Grupo Aeromexico SAB, Mexico’s second-largest airline, filed for bankruptcy in the U.S., becoming the latest in a string of Latin American carriers to seek court protection after the COVID-19 pandemic caused a severe downturn in travel, Bloomberg News reported. The carrier will “continue operating and use chapter 11 as a way to strengthen its financial position and liquidity,” according to a statement to the Mexican stock exchange yesterday. Aeromexico said that the goal will be “protecting and preserving its operations and assets and implementing the necessary operational adjustments to face COVID-19-related impact.” Aeromexico saw the number of passengers it carried plummet more than 90 percent as governments grounded flights and travelers stayed home. The airline struck deals with labor groups and suppliers in May to cut costs by more than half to around $50 million a month, while offering its employees unpaid leave. Latin American airlines, unlike their counterparts in the U.S. and Europe, have received scant government support even as travel demand plunged and the coronavirus prompted countries to seal borders. The region’s largest carrier, Latam Airlines SA, filed for chapter 11 bankruptcy in May just weeks after Avianca Holdings SA, Colombia’s biggest airline.
