Aeromexico is now the third Latin American airline to file for Chapter 11 Bankruptcy in the United States during COVID-19, following both Avianca and LATAM.
Aeromexico will use Chapter 11 Reorganization to strengthen its financial position while increasing its liquidity to emerge from this crisis stronger. Aeromexico will continue to fly and plans to double the number of domestic flights in July compared to June.
Once again, if it wasn’t obvious already, Aeromexico is not ceasing operations or liquidating. They’re simply allowing themselves to restructure and strengthen their financial position.
Avianca, LATAM, and Thai Airways also have filed for Chapter 11 Bankruptcy. They don’t cease their operations but they do it so they can restructure and get some money to keep the airline stay afloat during this pandemic. Other airlines such as Cathay Pacific, Singapore Airlines, Lufthansa, AFKLM, and Garuda Indonesia have been bailed out by the respective local governments aswell
It’s sad that we see more airlines seeking for bankruptcy protections but unfortunately its pretty inevitable with our current condition. COVID-19 has caused travel restrictions almost everywhere in the world and passenger demands is at it’s lowest since 9/11. Seeking for bankruptcy protection/government bailout would be the only way to keep these airlines stay afloat until the restrictions have been lifted and all airlines can fly normally like they used to. We can only hope that the pandemic will be over soon so we can start a normal life again.
I swear I saw an article about this last month and Aeromexico denied them as rumors or something lmao, here we are now. Best of luck to them, if they fail I’m sure they will be propped up by the government anyways.
