Copa Airlines recorded losses of $598 million in 2020.

Redacción - Aviación al Día

5 years ago

Panamanian airline Copa Airlines recorded a net loss of US$598.6 million in the 2020 financial year, in contrast to the US$247 million profit recorded in the previous year, due to the impact of mobility restrictions derived from the Covid-19 pandemic, according to the company’s quarterly accounts.

“Due to the continued effects of the Covid-19 pandemic on the aviation industry, the company operated on average, approximately 27% of its capacity for the same period in 2019,” the airline said.

Without taking into account extraordinary impacts, including the mismatch of charges related to the Boeing 737-700 order and the estimated loss of US$49.2 million on the Embraer assets the company has for sale, the company would have scored a loss of US$259.5 million, EuropaPress reviewed.

Copa Airlines’ turnover fell 70.4% in 2020, to US$801 million. Passenger revenues plummeted 70.9% to $760.6 million, while revenue from cargo operations contracted 66.4% to $21 million.

The company’s operating costs fell by 46.6% in 2020, to $1.261 billion. Salaries and other personnel expenses fell by 43.1% to $256.3 million. Fuel costs fell by 76.1% to $166.7 million, while costs associated with flight operations contracted by 70.8% to $30 million.

As a result, Copa Airlines’ operating income went into the red in 2020, with a loss of US$460.9 million, compared to a profit of US$346.1 million the previous year.

In the fourth quarter of the year, the airline recorded a net loss of US$168.8 million, compared to a profit of US$158.6 million, a 76.7% decrease.