Copa Airlines is seeking “full and fair” compensation from Boeing for the three-week grounding of the 737 Max 9 in January, executives say.
The Panama City-based carrier cancelled 1,788 flights, or about 20% of its daily schedule, from 6-29 January following the US Federal Aviation Administration’s grounding of Max 9 aircraft with mid-cabin door plugs. Copa grounded 21 of its 29 Max 9s, all of which are flying again.
“Boeing has been and continues to be an important partner for Copa and we remain committed to our relationship in the long term,” says Copa chief executive Pedro Heilbron during the airline’s fourth-quarter earnings call on 8 February. “Nonetheless, we hold them accountable for the grounding and its impact on our passengers and our financials for which we expect to be fairly compensated.”
Copa operates an all-Boeing 737 fleet that also includes 737-700s and -800s.
Max 9-related flight cancellations forced Copa to cut its capacity plans in January, one of the busiest months on its calendar. That hit the airline’s total revenue and revenue per available seat mile (RASM) during the peak period.
Speaking during the call, Copa chief financial officer Jose Montero does not specify the financial impact of the grounding. However, he attributes much of a forecast 6.9% year-over-year drop in first-quarter RASM to the situation.
Fallout from the Max 9 grounding will also hit Copa’s new deliveries from Boeing this year. The carrier anticipates taking 12 new 737 Max — eight Max 8s and three Max 9s — which is down from its previous forecast of 15 aircraft.
Copa expects to grow it available seat miles by roughly 10% this year, down from its initial guide of up 12-14%, says Montero. That reduction is the result of January flight cancellations and delayed aircraft deliveries.
“It’s going to be a difficult year in terms of additional capacity or having planes available,” Heilbron says.
Copa plans to end 2024 with 117 aircraft, or 11 more than the 106 it operated at the end of December.
