Latam Files Bankruptcy Citing ‘Collapse in Global Demand’ Amidst the Coronavirus Pandemic

By Kurt Stolz on 26 May 2020
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Latam Airlines Group, Latin America’s largest carrier, filed for bankruptcy protection, the second airline in the region to fall victim to the coronavirus crisis in the past month.

The carrier filed for Chapter 11 protection late on Monday in United States Bankruptcy Court for the Southern District of New York.  It said it planned to keep flying passengers and cargo, subject to travel restrictions and demand, while it restructures.

“Latam entered the Covid-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand [that] has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future,” said Roberto Alvo, the group’s CEO, who added that “this path represents the best option to lay the right foundation for the future of our airline group.”

Earlier in the month, Delta Air Lines and Latam announced the two had signed a trans-American joint-venture deal that would cover the two airlines’ route networks between North and South America.

In September, Delta took a 20% stake in Latam.  In December, the two airlines announced a codeshare partnership for flights to be operated by Latam affiliates in Colombia, Ecuador, and Peru.

Latam Airlines Group is a Chilean holding company headquartered in Santiago. It has subsidiaries in Argentina, Brazil, Colombia, Ecuador, Paraguay, and Peru.

(Photo: Accura Media Group)

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