The Latin American carrier, headquartered in Chile’s capital Santiago, entered into Chapter 11 proceedings voluntarily in May 2020.

Its restructure in the US was completed on Thursday (3 November), which has allowed the airline to access new sources of financing and transform its business to suit the post-Covid world.

Under bankruptcy protection, Latam has been able to trim US $3.6 billion in debt from its balance sheet, equivalent to 35% of the debt it had accrued before filing fro Chapter 11.

In addition, it now has more than US $2.2 billion in the bank to restore and grow its operations in Latin America. By the end of the year, Latam expects to serve in excess of 85% of its pre-pandemic network.

Despite recording a second quarter loss in August, the airline achieved operating revenue just 6% shy of 2019 levels. It has also since entered into a new joint venture with Delta Air Lines.

Chief executive Robert Alvo hailed exiting Chapter 11 "an important milestone" for Latam. "We are pleased we have completed a significant transformation and emerged from our financial restructuring process with a strengthened financial position," he added.

Latam currently serves 144 destinations across 22 countries, including the UK, and plans to operate 36 new routes by 2023. It has entered into agreements with Airbus to acquire 87 A320neo family aircraft by 2029, which offer 20% greater fuel efficiency.