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Aeromexico files for US bankruptcy, citing 'unprecedented' challenges

July 1, 2020. Summarized by summa-bot.

Aeromexico is filing for bankruptcy protection in the United States, making it the latest carrier to succumb to the pressures of the coronavirus pandemic.

Hong Kong/Mexico City (CNN Business)Aeromexico is filing for bankruptcy protection in the United States, making it the latest carrier to succumb to the pressures of the coronavirus pandemic.

Mexico's flagship airline announced Tuesday that it had applied to start restructuring under Chapter 11, which will allow it to continue flying.

"Our industry faces unprecedented challenges due to significant declines in demand for air transportation," CEO Andrés Conesa said in a statement.

Like many airlines, Aeromexico has been forced to limit its operations as demand for air travel has dried up.

Over the last few months, the airline has grounded part of its fleet, and it announced in March that it would start operating "cargo-only flights for the first time. "

The company is the latest Latin American carrier to file for Chapter 11 in the United States.

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 overhaul.

As air travel begins to rebound in some countries, Aeromexico will "expand flight service" imminently, with plans to double its domestic flights and quadruple international capacity in July compared to levels from last month, it said.

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