,6% 82,7% Capacity reduction in last quarter due to pilots' strike with moderate traffic impact Intra Home Markets 1 HM to North America 2 HM to South America 3 Central America & Caribbean 4 Home Markets to Europe 9,0% 4,3% 77,2% 6,1% 3,0% 85,0% 5,9% 10,1% 6,1% 0,0% 83,9% 78,3% 10,2% 11,6% 85,2% Strong competitive position in strategic markets drives demand and yield growth Traffic flux improvement generating more yield and load factor Yield and demand growth driven by traffic flux improvement and economic recovery, supports capacity increase Broad traffic growth with yield improvement driven by traffic flux improvement and economic recovery Strong capacity expansion supported by traffic growth Total RPK Growth 5.3% ASK Growth 2.7% Load Factor 83.1% 11 *Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North América including México 3 From Colombia, Perú, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil and Uruguay, 4 Belize, Cuba Curazao, Republica Dominicana, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua

Demand recovery in core markets drive yield improvement RPKs Millions: Strong demand growth outpaces Aviancas ASKs Millions: capacity deployment across the network Quarterly RPK Full Year RPK RPK ex-strike Quarterly ASK Full Year ASK ASK ex-strike 8,422 9,216 +10.0% 11,156 10,138 9,443-6.9% 38,233 +10.7% +5.3% 42,327 40,243 10,585 11,566 +11.4% 12,093 13,467 11,211-7.3% 47,145 +8.2% +2.7% 51.002 48,401 4Q14 4Q15 4Q16 4Q17 FY 2016 FY 2017 4Q14 4Q15 4Q16 4Q17 FY 2016 FY 2017 Load Factor: 4Q17 has the strongest LF in company history Yield - US : Continued yield recovery Quarterly Load Factor Full Year Load Factor Load Factor, ex-strike Quarterly Yield Full Year Yield Yield, ex-strike 83.8% +39 bp 84.2% 82.2% +189 bp 83.0% 83.1% 11,6 9,1 8,6 +27.2% 10,9 9,3 +8.0% 9,3 8,6 8,8 + 2.7% 79.6% 79.7% -104 bp 81.1% +205 bp + 8.5% 4Q14 4Q15 4Q16 4Q17 FY 2016 FY 2017 4Q14 4Q15 4Q16 4Q17 FY 2016 FY 2017 12 Source: Company Information Bp: Basics points

Avianca remains committed to pursue a leaner cost structure (Unadjusted) Revenues US M: Network flexibility and positive demand drive revenue increase Continuous cost cutting initiatives decrease unitary ex fuel cost Passenger Non-passanger Revenues RASK US CASK CASK Ex-fuel 11,7 1,243 263 10,0 9,2 9,1 1,067 1,105 1,121 233 233 240 8,8 4,138 853 9,2 4,442 891 12,0 10,0 8,0 6,0 10,7 7,7 8,5 8,5 6,7 6,7 9,5 7,5 12,0 10,0 8,2 8,6 8,0 6,6 6,7 6,0 979 834 872 881 3.285 3.550 4,0 2,0 4,0 2,0 4Q14 4Q15 4Q16 4Q17 FY 2016 FY 2017-4Q14 4Q15 4Q16 4Q17 - FY 2016 FY 2017 EBITDAR US Millions EBIT US M: Avianca continuous its path to sustainable margin expansion EBITDAR EBITDAR Margin EBIT EBIT Margin 27,0% 20,0% 21,1% 21,0% 18,1% 248,7 224,7 232,2 203,2 4Q14 4Q15 4Q16 4Q17 22,0% 20,4% 19,9% 17,0% 12,0% 842,5 885,8 7,0% 2,0% FY 2016 FY 2017 8,8% 8,3% 109 7,0% 89 77 5,0% 56 4Q14 4Q15 4Q16 4Q17 10,0% 9,0% 8,0% 294 7,0% 6,0% 6,6% 5,0% 4,0% 258,47 3,0% 2,0% 6,2% 1,0% 0,0% FY 2016 FY 2017 13 Source: Company Information 1. Q: Quarterly 2. A: Annual

Avianca remains committed to pursue a leaner cost structure (Adjusted) Revenues 1 US M: Network flexibility and positive demand drive revenue increase Continuous cost cutting initiatives decrease unitary ex fuel cost Passenger Non-passanger Revenues RASK US CASK CASK Ex-fuel 11,7 11,4 1,243 263 979 8,9 9,1 1,032 1,105 197 233 834 872 1,273 240 1.033 9,6 8,7 4,082 4,625 796 891 3.285 3.734 12,0 10,0 8,0 6,0 4,0 10,7 7,7 8,1 8,3 6,3 6,5 9,8 7,6 12,0 10,0 8,7 8,0 8,0 6,4 6,7 6,0 4,0 2,0 2,0 4Q14 4Q15 4Q16 4Q17 FY 2016 FY 2017-4Q14 4Q15 4Q16 4Q17 - FY 2016 FY 2017 EBITDAR 1 US Millions EBIT 1 US M: Avianca continuous its path to sustainable margin expansion EBITDAR EBITDAR Margin EBIT EBIT Margin 23,3% 23,4% 22,3% 20,3% 298,0 252,6 257,1 229,7 4Q14 4Q15 4Q16 4Q17 27,0% 22,0% 21,5% 21,8% 17,0% 12,0% 1.006,7 879,4 7,0% 2,0% FY 2016 FY 2017 23,0% 22,0% 21,0% 20,0% 19,0% 18,0% 17,0% 16,0% 15,0% 13,3% 169,1 9,1% 9,1% 9,2% 113,3 93,9 102,1 4Q14 4Q15 4Q16 4Q17 9,4% 7,2% 433,8 295,4 FY 2016 FY 2017 14 Source: Company Information 1. When indicated the figures are adjusted by the following one-time items:$-152,021m: ACDAC s, Foregone Revenues; $-62,042M: ACDAC s Opex; $ 20,000 M: Wetleases, Opex; $2,875M: Horizon, Opex. 2. Q: Quarterly 3. A: Annual

Debt Overview and Deleveraging Plan Type (1) Currency Avg. Rate USD Bonds 4Q17 Debt Profile By Type (1) By Currency Colombian Euros Pesos 1,72% 3,42% Aircraft Debt U.S. Dollars 3.60% Bonds Colombian Pesos 10.58% COP 1,65% Bonds 15,18% 59,70% Bonds U.S. Dollars 7.95% Corporate Debt U.S. Dollars 5.86% Total 4.79% USD Corporate Debt 23,47% USD Aircraft Debt 94,86% U.S. Dollars 4Q17 Debt Amortization Schedule (US$MM) 1.308 572 173,8 29 368,8 411 963 129,4 550 393 127,7 30 129,6 253,6 283,4 263,2 294,0 1.120 2018 2019 2020 2021 2022+ 15 AIRCRAFT BONDS CORPORATE DEBT Source: Company. (1) Excludes US$6.3 Millions of corporate debt in COP and US$128.2 Millions of aircraft debt in EUR. (2) Current installments of long term debt + long term debt cash. Cash includes cash and cash equivalents + restricted cash + available for sale securities + short term certificates of bank deposits + long term restricted cash. (3) Current installments of long term debt + long term debt + (aircraft rentals 12M x 7) cash. Cash includes cash and cash equivalents + restricted cash + available for sale securities + short term certificates of bank deposits + long term restricted cash. (4) Consolidated net profit for the period plus the sum of income tax expense, depreciation, amortization and impairment and aircraft rentals, minus interest expense, minus interest income, minus derivative instruments, minus foreign exchange. (5) EBITDAR coverage ratio calculated as EBITDAR divided by the sum of aircraft leases and interest expense.

Diversified Sources of Revenue with Growing Non-Passenger Businesses

Avianca Holdings: More Than an Airline Business Lines Business Overview Brands Key Highlights (2017) Result of the combination of Avianca and Taca with $4,4 Billions passenger revenue Passenger Transport complementary operations in Andean Region and Central America Extensive route network from hubs in Bogota, San 171 passenger aircraft (1) 28 countries reached Salvador and Lima Member of Star Alliance since 2012 6,000+ weekly departures Courier and Cargo Services 13 freighter aircraft complemented by passenger fleet bellies Deprisa is a leading express courier operation in Colombia with broad domestic and international product portfolio; UPS allied in Colombia Strong brand recognition and reputation in Colombia Courier 12 cargo aircraft (1) $544 mm revenue 2,487 mm ATKs (2) 1,419 mm RTKs (2) 38.7% 11.7% market Share Colombia Miami Loyalty Business One of the largest coalition loyalty programs in Latin America 20-year agreement, guaranteed exclusivity and seat availability from Avianca 7.8+ mm members (3) 657k+ active co-branded credit cards +354 commercial Partners Solid burn-to-earn ratio Freddie award winner 2013 2017 Other Services Aircraft maintenance, crew training and other airport services to other carriers Travel-related services to customers including allinclusive vacation deals In-flight duty-free sales 16% YoY growth in 2015 in revenue from external clients 1,035+ hours of flight simulators commercialized in 2017 17 Source: Company. (1) Considers 5 Airbus 330F, 5 Airbus 300F and 2 Boeing 767F. (2) Includes bellies and excludes Colombia domestic operations. Includes commercial agreements with OceanAir Linhas Aereas, not included in official statistics. (3) Last twelve month figures ending Dec 31, 2017.

LifeMiles

LifeMiles at-a-glance Strong Brand Recognition Strong and Growing Network Commercial Partners Co-Branded Credit Cards Selected Air Companies LifeMiles won 2 categories in the 2017 Freddie Awards Selected Financial Institutions Best Redemption Ability, Best Promotion, Up-and-Coming Program 1 2015 Best Promotion 1 2016 Redemption Ability 1 2017 Best Promotion ~70 banks with active contracts Selected Regional Hotels 1 Up and Coming Program 1 1 Best Promotion Up and Coming Program 1 Up and Coming Program Other Selected Commercial Partners Members (MM) Robust Financial and Performance and Leading Market Positions Geographic Presence Quarterly Highlights 4,4 4,9 5,4 6 6,5 7 7,8 4Q 17 revenues increased 4.9% vs 4Q 16 657K active cobranded credit cards, an increase of 22.7% vs. 4Q 16 More than 7.8 million members, a 10.7% increase vs. 4Q 16 2011 2012 2013 2014 2015 2016 2017 Home Markets (1) 354 commercial partners, +11.0% vs 4Q 16 19 Source: Company. (1) LifeMiles home markets include Colombia, Peru, Ecuador and Central America.

Avianca Cargo

Increasing Footprint in Latin American Markets Segment Overview First A330F operating under Peruvian certification (COA) allowing for more efficient asset utilization and network optimization Strong performance for 4 Quarter 2017, with an increase of +14% in transported tons when compared to same period in 2016 Key Metrics (Cargo and Courier) Revenue (US$MM) (2) ATK (MM) (3) 157 +6.6% 140 148 554 545 607,7 584,7 2.346 2.502 New A330Fs provide reduced unit costs, higher capacity (up to 4Q16 4Q17 2016 2017 4Q16 4Q17 2016 2017 40% more than the previous fleet) (1) and improved reliability RTK (MM) (3) Load Factor +10.0% 173 bp 366,9 365,1 1.290,6 1.419,4 60.4% 62.4% 55.0% 56.7% 4Q16 4Q17 2016 2017 4Q16 4Q17 2016 2017 Market Share Colombia (2017) (4) (% Market share by freight carried) (% Market share by freight carried) Market Share Miami (2017) (5) 38.7% 33.5% 28.5% 9.0% 8.8% 8.4% 6.6% 13.4% 11.1% 11.7% 8.1% 6.5% 15.7% AVH Atlas Latam UPS Skylease Others Atlas UPS AVH Amerijet American Airlines Latam Others 21 Source: Company. (1) On a per trip basis. (2) Includes consolidated revenues from the cargo operation in Mexico. (3) Includes bellies and excludes Colombia domestic operations. Includes commercial agreements with OceanAir Linhas Aereas, not included in official statistics. (4) International Cargo Aeronáutica Civil de Colombia (as of December 2017) (5) Miami-Dade Aviation Statistics, by airline group (as of December 2017)

Full Year Outlook and Additional Information

Avianca is committed to achieve its full year outlook

AVIANCA s contingency plan mitigates effects of pilot strike Strike Impact on EBIT Revenue Impact Cost Impact 9,2% Out of a total of 51 strike days, 41 took place in the 4Q17. The total impact of the strike translates into USD $ 1.7- $ 1.9 Million per day in forgone revenues, while variable costs decreased between USD $ 0.7 - $ 0.5 Million per day On September 20 th approx. 700 Avianca Colombia Pilot members of the ACDAC union, of a total of 1350 Pilots of Avinca S.A., went on strike effectively reducing the company's deployable capacity, measured in ASK, by 45%; on November 10 th, the ACDAC s pilots terminated the strike after 51 days. Avianca has no restrictions on ticket sales; therefore, all tickets for flights operated by Avianca are currently available for sale, which significantly reduced passenger compensation Avianca quickly enacted a contingency plan to mitigate the impact, larger capacity aircraft were deployed, more efficient use of staff, change in mix of operating carriers, focus on operation of key domestic city pairs, wet lease aircraft deployed. Avianca also shifted administrative staff to work at airports; Administrative savings program. Avianca reached a 2017 EBIT margin of 6.6%, 37 bps above 2016, despite impact of pilot strike For the 2018, Avianca Colombia will continue to incorporate new pilots and operate Wet leased Aircraft, in order to operate as closely as possible to its pre-strike capacity (measured in ASK) 24 Source: Company Information

Thank You Contact Information: Investor Relations Office ir@avianca.com T: (57) 1 5877700 www.aviancaholdings.com

Reconciliation of Adjusted EBITDAR This presentation includes certain references to non-ifrs measures such as our Adjusted EBITDAR and Adjusted EBITDAR margin. Adjusted EBITDAR represents our consolidated net profit for the year plus the sum of income tax expense, depreciation, amortization and impairment, aircraft rentals and interest expense, minus interest income, minus derivative instruments, minus foreign exchange. Adjusted EBITDAR is presented as supplemental information, because we believe it is a useful indicator of our operating performance and is useful in comparing our operating performance with other companies in the airline industry. However, Adjusted EBITDAR should not be considered in isolation, as a substitute for net profit determined in accordance with IFRS or as a measure of a company s profitability. These supplemental financial measures are not prepared in accordance with IFRS or Colombian GAAP. Accordingly, you are cautioned not to place undue reliance on this information and should note that Adjusted EBITDAR and Adjusted EBITDAR margin, as calculated by us, may differ materially from similarly titled measures reported by other companies, including our competitors. Adjusted EBITDAR is commonly used in the airline industry to view operating results before depreciation, amortization and aircraft operating lease charges, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other asset acquisitions. However, Adjusted EBITDAR should not be considered as an alternative measure to operating profit, as an indicator of operating performance, as an alternative to operating cash flows or as a measure of our liquidity. Adjusted EBITDAR as calculated by us and as presented in this presentation may differ materially from similarly titled measures reported by other companies due to differences in the way these measures are calculated. Adjusted EBITDAR has important limitations as an analytical tool and should not be considered in isolation from, or as a substitute for an analysis of, our operating results as reported under IFRS or Colombian GAAP. Some of the limitations are: Adjusted EBITDAR does not reflect cash expenditures or future requirements for capital expenditures or contractual commitments; Adjusted EBITDAR does not reflect changes in, or cash requirements for, working capital needs; Adjusted EBITDAR does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on debt; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDAR does not reflect any cash requirements for such replacements; Adjusted EBITDAR does not reflect expenses related to leases of flight equipment and other related expenses; and other companies may calculate Adjusted EBITDAR or similarly titled measures differently, limiting its usefulness as a comparative measure. 26