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Cornered by the blockade suffered by international flights, airlines seek to stimulate demand and ensure travelers
The spread of the coronavirus is hitting airlines worldwide. And Latam is no exception.
The airline is going through one of its most critical financial moments: last week its share fell more than 50% on the Santiago Stock Exchange, given the advance of COVID-19 that produced the temporary closure of almost all the important borders where the airline operates, such as the United States, Colombia and Peru.
However, precisely this prompted the airline linked to the Cueto family to take more drastic measures to generate cash and face the health crisis that threatens to hit the aeronautical sector hard, notes Diario Financiero
In order to stimulate demand for when the crisis is expected to begin to overcome, Latam made international tickets for sale at very low cost between April and December 2020. A kind of “lightning promo,” which started this week but to be repeated on several occasions.
This consists of the offer of tickets with more than 65% discount to destinations such as Miami, New York, Rio de Janeiro or Lima, which were put on sale for the first time this Tuesday.
From the aeronautical industry they indicate that the demand for air tickets could recover, in an optimistic scenario, only at the end of 2020, reaching 60% of international capacity and 80% in the national segment, so it is important to have stimulus measures for when the worst of the crisis is over, indicates Diario Financiero.
Even so, Latam Airlines is analyzing how this distribution of low-cost tickets will take place for the whole year.
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