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COVID-19: major uncertainty clouds Latin America’s potential

Premium Analysis

Aeromexico’s recent bankruptcy filing reflects the bleak outlook for Latin America as the region battles the spread of COVID-19, and governments in the region have largely opted not to offer financial assistance to their respective airlines.

Aeromexico is the third airline in Latin America to seek Chapter 11, joining other full service operators Avianca and LATAM Airlines Group in being forced to rightsize through a formal restructuring. 

Demand in Latin America will take longer to recover compared to other regions of the world, however long term opportunities remain robust, and those airlines that emerge from the crisis intact could be in a prime position to take advantage of a rebound when it occurs. 

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