Aeromexico’s shares nosedive after it files for Chapter 11

MEXICO CITY (Reuters) – Shares in Mexican airline Aeromexico plummeted on Wednesday, falling by as much as 65.7% after the company said late on Tuesday it had begun restructuring under Chapter 11 proceedings.

Mexico’s stock exchange briefly suspended trading in Aeromexico shares.

Aeromexico is the third airline to file for bankruptcy protection in Latin America, where carriers have been more affected by the crisis than anywhere else in the world.

Fellow Mexican carrier Interjet has also been struggling under the burden of coronavirus-imposed travel and tourism restrictions.

The Mexican aviation industry has had its fair share of ups and downs.

Mexicana airlines, formerly Mexico’s oldest carrier and one of its two largest airlines, was forced to ground flights due to a heavy debt load. It was declared bankrupt in 2014.

Delta Air Lines holds a 49% stake in Aeromexico.

(Reporting by Noe Torres; Writing by Anthony Esposito; editing by Jonathan Oatis)