Grupo Aeromexico, the parent company of Mexican flag carrier Aeromexico, announced it concluded restructuring process and exited Chapter 11, meaning that the airline managed to emerge from its bankruptcy protection.
As the Mexican company wrote in its statement dated March 17, 2022, Aeromexico “consummated its plan of reorganization” and “concluded its financial restructuring process” as well as “emerged from its Chapter 11.”
“Today is an incredibly exciting day for Aeromexico and we are ready to soar to new heights as we emerge from Chapter 11. We look forward to starting a new chapter in our Company’s history, backed by a sound financial base, solid capital structure, and investors who have full confidence in our future,” the airline’s chief executive officer Andres Conesa was quoted in a statement.
The airline, which has been reporting losses since 2017, voluntary filed for bankruptcy protection in June 2020, after it toppled the net losses of the three previous years due to the global COVID-19 pandemic. The decision to file for Chapter 11 in the US was taken after Aeromexico lost more than $110 million only in the first quarter of 2020.
Nevertheless, the carrier is now set to take significant steps to return to the market competitively. Aeromexico has already restarted its services to 84 destinations both domestically and internationally and is currently focused on its fleet renewal and modernization.
According to the statement, the carrier plans to allocate as much as $5 billion for acquisition of new aircraft in the next five years. By the end of 2022, the carrier expects to add 22 new passenger planes, expanding the fleet to a total of 145 jets with an average age of seven years.