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The general manager of the company explained that the recovery after the health crisis should be delayed and be “longer and slower than expected”, making it inevitable that the company and “its subsidiaries must resize their size and the way they operate ”
LATAM Airlines, the main airline conglomerate in Latin America, projects a longer and slower recovery than expected due to the financial crisis derived from COVID-19, for which reason its administration has decided to postpone its investments and are currently evaluating redefining some of its operations, assured today its general manager, Roberto Alvo.
During a meeting of shareholders of the company, ensures Reuters Agency, the executive reported that, according to his forecasts, the recovery of the company’s functions after overcoming the pandemic would not exceed 70% of what it had before the crisis and that could even go half way.
“These figures may change significantly in the coming weeks and months,” said the executive regarding the scenario facing the company.
Inside LATAM they have made an effort to preserve their cash position, which would close this month, bordering on 1.3 billion dollars, according to what Alvo disclosed.
For this, he said that the possibility of deferring the payments of the leased fleet is currently being negotiated, in addition to working on the postponement of the delivery of new aircraft for the second half of the current year.
“Since the coronavirus crisis was declared, we have already canceled and deferred approximately 900 million dollars of investments for this year,” he illustrated.
The executive also explained that the recovery after the health crisis should be delayed and be “longer and slower than expected”, making it “inevitable that LATAM Airlines and its subsidiaries must resize their size and the way they operate.”
Since the middle of last month, the airline has been announcing a gradual reduction in its operations due to lower demand and travel restrictions established by governments due to the spread of the pandemic that led to a collapse in the total passenger traffic of the group corresponding to 38% in March, which led to accumulating a drop of 10.1% in the first quarter.
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