Why Latam Airlines Shares Gained 11%, Then Lost 14%, on Thursday
Latam Airlines Group (NYSE: LTM) stockholders endured a volatile ride on Thursday, with shares of the Latin American airline rallying 10% and falling 14.5% in a single trading session. Such is life for shares of companies that have filed for bankruptcy, and the turbulence experienced by Latam holders is unlikely to subside anytime soon.
Latam earlier this week became the largest airline so far to declare bankruptcy due to the COVID-19 pandemic, filing for Chapter 11 protection in New York. The airline has more than $10 billion in debt and little revenue coming in because of the pandemic, which has taken a particularly hard toll on South American airlines due to their reliance on cross-border traffic.
Image source: Getty Images.
Source Fool.com
