Copa Airlines ups 2019 guidance, despite 737 MAX grounding

Panama's Copa Holdings">Copa Holdings is one of many Boeing 737 MAX operators worldwide navigating the grounding of the aircraft, and has stated that it assumes the aircraft will not resume service until mid Dec-2019 at the earliest.

Similarly to other MAX operators, Copa is battling cost and revenue headwinds due to the grounding after being forced to deploy less efficient aircraft on routes previously operated by the MAX. The company is joining a chorus of operators outlining the costs and revenue challenges that they continue to face as the aircraft type remains inoperable. There is little doubt that the airline, and others, are preparing to have frank conversations with the airframer about proper compensation for the unexpected operational disruptions.

Copa's operating environment remains relatively stable, and despite the challenges that the airline continues to face as its MAX jets remain grounded and deliveries of additional aircraft remain uncertain, the company has upped it 2019 margin guidance.