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LATAM enters bankruptcy due to coronavirus, says it will keep flying

May 26, 2020
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2 min read
LATAM 767 New Cabin_March 2019_BDorsey-7
LATAM enters bankruptcy due to coronavirus, says it will keep flying
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The effects of the coronavirus pandemic on the travel industry have been particularly brutal. Several hotels have shuttered their doors temporarily or permanently while airlines have slashed routes and furloughed staff.

Now, another airline is feeling the effects of the pandemic. LATAM Airlines on May 26 filed for Chapter 11 bankruptcy protection in the United States, citing a collapse in demand and subsequent financial pressures caused by COVID-19,” the airline said in an infographic detailing the filing.

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“We are looking ahead to a post-COVID future and are focused on transforming our group to adapt to a new and evolving way of flying,” Roberto Alvo, LATAM Airlines Group CEO, said in a statement, “with the health and safety of our passengers and employees being paramount.”

The statement says the airline will continue flying, paying its employees, meeting benefit obligations, and paying critical suppliers. LATAM says it will also honor LATAM Pass miles and flight reservations.

Bloomberg reports the airline just over $1 billion cash on hand.

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The filing comes just weeks after South American carrier Avianca filed for Chapter 11 protection, citing an 80% decline in revenues due to the coronavirus pandemic, as we previously reported. Avianca’s scheduled passenger operations have been suspended since mid-March due to COVID-19.

Related: What does Avianca’s bankruptcy filing mean for the LifeMiles program?

Delta last year purchased 20% of LATAM Airlines — a then a member of the carrier’s alliance competitor, Oneworld. Since then, LATAM has begun building its new partnership by announcing several new flights and opening a new lounge, intended to feed LATAM connections in Miami, an airport dominated by American Airlines.

Delta SkyMiles members can now earn and redeem miles for travel on LATAM. Additionally, LATAM customers will be able to earn and redeem miles on Delta-operated flights.

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  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.