The LATAM Group, the largest airline in Latin America, announced on Thursday that it had completed its financial restructuring process after approximately 30 months.
The company had filed for Chapter 11 in a New York Court of Justice, in the US, in May 2020, amid the damage caused by the Covid-19 pandemic.
Since then, LATAM began to negotiate debts with its creditors while trying to avoid an aggressive offer from competitor Azul, which was seeking to take over the Brazilian division of the carrier.
“Today marks an important milestone for LATAM and our stakeholders. We are pleased that we have completed a significant transformation and emerged from our financial restructuring process with a strengthened financial position and a renewed commitment to operational excellence,” said Roberto Alvo, CEO of LATAM Airlines Group.
According to LATAM, the company’s debt has been reduced by $3.6 billion since before the Chapter 11 while it currently has $2.2 billion in liquidity.
To overcome the delicate financial situation, LATAM relied on huge spending cuts, but also on the growing demand for flights after the end of social isolation.
LATAM also resumed the renewal of its fleet, with the addition of A321neo aircraft, including the A321XLR version, while withdrawing its A350 from service, keeping the Boeing 767, 777 and 787 in the long-haul network.
The Chile-based company is now strengthening its relationship with Delta Air Lines through an extensive joint venture. Finally, the company stated that it is expected to recover 85% of its global capacity in 2019 by the end of 2022.