Brazil’s fourth largest international & domestic airline, Avianca Brasil, has filed for bankruptcy BUT passengers needn’t worry about flight disruptions.
Avianca Brasil stressed in an online statement that flyers “WILL NOT BE AFFECTED” by its request for judicial recovery, which was submitted after the airline reported a net loss of R$175.6 million (AU$63.1 million) for the first half of 2018.
Despite having wider seats than its competitors as well as seatback screens and hot in-flight meals, the airline said it wasn’t able to make a profit due to rising fuel costs and a weakened Brazilian economy, AINOnline reported.
Brazilian newspapers claimed that the airline’s debts to public and private airports reach a total of R$100 million (AU$35.9 million. The carrier is also believed to owe money to hotels that host crew and other suppliers.
Earlier this year, Avianca attempted to reduce its debt by returning eight aircraft to leasers.
Regardless of the airline’s financial position, Avianca reiterated in the online statement that passengers “can have absolute peace of mind in making reservations and purchasing tickets, since all sales and flights are and will be kept”.
“We will continue serving all customers, flying to all destinations with the quality and excellence for which we are known and recognised.”
Avianca
“Let’s continue with our mission: make you fall in love.”
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