The Mexican airline announced Tuesday that it had asked to begin restructuring under Chapter 11, which will allow it to continue flying.
“Our industry is facing unprecedented challenges due to a significant decrease in the demand for air transportation,” CEO Andrés Conesa said in a statement. “We are committed to taking the necessary measures so that I can operate effectively in this new landscape and be well prepared for future success when the Covid-19 pandemic is behind us.”
Aeromexico intends to use the process “to strengthen our financial position, obtain new financing and increase our liquidity,” Conesa said.
Day-to-day operations will continue as the company begins a financial review. Passengers will still be able to fly with their existing tickets, and employees will continue to be paid as usual, according to management.
The company is also experiencing a phase of gradual recovery. As air travel begins to rebound in some countries, Aeromexico will “expand flight service” imminently, with plans to double domestic flights and quadruple international capacity in July compared to levels from last month, he said.
The carrier now needs to “create a sustainable platform to succeed in an uncertain global economy,” Conesa added.