LATAM Airlines Group files for bankruptcy, but it’s not terminal

by | May 26, 2020

LATAM Airlines Group, the largest airline carrier in Latin America, has filed for bankruptcy due to the sharp decrease in air travel sparked by COVID-19. However, according to the website, reservations, employee pay, and flight vouchers will not be affected.

 How, you ask? It’s a Chapter 11 bankruptcy, so it’s not terminal.

“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 is not flyin’ solo. They’re the second airline from Latin America to file for bankruptcy in May. The first, Colombia-based Avianca, filed for bankruptcy after facing coronavirus-related financial problems.

The CEO of LATAM Airlines Group, Roberto Alvo said they “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 hopes that in the future, the airline will take off.

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