Today, the Panamanian carrier Copa Airlines announced it had a US$39.9 million net profit for the full-year 2021. The airline benefited from several special items, including the return of leased aircraft and passenger revenue adjustments. If it weren’t for these items, Copa would have only had a profit of US$2.7 million last year.

Copa Airlines’ results in 2021

Last year, Copa Airlines reported an operating profit of US$145.7 million, as it carried 6.1 million passengers. The Panamanian flag carrier had 41.4% fewer passengers than in 2019, prior to the COVID-19 pandemic. Copa Airlines had a rough time bouncing back from the crisis because of its, essentially, 100% international map route (except for a unique domestic route between Panama City and David).

Nonetheless, Copa Airlines closed 2021 operating with a capacity of 83.1% compared to its pre-pandemic levels, which is very good, taking into account all the surrounding circumstances.

In 2021, Copa Airlines sold its remaining Embraer fleet. The aircraft went to the Australian operator Alliance Airlines. Additionally, Copa accelerated the deliveries of new Boeing 737 MAX aircraft in the final quarter.

Pedro Heilbron, Copa's CEO, explained,

“During the (third) quarter, we agreed with Boeing to accelerate the delivery of 12 737 MAX 9 that was originally intended to be delivered starting in 2025.”

Copa ended the year with a consolidated fleet of 91 aircraft. It is composed of 68 Boeing 737-800s, 14 Boeing 737 MAX 9s, and nine Boeing 737-700s. Before the pandemic, it had a fleet of 102 aircraft.

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Net profits and net losses

In 2021, Copa Airlines reported a net profit of US$39.9 million. Nonetheless, the airline had some special items, including a reversal of US$39.2 million in the company’s provision, related to the return of leased aircraft; there was also a US$22.8 million unrealized mark-to-market loss related to convertible notes and a passenger revenue adjustment of US$20.8 million corresponding to unredeemed coupons from 2019 and 2020 sales. If it weren’t for these special items, Copa Airlines would have reported a net profit of US$2.7 million.

Copa Airlines ended the year with US$1.5 billion in available liquidity, while its total debt was US$1.6 billion.

Looking ahead into 2022

Copa Airlines is not very optimistic about 2022’s first quarter. The airline expects a heavy hit due to the Omicron variant of the COVID-19 pandemic.

Despite Copa’s positive financial results in last year’s final quarter, the first quarter of 2022 has been challenging given the recent surge in COVID-19 cases in the Americas, said the airline in a statement. These cases have been mainly driven by the Omicron variant.

Due to the Omicron impact on the number of available crews, Copa Airlines reduced its planned capacity for the first quarter by 4%. Moreover, it had to cancel approximately 1000 flights in January.

Copa also expects a lower load factor in the quarter but believes the impact of Omicron will be temporary. The recovery of international air travel demand should resume later in the first quarter.

For the remainder of the year, Copa Airlines expects to have a capacity of around 93% of its pre-pandemic levels.

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