Copa Airlines Reports $386 Million USD Loss For Q2 2020

Copa Airlines Reports $386 Million USD Loss For Q2 2020

Due to air travel restrictions implemented in response to the Covid-19 outbreak, the Panamá based carrier did not provide scheduled commercial service during the second quarter of 2020, and only operated a small number of charter and humanitarian flights representing less than 1% of the airline’s capacity in 2Q 2019.

Copa Holdings reported a net loss of $386.0 million USD (all figures in this article are US Dollars) or $9.08 per share. Excluding special items, the airline would have reported a net loss of $114.6 million, or $2.70 per share.

Copa has now scheduled the restart of its regular commercial flights for September 4th, 2020.

Special items for the quarter include a $186.8 million non-cash impairment charge on the B737-700 fleet as a result of the airline’s announcement to sell those aircraft, a $50.0 million loss expected on assets held for sale (Embraer aircraft, spare engines, spare parts and a simulator), a $22.2 million unrealized loss on the mark-to-market of the convertible notes, and a $12.3 million reversal for unredeemed tickets revenue provisions recorded in the first quarter, given the uncertainty of future passenger behavior due to the Covid-19 situation.

Copa Holdings reported an operating loss of $357.9 million.  Excluding special items, the airline would have reported an operating loss of $108.7 million. Cash burn, defined as the cash disbursements less proceeds excluding extraordinary financing activities, averaged $77 million per month during the quarter.

In April, the airline raised $343 million in cash through a senior convertible note offering.  Cash, short-term and long-term investments totaled $1.14 billion at the end of the quarter. The airline entered into new committed, unsecured credit facilities of an additional $150 million (currently undrawn) and closed the quarter with $1.29 billion of available liquidity. The airline repaid $95 million in short-term lines of credit, closing the quarter with a total debt of $1.3 billion.

Copa Holdings ended the quarter with a consolidated fleet of 102 aircraft – 6 Boeing 737MAX9s, 68 Boeing 737-800s, 14 Boeing 737-700s, and 14 Embraer-190s. During the month of July, the airline closed a secured revolving credit facility for an initial aggregate amount of $105 million.  Including this facility, the airline now has $255 million in unutilized committed credit facilities. On July 17th, due to the Covid-19 pandemic, the Panamanian government announced the extension of air travel restrictions until August 21st, 2020. On July 31st, the airline signed a $79.1 million contract for the sale of its remaining 14 EMB-190s, 6 spare engines and spare parts, and expects to deliver these assets over the next 12 months.

Related Posts

Do NOT follow this link or you will be banned from the site!
%d bloggers like this: