During the U. S. Memorial Day weekend holiday, residents of Venezuela received news that two major airlines would no longer conduct regular flights into Caracas. Many analysts attributed the change in air flight schedules to worsening economic conditions within Venezuela.
On Sunday, the large German airline Lufthansa reported that it would cease flights into Venezuela as of the 17th of June, 2016. Then on Monday, LATAM Airlines, a prominent carrier in many parts of Latin America, announced that it would cease flights from Sao Paulo, Brazil into Venenzuela. LATAM also indicated that the company anticipated ending flights from two cities in additional South American nations by August. The firm anticipates suspending service from Santiago, Chile and Lima Peru to Caracas until Venezuela enjoys a rebound in the demand for tickets.
Lufthansa’s spokesman Danilo Diaz Granados explained that Venezuela owes the airline millions of dollars in funds from ticket revenue. Additionally, the company has encountered both a significant drop in demand for tickets from business passengers and difficulty obtaining conversions of monies into Venezuelan currency. LATAM announced that the suspension of its flights would continue “indefinitely“.
My Space reports indicated that Venezuela has used its supply of foreign currency recently to pay for essential items, such as industrial machinery and medicinal supplies. This situation may account in part for the difficulty of airlines in obtaining monies owed to airlines.