LATAM Airlines Group’s US bankruptcy filing this week will delay its potential bailout in Brazil to at least July and also push back aid to its rivals at least through the end of June, two sources said Thursday. The delays will add further strain to Brazil’s airlines, which were already in weak shape before the pandemic. Rivals Azul and Gol Linhas Aereas Inteligentes are also negotiating bailouts. “The bailout will happen; what could happen is that it may be staggered due to LATAM’s situation,” said one source. Neither LATAM nor Brazil’s state development bank, BNDES, which is coordinating the bailout, had an immediate comment. LATAM’s bankruptcy filing this week has caused private banks to worry about the viability of Brazil’s airlines after the pandemic, the sources said. LATAM’s Brazil subsidiary is not part of the US bankruptcy, although executives acknowledge it is possible it might also go through a court restructuring. Government and private banks are also worried layoffs will be unavoidable, which could have negative political implications, the sources said.<br/>
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BA raised $750m in secured loans through a credit facility arranged by Citibank and backed by 48 aircraft as collateral. The unit of IAG pledged 40 Airbus narrow-body jets and eight Boeing wide-bodies as part of the deal, according to a filing on the UK’s Companies House website. IAG is scrambling to boost liquidity as fallout from the coronavirus pandemic threatens to depress travel markets for years to come. BA has already drawn down existing credit lines and tapped a state-backed lending program, as well as announcing 12,000 job cuts. The latest fund-raising features planes up to two decades old and is an alternative to sale-and-leaseback arrangements that normally involve newer aircraft. A number of the most modern BA jets such as A321neos and A350s are already leased. The airline and its parent declined to comment.<br/>
Iberia said Thursday it plans to resume some short- and medium-haul services in July for the first time since the country grounded air services in March as part of its coronavirus lockdown. "Starting on July 1, Iberia will gradually resume its short- and medium-haul flight programme," the company said. "The airline is also prepared to resume long-haul flights as soon as conditions allow and quarantine and travel restrictions are lifted in the countries served by Iberia." In July and August, Iberia, Iberia Express, and Iberia Regional "will fly to at least 40 and 53 destinations, respectively, with a total of at least 194 return flights per week scheduled in July, and 359 in August," the carrier said. "This amounts to just 21% of normal seat supply on the short- and medium-haul network, which may rise to 35% as demand increases." Iberia suspended the services when Spain went into lockdown in March.<br/>
Japan Airlines will suspend the hiring of new graduates for fiscal 2021 starting next April. The major carrier said Wednesday that it needs to review its recruitment plan because the business environment is deteriorating rapidly from the coronavirus outbreak. Among its domestic peers, Skymark Airlines and ANA Holdings, the parent of ANA, have also suspended recruiting. In fiscal 2021 JAL was slated to hire about 1,700 people, including flight attendants, for the entire group. Informal job offers already made to some 150 people will be honored, and recruiting will continue for about 80 pilot candidates as well as people with disabilities. JAL recorded a Y22.9b consolidated net loss for the January-March quarter as travel demand fell sharply and many countries imposed entry and departure restrictions to curb the pandemic. The virus crisis has forced JAL to suspend about 70% of its domestic flights and over 90% of its international flights.<br/>