LATAM Airlines Files for Bankruptcy

LATAM Airlines, the largest airline in Latin America, announced on Monday that it is filing for Chapter 11 bankruptcy in the U.S., becoming the latest airline casualty of the COVID-19 pandemic. 

The move will allow the airline group to work with creditors and stakeholders to restructure its business while continuing to operate in the new post-COVID environment.

“Faced with the biggest crisis in the history of aviation, the Board has approved this path forward having analyzed all the available alternatives to ensure the sustainability of the group,” said Ignacio Cueto, Chairman of LATAM’s Board of Directors.

“As we have adapted to new realities in the past, we are confident that LATAM will be able to succeed in the post-COVID-19 context and continue to serve Latin America, connecting the region with the world.”

LATAM and its affiliates are in discussions with their respective governments of Chile, Brazil, Colombia and Peru to help secure additional funding, and will continue flying as conditions permit throughout the bankruptcy filing process.

The group will also continue to honor all current and future tickets, travel vouchers and frequent flyer miles and benefits, as well as flexibility policies. It also announced that travel agencies and other commercial partners will not experience any disruption in their interactions with the group due to the change. 

LATAM is the second Latin American airline to file for bankruptcy due to the coronavirus, after Avianca announced it filed for Chapter 11 bankruptcy in New York, earlier this month.