Government aid for Brazil's airlines shrinks, while Panama's Copa shrugs off bailout

Stress has been mounting for Latin American airlines as carriers brace for a slow recovery from the coronavirus pandemic, but Brazil’s government on Thursday reduced the loan aid available for carriers, while Panama’s Copa Airlines said it did not need a bailout. “We’re not requesting nor are we expecting any aid from the government,” Copa CE Pedro Heilbron told analysts on Thursday. “I think the government has bigger issues to deal with.” In Brazil, a source familiar with government discussions said that the country’s BNDES state bank had shrunk by a third the loan aid available for Brazil’s top three carriers to 6b reais ($1.03b). The Brazil CEOs for carriers Gol Linhas Aereas Inteligentes, LATAM Airlines Group and Azul SA have pushed for government loans that they see as essential. They had been hoping for 3b reais in available aid for each company within Brazil. The contrast in messaging between Copa and Brazil’s carriers highlight the differences in their financial health. While Copa could have distributed a dividend this year, flying in Brazil almost always leads to a loss for its airlines. In Panama, Copa has reinforced its liquidity privately, most recently with a $350 million bond offering in late April, part of a plan to build a “fortress” of cash,” Heilbron said. It added it was planning to retire early its fleet of 14 older Boeing 737-700 NG planes, the latest carrier to do away with planes due to the coronavirus crisis. <br/>