Avianca Holdings (2020)

Avianca's May 2020 bankruptcy filed days after LATAM, creating a pandemic one-two punch for Latin American aviation. The 100-year-old Colombian carrier - the second oldest continuously operating airline after KLM - had $6 billion in debt and couldn't survive the demand collapse. Avianca had been troubled for years: complex ownership disputes between Colombian business families, heavy debt from aircraft purchases, and intense competition from low-cost carriers. Chapter 11 provided breathing room; the airline emerged in late 2021 with reduced debt and a simpler fleet.