|Bid||0.0000 x 800|
|Ask||0.0000 x 1300|
|Day's Range||0.8260 - 0.9000|
|52 Week Range||0.0400 - 5.0200|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.23|
LATAM Airlines and Avianca Holdings survived the Great Depression, but just a few weeks of quarantines forced both companies into bankruptcy, marking Latin America as the world's top spot for airline financial ruin. Hopes for a taxpayer rescue in the region are fading fast and the bankruptcies show that even Latin America's two largest carriers are not immune to collapse, even as many airlines in the United States and Europe have received government aid.
Moody's Investors Service (Moody's) downgraded to Caa1 from B3 the senior secured and corporate family rating of LifeMiles Ltd. The outlook is negative. LifeMiles' downgrade to Caa1 reflects its exposure to the weak credit profile of its controlling shareholder Avianca Holdings, S.A. (Avianca) which announced that it has filed for Chapter 11 protection on May 10.
A U.S. federal court on Monday agreed on an interim basis to Avianca Holdings SA's (NYSE: AVH) initial motions to voluntarily reorganize under court-supervised bankruptcy protection.Latin America's second-largest airline sought bankruptcy over the weekend in an effort to continue operating as a smaller company, saying the shutdown of its passenger network because of the coronavirus pandemic is putting extreme pressure on its cash reserves.Avianca also operates a fleet of freighters and is a significant conduit for trade in Latin America.The U.S. Bankruptcy Court for the Southern District of New York approved motions allowing Avianca to pay past-due and future employee wages and benefits, maintain its customer programs and honor obligations to travel agency partners, vendors and suppliers.The relief provides the Colombian flag carrier short-term certainty that it can use funds for ongoing operations while it negotiates with creditors and other stakeholders on new terms of engagement. Avianca, which is liquidating its Peruvian operations, said it hopes to secure permanent approval of all orders at the next court hearing, which is scheduled for June 11.One of the creditors that will take part in the restructuring is United Airlines Holdings Inc (NYSE: UAL), which loaned more than $600 million to Avianca's largest shareholder in uccessful bid to create a joint venture that would have included Copa Airlines and helped it compete against other carriers in the region. One of the loans is now in foreclosure and United wrote off $697 million for the loans and related guarantees.The bankruptcy was not unexpected given that Avianca had already been working to restructure its business for the past two years."The Chapter 11 process is a responsible way for Avianca to protect and preserve the company as we navigate the severe impact of COVID-19 on the airline and travel industries. We are continuing our government discussions, and with their support, we are confident that we will emerge as a better, more efficient airline that continues to serve customers and provide essential air travel across Colombia and Latin America," said CEO Anko van der Werff in a statement. "We are grateful for the support of our business partners and recognize our continuing relationships will also be important to a successful outcome of this process."Avianca is negotiating with the government of Colombia and governments in other key markets for emergency coronavirus-related assistance, similar to the $50 billion aid package the U.S. government gave domestic airlines.Experts say more bankruptcies and failures are likely as the airline industry tries to cope with the economic devastation from the coronavirus pandemic. Regional U.K. carrier Flybe and Virgin Australia Holdings entered into court-supervised bankruptcy proceedings in the past two months and South African Airways shut down operations on May 1.Boeing Co (NYSE: BA) CEO David Calhoun said on the "Today Show" Tuesday that a U.S. airline likely would collapse this year.Photo: AviancaSee more from Benzinga * Today's Pickup: How A Canadian Carrier Recession-Proofed Its Business * Double-Digit Percentage Declines Persist For US Rail Volumes * Speculation On YRC's Survival Ramps Up(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Avianca Holdings had known since late March that the Colombian airline's cash pile would only cover a few months of expenses while its entire fleet sat grounded because of aggressive anti-coronavirus lockdowns. In those conditions, Sunday's bankruptcy filing was hardly a surprise. What was surprising was the absence of one key stakeholder: the Colombian government.
Shares of United Airlines Holdings (NASDAQ: UAL) fell 5% on Tuesday as the entire sector remained under pressure following comments by Boeing's CEO predicting some airlines would fail. United is under particular duress because an airline it is associated with, Colombia's Avianca Holdings (NYSE: AVH), has succumbed to bankruptcy. United in particular was hit due to Avianca filing for Chapter 11 protection in the U.S. Southern District of New York.
Avianca Holdings S.A. (NYSE: AVH, BVC: PFAVH) (the "Company" or "Avianca") today announced that all "first day" motions related to the Company's voluntary reorganization proceedings initiated on May 10, 2020 have been approved on an interim or final basis by the U.S. Bankruptcy Court for the Southern District of New York. Collectively, the orders granted by the Court at the hearing will help ensure that Avianca continues normal business operations throughout the reorganization process.
Avianca Holdings SA (NYSE: AVH), the second-largest airline in Latin America, filed for bankruptcy protection in U.S. federal court on Sunday, saying it needs relief from creditors as it restructures in an effort to survive the worst crisis in aviation history.The Colombian flagship carrier suspended all domestic and international passenger operations in late March because of the coronavirus pandemic but has maintained cargo operations with its fleet of dedicated freighters as well as passenger jets used in freighter mode. The grounding of the passenger fleet has reduced consolidated revenue by more than 80% and put pressure on the airline's cash reserves.Avianca, which serves more than 50% of the Colombian market and transported more than 30.5 million people last year, said the filing in the U.S. Bankruptcy Court for the Southern District of New York was necessary to preserve operations and jobs as it works to address about $5.3 billion in obligations, including leases, and aircraft orders. The airline, which operates to 76 destinations in 27 countries, is also closing its Peru division.Austerity measures taken by Avianca during the pandemic include employee furloughs, temporary wage reductions, freezes on nonessential capital expenditures and deferrals of payments on long-term leases.The bankruptcy could be an ominous harbinger for the airline industry, especially for midtier airlines and those with heavy debt loads. Industry analysts expect some airlines to eventually go out of business.Avianca was already in a weakened position when the COVID-19 travel restrictions and local lockdowns forced airlines to abandon most passenger flying. It lost $894 million in 2019, which included one-time transaction costs associated with a major restructuring designed to improve operational efficiency and ensure adequate liquidity. The company sold 24 aircraft, canceled 27 unprofitable routes, renegotiated debt and leases, and secured $375 million in convertible bonds in the fourth quarter. It also reclassified $2.6 billion in debt from short to long term."We are confident that through this process we can continue to execute our ‘Avianca 2021' plan, optimize our capital structure and fleet of aircrafts and — with government support — emerge as a better, more efficient airline that operates for many more years," said CEO Anko van der Werff in a statement.Avianca is also seeking financial support from governments of countries where it provides essential services. The International Air Transport Association says airlines stand to lose $314 billion in revenues this year and be forced to eliminate 2.7 million jobs in the near future and are urging governments to provide airlines with direct assistance, loans and loan guarantees, and tax cuts to help them stay viable.Avianca is using cash on hand and cargo revenues to support the business, including payments to employees and vendors during the court-supervised reorganization.Avianca is one of the top all-cargo carriers for flowers out of South America to the U.S. and Europe. Its freighter fleet consists of six Airbus A330-200 aircraft, plus five aircraft from its affiliated company AeroUnion. The freighters serve Dallas, Los Angeles, Chicago, New York, Miami, Madrid, Brussels and major Latin American cities.With passenger operations halted and a shortage of available cargo transport, Avianca, like other airlines, has deployed some passenger aircraft for dedicated cargo operations. In March, it began using a 787-800 to transport essential supplies. It recently launched regularly scheduled cargo-only passenger flights between Bogotá and Shanghai, marking the first time the company has performed a cargo flight to China. The flights are bringing medical supplies and surgical garments from China for use in Latin America. As of April 30, Avianca said it had completed 60 special cargo flights between Europe and Latina America.United Airlines had been pursuing a joint venture with Avianca and Panamanian carrier Copa Airlines to get better access to the South American market, but those plans are now on hold.Regional U.K. carrier Flybe and Virgin Australia Holdings entered into court-supervised bankruptcy proceedings in the past two months.See more from Benzinga * Rejections increase For The First Time Since March – FreightWaves NOW * Hino Recalls Conventional Truck Models For Battery Cable Issue * Qatar Airways Throws More Cargo Resources At Scandinavia, France(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A recovery could start to take hold in 2021, fueled by a reopening of the economy and progress on containing the virus. That would imply there is some upside in the stocks, though investors may need to sit tight for a while.
Avianca Holdings (AVH) filed for bankruptcy protection after travel restrictions tied to the coronavirus pandemic brought passenger operations to an almost complete halt since mid-March.The Columbian air carrier said it submitted Chapter 11 proceedings to the U.S. Bankruptcy Court for the Southern District of New York in an effort to preserve jobs, restructure its $7.27 billion in debt and reorganize its business operations. Throughout the restructuring period, it will continue operations, the company said."Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic," said Avianca CEO Anko van der Werff. "Despite the positive results yielded by our 'Avianca 2021' plan, we believe that, in the face of a complete grounding of our passenger fleet and a recovery that will be gradual, entering into this process is a necessary step to address our financial challenges."Avianca's passenger operations have been grounded since mid-March, cutting its consolidated revenue by over 80% and placing significant pressure on its cash reserves. As a result, Latin America’s second-largest carrier implemented employee furloughs, temporary wage reductions, reductions in non-essential capital expenditures and temporary deferred payments on long-term leases.With a fleet of 158 aircraft, Avianca employs more than 21,000 workers throughout Latin America, including more than 14,000 in Colombia, while also working with more than 3,000 vendors.Global shelter-in-place orders to contain the fast spread of the COVID-19 pandemic has resulted in a 90% decline in global passenger traffic and is expected to reduce industry revenues worldwide by $314 billion, according to the International Air Transport Association.Given the impact COVID-19 has had on travel plans, Avianca announced that it will continue to waive change fees and other penalties associated with changes to customers' travel plans for tickets purchased until October 31.At the start of the year, the company had managed to organize an out-of-court reprofiling of its financial debt and lease obligations and raised $375 million in new financing.Shares in Avianca rose 4.1% to $0.88 on Friday trimming the year-to-date plunge to 81%.Last week, five-star analyst Michael Linenberg at Deutsche Bank cut the stock to Sell from Hold and slashed the price target to 50 cents from $2, due to the accelerated COVID-19 impact in Latin America in recent weeks which forced the industry to make large capacity cuts and reduce its network to only fly "essential" routes.Linenberg noted that Latin America was one of the last regions globally to be affected by the coronavirus pandemic, following limited impact for most of the March quarter.Overall Wall Street analysts have a Moderate Sell consensus rating on the stock based on 2 Sells and 1 Hold. The $0.73 average price target implies 17% downside potential for the shares in the coming 12 months. (See Avianca stock analysis on TipRanks). Related News: ON Semiconductor Quarterly Earnings Miss Amid Virus Pandemic, Sees Orders Coming Back Uber Puts Hopes on Food Delivery Momentum After $2.9 Billion Loss Seres Therapeutics Reports Weak Earnings, But Significant Upside Lies Ahead More recent articles from Smarter Analyst: * Pfizer Seeks To Raise $4 Billion From Debt Sale * Bluebird Prices New Shares At $55, Seeks To Raise $500 Million * Dynavax Explodes 40% In Pre-Market On Phase 1 Covid-19 Vaccine News * GameStop Pops 5% Amid ‘Significant Progress’ On Turnaround Plan
If it fails to come out of bankruptcy, Bogota-based Avianca would be one of the first major carriers worldwide to go under as a result of the pandemic, which has crippled world travel. Avianca has not flown a regularly scheduled passenger flight since late March and most of its 20,000 employees have gone without pay through the crisis. "Avianca is facing the most challenging crisis in our 100-year history," Avianca Chief Executive Anko van der Werff said in a news release.
Avianca Holdings S.A. (NYSE: AVH, BVC: PFAVH) (the "Company" or "Avianca") and certain of its subsidiaries and affiliates today filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York to preserve and reorganize Avianca's businesses. LifeMiles™, Avianca's loyalty program, is administered by a separate company and is not part of the Chapter 11 filing.
There is "substantial doubt" about Avianca Holdings' <AVT_p.CN> ability to stay in business due to the coronavirus crisis, the Colombian airline reported on Thursday, citing the conclusion of its financial auditors. Avianca, Latin America's second-largest airline, made the disclosure in a securities filing with the U.S. Securities and Exchange Commission explaining why it was unable to file its 2019 annual report on time. Avianca said it will file the report in June and expects to disclose the conclusion made by accounting firm KPMG that there were serious questions about the airline's "ability to continue as a going concern."
Moody's Investors Service, (Moody's) today downgraded to B3 from B1 LifeMiles Ltd.´s corporate family and senior secured ratings. LifeMiles' downgrade to B3 reflects its exposure to the weak credit profile of its controlling shareholder Avianca Holdings, S.A. (Avianca).
The board of South America's largest carrier, LATAM Airlines Group <LTM.SN>, plans to suspend a $57 million dividend payment tied to the company's 2019 profits to preserve cash to weather the new coronavirus crisis, it said on Tuesday night. The plan still needs to be voted on by shareholders, but it is likely to be approved, as the company has a controlling shareholder, the Cueto family. LATAM's closest competitors, Colombia's Avianca Holdings <AVT_p.CN> and Brazil's Gol Linhas Aereas Inteligentes <GOLL4.SA>, posted losses in 2019 so they do not have a dividend to distribute.
The bans by Panama and Colombia, effective on Monday, came after Peru, Argentina and Chile, among others, severely curtailed flights. Chile-based LATAM Airlines Group, the continent's largest, said it would halve the salaries of its 43,000 employees and its new chief executive would forego his salary for three months.
Colombian airline Avianca is a "victim" in the global scandal surrounding years of alleged bribes paid by manufacturer Airbus <AIR.PA> to bolster sales of its planes, Avianca's chief executive said on Thursday. The airline is conducting an internal investigation and is the subject of a probe by Colombian authorities related to a $4 billion (£3 billion) settlement between Airbus and prosecutors in the United States and Europe over bribery and corruption stretching back at least 15 years. French prosecutors have said Airbus documents show multi-million dollar commissions paid to an agent for jet sales to Avianca, including some meant for a high-ranking executive at parent company Avianca Holdings SA <AVT_p.CN>.
German Efromovich, the majority shareholder in Latin American airline Avianca <AVT_p.CN>, said on Wednesday he does not have any knowledge of widespread bribes allegedly paid by European manufacturer Airbus <AIR.PA>. Airbus agreed last week to pay a record $4 billion in fines after reaching a plea bargain with prosecutors in Britain, France and United States over alleged bribery and corruption stretching back at least 15 years. Avianca on Monday said it had hired a law firm to investigate its relationship with Airbus and determine if it had been a victim of wrongdoing.
Fallout from the Airbus bribery scandal reverberated around the world on Monday as the head of one of its top buyers temporarily stood down and investigations were launched in countries aggrieved at being dragged into the increasingly political row. Airbus agreed on Friday to pay a record $4 billion in fines after reaching a plea bargain with prosecutors in Britain, France and United States over alleged bribery and corruption stretching back at least 15 years. Now, it is bracing for a rocky period with airlines and foreign governments, some of which have complained they were not forewarned about the charges and claimed little knowledge of the sums of money swirling around their fleet purchases.
Moody's Investors Service (Moody's) upgraded LifeMiles Ltd.'s senior secured and corporate family ratings to B1 from B2. LifeMiles upgrade to B1 mainly reflects an improvement in its main shareholder, Avianca Holdings S.A.'s (Avianca), credit profile, reducing the risk of LifeMiles upstreaming extraordinary cash flows -- either in the form of dividends, most likely financed with incremental debt or anticipated purchases of airline tickets.
Latin American airline Avianca <AVT_p.CN> has reached an agreement with airplane manufacturer Airbus <AIR.PA> to reduce the number of planes it was set to buy by 20, the company said on Tuesday. The airline has been struggling amid corporate turmoil - last year United Airlines ousted its chairman and controlling shareholder, revamping leadership. Avianca will now buy 88 A320neo planes from Airbus, instead of 108, and delay their entrance to its fleet until between 2025 and 2029, instead of between this year and 2024, it said in a statement filed to Colombia's financial regulator.
As part of the implementation of the "Avianca 2021 Plan", Avianca management has reached the following agreements to tailor its aircraft commitments to its future requirements:
Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of June. At Insider Monkey, we follow nearly 750 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are […]