Avianca, a member of Star Alliance, has been unable to repay its accumulated debt due to the impact of the pandemic and poor business performance. As a result, on May 10 it filed in the U.S. Bankruptcy Court for the Southern District of New York to seek bankruptcy protection.
Avianca’s debt is now estimated at between $1 billion and $10 billion, and the Colombian government has said it does not have the ability to rescue the airline. It is still unclear whether this bankruptcy filing will affect the LifeMiles loyalty program that many readers care about.
If you have Avianca LifeMiles, you may want to consider cashing them out to avoid the risk of devaluation or even losing them entirely. LifeMiles can be used for purchases on Amazon, although the redemption rate is not very good. Of course, it is also possible that after the bankruptcy process is completed, the value of the miles may remain unchanged. Please think carefully about the risks here and make the decision that is best for you.
https://www.uscreditcards101.com/how-to-turn-miles-points-to-cash/
Do you have any LifeMiles? Head to the comments and let us know what you plan to do.