Latam files for Chapter 11 bankruptcy

Latin America’s largest carrier insisted the move would not affect its passenger or cargo operations, reservations or vouchers.

Attributing the move to the Covid-19 crisis, the group said in a statement the reorganisation process would provide Latam “with an opportunity to work with the group’s creditors and other stakeholders to reduce its debt, access new sources of financing and continue operating, while enabling the group to adapt its business to this new reality.”

Roberto Alvo, chief executive of Latam added: “Latam entered the Covid-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future.