UPDATE: Panama's Copa Airlines Shares Down On Swine Flu
28 April 2009 - 3:34AM
Dow Jones News
New York Stock Exchange-listed shares of Panama-based airline
Copa Holding SA (CPA) fell 8.2% Monday on nervousness about the
spreading of swine flu from Mexico.
The stock was recently down $2.64 to $29.70.
Shares of publicly traded airlines around the world fell Monday,
and Copa is in the middle of the storm as it operates in the
Central American, South American and the Caribbean markets from its
hub in Panama.
The price decline isn't specific to Copa but is a global
phenomenon, said Joseph Putaturo, the company's director for
investor relations.
"Copa will lose a lot of passengers; Panama is the hub of Latin
America," said Rupert Stebbings, a market analyst at Colombia's
largest brokerage Interbolsa SA.
Copa and its subsidiaries offer about 125 daily flights linking
40 destinations in 21 countries in the Americas from its Panama
City hub.
All airlines flying to Mexico City are in risk, said Stephen
Trent, a New York-based market analyst with Citigroup. "In the case
of Copa, I wouldn't say the risk is extreme," he added.
"Mexico-based airlines and Mexican airport operators are most at
risk," he added.
Copa gets only about 5% of its passenger revenue from Mexico, he
added. The company focuses on not-so-massive destinations such as
Central American and Caribbean cities.
A group of Panamanian investors is Copa's main shareholder. U.S.
airlines Continental Airlines Inc. (CAL) used to hold a minority
stake in Copa but sold it in the past few years.
-By Inti Landauro, Dow Jones Newswires; 57-1-610 70 44 Ext.
1131; colombia@dowjones.com