AVIANCA HOLDINGS S.A. ANNOUNCES MEASURES TO
ADDRESS FINANCIAL IMPACTS OF COVID 19 ON ITS BUSINESS
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.
For further information, please contact:
Avianca Investor Relations
+ (571) 587 7700 ext. 2474, 1349
ir@avianca.com
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These
statements are statements that are not historical facts and are
based on management’s current view and estimates of future economic
circumstances, industry conditions, company performance and
financial results. The words “anticipates,” “believes,”
“estimates,” “expects,” “plans” and similar expressions, as they
relate to the Company, are intended to identify forward-looking
statements. Statements regarding the declaration or payment of
dividends, the implementation of principal operating and financing
strategies and capital expenditure plans, the direction of future
operations and the factors or trends affecting financial condition,
liquidity or results of operations are examples of forward-looking
statements. Such statements reflect the current views of management
and are subject to a number of risks and uncertainties. There is no
guarantee that the expected events, trends or results will actually
occur. The statements are based on many assumptions and factors,
including general economic and market conditions, industry
conditions and operating factors. Any changes in such assumptions
or factors could cause actual results to differ materially from
current expectations.
ABOUT AVIANCA HOLDINGS S.A. (NYSE: AVH) (BVC: PFAVH)
Avianca 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 171 aircraft, Avianca serves 76 destinations in 27
countries within the Americas and Europe. With more than 21,000
employees, Avianca Holdings had revenues of US$4.6 billion in
2019 and transported 30.5 million passengers. On
February 22, 2019, Avianca Holdings announced its corporate
transformation plan consisting of four key pillars: 1) the
improvement of operational indicators, 2) fleet adjustments, 3) the
optimization of operational profitability and 4) repositioning of
non-strategic assets. On
May 24, 2019, control of Avianca Holdings was assumed by
Kingsland Holdings Limited, an independent third party of United
Airlines.
