The largest airline in the entire continent – South America – announced bankruptcy and reorganization: the Latam carrier’s financial situation turned out to be critical even during the pandemic, and now the airline could not stand it and declared bankruptcy to carry out restructuring. However, it is a “joint venture” with the US-based Delta Airlines.
It said the airline will emerge from bankruptcy with more than $2.2 billion in liquidity, with debt on its balance sheet reduced by about $3.6 billion, as well as “support from existing and new shareholders.” As Roberto Alvo, chief executive officer of Latam, stated, the carrier “has completed a significant transformation and will emerge from financial restructuring with a strengthened financial position and a renewed commitment to operational excellence.”
As a result, an extraordinary meeting of shareholders will be held on November 15, at which the board of directors of the group will be updated. So far, the bankrupt’s plans are very optimistic – the “joint venture” with the Americans plans to purchase 87 Airbus A320neo aircraft by 2029. And to “offer travelers the best alternative for travel to and from South America.”
Our background: Latam is one of the largest airlines in South America, based in Santiago, Chile. Before the crisis, the airline’s fleet included about 80 aircraft. The main specialization of the carrier is flights to the countries of Latin America, as well as to the USA and Europe. By the way, this is the only company that flies to such a popular tourist exotic as Easter Island with its famous statues.