Copa Airlines suffers from a falloff in Brazilian demand, forcing a capacity reduction in 2H2015

One of the world' leading and most successful niche hub airlines, Panama’s Copa Airlines, is suffering the cost of declining South American market economies as air travellers keep their hands in their pockets. After battling tough conditions in Venezuela during 2014, deteriorating demand in the Brazilian market is creating special challenges for Copa Airlines in 2015. The rapid devaluation of the Brazilian Real has weakened demand, forcing Copa to cut capacity to Brazil during 2H2015.

Brazil’s tough economic conditions have triggered downward revisions by Copa to its operating margin and unit revenues in 2015 as it works to weather the shaky economies in South America, which represent nearly 35% of the company’s available seat miles.

Even with the latest revisions, Copa’s financial projections remain strong compared to many of its North American and South American peers. Its balance sheet also remains solid, which gives the airline some leverage as it navigates tough conditions in Brazil.

This CAPA Premium Analysis article is 1,263 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com