Airlines will struggle to recover in Latin America

Significance LATAM is seeking to raise an estimated USD2.15bn to stay afloat while it resizes its operations and restructures its balance sheet to adjust to COVID-19's implications for the airline industry. Impacts With Aeromexico, LATAM and Colombia’s Avianca in bankruptcy proceedings, regional airline competition will be greatly reduced. LATAM’s downsizing will have an important local economic impact through its numerous suppliers, many of which are small businesses. In Chile, LATAM faces a class action suit which claims it owes customers some 200 million dollars, mostly for cancelled flights.