Fallout from frozen Venezuela funds dampens Copa Airlines’ favourable 2Q2014 performance

Effects from the complexities associated with the devaluing of Venezuela's currency continue to plague Copa Airlines as the company works to mitigate the challenges of repatriating funds tied up by the Venezuelan government.

Copa has decided to increase its capacity cuts to Venezuela, which will pressure yields and unit revenues year-on-year in 2H2014 due to a strong performance the year prior driven in part by high-yielding traffic from Venezuela.

The airline's adjustments to minimise the impact of frozen funds in Venezuela has also resulted in downward revisions to its CY2014 operating margin, all of which is overshadowing a strong 2Q2014 performance.