Copa reports profits on strength of leisure demand

Copa Airlines’ recovery happened faster than expected, especially given the Panamanian carrier has virtually no domestic routes. Visiting friends and relatives (VFR) and leisure traffic are fueling its climb out from the pandemic. The nature of its business has changed, however. CEO Pedro Heilbron observed that before the pandemic, VFR, leisure, and business travel each accounted for a third of Copa’s traffic. Now, VFR and leisure account for about 40% each, and business travel comprises just 20%. This appears unlikely to change in the near term. The carrier flew 70% of its pre-pandemic capacity in the third quarter and is planning to add more in the fourth quarter and Q1 of next year. It has maintained six flight banks at its hub at Panama City’s Tocumen Airport, which is unlikely to change, although Copa is operating fewer flights in each bank. “But of course, Covid has not gone away,” Heilbron said. Competition in the region is heating up, however, as carriers scramble to tap into demand to vacation hotspots in South America. “There’s quite a bit of action … especially from new entrants, or not new entrants but new entrants to the region,” Helibron said. <br/>