LATAM Airlines Argentina will cease cargo and passenger operations for an indefinite period as difficult market conditions take their toll.
The move will result in the cancellation of 12 domestic destinations while international services operated to and from Argentina by the overall LATAM Cargo group will remain active “according to their clients’ needs”.
“The announcement is a result of current market conditions, exacerbated by the impact of the Covid-19 pandemic and the difficulty of building structural agreements with local industry actors, which has made it impossible to foresee a viable and sustainable long-term project,” the company said.
The company said LATAM Cargo transports an average of 270 tons of exported goods – including berries, fresh meats and pharmaceuticals – and 290 tons of imported goods (mainly auto parts, industrial machinery and pharmaceuticals) to and from Argentina each week.
Fleet tracking websites state the Argentinian airline operates 11 Airbus A320-200s.
The news comes following the LATAM Airlines Group’s decision to file for Chapter 11 bankruptcy protection in May.
The company said the voluntary filing had the support of key shareholders Cueto Group and Qatar Airways, which will provide up to $900m in debtor-in-possession financing.
While affiliates in Chile, Peru, Colombia, Ecuador and the US were included in the filing, those in Argentina, Brazil and Paraguay were not.
