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

May 26, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

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.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.


“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.

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.

Featured image courtesy of Brendan Dorsey / The Points Guy

The All-New United Quest℠ Card

WELCOME OFFER: Up to 100,000 bonus miles


CARD HIGHLIGHTS: 3X miles on United® purchases

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 80K bonus miles after you spend $5,000 on purchases in the first 3 months your account is open. Plus, an additional 20K bonus miles after you spend $10,000 in the first 6 months
  • $250 Annual Fee
  • Earn 3X miles on United® purchases, 2X miles at restaurants, on select streaming services & all other travel, 1X on all other purchases
  • Earn 3X miles on United Airlines purchases
  • Earn 2X miles at restaurants and on select streaming services
  • Earn 2X miles on all other travel
  • Earn 1X mile on all other purchases
  • Each year, receive a $125 credit on United® purchases and two 5k-mile anniversary award flight credits. Terms apply.
Regular APR
16.49% to 23.49% Variable
Annual Fee
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent, Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.