Colombia-based Avianca Holdings S.A. (NYSE: AVH) (BVC: PFAVH) has announced it has filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York to preserve and reorganize Avianca´s businesses, the company said.
The filing was necessitated by the unforeseeable impact of the COVID-19 pandemic, which has resulted in a 90% decline in global passenger traffic and is expected to reduce industry revenues worldwide by USD 314 billion, according to the International Air Transport Association.
Avianca´s scheduled passenger operations have been grounded since mid-March, reducing its consolidated revenue by over 80% and placing significant pressure on its cash reserves.
Avianca Holdings S.A. is the commercial brand for the collection of passenger airlines and cargo airlines under the umbrella company Avianca Holdings S.A. Avianca has been flying uninterrupted for 100 years. With a fleet of 158 aircraft, Avianca serves 76 destinations in 27 countries within the Americas and Europe.