Mexico’s top airline said on Tuesday it had applied for restructuring under Chapter 11, which would allow it to continue flights.
“Our industry is facing unprecedented challenges due to the significant reduction in demand for air transport,” said CEO Andrés Conesa in a statement. “We are committed to taking the necessary measures to be able to operate effectively in this new landscape and to be well prepared for a successful future when the Covid-19 pandemic is behind us.”
Aeromexico intends to use the process “to strengthen our financial position, gain new funding and increase our liquidity,” Conesa said.
Daily activities will continue as the company begins an economic review. Passengers should be able to fly using their existing tickets and employees will continue to be paid as usual, according to the address.
The company is also hinting at a gradual recovery. As air travel begins to recover in some countries, Aeromexico will “expand its flight service” immediately, with plans to double domestic flights and quadruple international capacity in July compared to last month, he said.
The airline must now “create a viable platform to succeed in an uncertain global economy,” Conesa added.