Mexican airline Aeromexico has succumbed to the pressures of the COVID-19 pandemic and has filed for bankruptcy. The airline said on Tuesday that it had applied to start restructuring under Chapter 11, which will allow it to continue flying.
In a statement, the airline’s CEO Andrés Conesa said “Our industry faces unprecedented challenges due to significant declines in demand for air transportation. We are committed to taking the necessary measures so that we can operate effectively in this new landscape and be well prepared for a successful future when the Covid-19 pandemic is behind us.”
Airlines around the world including Aeromexico were forced to ground their planes as air travel demand plummeted.
The airline had announced in March that it would start operating “cargo-only flights for the first time in an attempt to stay solvent.
Aeromexico’s announcement comes on the heels of other Latin American airlines bankruptcy including Chile’s LATAM and Colombia’s Avianca.
Conesa said that Aeromexico intends to use the process “to strengthen our financial position, obtain new financing and increase our liquidity.”
Unlike in the United States or Europe, Latin American governments have so far witheld financial support to carriers in the region.