Copa, which has been in hibernation for the second quarter, has posted a net loss of US$386.0 million or (US$9.08) per share. Excluding special items, the company would have reported a net loss of US$114.6 million. Those special items include a US$186.8 million non-cash impairment charge on the 737-700 fleet as a result of the company´s announcement to sell those aircraft, a US$50.0 million loss expected on assets held for sale (Embraer aircraft, spare engines, spare parts and a simulator), a US$22.2 million unrealised loss on the mark-to-market of the convertible notes, and a US$12.3 million reversal for unredeemed tickets revenue provisions recorded in the first quarter, given the uncertainty of future passenger behaviour due to the Covid-19 situation.
Cash burn, defined as the cash disbursements less proceeds excluding extraordinary financing activities, averaged US$77 million per month during the quarter.
In April, the company raised US$343 million in cash through a senior convertible note offering. Cash, short-term and long-term investments totalled US$1.14 billion at the end of the quarter.
Copa entered into new committed, unsecured credit facilities of an additional US$150 million (currently undrawn) and closed the quarter with US$1.29bn of available liquidity. The company repaid US$95 million in short-term lines of credit, closing the quarter with a total debt of US$1.3 billion.
In July, Copa closed a US$105 million secured revolving credit facility, increasing its unused committed credit facilities to US$255 million. On July 31, Copa signed a US$79.1 million contract for the sale of its remaining 14 E190s, six spare engines and spare parts, and expects to deliver these assets over the next 12 months.
The Panamanian government has extended air travel restrictions until August 21st, 2020. Copa has now scheduled the restart of its regular commercial flights for September 4, 2020.