LATAM Airlines Files for Bankruptcy in the US
WASHINGTON: According to the airline, it had to scale back its operations by 95 percent amid the collapse in global travel. Per the International Air Transport Association (IATA), the Latin American company could face a $15 billion loss in revenue this year.
LATAM announced bankruptcy in the United States on Tuesday, stressing, however, that the decision won’t immediately affect its flights.
“On May 26, 2020, LATAM Airlines Group filed to reorganise under Chapter 11 protection in the United States”, a statement said.
The Chilean-Brazilian company previously stated it would cut at least 1,400 jobs in Latin America amid the coronavirus pandemic.
LATAM earlier announced it would gradually increase the number of flights starting in June, promising lower fares and more flexible options for passengers.
The news comes after one of the region’s biggest carriers, Colombian airline Avianca, filed for bankruptcy in the US earlier this month in order to reorganise its debt “due to the unpredictable impact” of the coronavirus crisis.