LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
No Result
View All Result
ADVERTISEMENT

Avianca Posts $68 Million Loss & Bonds Downgraded To Deeper In Junk

by John Ollila
May 17, 2019
Reading Time: 2 mins read
2

Avianca Holdings has reported $68 million loss for the first quarter of this year and its debt has been further downgraded deeper to junk.

The airline has canceled an order of 17 aircraft with Airbus and delayed another 35. The airline reached a load factor of 82.1% during the quarter.

Here’s an excerpt from Bloomberg (access their piece here):

ADVERTISEMENT

Avianca’s dollar bonds are trading at distressed levels following a spate of bad news for Colombia’s biggest airline.

Avianca Bond Prices

Avianca Holdings SA $550 million of dollar bonds due in May 2020 plunged this week, sending the yield to 18.6%, from 9.7% at the start of the month. The shares also fell to a record low this week, making them both the worst-performing Colombian stock and the worst-performing Latin American airline this year.

Here’s an excerpt from W Radio (Colombian news outlet – access here):

Other important issues were touched on in the report, one of which is the adjustment in the fleet plan, confirming that Avianca achieved the renegotiation with the manufacturer Airbus for the cancellation of 17 airplanes that had to be delivered and equally paid in the course of the following two years, added to this, the deferral of the incorporation of 35 units was also achieved, generating a cash protection of 350 million dollars until 2021. Within the adjustments, the holding company also confirmed that it postponed the leases in term of contracts of several aircraft which will represent a saving of 14 million dollars per year.

Market Cap Is Rather Low:

Google Financa Avianca

 Conclusion

It is not looking good for Avianca. Further losses and bonds are in distressing territory. The owner has also breached some loan covenants with United. The Avianca Brazil basically went under and its slots are auctioned off (same owner but no other ties to the Brazilian airline).

Avianca is trying to scale down its operations by canceling some plane orders and postponing others. We all hope that Avianca can pull it through and get its financials back in order.

Previous Post

Choice Privileges Award Booking Issue Being Resolved

Next Post

DOT Tentatively Awards 12 Haneda (Tokyo) Frequencies Among American Airlines, Delta, Hawaiian & United

Related Articles

Avianca Buy LifeMiles With Up To 145% Bonus April 19 – 22, 2022

Avianca Buy LifeMiles With Up To 145% Bonus Flash Sale August 9 – 12, 2022

John Ollila
August 9, 2022

Avianca, a Star Alliance airline, based in Colombia, has launched a new sale to buy LifeMiles with up to a...

Avianca LifeMiles Buy Miles 200% Bonus Through December 3, 2020

Avianca Buy LifeMiles With Up To 145% Bonus July 4 – 26, 2022

John Ollila
July 5, 2022
1

Avianca, a Star Alliance airline based in Colombia, has launched a new sale to buy LifeMiles with up to a...

Avianca LifeMiles Partner Ticket Disaster: Turkish Airlines Denies Boarding

Avianca Buy LifeMiles With Up To 150% Bonus May 30 – June 14, 2022

John Ollila
May 30, 2022

Avianca, a Star Alliance airline, based in Colombia, has launched a new sale to buy LifeMiles with up to a...

Upgrade Your Travel IQ

Make the most of your travel with our free and daily newsletter with the latest hotel and airline news and promotions.

We do not sell or share email addresses.

ADVERTISEMENT

Trending

American Express Design Of New Marriott Bonvoy Premium Card “BEVY” Leaked
Marriott Bonvoy

American Express Design Of New Marriott Bonvoy Premium Card “BEVY” Leaked

August 13, 2022
Thailand Is Considering To Bring Back The 45-Day Visa Exemption Stamp
Thailand

Thailand Is Considering To Bring Back The 45-Day Visa Exemption Stamp

August 12, 2022
Hilton Go Employee And Friends & Family Rate Plans
Hilton Honors

Hilton Go Employee And Friends & Family Rate Plans

July 25, 2021
Netherlands Drops Negative PCR-RT Test Requirement From Transit Passengers Effective Today (June 1, 2021)
Travel News

Schiphol Passenger Compensation Scheme Due To Airport Chaos

August 13, 2022
Japan (1): How I Ended Up Spending Six Months In Japan
Travel News

Japan Opens eVISA Applications For Citizens Of The US & Canada On August 18, 2022

August 10, 2022

Top Categories

  • IHG Rewards Club
  • Marriott Bonvoy
  • Hilton Honors
  • Accor ALL
  • Airfare Of The Day
  • Starwood Preferred Guest (SPG)
  • Hyatt – World of Hyatt
  • American Airlines – AAdvantage
  • Travel News
  • United Airlines – Mileage Plus
ADVERTISEMENT

All Categories

In Case You Missed It

Airfare of the Day [Business Class] TAP AIR PORTUGAL Madrid to Miami from 1,189€

Airfare of the Day [Business Class] TAP AIR PORTUGAL Madrid to Miami from 1,189€

August 10, 2022
Nordic Choice 7,500 Bonus Points For Every Five Nights September 24 – December 31, 2020

Nordic Choice Triple Points August 12 – September 25, 2022

August 8, 2022
Air Canada 4X Aeroplan Points To/From Bogota September 13 – March 31, 2023

Air Canada 4X Aeroplan Points To/From Bogota September 13 – March 31, 2023

August 12, 2022
Qantas Asks Senior Executives To Volunteer As Baggage Handlers To Combat Labor Shortage

Qantas Asks Senior Executives To Volunteer As Baggage Handlers To Combat Labor Shortage

August 9, 2022
Netherlands Drops Negative PCR-RT Test Requirement From Transit Passengers Effective Today (June 1, 2021)

Schiphol Passenger Compensation Scheme Due To Airport Chaos

August 13, 2022
ADVERTISEMENT

Since 2011, we have been helping millions of visitors like you untangle travel loyalty programs for free upgrades, flights and hotel nights.

Facebook Twitter Youtube Instagram

Site Navigation

  • About LoyaltyLobby
  • News
  • Reviews
  • Airfares
  • Contact Us

Hotel Promotions

  • Accor
  • Hilton
  • IHG Rewards
  • Marriott
  • World of Hyatt

Sign Up For Our Newsletter

Our free daily newsletter sends you the latest information on hotel and airline programs.

We do not share or sell email addresses.

Site & Contents ©2011-2022 LoyaltyLobby.com
Terms of Use & Privacy Policy

  • News
  • Hotel Promotions
    • Accor
    • Best Western
    • Choice
    • Fairmont
    • Hilton
    • IHG Rewards
    • Marriott
    • Radisson Rewards
    • Ritz-Carlton
    • Starwood
    • World of Hyatt
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
No Result
View All Result

© 2011–2021 LoyaltyLobby.com - Site & Contents