LATAM Airlines Group, the largest carrier in Latin America, filed for Chapter 11 bankruptcy on Tuesday, according to a statement released on its website.
Reservations, employee pay, flight vouchers as well as passenger and cargo operations will not be affected, according to the statement.
"The U.S. Chapter 11 financial reorganization process provides a clear and guided opportunity to work with our creditors and other stakeholders to reduce our debt, address commercial challenges that we, like others in our industry, are facing as a group," the company said. "It is very different from the concept of bankruptcy in other countries and is not a liquidation proceeding."
LATAM's CEO Roberto Alvo cited coronavirus-related travel restrictions as a main driver for the decision to file for bankruptcy.
"We are looking ahead to a post-Covid future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of our passengers and employees being paramount," Alvo said
The voluntary reorganization will include LATAM's affiliates in Chile, Peru, Colombia, Ecuador and the United States.
This is the second major airlines in the region to file for bankruptcy in the month of May. Colombia-based Avianca filed for bankruptcy in the US Southern District of New York after facing coronavirus-related financial problems.
I don't regret my decision to move to Panama, but I regret that I may well never see my beloved Texas again.
I agree with Rick. I expect airfare costs to double to make a flight even profitable. if you can only book a flight 66% full and the airlines have huge debt service and overhead then naturally the price of admission is going up. It will suck to pay for essentially a first class fare and get coach. I have also read that food and in flight service will be eliminated or curtailed. Rick is right 3 or 4 hours with a mask is going to be bad but it will be much longer than that. Remember the airport will require that you have a mask upon entering so expect at least 8 hours in a mask. The new normal is not for me. I will not be traveling for quite awhile once we get resettled back home in Ohio.
Be careful when you land. Ohio has 500 daily new cases and rising with 50 deaths a day. Stay safe ,
It's going to take an act of congress to fly in the future. It would be nice though to have a little wiggle room on the plane. It's hard to fly anywhere when you are 6'4 tall. I cant imagine wearing a mask if flying over 4 hours. I have the feeling it's gonna get really stupid before this is all over. By the way, this recaptcha this is very annoying lately.
Get use to it folks .there will lots of companies going under in the months ahead