SANTIAGO – The largest airline in the region, LATAM has filed for bankruptcy in the United States, following a slump in business amid the COVID-19 pandemic.
“LATAM Airlines Group S.A. and its affiliates in Chile, Peru, Colombia, Ecuador and the United States have filed for voluntary protection under the U.S. Chapter 11 financial reorganization process,” LATAM said in Tuesday’s statement, adding that its affiliates in Argentina, Brazil and Paraguay are not included in the filing.
#ContinuaremosVolando mientras nos reorganizamos bajo el capítulo 11 de los EEUU para atravesar el COVID-19, mientras transformamos nuestro negocio, nos adaptamos a una nueva forma de volar y aseguramos la sostenibilidad a largo plazo. Conoce más en https://t.co/GuArxQdRKl pic.twitter.com/MLdA3xYMPr
— LATAM Chile (@LATAM_CHI) May 26, 2020
“After careful consideration, LATAM is confident that the Chapter 11 reorganization process is the best path forward to achieve the group’s objectives and meet its obligations while comprehensively managing its fleet and addressing its debts, most of which are held in the United States,” it added.
There would be no immediate impact on either passenger or cargo flights, the company said.
Headquartered in Santiago de Chile, the airline had announced a 95-percent reduction in operations during April.