Due to the consistent tragic of the coronavirus pandemic, Avianca/ Latin American Airlines has implemented an extension in their operations until the month of May. The suspension of operation in Latin American Airlines has been made in lieu of the decreased demand in travel and the change made in travel restrictions by the US government due to coronavirus.
Moreover, Latin American Airlines has also decided to reduce the international capacity by 75% until the month of May due to the travel restrictions.
Meanwhile, the airline will continue to operate a single flight daily from Dallas to London and from Miami to LHR with three flights in a week from DFW to Tokyo. Also, the short-haul international flights will be continued by the airline which will include flights to Mexico, the Caribbean, Canada, Central America, and some parts of Northern South America.
Due to the increasing severity of the virus spread, Latin American Airlines are facing the most adverse effects.
The airline has been taking various actions to cope up with the adversity while also slashing the capacity to a large extent. Some of the major airlines of America including GOL are facing a great reduction of capacity due to the virus spread and these cuts in capacity are expected to continue until the next few months until the pandemic diminishes.
The Avianca/Latin American Airlines is also planning to Widen the capacity cards due to COVID-19 on a daily basis. For this purpose, the airline has also moved from capacity cuts in the international market to some of the tasks in domestic markets as well.
Due to the capacity cuts and severity of the consistent Spreading virus, the Avianca/Latin American Airlines are facing strong financial loss along with high liquidity and low leverages.
Not only capacity but the airline is also deciding to cut costs including the salaries of the executive by about 25% to cope up with the loss. One of the major reason which has complied the airline to cut the capacity and suspend their operation is the airspace closure and the travel bans made by the government as per the new traveling restrictions.
While the number of consumers for traveling is still very low, the airlines are still finding difficult to search for airports to land at with most of the borders around the world being shut due to the coronavirus pandemic.
