Latam Airlines seeks bankruptcy protection as travel slumps
BANGKOK -- Latam Airlines, South Americas biggest carrier, sought U.S. bankruptcy protection Tuesday as it grapples with a sharp downturn in air travel sparked by the coronavirus pandemic.
The Chapter 11 bankruptcy filing underscores the severity of the financial challenges facing the travel industry as a result of the lockdowns, quarantines and other measures taken by governments the world over to stem the spread of the virus that causes COVID-19.
Passenger and cargo flights will continue to operate during the reorganization, and employees will still be paid, the Santiago, Chile-based airline said. Travelers with existing tickets and vouchers can still use them.
Chief Executive Roberto Alvo said Latam was profitable before the pandemic brought most of the world's flights to a halt, but is now facing a collapse in global demand.
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