Net Losses at Colombia's Avianca up 22% in 2020

Net losses at airline Avianca Holdings increased 22% to $1.09 billion in 2020, due to the near-paralysis of global air travel because of COVID-19, Reuters reported. The airline, which is carrying out a restructuring process under the chapter 11 bankruptcy law, had losses of $894 million in 2019. Operations contracted 74% year-on-year, the airline said in a filing to Colombia’s financial regulator, while operating income was down to $1.71 billion, from $4.62 billion in 2019. Keeping passenger planes grounded due to coronavirus meant Avianca reduced its costs to $2.3 billion in 2020 from $5.17 billion the year before, the statement said. Passenger numbers fell 74% to 7.9 million, the company said, and 33% of income was provided by $556 million in earnings from its cargo business. In October a U.S. bankruptcy court approved a proposed financing plan of over $2 billion to help the carrier exit chapter 11 restructuring. The company had $911 million in cash at the close of last year and still-available financing commitment of $350 million. Read more.