July 29, 2020 / 2:57 AM / 13 days ago

Aeromexico posts $1.2 billion quarterly net loss, lays off 2,000

The logo of the aerial company Aeromexico is seen at the Aeromexico counter at Benito Juarez international airport in Mexico City, Mexico, July 1, 2020. REUTERS/Edgard Garrido/Files

MEXICO CITY (Reuters) - Mexican airline Aeromexico, which is in a Chapter 11 restructuring process, said on Tuesday it posted a $1.2 billion net loss for the second quarter and laid off about 2,000 workers as the coronavirus pandemic roils the airline industry.

“The commercial aviation industry faces unprecedented challenges stemming from a significant reduction in passenger demand worldwide,” the firm said in a statement.

Mexico’s largest airline posted a 27.42 billion peso ($1.19 billion) net loss for the second quarter, as total revenues slipped by nearly 85% to some 2.61 billion pesos from 16.83 billion pesos a year earlier.

Aeromexico, part-owned by Delta Air Lines, late last month became the third airline to file for bankruptcy protection in Latin America, where carriers hit by the coronavirus have had limited help from governments.

Aeromexico’s revenue passenger kilometers, an industry metric, dropped 92.6% during the second quarter versus the same period a year earlier. During the second quarter, 529,000 passengers flew on Aeromexico, down 89.9% from a year earlier.

“The evolution of the COVID-19 pandemic and the closing of borders in various countries were reflected in a significant reduction in the demand for air transport as of the third week of March,” Aeromexico said.

That carrier said that it has reduced its workforce by 1,963 workers, bringing it to 14,697 people.

($1= 22.9570 pesos at end-June)

Reporting by Noe Torres and Anthony Esposito; Editing by Cynthia Osterman and Gerry Doyle

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