COVID-19 and aviation: Chile’s climbing cases add more uncertainty

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Led by Brazil, Latin America has become a hotspot for the COVID-19 outbreak. Behind Brazil are Peru and Chile, which continue to see their cases climb, and it is unpredictable when the curve will flatten in the region.

Before the pandemic, Chile had posted solid domestic passenger growth, and the market was benefitting from the establishment of low cost and ultra low cost airlines to challenge the long-dominant leader, LATAM Airlines Group.

The COVID-19 crisis has resulted in LATAM filing for Chapter 11, and it is still highly uncertain whether the Chilean government will extend financial support to the country's airlines.

Similarly to numerous countries in the region, Chile faces major economic challenges that could create headwinds for the country's airlines as they work to rightsize their operations in light of significantly diminished demand.

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