The main Mexican airline announced on Tuesday that it has applied to begin restructuring under Chapter 11, which will allow it to continue its flight.
“Our industry is facing unprecedented challenges due to a significant drop in demand for air transport,” CEO Andrés Cones said in a statement. “We are committed to taking the necessary steps to operate effectively in this new landscape and be well prepared for a successful future when the Covid-19 pandemic is behind us.”
Aeromexico intends to use this process “to strengthen our financial position, obtain new financing and increase liquidity,” Conesa said.
Daily operations will resume once the company begins a financial overhaul. Passengers should still be able to fly using existing tickets, and employees will continue to receive salaries as usual, management said.
The company also intends a gradual recovery. As air travel in some countries begins to recover, Aeromexico will immediately “expand its flight service,” planning to double its domestic flights and double its international capacity in July from last month’s levels.
The carrier must now “create a sustainable platform for success in an uncertain global economy,” Conesa added.