COVID 19: Latin airline bankruptcies reflect lack of government aid

It is not a coincidence that just as IATA determined that Latin American airlines had received the lowest levels of government assistance worldwide, two of the region's major airlines - Avianca and LATAM Airlines Group - have sought bankruptcy protection during the past couple of weeks.

IATA and other organisations have been sounding the alarm that Latin American operators were in danger without some form of government assistance, and now those warnings have come to fruition.

Unlike Avianca, LATAM was in better financial shape before the COVID-19 crisis and before entering Chapter 11, and appears to have supportive shareholders that are extending loans to the airline.

LATAM is not a brand that will disappear, but its bankruptcy filing shows how airlines have been blindsided by the pandemic. And it could be a wake-up call for more government support to materialise in the region.