Copa Airlines and Boeing confirmed (14-Dec-2009) an order for two more B737-800s, bringing to 15 the number of B737-800s the airline has ordered this year. The order is valued at USD152 million at list prices. Including this order, the airline has 29 B737NGs remaining to be delivered. In Jul-2009, Copa placed an order for 13 aircraft. [more]
Copa Airlines announces order for two additional B737-800s
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Global commercial aircraft deliveries fell in 2016 as Boeing again outsold Airbus; 2017 to be a peak
The global commercial aircraft fleet grew by 4% in 2016 and the year ended with an order backlog of more than nine years of production. Among the regions, North America still has the biggest and oldest fleet, but the lowest ratio of orders to aircraft in service. By contrast, Middle East has the fewest in service, but the highest ratio of orders to current fleet numbers.
This report gives an overview of the number of commercial aircraft deliveries in 2016 and the outlook into 2017 and beyond. It also looks at numbers in service and on order by region. It is based on preliminary numbers from the CAPA Fleet Database and guidance on 2016 deliveries from Airbus and Boeing, who have yet to announce final numbers.
The data indicate that total worldwide deliveries fell in 2016, the first such decline for six years, as a result of delays to new aircraft programmes. Boeing delivered more aircraft than Airbus for the fifth straight year, but its deliveries fell short of its 2015 level, while Airbus increased its numbers year-on-year. Total deliveries will likely rise again in 2017, but this may prove to be a peak year.
Copa Airlines: returning to positive unit revenue as its crucial LCC transition in Colombia begins
Cautious optimism exhibited by Copa Airlines at the end of 2Q2016 that challenging conditions in Latin America were showing some signs of improvement has turned into a full-blown declaration that the worst is over in the region. Although yields remain depressed, Copa turned a corner in its passenger unit revenue performance in 3Q2016, posting positive results driven by healthy load factors. Copa continues to experience strengthening demand, and believes it is only a matter of time before yields turn a corner.
The changing conditions have resulted in Copa issuing a slight upward revision to its margin guidance for 2016, and the airline has outlined a framework for restoring its operating margins to the high teens during the next couple of years. Copa’s preliminary growth project for 2017 is an ASM increase of approximately 5% driven largely by aircraft ultilisation.
As optimism builds that Latin America is starting to turn an economic corner, Copa is undertaking a strategic business move by shifting its business model in Colombia to a low cost operation. The new entity Wingo is debuting in Dec-2016; Copa holds the view that the shift in business model is low-risk, and highlights the fact that Wingo does not carry the same challenges as low cost subsidiaries created by other airlines.