(Adds Aeromexico statement, company background)
MEXICO CITY, Jan 28 (Reuters) - Shares of Aeromexico rose more than 22% on Thursday after the Mexican airline negotiated new contracts with two labor unions, bringing it closer to accessing a second tranche of bankruptcy financing.
As part of the deal with the pilots’ association (ASPA) announced late on Wednesday, Aeromexico and the union agreed to pay cuts amounting to $350 million.
Aeromexico said on Thursday it has also reached a deal with the flight attendants’ union (ASSA). It had negotiated agreements with its two other unions in December, part of a requirement for the next disbursement of funding.
The company’s stock rose as much as 22.6% on Thursday to its highest level since December, before trimming gains.
The airline was approved for up to $1 billion in debtor-in-possession (DIP) financing, and received an initial $100 million payment in September.
“The objectives reached during the negotiations were necessary for the company to meet certain commitments and objectives required by the funders,” Aeromexico said in a filing with the Mexican stock exchange.
It did not disclose the terms of the agreements.
Aeromexico filed for Chapter 11 bankruptcy protection in a U.S. court in June, after the coronavirus pandemic slammed the global travel industry. (Reporting by Miguel Angel Gutierrez and Daina Beth Solomon in Mexico City Editing by Matthew Lewis)