Copa Airlines Reports $168.8 Million USD Loss For Q4 2020

Copa Holdings, S.A. (NYSE: CPA), today announced that due to the continued effects of the COVID-19 Pandemic on the aviation industry, the airline operated on average, at approximately 27% of capacity compared to the same period in 2019.  Still, the airline was able to obtain a large amount of financing at the beginning of the COVID-19 Pandemic, maintaining liquidity and avoiding bankruptcy like regional rivals LATAM and Avianca.

For the full year 2020, Copa Holdings reported a net loss of $598.6 million, or $14.08 per share. Excluding special items, the airline would have reported a net loss of $259.5 million, or $6.11 per share.

Operating & Financial Highlights

• Copa Holdings reported a net loss of $168.8 million USD for the quarter, or $3.97 USD per share. Excluding special items, the airline would have reported a net loss of $85.2 million, or $2.00 per share. Special items for the quarter include an $80.1 million unrealized mark-to-market loss related to the airline’s convertible notes, a $4.4 million asset impairment charge on the Boeing 737-700 fleet, and a $0.9 million gain on the Embraer assets held for sale.
• Copa Holdings reported an operating loss of $95.1 million for the quarter. Excluding special items, the airline would have reported an operating loss of $91.5 million.
• For the full year 2020, Copa Holdings reported a net loss of $598.6 million, or $14.08 per share. Excluding special items, the airline would have reported a net loss of $259.5 million, or $6.11 per share. Special items for the full year include a $191.2 million in total impairment charges related to the Boeing 737-700 fleet, a $98.7 million unrealized mark-to-market loss on to the airline’s convertible notes, and a $49.2 million expected loss on the Embraer assets held for sale.
• For the full year 2020, Copa Holdings reported an operating loss of $460.9 million. Excluding special items, the airline would have reported an operating loss of $220.6 million for 2020.
• Cash consumption, defined as cash disbursements less proceeds, excluding extraordinary financing activities and asset sales, averaged approximately $6 million per month during the quarter. Cash consumption for the quarter benefited from changes in working capital, as cash proceeds increased ahead of capacity growth, while cash outflows lagged given the timing of certain accounts payable.
• Copa Airlines ended the quarter with $1.3 billion of available liquidity, consisting of approximately $1.0 billion in cash, short-term and long-term investments, and committed and undrawn credit facilities of $305 million.
• Copa Airlines closed the quarter with total debt, including lease liabilities, of $1.4 billion.
• Copa Airlines’ flight operations, measured in terms of available seat miles (ASMs), represented 15% in October, 28% in November, and 39% in December, as compared to the same periods in 2019. For the quarter, the airline’s ASMs were approximately 27% of ASMs in the same period in 2019.
• During the quarter, the airline completed the delivery of 5 Embraer 190 aircraft that were previously sold to a third party. As of December 31, 2020, there were 8 Embraer 190 aircraft sold and pending to be delivered.