AVIANCATACA HOLDING S.A. 2012 RESULTS

At the end of 2012 AviancaTaca Holding SA reported net profit of COP351,684 mn, up 73.9% compared to 2011.

The 2012 financial results of AviancaTaca Holding S.A. reflect sustained growth, a product of the expansion and consolidation strategy implemented by the Company.

Between January and December 2012, Avianca, TACA and its subsidiaries recorded an operating income of COP7,6bn, up 8.3% from 2011. Excluding the extraordinary adjustments in 2011 and 2012, operating income grew 10.7%. Operating profit for the year was COP506,889mn.

The EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft leasing payments) for 2012 was COP1,3bn and net profit increased 73.9% to COP351,684mn.

As a result of the steps taken to complement the network of routes, optimize the fleet and integrate the hubs located in Bogota, Lima, San Salvador and San Jose, Costa Rica, the Company maintained a balanced operational performance. Consistent with an increase of 10.3% in the ASK capacity (seats available per kilometer flown), passenger traffic in RPK (passenger revenue per kilometer flown) increased by 10.3 . The average load factor was 79.6.

In compliance with its aircraft fleet renovation and modernization plan, during 2012 the Company incorporated 14 new jet aircraft: two Airbus A330s, four Airbus A319, seven Airbus A320 and one Airbus A330F exclusively for cargo. It also announced the firm order for 15 ATR 72-600 aircraft and rights to purchase 15 more, which will be assigned to cover regional routes within Colombia and short- and medium-haul markets in Central America.

Distribution of Profits
The Board of Directors of AviancaTaca Holding S.A. met on February 26, 2013 and unanimously approved the proposed distribution of profits for the year 2012, which will be presented for consideration at the Ordinary General Meeting of Shareholders on March 21, 2013.

The profit distribution project contemplates the payment of dividends for COP$67,598 million. According to the provisions of the Articles of Incorporation and Prospectus Information regarding the issuing of preferred stock, dividends will be distributed equally to the holders of common and preferred shares. The declared dividend will be paid in a single installment which can be claimed beginning April 29, 2013.