Abra Group reported a strong fourth-quarter performance on its latest earnings call, with executives highlighting revenue growth, improved profitability and a strengthened balance sheet following the restructuring of its Brazilian carrier Gol.
The Latin American airline group, which owns Avianca and Gol, said pro forma revenue increased 11% year-on-year to $9.7bn in 2025, while adjusted EBITDA rose 26%, with margins expanding to 27.4%.
Management pointed to Gol’s emergence from Chapter 11 as a key turning point for the group’s financial position. Executives said the restructuring has improved liquidity and reduced debt, helping stabilise operations and support future growth.
The group reduced its net debt to EBITDA leverage from 5.0x to 3.3%, reflecting stronger earnings and balance sheet improvements.
On the earnings call, the company’s chief executive said the results reflected “a very strong year for Abra,” adding that the group had made “significant progress in strengthening our financial position and improving profitability.”
The chief financial officer highlighted the importance of deleveraging, noting that the reduction in leverage “puts us in a much better position going forward” and provides greater flexibility to invest in the business.
Abra’s strategy remains focused on expanding its network and strengthening its position across Latin America, with management pointing to continued growth in passenger demand as well as increasing contributions from cargo and ancillary revenues.
Executives said the integration of Gol into the wider group is central to this strategy, enabling improved coordination across airlines and more efficient use of capacity.
Fuel costs were identified as a key challenge heading into 2026. The company said rising prices could put pressure on margins, although hedging strategies have helped offset some of the impact. “We have been able to mitigate part of the increase through our hedging programme,” management said, while acknowledging ongoing exposure to market volatility.
Looking ahead, Abra expects continued growth but flagged uncertainty linked to geopolitical developments and fuel price fluctuations. Executives said demand trends remain positive but warned that external factors could affect performance.
The chief executive said the group remains focused on “disciplined growth and operational efficiency” as it expands its network and strengthens its commercial offering.
Overall, management said the fourth-quarter performance demonstrates a more resilient business following Gol’s restructuring, with improved financial metrics and a clearer path for growth in 2026, despite potential headwinds from fuel costs and the broader operating environment.