Home / Business / Aeromexico filed for bankruptcy in the United States, citing “unprecedented” challenges

Aeromexico filed for bankruptcy in the United States, citing “unprecedented” challenges



The Mexican airline has announced Tuesday that it has applied to begin the restructuring under Chapter 11, which will allow it to continue flying.

“Our industry faces unprecedented challenges due to a significant drop in air transport demand,” said CEO Andrés Conesa in a statement. “We are committed to taking the necessary steps so that we can operate effectively in this new landscape and be well prepared for a successful future when the Covid-19 pandemic is behind us.”

Like many airlines, Aeromexico was forced to limit its operations due to the exhaustion of the demand for air transport. In recent months, the airline has grounded part of its fleet and announced in March that it would begin operating “freight-only flights for the first time”
;.
The airline is the last Latin American airline to apply for Chapter 11 in the United States. In May, Chile LATAM and Colombia Avianca (AVH) he also initiated bankruptcy proceedings, citing the loss of business due to the pandemic.

Aeromexico intends to use the process “to strengthen our financial position, obtain new financing and increase our liquidity”, said Conesa.

Daily operations will continue when the company starts a financial review. Passengers should still be able to fly using their existing tickets and employees will continue to be paid as usual, according to management.

Middle seats and full planes are returning as airlines prepare to ease restrictions

The company is also suggesting a gradual recovery. As air travel begins to rebound in some countries, Aeromexico will “expand flight service” imminently, with plans to double its domestic flights and quadruple international capacity in July compared to last month’s levels, he said.

But the airline still faces a difficult road. The International Air Transport Authority has estimated that international travel may return to pre-crisis levels over three years.

The carrier must now “create a sustainable platform to succeed in an uncertain global economy,” added Conesa.


Source link