Avianca & Copa: hubs and permanent cost cuts are key to recovery

Latin American operators Avianca and Copa have taken different approaches to managing their businesses during the COVID-19 crisis. Avianca has been forced into Chapter 11, and Copa has used its sound financial foundation to build up a solid level of liquidity.

But both airlines are adopting a renewed focus on costs that is driven by a belief that airline cost structures need to change permanently in a post-pandemic world. Those operators stress that a leaner cost structure will be more imperative than ever whenever the industry approaches a sense of normality.

Avianca and Copa also believe that their respective hubs in Bogotá and Panama City will serve as a competitive advantage for each airline, and competition between the two airports to become major connecting points in Latin America could intensify.