The pandemic hit Latam Airlines‘ finances hard due to border closures and quarantines. In this context, and in order to adapt to the new demand scenario, the company designed a staff reduction plan in the different countries where it operates – which was implemented during the exercise – and also requested its employees a temporary and voluntary reduction of their salaries.
See also: Latam Airlines crew fined in Australia.
Although in principle it was estimated that the measure would only be for three months (April, May and June) the recovery of the activity took longer than expected and the cuts extended until the end of this year, La Tercera reported.
Thus, during the second quarter, remunerations were reduced by 50%, during the third quarter by 20% and during the fourth quarter by 15%. However, as of 2021 the airline will once again pay 100% of salaries to its workers.
In recent months the company has been increasing its operations, both domestically and internationally. In November it operated at 33.4% of its capacity.