Copa, grounded due to pandemic, reports 98% drop in revenue

Panama’s Copa Airlines 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 Q2, Copa earned only $14m in revenue but spent $400m keeping the business running, it said in an earnings release. As a result, it swung to a $386m net loss from a $50m profit a year earlier. Other publicly-traded airlines in Latin America have also had to cope with significant travel bans, but none saw their commercial operations come to a total halt for three months. Copa said that its only revenue in the quarter came from “a small number of charters and humanitarian flights.” <br/>