Skift Take
U.S. airlines are flying all they can and selling cheap fares to fill planes. Copa was required by its government to do the opposite. It effectively stopped flying for months. It lost a lot of money in the second quarter, but perhaps not as much as you might think.
For five months, Copa Airlines barely flew, operating a smattering of humanitarian and cargo flights. Panama's national government demanded it, barring any airline from flying international flights.
Copa, which has just one domestic route, is back in business, but only in a small way. Thanks to Panama Government Executive Decree No. 300, Copa is launching limited flights to New York, San Jose, Costa Rica, Santo Domingo, Dominican Republic, and Quito and Guayaquil in Ecuador. Assuming it goes OK, the government should allow more flights next month.
Only Panamanian citizens will be able to get off in Panama City, but passengers can transfer at the airline's hub at Tocumen International Airport to make connections between North and South America. (At least among the countries that are open; several South American countries have not opened their borders to all travelers.)
U.S. airlines have argued they must fly as much as the market allows, saying they need cash generated from fare sales to keep their businesses running. But what about Copa? If the airline has effectively not flown for five months, shouldn't it be in dire financial straits?
Not exactly. Despite flying only 86 cargo and humanitarian operations in the second q
