Copa Holdings, S.A. (NYSE: CPA), has reported a (USD 386)m net loss or (USD 9.08) per share in the second quarter 2020, the company said.
Excluding special items, the company would have reported a net loss of USD (114.6 million), or (USD 2.70) per share.
Due to air travel restrictions implemented in response to the Covid-19 outbreak, the Company did not provide scheduled commercial service during the second quarter, and only operated a small number of charter and humanitarian flights, representing less than 1% of the company´s capacity in 2Q19.
Special items for the quarter include a USD 186.8 million non-cash impairment charge on the B737-700 fleet as a result of the company´s announcement to sell those aircraft, a USD 50.0 million loss expected on assets held for sale (Embraer aircraft, spare engines, spare parts and a simulator), a USD 22.2 million unrealized loss on the mark-to-market of the convertible notes, and a USD 12.3 million reversal for unredeemed tickets revenue provisions recorded in the first quarter, given the uncertainty of future passenger behavior due to the Covid-19 situation.
Copa Holdings reported an operating loss of USD (357.9 million). Excluding special items, the Company would have reported an operating loss of USD (108.7 million).
Cash burn, defined as the cash disbursements less proceeds excluding extraordinary financing activities, averaged USD 77 million per month during the quarter.
In April, the Company raised USD 343 million in cash through a senior convertible note offering. Cash, short-term and long-term investments totaled USD 1.14 billion at the end of the quarter.
The company entered into new committed, unsecured credit facilities of an additional USD150 million (currently undrawn) and closed the quarter with USD 1.29 billion of available liquidity.
The company repaid USD 95 million in short-term lines of credit, closing the quarter with a total debt of USD1.3 billion.
Copa Holdings ended the quarter with a consolidated fleet of 102 aircraft — 6 Boeing 737MAX9s, 68 Boeing 737-800s, 14 Boeing 737-700s, and 14 Embraer-190s.
Copa Holdings is a Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to 80 destinations in 33 countries in North, Central and South America and the Caribbean.