One of the oldest airlines goes bankrupt
Avianca, one of the largest airlines in South America, has filed an application for creditor protection with the New York City court. The company will not be able to redeem $56 million worth of bonds by the end of the week.
The airline was established in Colombia in 1919 and is the second oldest air carrier in the world. Experts indicate that the company has had financial problems for years, and at the beginning of the 21st century it went through bankruptcy proceedings. The current COVID-19 pandemic is a challenge for Avianca, as its consolidated revenues have fallen by 80%.
In 2019, the company transported over 30 million passengers and generated revenue of USD 4.6 billion.
