Grupo Aeromexico SAB is considering a chapter 11 filing in the U.S. as the coronavirus pandemic ravages the airline industry, Bloomberg News reported. The Mexican carrier is weighing its options and no final decision has been made. The company is working to coordinate with creditors on a restructuring, and is considering all the alternatives. An Aeromexico bankruptcy would be the third in six weeks by a major Latin American airline, after Latam Airlines Group SA and Avianca Holdings SA sought court protection. Passenger traffic in the region fell by 96 percent in April amid the pandemic, according to the International Air Transport Association. But Latin American governments, unlike their counterparts in the U.S. and Europe, have been reluctant to offer support for airlines. Aeromexico said it hasn’t initiated or made a decision to initiate restructuring under chapter 11. “At this moment, we’re identifying additional sources of financing to strengthen our operative flows,” the company said in a securities filing Friday. “We’re also analyzing different alternatives to successfully reach, in the medium and long term, an orderly restructure of our financial commitments without disrupting operations.” Aeromexico is coordinating with unions, creditors and lessors, it said.
