Latam airlines, Latin America's largest carrier, filed for bankruptcy in the United States on Tuesday due to a sharp decline in business due to the covid-19 outbreak, the airline said in a statement.

"Latam airlines has been forced to make a series of extremely difficult decisions over the past few months, given the impact of the covid-19 crisis on the airline industry," latam chief executive roberto alvaux said in a video statement.

"Latam airlines and its subsidiaries in Chile, Peru, Ecuador and Colombia are undergoing a voluntary restructuring under chapter 11 protection," he added.

Chapter 11 of the U.S. bankruptcy code allows companies that cannot pay their debts to restructure without pressure from creditors, the report said.

Last month, the chilean-brazilian airline said it would reduce its operations by 95% in response to the global health crisis. The company also announced hundreds of job cuts earlier this month.

"The chapter 11 financial restructuring provisions provide us with a clear and instructive opportunity to work with our creditors and other stakeholders to reduce our debt and address the business challenges facing our industry," the company said in a statement.

The airline said the bankruptcy filing would have no immediate impact on passenger or cargo flights.

Before the outbreak, latam airlines operated in 145 destinations in 26 countries and regions and operated about 1,400 flights a day, the report said.