Bogotá, Colombia, March 27 2020 – Avianca Holdings S.A. (“Avianca”) (NYSE: AVH, BVC: PFAVH) today announced that, as the COVID-19 pandemic continues to significantly and increasingly impact the global and Latin American airline industry, resulting in unprecedented revenue, demand and overall macro-economic uncertainty, it has taken several actions to manage the near-term financial impacts on its business.
Avianca has put in place and offered to all of its employees a voluntary unpaid leave program; as of this date more than 14,000 employees have accepted this offer.
Additionally, Avianca has cut all non-essential capital expenditures, and has temporarily deferred payments on its long-term leases and on payment of principal on certain loan obligations. Avianca is actively seeking mutually satisfactory agreements with its key suppliers, strategic lenders and other creditors to address the current scenario.
As this situation unfolds, Avianca will continue to provide updates on other measures undertaken to protect its cash position to the extent possible.