Copa Airlines restarts flights backed by solid financial foundation

Copa Airlines is working to resume limited operations before a more pronounced restart of service in Sep-2020. The company has been grounded since Mar-2020 as its home country of Panama, and many other countries in Latin America, have essentially shut off their borders. 

By YE2020 Copa could operate up to 40% of the capacity it deployed in 2019, but the company is working to size its fleet to accommodate what could be much lower demand for the next couple of years. 

Despite being grounded for five months, Copa remains on solid footing, which is commendable, given that some of its larger peers in Latin America have sought to restructure under Chapter 11 bankruptcy protection. 

Summary:

• Copa prepares to resume operations after being grounded for nearly five months, and projects operating up to 40% of 2019 capacity levels by YE2020.
• The airline is working to shrink its fleet through the retirement of Embraer 190s and Boeing 737-700s, and will likely engage in lease returns when contracts expire. 
• Even as it has been grounded for months, Copa remains in a solid position to weather the COVID-19 crisis, whereas some of its larger peers in the Latin America have been forced into Chapter 11 bankruptcy protection.

View more here: https://centreforaviation.com/analysis/reports/copa-airlines-restarts-flights-backed-by-solid-financial-foundation-533691