LATAM Airlines loses $890 million due to coronavirus restrictions By Reuters

LATAM Airlines loses $890 million due to coronavirus restrictions By

© Reuters. FILE PHOTO: Passengers wait to check in for their flights at the departure area of Latam airlines inside of the Commodore Arturo Merino Benitez International Airport in Santiago

By Fabian Cambero

SANTIAGO (Reuters) – LATAM Airlines (OTC:), South America’s largest carrier, on Tuesday reported a net loss of $890 million for the second quarter, hit by the coronavirus pandemic that drove the company into a Chapter 11 bankruptcy filing in May.

The carrier posted a 75% drop in revenue between April and June due to widespread travel restrictions around Latin America.

“COVID-19 has had a very significant impact, which is reflected in the company’s numbers,” LATAM CFO Ramiro Alfonsin told journalists.

LATAM and its rivals are struggling to preserve cash while operating just a small fraction of their usual flights. The carrier has laid off thousands of employees and said it will transform itself into a smaller company for years to come.

LATAM’s Chapter 11 filing has allowed it to raise more than $1.3 billion in cash from investors, although it still needs the approval from a bankruptcy judge before it can access the money.

Alfonsin said the airline had operated during the quarter at 6% of its normal capacity and that demand in Brazil, its largest market, was showing some signs of recovery.

He added LATAM ended the quarter with a total cash position of $1.4 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.