LATAM Airlines, the carrier that transports the most amount of salmon from Chile, has filed for chapter 11 bankruptcy protection in the United States.
“When the pandemic started, LATAM entered this crisis as a healthy and profitable group of airlines, but we are subject to exceptional circumstances that have led to a collapse in global demand for our services, and we are currently operating approximately 5 percent of our passenger flights,” LATAM CEO Roberto Alvo said in an email to customers. “Therefore, we have had to take difficult but necessary steps to ensure our long-term sustainability in these extraordinary times. I want to personally share with you that, a few minutes ago, LATAM filed a reorganization application under chapter 11 protection in the United States.”
In a website specifically designed to address the issue, LATAM said that its headquarters and its affiliated companies in Chile, Peru, Colombia, Ecuador, and the United States would be included in what it called the “reorganization process,” while the entities incorporated in Argentina, Brazil, and Paraguay would be excluded “due to the nature of their debt structure and their respective current financial statements. Regardless of whether they are included in the process, all LATAM group affiliates will be able to continue operating as allowed by travel restrictions and demand.”
Specifically for cargo customers, the airline said that it has no plans to reduce or change its cargo program, and that “the most important thing to know is that we will continue our loading operations without interruptions throughout this process. There should be no change in the way we provide our service or the way you interact with us.”
According to data available from Chile’s Civil Aeronautics Board, the LATAM group – including LATAM Chile, LATAM Cargo, LATAM Airlines, LATAM Argentina, LATAM Brasil, LATAM Ecuador, LATAM Paraguay, LATAM Peru, LATAM Cargo Brasil, and LATAM Cargo Colombia – moved 37.8 million metric tons (MT) of the total 74.6 million MT in cargo export handled by airlines operating in Chile during the first four months of 2020. The runner up was Atlas Air, which moved 13.5 million MT.
“As we move forward with this process, we look forward to getting out of this with a solid financial foundation, and we are fully committed to keeping you updated as we continue your shipments,” LATAM said.
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