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Just when Avianca began to see 2020 as the year to advance the fulfillment of its financial obligations and reinvention through projects such as international flights for personalized fares and the boost to its regional airline Avianca Express, the impact of the covid-19 seems to give another blow to his plans.
In a statement published before the Financial Superintendency, the holding company assured that its independent KPGM auditors informed its Audit Committee that, unless information supporting the compliance with Avianca’s obligations arises, the audit report that accompanies the financial statements of the firm that reports to the United States SEC “It will include an explanatory paragraph indicating that there is substantial doubt about our ability to continue operating.”
You can read: Avianca and Latam continue to support the crisis
The airline stated that the coronavirus hit forced it to shut down all its operations and leave its commercial fleet ashore, which “has generated unprecedented uncertainty in income, the reduction in demand and in the macroeconomy in general.”
“We cannot predict or quantify the extent of Covid-19’s impact on our operational and financial performance., which will depend on any event related to the spread of the outbreak, the duration, the scope of quarantine measures, travel restrictions and the impact on general demand for air travel, which are highly uncertain and cannot be predict ”, explained Avianca.
The company added that it is currently in default of some financing contracts and other obligations and that if its operations remain suspended for a long time “We may have to take additional steps to preserve our business and protect our cash position as much as possible.”
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