Mexico’s flagship airline announced Tuesday that it has asked to initiate Chapter 11 restructuring, which will allow it to continue flying.
“Our industry is facing unprecedented challenges due to significant declines in demand for air transportation,” said CEO Andrés Conesa in a statement. “We are committed to taking the steps necessary to be able to function effectively in this new landscape and be well prepared for a prosperous future when the Covid-19 pandemic is behind us.” ”
Like many airlines, Aeromexico has been forced to limit its operations as demand for air travel has dried up. In recent months, the airline has immobilized part of its fleet and announced in March that it will begin operating “cargo flights only for the first time”.
The company is the last Latin American carrier to file Chapter 11 in the United States. In May, the LATAM of Chile and that of Colombia Avianca ( also filed for bankruptcy, citing loss of business due to the pandemic. )
The company also hints at a gradual recovery. As air travel begins to rebound in some countries, Aeromexico will “expand flight service” imminently, with plans to double domestic flights and quadruple international capacity in July compared to last month’s levels, a he declared.
But the airline still faces a difficult road. The International Air Transport Authority has estimated that it may take more than three years for international travel to return to its pre-crisis level.
The carrier must now “create a sustainable platform to succeed in an uncertain global economy,” added Conesa.