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AVH - Avianca Holdings SA News Story

$0.88 0.0  0.0%

Last Trade - 08/05/20

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.50bn
Position in Universe th / 6713

UPDATE 1-Panama airline Copa, grounded due to pandemic, reports 98% drop in revenue

Wed 5th August, 2020 11:02pm
(Updates with details from earnings release, background)
    By Marcelo Rochabrun
    Aug 5 (Reuters) - Panama's Copa Airlines  CPA.N  on
Wednesday reported that it earned almost no income between April
and June, with revenue falling 98% as coronavirus-related
measures virtually shuttered the Panama City airport that serves
as its home base. 
    Panama's tough anti-coronavirus measures, including a travel
ban that will go at least through August, has also become a
radical test of Copa's resilience. In normal times, Copa is
considered Latin America's most financially successful airline,
known for steady profits, low debt and a strong cash position. 
    But in the second quarter, Copa earned only $14 million in
revenue but spent $400 million keeping the business running, it
said in an earnings release. As a result, it swung to a $386
million net loss from a $50 million profit a year earlier. 
    Other publicly-traded airlines in Latin America have also
faced significant travel bans, especially Colombia's Avianca
Holdings  AVT_p.CN , but none saw their commercial operations
come to a total halt for three months. 
    Copa said in a statement that its only revenue in the
quarter came from "a small number of charters and humanitarian
flights." 
    Together with Avianca, Chilean LATAM Airlines Group  LTM.SN 
filed for bankruptcy protection in May, crushed by looming debt
payments, while Copa has so far managed to hold on without
significant restructuring. 
    The airline said it had $308 million in cash at the end of
June, largely thanks to a bond issuance that raised $343 million
during the quarter. 
    It now hopes to restart flying on Sept. 4, although
tentative restart dates have already been pushed back several
times since the pandemic upended air travel in March. 

 (Reporting by Marcelo Rochabrun; editing by Diane Craft and
David Gregorio)
 ((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
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