Interim report
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A VIANCA GROUP INTERNATIONAL LIMITED Unaudited Interim Condensed Consolidated Financial Statements As of June 30, 2026, and for the six months ended June 30, 2026 and 2025
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2 A VIANCA GROUP INTERNATIONAL LIMITED Index to the Interim Condensed Consolidated Financial Statements Interim condensed consolidated statement of financial position……………………..………….... 3 Interim condensed consolidated statement of profit or loss ………………………….................... 5 Interim condensed consolidated statement of comprehensive income ………………………….... 7 Interim condensed consolidated statement of changes in equity…………………………………... 8 Interim condensed consolidated statement of cash flows…………………………………............. 9 Index to notes the interim condensed consolidated financial statements…………………………... 11
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statement of financial position as at (In thousands of United States dollar - US) 3 Notes June 30, 2026 December 31, 2025 Unaudited Assets Current assets: Cash and cash equivalents 7 $ 736,339 $ 943,686 Short-term investments 7 217,510 218,072 Trade and other receivables, net of expected credit losses 8 281,238 287,221 Financial assets with related parties 9 50,571 39,723 Income tax 94,820 124,330 Other taxes 153,625 130,421 Inventories 137,148 118,233 Prepayments 10 15,662 11,310 Deposits and other assets 10 96,847 42,908 1,783,760 1,915,904 Assets held for sale — 2,211 Total current assets 1,783,760 1,918,115 Non–current assets: Deposits and other assets 10 176,372 169,978 Financial assets with related parties 9 166,483 138,776 Intangible assets 1,248,666 1,293,271 Goodwill 1,613,442 1,616,217 Deferred tax assets 87,392 70,652 Right of use assets 12 2,710,938 2,927,080 Property and equipment 11 2,059,583 1,645,943 Total non–current assets 8,062,876 7,861,917 Total assets $ 9,846,636 $ 9,780,032
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statement of financial position as at (In thousands of United States dollar - US) 4 Notes June 30, 2026 December 31, 2025 Unaudited Liabilities and equity Current liabilities: Debts 13 $ 144,678 $ 115,220 Leases 12 451,344 382,194 Obligations with lessor 12.1 2,186 — Accounts payable and others 987,444 848,030 Financial liabilities with related parties 9 12,395 2,353 Income tax payable 44,847 50,969 Others tax payable 8,759 11,417 Provisions for legal claims 17 50,021 32,626 Provisions for return conditions 12 25,891 28,122 Employee benefits 130,946 136,128 Air traffic liability 807,924 645,348 Deferred revenue 23,232 22,847 Frequent flyer 219,974 201,009 Other liabilities 31,908 5,794 Total current liabilities 2,941,549 2,482,057 Non–current liabilities: Debts 13 2,585,877 2,427,090 Leases 12 2,214,197 2,453,910 Obligations with lessor 12.1 4,798 — Provisions for return conditions 12 601,344 588,315 Employee benefits 68,727 56,906 Deferred tax liabilities 132,580 138,361 Frequent flyer 287,806 282,468 Other liabilities 264 200 Total non–current liabilities 5,895,593 5,947,250 Total liabilities 8,837,142 8,429,307 Equity Share capital 14 $ 4 $ 4 Additional paid-in capital 1,152,673 1,150,094 Retained (losses) earnings (121,500) 188,742 Other comprehensive income (38,241) (5,438) Equity attributable to owners of the Group 992,936 1,333,402 Non–controlling interest 16,558 17,323 Total equity 1,009,494 1,350,725 Total liabilities and equity $ 9,846,636 $ 9,780,032 See accompanying notes to consolidated financial statements.
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statement of profit or loss for the (In thousands of United States dollar - US) 5 Six months ended June 30, Three months ended June, 30 Notes 2026 2025 2026 2025 Unaudited Unaudited Net revenue: Passenger $ 2,414,029 $ 2,102,006 $ 1,215,394 $ 1,046,798 Cargo and other 653,636 579,955 342,389 310,642 Total net revenue 18 3,067,665 2,681,961 1,557,783 1,357,440 Operating expenses: Aircraft fuel $ 884,095 $ 659,900 $ 533,535 $ 317,815 Salaries, wages, and benefits 475,655 396,722 239,248 199,854 Ground operations 359,124 286,541 182,628 144,405 Air traffic 172,601 132,467 88,749 68,399 Flight operations 61,824 52,328 31,167 28,565 Passenger services 114,001 57,884 61,250 29,877 Maintenance and repairs 158,662 160,028 81,781 81,421 Selling expenses 159,640 129,668 81,494 72,309 Fees and other expenses 199,144 154,063 122,830 76,150 Rentals 82,365 45,909 44,822 31,305 Depreciation of right of use assets 12 249,789 223,955 113,120 76,645 Other depreciation and amortization 151,953 89,490 89,410 89,490 Impairment of intangible assets 20 24,971 — 24,971 — Total operating expenses 3,093,824 2,388,955 1,695,005 1,216,235 Operating (Loss) profit (26,159) 293,006 (137,222) 141,205 Interest expense (308,497) (306,880) (136,540) (140,613) Interest income and other financial income 28,419 29,270 13,954 12,891 Net interest expense 19 (280,078) (277,610) (122,586) (127,722)
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statement of profit or loss for the (In thousands of United States dollar - US) 6 Six months ended June 30, Three months ended June, 30 Notes 2026 2025 2026 2025 Unaudited Unaudited Net change in fair value of assets Foreign exchange, net (12,659) (12,335) (6,044) (5,561) Equity method income 560 285 316 116 (Loss) profit before income tax (318,336) 3,346 (265,536) 8,038 Income tax expense - current (4,271) (20,022) (3,376) (14,560) Income tax benefit - deferred 11,575 16,371 9,670 16,075 Total income tax expense 16 7,304 (3,651) 6,294 1,515 Net (loss) profit for the period $ (311,032) $ (305) $ (259,242) $ 9,553 Attributable to: Equity holders of the parent (310,242) 1,147 (259,008) 11,084 Non–controlling interest. (790) (1,452) (234) (1,531) Net (loss) profit for the period (311,032) (305) (259,242) 9,553 The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statement of comprehensive income for the (In thousands of United States dollar - US) 7 Six months ended June 30, Three months ended June, 30 Notes 2026 2025 2026 2025 Unaudited Unaudited Net (loss) profit for the period $ (311,032) $ (305) $ (259,242) $ 9,553 Other comprehensive income (loss): Items that will not be reclassified to income or loss in future periods: Revaluation of administrative property 6 268 — — Remeasurements gain (loss) of defined benefit 715 3,823 (1,069) 1,461 Income tax 329 (14,461) (25,275) (14,461) Total non-reclassifiable items 1,050 (10,370) (26,344) (13,000) Items that will be reclassified to profit or (loss) in subsequent periods: Net change in cash flow hedges 6 (23,070) (2,141) (145,938) (2,141) Net change in cost of hedging 6 (10,341) — (10,341) — Net change in fair value of financial assets with changes in OCI 24 261 15 111 Foreign operations — foreign currency translation differences (11,466) 9,867 (59) 7,752 Income tax 11,025 — 11,025 — Total reclassifiable items (33,828) 7,987 (145,298) 5,722 Other comprehensive loss, net of income tax (32,778) (2,383) (171,642) (7,278) Total comprehensive loss, net of income tax (343,810) (2,688) (430,884) 2,275 Attributable to: Equity holders of the parent (343,045) (1,114) (430,713) 2,074 Non–controlling interest (765) (1,574) (171) 201 Total comprehensive loss $ (343,810) $ (2,688) $ (430,884) $ 2,275 The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statement of changes in equity for the Six months ended June 30, (In thousands of United States dollar - US) 8 Share capital Additional paid-in capital Other comprehensive Income Retained earnings (losses) Equity attributable to owners of the Group Non- controlling interest Total equity Balance at December 31, 2025 $ 4 $ 1,150,094 $ (5,438) $ 188,742 $ 1,333,402 $ 17,323 $ 1,350,725 Net loss for the period — — — (310,242) (310,242) (790) (311,032) Share-based payments — 2,579 — — 2,579 — 2,579 Other comprehensive income — — (32,803) — (32,803) 25 (32,778) Balance at June 30, 2026 (Unaudited) $ 4 $ 1,152,673 $ (38,241) $ (121,500) $ 992,936 $ 16,558 $ 1,009,494 Share capital Additional paid-in capital Other comprehensive Income Retained earnings (losses) Equity attributable to owners of the Group Non- controlling interest Total equity Balance at December 31, 2024 $ 4 $ 1,145,962 $ (3,463) $ (87,487) $ 1,055,016 $ 15,828 $ 1,070,844 Net loss for the period — — — 1,147 1,147 (1,452) (305) Share-based payments — 2,304 — — 2,304 — 2,304 Other comprehensive income — — (2,261) — (2,261) (122) (2,383) Balance at June 30, 2025 (Unaudited) $ 4 $ 1,148,266 $ (5,724) $ (86,340) $ 1,056,206 $ 14,254 $ 1,070,460 The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statement of cash flows for the Six months ended June 30, (In thousands of United States dollar - US) 9 Notes 2026 2025 Unaudited Cash flows from operating activities: Net loss for the period $ (311,032) $ (305) Adjustments to reconcile profit (loss) to net cash flow: Provisions for legal claims 17 16,443 4,322 Depreciation of right of use asset 12 249,789 223,955 Other depreciation and amortization 151,953 89,490 Impairment of assets 20 24,971 — Interest income 19 (28,419) (29,270) Interest expense 19 308,497 306,880 Income tax benefit – deferred 16 (11,575) (16,371) Income tax expense – current 16 4,271 20,022 Unrealized foreign currency loss (gain) 20,713 (870) Changes in: Trade and other receivables (5,146) (30,005) Financial assets with related parties (23,661) (13,395) Inventories (30,106) 1,050 Prepayments (4,427) 1,469 Net current tax 43,345 27,502 Deposits and other assets (68,783) (21,696) Accounts payable and others 101,787 5,591 Financial liabilities with related parties 5,777 6,524 Air traffic liability 164,508 99,544 Frequent flyer 22,300 11,073 Provisions for return conditions (13,498) (6,995) Provisions for legal claims 17 (1,544) (1,197) Employee benefits (6,343) 7,954 Income tax paid (46,884) (39,948) Net cash provided by operating activities 562,936 645,324
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A VIANCA GROUP INTERNATIONAL LIMITED Interim condensed consolidated statements of cash flows for the Six months ended June 30, (In thousands of United States dollar - US) 10 Notes 2026 2025 Cash flows from investing activities: Acquisition of property and equipment (520,103) (261,473) Acquisition of property and equipment financed PDP (78,270) (14,737) Reimbursement of equipment acquisition 30,316 28,060 Interest received 21,326 20,900 Maturity (Acquisition) of financial instruments 2,367 (28,990) Acquisition of intangible assets (10,007) (8,494) Proceeds from sale of property and equipment 59,570 4,405 Proceeds from sale and lease back 14,737 — Net cash used in investing activities (480,064) (260,329) Cash flows from financing activities: Financing of pre-delivery payments 13 78,270 31,659 Proceeds from debts 13 848,289 1,022,932 Transaction cost related to debts 13 (11,008) (50,305) Proceeds from obligations with lessor 12.1 13,498 — Interest paid of debts 13 (97,439) (86,593) Payment of debts 13 (757,323) (961,461) Payments of pre-delivery payments financing 13 (14,737) — Payments of obligations with lessor 12.1 (6,601) — Lease interest paid 12 (150,665) (142,034) Payment of leases 12 (174,636) (161,193) Prepaid debt call premiums 19 (15,945) (6,788) Net cash used in financing activities (288,297) (353,783) Net (decrease) increase in cash and cash equivalents (205,425) 31,212 Exchange rate effect on cash and cash equivalents (1,922) 7,243 Cash and cash equivalents at the beginning of the year 943,686 873,717 Cash and cash equivalents at the end of the period $ 736,339 $ 912,172 The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 11 (1) Reporting entity Avianca Group International Limited ("AGIL" or the "Company") was incorporated and exists under the laws of England and Wales as of September 27, 2021, with its registered office at 3rd Floor 1 Ashley Road, Altrincham, Cheshire, United Kingdom, WA14 2DT. AGIL, together with its subsidiaries, will be referred to as the "Group" for the purposes of this document. AGIL is an indirect controlled entity of Abra Group Limited ("Abra") since April 3, 2023. AGIL is the subparent entity of one of the leading airline groups in Latin America, providing passenger air transportation and cargo services across South America, Central America, North America and Europe. Significant subsidiaries The following are the Group’s significant subsidiaries owned directly and indirectly by Avianca Group International Limited included within these interim condensed consolidated financial statements: Subsidiary name Country of incorporation Ownership interest Ownership interest as of June 30, 2026 December 31, 2025 Avianca Midco 2 PLC United Kingdom Indirect 100% 100% Avianca Ecuador S.A. Ecuador Indirect 99.62% 99.62% Aerovías del Continente Americano S.A. (Avianca) Colombia Indirect 99.98% 99.98% LifeMiles Ltd. Bermuda Indirect 100% 100% Avianca Costa Rica S.A. Costa Rica Indirect 92.42% 92.42% Taca International Airlines, S.A. El Salvador Indirect 96.83% 96.83% Tampa Cargo S.A.S. Colombia Indirect 100% 100% Wamos Air, S.A.U Spain Indirect (*) (*) (*) Indirectly the Group owns 49.97% voting rights and 99% of the economic rights of Wamos Air S.A.U. (2) Basis of presentation of the consolidated financial statements The interim condensed consolidated financial statements as of and for the six months ended June 30, 2026, have been prepared in accordance with IAS 34 Interim Financial Reporting. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements as of December 31, 2025. The Group's interim condensed consolidated financial statements as of and for the six months ended June 30, 2026, were prepared and presented by management and authorized for issuan ce by the Board on August 12, 2026.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 12 (3) Material accounting policies The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2025, except for the new standards effective as of January 1, 2026 (see note 4). (4) New and amended accounting standards The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. The new standards, interpretations and amendments with implementation effective from January 1, 2026, are as follows: Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 In May 2024, the IASB issued Amendments to IFRS 9 and IFRS 7, Amendments to the Classification and Measurement of Financial Instruments (the Amendments). The Amendments include: (a) Clarifications of the requirements for recognition and derecognition of financial assets and financial liabilities. In particular, a financial liability is derecognised on the ‘settlement date’ and an accounting policy choice is introduced (if specific conditions are met) to derecognise financial liabilities settled using an electronic payment system before the settlement date. (b) Additional guidance on how the contractual cash flows for financial assets with environmental, social and corporate governance (ESG) and similar features should be assessed. (c) Clarifications on what constitute ‘non-recourse features’ and what are the characteristics of contractually linked instruments. (d) The introduction of disclosures for financial instruments with contingent features and additional disclosure requirements for equity instruments classified at fair value through other comprehensive income (OCI). The application of these amendments did not have a material impact on the Group’s financial statements. Annual Improvements to IFRS accounting Standards – Volume 11 In July 2024, the IASB issued nine narrow scope amendments as part of its periodic maintenance of IFRS accounting standards. The amendments include clarifications, simplifications, corrections or changes to improve consistency in IFRS 1 First -time Adoption of International Financial Reporting Standards, IFRS 7 Financial instruments: Disclosure and its accompanying Guidance on implementing IFRS 7, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements and IAS 7 Statements of Cash Flows. The application of these annual improvements did not have a material impact on the Group’s financial statements.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 13 (5) Seasonality of operations The results of operations for any interim period are not necessarily indicative of those for the entire year due to the fact that the business is subject to seasonal fluctuations. These fluctuations are the result of high vacation and leisure demand occurring during the northern hemisphere’s summer season during the third quarter (principally in July and August) and again during the fourth quarter (principally in December) as well as in January. The lowest levels of passenger traffic are typically concentrated in the months of February, March, and May (depending on whether the Easter holiday falls in March or April). Given the proportion of fixed costs, the Group expects quarterly operating results to continue to fluctuate on a quarterly basis. This information is provided to allow for a better understanding of the results. However, management has concluded that this is not ’highly seasonal’ in accordance with IAS 34. (6) Risk management activities Cash flow hedges of aggregated exposures arising from fuel price risk In accordance with its risk management policy, the Group applies cash flow hedge accounting to certain aggregated exposures comprising highly probable forecast passenger jet fuel purchases and related derivative positions. The Group designates the intrinsic value of the relevant option contracts as the hedging instrument, while the time value is accounted for separately as a cost of hedging in accordance with IFRS 9. The Group has concluded that an economic relationship exists between the hedging instruments and the aggregated exposures, with credit risk not dominating the hedge relationships. During the six months ended June 30, 2026, and for the three months period from April 1 to June 30, the Group recognized a net gain of $147,078 and net gain of $87,767, respectively in profit or loss under the line -item aircraft fuel and representing the effective portion of cash flow hedges reclassified from equity upon maturity. As of June 30, 2026, the fair value of outstanding passenger fuel hedges resulted in a net loss of $33,411 recognized in Other Comprehensive Income. This amount comprises: (i ) $23,070 related to changes in the intrinsic value of the options designated as hedging instruments, recognized in the cash flow hedge reserve; and (ii) $10,341 related to changes in the time value of the options, recognized in other comprehensive income as cost of hedging within a separate component of equity. These derivative positions are recorded on the Interim condensed consolidated statements of financial position under the line item Deposits and other assets of $4,950 of premiums (see Note 10) and Other liabilities of $27,786. During the period, changes in the cash flow hedge reserve primarily relate to (i) the effective portion of changes in fair value of hedging instruments recognized in other comprehensive income and (ii) amounts reclassified to profit or loss upon occurrence of the hedged transactions. Collateral As of June 30, 2026, the Group had transferred cash amounting to $45,260 to fulfill the collateral requirements associated with its derivative contracts. The counterparties are contractually obligated to return these amounts to the Group upon settlement or termination of the related contracts. This amount has been presented as other assets (see Note 10) in the interim condensed consolidated statement of financial position.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 14 (7) Cash and cash equivalents and Short-Term Investments June 30, 2026 December 31, 2025 Cash on hand $ 509 $ 479 Bank balances (1) 698,709 930,616 Total cash $ 699,218 $ 931,095 Cash equivalents $ 37,121 $ 12,591 Total cash and cash equivalents $ 736,339 $ 943,686 Short - term investments $ 148,153 $ 156,748 Time deposits 69,357 61,324 Total short - term investments $ 217,510 $ 218,072 (1) As of June 30, 2026, and December 31, 2025, the majority of the bank accounts pay interest to the Group for the daily or monthly balances. As of June 30, 2026, the Group maintains a Revolving Credit Facility with a total commitment up to $200 million, which was fully undrawn and available as of that date. (8) Trade and other receivables, net of expected credit losses June 30, 2026 December 31, 2025 Trade accounts receivable $ 266,972 $ 244,007 Other accounts receivable 26,149 53,798 293,121 297,805 Less estimate for expected credit loss $ (11,883) $ (10,584) Total Trade and other receivables, net of expected credit losses $ 281,238 $ 287,221 The fair value of trade and other accounts receivable does not differ significantly from the book value.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 15 |(9) Financial assets and liabilities with related parties For the six months ended June 30, June 30, 2026 December 31, 2025 2026 2025 Company Country Nature of relationship with related parties Nature of related parties transactions Currency Financial assets with related parties Financial liabilities with related parties Financial assets with related parties Financial liabilities with related parties Revenue Expense Revenue Expense Investment Vehicle 1 Limited (1) Cayman Islands Shareholder Loans provided USD $ 145,483 $ — $ 138,776 $ — $ 6,707 $ — $ 6,098 $ — Payment on Behalf and Fees USD 36,739 1,631 31,204 1,650 — 267 — 267 Abra Group Limited United Kingdom Indirect Shareholder Services received USD — 10,180 — — — 20,353 — 16,772 Payment on Behalf USD 11,634 — 6,810 — — — — — Gol Linhas Aereas S.A. Brasil Fellow subsidiary Services received and provided USD 22,204 412 1,282 613 331 3,426 — 48 Others — — — USD 994 172 427 90 3,057 617 2 782 Total $ 217,054 $ 12,395 $ 178,499 $ 2,353 $ 10,095 $ 24,663 $ 6,100 $ 17,869
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 16 June 30, 2026 December 31, 2025 Financial assets with related parties Financial liabilities with related parties Financial assets with related parties Financial liabilities with related parties Short term $ 50,571 $ 12,395 $ 39,723 $ 2,353 Long term 166,483 — 138,776 — Total related parties $ 217,054 $ 12,395 $ 178,499 $ 2,353 (10) Prepayments and Deposits and other assets Short Term Long Term Total Note June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Prepayments Insurance $ 8,646 $ 6,799 $ — $ — $ 8,646 $ 6,799 Other 7,016 4,511 — — 7,016 4,511 Total Prepayments $ 15,662 $ 11,310 $ — $ — $ 15,662 $ 11,310 Deposits and other assets Deposits with lessors $ 3,612 $ 6,283 $ 106,495 $ 97,689 $ 110,107 $ 103,972 Guarantee deposits 5,409 8,846 15,632 15,237 21,041 24,083 Fuel derivative 6 4,950 — — — 4,950 — Travel agency commissions 12,730 11,294 — — 12,730 11,294 Labor lawsuits — — 22,323 24,395 22,323 24,395 Long-term investments — — 8,160 8,527 8,160 8,527 Other assets (1) 70,146 16,485 23,762 24,130 93,908 40,615 Total Deposits and other assets $ 96,847 $ 42,908 $ 176,372 $ 169,978 $ 273,219 $ 212,886 Total $ 112,509 $ 54,218 $ 176,372 $ 169,978 $ 288,881 $ 224,196 (1) As of June 30, 2026, the Group maintains restricted cash of $47,693, pledged from its checking and savings accounts to fulfill collateral requirements classified as deposits and other assets according to the definition of demand deposit - IAS 7 (December 31, 2025: $40,250). Additionally, amounts of 45,260 were recognized in respect of cash posted as collateral to support fuel hedging transactions (see Note 6).
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 17 (11) Property and equipment The tables presented below detail the cost activity recognized in each asset class for the period presented. Flight Equipment Capitalized Maintenance Rotable Spare parts Predelivery payments Administrative Property Other equipment Total Cost January 1, 2026 $ 291,059 $ 827,806 $ 239,649 $ 270,146 $ 118,540 $ 120,141 $ 1,867,341 Additions 176,462 284,184 38,927 117,745 — 4,231 621,549 Disposals (50,645) (20,843) (5,041) (14,737) — (4,509) (95,775) Transfers 3,276 1,747 (7,959) (1,281) — 4,217 — Transfers from assets held for sale — — 24 — — 41 65 Reclassification from (to) right of use assets (23,997) — (5,600) (2,286) — 6,767 (25,116) Foreign currency translation (547) (577) (165) — — (195) (1,484) June 30, 2026 $ 395,608 $ 1,092,317 $ 259,835 $ 369,587 $ 118,540 $ 130,693 $ 2,366,580
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 18 Accumulated depreciation: January 1, 2026 $ 22,978 $ 107,397 $ 29,112 $ — $ 8,360 $ 53,551 $ 221,398 Additions 20,670 79,743 7,275 — 1,709 8,608 118,005 Disposals (8,307) (20,843) (3,245) — — (1,421) (33,816) Transfers 561 — (561) — — — — Transfers from assets held for sale — — 17 — — 40 57 Reclassification from (to) right of use assets 1,633 — (127) — — — 1,506 Foreign currency translation — (142) (9) — — (2) (153) June 30, 2026 $ 37,535 $ 166,155 $ 32,462 $ — $ 10,069 $ 60,776 $ 306,997 Net balances: June 30, 2026 $ 358,073 $ 926,162 $ 227,373 $ 369,587 $ 108,471 $ 69,917 $ 2,059,583 Non- cash transactions The Group had non-cash additions of property and equipment that were settled with accounts payables, capitalized interests and others of $53,492 during the six months ended June 30, 2026
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 19 (12) Leases Information about leases for which the Group is a lessee is presented below: Right of use assets Aircraft and engines Real estate Total January 1, 2026 $ 2,850,851 $ 76,229 $ 2,927,080 Additions (1) 90,494 962 91,456 Depreciation expense (243,456) (6,333) (249,789) Lease termination (75,318) (3,785) (79,103) Foreign currency translation (5,272) (56) (5,328) Reclassification from Property and Equipment 33,389 (6,767) 26,622 June 30, 2026 $ 2,650,688 $ 60,250 $ 2,710,938 (1) During the six months ended June 30, 2026, additions of the right -of-use assets of $91.456 include one new LEAP engine, and one new A320N aircraft lease agreement as well as amendments, incremental rent adjustment, contract extensions, sale and leaseback and other aeronautical and non -aeronautical lease agreements. Lease liabilities June 30, 2026 December 31, 2025 Current portion of lease liability Aircraft and engines $ 446,228 $ 374,407 Real estate 5,116 7,787 $ 451,344 $ 382,194 Long-term lease liability Aircraft and engines $ 2,155,747 $ 2,393,787 Real estate 58,450 60,123 $ 2,214,197 $ 2,453,910 Total lease liabilities $ 2,665,541 $ 2,836,104
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 20 Changes in liabilities derived from lease financing activities Note Aircraft and engines rentals – lease liabilities Other rentals – lease liabilities Total lease liabilities from financing activities January 1, 2026 $ 2,768,194 $ 67,910 $ 2,836,104 Additions (1) 83,025 1,976 85,001 Financial cost 19 148,287 2,378 150,665 Payments (169,277) (5,359) (174,636) Interest payments (148,287) (2,378) (150,665) Lease termination (77,647) (4,669) (82,316) Foreign exchange and others (2,320) 3,708 1,388 June 30, 2026 $ 2,601,975 $ 63,566 $ 2,665,541 (1) The additions in aircraft and engine rentals for the period ended June 30, 2026, of $85,001 include new lease of one LEAP engine, and one A320N aircraft lease agreement, as well as amendments, incremental leases, extensions, sale and leaseback and other aeronautical and non-aeronautical lease agreements. Provisions for return conditions Provisions for return conditions are as follows: June 30, 2026 December 31, 2025 Current $ 25,891 $ 28,122 Non-current 601,344 588,315 Total $ 627,235 $ 616,437 Changes in provisions for return conditions are as follows: June 30, 2026 As of January 1, 2026 $ 616,437 Recognition and remeasurement of provisions 32,411 Provision reversed (20,682) Present value adjustment 12,578 Provision used (13,498) Foreign exchange (11) As of June 30, 2026 $ 627,235
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 21 Future payments The following future payments include interest accrued on lease liabilities as of June 30, 2026. All amounts are gross and undiscounted. Aircraft and engines Real estate One $ 694,572 $ 14,561 Two 560,305 9,730 Three 552,788 9,399 Four 495,545 8,723 Five 391,150 8,199 Six and later 978,719 37,334 $ 3,673,079 $ 87,946 (12.1) Obligations with lessors June 30, 2026 December 31, 2025 Return Costs $ 6,984 $ — Total $ 6,984 $ — Current $ 2,186 — Non-Current 4,798 — Total $ 6,984 $ — For the six months ended June 30, 2026, the Group made principal payments of $6,601 related to its lease obligations and obtained new financing of $13,498. These amounts were recognized in accordance with the contractual terms and reflected in the statement of cash flow.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 22 (13) Debts June 30, 2026 December 31, 2025 Notes $ 61,996 $ 35,996 Other debt 82,682 79,224 Total short term $ 144,678 $ 115,220 Notes $ 2,135,715 $ 2,080,286 Other debt 450,162 346,804 Total long Term $ 2,585,877 $ 2,427,090 Total $ 2,730,555 $ 2,542,310
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 23 Terms and conditions of the Group’s outstanding obligations for the periods presented is as follows: Annual Covenant s Issuer Issuer country Currency Prinicipal amount outstanding Carrying Value Issuance date Maturity Date Effective rate Nominal rate Amortizatio n Notes June 30, 2026 December 31, 2025 Senior Secured Notes 2031 (1) * Avianca Midco 2 PLC United Kingdom USD $ 750,000 $ 769,557 $ — 2026 2031 10.12% 9.50% Maturity Senior Secured Notes 2030 * Avianca Midco 2 PLC United Kingdom USD 1,000,000 1,010,596 1,008,052 2025 2030 10.77% 9.63% Maturity Tranche A-1 Senior Exchange Notes (1) * Avianca Midco 2 PLC United Kingdom USD 415,157 414,765 1,105,436 2025 2028 9.60% 9.00% Maturity Tranche A-1 Senior unsecured Notes * Avianca Midco 2 PLC United Kingdom USD 2,774 2,793 2,794 2024 2028 9.21% 9.00% Maturity Other Debt USA VFlow II Facility * Avianca S.A and Taca International S.A Colombia El Salvador USD 162,500 160,320 183,975 2024 2029 12.07% 10.12% Monthly Taca Credit Card Flow Limited * Taca International S.A El Salvador USD 85,123 82,770 92,685 2024 2028 7.98% 6.30% Monthly Predelivery Payments Financing (2) * Avianca S.A Colombia USD 170,592 167,109 102,839 2024 2030 7.77% 7.00% Monthly Aircraft Debt * Avianca S.A Colombia USD 99,571 99,410 — 2026 2034 6.69% 6.69% Quarterly CA V Facility * Avianca S.A Colombia USD 23,220 23,224 25,800 2025 2030 8.40% 8.07% Monthly Other debts * Avianca S.A Colombia USD 12 11 1,512 2023 2026 13.00% 13.00% Monthly Wamos Loan (3) * Wamos Air S.A.U Spain USD — — 19,217 2025 2030 15.59% 8.53% Quarterly Total $2,730,555 $2,542,310 (1) During the six months ended June 30, 2026, Avianca Midco 2 PLC issued $750,000 aggregate principal amount of Senior Secured Notes due 2031. The net proceeds were primarily used to redeem $694,000 aggregate principal amount of its Tranche A-1 Senior Exchange Notes. In connection with the early redemption, the Group incurred debt call premium of $15,615 as part of the extinguishment of debt. (2) During the six months ended June 30, 2026, the Group obtained $78,270 in PDP financing and made repayments of $14,737, re sulting in a net increase of $63,533 in the nominal value of the financing. (3) On March 9, 2026, Wamos Air S.A.U. prepaid in full the outstanding loans under the Wamos Loan in the aggregate amount of $22, 331, including principal and accrued interest. In connection with the early redemption, the Group incurred debt call premium of $330 as part of the extinguishment of debt.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 24 (*) Existing Covenants as of June 30, 2026 The Group´s debt facilities contain certain covenants restricting the Group’s ability to, make certain types of restricted payments and incur debt beyond specific thresholds, grant liens, merge or consolidate with others, dispose of assets, enter into certain transactions with affiliates, engage in certain business activities or make certain investments, in all cases subject to customary baskets and exclusions. In terms of financial covenants, the Group is required to maintain a consolidated cash balance of no less than $400 million. Furthermore, certain debt facilities require the delivery of interim and annual financial statements within specific timeframes, as stipulated. As of June 30, 2026, the Group complied with all financial and non -financial covenants associated with its debt contracts. Bank guarantees In order to comply with certain contractual or operating obligations, as of June 30, 2026, the Group had a total of $29,342 (December 31, 2025: $26,262) in guarantees issued through financial entities. These guarantees are issued in favor of third parties. Abra’s Pledge of IV1L Shares As of the date of these interim condensed consolidated financial statements, IV1L, AGIL’s sole shareholder, is a subsidiary of Abra. Abra has pledged all of its ordinary shares of IV1L as collateral securing, Abra Senior Secured Notes due 2029, Abra Term Loan and ABRA senior secured exchangeable notes due 2028. Certain of the debt instruments and aircraft leases of IV1L’s subsidiaries, including, among others, the Tranche A-1 Senior Exchange Notes, the Tranche A-1 Senior Unsecured Notes, Senior Secured Notes 2030 and the Senior Secured Notes 2031 (together, the “Notes”) issued by Avianca Midco 2 PLC (“Midco 2”), contain change of control provisions that may be triggered if the pledged IV1L shares were foreclosed upon by Abra’s noteholders. In the event of a change of control (as defined in the indentures with respect to the Notes) that results in a specified decline in the ratings of the Notes, Midco 2 would be required to offer to repurchase the Notes at a price of 101% of the outstanding principal amount. Debt Collaterals As of June 30, 2026 and December 31, 2025, obligations under short-term loans and long-term debt amounted to $2,730,555 (December 31, 2025: $2,542,310) and were secured by a substantial portion of our assets, including: (i) shares of substantially all of our operating subsidiaries, (ii) security over certain aircraft, engines and spare parts, (iii) a lien on the Avianca administrative building located in Bogotá, Colombia, (iv) security over slots at certain airports, (v) certain credit card and cargo receivables, (vi) cash and cash equivalents pledged in deposit or security accounts, (vii) certain intellectual property rights, and (viii) all tangible and intangible assets of Lifemiles Ltd. and its subsidiaries. In addition, as of December 31, 2025, certain of the foregoing obligations were further secured by 100% of the shares of Wamos Air S.A., owned by Wav Air Holdings. Such pledge was released in March 2026 and was no longer in effect as of June 30, 2026.
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 25 Changes in liabilities derived from financing activities Note Current and non- current debt activities January 1, 2026 $ 2,542,310 New Loans (1) 853,289 Predelivery Payments Financing 63,533 Financial cost 19 139,796 Payments (2) (759,326) Interest payments (97,439) Transaction cost (11,008) Foreign exchange and others (600) June 30, 2026 $ 2,730,555 Non- cash transactions (1) During the six months ended Jun 30, 2026, the Group recognized non -cash new loan of $5,000 for airframe financing. (2) The difference between these payments and the amounts disclosed in the Interim condensed consolidated statements of cash flows arises from non-cash transactions associated with a payment in kind with miles for $2,003 (six months ended June 30, 2025: $2,003). Future payments of long-term debt The following table presents the future contractual payments, including interest, related to long-term debt as of June 30, 2026. Amounts are presented on a gross and undiscounted basis, include contractual interest payments, and exclude the effects of any netting arrangements. Within one year $ 326,903 Between 1 and 2 years 312,238 Between 2 and 3 years 700,113 Between 3 and 4 years 1,219,462 Between 4 and 5 years 846,852 More than 5 years 230,063 Total $ 3,635,631
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 26 (14) Share Capital June 30, 2026 June 30, 2025 Ordinary shares issued and paid 39,611,023 39,611,023 Share capital (in US) $ 3,961 $ 3,961 The nominal value per share is $0.0001 Expressed in cents. Common shares Holders of these shares are entitled to dividends as declared from time to time. Issue of ordinary shares There were no movements during the period ended June 30, 2026 and 2025 (15) Fair value measurements On June 30, 2026, the Group maintained financial instruments that should be recorded at fair value. There were no changes in the Group’s valuation processes, valuation techniques, or types of inputs used in the fair value measurements during six months ended June 30, 2026, compared to December 31, 2025. The significant unobservable inputs and the sensitivity analysis of changes in such inputs used in the Level 3 fair value measurements as of June 30, 2026, are consistent with those disclosed as of December 31, 2025, with no significant changes during the period. The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities as of: June 30, 2026 Fair value measurement using Note Fair Value Quoted prices in active markets Significant observable inputs Significant unobservabl e inputs Level 1 Level 2 Level 3 Assets measured at fair value Derivative instruments fuel hedge 6 $ 4,950 $ — $ 4,950 $ — Short-term investments 6,263 — 6,263 — Revalued administrative property 11 108,471 — — 108,471 Liabilities measured at fair value Derivative instruments 6 27,786 — 27,786 — Contingent consideration liability 13,437 — — 13,437
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 27 Reconciliation of fair value measurement (Level 3): Contingent consideration liability January 1, 2026 $ 13,857 Effect of foreign exchange (420) June 30, 2026 $ 13,437 (16) Income tax expense and other taxes Components of income tax expense The Group calculates the income tax expense using the best estimate of the effective tax rate expected for the full financial year. The income tax expense is: For the Six months ended June 30, For the three months period from April 1 to June 30, 2026 2025 2026 2025 Current income tax: Current income tax charge $ (3,692) $ (17,377) $ (3,132) $ (13,180) Income tax expense related to prior years (579) (2,645) (244) (1,380) $ (4,271) $ (20,022) $ (3,376) $ (14,560) Deferred tax expense: Relating to origination and reversal of temporary differences 11,575 16,371 9,670 16,075 Income tax expense reported in the income statement $ 7,304 $ (3,651) $ 6,294 $ 1,515 During the six-month period ended June 30, 2026, the Group reported an income tax benefit of $7,304, with an effective tax rate of (2.29%), the utilization of previously unrecognized tax losses within the Avianca Group, and other permanent differences.. Uncertainty over income tax treatments The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessments of many factors, including interpretations of tax law and prior experience. There are no uncertainties over income tax treatments with adverse impacts for the Group identified in the assessments performed. Pillar 2
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 28 As of June 30, 2026, the formal obligations associated with the 2024 fiscal year have been satisfactorily met. In line with the conclusions derived from the assessments performed at the end of fiscal year 2025, no additional tax impacts were identified. The analysis considered all relevant Pillar 2 additional taxes. The Group has applied the temporary exception under IAS 12 for the recognition and disclosure of deferred tax assets and liabilities related to Pillar 2 income taxes. (17) Provisions for legal claims Changes in litigation provisions for the six months ended June 30, 2026, were as follows: June 30, 2026 As of January 1, 2026 $ 32,626 Additional provision in the period 22,783 Provisions reversed (6,340) Foreign exchange 2,496 Provisions used (1,544) As of June 30, 2026 $ 50,021 Certain processes are contingent liabilities and are therefore classified as potential future obligations and are subsequently categorized as possible. Based on plaintiffs’ claims for the period ended June 30, 2026, these contingencies totaled $107,132 (December 31, 2025: $126,338). (18) Net Revenue For the six months ended June 30, For the three months period from April 1 to June 30, 2026 % 2025 % 2026 % 2025 % Revenue: Passenger $ 2,414,029 79% $ 2,102,006 78% $ 1,215,394 78% $ 1,046,798 77% Cargo and other (1) 653,636 21% 579,955 22% 342,389 22% 310,642 23% Total revenue $ 3,067,665 100% $ 2,681,961 100% $ 1,557,783 100% $ 1,357,440 100% (1) This amount mainly includes Aircraft, Crew, Maintenance and Insurance ( ACMI) revenues of $154,218 for the six months ended June 30, 2026 (six months ended June 30, 2025: $159,012). The Group’s revenues by geographic area are as follows:
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 29 For the six months ended June 30, For the three months period from April 1 to June 30, 2026 2025 2026 2025 Colombia $ 1,331,200 $ 1,076,873 $ 691,925 $ 554,298 North America (1) 600,057 531,930 306,855 258,898 Central America and the Caribbean 362,543 386,721 184,035 200,601 South America (excluding Colombia) 468,578 387,784 233,020 186,105 Europe 305,175 298,602 141,850 157,505 Other 112 51 98 33 Total operating revenue $ 3,067,665 $ 2,681,961 $ 1,557,783 $ 1,357,440 (1) Include the United States for $487,415 (six months ended June 30, 2025: $438,708). The Group allocates revenues by geographic area based primarily on the first flight’s point of origin. Any individual country responsible for 10% or more of total operating revenue is presented separately. (19) Net interest expense The interest expense and income for the periods presented is as follows: Notes For the six months ended June 30, For the three months period from April 1 to June 30, 2026 2025 2026 2025 Debt interest 13 $ (139,796) $ (136,529) $ (63,742) $ (61,753) Lease interest 12 (150,665) (146,612) (76,425) (76,789) Prepaid debt call premiums (15,945) (6,788) — — Other interest expense (2,091) (16,951) 3,627 (2,071) Interest Income from cash and cash equivalents and short-term investments 21,712 20,152 10,809 9,806 Interest income - Intercompany loan agreement 9 6,707 6,098 3,145 3,085 Other financial income — 3,020 — — Total $ (280,078) $ (277,610) $ (122,586) $ (127,722) (20) Impairment of intangible asset During the six months ended June 30, 2026, the Group recognized an impairment loss of $24,971 on intangible assets associated with the cargo and courier business. (21) Commitments The following table reflects future commitments related to the acquisition of aircraft and engines as of June 30, 2026:
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A VIANCA GROUP INTERNATIONAL LIMITED Notes to the interim condensed consolidated financial statements (In thousands of United States dollar - US, unless otherwise noted) 30 Less than 1 year 1-3 years 3-5 years More than 5 years Total Aircraft and engine purchase commitments $ 726,079 $ 2,998,384 $ 3,469,976 $ 4,668,544 $ 11,862,983 The amounts disclosed reflect pricing terms negotiated with suppliers of as of the balance sheet date, which might vary subject to certain conditions such as inflation. The Group plans to finance these commitments through cashflow generation, financing and / or sale -lease-back arrangements with financial institutions and aircraft leasing companies. The Group has the option to purchase ten (10) additional aircraft under its purchase agreements. (22) Subsequent Events The Group has evaluated subsequent events occurring after June 30, 2026, through the date of authorization of the accompanying interim condensed consolidated financial statements. The following non -adjusting events, considered qualitatively or quantitatively material to the Group, occurred after the reporting date: • On July 7, 2026, Avianca Midco 2 PLC issued $650,000 aggregate principal amount of 10.25% Senior Secured Notes due 2032. The net proceeds from these issuances were primarily used to redeem its Tranche A-1 Senior exchange and unsecured notes due 2028 and for general corporate purposes, which may include the repayment in the future of certain of its outstanding indebtedness. The 2032 Notes are subject to certain covenants. • On July 21, 2026, the Group entered into long -term agreement for the acquisition, maintenance and support of LEAP-1A engines. The aggregate future commitment arising from this agreement amount to approximately $139,241. ****