The company said that it had not reached an agreement with unions to reduce wages, and that as a result, it had decided to reduce the number of its employees to maintain its activity.
Latam indicated that, until Tuesday, a voluntary departure plan would be presented, and then the layoffs would begin, if there were not enough staff applying to leave.
In April, the company announced a 95% decrease in its activities, and the company arose from a merger between Chilean “Lan” and Brazilian “Tam”.
Prior to the pandemic, the company used to provide about 1,400 flights per day, and carried more than 74 million passengers annually.
The aviation industry worldwide has been severely affected by the new Corona virus, as it has been directly affected by quarantine and border closures.
At the end of May, Latam filed a request in the United States for protection from creditors, under Article 11 of the Bankruptcy Act.
The American Airlines Association predicted a $ 250 billion decrease in revenue this year, and excluding the return of passenger numbers to 2019 levels before 2023.
The Covid-19 epidemic caused massive losses to the global tourism sector, amounting to $ 320 billion, from January to May, according to estimates by the World Tourism Organization on Tuesday, broadcast by Agence France-Presse.
The Madrid-based organization said the figure was “three times higher than the losses recorded by international tourism during the global financial crisis of 2008/2009.”