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Grupo Aeromexico, which operates Mexico's largest airline, reported on Tuesday a net loss of 2.24b pesos ($108.7m) in Q3, versus a net loss of 2.88b pesos from the same period last year. Aeromexico, which has been undergoing a reorganization under Chapter 11 of the Bankruptcy Code in the United States, posted 13.23b pesos in revenue for Q3, up from 4.67b a year earlier. "Despite the complex environment, the market has shown signs of recovery," Aeromexico said in a filing with the Mexican stock exchange. The airline said its total capacity, as measured in available seat kilometers (ASKs), increased 24.8% compared to the second quarter of 2021, driven by the recovery of 35.4% in capacity assigned to the international market and 11.6% to the domestic market.<br/>

Indonesia is preparing a backup plan for flag carrier Garuda Indonesia if it fails to reach a deal with creditors, including the option of upgrading air charter Pelita Air Service to a scheduled airline. The course of Garuda’s current talks with creditors hinges on a court decision on a debt petition against the airline, with the ruling set to be announced Thursday, Kartika Wirjoatmodjo, a deputy minister at the State-Owned Enterprises Ministry, said by text message on Tuesday. While the government still expects Garuda to be able to reach a settlement with creditors, there needs to be a backup plan in case of a deadlock, Wirjoatmodjo said. Garuda is struggling with about $5b of liabilities and needs to halve its fleet to keep the business afloat. Pelita, a unit of Indonesia’s state energy company Pertamina, filed an application this month to upgrade its permit to be able to offer scheduled flights, in addition to chartered ones it currently offers. <br/>