Chile’s Latam Airlines files for US bankruptcy protection

Chile’s Latam Airlines has filed for bankruptcy protection in the US after travel restrictions all but emptied the skies in the region, sending air carriers scrambling for ways to cushion the coronavirus impact. Latam and several affiliates sought chapter 11 protection on Monday to reduce the size of its fleet, cut down its more than $7b in debt and cope with the pandemic’s severe impact on the aviation industry. The company, in which Delta has a big stake, said it secured $900m in bankruptcy financing from other shareholders, including Qatar Airways, to stay afloat during the restructuring process. “As we have adapted to new realities in the past, we are confident that Latam will be able to succeed in the post-Covid-19 context and continue to serve Latin America, connecting the region with the world,” said Ignacio Cueto, chairman of Latam’s board of directors. Latam said it was in discussions with governments in several countries within its service area regarding potential rescue lending or other economic assistance. Latam’s bankruptcy comes after it sold a $1.9b stake in December to Delta under a commercial joint venture designed to combine the routes of the two airlines between North and South America, according to court papers.<br/>