Avianca : Reports Third Quarter 2017 Adjusted Operating Income1 of $131.5 Million

Bogota, Colombia, November 14, 2017 - Avianca Holdings S.A. (NYSE: AVH, BVC: PFAVH) today reported its financial results for the third quarter of 2017 (3Q 2017). All figures are expressed in millions of US dollars unless otherwise stated. The information within is presented in accordance with International Financial Reporting Standards (IFRS). The reconciliation between IFRS and non-IFRS financial information can be seen in the financial tables section of this report. Except when noted, all comparisons refer to third quarter 2016 (3Q 2016) numbers. Figures and operating metrics of Avianca Holdings S.A. ("Avianca Holdings" or "the Company") are presented on a consolidated basis.

Third Quarter 2017 Highlights

• On September 20, 2017, approximately 700 pilot members of the ACDAC Colombian pilots union made the unilateral decision to strike, thereby impacting Avianca's operations. The following results therefore reflect third quarter 2017 results on an adjusted basis.

• Adjusting for the pilot strike, 3Q2017 results were primarily driven by a 12.3% increase in total operating revenues1 as the Company benefited from increased traffic, strong load factors and continued yield recovery. Moreover, Cargo and Other revenues1 increased 26.2% year-on-year, primarily driven by an increase in transported tons as well as increased revenues from mile redemption and other services. This was offset by an 8.4% increase in operating expenses1.

• Adjusted Net Income excluding special items totaled $78.9 million, compared to a gain of

  $ 37.8 million in 3Q 2016. Adjusted net income margin1 for 3Q 2017 therefore reached 6.6%; a 213 bps year-on-year increase. Operating income (EBIT1) adjusted for the pilot strike reached $131.5 million, with an operating margin1 of 11.0%. Further, operating revenues reached $1.19 billion for the quarter; a 12.3% year-on-year increase1.

• For the third quarter 2017, yields reached 9.2 cents; a 4.3% increase when compared to 3Q 2016. This trend was supported by a 4.9% year-on-year increase in third quarter 2017 traffic numbers (RPKs) as well as an average fare increase of 8.2%.

• Cost per available seat kilometer (CASK1) increased 4.8%, to 8.56 cents, in the 3Q 2017, compared to 8.2 cents in 3Q 2016. This was primarily driven by higher effective jet fuel prices, which on average increased by 23.1% in the third quarter of 2017, as well as by a 34.5% year-on-year increase in General, Administrative and Others and a 17.7% increase in Maintenance and Repairs expenses. The latter was partially offset by a -11.2% decrease in Aircraft Rental expenses. 3Q2017 CASK ex-fuel1 therefore increased 2.7%, to 6.6 cents.

• EBITDAR1 for the 3Q 2017 was $278.6 million, while the EBITDAR margin1 reached 23.4%; a 300 bps year-on-year increase.

• 3Q 2017 capacity, measured in Available Seat Kilometers (ASKs), increased by 3.5% during 3Q 2017, despite a pilot strike which began on September 20. This was primarily due to the effect of the international capacity deployed to Europe and a capacity increase from our Home Markets to North America in during the third quarter 2016. Passenger traffic, measured in Revenue Passenger Kilometers (RPKs), increased by 4.9% in the third quarter 2017, reaching a strong consolidated load factor of 84.6% across the network.

• Avianca incorporated its first brand new A321 NEO Aircraft in the third quarter 2017, in accordance with the Company's fleet plan. The NEO technology provides fuel efficiencies of up to 20% with significant reduction in CO2 and noise emission. Avianca Holdings S.A. and its subsidiaries ended the quarter with a consolidated operating fleet of 180 aircraft.

AVIANCA HOLDINGS S.A.

NYSE: AVH BVC: PFAVH

(9 months ended September 30 th)

*Excluding Fx and Derivative Charges

1Excluding items on footnote 1

(3 months ended September 30 th)

*Excluding Fx and Derivative Charges

1Excluding items on footnote 1

(9 months ended September 30 th)

*Excluding Fx and Derivative Charges

1Excluding items on footnote 1

(3 months ended September 30 th)

*Excluding Fx and Derivative Charges

1Excluding items on footnote 1

(9 months ended September 30 th)

(3 months ended September 30 th)

Contact Information: Avianca Holdings S.A.

Investor Relations Office

ir@avianca.com

1. When indicated the figures are adjusted by the following one-time items:$-31,580m: Foregone Revenues; $-14,530M: ACDAC's operatives expenses; $ 6,522M: Aerogal's Reservs Adjust: Opex; $ 1,356MM Opex: Engines Incidents B787.

CEO Message

Dear Shareholders,

This proved to be an extraordinary quarter for Avianca in many ways. From a business perspective, our ongoing focus on operational efficiency, combined with strong demand patterns across our network, were reflected in Avianca transporting the highest number of passengers in the Company's history for a third consecutive quarter. We are also very proud to mention that Avianca was selected to be the Vatican's airline of choice during Pope Francis's visit to Colombia from the 8th through the 10th of September.

We experienced particularly strong customer demand during this summer vacation season, in line with a strengthening economic environment throughout the region. Traffic measured in RPK to Central America and the Caribbean leisure destinations increased by 11.9% year on year, reaching a 78.5% consolidated load factor, while demand to Europe and North America continued its strong trend with RPKs growing 12.2% and 6.2%, respectively. As a result, Avianca achieved an 84.6% consolidated Load Factor for the third quarter 2017; the highest in the Company's history.

Avianca customers' loyalty resulted in another profitable third quarter for the Company, as yields1 continued to recover, reflected in an upward sequential trend and a 4.33% year over year increase in yields. I am therefore pleased to let you know that we achieved operating revenues of almost USD $1.2 billion, as well as a 11.0% EBIT margin1 for the third quarter; the second highest in company history as can be seen in a 12.3%, or 318 basis point increase, respectively.

In addition to robust numbers from our passenger business, we continued to see strong operational performance at Avianca's Cargo and other business in the third quarter. Improvements to our top line were driven by the cargo business unit, with an 8.8% year over year increase in transported tons, as well as by increased demand related to the code share agreement signed between Avianca and Etihad in the second quarter of 2016. Avianca Cargo recorded a consolidated load factor of 58.4% for the quarter, while Avianca's LifeMiles LTD subsidiary also generated strong results, with an increase in revenues of 8.8% year on year. Further, LifeMiles grew its cobranded credit card business by 21.7%, reaching a total of 626,000 credit cards while it continued to expand its customer base by 9%, to 7.5 million members.

As we have commented in the past, we remain committed to improving Avianca's capital structure, and again made important progress this quarter. Avianca's LifeMiles subsidiary raised a total of USD $300 million through a private placement completed in the third quarter of this year. Avianca's leverage ratio, measured as Net Debt/ EBITDAR, therefore came in at 5.6X for the quarter.

I'd like to take this opportunity to comment on developments related to the contract and labor negotiations between Avianca S.A. and the "ACDAC" (Asociación Colombiana de Aviadores Civiles) Colombian Pilots union. As most of you know, despite tireless efforts to reach a mutually acceptable agreement, Avianca's various proposals to the pilot's union have been rejected and, regrettably, no agreement has been reached to date. Unfortunately, on September 20, 2017, nearly 700 pilot members of the ACDAC made the unilateral decision to strike, which is deemed illegal by the Colombian constitution as air travel is considered an essential public service. In response, Avianca quickly enacted its emergency plan. This plan entailed operating larger capacity aircraft in our domestic market, which is a more efficient use of our staff while also ensuring service to key domestic hubs. As a result, we successfully mitigated the strike's negative impact on our operations and customers, and today are operating at 80% of Avianca's pre-strike capacity measured in ASK. Because of the strike has Colombia's Ministry of Labor decided to convene a labor tribunal to resolve the conflict. Avianca is confident that this tribunal, as established by Colombia's Labor Code, is the appropriate forum to settle any ongoing labor disputes. We look forward to the tribunal´s ruling, which will establish working conditions that will govern its relationship with the ACDAC moving forward. As of November 10, the Pilot union officially declared the end to their strike. All pilots pertaining to the ACDAC syndicate will resume work starting November 13. Looking ahead to the fourth quarter's peak season, we are committed to further reducing the strike's potential impact on our passengers, with a focus on maintaining the best in class service and product quality that our customers have come to expect.

In summary, while Avianca experienced certain challenges, we were nevertheless able to deliver record results for the third quarter of 2017. The Pilot strike will have an adverse effect on our 4th Quarter results. However, as we position Avianca for long-term success, the Pilot strike will not have a material impact. Our Company remains well positioned to generate further efficiencies going forward. As such, we maintain our full year EBIT margin guidance of 7%-9%. We expect to close 2017 with a solid foundation, leveraging our significant success this quarter to maintain sustainable growth as demand in our markets continues to strengthen.

Sincerely,

Hernán Rincón

Chief Executive Officer

(Adjusted: Excluding non-cash Fx charges, gain or loss on derivative instruments and special items associated to one-time expenses described in footnote (1))

Avianca Holdings reached an operating income (EBIT1) of $131.5 million, with an 11.0% operating income (EBIT1) margin. These results were primarily driven by a 12.3% increase in total operating revenues1 as the Company benefited from record load factors and strong passenger traffic as well as ongoing yield recovery. Passenger revenues1 therefore increased by 9.4%; while Non-Passenger Revenues1 increased 26.2%, in part due to strong performance in the Cargo business line as well as to higher revenues from mile redemption and other services. The latter was partially offset by an increase in operational expenses1, primarily driven by higher fuel costs and an 8.5% increase in Salaries Wages and Benefits expenses resulting from a 3.5% increase in relocation costs associated with Avianca's MRO facility in Rio Negro.

Total operating revenues1 amounted to approximately $1.19 billion during 3Q 2017. This represents the strongest third quarter revenue since the Company's integration with TACA, with a 12.3% year-on-year increase, mainly due to a 9.4% increase in passenger revenues1. In addition to increased traffic and strong load factors, Avianca also benefited from an 8.2% increase in average fare this quarter, resulting in further yield recovery. Moreover, Cargo and Other revenues1 increased 26.2%, primarily driven by increased revenues from mile redemption and other services as well as an 8.8% increase in transported tons. Cargo and other revenues1 represented 19.2% of total revenues in the third quarter 2017.

The LifeMiles Loyalty Company continued to deliver strong results during the 3Q 2017, with an 8.8% year- on-year increase in revenues. LifeMiles expanded its membership by 9.0% since the third quarter 2016, ending this quarter with almost 7.6 million members. The retail partnership program also continued to expand, reaching 322 partners this quarter; a 6.3% increase from the third quarter of last year. Finally, LifeMiles' active co-branded cards ended the quarter with more than 626,000 cards; a 21.7% year-on-year increase.

Avianca transported more than 7.6 million passengers in the third quarter of 2017; a 0.1% year-on-year increase due to the effects of the pilot strike which began on September 20. Despite the strike, traffic figures (RPKs) continued to increase well above capacity (ASKs), resulting in a consolidated load factor of 84.6%, the highest load factor on record since the Company's merger with TACA. In particular, routes to Europe reached an average consolidated load factor of 87.8%, while domestic routes in Colombia reached a healthy 84.8% during the third quarter 2017.

3Q 2017 operating expenses1 were $1.06 billion; an 8.4% year-on-year increase. This was primarily driven by a 13.0% increase in Fuel Expenses associated with increased jet fuel prices as the Company's effective jet fuel prices increased by 23.0%, from an average of US$1.69 in the third quarter 2016 to US$1.83 per gallon. Further, Maintenance and Repair expenses increased 17.7% primarily driven by an increase in preventive engine repairs as well as the reclassification of engine reserves to non-recoverable due to a change in engine repair staggering. Salaries, Wages and Benefits expenses increased 8.5%, primarily driven by a 3.5% increase in relocation costs associated with Avianca's MRO facility in Rio Negro. These results were partially offset by an 11.2% decrease in Aircraft Rental Costs for the third quarter 2017, mainly due to the change from an operational lease to a financial lease for Avianca's A318 fleet.

As part of the Company's ongoing fuel hedging strategy, a total of 68.2 million gallons of fuel were hedged at the end of the third quarter 2017, out of which 39.5 million gallons correspond to approximately 35.0% of the total expected volume to be consumed over 2017. The remaining volume represents approximately 6.3% of the total expected fuel consumption for 2018. Coverage levels were set at approximately $1.46 per gallon.

In accordance with the Company's fleet plan, Avianca incorporated its first brand new A321 NEO Aircraft between June and September 2017. The NEO technology allows for fuel efficiencies of up to 20% and a significant reduction in CO2 and noise emissions. Avianca Holdings S.A. and its subsidiaries therefore ended the quarter with a consolidated operating fleet of 180 aircraft.