May 10, 20 - 6:23 pm - LABS

Second-largest airline in Latin America, Avianca files for bankruptcy over pandemic

According to the Financial Times and La República, the second-largest carrier in Latin America, after Latam, has filed for Chapter 11 bankruptcy in the US on Sunday due to the impacts of COVID-19. The company, which has more than 21,000 employees in Latin America, says that it has lost over 80% of its revenues.

Due to the new coronavirus, worldwide traffic has dropped 90% and is expected to have an impact of $314 billion across the industry, according to the International Air Transport Association (IATA).

In the document the airline says that it is committed to ensuring connectivity and boosting investment and tourism by continuing “as the main airline in Colombia”, providing services to more than 50% of the domestic market in the country and an essential service nonstop throughout South America, North America, and the European markets; as well as continue with cargo operations, playing a key role in the economic recovery of Colombia and the other main markets of the company after the COVID-19 pandemic.