The second-largest airline in Latin America, Avianca, has filed for bankruptcy protection.

The Colombian national carrier is the first major carrier to file for bankruptcy in the wake of the Covid-19 epidemic and the subsequent global travel bans.

Like many other carriers, the airline’s fleet of more than 140 aircraft has been grounded since March, with as much as 80 percent of its revenue cut by the plummeting traveller numbers due to the pandemic.

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Avianca S.A. (an acronym in Spanish for Aerovias del Continente Americano S.A., “Airways of the American Continent”) is the world’s second-oldest airline, having been founded in 1919, and celebrated its 100th-anniversary last year.

By filing for bankruptcy in the US, the Star Alliance partner airline is given time to recognise its debts and liquidate its assets. It has already liquidated its subsidiary Avianca Peru and placed its 20,000 employees on unpaid leave.

This is not the first time the airline has hit turbulence. It filed for bankruptcy in the early 2000s but was rebuilt by Bolivian oil figure German Efromovich.

With air travel down by 90 percent according to the International Air Transport Association, it is airlines have struggled with fixed costs. Virgin Australia recently announced it will also be seeking bankruptcy protection after the Australian government denied it a US$888 million dollar loan, as has British regional carrier Flybe.

In fact, many of the world’s major airlines will be bankrupt by the end of this month if coordinated government and industry action isn’t taken according to aviation consultancy group Centre for Aviation.

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However, there is hope, with Etihad recently announcing plans to resume its London-Melbourne service, albeit with less frequency, and other airlines implementing new procedures to help bolster traveller confidence.

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