June 16, 2020 / 11:24 AM / 2 months ago

Colombia's Avianca reports first-quarter net loss of $121 million due to pandemic

FILE PHOTO: An Avianca Airlines Airbus A321-200 plane is seen at the Alfonso Bonilla Aragon International Airport in Palmira, Colombia August 4, 2019. Picture taken August 4, 2019. REUTERS/Luis Jaime Acosta/File Photo

BOGOTA (Reuters) - Latin America’s No. 2 carrier Avianca Holdings AVT_p.CN reported a $121 million loss for the first quarter late on Monday, accounting for just two weeks of severe impact from the coronavirus crisis.

The airline was the first in the region to file for bankruptcy protection in the United States and spent a full three months grounded without operating any regular flights.

It has since restarted some operations in Ecuador, but its hubs in Colombia, El Salvador and Peru remain closed.

Avianca’s revenue fell 18% in the first three months of the year to $943 million, but had fallen 51% by early June, the airline said.

Avianca did not report an impairment to its goodwill, which is the value the company assigns to the different carriers it has bought over the years.

This is unlike its main rival LATAM Airlines Group (LTM.SN) which reported a $1.73 billion impairment, as coronavirus had led it to have significantly more debts than assets. LATAM has also filed for bankruptcy protection.

Reporting by Luis Jaime Acosta; editing by Jason Neely

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