Most AVIF files you encounter are lossy. The format supports both lossy and lossless encoding, but lossy AVIF is what cameras, image generators, and websites produce because it achieves far better compression ratios. Lossless AVIF exists and is occasionally used for graphics and icons, but it's not the common case. This matters when you see the phrase "lossless PNG output" because the lossless part refers to the conversion process, not to the original image. What happens here is that the AVIF gets fully decoded to its raw pixel state and those pixels get re-encoded into PNG without any further modification. The PNG is a pixel-perfect copy of what the AVIF contained. Nothing additional is lost in the conversion. But whatever compression the original AVIF encoding applied when the file was first created stays baked in.
In practical terms this is exactly what you want. If you're taking an AVIF logo with a transparent background and converting it to PNG for use in a presentation or document, you get every pixel exactly as the AVIF had it, including the full alpha channel. If you're pulling a photograph out of AVIF format for further editing, the PNG has the same visual content the AVIF had, with no new artifacts added. The PNG is just a different container for the same decoded pixels, one that every piece of software on the planet knows how to open.
The size difference between AVIF-to-PNG and AVIF-to-JPEG
Choosing between PNG and JPEG as the output format comes with a real file size tradeoff worth understanding before you convert. PNG encodes the decoded pixels losslessly, which for photographs means storing a lot of per-pixel variation that DEFLATE compression handles poorly. A 150KB AVIF photograph will typically become 1.5 to 3MB as PNG and 300 to 500KB as JPEG at quality 85. If the image is a photograph with no transparent background and you just need it to open somewhere that rejects AVIF, JPEG is a much more practical output. The additional lossy compression JPEG applies on top of the AVIF source is minimal at quality 85 and usually invisible at the sizes these images get displayed.
PNG makes sense when either the transparency has to survive the conversion or the image will go through additional editing steps. For a logo with a transparent drop shadow, converting to JPEG fills those transparent pixels with white, which makes the asset unusable on any non-white background. For an illustration you need to modify in Figma or Photoshop, PNG means you can save it as many times as the editing requires without accumulating compression artifacts from repeated JPEG encoding cycles. If after editing you want to bring the file size back down for web delivery, converting the finished PNG to AVIF or WebP gets you back to a compact format for delivery.
When PNG is the wrong choice and JPEG would work better
If you're converting an AVIF photo to submit to a portal, attach to an email, or share with someone who can't open the original format, PNG is rarely the right output. The large file size it produces for photographs creates new problems: a portal that accepts PNG but has a 2MB file size limit will still reject a 6MB PNG from a converted photo. And many official systems that list PNG as accepted actually expect small, compressed PNGs, not multi-megabyte lossless photo files. For submissions and sharing, the AVIF to JPG converter produces a much smaller, universally accepted file that handles those cases more reliably.