Latam Airlines has permanently discontinued operations in Venezuela, saying the route is no longer economically feasible.
“Latam makes this decision due to the inability to repatriate capital”, the airline said in a press release. Annual inflation in Venezuela is running about 800 per cent, a figure the government’s central bank refuses to accept in its conversion rate to U.S. dollars. The press release said that “no further negotiations” with the Venezuelan government were planned.
In May, Latam discontinued flights from Caracas to Santiago, Sao Paulo and Lima due to what it called the “complex macroeconomic scenario in the region.” At the time, the airline said it was was in negotiations with Venezuela to resume services.
Latam joins other international airlines have stopped their flights to and from Venezuela in recent months. Mexican Aeromexico and German Lufthansa ended service in June, while American Airlines continues to fly to Caracas but on a limited basis.
Latam is South America’s largest air carrier, providing service to Quito, Cuenca, and Guayaquil in Ecuador.