According to aviation publication Simple Flying, LATAM Airlines (NYSE:LTM, IPSA: LTM) has reduced its order for Airbus A350 XWB aircraft from 25 to 15 during the month of March. The airline already has 13 of the models delivered in the A350-900 variant.
“We are looking at the next three or four months, we will be at our lowest point. Then by December we project to be at 60-70% of our operations that we had before the COVID-19 crisis. It will take us another 12 months, that’s to say December 2021 to completely recuperate demand,” LATAM Airlines Colombia director Santiago Álvarez told Colombian business daily La República.
After LATAM was created b the merger between LAN airlines in Chile and TAM in Brazil in 2016, the airline has never posted an annual profit. This year looks like it will be no different. The airline does have a strong route network and backing by shareholders like Delta Airlines in the US and Qatar Airways.
Seeking government bailouts
“Without the help of the governments, the aviation industry cannot withstand,” said Rosario Altgelt, the CEO of LATAM for Argentina in an interview with Argentine media outlet Radio Mitre. “Our cashflow is broken. We are going to have to fund the airlines.”