Corporate Presentation August 2017 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
Leading Airline in Latin America focused on 2 service excellence
3 Strong Operational and Financial Performance
Diversified Sources of Revenue with Growing 4 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
Total Realized Revenue Synergies: $219MM Revenue’16: $4,081MM
LifeMiles 2017 Maximization Single Ancillary Revenue Commercial Code Revenue Management Single Brand Optimization Star Alliance Single Web Page 2016
Single Loyalty Program Core Systems Migration Network / Fleet 2015 Optimization Network & Commercial Integration Total Single Management Revenue‘10: 2014 MRO and CEO(3) Team $2,815MM(1) Single Operations 2013 Management 2012 ERP Cost Control Initiatives 2011 Intra Hub Connectivity Airport Optimization Model 2010 Fleet Interchangeability Potential Cost-Reduction Synergies: US$80MM
EBIT Margin: ~4.5%(2) 5.3% 6.6% 8.4% 6.2% 5.7% 7.2% 7.0% - 9.0%
Shared Strengths and Values
Customer Complementary . Experience operating widebody aircraft offers new . Both airlines shared similar brand and customer Service Fleet opportunities for traffic from Central America and Lima strategies, providing a high standard of service Approach
. Complementary networks offer a unique growth Complementary Great . Talent and commitment aligned with objectives and proposition in Central and South America Routes Talent similar cultures . Only 2 routes overlapped before combination
Source: Company. 5 (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
Geographic Footprint US$4,081 mm Total Revenues in 2016
US$879mm Total EBITDAR in 2016
167 Passenger and 12 Freighter Aircraft(1) as of June 2017 Average Jet Fleet Age of 5.9 Years
3 Hubs: (NY008B8R)(NY008B8R)(NY008B8R)(NY008B8R) 684268_1.wor684268_1.wor684268_1.wor684268_1.wor Bogota, San Salvador and Lima
100+ Destinations and 6,000+ Weekly Departures Single commercial code
Leading Loyalty Coalition Program with 7.3+ mm Members Single Avianca brand Single website Complementary Business Lines – Avianca Brasil(2) 20% of Consolidated Revenues in 2016 Interchangeability of aircraft
Colombia Domestic Intra-Home Markets(4) Home Markets to Spain
#1 #1 #2
Courier 59.2% Market Share(3) 68.8% Market Share(3) 28.5% Market Share(3)
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 6 (2) Brazilian operations reflect the code-share agreement with Oceanair (“Avianca Brasil”), including the licensing of the Avianca trademark (3) Sourced from Company (4) International traffic within our Home Markets (Colombia, Ecuador, Peru, El Salvador, Costa Rica, Nicaragua, Honduras, Guatemala, Belize, excluding Central American & Caribbean (non-regional)) 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)
#1
Leading Airline with Strategic Footprint in the Americas(5) Colombia Domestic 59.2% Market Share . Unparalleled route network connecting the Americas #2 . Leadership position in the markets served: Ecuador Domestic 23.6% Market Share ̶ ~60% domestic market share in Colombia
#3 #4 ̶ ~69% market share in Intra-Home Markets(6)
Brazil Domestic(2) Peru Domestic 11.8% Market Share ̶ ~28.5% market share in Home Markets to Spain routes 12.0% Market Share 24.0% Market Share in Core Network(3)
Domestic Operations ̶ Undisputed leadership connecting passengers across our home markets (2) Avianca Brasil with one another and with North America, Europe and South America
Source: Company and local regulators. (1) Market share based on number of passengers. As of June 2017. (2) Brazilian operations reflect the code-share agreement with Oceanair (“Avianca Brasil”), including the licensing of the Avianca trademark. (3) Reflects market share in the routes it operates as of April 2017. (4) Based on domestic and international passengers. 8 (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 2015 – 7 Families Long Term Fleet – 4 Families by 2020 Average Jet Fleet Age of 10.1 Years Average Jet Fleet Age of 5.9 Years
A330 B737 F100 Boeing 787 B767F Boeing 787 A320 Neo
More fuel efficient than 15% less fuel consumption A320 Family(1) E190 many similarly sized Up to 500nm of additional airplanes A320 B767 Regional range Up to 3% cost savings
ATR 72 / 42 Cessna 208 ATR72 A330F
E190 MD83 B757 A330 Pax / 330F /300F ATR72s for improved 40% more cargo capacity vs. regional capacity previous cargo fleet
Backlog Designed to Enhance Fleet Efficiency(2)
Increased fuel efficiency Opportunity to upgage in 2017 2018 2019 2020 2021 Total congested markets Modern Improved technical dispatch B787 2 - 3 - - 5 fleet reliability Increased regional capacity A319 2 - - 4 4 10 providing Reduced training costs and platform for A320 - 5 6 14 17 42 maintenance expenses higher Jet passenger operative A321 2 - - 2 2 6 profitability Improved range and network Fleet average age: 5.9 years performance Total(1) 6 5 9 20 23 63
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 9 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. Strong Operational and Financial Performance Demand outgrows capacity deployment resulting in record Load Factor
2Q17 2Q17 2Q17 2Q17 Region ASK Growth RPK Growth Load Factor Insights
Domestic* Robust position thanks to strong -1.8% 4.0% 80.8% network and frequencies
Strong competitive position in 1 strategic markets drives demand Intra Home Markets 5.1% 14.3% 75.5% growth
Increase of frequencies and a new 2 destination (BOS) with traffic and HM to North America 9.4% 14.5% 83.8% yield growth
Strong demand growth, support 3 capacity increases combined with HM to South America 16.3% 17.1% 81.9% economic recovery
Central America & Broad traffic growth with yield 4 5.4% 20.3% 78.1% improvement driven by economic Caribbean recovery
Home Markets to Strong capacity expansion outpaced 19.1% 22.7% 85.5% by traffic growth Europe ASK Growth RPK Growth Load Factor Total 9.0% 14.5% 82%
*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, 11 Brazil ,Uruguay and Venezuela, 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…
RPK Quarterly ASK Quarterly RPK Annual ASK Annual +9.0% +14.5% +12.3% +7.5% 10,346 12,621 11,575 9,037 20,317 10,780 24,801 8,488 9,922 7,756 18,098 23,079
2Q14 2Q15 2Q16 2Q17 6M16 6M17 2Q14 2Q15 2Q16 2Q17 6M16 6M17
Load Factor: 1Q17 (strongest 1Q LF since TACA integration) & 2Q17 (highest 2Q LF since 2012) Yield - US¢: First YoY yield increase since 1Q14
Load Factor Quarterly Yield Quarterly Load Factor Annual Yield Annual
+390 bp
+350 bp 82.0% 12.0 +318 bp +98 bp 81.9% 78.7% 9.8 78.2% 78.1% 8.2 8.5 8.55 78.4% 8.47
2Q14 2Q15 2Q16 2Q17 6M16 6M17 2Q14 2Q15 2Q16 2Q17 6M16 6M17
Source: Company Information 12 Bp: Basics points Avianca remains committed to pursue a leaner cost structure
Revenues1 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 11.5 CASK Ex-fuel
9.6 8.7 8.1 8.6 8.3 12.0 12.0 1,144 1,092 1,915 2,160 1,036 10.0 11.0 10.0 212 938 217 382 422 9.6 208 8.0 8.0 932 197 8.2 8.2 875 1,533 1,737 7.7 7.8 7.8 829 6.0 7.0 6.0 741 6.1 6.3 6.3 6.3 4.0 4.0
2.0 2.0
- - 2Q14 2Q15 2Q16 2Q17 6M16 6M17 2Q14 2Q15 2Q16 2Q17 6M16 6M17
EBITDAR1 US Millions EBIT1 US M: Avianca continuous its path to sustainable margin expansion
EBITDAR EBIT EBITDAR Margin EBIT Margin 5.7% 250.000 22.0% 70 19.4% 19.0% 20.0% 60 133.1 20.5% 19.9% 21.0% 4.4% 62 200.000 211.9 18.0% 4.0% 109.9 14.4% 16.0% 50 13.5% 178.4 20.0% 50 6.2% 150.000 164.3 14.0% 40 430.0 19.0% 140.0 12.0% 38 100.000 10.0% 18.0% 30 8.0%393.3 17.0% 20 50.000 6.0% 10 0.5% 4.0% 16.0% 5.7% 5 - 2.0% 15.0% - 2Q14 2Q15 2Q16 2Q17 6M16 6M17 2Q14 2Q15 2Q16 2Q17 6M16 6M17
Source: Company Information 13 1. When indicated the figures exclude the following one-time items: $0.620M: extraordinary projects; 2Q2016 figures exclude one-time expenses disclosed on previous earnings releases and cargo discount Debt Overview and Deleveraging Plan
2Q17 Debt Profile By Type(1) By Currency Type(1) Currency Avg. Rate Euros USD Colombian 3.96% Bonds Pesos 2.91% Aircraft Debt U.S. Dollars 3.50% 17.71% COP 2.83% Colombian Bonds 11.19% Bonds Pesos 13.95% 65.51% Bonds U.S. Dollars 7.95% USD Corporate Debt 93.13% Corporate U.S. Dollars 4.56% Debt U.S. USD Aircraft Dollars Debt Total 4.65%
2Q17 Debt Amortization Schedule (US$MM)
1.308
133 881
550
403 371 1,175 270 28 29 29 73 59 60 113 301 283 272 128 2017 2018 2019 2020 2021+
______AIRCRAFT CORPORATE DEBT BONDS 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. 14 (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 ■ $1,7 Billions passenger revenue complementary operations in Andean Region and ■ 167 passenger aircraft(1) Passenger Central America Transport ■ Extensive route network from hubs in Bogota, San ■ 28 countries reached Salvador and Lima ■ 6,000+ weekly departures ■ Member of Star Alliance since 2012
■ 13 freighter aircraft complemented by passenger fleet ■ 12 cargo aircraft(1) bellies ■ $531mm revenue Courier and ■ Deprisa is a leading express courier operation in ■ 1,286 mm ATKs(2) Cargo Services Colombia with broad domestic and international product portfolio; UPS allied in Colombia ■ 685.4 mm RTKs(2) ■ Strong brand recognition and reputation in Colombia Courier ■ 53.5% | 17.06% market Share Colombia | Miami ■ One of the largest coalition loyalty programs in Latin ■ 7.3+ mm members(3) America ■ Loyalty ■ 20-year agreement, guaranteed exclusivity and seat 591k+ active co-branded credit cards Business availability from Avianca ■ +320 commercial Partners ■ Solid burn-to-earn ratio ■ Freddie award winner 2013 – 2017
■ Aircraft maintenance, crew training and other airport services to other carriers ■ 12% YoY growth in 2015 in revenue from external clients Other Services ■ Travel-related services to customers including all- inclusive vacation deals ■ 2,700+ hours of flight simulators ■ In-flight duty-free sales commercialized
Source: Company. (1) Considers 5 Airbus 330F, 5 Airbus 300F and 2 Boeing 767F. 16 (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 June 30, 2017. LifeMiles LifeMiles at-a-Glance
Strong and Growing Network Commercial Partners Strong Brand Recognition 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
2015 2016 2017 ~70 banks with active contracts 1 Best Promotion 1 Redemption Ability 1 Best Promotion Selected Regional Hotels
1 Up and Coming 1 Best Promotion 1 Up and Coming Program Program Other Selected Commercial Partners 1 Up and Coming Program
Robust Financial and Performance and Leading Market Positions
Members (MM) Geographic Presence Quarterly Highlights
• 2Q’17 revenues increased 21.6% vs 2Q´16 7 7.3 6.5 • 591K active cobranded credit cards, an 6 increase of 23.0% vs. 2Q’16 5.4 4.9 4.4 • More than 7.3 million members, a 8.2% increase vs. 2Q’16
• 320 commercial partners, +9.6% vs 2Q’16 Home Markets(1) 2011 2012 2013 2014 2015 2016 2Q17
Source: Company. 18 (1) LifeMiles home markets include Colombia, Peru, Ecuador and Central America. Avianca Cargo Increasing Footprint in Latin American Markets Segment Overview Key Metrics (Cargo and Courier)
(2) (3) . Attractive opportunity for growth, complementing passenger Revenue (US$MM) ATK (MM)
operations and diversifying sources of revenue +7.10% +11.8%
̶ Avianca carries cargo in the bellies of passenger aircraft 131.75 666.0 and has a dedicated freighter fleet to cover market 595.8
segments that cannot be served with passenger aircraft 123.02
. More than 100 destinations with expanded network scope 2Q16 2Q17 2Q16 2Q17 through acquisition of part of AeroUnion and commercial RTK (MM)(3) Load Factor agreements with OceanAir Linhas Aereas
+16.6% +221 bp . New A330Fs provide reduced unit costs, higher capacity (up to 40% more than the previous fleet)(1) and improved 356.8 53.57% reliability 306.0
. Strong performance for first semester 2017, with an increase 51.36% of +4.2% in transporting tons when compared to same period in 2016 2Q16 2Q17 2Q16 2Q17 Market Share Colombia (2017)(4) Market Share Miami (2017)(5) (% Market share by freight carried) (% Market share by freight carried) 53.5% 40.08%
33.9%
17.06% 17.06% 15.87% 13.10% 13.4% 11.8% 11.0% 10.2% 8.73% 7.94% 3.9%
AVH Atlas Latam UPS Skylease Cargolux Others AVH Latam Atlas UPS Amerijet Skylease Others
Source: Company. 20 (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 June 2017) – (5) Miami-Dade Aviation Statistics, by airline group (as of June 2017) Strategic Projects and Full Year Outlook Avianca is committed to achieve its full year outlook
2017 UPDATED 2017 2Q 2017 1H 2017 O UTLO O K O UTLO O K
PAX 9.0% 7.2% 4.0% – 6.0% 4.5% – 6.5%
ASK 9.0% 7.5% 6.5% – 8.5% 7.0% – 9.0%
LF 82.0% 81.9% 80.0% – 82.0% 80.0% – 82.0%
EBIT¹ 5.7% 6.1% 6.0% – 7.0% 7.0% – 9.0%
Source: Company information.
Source: Company Information 1. When indicated the figures exclude the following one-time items: $0.620M: extraordinary projects; 2Q2016 figures exclude one-time expenses disclosed on previous earnings releases and cargo discount Partnership Considerations and Closing Remarks
1 Avianca proceeds in its negotiation with United Airlines
. Avianca is committed to pursue a long term strategic alliance with United Airlines, to enhance and deepen the companies' commercial and strategic relationships . Negotiations are proceeding according to schedule; a term sheet shall be presented within the next 3-6 months
2 Capitalization of Avianca Holdings
. Synergy corp. intends to make a capital contribution to AVH of up to USD 200 million . All shareholders, including preferred shareholders, are invited to participate on a pro rata basis
3 Potential Integration with OceanAir (Avianca Brasil)
. Synergy’s intention to seek all necessary approvals for combining AVH with AvBrazil on fair and reasonable terms for both companies . Avianca has recently begun the due diligence process and is proceeding according to schedule
4 Lawsuit at the New York State Supreme Court
. New York State Supreme Court, denies request of expedited discovery . A final verdict on the lawsuit is still pending at this point in time
23 Contact Information: Investor Relations Office [email protected] Thank You 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.
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