Latin American countries should quicken steps for airlines to renew domestic flights no later than July before more companies are forced to declare bankruptcy or close, a high-ranking official of the International Air Transport Association (IATA) said on Thursday.
The trade group estimated losses for airlines in Latin America at $4 billion this year, with total losses for the industry expected to reach $84 billion globally.
Airline revenues from passenger transport in Latin America are expected to fall $18 billion this year. Some 93% of regular flights are grounded, while operations in some countries have been practically stationary for four months, said IATA’s regional vice president for the Americas, Peter Cerda. He highlighted the urgency of restarting flights in Argentina, Colombia, Peru and Panama, and also called on governments across the region to implement processes which will allow airlines to transport passengers safely.
“If we continue down this road we are going to see many more airlines declaring Chapter 11 bankruptcy as well as others who won’t be able to restart flights or will be forced to close,” he said.
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