Category Archives: LATAM Airlines (Chile)

LATAM projects an operation of 46% in July, the highest since the beginning of the pandemic

LATAM Group has issued this statement:

LATAM’s passenger operation for July 2021 is estimated to reach 46% (measured in available seat kilometers – ASK) compared to the same month in 2019, in a pre-pandemic context. This figure represents the largest operation projected since the beginning of the health crisis caused by SARS-CoV-2 and a significant increase from June’s operation of 36.9%. The challenge going forward, however, is the reactivation of markets like Chile and Ecuador, which register the lowest operational recovery of all of the countries in which the group operates. LATAM estimates approximately 880 domestic and international flights daily during July, connecting 116 destinations in 16 countries. Meanwhile, the Cargo division has scheduled 1,030 cargo freighter flights during the period, 20% more than in the same month of 2019. All of these projections are subject to the evolution of the pandemic, as well as travel restrictions in the countries where LATAM operates. During June 2021, passenger traffic (measured in revenue passenger-kilometers – RPK) was 32.1% compared to the same period of 2019, based on an operation measured in ASK (available seat-kilometers) of 36.9% compared to June 2019. Therefore, the load factor decreased 10.8 percentage points, reaching 72.2%. With regard to the cargo operations, the load factor was 62.8%, which corresponds to an increase of 7.7 percentage points compared to June 2019.

LATAM Group Operational Estimate – July 2021 (measured in ASK)

Brazil ● 48% projected operation (versus July 2019) ○ 75% domestic and 20% international ● Total July destinations: 44 domestic (equivalent to 418 daily flights on average) and 13 international. ○ Updates: ■ Domestic: 10 new routes: Río/Santos Dumont-Recife, Río/Santos Dumont-Maceió, Río/Santos Dumont-Natal, São Paulo/Congonhas-Fortaleza, São Paulo/Congonhas-Maceió, São Paulo/Congonhas-Natal, São Paulo/Congonhas-Recife, Fortaleza-Belém, Fortaleza-Manaus, Fortaleza-Teresina. ■ International: Restart routes São Paulo/Guarulhos-Paris and São Paulo/Guarulhos-Bogotá.

Chile ● 35% projected operation (versus July 2019) ○ 68% domestic and 21% international ● Total July destinations: 15 domestic (equivalent to 122 daily flights on average) and 14 international. ○ Updates: Restart route Santiago-New York (direct)

Colombia ● 76% projected operation (versus July 2019) ○ 98% domestic and 50% international ● Total July destinations: 15 domestic (equivalent to 136 daily flights on average) and 4 international. ○ Updates: ■ Domestic: New route Medellín-Cúcuta. ■ International: Restart route Bogotá-São Paulo/Guarulhos.

Ecuador ● 23% projected operation (versus July 2019) ○ 82% domestic and 7% international ● Total July destinations: 7 domestic (equivalent to 22 daily flights on average) and 2 international.

Peru ● 45% projected operation (versus July 2019) ○ 66% domestic and 38% international ● Total July destinations: 19 domestic (equivalent to 126 daily flights on average) and 17 international. ○ Updates: ■ Domestic: New route Arequipa-Cusco. ■ International: Restart Lima-Madrid and Lima-Orlando operations.

Cargo ● 75% projected operation (versus July 2019) ○ 63% domestic belly and 50% international belly* ○ 126% dedicated cargo * Belly: merchandise transported in the cargo hold (lower deck) of the aircraft

LATAM Group launches a pilot health passport from Lima and Santiago

The LATAM Group, through its subsidiaries in Chile and Peru, together with the International Air Transport Association (IATA) have come together to carry out the pilot of the IATA Travel Pass digital application, allowing passengers to organize and manage travel requirements complying with what is required by the authorities on international flights more efficiently and expeditiously.

IATA Travel Pass works based on the biometric information of the passenger’s passport, the results of laboratories in agreement and the joint information of the governments.

The pilot phase, which is voluntary for the passenger, is expected to take place between June 14 and July 2 on the following routes:

  • Lima-Miami
  • Lima-Santiago de Chile
  • Santiago de Chile-Lima
  • Santiago de Chile-Miami

Azul ends its codeshare agreement with LATAM, will pursue merger opportunities

"La Belle Azul" pink livery for breast cancer awareness

Azul issued this statement:

Azul, the largest airline in Brazil in terms of destinations and departures updates the market on its codeshare with LATAM and possible industry consolidation.

Azul believes that consolidation is an important part of the post-pandemic industry response and the Company is in a strong position to drive that consolidation.  The Company has hired advisors and is actively exploring industry consolidation opportunities in the region.

“The codeshare with LATAM was a unique solution in our pandemic response.  We also realized that industry consolidation would be important for the post-pandemic recovery and Azul would be a key part of any such activity.  At the end of the first quarter of 2021 we hired financial advisors and are actively exploring consolidation opportunities.  We believe the cancelation of the codeshare by LATAM is a reaction to that process,” says John Rodgerson, CEO of Azul.  “Azul is emerging from this crisis in a leadership position in terms of liquidity, network recovery and competitive advantages.  Our plans are unchanged and I am confident that we are in the best position to pursue strategic alternatives at this point in time,” says Rodgerson.

Azul will keep the market update of any developments.

Azul Route Map:

Top Copyright Photo: Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A330-941 F-WWYO (PR-ANV) (msn 1952) TLS (Eurospot). Image: 952080.

Azul aircraft slide show:

LATAM Group to expand its Boeing 767-300F freighters fleet by 2023

Delivered on November 9, 2017

LATAM Group announced the expansion of its freighter fleet growth under which it now plans to add 10 Boeing 767-300 Boeing Converted Freighters over the next three years. This will bring the fleet size to up to 21 freighters by 2023.  The first aircraft will be expected to begin operations in December 2021.

The Group’s freighter fleet growth plan initially included four firm conversion orders with Boeing and another four conversion options. Two months after the initial announcement, LATAM has exercised the four options, eight planes, and the conversion of two additional Boeing 767-300ERs. This means that the freighter fleet will be comprised of up to 21 aircraft by the end of 2023. Upon completion of the plan the Group will have almost doubled its freighter capacity as well as reduced the average fleet age from 17 to 14 years.

Growing from 11 to 21 freighter planes will enable the LATAM Group’s cargo subsidiaries to expand and reinforce their capacity to, from and within South America, and positioning the Group as the main freighter operator group in the region. The first eight airplanes have been allocated to markets that are critical for key customer segments.

“In general terms, the majority of the plan focuses on improving connectivity between North and South America. In particular, capacity from Colombia and Ecuador will be strengthened to support the flower export industry. Additional flights to support Chilean salmon exports as well as import traffic into the country will also be reinforced. Capacity to and from Brazil will also go up as we add routes from North America and Europe, boosting both the export and import markets”, said Kamal Hadad, LATAM Cargo’s Network and Alliances Director.

Hadad added that the freighter fleet flexibility will help LATAM assess a range of options. “For example, the two additional conversions could be used to refresh the current fleet or to begin new growth projects. The Group still has time to make the relevant decisions,” he concluded.

LATAM also announced that it will use some of the 767-300ERs that are awaiting conversion under a hybrid format to benefit customers in the short term. The seats will be completely removed from three planes for this purpose in order to have a payload of up to 46 tons per flight. Two of these planes are already operational. The third one is expected to be available in the second quarter of 2021.

Furthermore, LATAM is optimizing commonality across their fleet of 767-300 production and converted freighters to maximize capacity, including the ability to transport delicate goods.

Top Copyright Photo: LATAM Airlines Cargo (Chile) Boeing 767-316F ER WL N534LA (msn 32572) AMS (Ton Jochems). Image: 941889.

LATAM (Chile) aircraft slide show:

LATAM Group announces that it will be zero waste to landfill by 2027 and carbon neutral by 2050

LATAM Airlines (Chile) Boeing 787-9 Dreamliner CC-BGD (msn 35322) FRA (Marcelo F. De Biasi). Image: 939889.

LATAM Group made this announcement today:

Achieving carbon neutrality by 2050, zero waste to landfill by 2027 and protecting iconic ecosystems in South America, are some of the commitments that are part of the LATAM Group Sustainability Strategy, launched today.

“We are facing a critical moment in the history of humanity, with a serious climate crisis and a pandemic that has changed our society. Today, it is not enough to do the usual. As a group we have the responsibility to go further in the search for collective solutions. We want to be an actor that promotes the social, environmental and economic development of the region; therefore, we are assuming a commitment that seeks to contribute to the conservation of ecosystems and the well-being of the people of South America, making it a better place for all of them,” said Roberto Alvo, CEO of LATAM Airlines Group.

One of the most important announcements was the first stage of a collaboration with The Nature Conservancy (TNC), to plan conservation and reforestation actions in iconic ecosystems in the region. TNC is a global environmental organization that works based on science, creating solutions for the most urgent challenges of our planet, so that nature and people may prosper together.

“With more than 35 years of experience in Latin America, our scientific studies have shown that forest restoration and regeneration can efficiently contribute to the Nationally Determined Contributions’ (NDCs) goals. TNC believes that multisectorial collaboration accelerates the implementation of nature-based solutions to mitigate the impacts of climate change, protect biodiversity, and develop a more prosperous future for people in the region,” said Ian Thompson, Executive Director of The Nature Conservancy (TNC) Brazil.

A strategy for the next 30 years

The sustainability strategy for the next 30 years includes four pillars of work: environmental management, climate change, circular economy and shared value. The lines of action were designed collaboratively with experts and environmental organizations from across the region.

Regarding the climate change pillar, the group announced that it will work to reduce its emissions through the incorporation of sustainable fuels and new aviation technologies that are expected to be available beginning 2035. “The environment cannot wait 15 years to have the necessary technologies to reduce emissions. This is why we will work in parallel to promote these transformations and offset our emissions through nature-based solutions,” said Roberto Alvo, CEO of LATAM Airlines Group.

Through the development of a portfolio of conservation projects and other initiatives, LATAM Group will contribute to offset 50% of its domestic emissions by 2030, establishing a path to be carbon neutral by 2050. It will intervene in iconic ecosystems of South America, such as the Amazon, the Chaco, the Llanos of Orinoco, the Atlantic forest and El Cerrado, among others.

Additionally, LATAM Group will promote a program that will allow passengers, corporate and cargo customers the option of offsetting the CO2 emissions associated with their trips. In parallel, the group will offset the same amount of CO2 emissions as customers under the 1+1 program.

In circular economy, LATAM Group is committed to promoting a culture of elimination, reduction, reuse and recycling throughout the operation, in order to reach 2027 as a group that generates zero waste to landfill. To do this, single-use plastics will be eliminated before 2023 and the on-board recycling program will be expanded on all domestic routes of the LATAM Group, and all LATAM lounges will be made 100% sustainable. Similarly, the group will implement a uniform recycling program in all countries and a plan to replace materials on board with compostable, recyclable or certified items.

As part of the shared value pillar, the group will expand its capacity to transport cargo and people for health programs, natural disasters and environmental care. It should be remembered that since the beginning of the pandemic, thanks to the Solidarity Plane program, there has been the transportation of more than 29.4 million vaccines free of charge in its subsidiaries, more than 1,400 health professionals, over 490 tons of medical supplies and more than 1,500 organs and tissues in South America. At the same time, the program has confirmed 10 transports of stem cells for patients with blood cancer.

Lastly, in the case of environmental management, LATAM Group will implement a transparent and auditable system that will allow it to take into account environmental variables in all the group’s processes, which will have environmental certification (IEnvA) throughout its operation, a reference in the industry, and that is granted by the International Air Transport Association (IATA).

Top Copyright Photo: LATAM Airlines (Chile) Boeing 787-9 Dreamliner CC-BGD (msn 35322) FRA (Marcelo F. De Biasi). Image: 939889.

LATAM aircraft slide show (Chile):

LATAM to continue transporting COVID-19 vaccines at no cost within the countries where it operates throughout 2021

LATAM Cargo (Colombia) Boeing 767-316F ER WL N532LA (msn 30780) MIA (Brian McDonough). Image: 948957.

LATAM has issued this statement:

LATAM Airlines Group reported that it will continue to transport vaccines at no cost within the countries where it operates throughout 2021 through its Solidarity Plane program.

To date, the group has transported over 23.7 million vaccines against COVID-19 within South America, through more than 300 flights in the domestic markets of Brazil, Chile, Ecuador and Peru.

More than 50 towns have benefited from the doses, including those located in difficult access points including Easter Island in Chile, Galapagos in Ecuador, Iquitos in Peru. In Brazil, doses have been moved to all states, as a result of the country’s current health crisis.

After the arrival of the first shipments of vaccines to the region in December 2020, LATAM made the free transport of doses available to the authorities of the governments of the countries where it has domestic operations.

Since the beginning of the pandemic to date, Solidarity Plane has transported more than 480 tons of medical supplies, benefiting Argentina, Brazil, Chile, Colombia, Ecuador and Peru. At the same time, more than 1.400 organs and tissues were mobilized within South America and the transfer of stem cells was carried out for ten people with blood cancer, who were able to receive a second chance at life. In passenger transport, more than 1.300 health professionals were able to travel to meet different needs related to Covid-19 in the countries that LATAM operates with domestic flights.

Through LATAM Cargo, the group has transported over 48 million vaccines to South America and within the countries in which it operates. LATAM Cargo is the first airline in the American continent, and the only one in the region, to obtain the CEIV Pharma (IATA) certification. This voluntary certificate internationally certifies that facilities, equipment, operations and personnel meet all applicable standards, regulations and guidelines expected by pharmaceutical manufacturers

Last week, LATAM announced plans to continue transporting vaccines at no cost within the countries where it operates throughout 2021.

Top Copyright Photo: LATAM Cargo (Colombia) Boeing 767-316F ER WL N532LA (msn 30780) MIA (Brian McDonough). Image: 948957.

LATAM Airlines aircraft slide show:

 

LATAM will continue to transport vaccines free

LATAM Airlines Group reported that it will continue to transport vaccines at no cost within the countries where it operates throughout 2021 through its Solidarity Plane program. To date, the group has transported over 23.7 million vaccines against COVID-19 within South America, through more than 300 flights in the domestic markets of Brazil, Chile, Ecuador and Peru.

More than 50 towns have benefited from the doses, including those located in difficult access points including Easter Island in Chile, Galapagos in Ecuador, Iquitos in Peru. In Brazil, doses have been moved to all states, as a result of the country’s current health crisis.

After the arrival of the first shipments of vaccines to the region in December 2020, LATAM made the free transport of doses available to the authorities of the governments of the countries where it has domestic operations.

Since the beginning of the pandemic to date, Solidarity Plane has transported more than 480 tons of medical supplies, benefiting Argentina, Brazil, Chile, Colombia, Ecuador and Peru. At the same time, more than 1,400 organs and tissues were mobilized within South America and the transfer of stem cells was carried out for ten people with blood cancer, who were able to receive a second chance at life. In passenger transport, more than 1.300 health professionals were able to travel to meet different needs related to Covid-19 in the countries that LATAM operates with domestic flights.

Through LATAM Cargo, the group has transported over 48 million vaccines to South America and within the countries in which it operates. LATAM Cargo is the first airline in the American continent, and the only one in the region, to obtain the CEIV Pharma (IATA) certification. This voluntary certificate internationally certifies that facilities, equipment, operations and personnel meet all applicable standards, regulations and guidelines expected by pharmaceutical manufacturers.

LATAM Group adjusts operational projection to 25% in April

Delivered on December 23, 2019

LATAM estimates the passenger operation in April 2021 to reach 25% (measured in available seat kilometers – ASK) compared to the same month in 2019 and a pre-pandemic context. This operational projection is in line with the demand, which has been affected by new border closures and passenger travel restrictions due to the current impact of COVID-19 in the region.

The group plans to operate approximately 400 daily domestic and international flights this month, connecting 114 destinations in 15 countries. Meanwhile, in the Cargo Division, there are more than 1,150 cargo freighter flights scheduled.

All projections are subject to the evolution of the pandemic, as well as travel restrictions in the countries where LATAM operates.

During March 2021, passenger traffic (measured in revenue passenger-kilometers – RPK) was 22.6% in relation to the same period in 2019, based on an operation of 31.5% (measured in available seat-kilometers – ASK) compared to March 2019. As a result, the load factor decreased 23.3% percentage points to 59.5%.

With regard to the cargo operation, the load factor in March reached 67.2%, 9.1 percentage points higher than the same month of 2019.

LATAM Group Operational Estimate – April 2021 (measured in ASK):

Brazil ● 27% projected operation (versus April 2019) ○ 38% domestic and 16% international ● Total April routes: 72 domestic (equivalent to 190 daily flights) and 9 international.

Chile ● 18% projected operation (versus April 2019) ○ 50% domestic and 5% international ● Total April routes: 17 domestic (equivalent to 66 daily flights) and 11 international.

Colombia ● 64% projected operation (versus April 2019) ○ 107% domestic and 26% international ● Total April routes: 23 domestic (equivalent to 99 daily flights) and 2 international.

Ecuador ● 20% projected operation (versus April 2019) ○ 54% domestic and 11% international ● Total April routes: 6 domestic (equivalent to 14 daily flights) and 3 international.

Peru ● 31% projected operation (versus April 2019)○ 48% domestic and 25% international ● Total April routes: 18 domestic (equivalent to 67 daily flights) and 15 international.

Cargo Division ● 78% projected operation (versus April 2019) ○ 61% domestic belly y 36% international belly* ○ 128% freighter

*Belly: goods transported in the cargo hold (lower deck) of the aircraft.

Top Copyright Photo: LATAM Airlines (Chile) Boeing 787-9 Dreamliner CC-BGP (msn 38469) LAX (Michael B. Ing). Image: 953352.

LATAM Airlines aircraft slide show:

Passenger travel in South America is hampered by border closures, air cargo surges

Surging cases of COVID-19 in South America is forcing governments to restrict between borders which is affecting air travel.

Chile has closed its borders for the month of April.

Bolivia has closed its border Brazil.

Peru had an Easter lockdown.

While passenger air travel remains low in South America, while air cargo is surging.

Previously LATAM Airlines Group announced a significant expansion of its cargo operations with the conversion of up to eight Boeing 767-300ER aircraft into Boeing Converted Freighters (BCF) in the next three years. This represents a freighter capacity growth of up to 80%. This plan seeks to increase the service options and leverage the synergies of operating a single type of aircraft.

The plan is divided in two gradual stages. The first phase is based on four confirmed conversion slots with Boeing with re-deliveries between 2021 and 2022. Upon completion of that phase, LATAM’s cargo operators’ fleet would reach a total of 15 Boeing 767-300ER freighters. The second phase includes four conversion options with Boeing that would allow aircraft to be added between 2022 and 2023. If all options are executed LATAM would operate a total of 19 767-300ER freighters.

“Despite the deep crisis the industry is enduring due to the pandemic, we maintain our commitment to support the region’s exporters and importers by providing them with more and better options to carry their cargo to their destinations. As a result, we growth plan have been accelerated with conversion of up to eight Boeing 767-300ERs in the next 30 months. This investment, together with the significant cost efficiencies that we have generated during the Chapter 11 process, puts us closer to achieving our aspiration of being the best alternative for cargo customers,” said Roberto Alvo, CEO of LATAM Airlines Group.

Andrés Bianchi, LATAM Cargo’s CEO, highlighted the advantages of the Boeing 767-300ER freighter. “Combining the passenger belly operations of LATAM Airlines Group with 15 to 19 Boeing 767-300ER freighters efficiently strengthens our customer value proposition. These conversions will enable the cargo affiliates to grow in key segments such the Colombian flower market or imports to Brazil. It also allows our affiliates to expand their network in domestic markets where e-commerce is rapidly generating an increase in air cargo traffic. Growing with Boeing 767-300CFs freighters is extremely efficient as it is the optimal aircraft for all these undertakings and we can take advantage of the benefit of operating a single fleet type.”

LATAM Cargo (Colombia) Boeing 767-316F ER WL N540LA (msn 35229) MIA (Ken Petersen). Image: 948857.

Copyright Photo: LATAM Cargo (Colombia) Boeing 767-316F ER WL N540LA (msn 35229) MIA (Ken Petersen). Image: 948857.

Throughout 2020, LATAM Cargo played an active and vital role in ensuring essential supplies reached Latin American countries, especially in places with extreme and difficult-to-access areas like in countries such as Brazil, Chile, Colombia, Ecuador, and Peru. LATAM also worked to safeguard the supply from the import and export sectors in South America, even increasing their shipment frequencies by more than 40% in some markets. To achieve these results, LATAM operated passenger planes for the exclusive transport of cargo.

In addition, during the pandemic, LATAM landed for the first time in China, searching for medical supplies for South America, ultimately making more than 80 flights to the Asian continent. LATAM currently continues to make trips to Europe and China to transport COVID-19 vaccines into the region, and the LATAM Group’s Solidarity Plane Program has made its resources available for the free transport of vaccines in domestic markets.

LATAM Airlines Group files for Chapter 11 reorganization

LATAM Airlines Group S.A. has made this announcement:

LATAM Airlines Group S.A. and its affiliates in Chile, Peru, Colombia, Ecuador and the United States today (May 26) initiated a voluntary reorganization and restructuring of their debt under Chapter 11 protection in the United States with the support of the Cueto and Amaro families and Qatar Airways, two of the largest shareholders of LATAM.

In light of the effects of COVID-19 on the worldwide aviation industry, this reorganization process provides LATAM with an opportunity to work with the group’s creditors and other stakeholders to reduce its debt, access new sources of financing and continue operating, while enabling the group to transform its business to this new reality.

The Chapter 11 financial reorganization process is a proven legal framework under which LATAM and said affiliates will have the opportunity to resize their operations to the new demand environment and reorganize their balance sheets, enabling them to emerge more agile, resilient and sustainable. LATAM and its affiliates will continue flying as conditions permit throughout the process.

“LATAM entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future,” said Roberto Alvo, Chief Executive Officer of LATAM. “We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option to lay the right foundation for the future of our airline group. We are looking ahead to a post-COVID-19 future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of ourpassengers and employees being paramount.”

The group has secured the financial support of shareholders, including the Cueto and Amaro families, which have lasting ties to LATAM, and Qatar Airways, to provide up to $900 million in debtor-in-possession (DIP) financing. These partners have a profound understanding of the industry, the group and its operational challenges. Their support demonstrates a belief in LATAM and its affiliates and their long-term sustainability. To the extent permitted by law, the group would welcome other shareholders interested in participating in this process to provide additional financing. In addition, as of the filing, the group had approximately USD $1.3 billion in cash on hand.

LATAM and its affiliates are also in discussions with their respective governments of Chile, Brazil, Colombia and Peru to assist in sourcing additional financing, protect jobs where possible and minimize disruption to its operations. LATAM and its affiliates would like to thank its shareholders, employees, creditors and the communities it serves for their support to help secure the group’s long-term future. The group is confident that this process will bring together these diverse stakeholders to build a new LATAM that is better placed to succeed for years to come.

“Faced with the biggest crisis in the history of aviation, the Board has approved this path forward having analyzed all the available alternatives to ensure the sustainability of the group. As we have adapted to new realities in the past, we are confident that LATAM will be able to succeed in the post-COVID-19 context and continue to serve Latin America, connecting the region with the world,” said Ignacio Cueto, Chairman of LATAM’s Board of Directors. 

The group is continuing to adapt and respond to the COVID-19 pandemic and is actively preparing to welcome customers back once travel prohibitions are lifted and demand increases, guaranteeing the highest safety standards for passengers and crew for which LATAM is highly recognized.

Continuing to serve Latin America

LATAM group is committed to preserving business continuity as it reorganizes – especially with respect to employees, customers, suppliers, commercial partners and local communities.

  • LATAM Airlines Group S.A. and its affiliates will continue to operate passenger and cargo flights, subject to demand and travel restrictions.
  • All current and future tickets, travel vouchers and frequent flyer miles and benefits, as well as flexibility policies, will be honored.
  • The group’s employees will continue to be paid and receive benefits as provided in their employment agreements.
  • Suppliers will be paid in a timely fashion for goods and services delivered from May 26, 2020 forward and throughout this process.
  • Travel agencies and other commercial partners will experience no disruption in their interactions with the LATAM group.

The right option to strengthen the group

The LATAM group has shared its journey with the people of Latin America, thriving in times of growth and pulling together to overcome times of adversity, and like many, LATAM and its affiliates began 2020 with hopes of progress that COVID-19 has brought to a virtual standstill. In 2019, the group launched 26 new routes and transported a record 74 million passengers, 5.4 million more than in 2018. The group’s plans for 2020 included further enhancing its passenger experience through cabin transformations and strengthening its strategic partnerships to further connect Latin America with the world. While the group will change through the Chapter 11 process, its culture, commitment to customers, shared history and Latin American identity will not.

After careful consideration, LATAM is confident that the Chapter 11 reorganization process is the best path forward to achieve the group’s objectives and meet its obligations while comprehensively managing its fleet and addressing its debts, most of which are held in the United States. Importantly, this process is markedly different from the concept of “quiebra“, “bancarrota“, or liquidation. LATAM intends to rely on specific relief that will allow it to pay its employees, meet benefit obligations, pay critical suppliers and conduct other day-to-day business operations as the group works with the court and creditors to resolve its case. With Chapter 11 protection, the group’s management team will remain in place and will continue to lead LATAM through the reorganization and transformation process.

These unique provisions of the Chapter 11 reorganization process will enable the group to minimize disruptions to the business and protect the interests of stakeholders while it restructures its balance sheet to emerge as a more agile, resilient and sustainable airline group.

While most of LATAM’s affiliates are included in the reorganization process, several entities are not, due to the nature of their debt structure and current financial status. A full list of filing entities is available at cases.primeclerk.com/LATAM. The list below summarizes the inclusion of these entities in the Chapter 11 financial reorganization and other proceedings.

Material filing entities:

  • Chile: LATAM Airlines Group S.A. and certain other entities incorporated in Chile are included in the Chapter 11 filing and will also file recognition proceedings in Chilean Courts in order to ensure that the Chapter 11 process is given full credit and effect, providing even greater protection to LATAM’s businesses.
  • Colombia: LATAM Airlines Colombia and other entities incorporated in Colombia are included in the Chapter 11 filing and will also file recognition proceedings in the Superintendencia de Sociedades in order to ensure that the Chapter 11 process is given full credit and effect, providing even greater protection to LATAM’s businesses.
  • Peru: LATAM Airlines Perú and other entities incorporated in Peru are included in the Chapter 11 filing and are also filing a “Preventative Reorganization Process” with INDECOPI in order to ensure to these businesses are further protected from adverse actions of creditors.
  • Ecuador: LATAM Airlines Ecuador is included in the Chapter 11 filing.
  • United States: All of the group’s operating entities, other than special purpose vehicles, in the United States are included in the Chapter 11 filing.

Non-filing entities

  • Argentina, Brazil and Paraguay: LATAM’s affiliates in Argentina, Brazil and Paraguay are not included in the Chapter 11 filing. LATAM’s affiliates in Brazil are in discussions with the Brazilian government about the next steps and financial support for their Brazilian operations.

Importantly, whether included in the filing or not, all of the companies in the group will continue to operate as travel restrictions and demand permit.

Additional Information

LATAM Airlines Group and its affiliates understand that their employees around the world, their families, their suppliers and customers will have many questions. While LATAM may not have all the answers at this point, the group will be guided by transparency in all its interactions.

Previously the group made this announcement about the upcoming schedule:

LATAM Airlines Group and its affiliates, Latin America’s leading airline group with one of the largest route networks in the world, announced today it will gradually increase its international and domestic operations during June and July, offering passengers more flexible options, lower fares and increased sanitation measures.

In June the LATAM group expects to increase its total pre-crisis capacity from 5% to 9%, while preparing to reach 18% in July. The LATAM group understands that decision-making in these uncertain times is complex, reason why it is granting passengers greater flexibility to purchase and schedule trips with rates that on average can be up to 20% less expensive. Additional sanitation measures will also being implemented on all flights.

“With these measures, the LATAM group is responding to the connectivity needs of the countries where it operates and adapting its offerings to the requirements of customers in this complex scenario,” said Michael Rutter, Senior Commercial Vice President of LATAM Airlines Group. “The group is increasing flights, destinations and frequencies, and taking concrete measures that respond to the new economic reality that clients and their families are facing. Those measures include more accessible and flexible flight options, new sanitation measures and customer assistance services for passengers during their trips.”

During June, LATAM Airlines Brazil will operate four international routes from São Paulo to Frankfurt, London, Madrid and Miami, while LATAM Airlines Group will operate from Santiago, Chile to Miami and São Paulo, a connection center through which customers can access these three destinations in Europe. By July, the LATAM group intends to increase international destinations to 13.

Domestically, LATAM Airlines Brazil will operate 74 routes, while LATAM Airlines Chile will reach 12 destinations that include La Serena, Copiapó, Temuco and Easter Island. Similarly, the affiliate in Ecuador is working to resume their domestic flights in June, with the Colombian and Peruvian affiliates expecting to reestablish their service in July, as permitted by local authorities.

MORE AFFORDABLE FARES

Given the new economic environment, the LATAM group further reduced costs and increased efficiency in order to offer tickets that on average can be up to 20% more affordable.

FLEXIBILITY TO TRAVEL

Given the uncertainty caused by the current health crisis, passengers will have more flexibility to buy tickets and schedule their trips, subject to applicable local regulations.

  • Until July 31, 2020, passengers can voluntarily reschedule their tickets on Latam.com before the departure of their flight. The first change will be without penalty or fare change (same destination, subject to cabin availability and validity of the ticket). The destination can change subject to a fare differential, if applicable.
  • If the passenger is not certain of the date of travel, they can leave their ticket open for 12 months, as long as they notify the airline through their website at least 7 days in advance. (My Trips section of LATAM.com)
  • In the event that a flight is canceled or rescheduled, passengers may reschedule their tickets without penalty or fare difference (subject to cabin availability, same destination and validity of the ticket). If they wish to change their destination, a rate difference will apply if one exists.

ASSISTANCE DURING YOUR TRIP

This new platform on the LATAM website contains detailed information on the chosen destination and provides travel solutions for passengers, who will also be able to connect with third-party providers on passenger responsibilities of securing entry, exit and any re-entry criteria for the destination they are visiting.

GLOBAL CATEGORY CLEANING STANDARDS

LATAM Airlines Group and its affiliates have adopted the best sanitation practices in the world, following the recommendations of the WHO and the industry.

The measures:

During check in:

  • Attention to the passenger

The cleaning and disinfection of the passenger service area increased, including counters and all self-service kiosks.

  • Self-service terminals

The LATAM group has self-service kiosks at all the airports where it operates, guaranteeing an autonomous service without face-to-face counters.

  • Use of mandatory masks

From the moment of arrival at check-in and while boarding, as well as during flight and disembarkation, the use of masks will be mandatory for all passengers. This measure extends to cabin crew in all phases of the flight.

On board:

  • Continuous sanitation
    • Proactive disinfection procedures in all aircraft after each arrival on all flights and of the entire cabin with quaternary ammonium spray and additional manual cleaning.
    • Alcohol gel available onboard all aircraft.
    • Cleaning of frequent passenger contact points (e.g., handles, toilets, armrests, belts, screens, light and call switches, seat pockets, windows and trays) during all phases of flight.
  • Air Filtration
    • All of the L group’s fleet has air recirculation systems that renews the air every 3 minutes with HEPA (High Efficiency Particulate Air) filters, removing 99.97% of the particles.
  • More space on board
    • Boarding will include social distancing requirements between passengers, avoiding crowds. Front restrooms will remain for the exclusive use of the crew, to minimize contact with passengers.
  • Blankets and Beds
    • All blankets, downs, and pillows are laundered after each flight. In the case of pillows, they can also be discarded depending on the material.

LATAM Airlines (Chile) aircraft photo gallery: