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Aeroméxico Denies Recent Bankruptcy Rumors
According to Businessinsider.mx, Aeroméxico transported 135,000 passengers in May, 92.4% less compared to the same month in 2019. The Mexican carrier did not escape the bad results and recently made a public statement in which it declared that during the past month the airline served 124,000 national travelers and 11,000 international passengers.
During May, Aeroméxico carried out 83 long-range cargo charter operations, which represented 66.7% of the airline’s capacity. These flights were directly contracted by the federal government in order to transport medical equipment from China to Mexico.
According to Yahoo Finance, the Grupo Aeroméxico SAB de CV bonds with 2025 mature date lost almost a third of their value on Friday after people with knowledge of the matter said that the company is evaluating its options to file for Chapter 11 bankruptcy protection in the United States because the pandemic is paralyzing air travel around the world.
Due to this rumor, Aeroméxico CFO Ricardo Sánchez Baker insisted that the carrier could keep up with debt payments, despite the airline’s bonds plummeting amid bankruptcy speculations. In addition, the Mexican airline declared it did not initiate or made the decision to initiate a reorganizing procedure under the Chapter 11 U.S. bankruptcy law.
Reportur stated that the company is analyzing different alternatives to successfully keep flying in the short and medium terms, specifically looking at an orderly restructuring of its financial commitments without having any effect on its operations.
In a web conference, the Aeroméxico Group Executive Director in Institutional Relations, Sergio Allard, declared that the airline is working on strategic plans to continue its operations. Although Delta Air Lines owns 49% of Aeroméxico and obtained financial assistance from the U.S. government, the U.S. carrier cannot inject capital into the Mexican carrier. Delta recieved financial support through the CARES Act, which was accumulated from U.S. taxpayers, so the funds must be used to maintain connectivity and jobs in the U.S. Allard also specified that the carrier has many options to move forward and affirmed that Delta has stated that it will continue as an Aeroméxico shareholder.
On the other hand, Allard stated that due to the COIVD-19 pandemic, the Mexico City International Airport will reach its saturation levels again in four or five years and therefore he agrees with the decision made by the Ministry of Communications and Transportation to cancel the construction of Terminal 3 in the Benito Juárez International Airport.
Allard pointed out that the new terminal was previously needed due to capacity issues at the airport, because as it would have added 17 gates to the airport. However, with diminished demand, Allard said: “I agree that all airport infrastructure projects may be postponed for about two years at least.”
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