Recent out of judicial restoration, Latam publicizes first new vacation spot within the nation in 2023
- November 12, 2022
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The city of Passo Fundo, responsible for moving about R$ 8.9 billion annually and for the eighth largest GDP in Rio Grande do Sul, will receive flights from the second half of the year.
The city of Passo Fundo, in Rio Grande do Sul, should start receiving Latam flights from next year and is the first new destination announced by the company. The start of the operation is scheduled for the second quarter of 2023, with travel from Guarulhos airport, in São Paulo.
The choice of the new destination, according to the company, is a way of bringing service to one of the largest cities in the state, with an economy based on commerce and agribusiness. The municipality moves around R$ 8.9 billion annually and has the eighth largest GDP in the state, according to IBGE data.
Latam must still inform when ticket sales for the municipality will begin.
The new destination is third in Rio Grande do Sul, where it operates flights to Porto Alegre and Caxias do Sul, the city it entered in July this year.
“Now, stronger than we were in 2019, we know that we have the capacity to fly to up to 70 national airports with our current fleet. Therefore, in 2023, it is our commitment to efficiently expand this connectivity so that more Brazilians can fly more and more”, said Jerome Cadier, CEO of LATAM Brazil.
Currently, the company already flies to 54 destinations, the largest number in its history in Brazil.
What is the company’s timing?
Latam announced on Thursday, 3rd, that it has exited judicial recovery, a situation it had been in since May 2020 when it filed the request in the United States at the beginning of the Covid-19 pandemic.
To put the judicial recovery process behind, the group issued US$ 1.15 billion in bonds, part due in five years and part in seven years. It also secured $1.1 billion in financing over five years.
The amounts will be used to pay other financing that the company contracted at the beginning of the recovery process. The company also obtained a revolving line of credit of approximately US$ 500 million.
The company reported that debt today is approximately $3.6 billion lower on its balance sheet compared to the period prior to the lawsuit – the reduction is equivalent to 35%.