Pax Global Media
Aeromexico has filed for Chapter 11 bankruptcy in the U.S., the carrier said on Tuesday (June 30th).
The news makes Mexico’s largest airline the latest to succumb to the financial pressures of the coronavirus pandemic.
Filing Chapter 11 means the airline can begin the process of restructuring its operations while still continuing its day-to-day operations.
The airline said in a statement that "this legal process will not interrupt the airline's operations" and that all tickets, reservations and bonus points would continue to be honoured."
Aeromexico intends to use the Chapter 11 process to “strengthen its financial position and implement necessary operational changes to address the impact of the ongoing COVID-19 pandemic and create a sustainable platform for the future,” the company stated.
“Our industry faces unprecedented challenges due to significant declines in demand for air transportation,” said Andrés Conesa, Chief Executive Officer of Aeromexico, in a statement posted to the airline’s website. “We are committed to taking the necessary measures 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.”
Aeromexico suggested that the month of July will show a recovery as it expects to double the number of its domestic flights and quadruple the number of international flights as compared to June.
The Mexican carrier, like many airlines, has drastically scaled back its passenger operations in recent months, using its grounded fleet for cargo-only flights to ship items such as medical supplies.
Aeromexico is the latest Latin American airline to file for Chapter 11 in the U.S.
In May, Chile's LATAM and Colombia's Avianca (AVH) also filed for bankruptcy, citing the loss of business from the pandemic.
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