Industry

VIDEO / LATAM Group has filed for Chapter 11 protection

On May 26th, LATAM Airlines Group has filed to reorganize under Chapter 11 protection in the United States. This process won’t have any impact on passenger or cargo operations, reservations, vouchers, or LATAM Pass miles.

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LATAM statement: “We want our stakeholders to know that we will continue to operate as travel restrictions and demand permit, paying our employees, meeting benefit obligations, and paying critical suppliers as well as respecting LATAM Pass miles and flight reservations as we work through the Chapter 11 reorganization process.

The U.S. Chapter 11 financial reorganization process provides a clear and guided opportunity to work with our creditors and other stakeholders to reduce our debt, address commercial challenges that we, like others in our industry, are facing as a group. It is very different from the concept of bankruptcy in other countries and is not a liquidation proceeding.

Our group has shared our journey with the people of Latin America, thriving in times of growth and pulling together to overcome times of adversity. LATAM will emerge from this process a more efficient, resilient, and ultimately strengthened airline group that is better placed to serve Latin America.”

Below, LATAM Airlines Group CEO Roberto Alvo on what this announcement means for the company’s future.