Flight freeze cost Copa Holdings $386 million in three months
The coronavirus (Covid-19) really hit the finances of the Copa Holdings group, which operates Copa Airlines and Wingo. The company reported a loss of $386 million for the second quarter of 2020, after its revenue plummeted to $14 million.
In the first quarter, Copa had recorded revenues of $595.5 million and a profit of $74 million.
Copa Airlines' fleet of 102 aircraft has been stationed at Tocumen International Airport since March 23, and in recent months the airline has used only about 1% of its fleet to carry out humanitarian and repatriation flights.
Starting this month, Copa Airlines will carry out a series of commercial flights after the Panamanian government authorized a controlled transfer operation in Tocumen that will allow the movement of passengers in the area terminal.
The latest decision of the Civil Aviation Authority extended the suspension of commercial flights until August 22, while Copa expects to resume operations from August 4, but only on Fridays and Sundays, while daily flights would be from October.
It attributes $186.8 million in losses recorded between April and June to the deterioration of its Boeing 737-700 fleet, which the company will sell.
The company notes that its monthly expenses are $77 million and that at the end of the second quarter it repaid a loan for $95 million, and closed a line for $105 million that was not used. In April, Copa Holdings issued bonds for $350 million at an annual rate of 4.50% that expire in 2025.
Copa Airlines' fleet of 102 aircraft has been stationed at Tocumen International Airport since March 23, and in recent months the airline has used only about 1% of its fleet to carry out humanitarian and repatriation flights.
Starting this month, Copa Airlines will carry out a series of commercial flights after the Panamanian government authorized a controlled transfer operation in Tocumen that will allow the movement of passengers in the area terminal.
The latest decision of the Civil Aviation Authority extended the suspension of commercial flights until August 22, while Copa expects to resume operations from August 4, but only on Fridays and Sundays, while daily flights would be from October.
It attributes $186.8 million in losses recorded between April and June to the deterioration of its Boeing 737-700 fleet, which the company will sell.
The company notes that its monthly expenses are $77 million and that at the end of the second quarter it repaid a loan for $95 million, and closed a line for $105 million that was not used. In April, Copa Holdings issued bonds for $350 million at an annual rate of 4.50% that expire in 2025.