Aeromexico enters restructuring process through Chapter 11

Photo: © Gerard van der Schaaf

Aeromexico has filed for voluntary Chapter 11 bankruptcy protection in the United States, the airline announced on Tuesday evening.

This is to implement restructuring measures that have become necessary due to the economic effects of the global Coronavirus pandemic, Aeromexico says. The filing also includes ‘certain of its affiliates’.

However, the airline affirms that it will continue to operate (as far as the current situation allows) and all existing bookings, vouchers and frequent flier points remain valid. It has further announced the intention to double domestic flights and quadruple international flights in July. Just like most other airlines, Aeromexico severely reduced its schedule in response to the ongoing pandemic and resulting travel restrictions.

We expect to utilize the Chapter 11 process to strengthen our financial position, obtain new financing and increase our liquidity, and create a sustainable platform to succeed in an uncertain global economy.Andres Conesa, CEO of Aeromexico

The Mexican flag-carrier becomes the latest Latin American airline to file for Chapter 11 in the United States. In May, Avianca Holdings and most of LATAM Airlines Group, the two largest airline groups in South America, applied for bankruptcy protection. Two weeks ago, LATAM Argentina, which was not part of the filing, announced the permanent shut down of its operations.