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LATAM Airlines, the largest Latin American air transport group, had losses of $2.12 billion in the first quarter after an accounting adjustment of its assets amid the coronavirus pandemic, the company said in a statement late on Friday.

LATAM said its operational quarterly result was 17% higher year-on-year despite the fact that in March it reduced its offer of flights due to the first effects of the health crisis.

The firm mainly attributed the loss to a goodwill impairment loss of $1.73 billion as a result of the pandemic, the statement said.

“The accounting loss is a natural consequence of the impact that COVID-19 has had over the entire industry, where inevitably the assets of airlines are devalued due to the impossibility of operating,” CEO Roberto Alvo said in the statement.

Revenue from ordinary activities fell 6.8% to $2.266 billion between January and March.

LATAM filed for U.S. bankruptcy protection on Tuesday, becoming the world’s largest carrier so far to seek an emergency reorganization due to the pandemic.

(Reporting by Fabian Cambero, writing by Hugh Bronstein; Editing by Kirsten Donovan)

This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Photo Credit: LATAM Boeing 787-9 Dreamliner photographed on May 13, 2016. LATAM said May 29 that it lost $2.1 billion in the first quarter. LATAM