Colombia's Avianca expects to emerge from Chapter 11 bankruptcy before the end of the year following the Southern District Court of New York's approval of the carrier's reorganization plan on Nov. 2.
Avianca said it will come out of its restructuring with more than $1 billion in liquidity and significantly reduced debt.
As part of its restructuring, Avianca, which entered into Chapter 11 in May 2020, plans to move closer to a low-cost business model while still maintaining its network of premium lounges and remaining a Star Alliance member.
The company plans to reconfigure aircraft with 20% more seats and to sell tickets through a selection of bundles, which it says will provide customers "with better flexibility to manage their flights and services so they only pay for what they really need."
The carrier also said it plans to be flying more than 130 aircraft over 200 mostly point-to-point routes by the end of 2025.
Prior to the pandemic, Avianca was the second-largest airline in South America behind LATAM, serving 76 destinations in 27 countries.
Avianca has resumed significant U.S. operations as the Covid-19 pandemic's impact on international operations has waned. This month, the carrier is scheduled to fly 22 U.S. routes split among nine U.S. destinations, according to Cirium flight schedule data.