Colombian airline Avianca files for bankruptcy

Avianca, one of Latin America’s largest airlines, has filed for bankruptcy.

Avianca, the second-largest airline in Latin America, has filed for bankruptcy protection in a US court.

The carrier failed to meet a bond payment deadline, as its pleas for financial aid from the Colombian government have proven unsuccessful.

With the impact of coronavirus cutting its income by more than 80%, the Colombian national airline said it filed for Chapter 11 to reorganise its debt “due to the unpredictable impact” of the pandemic.

More than 140 of its planes have been grounded since Colombian President Ivan Duque closed the country’s airports in March.

The airline plans to restructure its $5.3 billion debt, while positioning itself to resume operations as travel restrictions are gradually eased by governments around the world.

“Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic,” Anko van der Werff, Chief Executive Officer of Avianca, said in the statement.

The carrier hopes to emerge as a “better, more efficient airline that operates for many more years”.

If the airline fails to recover from its bankruptcy protection, Avianca will be the first major airline to go bust amid the pandemic.