Recovery in the airline sector will be slow and the industry is projected to return to pre-Covid-19 levels in late 2021 or mid-2022. Under this scenario and with the estimate that its income will fall by $ 2 billion, the board of directors of Copa Holdings approved to postpone the payment of dividends for the next three quarters.
For the period January-March 2020, the company’s board of directors gave its positive vote for the payment of 80 hundredths for each share.
Preliminary data for the first quarter indicates that the company’s revenues will register an 11.4% decrease to $ 595.5 million, after Copa Airlines suspended its operations on March 22, after the closure of the airspace ordered by the Panamanian authorities for the commercial aviation.
Analysts are awaiting the final results to be presented by Copa Holdings in early May, as the data will set the course for the company’s action.
In the past two weeks, the price of the company’s securities has floated above $ 40 and the daily exchange has exceeded 830,000 shares, demonstrating the appetite that exists for the company’s securities.
The consulting firm Zacks maintains the recommendation to “retain” the shares of Copa Holdings, in the expectation that there is moderate optimism for the quarterly results. Preliminary data indicates that the airline group would obtain an operating profit of $ 98.79 million.
In April, the company obtained financing of more than $ 645 million to face the effects of the respiratory pandemic caused by the coronavirus, which produces Covid-19.
The company, which maintains its fleet of 102 aircraft parked at Tocumen International Airport, obtained $ 350 million this week through an issue of bonds (promissory notes) at an annual rate of 4.50% maturing in 2025.
The issue was made under the convertible scheme, that is, the holders can decide whether to redeem the bonds in cash or choose shares in the aeronautical group.
The company has reported that its “continued access to liquidity sources depends on multiple factors, including global economic conditions, government regulation, the condition of global financial markets, the availability of sufficient amounts of financing, our operating performance and our ratings. credit ”.
He adds that “there is no guarantee that these additional sources of financing are available on commercially reasonable terms.”
Copa Airlines is negotiating with 5 unions on the new working conditions that it would implement once it resumes operations from June 1, as long as the region’s governments do not extend the prohibitions on commercial aviation.
The company, in some cases, proposes a reduction of up to 50% of the monthly hours of work, since the demand for international flights is expected to be low due to the fear of people being confined to an airplane.