Aeromexico files for bankruptcy protection

Grupo Aeromexico SAB, Mexico’s second-largest airline, filed for bankruptcy in the U.S., the fourth Latin American carrier to seek the Court’s protection after the COVID-19 pandemic caused a severe downturn in travel, reports Bloomberg.

In a message on the Aeromexico website, CEO Andrés Conesa said: “We have initiated a voluntary procedure to implement a financial restructuring under the Chapter 11 process in the United States of America. This legal process will not interrupt the airline’s operations. We are continuing to fly with enhanced health and safety measures. All tickets, reservations, electronic travel vouchers, and Club Premier Points remain valid and available for use.

The carrier will use Chapter 11 as a way to “strengthen its financial position and liquidity,” according to a statement to the Mexican stock exchange Tuesday.

Aeromexico’s passenger traffic plunged more than 90% as flights were grounded and travelers banned.

Aeromexico operates routes in Mexico, and internationally to the U.S., Canada, Europe and Asia, among others. Delta Air Lines Inc. is its biggest shareholder. The airline said it is in discussions for new financing.

Travel Markets Insider © 2020