AviancaTaca reports positive second quarter earnings

• The consolidated financial statements of AviancaTaca Holding S.A. show operating income of US $895.6 million, 33.8% higher than the operating income for the second quarter 2010.

• Operating profit reached US $26.5 million, an increase of 319% compared to operating profit for the same period last year.

For the second quarter 2011, AviancaTaca Holding S.A. reported operating income of US $895.6 million, 33.8% higher than the figure recorded in 2010 of US $669 million and a net profit of US $1.1 million, up US $82 million from the loss posted in the second quarter of 2010.

EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) reached US $77.8 million, an increase of 66.9% over the same period of the previous year, while EBITDAR (Earnings before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs) increased 41% reaching US $137 million.

AviancaTaca Holding S.A. reported that its subsidiaries carried 4.9 million passengers in the second quarter of 2011, 19.6% more passengers than the same period in 2010.

During the second quarter of 2011, the load factor of the airline was 75.4%, 1.7 bps above that obtained for the same period of 2010, while capacity an increased by 19.2%.

According to Fabio Villegas Ramirez, the CEO of AviancaTaca Holding S.A., "The figures obtained are a reflection of the strategies implemented in the expansion and modernization plan of the companies for 2011. Through these we have managed to mitigate the impact of fuel prices without affecting the process of network expansion. During the second quarter of 2011 we continued the fleet renewal plan, added 10 next generation planes, opened two new routes, progressed in the preparation of the new Amadeus reservation system and while continuing to work on the consolidation of the airline in Latin America."