Latam Group completes judicial recovery process in the US

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The Latam Airlines Group announced this Thursday (3) that it completes its judicial reorganization process in the United States, requested by the company in May 2020. With the reorganization, the company was left with US$ 2.2 billion in cash and reduced its debt at US$ 3.6 billion.

Latam says it will emerge from the process as a more efficient group and projects a recovery of 85% of its global capacity by the end of the year, compared to 2019. In October, the company reached an air network of 144 destinations in 22 countries. Since 2021, it has added ten new destinations in Brazil and plans to operate 36 new routes by 2023.

The group also plans to increase the fleet of Latam Cargo, the company’s cargo transport segment, and its affiliates from 11 to 20 aircraft in 2024.

Latam also said that it has signed agreements with Airbus to acquire 87 more fuel-efficient A32neo family aircraft by 2029.

“We are pleased to complete a significant transformation and emerge from our reorganization process with a strengthened financial position and a renewed commitment to operational excellence,” said the company’s CEO, Roberto Alvo, in a statement.

Latam joined the judicial reorganization in the US (a process known as Chapter 11, or “Chapter 11”, in the country) after mobility restrictions due to protection measures against Covid-19 caused great damage to airlines. At the time, the company said it was looking to reduce its debt, access new sources of financing and continue operating.

The group said it would hold a general meeting on November 15 to renew its board of directors.

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