Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Trading Symbol | CPA |
Entity Registrant Name | COPA HOLDINGS, S.A. |
Entity Central Index Key | 0001345105 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Title of 12(b) Security | Class A Common Stock, without par value |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Address, Country | PA |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Accounting Standard | International Financial Reporting Standards |
Class A common stock [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 31,421,265 |
Class B common stock [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,938,125 |
Consolidated statement of finan
Consolidated statement of financial position - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 119,065 | $ 158,732 |
Investments | 770,816 | 692,403 |
Accounts receivable | 64,635 | 129,781 |
Expendable parts and supplies | 74,319 | 69,100 |
Prepaid expenses | 30,473 | 49,034 |
Prepaid income tax | 16,716 | 1,181 |
Other currents assets | 7,805 | 14,206 |
Total current assets excluding assets held for sale | 1,083,829 | 1,114,437 |
Asset held for sale | 135,542 | 120,006 |
Total current assets | 1,219,371 | 1,234,443 |
Non - current assets | ||
Investments | 119,617 | 134,347 |
Accounts receivable | 1,054 | 2,139 |
Prepaid expenses | 6,066 | 17,743 |
Property and equipment | 2,147,486 | 2,532,402 |
Right of use assets | 214,279 | 290,843 |
Net employee defined benefit assets | 249 | |
Intangible assets | 95,568 | 108,116 |
Deferred tax assets | 35,595 | 19,215 |
Other non - current assets | 14,348 | 17,881 |
Total non - current assets | 2,634,013 | 3,122,935 |
Total assets | 3,853,384 | 4,357,378 |
Current liabilities | ||
Loans and borrowings | 127,946 | 122,582 |
Current portion of lease liabilities | 83,605 | 97,732 |
Trade, other payables and financial liabilities | 66,683 | 133,502 |
Air traffic liability | 470,695 | 497,374 |
Frequent flyer deferred revenue | 16,041 | 35,120 |
Taxes payable | 13,400 | 46,267 |
Accrued expenses payable | 33,995 | 55,373 |
Income tax payable | 1,023 | 9,683 |
Total current liabilities | 813,388 | 997,633 |
Non-current liabilities | ||
Loans and borrowings long-term | 1,035,954 | 938,183 |
Lease liabilities | 146,905 | 206,832 |
Frequent flyer deferred revenue | 75,172 | 45,206 |
Net employee defined benefit liabilities | 14,332 | |
Derivative financial instruments | 245,560 | |
Other long - term liabilities | 216,325 | 191,221 |
Deferred tax liabilities | 22,190 | 43,397 |
Total non - current liabilities | 1,756,438 | 1,424,839 |
Total liabilities | 2,569,826 | 2,422,472 |
Equity | ||
Additional paid in capital | 91,341 | 86,135 |
Treasury stock | (136,388) | (136,388) |
Retained earnings | 1,324,022 | 1,965,179 |
Accumulated other comprehensive loss | (24,082) | (8,628) |
Total equity | 1,283,558 | 1,934,906 |
Commitments and contingencies | ||
Total liabilities and equity | 3,853,384 | 4,357,378 |
Class A common stock [member] | ||
Equity | ||
Common stock | 21,199 | 21,142 |
Total equity | 21,199 | 21,142 |
Class B common stock [member] | ||
Equity | ||
Common stock | 7,466 | 7,466 |
Total equity | $ 7,466 | $ 7,466 |
Consolidated statement of fin_2
Consolidated statement of financial position (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class A common stock [member] | ||
Statement [LineItems] | ||
Common stock, shares issued | 33,861,872 | 33,835,747 |
Common stock, shares outstanding | 31,421,265 | 31,337,856 |
Class B common stock [member] | ||
Statement [LineItems] | ||
Common stock, shares issued | 10,938,125 | 10,938,125 |
Common stock, shares outstanding | 10,938,125 | 10,938,125 |
Common stock, no par value | $ 0 | $ 0 |
Consolidated statement of profi
Consolidated statement of profit or loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenue | |||
Passenger revenue | $ 760,594 | $ 2,612,605 | $ 2,587,389 |
Cargo and mail revenue | 21,002 | 62,460 | 62,483 |
Other operating revenue | 19,407 | 32,343 | 27,755 |
Total operating revenue | 801,003 | 2,707,408 | 2,677,627 |
Operating expenses | |||
Fuel | 166,723 | 696,249 | 765,781 |
Wages, salaries, benefits and other employees' expenses | 256,327 | 450,439 | 443,287 |
Passenger servicing | 27,566 | 102,103 | 104,346 |
Airport facilities and handling charges | 59,536 | 181,959 | 186,422 |
Sales and distribution | 70,395 | 210,623 | 210,158 |
Maintenance, materials and repairs | 76,948 | 127,562 | 110,710 |
Depreciation and amortization | 259,336 | 282,080 | 276,563 |
Impairment of non financial assets | 243,097 | 89,344 | 188,624 |
Flight operations | 30,028 | 102,806 | 108,437 |
Other operating and administrative expenses | 71,977 | 118,090 | 123,737 |
Total operating expenses | 1,261,933 | 2,361,255 | 2,518,065 |
Operating (loss) profit | (460,930) | 346,153 | 159,562 |
Non-operating (expense) income | |||
Finance cost | (73,045) | (57,432) | (50,825) |
Finance income | 19,963 | 24,405 | 23,628 |
Loss on foreign currency fluctuations | (8,459) | (15,408) | (9,398) |
Net change in fair value of derivatives | (107,139) | 0 | 0 |
Other non-operating expense | (1,169) | (4,279) | (239) |
Total non-operating (expense) income | (169,849) | (52,714) | (36,834) |
(Loss) Profit before taxes | (630,779) | 293,439 | 122,728 |
Income tax expense | 23,717 | (46,437) | (34,530) |
Net (loss) profit | $ (607,062) | $ 247,002 | $ 88,198 |
(Loss) Earnings per share | |||
Basic and diluted | $ (14.28) | $ 5.81 | $ 2.08 |
Consolidated statement of compr
Consolidated statement of comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Net (loss) profit | $ (607,062) | $ 247,002 | $ 88,198 |
Other comprehensive loss not to be reclassified to profit or loss in subsequent periods - | |||
Remeasurement of actuarial loss, net of amortization | (15,454) | (4,401) | (339) |
Total comprehensive (loss) income for the year | $ (622,516) | $ 242,601 | $ 87,859 |
Consolidated statement of chang
Consolidated statement of changes in equity - USD ($) $ in Thousands | Total | Additional paid in capital [member] | Treasury stock [member] | Retained earnings [member] | Accumulated other comprehensive income (loss) [member] | Class A common stock [member] | Class B common stock [member] |
Beginning balance (Previously stated [member]) at Dec. 31, 2017 | $ 1,850,938 | $ 72,945 | $ (136,388) | $ 1,889,765 | $ (3,888) | $ 21,038 | $ 7,466 |
Adjustment on initial application of IFRS 9 | (1,744) | (1,744) | |||||
Beginning balance, shares (Previously stated [member]) at Dec. 31, 2017 | 31,185,641 | 10,938,125 | |||||
Net profit (loss) | 88,198 | 88,198 | |||||
Other comprehensive loss | (339) | (339) | |||||
Issuance of stock for employee awards | (49) | $ 49 | |||||
Issuance of stock for employee awards, shares | 72,045 | ||||||
Share-based compensation expense | 7,145 | 7,145 | |||||
Dividends paid | (147,604) | (147,604) | |||||
Ending balance at Dec. 31, 2018 | 1,796,594 | 80,041 | (136,388) | 1,828,615 | (4,227) | $ 21,087 | $ 7,466 |
Ending balance, shares at Dec. 31, 2018 | 31,257,686 | 10,938,125 | |||||
Net profit (loss) | 247,002 | 247,002 | |||||
Other comprehensive loss | (4,401) | (4,401) | |||||
Issuance of stock for employee awards | (55) | $ 55 | |||||
Issuance of stock for employee awards, shares | 80,170 | ||||||
Share-based compensation expense | 6,149 | 6,149 | |||||
Dividends paid | (110,438) | (110,438) | |||||
Ending balance at Dec. 31, 2019 | 1,934,906 | 86,135 | (136,388) | 1,965,179 | (8,628) | $ 21,142 | $ 7,466 |
Ending balance, shares at Dec. 31, 2019 | 31,337,856 | 10,938,125 | |||||
Net profit (loss) | (607,062) | (607,062) | |||||
Other comprehensive loss | (15,454) | (15,454) | |||||
Issuance of stock for employee awards | (57) | $ 57 | |||||
Issuance of stock for employee awards, shares | 83,409 | ||||||
Share-based compensation expense | 5,263 | 5,263 | |||||
Dividends paid | (33,990) | (33,990) | |||||
Other | (105) | (105) | |||||
Ending balance at Dec. 31, 2020 | $ 1,283,558 | $ 91,341 | $ (136,388) | $ 1,324,022 | $ (24,082) | $ 21,199 | $ 7,466 |
Ending balance, shares at Dec. 31, 2020 | 31,421,265 | 10,938,125 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net (loss) profit | $ (607,062) | $ 247,002 | $ 88,198 |
Adjustments for: | |||
Income tax expense | (23,717) | 46,437 | 34,530 |
Finance cost | 73,045 | 57,432 | 50,825 |
Finance income | (19,963) | (24,405) | (23,628) |
Depreciation and amortization | 259,336 | 282,080 | 276,563 |
Impairment of non finacial assets | 243,097 | 89,344 | 188,624 |
Disposal of non financial assets | 4,635 | 3,850 | 3,746 |
Impairment of financial assets | 1,570 | 483 | 1,409 |
Allowance for obsolescence of expendable parts and supplies | 47 | 164 | 159 |
Share-based compensation expense | 5,263 | 6,149 | 7,145 |
Net change in fair value of derivatives | 107,139 | 0 | 0 |
Net foreign exchange differences | 44,328 | 45,086 | 42,536 |
Change in: | |||
Accounts receivable | 71,625 | (17,054) | (3,150) |
Accounts receivable from related parties | (1,282) | 76 | 95 |
Other current assets | 11,148 | 15,653 | (50,241) |
Other assets | 8,895 | 20,678 | (5,669) |
Accounts payable | (55,718) | (2,984) | 8,270 |
Accounts payable from related parties | (11,116) | (587) | 2,584 |
Air traffic liability | (26,679) | 25,698 | (5,492) |
Frequent flyer deferred revenue | 10,887 | 12,512 | 17,502 |
Other liability | (36,975) | 48,400 | (24,515) |
Cash from operating activities | 58,503 | 856,014 | 609,491 |
Income tax paid | (37,631) | (42,999) | (38,698) |
Interest paid | (41,938) | (52,234) | (49,317) |
Interest received | 26,343 | 24,102 | 21,537 |
Net cash from operating activities | 5,277 | 784,883 | 543,013 |
Investing activities | |||
Acquisition of investments | (904,570) | (711,045) | (711,840) |
Proceeds from redemption of investments | 840,627 | 589,602 | 775,504 |
Advance payments on aircraft purchase contracts and other | 0 | (75,428) | (216,732) |
Reimbursement of advance payments on aircraft purchase contracts | 0 | 48,262 | 152,651 |
Acquisition of property and equipment | (44,065) | (62,397) | (118,997) |
Proceeds from sale of property and equipment | 30,666 | 43,603 | 0 |
Acquisition of intangible assets | (16,419) | (25,465) | (30,182) |
Net cash used in investing activities | (93,761) | (192,868) | (149,596) |
Financing activities | |||
Proceeds from issue of convertible notes, net of costs | 342,898 | 0 | 0 |
Proceeds from new borrowings | 145,000 | 95,000 | 225,000 |
Payments on loans and borrowings | (267,086) | (426,827) | (401,333) |
Payment of lease liability | (93,213) | (103,069) | (106,254) |
Dividends paid | (33,990) | (110,438) | (147,604) |
Net cash from (used) in financing activities | 93,609 | (545,334) | (430,191) |
Net increase (decrease) in cash and cash equivalents | 5,125 | 46,681 | (36,774) |
Cash and cash equivalent at Beginning value | 158,732 | 156,158 | 238,792 |
Effect of exchange rate change on cash | (44,792) | (44,107) | (45,860) |
Cash and cash equivalent at Ending balance | $ 119,065 | $ 158,732 | $ 156,158 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Corporate information | 1. Corporate information Copa Holdings, S. A. (“the Company”) was incorporated according to the laws of the Republic of Panama on May 6, 1988 with an indefinite duration. The Company is a public company listed in the New York Stock Exchange (NYSE) under the symbol CPA since December 14, 2005. The address of its registered office is Boulevard Costa del Este, Avenida Principal y Avenida de la Rotonda, Urbanización Costa del Este, Complejo Business Park, Torre Norte, Parque Lefevre, Panama City, Republic of Panama. These consolidated financial statements comprise the Company and its subsidiaries: Compañía Panameña de Aviación, S. A. (“Copa Airlines”), Oval Financial Leasing, Ltd. (“OVAL”), AeroRepública, S. A. (“Copa Colombia”): • Copa Airlines: the Company’s core operation is incorporated according to the laws of the Republic of Panama and provides international air transportation for passengers, cargo and mail, operating from its Panama City hub in the Republic of Panama. • Copa Colombia: is a Colombian air carrier, incorporated according to the laws of the Republic of Colombia which provides domestic and international air transportation for passengers, cargo, and mail. Copa Colombia operates “Wingo” a brand under a low-cost • OVAL: incorporated according to the laws of the British Virgin Islands, it controls the special-purpose entities that have a beneficial interest in the majority of the Company’s fleet, which is leased to either Copa Airlines or Copa Colombia. The Company has a broad commercial alliance with United Airlines Holdings, Inc. (“United”), which was renewed during May 2016, for another five years. This Alliance includes an extensive and expanding code-sharing and technology cooperation. In addition, the Company is part of Star Alliance, the leading global airline network since June 2012. Copa Airlines has the loyalty program “ConnectMiles”, designed to strengthen the relationship with its frequent flyers and provide exclusive attention. ConnectMiles members are eligible to earn and redeem miles to any of Star Alliance’s 1,300 (unaudited) destinations in 195 countries within 26 airlines members (unaudited). Situation of Covid-19 The novel strain of coronavirus (“Covid-19”) In an effort to slow-down the Covid-19 After the lifting of significant travel restrictions in October 2020, the Company began rebuilding its network. As of December 31, 2020, the Company offers approximately 104 daily scheduled flights to 54 destinations in 25 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub. Additionally, the Company provides passengers with access to flights to more than 200 international destinations through codeshare agreements. The Company has taken aggressive actions, focusing on reducing fixed costs, further bolstering its liquidity position, and adjusting its size, for what it believes will be a weakened demand environment in the immediate future. • Capacity reduction In terms of capacity, and as a result of the uncertainty regarding the Covid-19 • Fleet To better align the fleet with the lower passenger demand, the Company has decided to sell its Boeing 737-700 737-700 In addition, during July, the Company signed a contract for the sale of its 14 Embraer-190 These decisions will bring cost savings and efficiencies due to operating a single aircraft type. As of December 31, 2020, the Company has a fleet (excluding aircraft available for sale) of 77 aircraft, and consisting of 68 Boeing 737-800 737-700 From March 2019 to November 18, 2020, the Federal Aviation Administration (FAA) grounded all U.S. registered Boeing 737 MAX aircraft an action that was followed by most of the world’s aviation regulators, including Panamanian aviation regulators. As a consequence, during February 2021, the Company has reached an agreement with Boeing regarding compensation related to the damages that it has suffered during this period. Terms remain confidential (see note 29). • Liquidity position Following the suspension of its operations, the Company implemented certain initiatives to preserve cash and improve the liquidity position, including: • In April 2020, the Company raised US$342.9 million in cash through a senior convertible note offering (see note 18). • The Company also has committed unsecured credit facilities of $200.0 million, currently undrawn. In addition, the Company closed a secured revolving credit facility for an initial aggregate amount of $105.0 million. Including this facility, the Company has $305.0 million in unutilized committed credit facilities as of December 31, 2020 (see note 27). • Monthly cash consumption was reduced to approximately $20.0 million during the second half of 2020. This cash consumption includes Company’s net operational cash flows (including its expectation for the cash reimbursement of passenger tickets), a revised capital expenditures plan and payments of financial obligations, reduction of labor-related expenses, as well as the reduction of other costs as a result of contract renegotiations with suppliers. • On December 16, 2020 the Company received the final commitment for a guaranteed loan from the Export-Import Bank of the United States (the “EXIM Bank”) to finance seven Boeing 737 MAX aircraft for a total amount up to $327.9 million and expects to finalize this transaction during the first quarter of 2021. • The Company may also take additional actions to improve its financial position, including measures to improve liquidity, such as the issuance of additional unsecured and secured debt securities, equity securities and equity-linked securities, the sale of assets and/or the entry into additional bilateral and syndicated secured and/or unsecured credit facilities. The Company’s continued access to sources of liquidity depends on multiple factors, including global economic conditions, government regulation, the condition of global financial markets, the availability of sufficient amounts of financing, its operating performance and its credit ratings. As of December 31, 2020, the Company has approximately $1.01 billion in cash, cash equivalents, short-term and long-term investments (see notes 8 and 9). Based on the liquidity analysis for the next 12 months, recovery plan and measures taken since the inception of the Covid-19 The consolidated financial statements for the year ended December 31, 2020 have been authorized for issuance by the Company’s Chief Executive Officer and Chief Financial Officer on April 2 3 |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Basis of preparation | 2. Basis of preparation Statement of compliance The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). As used in these notes to the consolidated financial statements, the terms “the Company”, “we”, “us”, “our”, and similar terms refer to Copa Holdings, S. A. and, unless the context indicates otherwise, its consolidated subsidiaries. Basis of measurement The consolidated financial statements have been prepared on a historical cost basis, except for the following: • certain financial assets, certain classes of property, plant and equipment, investment property and derivative financial instruments – measured at fair value • assets held for sale – measured at fair value less cost of disposal, and • defined benefit pension plans – plan assets measured at fair value. Functional and presentation currency These consolidated financial statements are presented in United States dollars (U.S. dollars “$”), which is the Company’s functional currency and the legal tender of the Republic of Panama. The Republic of Panama does not issue its own paper currency; instead, the U.S. dollar is used as legal currency. All values are rounded to the nearest thousand in U.S. dollars ($000), except when otherwise indicated. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Significant accounting policies | 3. Significant accounting policies (a) Basis of consolidation These consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Control is achieved when the Company is exposed to, or has right to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls the investee, when it has: • power over the investee, • exposure, or rights to, variable returns from its involvement with the investee, and • the ability to use its power over the investee to affect its returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany balances, transactions, and dividends are eliminated in full. The following are the significant subsidiaries included in these financial statements: Name Country of Incorporation Ownership 2020 2019 Copa Airlines Panama 99.9 % 99.9 % Copa Colombia Colombia 99.9 % 99.9 % Oval British Virgin Islands 100 % 100 % (b) Current versus non-current The Company presents assets and liabilities in the statement of financial position based on current/non-current An asset is current when it is: • expected to be realized or intended to be sold or consumed in the normal operating cycle • expected to be realized within twelve months after the reporting period, or • cash or cash equivalent, unless restricted. All other assets are classified as non-current. A liability is current when: • it is expected to be settled in the normal operating cycle • it is due to be settled within twelve months after the reporting period, or • there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current (c) Foreign currencies The Company’s consolidated financial statements are presented in U.S. dollars, which is the Company’s functional currency. The Company determines the functional currency for each entity, and the items included in the financial statements of each entity are measured using that functional currency. Transactions and balances Transactions in foreign currencies are initially recorded by the Company at the respective functional currency spot rates on the date when the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot exchange rate at the reporting date. Non-monetary Foreign exchange gains and losses are included in the exchange rate difference line in the consolidated statement of profit or loss for the year. (d) Revenue recognition Revenue is recognized when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The consideration received or receivable is measured taking into account contractually defined terms of payment and excluding taxes or duties. The following specific recognition criteria must also be met before revenue is recognized: Passenger revenue Passenger revenue is primarily composed of passenger ticket sales, frequent flyer miles redeemed and ancillaries revenues associated with a passenger’s flight. • Passenger tickets Passenger revenue from tickets is recognized when transportation is provided rather than when a ticket is sold. The amount of passenger ticket sales, not yet recognized as revenue, is reflected under “Air traffic liability” in the consolidated statement of financial position. Refundable and nonrefundable tickets expire after one year from the date of issuance. In addition, revenue is recognized for tickets that are expected not to be used, the Company performs a monthly liability evaluation using its historical experience with refundable and nonrefundable expired tickets and other facts. A year after the sale is made, actual ticket breakage is removed from “Air Traffic liability” and the provision is reversed. Typically, unused tickets expire after one year, and any revenue associated with tickets sold for future travel is recognized within 12 months. In response to Covid-19, The Company sells certain tickets with connecting flights with one or more segments operated by its other airline partners. For segments operated by other airline partners, the Company has determined that it is acting as an agent on behalf of the other airlines as they are responsible for their portion of the contract. The Company, as the agent, reduces its “Air traffic liability” when consideration is remitted to those airlines, and recognizes revenue for the net amount representing commission to be retained by the Company for any segments flown by other airlines. Denied boarding compensation made to customers for voluntarily or involuntarily denied boarding reduces revenue when the voucher is issued to the passenger. • Frequent flyer program The Company’s frequent flyer program objective, is to reward customer loyalty. Members in this program earn miles for travel on Copa Airlines, Star Alliance partners’ airlines and also by purchasing the goods and services of the Company network of non-airline co-branded Passenger revenue includes flights redeemed under our frequent flyer program. When a passenger elects to receive Copa’s frequent flyer miles in connection with a flight, the Company recognizes a portion of the tickets sale as revenue when the air transportation is provided and recognizes a deferred liability (Frequent flyer deferred revenue) for the portion of the ticket sale representing the value of the related miles as a separate performance obligation. To determine the amount of revenue to be deferred, the Company estimates and allocates the fair value of the miles that were essentially sold along with the airfare, based on a weighted average ticket value, which incorporates the expected redemption of miles including factors such as redemption pattern, cabin class and geographic region. A statistical model that estimates the percentages of points that will not be redeemed before expiration is used to estimate breakage. The breakage and the fair value of the miles are reviewed at least annually, and any adjustments are reflected on a prospective basis to passenger revenues. The Company calculates the short and long-term portion of the frequent flyer deferred revenue, using a model that includes estimates based on the members´ redemption rates projected by management due to clients’ behavior. Currently, when a member of another carrier frequent flyer program redeems miles on a Copa Airlines flight, those carriers pay to the Company a per mile rate. The rates paid by them depend on the class of service, the flight length, and the availability of the reward and is included in passenger revenues. • Ancillaries revenues Primarily composed of services performed in conjunction with a passenger’s flight, including administrative fees (such as ticket change fees), baggage fees, and other ticket-related fees. These ancillary fees are part of the travel performance obligation and, as such, are recognized as passenger revenue when the travel occurs. Cargo and mail revenue Cargo and mail revenue is recognized when the Company provides and completes the shipping services as requested by the client and the risks on the merchandise and goods are transferred. Other operating revenue Other operating revenue includes revenue associated with the marketing component of the frequent flyer program. This revenue is comprised of the marketing component of mileage sales to co-branded The Company sells miles to non-airline co-branded The remaining amounts included within other revenue are related to lease income, advertising and vacation-related services. (e) Cash and cash equivalents Cash and cash equivalents in the statement of financial position, comprise cash on hand and in banks, money market accounts, and time deposits with original maturities of three months or less from the date of purchase. The Company evaluates the term and conditions relating to its restricted cash to determine where it should be presented, as current assets in cash and cash equivalents or as non-current For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash net of outstanding bank overdrafts, if any. The Company has elected to present the statement of cash flows using the indirect method. (f) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets The Company’s financial assets include cash and cash equivalents, short and long-term investments and accounts receivable. (i) Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial assets contractual cash flow characteristics and the Company’s business model for managing them. With the exception of accounts receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Accounts receivable that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price. In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest’ (SPPI) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. All financial assets are recognized on the trade date, which is the date on which the Company becomes a party to the contractual provisions of an instrument. (ii) Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: • Financial assets at amortized cost (debt instruments) • Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) • Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) • Financial assets at fair value through profit or loss Financial assets at amortized cost This category is the most relevant to the Company. The Company measures financial assets at amortized cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Company’s financial assets at amortized cost includes the Company’s investments and its receivables. The Company invests in short-term deposits and bonds with original maturities of more than three months but less than one year, and invests in long-term deposits and bonds with maturities greater than one year. These investments are classified as short and long-term investments, respectively, in the accompanying consolidated statement of financial position. Accounts receivable are non-derivative Financial assets at fair value through OCI The Company measures debt instruments at fair value through OCI if both of the following conditions are met: • The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. The Company currently does not have assets classified under this category. Financial assets designated at fair value through OCI Upon initial recognition, the Company may elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading instrument-by-instrument Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit or loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. The Company currently does not have assets classified under this category. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss. The Company currently does not have assets classified under this category. (iii) Derecognition A financial asset is derecognized when: • the rights to receive cash flows from the asset have expired, or • the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement, and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates, if and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. (iv) Impairment of financial assets The Company recognizes an allowance for expected credit losses (ECLs) on financial asset measured at amortized cost. Loss allowance for financial assets are deducted from the gross carrying amount on the assets. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months 12-month Both, lifetime ECLs and 12-month The Company has established a policy to perform an assessment, at the end of each quarterly reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. For accounts receivables the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each quarterly reporting date. The Company has established a provision matrix to measure ECLs. Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to write-off. Loss rates are based on actual credit loss experience over the last 12 months and adjusted for forward-looking factors specific to the debtors and the economic environment over the expected life of the receivables. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. The Company considers that there are no realistic prospects of recovery of the asset if any of the following indicators are present: • the debtor is in a state of permanent disability • the Company has exhausted all legal and/or administrative recourse • where the account exceeds one year without decreases • when there are no documents that establishing the debt Losses arising from impairment are recognized under “Other operating and administrative expenses” in the consolidated statement of profit or loss. Financial liabilities (i) Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables and loans and borrowings including bank overdrafts, and derivative financial instruments. (ii) Subsequent measurement For purposes of subsequent measurement, financial liabilities are classified in two categories: • Financial liabilities at fair value through profit or loss • Financial liabilities at amortized cost (loans and borrowings) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. Financial liabilities at amortized cost (loans and borrowings) Subsequent to initial recognition, all borrowings and loans are measured at amortized cost using the EIR method. Gains and losses are recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included under finance cost in the consolidated statement of profit or loss. (iii) Derecognition Financial liabilities are derecognized when the obligation under the liability is discharged, cancelled, or expire. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statement of profit or loss. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, the Company has a legally enforceable right to set off the recognized amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the ordinary course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. Derivative financial instruments and hedging activities Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair value. Derivatives are carried as financial assets when the fair value results in a right to the Company and as financial liabilities when the fair value results in an obligation. The accounting for changes in value depends on whether the derivative is designated as a hedging instrument, and if so, the classification of the hedge. For hedge accounting purposes, hedges are classified into: • Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment • Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment • Hedges of a net investment in a foreign operation. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements. A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements: • There is ‘an economic relationship’ between the hedged item and the hedging instrument. • The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship. • The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Company actually hedges and the quantity of the hedging instrument that the Company actually uses to hedge that quantity of hedged item. As of December 31, 2020 and 2019, the Company does not have financial instruments designated under hedge accounting. (g) Impairment of non - financial assets The Company assesses at each reporting date whether there is an indication that an asset or its cash-generating unit (CGU) may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s or CGU’s recoverable amount. The recoverable amount is the higher of an asset’s or its CGU’s fair value less costs to sell and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax Impairment losses of continuing operations, including impairment on inventories, are recognized under “Impairment of non-financial For assets, excluding goodwill, an assessment is made at each reporting date to determine whether there is any indication that previously recognized impairment losses no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss. (h) Senior convertible notes Senior convertible notes are classified as hybrid instruments that comprises a debt host contract for the interest and principal payments plus a derivative instrument for the conversion option. The initial carrying amount of the non-derivative non-derivative After initial recognition, the debt host contract would be measured at amortized cost and the derivative liability, not being closely related to the debt host contract, would be measured at fair value through profit or loss. (i) Expendable parts and supplies Expendable parts and supplies for flight equipment are carried at the lower of the average acquisition cost or replacement cost, and are expensed when used in operations. The replacement cost is the estimated purchase price in the ordinary course of business. (j) Passenger traffic commissions Passenger traffic commissions are recognized as expense when transportation is provided and the related revenue is recognized. Passenger traffic commissions paid but not yet recognized as expense are included under “Prepaid expenses” in the accompanying consolidated statement of financial position. (k) Property and equipment Property and equipment comprise mainly airframe, engines, and other related flight equipment. All property and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. When a major maintenance inspection or overhaul cost is embedded in the initial purchase cost of an aircraft, the Company estimates the carrying amount of the component. These initial built-in The Company recognizes the depreciation on a straight-line basis which for some aircraft components is akin to depreciation based on use, over the estimated useful life of the assets. Depreciation is recognized in the consolidated statement of profit or loss from the date the property, and equipment is installed and ready for use. Property and equipment Estimate useful life (years) Residual Value Flight equipment (*) Airframe and engines 27 15% Major maintenance events 3-16 — Ramp and miscellaneous Ground equipment 10 — Furniture, fixture, equipment and other 5-10 — Leasehold improvements Lesser of remaining lease term and estimated useful — (*) Excluding the Embraer 190 and 737-700 An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized. The costs of major maintenance events for leased aircraft are capitalized and depreciated over the shorter of the scheduled usage period to the next major inspection event or the remaining life of lease term (as appropriate), the remaining value of the previously capitalized maintenance or the right-of-use The residual values, useful lives, and methods of depreciation of property and equipment are reviewed at each financial year-end The land owned by the Company is recognized at cost less any accumulated impairment. (l) Leases At inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract, conveys the right to control the use of an identified asset, the Company assesses whether: • The Company has the right to obtain substantially all of the economic benefits from use of the identified asset; and • The Company has the right to direct the use of the identified asset. The Company as a lessee At the commencement date, the Company recognizes a ROU and a lease liability. The ROU is measured at cost and comprises: • the amount of the initial measurement of the lease liability, • any lease payments made at or before the commencement date, less any lease incentives received; • any initial direct costs incurred by the lessee; and • an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The Company incurs the obligation for those costs either at the commencement date or as a consequence of having used the underlying asset during a particular period. The ROU is subsequently depreciated using the straight line method from the commencement date to the earlier of the end of the useful life of the ROU or component, or lease term. The estimated useful life of ROU is determined of the same basis of owned property and equipment. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. The ROU assets are also subject to impairment. Refer to the accounting policies in section (g) impairment of non-financial In this regard, the Company applies the following, by class of underlying asset: • for the leases of real estate, the Company has elected to separate non-lease • for aircraft leases, the value of major maintenance inspection or overhaul embedded in the aircraft is recognized as a separated component and is depreciated over the estimated time period unti |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2020 | |
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Significant accounting judgments, estimates and assumptions | 4. Significant accounting judgments, estimates and assumptions The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities in future periods. The consolidated financial statements have thus been established taking into consideration the current context of the Covid-19 Judgments In the process of applying the Company’s accounting policies, management has made judgments, which have the most significant effect on the amounts recognized in the consolidated financial statements in the following area: • Leases The Company enters into contracts for the use of the aircraft and real estate which include, airport and terminal facilities, sales offices, maintenance facilities, and general offices. The Company assesses, based on the terms and conditions of the arrangements, whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. • Lease term The Company determines the lease term as the non-cancellable The Company applies judgement in evaluating whether it is reasonably certain or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customization to the leased asset). • Assets held for sale The Company has decided to sell its Boeing 737-700 737-700 The Company considered the fleet to meet the criteria to be classified as held for sale for the following reasons: • The fleet is available for immediate sale and can be sold to the buyer in its current condition. • The actions to complete the sale were initiated and expected to be completed within one year from the date of initial classification. • The Board of Directors approved the plan to sell its Boeing 737-700 For more details on assets held for sale refer to note 13. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the Company’s control. Such changes are reflected in the assumptions when they occur. • Impairment of financial assets The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each quarterly reporting period. • Impairment of non-financial Impairment exists when the carrying amount of an asset or CGU exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes (see note 16). • Property and equipment The Company’s management has determined that the residual value of the airframe, engines, and components (rotable parts) owned is 15% of the cost of the asset, so the depreciation of flight equipment is made accordingly. Annually, management reviews the useful life and residual value of each of these assets (see note 13). • Provision for return condition The Company records a provision to accrue for the cost that will be incurred in order to return the lease aircraft to their lessor in the agreed-upon condition, excluded estimated dismantling costs not based on utilization of the aircraft which are included in the ROU asset and lease liability. The methodology applied to calculate the provision requires management to make assumptions, including the future maintenance costs, discount rate, related inflation rates and aircraft utilization. The cash flows are discounted at a current pre-tax Any difference in the actual maintenance cost incurred and the amount of the provision is recorded under “Maintenance, materials and repairs” in the consolidated statement of profit or loss. The effect of any changes in estimates, including those mentioned above, is also recognized under “Maintenance, materials and repairs” for the period (see note 21). • Revenue recognition – expired tickets The Company recognizes estimated fare revenue for tickets that are expected to expire based on departure date (unused tickets), based on historical data and experience. Estimating the expected expiration rate requires management’s judgment, among other things, the historical data and experience is an indication of the future customer behavior. Typically, unused tickets expire after one year, and any revenue associated with tickets sold for future travel is recognized within 12 months. In response to Covid-19, • Multiple deliverable revenue arrangements - Frequent flyer program The frequent flyer program includes two major transactions that are considered revenue arrangements with multiple performance obligations: (i) mileage credits earned with travel and (ii) mileage credits sold to co-branded • Taxes The Company believes that taken tax positions, including transfer pricing between entities, are reasonable. However, in the event of an audit by the tax authorities, they may challenge the positions taken by the Company, resulting in additional taxes and interest liabilities. The tax positions involve considerable judgment by management and are reviewed and adjusted to account for changes in circumstances, such as lapsing of applicable statutes of limitations, conclusion of tax audits, additional exposures based on identification of new issues, or court decisions affecting a particular tax issue. Actual results may differ from estimates (see note 22). • Incremental borrowing rate for leases The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use • Fair value measurement The Company measures financial instruments such as derivatives at fair value at the date of each statement of financial position. Fair values of financial instruments measured at amortized cost are disclosed in note 28.6. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • in the principal market for the asset or liability, or • in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole (see note 28.6 for further disclosures): i) Level 1—Quoted (unadjusted) market prices in active markets for identical assets or liabilities. ii) Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. iii) Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing |
Changes in disclosures
Changes in disclosures | 12 Months Ended |
Dec. 31, 2020 | |
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Changes in disclosures | 5. Changes in disclosures 5.1 Adoption of new and amended standards and interpretations Amendment to IFRS 16 Leases – Covid-19 On May 28, 2020, the IASB issued Covid-19-Related Leases The amendments provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 Covid-19 Covid-19 The practical expedient applies only to rent concessions occurring as a direct consequence of the Covid-19 • The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change. • Any reduction in lease payments affects only payments originally due on or before June 30, 2021 (for example, a rent concession would meet this condition if it results in reduced lease payments before June 30, 2021 and increased lease payments that extend beyond June 30, 2021). • There is no substantive change to other terms and conditions of the lease. The amendment is effective for annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted. The Company received rent concessions occurred as a direct consequence of the Covid-19 Leases Other standards issued The following amendments and interpretations effective for annual periods beginning on or after January 1, 2020, had no impact on the company’s financial statements: Amendment to IFRS 3 Definition of a business Amendments to IAS 1 and IAS 8 Definition of material Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest rate benchmark reform The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. 5.2 Change in presentation As disclosed in the table below, a retrospective change in presentation has been made to the December 31, 2019 consolidated statement of financial position to conform to the 2020 presentation. The Company is changing the presentation of the interest payable, previously presented within taxes and interest payables in the consolidated statement of financial position. The following table reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position: As previosly reported Reclasification 2019 (Restated) Current liabilities Loans and borrowings $ 117,238 $ 5,344 $ 122,582 Taxes and interest payable $ 51,611 $ (5,344 ) $ 46,267 |
Standards and interpretations n
Standards and interpretations not yet adopted | 12 Months Ended |
Dec. 31, 2020 | |
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Standards and interpretations not yet adopted | 6. Standards issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Amendments to IAS 1 – Classification of Liabilities as Current or Non-current In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements non-current. • What is meant by a right to defer settlement. • That a right to defer must exist at the end of the reporting period. • That classification is unaffected by the likelihood that an entity will exercise its deferral right. The amendments are effective for reporting periods beginning on or after January 1, 2023 and must be applied retrospectively. The Company does not expect that these amendments have a material impact on its consolidated financial statements. Amendments to IFRS 3 – Reference to the Conceptual Framework In May 2020, the IASB issued Amendments to IFRS 3 Business Combinations—Reference to the Conceptual Framework The Board also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets Levies At the same time, the Board decided to clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework for the Preparation and Presentation of Financial Statements. The amendments are effective for annual reporting periods beginning on or after January 1, 2022 and apply prospectively. The Company does not expect that these amendments have a material impact on its consolidated financial statements. Amendment to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use In May 2020, the IASB issued Property, Plant and Equipment — Proceeds before Intended Use The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendment is not expected to has a material impact on the Company. Amendments to IAS 37 – Onerous Contracts – Costs of Fulfilling a Contract In May 2020, the IASB issued amendments to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a “directly related cost approach”. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The Company does not expect that these amendments have a material impact on its consolidated financial statements. Amendments to IFRS 7, IFRS 4 and IFRS 16 – Interest rate benchmark reform – Phase 2 In August 2020, the IASB has issued amendments to IFRS 7 Financial Instruments: Disclosures, These amendments should be applied for annual periods beginning on or after January 1, 2021. Earlier application is permitted. Amendment to IFRS 9 – Fees in the ’10 per cent’ test for derecognition of financial liabilities As part of its 2018-2020 annual improvements to IFRS standards process the IASB issued amendment to IFRS 9. The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment. The amendment is effective for annual reporting periods beginning on or after 1 January 2022 with earlier adoption permitted. The Company will apply the amendments to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment. The amendment is not expected to has a material impact on the Company. |
Revenue from contract with cust
Revenue from contract with customers | 12 Months Ended |
Dec. 31, 2020 | |
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Revenue from contract with customers | 7. Revenue from contract with customers 7.1 Revenue disaggregation Operating revenues are comprised of passenger revenues, cargo and mail, and other operating revenues. The following table shows disaggregated operating revenues for the years ended as December 31, 2020, 2019 and 2018. 2020 2019 2018 Passenger revenue Passenger revenue $ 752,050 $ 2,581,179 $ 2,567,316 Miles redeemed 8,544 31,426 20,073 760,594 2,612,605 2,587,389 Cargo and mail revenue 21,002 62,460 62,483 Other operating revenue Frequent flyer program—marketing services 15,452 22,170 16,291 Other operating revenue 3,955 10,173 11,464 19,407 32,343 27,755 $ 801,003 $ 2,707,408 $ 2,677,627 7.2 Contract balances The significant contract liabilities are comprised of ticket sales for transportation that has not yet been provided, recorded as “Air traffic liability” and outstanding loyalty program miles that may be redeemed for future travel, recorded as “Frequent flyer deferred revenue”. The table below presents the changes in air traffic liability: 2020 2019 Balance at beginning of year $ 497,374 $ 471,676 Sales 887,004 2,878,814 Revenue recognition (700,406 ) (2,355,626 ) Tax recognition (113,473 ) (404,732 ) Reimbursements (82,910 ) (45,396 ) Interline tickets (15,056 ) (35,272 ) Other (1,838 ) (12,090 ) Balance at end of year $ 470,695 $ 497,374 The contract duration of passenger tickets is one year. Accordingly, any revenue associated with tickets sold for future travel dates will be recognized within twelve months. In response to Covid-19, The table below presents the activity of the current and non-current 2020 2019 Balance at beginning of year $ 80,326 $ 67,814 Deferred of revenue 19,431 43,938 Recognition of revenue (8,544 ) (31,426 ) Balance at end of year $ 91,213 $ 80,326 Current 16,041 35,120 Non-current 75,172 45,206 $ 91,213 $ 80,326 Contract assets are reflected as account receivable. See note 10. 7.3 Segment reporting The Company’s business activities are conducted as one operating segment – Air transportation (that includes cargo and mail revenue), the reporting results of which are regularly reviewed by management for purposes of analyzing its performance and making decisions about resource allocations. Information concerning operating revenue by geographic area for the period ended December 31 is as follows: 2020 2019 2018 North America $ 233,039 $ 857,002 $ 826,529 South America 281,008 975,530 1,076,507 Central America 246,727 740,358 648,747 Caribbean 20,822 102,175 98,089 $ 781,596 $ 2,675,065 $ 2,649,872 The Company attributes revenue to the geographic areas based on point of sales. Our tangible assets and capital expenditures consist primarily of flight and related ground support equipment, which is mobile across geographic markets and, therefore, has not been allocated. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
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Cash and cash equivalents | 8. Cash and cash equivalents 2020 2019 Checking and saving accounts $ 99,286 $ 118,367 Time deposits of no more than ninety days 19,500 40,000 Cash on hand 279 365 $ 119,065 $ 158,732 Time deposits earned interest based on rates determined by the banks in which the instruments are held, ranging between 0.24% and 0.35% for U.S. dollars investments until December 2020 (2019: between 1.71% and 1.98% for U.S. dollars investments). As of December 31, 2020, the cash and cash equivalents disclosed above and in the consolidated statement of cash flows include $5.9 million that the Company has pledged from its checking and saving accounts to fulfill the collateral requirement. As of December 31, 2020 and 2019, except for the cash pledged to fulfill collateral requirement,the Company’s cash and cash equivalents are free of restriction or charges that could limit its availability. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
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Investments | 9. Investments 2020 2019 Current Non Current Total Current Non Current Total Time deposits $ 430,000 $ 80,000 $ 510,000 $ 640,500 $ 60,000 $ 700,500 Bonds 341,854 39,796 381,650 52,573 74,634 127,207 771,854 119,796 891,650 693,073 134,634 827,707 Allowance for expected credit losses (1,038 ) (179 ) (1,217 ) (670 ) (287 ) (957 ) $ 770,816 $ 119,617 $ 890,433 $ 692,403 $ 134,347 $ 826,750 Time deposits earned interest based on rates determined by the banks in which the instruments are held. The use of these instruments depends on the cash requirements of the Company. Time deposits with a contractual maturity of less than 365 days, bear interest at rates ranging between 0.27% and 4.38% (2019: between 2.00% and 3.75%), and those with a contractual maturity of more than 365 have rates ranging between 1.20% and 4.25% (2019: between 3.25% and 4.38%). The Company acquired bonds with semiannual interest payment, the effective interest rates of these investments ranging between 0.21% and 3.32% (2019: between 2.06% and 3.32%). All of the investments at amortized cost are denominated in U.S. dollar, as a result, there is no exposure to foreign currency risk. There is also no exposure to price risk as the investments will be held to maturity. The information about the expected credit loss over these financial assets are disclosed in note 28.3. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2020 | |
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Accounts receivable | 10. Accounts receivable 2020 2019 Credit cards $ 35,882 $ 64,595 Cargo and other travel agencies 10,052 19,389 Airlines and clearing house 6,156 31,087 Government 5,466 8,031 Trade receivables from related parties 1,429 147 Other 13,187 14,250 72,172 137,499 Allowance for expected credit losses (6,483 ) (5,579 ) $ 65,689 $ 131,920 Current 64,635 129,781 Non-current 1,054 2,139 $ 65,689 $ 131,920 Trade receivables are non-interest See detail of trade receivables from related parties in note 23. As of December 31, 2020, the Company maintains a non-current The category “Other” mainly includes receivables from miles’ partners and employees accounts. The change in the allowance for expected credit losses in respect of accounts receivable during the year was as follows. 2020 2019 2018 Balance at beginning of year $ (5,579 ) $ (5,057 ) $ (3,673 ) Adjustment on initial application of IFRS 9 — — (624 ) Balance at beginning of year under IFRS 9 (5,579 ) (5,057 ) (4,297 ) Additions (1,310 ) (744 ) (1,311 ) Write-offs 406 222 551 Balance at end of year $ (6,483 ) $ (5,579 ) $ (5,057 ) The information about the credit exposures is disclosed in note 28.3. |
Expendable parts and supplies
Expendable parts and supplies | 12 Months Ended |
Dec. 31, 2020 | |
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Expendable parts and supplies | 11. Expendable parts and supplies 2020 2019 Material for repair and maintenance $ 69,737 $ 66,418 Other inventories 4,920 3,686 74,657 70,104 Allowance for obsolescence (338 ) (1,004 ) $ 74,319 $ 69,100 Expendable parts and supplies recognized when used as an expense in the accompanying consolidated statement of profit or loss under “Maintenance, materials and repairs” amount to $12.7 million, $32.4 million and $31.9 million, for the years ended December 31, 2020, 2019 and 2018, respectively. |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2020 | |
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Prepaid expenses | 12. Prepaid expenses 2020 2019 Prepaid taxes $ 10,022 $ 26,164 Prepaid commissions 3,908 4,298 Prepaid insurance 5,385 1,231 Prepaid to supplier 17,224 35,084 $ 36,539 $ 66,777 Current 30,473 49,034 Non-current 6,066 17,743 $ 36,539 $ 66,777 Prepaid taxes include $4.0 million of tax advance of VAT and withholdings taxes (2019: $8.4 million). The non-current During 2020, the Tax Authorities in Colombia recognized the return of credits of income tax in tax refund titles equivalents to $14.8 million. The Company sold these titles and recognized a loss in sale of $0.01 million included under Other non-operating Prepaid to supplier mainly includes operating expenses related to aircraft rent, fuel and maintenance services. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2020 | |
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Property and equipment | 13. Property and equipment Land Flight Purchase Ramp and Furniture, Leasehold Construction Total Cost - Balance at January 1, 2018 $ 6,301 $ 3,252,229 $ 413,633 $ 48,353 $ 27,524 $ 50,043 $ 5,778 $ 3,803,861 Transfer of pre-delivery — 156,305 (156,305 ) — — — — — Additions — 228,302 216,732 5,434 3,773 3,388 10,795 468,424 Disposals — (20,737 ) — (128 ) (393 ) (6,246 ) (10 ) (27,514 ) Assets held for sale — (164,201 ) — — — — — (164,201 ) Reclassifications — (2,371 ) — 77 14 2,219 (2,310 ) (2,371 ) Balance at December 31, 2018 $ 6,301 $ 3,449,527 $ 474,060 $ 53,736 $ 30,918 $ 49,404 $ 14,253 $ 4,078,199 Transfer of pre-delivery — 78,143 (78,143 ) — — — — — Additions — 109,286 67,357 2,693 2,450 3,269 4,436 189,491 Disposals — (184,685 ) — (102 ) (570 ) (134 ) (340 ) (185,831 ) Assets held for sale — (413,677 ) — — — — — (413,677 ) Reclassifications — — — 10 — 12,752 (12,762 ) — Balance at December 31, 2019 $ 6,301 $ 3,038,594 $ 463,274 $ 56,337 $ 32,798 $ 65,291 $ 5,587 $ 3,668,182 Transfer of pre-delivery — 49,860 (49,860 ) — — — — — Additions — 39,492 — 582 221 566 3,204 44,065 Disposals — (34,626 ) — (306 ) (223 ) (780 ) — (35,935 ) Assets held for sale — (554,790 ) — — — — — (554,790 ) Reclassifications — 244 (5,600 ) — — 2,382 (2,626 ) (5,600 ) Balance at December 31, 2020 $ 6,301 $ 2,538,774 $ 407,814 $ 56,613 $ 32,796 $ 67,459 $ 6,165 $ 3,115,922 Accumulated depreciation and impairment - Balance at January 1, 2018 $ — $ (1,097,751 ) $ — $ (37,016 ) $ (22,959 ) $ (31,919 ) $ — $ (1,189,645 ) Depreciation for the year — (147,980 ) — (3,783 ) (2,506 ) (5,038 ) — (159,307 ) Disposals — 16,876 — 118 379 6,396 — 23,769 Assets held for sale — 75,556 — — — — — 75,556 Reclassifications — 268 — — — — — 268 Impairment — (130,709 ) — — — — — (130,709 ) Balance at December 31, 2018 $ — $ (1,283,740 ) $ — $ (40,681 ) $ (25,086 ) $ (30,561 ) $ — $ (1,380,068 ) Depreciation for the year — (148,832 ) — (3,292 ) (2,938 ) (5,757 ) — (160,819 ) Disposals — 178,168 — 102 518 — — 178,788 Assets held for sale — 226,319 — — — — — 226,319 Balance at December 31, 2019 $ — $ (1,028,085 ) $ — $ (43,871 ) $ (27,506 ) $ (36,318 ) $ — $ (1,135,780 ) Depreciation for the year — (126,988 ) — (3,121 ) (3,134 ) (5,759 ) — (139,002 ) Disposals — 32,335 — 290 179 295 — 33,099 Impairment — — — — — — (4 ) (4 ) Assets held for sale — 273,251 — — — — — 273,251 Balance at December 31, 2020 $ — $ (849,487 ) $ — $ (46,702 ) $ (30,461 ) $ (41,782 ) $ (4 ) $ (968,436 ) Carrying amounts - At December 31, 2018 $ 6,301 $ 2,165,787 $ 474,060 $ 13,055 $ 5,832 $ 18,843 $ 14,253 $ 2,698,131 At December 31, 2019 $ 6,301 $ 2,010,509 $ 463,274 $ 12,466 $ 5,292 $ 28,973 $ 5,587 $ 2,532,402 At December 31, 2020 $ 6,301 $ 1,689,287 $ 407,814 $ 9,911 $ 2,335 $ 25,677 $ 6,161 $ 2,147,486 Flight equipment Flight equipment comprises aircraft, engines, aircraft components and major maintenance of own and leased aircraft. During December 2020, one Boeing 737 MAX aircraft was delivered, the Company expects to finalize the financing from the Export-Import Bank of the United States (the “EXIM Bank”) of this aircraft, during the first quaeter of 2021. The Company has acquired aircraft through Japanese Operating Leases with Call Option (JOLCO) arrangements. These arrangements establish semi-annual payments of obligations, and have a term of 10 years, with a purchase option at the end of the period. During 2019, 2 new aircraft Boeing 737 MAX 9 were acquired through this type of arrangements. Aircraft with a carrying value of $1.3 billion (include aircraft acquired through JOLCO) are pledged as collateral for the obligation of the special purpose entities as of December 31, 2020 (2019: $1.5 billion). From March 2019 to November 2020, the Federal Aviation Administration (FAA) grounded all U.S. registered Boeing 737 MAX aircraft. The Company’ fleet currently includes 7 Boeing 737 MAX aircraft with an additional 64 aircraft on order (see note 27). The Company is currently in negotiations with Boeing over compensation for the damages that it has suffered as a result of the MAX grounding and expect those to be satisfactory resolved in the near term. During 2020, the Company identified indicators of impairment in its aircraft due the capacity reductions, the temporary grounding of part of its fleet, following by the reduction in air traffic as a result of the Covid-19 pre-tax Purchase deposits for flight equipment As of December 31, 2020 there were no additions to purchase deposits. As of December 31, 2019 the additions for $67.3 million include $75.4 million of advance payments on aircraft and engines purchase contracts made during 2019, which includes $1.4 million of borrowing costs capitalized during the year ended December 31, 2019, and $8.1 million of credits received on aircraft acquisition. The rate used in 2019 to determine the amount of borrowing costs eligible for capitalization was 3.40%, which is the interest rate of the specific borrowing (see note 18). As of December 31, 2020 the total amount of purchase deposits for flight equipment corresponds to the future purchase of MAX aircraft (see note 27). Other property and equipment During 2020, the Company capitalized under “Leasehold improvements” $1.6 million for improvements to the Training Center located at the Ciudad del Saber, Panama City and $0.8 million in other remodeling projects for airport facilities and offices. During 2019, the Company capitalized as “Leasehold improvements” $11.6 million of a new hangar located at the Tocumen International Airport. As of December 31, 2020 and 2019 construction in progress mainly comprises remodeling projects for airport facilities and offices. Assets held for sale In November 2019, the Company announced its decision to accelerate the exit of its Embraer 190 fleet and initiated an active program to locate a buyer to sell the remaining 14 aircraft, spare engines, spare parts and inventory by 2020. As December 31, 2019 this anticipated exit resulted in impairment losses of $89.3 million to write down the assets to the lower of their carrying amount and the fair value less cost to sell, which have been included under “Impairment of non-financial In June 2020, the Company updated the fair value less cost to sell of the Embraer 190 fleet and related assets and recognized additional impairment losses of $49.5 million. The fair value of the Embraer 190 fleet was determined considering the negotiated sales prices adjusted by the costs to disposal estimated by the Company, and therefore classifies as level 3 in the fair value hierarchy. During the third quarter of 2020 the Company signed the contract for the sale of 14 EMB-190s, In August 2020, motivated by the decrease in demand as a consequence of Covid-19, 737-700. non-financial The fair value of the Boeing 737-700 At 31 December 2020, the assets held for sale comprised the following assets: 2020 2019 Assets Flight equipment $ 129,443 $ 91,252 Expendables, spare parts and other supplies 6,099 28,754 $ 135,542 $ 120,006 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
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Leases | 14. Leases The Company as a lessee The Company leases some aircraft under long-term lease agreements with an average duration of 10 years. Aircraft under operating leases may be renewed in accordance with management’s business plan. Other leased assets include real estate, airport and terminal facilities, sales offices, maintenance facilities, and general offices. Most lease agreements include renewal options; a few have escalation clauses, but no purchase options. Information about leases for which the Company is a lessee is presented below: Right of use assets Aircraft Real estate Total Balance at January 1, 2018 $ 350,517 $ 33,833 $ 384,350 Additions 83,389 1,381 84,770 Depreciation expense (100,857 ) (6,270 ) (107,127 ) Balance at December 31, 2018 $ 333,049 $ 28,944 $ 361,993 Additions 23,162 8,512 31,674 Depreciation expense (95,564 ) (7,260 ) (102,824 ) Balance at December 31, 2019 $ 260,647 $ 30,196 $ 290,843 Additions/(Terminations) 21,706 (1,888 ) 19,818 Impairment (1,541 ) — (1,541 ) Depreciation expense (88,451 ) (6,390 ) (94,841 ) Balance at December 31, 2020 $ 192,361 $ 21,918 $ 214,279 Additions to the right-of-use The impairment loss relates to leased aircraft grounded until its redelivery due the capacity reductions a result of the Covid-19 Lease liabilities 2020 2019 Current portion of lease liability Aircraft $ 77,777 $ 91,246 Real estate 5,828 6,486 $ 83,605 $ 97,732 Long-term lease liability Aircraft $ 125,216 $ 179,031 Real estate 21,689 27,801 $ 146,905 $ 206,832 $ 230,510 $ 304,564 For leases under IFRS 16 the Company recognizes a provision to estimate the costs for work required to be performed just before the redelivery of the aircraft to the lessors and which does not depend on the aircraft utilization. This provision is booked as a dismantling provision cost under “long term liabilities” in the consolidated statement of financial position. As of December 31, 2020 the total liability related to leases including the provision of dismantling amounts to $255.5 million (2019: $328.9 million). Total cash outflow for leases for the years ended as December 31, 2020 and 2019: 2020 2019 Aircraft $ 97,353 $ 107,610 Real estate 6,039 9,458 $ 103,392 $ 117,068 As of December 31, 2020 and 2019 the average incremental borrowing rate of leased aircraft is 3.37%. The maturity analysis of lease liabilities is disclosed in note 28.5. Amounts recognized in the consolidated statement of profit or loss related to leases: 2020 2019 2018 Depreciation and amortization Aircraft $ 88,451 $ 95,564 $ 100,857 Real estate 6,390 7,260 6,270 $ 94,841 $ 102,824 $ 107,127 Impairment of non financial assets Aircraft $ 1,541 $ — $ — Other operating and administrative expenses Short-term leases $ 90 $ 364 $ 1,412 Leases of low-value 330 733 853 Variable lease payments not include in the measurement of lease liabilities 827 706 611 Variable lease payments by rental concessions received (489 ) — — $ 758 $ 1,803 $ 2,876 Finance cost Aircraft $ 8,185 $ 11,221 $ 12,074 Real estate 1,717 2,073 2,105 Unwinding of discount and changes in the discount rate 832 846 796 $ 10,734 $ 14,140 $ 14,975 $ 107,874 $ 118,767 $ 124,978 Some property leases contain variable payment terms that are linked to the number of passengers or employees using the areas. Additional, some aircraft leases contain variable payment terms that depend on the aircraft’s flight hours. The unwinding of discount and changes in the discount rate over leased aircraft correspond to the interest expenses of the discounted dismantling provision. The Company as a lessor Since 2015, the Company is the lessor of two aircraft Boeing 737-700, Total lease income amounts to $3.2 million for the period ended December 31, 2020 (2019: $3.5 million and 2018: $3.5 million), included under “Other operating revenue” in the accompanying consolidated statement of profit or loss. The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date. The future minimum lease receivables under non-cancellable 2020 2019 Up to one year $ 3,000 $ 3,220 One to five years 2,875 5,875 Total minimum lease rental receivables $ 5,875 $ 9,095 |
Net employee defined benefit
Net employee defined benefit | 12 Months Ended |
Dec. 31, 2020 | |
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Net employee defined benefit | 2020 2019 Fair value of plan assets $ 25,783 $ 29,086 Defined benefit obligation (39,466 ) (28,195 ) Other employee benefits (649 ) (642 ) $ (40,115 ) $ (28,837 ) Benefit (liability) assets $ (14,332 ) $ 249 In accordance with Panamanian law, the Company contributes to the following defined benefit plans: Seniority premium plan: Eligibility: All employees Benefit: One week of salary per years of service Salary: Average of the 5 prior years of the monthly base salary Payment: Lump sum Indemnity plan: The actuarial liability is recognized for the legal obligation under the formal terms of the plan, and for the implied projections as required under IAS 19R. These actuarial projections do not constitute a legal obligation for the Company. The following table summarizes the components of net benefit expense included under “Wages, salaries, benefits and other employees´ expenses” in the accompanying consolidated statement of profit or loss: Year ended December 31,2020 Defined benefit Fair value of Defined benefit Current service cost $ 2,393 $ — $ 2,393 Interest cost on net benefit obligation 706 (731 ) (25 ) Past service cost 457 — 457 Curtailment / Settlement (2,026 ) — (2,026 ) Net benefit expense $ 1,530 $ (731 ) $ 799 Year ended December 31,2019 Defined benefit Fair value of Defined benefit Current service cost 2,192 — 2,192 Interest cost on net benefit obligation 887 (979 ) (92 ) Net benefit expense $ 3,079 $ (979 ) $ 2,100 Year ended December 31,2018 Defined benefit Fair value of Defined benefit Current service cost 2,105 — 2,105 Interest cost on net benefit obligation 642 (666 ) (24 ) Net benefit expense $ 2,747 $ (666 ) $ 2,081 The following table shows reconciliation from the opening balance to the closing balances for net employee defined benefit liabilities and its components: Defined benefit Fair value of Other employee Defined benefit At January 1, 2018 $ (19,997 ) $ 23,794 $ (612 ) $ 3,185 Current service cost (2,105 ) — — (2,105 ) Interest (cost) income (642 ) 666 — 24 Return on plan assets — 483 — 483 Experience gain (loss) (1,943 ) — — (1,943 ) Invesment return — 67 — 67 Actuarial changes arising from changes in financial assumptions 877 — — 877 Employer contributions — 4,780 — 4,780 Benefits paid 1,242 (1,451 ) — (209 ) Adjustments — — (68 ) (68 ) At December 31, 2018 $ (22,568 ) $ 28,339 $ (680 ) $ 5,091 Current service cost (2,192 ) — — (2,192 ) Interest (cost) income (887 ) 979 — 92 Experience gain (loss) (1,681 ) — — (1,681 ) Invesment return — 138 — 138 Actuarial changes arising from changes in financial assumptions (1,874 ) — — (1,874 ) Employer contributions — 1,903 — 1,903 Benefits paid 1,007 (1,086 ) — (79 ) Adjustments — (1,187 ) 38 (1,149 ) As of December 31, 2019 $ (28,195 ) $ 29,086 $ (642 ) $ 249 Current service cost (2,393 ) — — (2,393 ) Interest (cost) income (706 ) 731 — 25 Past service cost (457 ) — — (457 ) Curtailment / Settlement 2,026 — — 2,026 Return on plan assets — 374 — 374 Experience gain (loss) (4,001 ) — — (4,001 ) Actuarial changes arising from changes in demographic assumptions (11,285 ) — — (11,285 ) Actuarial changes arising from changes in financial assumptions (1,028 ) — — (1,028 ) Employer contributions — 1,709 — 1,709 Benefits paid 6,573 (6,117 ) — 456 Adjustments — — (7 ) (7 ) As of December 31, 2020 $ (39,466 ) $ 25,783 $ (649 ) $ (14,332 ) As of December 31, 2020 and 2019, plan assets are comprised totally by fixed term deposits. For the year ended December 31, 2020 actuarial losses of $15.5 million (2019: $4.4 million and 2018: $0.3 million) were recognized in other comprehensive income. As of December 31, 2020, employer contributions are a net amount of regular contributions by $2.8 million (2019: $4.4 million and 2018: $4.8 million) and retirement of interest earned by $1.1 million (2019: 2.5 million and 2018: null). The following were the principal actuarial assumptions at the reporting date: 2020 2019 2018 Economic assumptions - Discount rate 2.0% 2.5% 3.9% Compensation - salary increase 4.0% 4.0% 4.0% Demographic assumptions - Mortality Panama expirence RP - 2000 no collar RP -2000 no collar Termination 2003 SoA pension plan 13% all ages 13% all ages Retirement Males 62 years Females 57 years Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amount shown below: December, 31 2020 December, 31 2019 December, 31 2018 Increase Decrease Increase Decrease Increase Decrease Discount rate (0.5% movement) $ 2,318 $ (2,554 ) $ 709 $ (751 ) $ 538 $ (569 ) The sensitivity analyses above have been determined based on a method that extrapolates the impact on the defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses are based on a change in a significant assumption, keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another. The following payments are expected contributions to the defined benefit plan in future years: 2020 2019 Up to one year $ 2,299 $ 5,169 One to five years 8,777 14,008 Over five years 14,112 14,049 Total expected payments $ 25,188 $ 33,226 The average duration of the defined benefit plan obligation at the end of the reporting period is 9.0 years. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Intangible assets | 16. Intangible assets Other intangibles assets License and Intangible Goodwill software rights in process Total Cost - Balance at January 1, 2018 $ 20,380 $ 74,683 $ 30,891 $ 125,954 Additions — 2,711 27,471 30,182 Disposals — — — — Reclassifications — 16,730 (16,730 ) — Balance at December 31, 2018 $ 20,380 $ 94,124 $ 41,632 $ 156,136 Additions — 8,503 16,962 25,465 Disposals — (86 ) — (86 ) Reclassifications — 40,660 (40,660 ) — Balance at December 31, 2019 $ 20,380 $ 143,201 $ 17,934 $ 181,515 Additions — 4,378 12,041 16,419 Disposals — (5,546 ) — (5,546 ) Reclassifications — 13,975 (13,975 ) — Balance at December 31, 2020 $ 20,380 $ 156,008 $ 16,000 192,388 Accumulated amortization and impairment - Balance at January 1, 2018 $ — $ (44,839 ) $ — $ (44,839 ) Amortization for the year — (10,129 ) — (10,129 ) Disposals — — — — Balance at December 31, 2018 $ — $ (54,968 ) $ — $ (54,968 ) Amortization for the year — (18,437 ) — (18,437 ) Disposals — 6 — 6 Balance at December 31, 2019 $ — $ (73,399 ) $ — $ (73,399 ) Amortization for the year — (25,493 ) — (25,493 ) Impairment — — (1,020 ) (1,020 ) Disposals — 3,092 — 3,092 Balance at December 31, 2020 $ — $ (95,800 ) $ (1,020 ) $ (96,820 ) Carrying amounts - At December 31, 2018 $ 20,380 $ 39,156 $ 41,632 $ 101,168 At December 31, 2019 $ 20,380 $ 69,802 $ 17,934 $ 108,116 At December 31, 2020 $ 20,380 $ 60,208 $ 14,980 $ 95,568 Goodwill For impairment testing, goodwill acquired through business combinations is allocated to the air transportation CGU which is also the operating and reportable segment of the Company. Goodwill is tested for impairment annually as at September 30 and when circumstances indicate that the carrying value may be impaired. The Company considers the relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment. On December 31, 2020, the market capitalization of the Company was below the book value of its equity, indicating a potential impairment of goodwill and impairment of the assets of the operating segment. In addition, the overall decline in air transportation around the world, as well as the ongoing economic uncertainty, have led to a decreased demand in the CGU. The recoverable amount of the CGU of $2.5 billion (2019: $4.3 billion) has been determined based on a value in use calculation using cash flow projections from financial budgets approved by senior management covering a five-year period. The pre-tax The calculations of value in use of the CGU are sensitive to the following main assumptions: • Revenue – the Company calculated the projected passenger revenue based on the current beliefs, expectations, and projections about future events and financial trends affecting its business. • Cash flows—determination of the terminal value is based on the present value of the Company’s cash flows in perpetuity. When estimating the cash flows for use in the residual value calculation, it is essential to clearly define the normalized cash flows level, the appropriate discount rate for the degree of risk inherent in that return stream, and a constant future growth rate for the related cash flows. To estimate the value, the Gordon Growth Model was used. • Discount rates – The selected pre-tax pre-tax A rise in the discount rate to 15.2% (i.e., +1.4%) would result in an impairment. Other intangible assets Intangible assets in process Intangible assets in process as of December 31, 2020 and 2019 mainly comprise the development of operational systems. During 2020, the Company capitalized $10.8 million on marketing, sales and human resources programs. During 2019, the Company capitalized $23.6 million of the new tickets reservation system. As of December 31, 2020 the amount of $1.0 million recognized as “Impairment of non-financial Covid-19 In addition, the Company identified and wrote-off COVID-19 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Other assets | 17. Other assets 2020 2019 Current - Interest receivable $ 6,457 $ 12,838 Other 1,348 1,368 7,805 14,206 Non-current Guarantee deposits 3,010 4,121 Deposits for litigation 8,126 10,548 Other 3,212 3,212 14,348 17,881 $ 22,153 $ 32,087 Guarantee deposits are mainly amounts paid to fuel suppliers, as required at the inception of the agreements (see note 23). Deposit for litigation is cash deposited into the escrow account until the related dispute is settled (see note 21). |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Loans and borrowings | 18. Loans and borrowings 2020 Due Effective rates Carrying Long-term fixed rate debt 2029 1.49% to 4.45% 663,293 Long-term variable rate debt 2029 0.42% to 1.66% 279,778 Senior convertible notes 2025 14.68% 220,829 1,163,900 Current maturities (127,946 ) Loans and borrowings long-term $ 1,035,954 2019 Due Effective rates ranged Carrying Long-term fixed rate debt 2029 1.49% to 4.90% 736,790 Long-term variable rate debt 2029 2.15% to 3.50% 323,975 1,060,765 Current maturities (122,582 ) Loans and borrowings long-term $ 938,183 Maturities of the loans and borrowings for the next five years are as follows: Year ending December 31, 2021 127,946 2022 116,767 2023 96,132 2024 158,459 2025 375,385 Thereafter 289,211 $ 1,163,900 Senior convertible notes In April 2020, the Company issued Senior Convertible Notes (“notes”) in the total principal amount of $350.0 million maturing on April 15, 2025, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The notes are senior, unsecured obligations of the Company and will accrue interest at a rate of 4.50% per annum, payable semi-annually in arrears on April 15 and October 15 of each year. Noteholders have the right to convert their notes only upon the occurrence of certain events. From and after October 15, 2024, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, shares of their Class A common stock or a combination of cash and shares of their Class A common stock, at the Company’s election. The initial conversion rate is 19.3564 shares per $1,000 principal amount of notes, which represents an initial conversion price of approximately $51.66 per share of Class A common stock and will be subject to adjustment upon the occurrence of certain events. The net proceeds from the offering, after deducting the initial purchasers’ discounts, commissions and other transaction costs is as follows: Nominal Cost assigned to Net Date April 30, 2020 $ 350,000 $ (7,102 ) $ 342,898 The Company used the net proceeds from the offering for general corporate purposes. The notes are redeemable, in whole or in part, for cash at the Company’s option at any time, and from time to time, on or after April 17, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of the Company’s Class A common stock exceeds 130% of the conversion price for a specified period of time. In addition, the notes are redeemable, in whole and not in part, at the Company’s option in connection with certain changes in tax law at any time. The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, plus a make-whole premium. The component corresponding to the conversion feature of the notes is recorded an embedded derivative under “Derivative financial instruments” in the consolidated statement of financial position. The fair value of the embedded derivative at initial recognition was $138.4 million. At December 31, 2020, the fair value was $245.6 million and the Company recorded an unrealized loss of $107.1 recorded as “Net change in fair value of derivatives” in the consolidated statement of profit or loss (see note 28.6). Long term debt and loan payable As of December 31, 2020, long-term fixed rate debt included $579.7 million (2019: $608.3 million) and long-term variable debt included $202.6 million corresponding to aircraft acquisitions using JOLCO arrangements (2019: $225.2 million). As of December 31, 2020 the Company had $160.7 million (2019: $227.3 million) of outstanding indebtedness that is owed to financial institutions under financing arrangements guaranteed by the Export-Import Bank of the United States. The Export-Import Bank guarantees support 80% of the net purchase price of the aircraft and are secured with a first priority mortgage on the aircraft in favor of a security trustee on behalf of Export-Import Bank. The Company’s Export-Import Bank supported financings are amortized on a quarterly basis, are denominated in U.S. dollars, and originally bear interest at a floating rate linked to LIBOR. The Export-Import Bank guaranteed facilities typically offer an option to fix the applicable interest rate. The Company has exercised this option with respect to $83.6 million as of December 31, 2020 (2019: $128.1 million). The detail of finance cost and income is as follows: 2020 2019 2018 Finance income - Interest income on short-term bank deposits $ 543 $ 1,432 $ 1,670 Interest income on investment 19,420 22,973 21,958 $ 19,963 $ 24,405 $ 23,628 Finance cost - Interests expense on bank loans $ (29,711 ) $ (36,676 ) $ (34,687 ) Interests expense on senior convertible notes (23,571 ) — — Interest on factoring (256 ) (1,316 ) (1,163 ) Interest on lease liabilities (see note 14) (10,734 ) (14,140 ) (14,975 ) Other finace cost (8,773 ) (5,300 ) — $(73,045) $(57,432) $(50,825) Changes in liabilities arising from financing activities: Non-cash 2019 Cash flows Foreign Leases Concession Covid-19 Other 2020 Loans and borrowings $ 1,060,765 $ 220,812 $ — $ — $ — $ (117,677 ) $ 1,163,900 Lease liability 304,564 (93,213 ) (347 ) 19,995 (489 ) — 230,510 Dividends payable — (33,990 ) — — — — (33,990 ) Total liabilities from financing activities $ 1,365,329 $ 93,609 $ (347 ) $ 19,995 $ (489 ) $ (117,677 ) $ 1,360,420 Non-cash 2018 Cash flows Foreign Leases Concession Covid-19 Other 2019 Loans and borrowings $ 1,293,541 $ (331,827 ) $ — $ — $ — $ 99,051 $ 1,060,765 Lease liability 375,683 (103,069 ) (84 ) 32,034 — — 304,564 Dividends payable — (110,438 ) — — — — (110,438 ) Total liabilities from financing activities $ 1,669,224 $ (545,334 ) $ (84 ) $ 32,034 $ — $ 99,051 $ 1,254,891 The column “Leases” includes the non-cash right-of-use The “Concession Covid-19” For the year ended December 31, 2020 the column “Other” includes the recognition of the embedded derivative of the Notes recorded at its fair value at the inception of the transaction and the effect of accrued but not yet paid interest on loans and borrowings. For the year ended December 31, 2019, also includes the non-cash The Company classifies interest paid as cash flows from operating activities. |
Trade, other payables and finan
Trade, other payables and financial liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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Trade, other payables and financial liabilities | 19. Trade, other payables and financial liabilities 2020 2019 Account payables $ 63,461 $ 119,332 Account payables to related parties 2,970 14,086 66,431 133,418 Others 252 84 $66,683 $133,502 See details of the account due to related parties in note 23. |
Accrued expenses payable
Accrued expenses payable | 12 Months Ended |
Dec. 31, 2020 | |
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Accrued expenses payable | 20. Accrued expenses payable 2020 2019 Accruals and estimations $ 23,589 $ 4,616 Labor related provisions 6,541 44,401 Liability for social security contributions 3,275 5,617 Other 590 739 $33,995 $55,373 As of December 31, 2020 and 2019, accruals and estimations include the estimated balance of the current portion of the long term provisions (see note 21). Labor related provisions include a profit-sharing program for both management and non-management non-management year-end |
Other long-term liabilities
Other long-term liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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Other long-term liabilities | 21. Other long-term liabilities Provision Provision for Dismantling Other long-term Total Balance at January 1, 2020 $ 12,961 $ 133,014 $ 24,327 $ 25,535 $ 195,837 Increases 59 41,051 — 685 41,795 Used — — — (4,047 ) (4,047 ) Adjustment — — (178 ) — (178 ) Effect of movements in exchange rates (2,108 ) — — — (2,108 ) Unused amounts reversed (990 ) — — — (990 ) Unwinding of discount and changes in the discount rate — 8,773 832 — 9,605 Balance at December 31, 2020 $ 9,922 $ 182,838 $ 24,981 $ 22,173 $ 239,914 Current — 17,283 1,931 4,375 23,589 Non-current 9,922 165,555 23,050 17,798 216,325 $ 9,922 $ 182,838 $ 24,981 $ 22,173 $ 239,914 Provision for litigation Provisions for litigation in process and expected payments related to labor legal cases. The Company is the plaintiff in an action in October 2003 against Empresa Brasileira de Infraestrutura Aeroportuária (“INFRAERO”), Brazil’s airport operator, the legality of the Additional Airport Tariffs ( Adicional das Tarifas Aeroportuárias In the event that the Company receives a final unfavorable judgment it will be required to release the escrowed fund to INFRAERO and will not be able to recover such amounts. The Company does not, however, expect the release of such amounts to have a material impact on its financial results since these amounts already had been expensed. Provision for return condition For operating leases, the Company is contractually obliged to return aircraft in an agreed-upon condition. The Company accrues for return conditions related to aircraft held under operating leases throughout the duration of the lease. As of December 31, 2020, the estimated balance of the current portion of this provision amounts to $17.4 million, presented as “Accrued expenses payable” in the consolidated statement of financial position (see note 20). The unwinding of the discount and changes in the discount rate is expensed as incurred and recognized in the statement of profit or loss as a finance cost. Dismantling provision For leases under IFRS 16 the Company recognizes a dismantling provision to estimate the costs for work required to be performed just before the redelivery of the aircraft to the lessors and which does not depend of the aircraft utilization. As of December 31, 2020, the estimated balance of the current portion of this provision amounts to $1.9 million, presented as “Accrued expenses payable” in the consolidated statement of financial position (see note 20). Other long-term liabilities Other long-term liabilities include principally the provision for maintenance which mainly include the accrual of formal agreements with third parties for operational maintenance events. The cost of these agreements is billed by power by the hour and charged to the consolidated statement of profit or loss. As of December 31, 2020, the provision for maintenance amounts to $19.0 million (2019: $22.4 million) and the Company has presented the estimated balance of the current portion of this provision as “Accrued expenses payable” in the consolidated statement of financial position (see note 20). Other long-term liabilities also include the provision for the non-compete Employee benefits |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
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Income taxes | 22. Income taxes 2020 2019 2018 Current taxes expense - Current period $ (14,032 ) $ (55,847 ) $ (35,258 ) Adjustment for prior period 162 693 261 $(13,870) $(55,154) $(34,997) Deferred taxes expenses - Origination and reversal of temporary differences 37,587 8,717 467 Total income tax $ 23,717 $ (46,437 ) $ (34,530 ) During the year 2018, the deferred tax balances have been re-measured The balances of deferred taxes are as follows: Statement of financial Statement of profit or loss 2020 2019 2020 2019 2018 Deferred tax liabilities Maintenance deposits $ (23,891 ) $ (29,863 ) $ (5,972 ) $ — $ 3,277 Prepaid dividend tax — (7,403 ) (7,403 ) (1,456 ) (5,244 ) Property and equipment 2,108 (2,896 ) (5,004 ) (4,500 ) (2,136 ) Other (1,500 ) (4,690 ) (3,190 ) (1 ) 641 Set off tax 1,093 1,455 362 414 (63 ) $ (22,190 ) $ (43,397 ) $ (21,207 ) $ (5,543 ) $ (3,525 ) Deferred tax assets Provision for return conditions $ 12,665 $ 10,095 $ (2,570 ) $ (2,959 ) $ 723 Air traffic liability 2,486 2,039 (447 ) (247 ) (511 ) Other provisions 624 6,826 6,202 (2,139 ) (271 ) Tax loss 20,913 1,710 (19,203 ) 2,585 3,054 Set off tax (1,093 ) (1,455 ) (362 ) (414 ) 63 $ 35,595 $ 19,215 $ (16,380 ) $ (3,174 ) $ 3,058 $ 13,405 $ (24,182 ) $ (37,587 ) $ (8,717 ) $ (467 ) At December 31, 2020 the deferred tax assets include tax losses carried forward of $11.8 million in Copa Airlines and $9.1 million in Copa Colombia ($1.7 million at December 2019). The Company has concluded that the deferred assets will be recoverable using the estimated future taxable income based on the approved business plans for the subsidiary. The Company expects to use the tax losses of Copa Airlines from 2023 for 3 years and the tax losses of Copa Colombia within the next 7 years beginning from 2022. At December 31, 2020 the company does not have aggregate amount of temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized for the tax losses of the year (2019: $272.5 million). Reconciliation of the effective tax rate is as follows: Tax rate 2020 Tax rate 2019 Tax rate 2018 Net income $ (607,062 ) $ 247,002 $ 88,198 Total income tax expense (23,717 ) 46,437 34,530 Profit excluding income tax (630,779 ) 293,439 122,728 Income taxes at Panamanian statutory rates 25.0 % (157,695 ) 25.0 % 73,360 25.0 % 30,682 Stations - Taxable / Panama (13.2 %) 83,071 (13.7 %) (40,205 ) (19.3 %) (23,745 ) Stations - Taxable / Non Panama (1.5 %) 9,850 2.4 % 7,043 9.0 % 11,052 Stations - Non Taxable / Non Panama (5.3 %) 33,728 (4.9 %) (14,444 ) 3.3 % 4,106 Dividend tax (1.2 %) 7,491 7.2 % 21,376 10.3 % 12,696 (Over) under provided in prior periods 0.0 % (162 ) (0.2 %) (693 ) (0.2 %) (261 ) Provision for income taxes 3.8 % $ (23,717 ) 15.8 % $ 46,437 28.1 % $ 34,530 |
Accounts and transactions with
Accounts and transactions with related parties | 12 Months Ended |
Dec. 31, 2020 | |
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Accounts and transactions with related parties | 23. Accounts and transactions with related parties 2020 2019 Account receivable - Banco General, S.A. $ 1,231 $ 24 Panama Air Cargo Terminal 186 101 Petróleos Delta, S.A. 12 22 $ 1,429 $ 147 Account payable - Petróleos Delta, S.A. $ 2,476 $ 13,330 Assa Compañía de Seguros, S.A. 358 283 Desarrollos Inmobiliarios del Este, S.A. 51 20 Panama Air Cargo Terminal 40 250 Galindo, Arias & López 36 — Cable Onda, S.A. 9 20 Banco General, S.A. — 151 Motta International, S.A. — 32 $2,970 $14,086 Transactions with related parties for the year ended December 31 are as follows: Amount of Amount of Amount of Related party Transaction 2020 2019 2018 Petróleos Delta, S.A. Purchase of jet fuel $ 102,702 $ 376,765 $ 398,733 ASSA Compañía de Seguros, S.A. Insurance 7,147 11,215 9,735 Desarrollo Inmobiliario del Este, S.A. Property leasing 3,301 4,017 3,838 Profuturo Administradora de Fondos de Pensión y Cesantía Payments 2,839 5,145 4,716 Panama Air Cargo Terminal Handling 2,037 3,522 5,849 Motta International Purchase 550 1,854 1,585 Cable Onda, S.A. Communications 703 1,396 1,687 Galindo, Arias & López Legal services 236 309 490 GBM International, Inc. Technological support 146 240 231 Global Brands, S.A. Purchase 31 108 55 Televisora Nacional, S.A. Communications 13 — — Banco General, S.A. Interest income $ (2,657 ) $ (4,181 ) $ (3,781 ) Banco General, S.A.: . Petróleos Delta, S.A.: While the Company’s controlling shareholders do not hold a controlling equity interest in Petróleos Delta, S.A., various members of the Company’s Board of Directors are also board members of Petróleos Delta, S. A. ASSA Compañía de Seguros, S. A.: . Desarrollo Inmobiliario del Este, S. A.: Panama Air Cargo Terminal: Motta Internacional, S.A. & Global Brands, S. A.: Cable Onda, S.A.: Galindo, Arias & López: GBM International, Inc.: Televisora Nacional, S.A.: . Compensation of key management personnel Key management personnel compensation is as follows: 2020 2019 2018 Short-term employee benefits $ 3,177 $ 4,969 $ 6,104 Post-employment pension 61 95 117 Share-based payments 2,362 3,246 5,092 $5,600 $8,310 $11,313 The Company has not set aside any additional funds for future payments to executive officers, other than one pursuant to a non-compete |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
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Equity | 24. Equity Common stock The authorized capital stock consists of 80 million shares of common stock without par value, divided into Class A shares, Class B shares, and Class C shares. As of December 31, 2020, the Company had 33,861,872 Class A shares issued (2019: 33,835,747) and 31,421,265 shares outstanding (2019: 31,337,856), 10,938,125 Class B shares issued and outstanding (2019: 10,938,125) and no Class C shares outstanding. Class A and Class B shares have the same economic rights and privileges, including the right to receive dividends. • Class A shares The holders of the Class A shares are not entitled to vote at our shareholders’ meetings, except in connection with the following specific matters: (i) a transformation of the Company into another corporate type; (ii) a merger, consolidation, or spin-off • Class B shares Every holder of Class B shares is entitled to one vote per share on all matters for which shareholders are entitled to vote. The Class B shares may only be held by Panamanians, and upon registration of any transfer of a Class B share to a holder that does not certify that it is Panamanian, such Class B share shall automatically convert into a Class A share. Transferees of Class B shares will be required to deliver to the Company a written certification of their status as Panamanian as a condition to registering the transfer to them of Class B shares. • Class C shares The Independent Directors Committee of the Board of Directors, or the Board of Directors as a whole if applicable, is authorized to issue Class C shares to the Class B holders pro rata in proportion to such Class B holders’ ownership of Copa Holdings. The Class C shares will have no economic value and will not be transferable except to Class B holders, but will possess such voting rights as the Independent Directors Committee shall deem necessary to ensure the effective control of the Company by Panamanians. The Class C shares will be redeemable by the Company at such time as the Independent Directors Committee determines that such a triggering event shall no longer be in effect. The Class C shares will not be entitled to any dividends or any other economic rights. Class A shares are listed on the NYSE under the symbol “CPA.” The Class B shares and Class C shares will not be listed on any stock exchange unless the Board of Directors determines that it is in the best interest of the Company to list the Class B shares on the Panama Stock Exchange. Dividends The payment of dividends on shares is subject to the discretion of the Board of Directors. Under Panamanian law, the Company may pay dividends only out of retained earnings and capital surplus. The Articles of Incorporation provides that all dividends declared by the Board of Directors will be paid equally with respect to all of the Class A and Class B shares. In February 2016, the Board of Directors of the Company approved to change the dividend policy to base the calculation of the payment of yearly dividends to shareholders in an amount of up to 40% of the prior year’s annual consolidated underlying net income, distributed in equal quarterly installments upon board ratifications. During the first quarter of 2020, the Company paid dividends in the amount of $80 cents per share. Given the uncertainty related to the Covid-19 In 2019, the Company paid quarterly dividends in the amount of $65 cents per share. Treasury stock When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable cost net of any tax effects, is recognized as a deduction from equity and presented separately in the balance sheet. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is presented within share premium. Since treasury stock is not considered outstanding for share count purposes, it is excluded from average common shares outstanding for basic and diluted earnings per share. In November, 2014, the Board of Directors of the Company approved a $250 million share repurchase program. Purchases will be made from time to time, subject to market and economic conditions, applicable legal requirements, and other relevant factors. Between November 2014 and September 2015, the Company repurchased 2,310,492 shares for a total amount of $136.4 million. As of December 31, 2019, the Company had $113.6 million remaining to purchase shares under its share repurchase program. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2020 | |
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Share-based payments | 25. Share-based payments The Company has established equity compensation plans under which it administers restricted stock, stock options, and certain other equity-based awards to attract, retain, and motivate executive officers, certain key employees, and non-employee The Company’s equity compensation plans are accounted for under IFRS 2 Share-Based Payment The total compensation cost recognized for non-vested Non-vested The Company approved a non-vested A summary of the terms and conditions, properly approved by the Compensation Committee of our Board of Directors, relating to the grants of the non-vested Grant date Number of Vesting conditions Contractual April, 2015 4,915 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years June, 2015 5,839 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years February, 2016 147,000 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years February, 2016 63,000 Fifth anniversary 5 years May, 2016 7,899 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years February, 2017 22,012 One-third 3 years February, 2017 11,980 One-third 3 years February, 2017 2,237 Third anniversary 3 years February, 2018 21,556 7% first month 31% first three anniversaries 3 years February, 2018 14,379 33% first three anniversaries 3 years February, 2018 1,316 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years July, 2018 6,104 Third anniversary 3 years February, 2019 15,951 1% first month 33% first three anniversaries 3 years June, 2019 9,256 33% first three anniversaries 3 years June, 2019 977 33% first three anniversaries 3 years August, 2019 1,039 33% first three anniversaries 3 years December, 2019 1,724 100% first anniversary 1 year February, 2020 24,650 1% first month 33% first three anniversaries 3 years December, 2020 3,551 100% first anniversary 1 year Non-vested non-vested A summary of the non-vested 2020 2019 2018 Non-vested 211,205 271,904 304,153 Granted 28,201 28,947 43,355 Vested (83,409 ) (80,170 ) (72,045 ) Forfeited (2,076 ) (9,476 ) (3,559 ) Non-vested 153,921 211,205 271,904 The Company uses the accelerated attribution method to recognize the compensation cost for awards with graded vesting periods. The Company estimates that the remaining compensation cost, not yet recognized for the non-vested The Company plans to make additional equity-based awards under the plan from time to time, including additional non-vested non-vested ten-year |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
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Earnings per share | 26. Earnings per share Basic earnings per share amounts are calculated by dividing the net profit (loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of shares outstanding during the year, increased by the number of non-vested Diluted earnings per share amounts are calculated by dividing the net profit (loss) attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares, when the effect of their inclusion is dilutive (decreases earnings per share or increases loss per share). The computation of the (losses) income and share data used in the basic and diluted (loss) earnings per share is as follows: 2020 2019 2018 Basic earnings per share - Net (loss) income $ (607,062 ) $ 247,002 $ 88,198 Weighted-average shares outstanding 42,338 42,258 42,182 Non-vested 170 225 274 42,508 42,483 42,456 (14.28 ) 5.81 2.08 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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Commitments and contingencies | 27. Commitments and contingencies Purchase contracts As of December 31, 2020, the Company had one purchase contract with Boeing entailing sixty- (60) firm orders of Boeing 737 MAX aircraft, agreed to be delivered between 2021 and 2027. The aircraft and engines contractual obligations net of discounts and pre-delivery Year ending December 31, 2021 560,914 2022 201,544 2023 408,145 2024 439,433 2025 514,549 Thereafter 850,823 $2,975,408 As of December 31,2020 the Company has paid $410.9 million (2019: $468.8 million) in predelivery deposits related to the purchase contract with Boeing for the 737 MAX aircraft. From March 2019 to November 18, 2020, the Federal Aviation Administration (FAA) grounded all U.S. registered Boeing 737 MAX aircraft an action that was followed by most of the world’s aviation regulators, including Panamanian aviation regulators. As a consequence, during February 2021, the Company has reached an agreement with Boeing regarding compensation related to the damages that it has suffered during this period. Terms remain confidential (see note 29). Labor unions Approximately 66.3% of the Company’s 5,667 employees are unionized. There are currently nine (9) union organizations, five (5) covering employees in Panama and four (4) covering employees in Colombia. The Company traditionally had good relations with its employees and with all the unions and expects to continue to enjoy good relations with its employees and the unions in the future. The five (5) unions covering employees in Panama include the pilots’ union (UNPAC); the flight attendants’ union (SIPANAB); the mechanics’ union (SITECMAP), the industry union (SIELAS), which represents ground personnel, messengers, drivers, passenger service agents, counter agents, and other non-executive Copa entered into collective bargaining agreements with the pilot’s union in July 2017, the industry union in December 2017, the mechanics’ union in June 2018 and the flight attendants’ union in October 2018. Copa does not have a collective bargain agreement negotiated with UGETRACA because they do not have the eligible amount of employees. Collective bargaining agreements in Panama typically have terms of four years. The four (4) unions covering employees in Colombia are: the pilots’ union (ACDAC), the flight attendants’ union (ACAV), the industry union (SINTRATAC), and the Mechanics Union (ACMA), approximately 39.0% of the Company’s 418 employees are unionized. Copa entered into collective bargaining with ACDAC and ACAV in January 2018. ACDAC has not yet resolved and ACAV ended with a new arbitration collective document for two years that expired in September 2020. This new arbitration was authomatically extended until March 2021. Additionally, SINTRATAC and Copa entered into collective bargaining agreement in December 2017 for terms of four years until December 2021. Negotiations with ACMA were resolved by arbitration on December 31, 2015, extending the validation every 6 months from this date, until June 30, 2018. ACMA has not presented a new bill of petition. Typically, collective bargaining agreements in Colombia have terms of two to three years. Although Copa Colombia usually settles many of its collective bargaining agreement negotiations through arbitration proceedings, it has traditionally experienced good relations with its unions. In addition to unions in Panama and Colombia, the Company’s employees in Brazil are covered by industry union agreements that cover all airline industry employees in the country and airport employees in Argentina are affiliated to an industry union (UPADEP). Lines of credit for working capital and letters of credit The Company maintained letters of credit with several banks with a value of $44.3 million as of December 31, 2020 (2019: $25.8 million). These letters of credit are pledged mainly for International Air Transport Association (IATA) settlement systems, operating lessors, maintenance providers and airport operators. The Company has committed unsecured credit facilities of $200.0 million, currently undrawn. In addition, the Company closed a secured revolving credit facility for an initial aggregate amount of $105.0 million. Including this facility, the Company has $305.0 million in unutilized committed credit facilities as of December 31, 2020 (2019: $305.0 million). These credit facilities have been put in place for contingency and working capital purposes. Tax audit The Company received notifications from the tax authorities in Panama on February 2020 and in Colombia on November 2020 and March 2016. The Company, along with its tax advisors, has concluded that it is not probable that an outflow of resources embodying economic benefits will be required to settle them, especially considering that the Company has enough arguments to support its position and also taking into consideration that both cases are in the preliminary stages. In February 2020, the Company received two notifications from the tax authority in Panama related to a tax audit process that began in 2019. The notification includes potentially significant adjustments to the reported dividend tax for the years 2012 to 2016 and income tax 2016. The Company has filed an administrative appeal which is the first legal stage under Panamanian laws. The Company, along with its tax advisors, has concluded that is probable that the Company’s tax position will be upheld. As a result, is not probable that the Company will incur any significant additional tax as result. According to Panamanian laws, the statute of limitations is 3 and 15 years for income tax and dividend tax, respectively. |
Financial instruments - Risk ma
Financial instruments - Risk management and fair value | 12 Months Ended |
Dec. 31, 2020 | |
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Financial instruments - Risk management and fair value | 28. Financial instruments - Risk management and fair value In the normal course of its operations, the Company is exposed to a variety of financial risks: market risk (especially cash flow, currency, commodity prices and interest rate risk), credit risks and liquidity risk. The Company has established risk management policies to minimize potential adverse effects on the Company’s financial performance: 28.1 Fuel price risk The Company has risks that are common in its industry, related to the price level of aircraft fuel, which can significantly affect its operations, financial position and liquidity. In the past the Company has entered into financial derivative contracts in an effort to mitigate this risk, but with inconsistent results. The Company has not entered into new fuel hedge contracts, and has adopted a new strategy of remaining unhedged, while regularly reviewing its policies based on market conditions and others factors. As of December 31, 2020 and 2019 , the Company did not have any outstanding fuel hedge contracts. Fuel price risk is estimated as a hypothetical 10% increase in the December 31, 2020 cost per gallon of fuel. Based on projected 2021 fuel consumption, such an increase would result in an increase to aircraft fuel expense of approximately $21.3 million in 2021 (unaudited). There are no hedged contracts for 2021. 28.2 Market risk Foreign currency risk Foreign exchange risk is originated when the Company performs transactions and maintains monetary assets and liabilities in currencies that are different from the functional currency of the Company. Assets and liabilities in foreign currency are translated using the exchange rates at the end of the period, except for non-monetary The majority of the Company’s obligations are denominated in U.S. dollars. Since Panama uses the U.S. dollar as legal tender, the majority of the Company’s operating expenses are also denominated in U.S. dollars, approximately 65.7% of revenues and 86.0% of expenses. A significant part of our revenue is denominated in foreign currencies, including the Brazilian real, Colombian peso and Argentinian peso, which represented 9.5%, 9.1% and 4.0%, respectively (2019: 8.7%, 8.3% and 4.8% respectively). Generally, the Company’s exposure to most of these foreign currencies, is limited to the period of up to two weeks between the completion of a sale and the conversion to U.S. dollar. The following chart summarizes the Company’s foreign currency risk exposure (assets and liabilities denominated in foreign currency) as of December 31: 2020 2019 Assets Cash and cash equivalents $ 12,322 $ 22,818 Accounts receivable, net 27,670 73,018 Other assets 18,942 15,726 Total assets $ 58,934 $ 111,562 Liabilities Accounts payable 20,142 51,313 Taxes payable 13,757 37,137 Other liabilities 11,387 18,513 Total liabilities $ 45,286 $ 106,963 Net position $ 13,648 $ 4,599 From time to time the, Company enters into factoring agreements on receivables outstanding on credit card sales in certain countries. 28.3 Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities, including deposits with banks and investments in financial instruments and from its accounts receivable. IFRS 9 requires the Company to recognize an allowance for ECLs for all financial assets not held at fair value through profit or loss. The carrying amounts of financial assets represent the maximum credit risk. Short and long-term investments To mitigate the credit risk arising from deposits in bank, the Company only conducts business with financial institutions that have an investment grade above BBB- A- The Company has established a policy to perform an assessment, at the end of each quarterly reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by monitoring changes in credit risk ratings published by Standard & Poor’s. As the financial instruments are considered to be low risk, the impairment provision is determined at 12-month The movement in the allowance for impairment for short and long-term investments at amortized cost for the year ended December 31 was as follows: 2020 2019 Balance at beginning of year $ (957 ) $ (1,218 ) (Additions)/Reversal (260 ) 261 Balance at end of year $ (1,217 ) $ (957 ) Accounts receivable Regarding credit risk originating from commercial accounts receivable, the Company does not consider it significant since most of the accounts receivable can be easily converted into cash, usually in periods no longer than one month. The risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Specific credit limits and payment terms have been established according to periodic analysis of the client’s payment capacity. A considerable amount of the Company’s tickets sales are processed through major credit cards, resulting in accounts receivable that are generally short-term and usually collected before revenue is recognized. The Company considers that the credit risk associated with these accounts receivable is controllable based on the industry’s trends and strong policies and procedures established and followed by the Company. As a result of the previously explained, the Company evaluates the concentration of risk with respect to trade receivables as low. An impairment analysis is performed at each quarterly reporting date using a provision matrix to measure expected credit losses. Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to write-off. Loss rates are based on actual credit loss experience over the last 12 months and adjusted for forward-looking factors specific to the debtors and the economic environment over the expected life of the receivables. Although the Company evaluates the concentration of risk with respect to trade receivables as low, and its customers are located in several jurisdictions and operate in largely independent markets, some of them have been affected by Covid-19 Set out below is the information about the credit risk exposure on the Company’s trade receivables using a provision matrix as of December 31: 2020 Days past due Total Current <30 30-60 60-90 >90 Expected credit loss rate 0.0 % 0.1 % 2.5 % 3.7 % 41.5 % Gross carrying amount $ 72,172 $ 50,180 $ 3,554 $ 1,867 $ 1,228 $ 15,343 Expected credit loss $ 6,483 $ 20 $ 3 $ 46 $ 46 $ 6,368 2019 Days past due Total Current <30 30-60 60-90 >90 Expected credit loss rate 0.1 % 2.3 % 3.7 % 12.0 % 33.3 % Gross carrying amount $ 137,499 $ 111,778 $ 6,170 $ 2,786 $ 1,636 $ 15,129 Expected credit loss $ 5,579 $ 99 $ 141 $ 104 $ 196 $ 5,039 28.4 Interest rate and cash flow risk The income and operating cash flows of the Company are substantially independent of changes in interest rates, because the Company does not have significant assets that generate interest except for surplus cash and cash equivalents and short and long-term investments. Interest rate risk originates mainly from long-term debt related to aircraft financing. These long-term lease payments at variable interest rates expose the Company to cash flow risk. The Company mitigates this risk by entering into fixed rate financing agreements in at least half of its outstanding debt. As of December 31, 2020 and 2019, fixed interest rates range from 1.49% to 4.45%, and the main floating rate is LIBOR. The Company’s earnings are affected by changes in interest rates primarily due to the impact of those changes on interest expenses from variable-rate debt instruments. As of December 31st, 2020 we had $663.3 million of fixed-rated debt and $279.8 million of variable-rated debt. If the interest rate average is 100 basis points more in 2020, the variable-rate debt interest expense would increase by approximately $2.8 million and the estimated fair value of the fixed-rate debt would decreased– by approximately $1.5 million. These amounts are determined by considering the impact of the hypothetical interest rates on the variable-rate debt and marketable securities equivalent balances at December 31, 2020. 28.5 Liquidity risk The Company’s policy requires having sufficient cash to fulfill its obligations. The Company maintains sufficient cash on hand and in banks or cash equivalents that are highly liquid. The Company also has credit lines in financial institutions that allow it to withstand potential cash shortages to fulfill its short-term commitments (see note 27). The table below summarizes the Company’s financial liabilities according to their maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the impact of discounting is not significant. December 31, 2020 Note Carrying Contractual Less than Between 1 More than Non-derivative Loans and borrowings 18 $ 1,163,900 $ 1,287,203 $ 155,902 $ 834,145 $ 297,156 Lease liabitity 14 230,510 246,495 90,244 147,530 8,720 Account payable 19 63,461 63,461 63,461 — — Account payable to related parties 19 2,970 2,970 2,970 — — $1,460,841 $1,600,129 $312,577 $981,675 $305,876 December 31, 2019 Note Carrying Contractual Less than Between 1 More than Non-derivative Loans and borrowings 18 $ 1,060,765 $ 1,197,635 $ 146,434 $ 556,257 $ 494,944 Lease liabitity 14 304,564 329,029 107,556 212,408 9,065 Account payable 19 119,332 119,332 119,332 — — Account payable to related parties 19 14,086 14,086 14,086 — — $1,498,747 $1,660,082 $387,408 $768,665 $504,009 28.6 Fair value measurement Set out below is a comparison, by class, of the carrying amounts and fair values of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values: Carrying amount Fair Value Note 2020 2019 2020 2019 Financial assets Long-term investments 9 119,617 134,347 120,938 155,051 Financial liabilities Loans and borrowings 18 1,163,900 1,060,765 1,327,282 1,068,961 The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The management assessed that the fair values of cash and short-term investments, accounts receivables, account payable and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The following methods and assumptions were used to estimate the fair values: • Long-term investments in bonds are based on published price quotations in an active market at the reporting date. • Debt obligations, financial assets, and financial liabilities are estimated by discounting future cash flows using the Company’s current incremental borrowing for a similar liability. • Asset held for sale was determined considering observable quoted prices, in active markets adjusted by the costs to disposal estimated by the Company. • Derivative financial instruments is valued by the Company, using a Least Square Monte Carlo pricing method by modelling the different triggers under which the notes can be converted. The market data used to calibrate the model are historical volatility measures based on stock prices of the Company obtained from Bloomberg and a zero-coupon The following chart summarizes the Company’s financial instruments measured at fair value, classified according to the valuation method : Fair value measurement as of reporting date 2020 Quoted prices Significant Significant Non - recurring fair value measurements Assets Asset held for sale 135,542 — — 135,542 Total assets $ 135,542 $ — $ — $ 135,542 Recurring fair value measurements Liabilities Derivative financial instruments 245,560 — 245,560 — Total liabilities $ 245,560 $ — $ 245,560 $ — Company’s approach and the key assumptions used to determine the fair value less costs of disposal of the assets held for sale were as follows: Unobservable Value assigned Approach to determining key assumption Asset held for sale Sales price 145,399 Average of purchase proposals received Cost of disposal (9,857 ) Estimated based on the Company’s experience with disposal of similar assets. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Subsequent events | 29. Subsequent events Stock Grants During the first quarter of 2021, the Compensation Committee of the Company’s Board of Directors approved two awards. Awards under these plans will grant approximately 136,654 shares of non-vested Compensation Boeing During the first quarter of 2021, the Company reached an agreement with Boeing regarding compensation related to the Boeing 737 MAX grounding. As part of the agreement, the Company will receive compensation in the form of certain credits concurrent with future aircraft deliveries and other considerations, including a revised delivery stream. The updated aircraft contractual obligations net of discounts and pre-delivery Year ending December 31, 2021 49,800 2022 187,882 2023 383,231 2024 421,271 2025 487,348 Thereafter 1,893,442 $3,422,974 During the first quarter of 2021, six Boeing 737 MAX aircraft were delivered. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Basis of consolidation | (a) Basis of consolidation These consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Control is achieved when the Company is exposed to, or has right to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls the investee, when it has: • power over the investee, • exposure, or rights to, variable returns from its involvement with the investee, and • the ability to use its power over the investee to affect its returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany balances, transactions, and dividends are eliminated in full. The following are the significant subsidiaries included in these financial statements: Name Country of Incorporation Ownership 2020 2019 Copa Airlines Panama 99.9 % 99.9 % Copa Colombia Colombia 99.9 % 99.9 % Oval British Virgin Islands 100 % 100 % |
Current versus non-current classification | (b) Current versus non-current The Company presents assets and liabilities in the statement of financial position based on current/non-current An asset is current when it is: • expected to be realized or intended to be sold or consumed in the normal operating cycle • expected to be realized within twelve months after the reporting period, or • cash or cash equivalent, unless restricted. All other assets are classified as non-current. A liability is current when: • it is expected to be settled in the normal operating cycle • it is due to be settled within twelve months after the reporting period, or • there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current |
Foreign currencies | (c) Foreign currencies The Company’s consolidated financial statements are presented in U.S. dollars, which is the Company’s functional currency. The Company determines the functional currency for each entity, and the items included in the financial statements of each entity are measured using that functional currency. Transactions and balances Transactions in foreign currencies are initially recorded by the Company at the respective functional currency spot rates on the date when the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot exchange rate at the reporting date. Non-monetary Foreign exchange gains and losses are included in the exchange rate difference line in the consolidated statement of profit or loss for the year. |
Revenue recognition | (d) Revenue recognition Revenue is recognized when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The consideration received or receivable is measured taking into account contractually defined terms of payment and excluding taxes or duties. The following specific recognition criteria must also be met before revenue is recognized: Passenger revenue Passenger revenue is primarily composed of passenger ticket sales, frequent flyer miles redeemed and ancillaries revenues associated with a passenger’s flight. • Passenger tickets Passenger revenue from tickets is recognized when transportation is provided rather than when a ticket is sold. The amount of passenger ticket sales, not yet recognized as revenue, is reflected under “Air traffic liability” in the consolidated statement of financial position. Refundable and nonrefundable tickets expire after one year from the date of issuance. In addition, revenue is recognized for tickets that are expected not to be used, the Company performs a monthly liability evaluation using its historical experience with refundable and nonrefundable expired tickets and other facts. A year after the sale is made, actual ticket breakage is removed from “Air Traffic liability” and the provision is reversed. Typically, unused tickets expire after one year, and any revenue associated with tickets sold for future travel is recognized within 12 months. In response to Covid-19, The Company sells certain tickets with connecting flights with one or more segments operated by its other airline partners. For segments operated by other airline partners, the Company has determined that it is acting as an agent on behalf of the other airlines as they are responsible for their portion of the contract. The Company, as the agent, reduces its “Air traffic liability” when consideration is remitted to those airlines, and recognizes revenue for the net amount representing commission to be retained by the Company for any segments flown by other airlines. Denied boarding compensation made to customers for voluntarily or involuntarily denied boarding reduces revenue when the voucher is issued to the passenger. • Frequent flyer program The Company’s frequent flyer program objective, is to reward customer loyalty. Members in this program earn miles for travel on Copa Airlines, Star Alliance partners’ airlines and also by purchasing the goods and services of the Company network of non-airline co-branded Passenger revenue includes flights redeemed under our frequent flyer program. When a passenger elects to receive Copa’s frequent flyer miles in connection with a flight, the Company recognizes a portion of the tickets sale as revenue when the air transportation is provided and recognizes a deferred liability (Frequent flyer deferred revenue) for the portion of the ticket sale representing the value of the related miles as a separate performance obligation. To determine the amount of revenue to be deferred, the Company estimates and allocates the fair value of the miles that were essentially sold along with the airfare, based on a weighted average ticket value, which incorporates the expected redemption of miles including factors such as redemption pattern, cabin class and geographic region. A statistical model that estimates the percentages of points that will not be redeemed before expiration is used to estimate breakage. The breakage and the fair value of the miles are reviewed at least annually, and any adjustments are reflected on a prospective basis to passenger revenues. The Company calculates the short and long-term portion of the frequent flyer deferred revenue, using a model that includes estimates based on the members´ redemption rates projected by management due to clients’ behavior. Currently, when a member of another carrier frequent flyer program redeems miles on a Copa Airlines flight, those carriers pay to the Company a per mile rate. The rates paid by them depend on the class of service, the flight length, and the availability of the reward and is included in passenger revenues. • Ancillaries revenues Primarily composed of services performed in conjunction with a passenger’s flight, including administrative fees (such as ticket change fees), baggage fees, and other ticket-related fees. These ancillary fees are part of the travel performance obligation and, as such, are recognized as passenger revenue when the travel occurs. Cargo and mail revenue Cargo and mail revenue is recognized when the Company provides and completes the shipping services as requested by the client and the risks on the merchandise and goods are transferred. Other operating revenue Other operating revenue includes revenue associated with the marketing component of the frequent flyer program. This revenue is comprised of the marketing component of mileage sales to co-branded The Company sells miles to non-airline co-branded The remaining amounts included within other revenue are related to lease income, advertising and vacation-related services. |
Cash and cash equivalents | (e) Cash and cash equivalents Cash and cash equivalents in the statement of financial position, comprise cash on hand and in banks, money market accounts, and time deposits with original maturities of three months or less from the date of purchase. The Company evaluates the term and conditions relating to its restricted cash to determine where it should be presented, as current assets in cash and cash equivalents or as non-current For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash net of outstanding bank overdrafts, if any. The Company has elected to present the statement of cash flows using the indirect method. |
Financial instruments | (f) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets The Company’s financial assets include cash and cash equivalents, short and long-term investments and accounts receivable. (i) Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial assets contractual cash flow characteristics and the Company’s business model for managing them. With the exception of accounts receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Accounts receivable that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price. In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest’ (SPPI) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. All financial assets are recognized on the trade date, which is the date on which the Company becomes a party to the contractual provisions of an instrument. (ii) Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: • Financial assets at amortized cost (debt instruments) • Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) • Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) • Financial assets at fair value through profit or loss Financial assets at amortized cost This category is the most relevant to the Company. The Company measures financial assets at amortized cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Company’s financial assets at amortized cost includes the Company’s investments and its receivables. The Company invests in short-term deposits and bonds with original maturities of more than three months but less than one year, and invests in long-term deposits and bonds with maturities greater than one year. These investments are classified as short and long-term investments, respectively, in the accompanying consolidated statement of financial position. Accounts receivable are non-derivative Financial assets at fair value through OCI The Company measures debt instruments at fair value through OCI if both of the following conditions are met: • The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. The Company currently does not have assets classified under this category. Financial assets designated at fair value through OCI Upon initial recognition, the Company may elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading instrument-by-instrument Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit or loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. The Company currently does not have assets classified under this category. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss. The Company currently does not have assets classified under this category. (iii) Derecognition A financial asset is derecognized when: • the rights to receive cash flows from the asset have expired, or • the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement, and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates, if and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. (iv) Impairment of financial assets The Company recognizes an allowance for expected credit losses (ECLs) on financial asset measured at amortized cost. Loss allowance for financial assets are deducted from the gross carrying amount on the assets. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months 12-month Both, lifetime ECLs and 12-month The Company has established a policy to perform an assessment, at the end of each quarterly reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. For accounts receivables the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each quarterly reporting date. The Company has established a provision matrix to measure ECLs. Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to write-off. Loss rates are based on actual credit loss experience over the last 12 months and adjusted for forward-looking factors specific to the debtors and the economic environment over the expected life of the receivables. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. The Company considers that there are no realistic prospects of recovery of the asset if any of the following indicators are present: • the debtor is in a state of permanent disability • the Company has exhausted all legal and/or administrative recourse • where the account exceeds one year without decreases • when there are no documents that establishing the debt Losses arising from impairment are recognized under “Other operating and administrative expenses” in the consolidated statement of profit or loss. Financial liabilities (i) Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables and loans and borrowings including bank overdrafts, and derivative financial instruments. (ii) Subsequent measurement For purposes of subsequent measurement, financial liabilities are classified in two categories: • Financial liabilities at fair value through profit or loss • Financial liabilities at amortized cost (loans and borrowings) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. Financial liabilities at amortized cost (loans and borrowings) Subsequent to initial recognition, all borrowings and loans are measured at amortized cost using the EIR method. Gains and losses are recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included under finance cost in the consolidated statement of profit or loss. (iii) Derecognition Financial liabilities are derecognized when the obligation under the liability is discharged, cancelled, or expire. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statement of profit or loss. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, the Company has a legally enforceable right to set off the recognized amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the ordinary course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty. Derivative financial instruments and hedging activities Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair value. Derivatives are carried as financial assets when the fair value results in a right to the Company and as financial liabilities when the fair value results in an obligation. The accounting for changes in value depends on whether the derivative is designated as a hedging instrument, and if so, the classification of the hedge. For hedge accounting purposes, hedges are classified into: • Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment • Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment • Hedges of a net investment in a foreign operation. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements. A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements: • There is ‘an economic relationship’ between the hedged item and the hedging instrument. • The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship. • The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Company actually hedges and the quantity of the hedging instrument that the Company actually uses to hedge that quantity of hedged item. As of December 31, 2020 and 2019, the Company does not have financial instruments designated under hedge accounting. |
Impairment of non - financial assets | (g) Impairment of non - financial assets The Company assesses at each reporting date whether there is an indication that an asset or its cash-generating unit (CGU) may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s or CGU’s recoverable amount. The recoverable amount is the higher of an asset’s or its CGU’s fair value less costs to sell and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax Impairment losses of continuing operations, including impairment on inventories, are recognized under “Impairment of non-financial For assets, excluding goodwill, an assessment is made at each reporting date to determine whether there is any indication that previously recognized impairment losses no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss. |
Senior convertible notes | (h) Senior convertible notes Senior convertible notes are classified as hybrid instruments that comprises a debt host contract for the interest and principal payments plus a derivative instrument for the conversion option. The initial carrying amount of the non-derivative non-derivative After initial recognition, the debt host contract would be measured at amortized cost and the derivative liability, not being closely related to the debt host contract, would be measured at fair value through profit or loss. |
Expendable parts and supplies | (i) Expendable parts and supplies Expendable parts and supplies for flight equipment are carried at the lower of the average acquisition cost or replacement cost, and are expensed when used in operations. The replacement cost is the estimated purchase price in the ordinary course of business. |
Passenger traffic commissions | (j) Passenger traffic commissions Passenger traffic commissions are recognized as expense when transportation is provided and the related revenue is recognized. Passenger traffic commissions paid but not yet recognized as expense are included under “Prepaid expenses” in the accompanying consolidated statement of financial position. |
Property and equipment | (k) Property and equipment Property and equipment comprise mainly airframe, engines, and other related flight equipment. All property and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. When a major maintenance inspection or overhaul cost is embedded in the initial purchase cost of an aircraft, the Company estimates the carrying amount of the component. These initial built-in The Company recognizes the depreciation on a straight-line basis which for some aircraft components is akin to depreciation based on use, over the estimated useful life of the assets. Depreciation is recognized in the consolidated statement of profit or loss from the date the property, and equipment is installed and ready for use. Property and equipment Estimate useful life (years) Residual Value Flight equipment (*) Airframe and engines 27 15% Major maintenance events 3-16 — Ramp and miscellaneous Ground equipment 10 — Furniture, fixture, equipment and other 5-10 — Leasehold improvements Lesser of remaining lease term and estimated useful — (*) Excluding the Embraer 190 and 737-700 An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized. The costs of major maintenance events for leased aircraft are capitalized and depreciated over the shorter of the scheduled usage period to the next major inspection event or the remaining life of lease term (as appropriate), the remaining value of the previously capitalized maintenance or the right-of-use The residual values, useful lives, and methods of depreciation of property and equipment are reviewed at each financial year-end The land owned by the Company is recognized at cost less any accumulated impairment. |
Leases | (l) Leases At inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract, conveys the right to control the use of an identified asset, the Company assesses whether: • The Company has the right to obtain substantially all of the economic benefits from use of the identified asset; and • The Company has the right to direct the use of the identified asset. The Company as a lessee At the commencement date, the Company recognizes a ROU and a lease liability. The ROU is measured at cost and comprises: • the amount of the initial measurement of the lease liability, • any lease payments made at or before the commencement date, less any lease incentives received; • any initial direct costs incurred by the lessee; and • an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The Company incurs the obligation for those costs either at the commencement date or as a consequence of having used the underlying asset during a particular period. The ROU is subsequently depreciated using the straight line method from the commencement date to the earlier of the end of the useful life of the ROU or component, or lease term. The estimated useful life of ROU is determined of the same basis of owned property and equipment. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. The ROU assets are also subject to impairment. Refer to the accounting policies in section (g) impairment of non-financial In this regard, the Company applies the following, by class of underlying asset: • for the leases of real estate, the Company has elected to separate non-lease • for aircraft leases, the value of major maintenance inspection or overhaul embedded in the aircraft is recognized as a separated component and is depreciated over the estimated time period until the first maintenance event is performed or the remaining life of lease term (as appropriate) which ever is shorter. The lease liability, is initially measured at the present value of the lease payments that are not paid at that date, discounted using the interest rate implicit in the lease, if that rate can be readily determined or the lessee’s incremental borrowing rate. The lease payments included in the measurement of the lease liability comprise: • fixed payments (including in-substance • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable by the lessee under residual value guarantees; • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. Variable lease payments that do not depend on an index or a rate are recognized as lease expenses in the period in which the event or condition that triggers the payment occurs, under “Other operating and administrative expenses” in the consolidated statement of profit or loss. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, if there is a change in the Company’s estimated amount expected to be payable under a residual value guarantee or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the ROU, or is recorded in profit or loss if the carrying amount of ROU has been reduced to zero. Financing arrangements where is certain that the asset will be purchased at the end of the lease term, are “in substance purchases” and not leases, in those cases, the related liability is considered a financial liability under IFRS 9 and the asset, as property and equipment, according to IAS 16. The Company has elected not to recognize ROU and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term as “Other operating and administrative expenses” in the consolidated statement of profit or loss. The Company as lessor When assets are leased under operating leases, the asset is included in the consolidated statement of financial position according to its nature. Revenue from operating leases is recognized over the lease term on a straight-line basis as part of other operating revenue. Initial direct costs incurred by the Company in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as the related lease income. |
Intangible assets | (m) Intangible assets Goodwill Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed of the acquired subsidiary at the date of acquisition. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s CGU or group of CGU’s that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. Other intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and the expenditure is reflected in the consolidated statement of profit or loss in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over their useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite life is recognized in the consolidated statement of profit or loss as the expense category that is consistent with the function of the intangible assets. Intangible assets with indefinite useful life are not amortized but are tested for impairment at least annually, either individually or at the CGU level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Gains and losses arising from the derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the consolidated statement of profit or loss when the asset is derecognized. The Company’s intangible assets and the policies applied are summarized as follows: • Licenses and software rights Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized using the straight-line method over their estimated useful life (from three to eight years) and the amortization is recognized in the consolidated statement of profit or loss. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the production of identifiable and unique software products controlled by the Company and that are estimated to generate economic benefits exceeding costs beyond one year, are recognized as intangible assets. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. These costs are amortized using the straight-line method over their estimated useful life (from five to fifteen years). |
Taxes | (n) Taxes Income tax expense Income tax expense comprises current and deferred tax. It is recognized in profit or loss except when related to the items recognized directly in equity or in other comprehensive income (“OCI”). • Current income tax The Company pays taxes in the Republic of Panama and in other countries in which it operates, based on regulations in effect in each respective country. Revenue arises principally from foreign operations, and according to the Panamanian Tax Code, these foreign operations are not subject to income tax in Panama. The Panamanian tax code for the airline industry states that tax is based on net income earned for passenger traffic with origin or final destination in the Republic of Panama. The applicable tax rate is currently 25.0%. Dividends from the Panamanian subsidiaries, are separately subject to a 10% withholding tax on the portion attributable to Panamanian sourced income and a 5% withholding tax on the portion attributable to foreign sourced income. The Company is also subject to local tax regulations in each of the other jurisdictions where it operates, the great majority of which are related to income taxes. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions when appropriate. • Deferred tax Deferred tax is calculated using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized, except: • when the deferred tax asset relating to the deductible temporary difference arises from initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss. • in respect of deductible temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax liabilities are recognized for all taxable temporary differences, except: • when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss. • in respect of taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets and liabilitie s Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Ticket taxes The Company is required to charge certain taxes and fees on its passenger tickets. These taxes and fees include transportation taxes, airport passenger facility charges, and certain governmentally imposed airport arrival and departure taxes. These taxes and fees are legal assessments on the customer. Since the Company has a legal obligation to act as a collection agent with respect to these taxes and fees, such amounts are not included in passenger revenue. The Company records a liability when these amounts are collected and derecognizes the liability when payments are made to the applicable government agency or operating carrier. |
Borrowing costs | (o) Borrowing costs Borrowing costs directly attributable to the acquisition, construction, or production of any qualifying asset, that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of the asset during that period of time. Other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. |
Provisions | (p) Provisions Provisions for costs, including restitution, restructuring and legal claims and assessments are recognized when: • the Company has a present legal or constructive obligation as a result of past events; • it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and • the amount of obligation can be reliably estimated. For aircraft leases, the Company is contractually obliged to return the aircraft in a defined condition. The Company accrues a provision for return conditions which are based on the usage of leased aircraft throughout the duration of the lease. Return conditions are based on the net present value of the estimated costs of returning the aircraft and are recognized in the consolidated statement of profit or loss under “Maintenance, materials and repairs”. These costs are reviewed annually and adjustments, if any, are recognized prospectively over the remaining lease term. |
Employee benefits | (q) Employee benefits Defined benefit plan The Company sponsors a defined benefit plan, which requires contributions to be made to a separately administered fund. The calculation of the defined benefit obligation is performed annually by a qualified actuary using the projected unit credit actuarial cost method (PUC). Remeasurements of the net defined benefit liability, which comprises actuarial gains and losses, the return on plan assets and the effect of the asset ceiling (if any), are recognized immediately in other comprehensive income. The Company determines the net interest by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation in the consolidated statement of profit or loss. Share-based payments Employees (including senior executives) of the Company receive compensation in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is recognized, together with a corresponding increase in additional paid in capital in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. Expense or credit for a period represents the movement in cumulative expense recognized as of the beginning and end of that period and is recognized under “Wages, salaries, benefits and other employees’ expenses” expense in the consolidated statement of profit or loss (note 25). Termination benefits Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without realistic possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. |
Non-current assets held for sale and discontinued operations | (r) Non-current The Company classifies non-current Non-current The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification. Property and equipment and intangible assets are not depreciated or amortized once classified as held for sale. All the financial statements include amounts for continuing operations. Additional disclosures about assets held for sale are provided in note 13. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Significant Subsidiaries | The following are the significant subsidiaries included in these financial statements: Name Country of Incorporation Ownership 2020 2019 Copa Airlines Panama 99.9 % 99.9 % Copa Colombia Colombia 99.9 % 99.9 % Oval British Virgin Islands 100 % 100 % |
Estimated Useful Lives of Assets and Considering Residual Value | Property and equipment Estimate useful life (years) Residual Value Flight equipment (*) Airframe and engines 27 15% Major maintenance events 3-16 — Ramp and miscellaneous Ground equipment 10 — Furniture, fixture, equipment and other 5-10 — Leasehold improvements Lesser of remaining lease term and estimated useful — (*) Excluding the Embraer 190 and 737-700 |
Revenue from contract with cu_2
Revenue from contract with customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Disaggregated Operating Revenues | Operating revenues are comprised of passenger revenues, cargo and mail, and other operating revenues. The following table shows disaggregated operating revenues for the years ended as December 31, 2020, 2019 and 2018. 2020 2019 2018 Passenger revenue Passenger revenue $ 752,050 $ 2,581,179 $ 2,567,316 Miles redeemed 8,544 31,426 20,073 760,594 2,612,605 2,587,389 Cargo and mail revenue 21,002 62,460 62,483 Other operating revenue Frequent flyer program—marketing services 15,452 22,170 16,291 Other operating revenue 3,955 10,173 11,464 19,407 32,343 27,755 $ 801,003 $ 2,707,408 $ 2,677,627 |
Summary of Changes in Contract Liabilities | The table below presents the changes in air traffic liability: 2020 2019 Balance at beginning of year $ 497,374 $ 471,676 Sales 887,004 2,878,814 Revenue recognition (700,406 ) (2,355,626 ) Tax recognition (113,473 ) (404,732 ) Reimbursements (82,910 ) (45,396 ) Interline tickets (15,056 ) (35,272 ) Other (1,838 ) (12,090 ) Balance at end of year $ 470,695 $ 497,374 The table below presents the activity of the current and non-current 2020 2019 Balance at beginning of year $ 80,326 $ 67,814 Deferred of revenue 19,431 43,938 Recognition of revenue (8,544 ) (31,426 ) Balance at end of year $ 91,213 $ 80,326 Current 16,041 35,120 Non-current 75,172 45,206 $ 91,213 $ 80,326 |
Operating Revenue by Principal Geographic Area | Information concerning operating revenue by geographic area for the period ended December 31 is as follows: 2020 2019 2018 North America $ 233,039 $ 857,002 $ 826,529 South America 281,008 975,530 1,076,507 Central America 246,727 740,358 648,747 Caribbean 20,822 102,175 98,089 $ 781,596 $ 2,675,065 $ 2,649,872 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Cash and Cash Equivalents | 2020 2019 Checking and saving accounts $ 99,286 $ 118,367 Time deposits of no more than ninety days 19,500 40,000 Cash on hand 279 365 $ 119,065 $ 158,732 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Schedule of Information About Investments | 2020 2019 Current Non Current Total Current Non Current Total Time deposits $ 430,000 $ 80,000 $ 510,000 $ 640,500 $ 60,000 $ 700,500 Bonds 341,854 39,796 381,650 52,573 74,634 127,207 771,854 119,796 891,650 693,073 134,634 827,707 Allowance for expected credit losses (1,038 ) (179 ) (1,217 ) (670 ) (287 ) (957 ) $ 770,816 $ 119,617 $ 890,433 $ 692,403 $ 134,347 $ 826,750 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Disclosure of Accounts Receivable | 2020 2019 Credit cards $ 35,882 $ 64,595 Cargo and other travel agencies 10,052 19,389 Airlines and clearing house 6,156 31,087 Government 5,466 8,031 Trade receivables from related parties 1,429 147 Other 13,187 14,250 72,172 137,499 Allowance for expected credit losses (6,483 ) (5,579 ) $ 65,689 $ 131,920 Current 64,635 129,781 Non-current 1,054 2,139 $ 65,689 $ 131,920 |
Summary of Movements in the Allowance for Impairment in Respect of Account Receivables | The change in the allowance for expected credit losses in respect of accounts receivable during the year was as follows. 2020 2019 2018 Balance at beginning of year $ (5,579 ) $ (5,057 ) $ (3,673 ) Adjustment on initial application of IFRS 9 — — (624 ) Balance at beginning of year under IFRS 9 (5,579 ) (5,057 ) (4,297 ) Additions (1,310 ) (744 ) (1,311 ) Write-offs 406 222 551 Balance at end of year $ (6,483 ) $ (5,579 ) $ (5,057 ) |
Expendable parts and supplies (
Expendable parts and supplies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Disclosure of Expendable Parts and Supplies | 2020 2019 Material for repair and maintenance $ 69,737 $ 66,418 Other inventories 4,920 3,686 74,657 70,104 Allowance for obsolescence (338 ) (1,004 ) $ 74,319 $ 69,100 |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Detailed Information about Prepaid Expenses | 2020 2019 Prepaid taxes $ 10,022 $ 26,164 Prepaid commissions 3,908 4,298 Prepaid insurance 5,385 1,231 Prepaid to supplier 17,224 35,084 $ 36,539 $ 66,777 Current 30,473 49,034 Non-current 6,066 17,743 $ 36,539 $ 66,777 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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Summary of Property and Equipment | Land Flight Purchase Ramp and Furniture, Leasehold Construction Total Cost - Balance at January 1, 2018 $ 6,301 $ 3,252,229 $ 413,633 $ 48,353 $ 27,524 $ 50,043 $ 5,778 $ 3,803,861 Transfer of pre-delivery — 156,305 (156,305 ) — — — — — Additions — 228,302 216,732 5,434 3,773 3,388 10,795 468,424 Disposals — (20,737 ) — (128 ) (393 ) (6,246 ) (10 ) (27,514 ) Assets held for sale — (164,201 ) — — — — — (164,201 ) Reclassifications — (2,371 ) — 77 14 2,219 (2,310 ) (2,371 ) Balance at December 31, 2018 $ 6,301 $ 3,449,527 $ 474,060 $ 53,736 $ 30,918 $ 49,404 $ 14,253 $ 4,078,199 Transfer of pre-delivery — 78,143 (78,143 ) — — — — — Additions — 109,286 67,357 2,693 2,450 3,269 4,436 189,491 Disposals — (184,685 ) — (102 ) (570 ) (134 ) (340 ) (185,831 ) Assets held for sale — (413,677 ) — — — — — (413,677 ) Reclassifications — — — 10 — 12,752 (12,762 ) — Balance at December 31, 2019 $ 6,301 $ 3,038,594 $ 463,274 $ 56,337 $ 32,798 $ 65,291 $ 5,587 $ 3,668,182 Transfer of pre-delivery — 49,860 (49,860 ) — — — — — Additions — 39,492 — 582 221 566 3,204 44,065 Disposals — (34,626 ) — (306 ) (223 ) (780 ) — (35,935 ) Assets held for sale — (554,790 ) — — — — — (554,790 ) Reclassifications — 244 (5,600 ) — — 2,382 (2,626 ) (5,600 ) Balance at December 31, 2020 $ 6,301 $ 2,538,774 $ 407,814 $ 56,613 $ 32,796 $ 67,459 $ 6,165 $ 3,115,922 Accumulated depreciation and impairment - Balance at January 1, 2018 $ — $ (1,097,751 ) $ — $ (37,016 ) $ (22,959 ) $ (31,919 ) $ — $ (1,189,645 ) Depreciation for the year — (147,980 ) — (3,783 ) (2,506 ) (5,038 ) — (159,307 ) Disposals — 16,876 — 118 379 6,396 — 23,769 Assets held for sale — 75,556 — — — — — 75,556 Reclassifications — 268 — — — — — 268 Impairment — (130,709 ) — — — — — (130,709 ) Balance at December 31, 2018 $ — $ (1,283,740 ) $ — $ (40,681 ) $ (25,086 ) $ (30,561 ) $ — $ (1,380,068 ) Depreciation for the year — (148,832 ) — (3,292 ) (2,938 ) (5,757 ) — (160,819 ) Disposals — 178,168 — 102 518 — — 178,788 Assets held for sale — 226,319 — — — — — 226,319 Balance at December 31, 2019 $ — $ (1,028,085 ) $ — $ (43,871 ) $ (27,506 ) $ (36,318 ) $ — $ (1,135,780 ) Depreciation for the year — (126,988 ) — (3,121 ) (3,134 ) (5,759 ) — (139,002 ) Disposals — 32,335 — 290 179 295 — 33,099 Impairment — — — — — — (4 ) (4 ) Assets held for sale — 273,251 — — — — — 273,251 Balance at December 31, 2020 $ — $ (849,487 ) $ — $ (46,702 ) $ (30,461 ) $ (41,782 ) $ (4 ) $ (968,436 ) Carrying amounts - At December 31, 2018 $ 6,301 $ 2,165,787 $ 474,060 $ 13,055 $ 5,832 $ 18,843 $ 14,253 $ 2,698,131 At December 31, 2019 $ 6,301 $ 2,010,509 $ 463,274 $ 12,466 $ 5,292 $ 28,973 $ 5,587 $ 2,532,402 At December 31, 2020 $ 6,301 $ 1,689,287 $ 407,814 $ 9,911 $ 2,335 $ 25,677 $ 6,161 $ 2,147,486 |
Summary of assets held for sale | At 31 December 2020, the assets held for sale comprised the following assets: 2020 2019 Assets Flight equipment $ 129,443 $ 91,252 Expendables, spare parts and other supplies 6,099 28,754 $ 135,542 $ 120,006 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Right of use assets | Aircraft Real estate Total Balance at January 1, 2018 $ 350,517 $ 33,833 $ 384,350 Additions 83,389 1,381 84,770 Depreciation expense (100,857 ) (6,270 ) (107,127 ) Balance at December 31, 2018 $ 333,049 $ 28,944 $ 361,993 Additions 23,162 8,512 31,674 Depreciation expense (95,564 ) (7,260 ) (102,824 ) Balance at December 31, 2019 $ 260,647 $ 30,196 $ 290,843 Additions/(Terminations) 21,706 (1,888 ) 19,818 Impairment (1,541 ) — (1,541 ) Depreciation expense (88,451 ) (6,390 ) (94,841 ) Balance at December 31, 2020 $ 192,361 $ 21,918 $ 214,279 |
Lease liabilities | 2020 2019 Current portion of lease liability Aircraft $ 77,777 $ 91,246 Real estate 5,828 6,486 $ 83,605 $ 97,732 Long-term lease liability Aircraft $ 125,216 $ 179,031 Real estate 21,689 27,801 $ 146,905 $ 206,832 $ 230,510 $ 304,564 |
Disclosure Of Cash Flows For Leases | Total cash outflow for leases for the years ended as December 31, 2020 and 2019: 2020 2019 Aircraft $ 97,353 $ 107,610 Real estate 6,039 9,458 $ 103,392 $ 117,068 |
Disclosure Of Lease Expenses | Amounts recognized in the consolidated statement of profit or loss related to leases: 2020 2019 2018 Depreciation and amortization Aircraft $ 88,451 $ 95,564 $ 100,857 Real estate 6,390 7,260 6,270 $ 94,841 $ 102,824 $ 107,127 Impairment of non financial assets Aircraft $ 1,541 $ — $ — Other operating and administrative expenses Short-term leases $ 90 $ 364 $ 1,412 Leases of low-value 330 733 853 Variable lease payments not include in the measurement of lease liabilities 827 706 611 Variable lease payments by rental concessions received (489 ) — — $ 758 $ 1,803 $ 2,876 Finance cost Aircraft $ 8,185 $ 11,221 $ 12,074 Real estate 1,717 2,073 2,105 Unwinding of discount and changes in the discount rate 832 846 796 $ 10,734 $ 14,140 $ 14,975 $ 107,874 $ 118,767 $ 124,978 |
Schedule of Future Minimum Lease Receivables under Non-cancellable Leases | The future minimum lease receivables under non-cancellable 2020 2019 Up to one year $ 3,000 $ 3,220 One to five years 2,875 5,875 Total minimum lease rental receivables $ 5,875 $ 9,095 |
Net employee defined benefit (T
Net employee defined benefit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Employee Defined Benefit Plan | 2020 2019 Fair value of plan assets $ 25,783 $ 29,086 Defined benefit obligation (39,466 ) (28,195 ) Other employee benefits (649 ) (642 ) $ (40,115 ) $ (28,837 ) Benefit (liability) assets $ (14,332 ) $ 249 |
Summary of Components of Net Benefit Expense | The following table summarizes the components of net benefit expense included under “Wages, salaries, benefits and other employees´ expenses” in the accompanying consolidated statement of profit or loss: Year ended December 31,2020 Defined benefit Fair value of Defined benefit Current service cost $ 2,393 $ — $ 2,393 Interest cost on net benefit obligation 706 (731 ) (25 ) Past service cost 457 — 457 Curtailment / Settlement (2,026 ) — (2,026 ) Net benefit expense $ 1,530 $ (731 ) $ 799 Year ended December 31,2019 Defined benefit Fair value of Defined benefit Current service cost 2,192 — 2,192 Interest cost on net benefit obligation 887 (979 ) (92 ) Net benefit expense $ 3,079 $ (979 ) $ 2,100 Year ended December 31,2018 Defined benefit Fair value of Defined benefit Current service cost 2,105 — 2,105 Interest cost on net benefit obligation 642 (666 ) (24 ) Net benefit expense $ 2,747 $ (666 ) $ 2,081 |
Summary of Reconciliation of Net Employee Defined Benefit Liabilities | The following table shows reconciliation from the opening balance to the closing balances for net employee defined benefit liabilities and its components: Defined benefit Fair value of Other employee Defined benefit At January 1, 2018 $ (19,997 ) $ 23,794 $ (612 ) $ 3,185 Current service cost (2,105 ) — — (2,105 ) Interest (cost) income (642 ) 666 — 24 Return on plan assets — 483 — 483 Experience gain (loss) (1,943 ) — — (1,943 ) Invesment return — 67 — 67 Actuarial changes arising from changes in financial assumptions 877 — — 877 Employer contributions — 4,780 — 4,780 Benefits paid 1,242 (1,451 ) — (209 ) Adjustments — — (68 ) (68 ) At December 31, 2018 $ (22,568 ) $ 28,339 $ (680 ) $ 5,091 Current service cost (2,192 ) — — (2,192 ) Interest (cost) income (887 ) 979 — 92 Experience gain (loss) (1,681 ) — — (1,681 ) Invesment return — 138 — 138 Actuarial changes arising from changes in financial assumptions (1,874 ) — — (1,874 ) Employer contributions — 1,903 — 1,903 Benefits paid 1,007 (1,086 ) — (79 ) Adjustments — (1,187 ) 38 (1,149 ) As of December 31, 2019 $ (28,195 ) $ 29,086 $ (642 ) $ 249 Current service cost (2,393 ) — — (2,393 ) Interest (cost) income (706 ) 731 — 25 Past service cost (457 ) — — (457 ) Curtailment / Settlement 2,026 — — 2,026 Return on plan assets — 374 — 374 Experience gain (loss) (4,001 ) — — (4,001 ) Actuarial changes arising from changes in demographic assumptions (11,285 ) — — (11,285 ) Actuarial changes arising from changes in financial assumptions (1,028 ) — — (1,028 ) Employer contributions — 1,709 — 1,709 Benefits paid 6,573 (6,117 ) — 456 Adjustments — — (7 ) (7 ) As of December 31, 2020 $ (39,466 ) $ 25,783 $ (649 ) $ (14,332 ) |
Summary of Sensitivity Analysis for Actuarial Assumptions | The following were the principal actuarial assumptions at the reporting date: 2020 2019 2018 Economic assumptions - Discount rate 2.0% 2.5% 3.9% Compensation - salary increase 4.0% 4.0% 4.0% Demographic assumptions - Mortality Panama expirence RP - 2000 no collar RP -2000 no collar Termination 2003 SoA pension plan 13% all ages 13% all ages Retirement Males 62 years Females 57 years |
Summary of Additional Information about Sensitivity Analysis for Actuarial Assumptions | Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amount shown below: December, 31 2020 December, 31 2019 December, 31 2018 Increase Decrease Increase Decrease Increase Decrease Discount rate (0.5% movement) $ 2,318 $ (2,554 ) $ 709 $ (751 ) $ 538 $ (569 ) |
Summary of Expected Contribution Payments to Defined Benefit Plan | The following payments are expected contributions to the defined benefit plan in future years: 2020 2019 Up to one year $ 2,299 $ 5,169 One to five years 8,777 14,008 Over five years 14,112 14,049 Total expected payments $ 25,188 $ 33,226 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Reconciliation of Changes in Intangible Assets and Goodwill | Other intangibles assets License and Intangible Goodwill software rights in process Total Cost - Balance at January 1, 2018 $ 20,380 $ 74,683 $ 30,891 $ 125,954 Additions — 2,711 27,471 30,182 Disposals — — — — Reclassifications — 16,730 (16,730 ) — Balance at December 31, 2018 $ 20,380 $ 94,124 $ 41,632 $ 156,136 Additions — 8,503 16,962 25,465 Disposals — (86 ) — (86 ) Reclassifications — 40,660 (40,660 ) — Balance at December 31, 2019 $ 20,380 $ 143,201 $ 17,934 $ 181,515 Additions — 4,378 12,041 16,419 Disposals — (5,546 ) — (5,546 ) Reclassifications — 13,975 (13,975 ) — Balance at December 31, 2020 $ 20,380 $ 156,008 $ 16,000 192,388 Accumulated amortization and impairment - Balance at January 1, 2018 $ — $ (44,839 ) $ — $ (44,839 ) Amortization for the year — (10,129 ) — (10,129 ) Disposals — — — — Balance at December 31, 2018 $ — $ (54,968 ) $ — $ (54,968 ) Amortization for the year — (18,437 ) — (18,437 ) Disposals — 6 — 6 Balance at December 31, 2019 $ — $ (73,399 ) $ — $ (73,399 ) Amortization for the year — (25,493 ) — (25,493 ) Impairment — — (1,020 ) (1,020 ) Disposals — 3,092 — 3,092 Balance at December 31, 2020 $ — $ (95,800 ) $ (1,020 ) $ (96,820 ) Carrying amounts - At December 31, 2018 $ 20,380 $ 39,156 $ 41,632 $ 101,168 At December 31, 2019 $ 20,380 $ 69,802 $ 17,934 $ 108,116 At December 31, 2020 $ 20,380 $ 60,208 $ 14,980 $ 95,568 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Other Assets | 2020 2019 Current - Interest receivable $ 6,457 $ 12,838 Other 1,348 1,368 7,805 14,206 Non-current Guarantee deposits 3,010 4,121 Deposits for litigation 8,126 10,548 Other 3,212 3,212 14,348 17,881 $ 22,153 $ 32,087 |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Loans and borrowings | 2020 Due Effective rates Carrying Long-term fixed rate debt 2029 1.49% to 4.45% 663,293 Long-term variable rate debt 2029 0.42% to 1.66% 279,778 Senior convertible notes 2025 14.68% 220,829 1,163,900 Current maturities (127,946 ) Loans and borrowings long-term $ 1,035,954 2019 Due Effective rates ranged Carrying Long-term fixed rate debt 2029 1.49% to 4.90% 736,790 Long-term variable rate debt 2029 2.15% to 3.50% 323,975 1,060,765 Current maturities (122,582 ) Loans and borrowings long-term $ 938,183 |
Summary of Maturities of Loans and borrowings | Year ending December 31, 2021 127,946 2022 116,767 2023 96,132 2024 158,459 2025 375,385 Thereafter 289,211 $ 1,163,900 Senior convertible notes |
Summary of Senior convertible notes | The net proceeds from the offering, after deducting the initial purchasers’ discounts, commissions and other transaction costs is as follows: Nominal Cost assigned to Net Date April 30, 2020 $ 350,000 $ (7,102 ) $ 342,898 |
Summary of Finance Cost and Income | The detail of finance cost and income is as follows: 2020 2019 2018 Finance income - Interest income on short-term bank deposits $ 543 $ 1,432 $ 1,670 Interest income on investment 19,420 22,973 21,958 $ 19,963 $ 24,405 $ 23,628 Finance cost - Interests expense on bank loans $ (29,711 ) $ (36,676 ) $ (34,687 ) Interests expense on senior convertible notes (23,571 ) — — Interest on factoring (256 ) (1,316 ) (1,163 ) Interest on lease liabilities (see note 14) (10,734 ) (14,140 ) (14,975 ) Other finace cost (8,773 ) (5,300 ) — $(73,045) $(57,432) $(50,825) |
Changes in Liabilities Arising from Financing Activities | Changes in liabilities arising from financing activities: Non-cash 2019 Cash flows Foreign Leases Concession Covid-19 Other 2020 Loans and borrowings $ 1,060,765 $ 220,812 $ — $ — $ — $ (117,677 ) $ 1,163,900 Lease liability 304,564 (93,213 ) (347 ) 19,995 (489 ) — 230,510 Dividends payable — (33,990 ) — — — — (33,990 ) Total liabilities from financing activities $ 1,365,329 $ 93,609 $ (347 ) $ 19,995 $ (489 ) $ (117,677 ) $ 1,360,420 Non-cash 2018 Cash flows Foreign Leases Concession Covid-19 Other 2019 Loans and borrowings $ 1,293,541 $ (331,827 ) $ — $ — $ — $ 99,051 $ 1,060,765 Lease liability 375,683 (103,069 ) (84 ) 32,034 — — 304,564 Dividends payable — (110,438 ) — — — — (110,438 ) Total liabilities from financing activities $ 1,669,224 $ (545,334 ) $ (84 ) $ 32,034 $ — $ 99,051 $ 1,254,891 |
Trade, other payables and fin_2
Trade, other payables and financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Trade, Other Payables and Financial Liabilities | 2020 2019 Account payables $ 63,461 $ 119,332 Account payables to related parties 2,970 14,086 66,431 133,418 Others 252 84 $66,683 $133,502 |
Changes in disclosures (Tables)
Changes in disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position | The following table reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position: As previosly reported Reclasification 2019 (Restated) Current liabilities Loans and borrowings $ 117,238 $ 5,344 $ 122,582 Taxes and interest payable $ 51,611 $ (5,344 ) $ 46,267 |
Accrued expenses payable (Table
Accrued expenses payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Accrued Expenses Payable | 2020 2019 Accruals and estimations $ 23,589 $ 4,616 Labor related provisions 6,541 44,401 Liability for social security contributions 3,275 5,617 Other 590 739 $33,995 $55,373 |
Other long-term liabilities (Ta
Other long-term liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Other Long-term Liabilities | Provision Provision for Dismantling Other long-term Total Balance at January 1, 2020 $ 12,961 $ 133,014 $ 24,327 $ 25,535 $ 195,837 Increases 59 41,051 — 685 41,795 Used — — — (4,047 ) (4,047 ) Adjustment — — (178 ) — (178 ) Effect of movements in exchange rates (2,108 ) — — — (2,108 ) Unused amounts reversed (990 ) — — — (990 ) Unwinding of discount and changes in the discount rate — 8,773 832 — 9,605 Balance at December 31, 2020 $ 9,922 $ 182,838 $ 24,981 $ 22,173 $ 239,914 Current — 17,283 1,931 4,375 23,589 Non-current 9,922 165,555 23,050 17,798 216,325 $ 9,922 $ 182,838 $ 24,981 $ 22,173 $ 239,914 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Income Tax Expense | 2020 2019 2018 Current taxes expense - Current period $ (14,032 ) $ (55,847 ) $ (35,258 ) Adjustment for prior period 162 693 261 $(13,870) $(55,154) $(34,997) Deferred taxes expenses - Origination and reversal of temporary differences 37,587 8,717 467 Total income tax $ 23,717 $ (46,437 ) $ (34,530 ) |
Summary of Balances of Deferred Taxes | The balances of deferred taxes are as follows: Statement of financial Statement of profit or loss 2020 2019 2020 2019 2018 Deferred tax liabilities Maintenance deposits $ (23,891 ) $ (29,863 ) $ (5,972 ) $ — $ 3,277 Prepaid dividend tax — (7,403 ) (7,403 ) (1,456 ) (5,244 ) Property and equipment 2,108 (2,896 ) (5,004 ) (4,500 ) (2,136 ) Other (1,500 ) (4,690 ) (3,190 ) (1 ) 641 Set off tax 1,093 1,455 362 414 (63 ) $ (22,190 ) $ (43,397 ) $ (21,207 ) $ (5,543 ) $ (3,525 ) Deferred tax assets Provision for return conditions $ 12,665 $ 10,095 $ (2,570 ) $ (2,959 ) $ 723 Air traffic liability 2,486 2,039 (447 ) (247 ) (511 ) Other provisions 624 6,826 6,202 (2,139 ) (271 ) Tax loss 20,913 1,710 (19,203 ) 2,585 3,054 Set off tax (1,093 ) (1,455 ) (362 ) (414 ) 63 $ 35,595 $ 19,215 $ (16,380 ) $ (3,174 ) $ 3,058 $ 13,405 $ (24,182 ) $ (37,587 ) $ (8,717 ) $ (467 ) |
Summary of Reconciliation of Effective Tax Rate | Reconciliation of the effective tax rate is as follows: Tax rate 2020 Tax rate 2019 Tax rate 2018 Net income $ (607,062 ) $ 247,002 $ 88,198 Total income tax expense (23,717 ) 46,437 34,530 Profit excluding income tax (630,779 ) 293,439 122,728 Income taxes at Panamanian statutory rates 25.0 % (157,695 ) 25.0 % 73,360 25.0 % 30,682 Stations - Taxable / Panama (13.2 %) 83,071 (13.7 %) (40,205 ) (19.3 %) (23,745 ) Stations - Taxable / Non Panama (1.5 %) 9,850 2.4 % 7,043 9.0 % 11,052 Stations - Non Taxable / Non Panama (5.3 %) 33,728 (4.9 %) (14,444 ) 3.3 % 4,106 Dividend tax (1.2 %) 7,491 7.2 % 21,376 10.3 % 12,696 (Over) under provided in prior periods 0.0 % (162 ) (0.2 %) (693 ) (0.2 %) (261 ) Provision for income taxes 3.8 % $ (23,717 ) 15.8 % $ 46,437 28.1 % $ 34,530 |
Accounts and transactions wit_2
Accounts and transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Accounts and Transactions with Related Parties | 2020 2019 Account receivable - Banco General, S.A. $ 1,231 $ 24 Panama Air Cargo Terminal 186 101 Petróleos Delta, S.A. 12 22 $ 1,429 $ 147 Account payable - Petróleos Delta, S.A. $ 2,476 $ 13,330 Assa Compañía de Seguros, S.A. 358 283 Desarrollos Inmobiliarios del Este, S.A. 51 20 Panama Air Cargo Terminal 40 250 Galindo, Arias & López 36 — Cable Onda, S.A. 9 20 Banco General, S.A. — 151 Motta International, S.A. — 32 $2,970 $14,086 |
Summary of Related Party Transactions | Transactions with related parties for the year ended December 31 are as follows: Amount of Amount of Amount of Related party Transaction 2020 2019 2018 Petróleos Delta, S.A. Purchase of jet fuel $ 102,702 $ 376,765 $ 398,733 ASSA Compañía de Seguros, S.A. Insurance 7,147 11,215 9,735 Desarrollo Inmobiliario del Este, S.A. Property leasing 3,301 4,017 3,838 Profuturo Administradora de Fondos de Pensión y Cesantía Payments 2,839 5,145 4,716 Panama Air Cargo Terminal Handling 2,037 3,522 5,849 Motta International Purchase 550 1,854 1,585 Cable Onda, S.A. Communications 703 1,396 1,687 Galindo, Arias & López Legal services 236 309 490 GBM International, Inc. Technological support 146 240 231 Global Brands, S.A. Purchase 31 108 55 Televisora Nacional, S.A. Communications 13 — — Banco General, S.A. Interest income $ (2,657 ) $ (4,181 ) $ (3,781 ) Banco General, S.A.: . |
Summary of Key Management Personnel Compensation | Key management personnel compensation is as follows: 2020 2019 2018 Short-term employee benefits $ 3,177 $ 4,969 $ 6,104 Post-employment pension 61 95 117 Share-based payments 2,362 3,246 5,092 $5,600 $8,310 $11,313 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Terms and Conditions, Relating to the Grants of the Non-vested Stock Award under the Equity Compensation Plan | A summary of the terms and conditions, properly approved by the Compensation Committee of our Board of Directors, relating to the grants of the non-vested Grant date Number of Vesting conditions Contractual April, 2015 4,915 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years June, 2015 5,839 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years February, 2016 147,000 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years February, 2016 63,000 Fifth anniversary 5 years May, 2016 7,899 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years February, 2017 22,012 One-third 3 years February, 2017 11,980 One-third 3 years February, 2017 2,237 Third anniversary 3 years February, 2018 21,556 7% first month 31% first three anniversaries 3 years February, 2018 14,379 33% first three anniversaries 3 years February, 2018 1,316 15% first three anniversaries 25% fourth 30% fifth anniversary 5 years July, 2018 6,104 Third anniversary 3 years February, 2019 15,951 1% first month 33% first three anniversaries 3 years June, 2019 9,256 33% first three anniversaries 3 years June, 2019 977 33% first three anniversaries 3 years August, 2019 1,039 33% first three anniversaries 3 years December, 2019 1,724 100% first anniversary 1 year February, 2020 24,650 1% first month 33% first three anniversaries 3 years December, 2020 3,551 100% first anniversary 1 year |
Summary of Non-vested Stock Award Activity | A summary of the non-vested 2020 2019 2018 Non-vested 211,205 271,904 304,153 Granted 28,201 28,947 43,355 Vested (83,409 ) (80,170 ) (72,045 ) Forfeited (2,076 ) (9,476 ) (3,559 ) Non-vested 153,921 211,205 271,904 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Computation of the Income (Loss) and Share Data Used in the Basic and Diluted Earnings Per Share | The computation of the (losses) income and share data used in the basic and diluted (loss) earnings per share is as follows: 2020 2019 2018 Basic earnings per share - Net (loss) income $ (607,062 ) $ 247,002 $ 88,198 Weighted-average shares outstanding 42,338 42,258 42,182 Non-vested 170 225 274 42,508 42,483 42,456 (14.28 ) 5.81 2.08 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Schedule of Firm Commitment to Purchase Asset | The aircraft and engines contractual obligations net of discounts and pre-delivery Year ending December 31, 2021 560,914 2022 201,544 2023 408,145 2024 439,433 2025 514,549 Thereafter 850,823 $2,975,408 |
Financial instruments - Risk _2
Financial instruments - Risk management and fair value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Foreign Currency Risk Exposure | The following chart summarizes the Company’s foreign currency risk exposure (assets and liabilities denominated in foreign currency) as of December 31: 2020 2019 Assets Cash and cash equivalents $ 12,322 $ 22,818 Accounts receivable, net 27,670 73,018 Other assets 18,942 15,726 Total assets $ 58,934 $ 111,562 Liabilities Accounts payable 20,142 51,313 Taxes payable 13,757 37,137 Other liabilities 11,387 18,513 Total liabilities $ 45,286 $ 106,963 Net position $ 13,648 $ 4,599 |
Movement in Allowance for Impairment for Short and Long-term Investments at Amortized Cost | The movement in the allowance for impairment for short and long-term investments at amortized cost for the year ended December 31 was as follows: 2020 2019 Balance at beginning of year $ (957 ) $ (1,218 ) (Additions)/Reversal (260 ) 261 Balance at end of year $ (1,217 ) $ (957 ) |
Summary of Credit Risk Exposure on Trade Receivables using Provision Matrix | Set out below is the information about the credit risk exposure on the Company’s trade receivables using a provision matrix as of December 31: 2020 Days past due Total Current <30 30-60 60-90 >90 Expected credit loss rate 0.0 % 0.1 % 2.5 % 3.7 % 41.5 % Gross carrying amount $ 72,172 $ 50,180 $ 3,554 $ 1,867 $ 1,228 $ 15,343 Expected credit loss $ 6,483 $ 20 $ 3 $ 46 $ 46 $ 6,368 2019 Days past due Total Current <30 30-60 60-90 >90 Expected credit loss rate 0.1 % 2.3 % 3.7 % 12.0 % 33.3 % Gross carrying amount $ 137,499 $ 111,778 $ 6,170 $ 2,786 $ 1,636 $ 15,129 Expected credit loss $ 5,579 $ 99 $ 141 $ 104 $ 196 $ 5,039 |
Summary of Financial Liabilities According to Maturity Date | The table below summarizes the Company’s financial liabilities according to their maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the impact of discounting is not significant. December 31, 2020 Note Carrying Contractual Less than Between 1 More than Non-derivative Loans and borrowings 18 $ 1,163,900 $ 1,287,203 $ 155,902 $ 834,145 $ 297,156 Lease liabitity 14 230,510 246,495 90,244 147,530 8,720 Account payable 19 63,461 63,461 63,461 — — Account payable to related parties 19 2,970 2,970 2,970 — — $1,460,841 $1,600,129 $312,577 $981,675 $305,876 December 31, 2019 Note Carrying Contractual Less than Between 1 More than Non-derivative Loans and borrowings 18 $ 1,060,765 $ 1,197,635 $ 146,434 $ 556,257 $ 494,944 Lease liabitity 14 304,564 329,029 107,556 212,408 9,065 Account payable 19 119,332 119,332 119,332 — — Account payable to related parties 19 14,086 14,086 14,086 — — $1,498,747 $1,660,082 $387,408 $768,665 $504,009 |
Summary of Carrying Amount and Fair Values of Financial Assets and Financial Liabilities | Set out below is a comparison, by class, of the carrying amounts and fair values of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values: Carrying amount Fair Value Note 2020 2019 2020 2019 Financial assets Long-term investments 9 119,617 134,347 120,938 155,051 Financial liabilities Loans and borrowings 18 1,163,900 1,060,765 1,327,282 1,068,961 |
Summary of Company's financial instruments measured at fair value | Fair value measurement as of reporting date 2020 Quoted prices Significant Significant Non - recurring fair value measurements Assets Asset held for sale 135,542 — — 135,542 Total assets $ 135,542 $ — $ — $ 135,542 Recurring fair value measurements Liabilities Derivative financial instruments 245,560 — 245,560 — Total liabilities $ 245,560 $ — $ 245,560 $ — |
Summary of key Assumptions used to Determine the Fair Value of Assets Held For Sale | Company’s approach and the key assumptions used to determine the fair value less costs of disposal of the assets held for sale were as follows: Unobservable Value assigned Approach to determining key assumption Asset held for sale Sales price 145,399 Average of purchase proposals received Cost of disposal (9,857 ) Estimated based on the Company’s experience with disposal of similar assets. |
Subsequent events (Tables)
Subsequent events (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of updated Firm Commitment to Purchase Asset | Year ending December 31, 2021 49,800 2022 187,882 2023 383,231 2024 421,271 2025 487,348 Thereafter 1,893,442 $3,422,974 |
Corporate Information - Additio
Corporate Information - Additional Information (Detail) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 31, 2016 | Dec. 31, 2020USD ($)DestinationsCountryFlightsAirlinesAircraft | Dec. 31, 2020USD ($)DestinationsCountryFlightsAirlinesAircraft | Dec. 31, 2019USD ($)Aircraft | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021Aircraft | |
Parent company information [line items] | |||||||
Commercial alliance with United Airlines - Renewal extension period | 5 years | ||||||
Number of aircraft | Aircraft | 77 | 77 | |||||
Aircraft average useful life | 8 years 2 months 12 days | ||||||
Air crafts held for sale | Aircraft | 14 | ||||||
Proceeds from senior conertible note | $ | $ 342,900 | $ 342,900 | |||||
Debt including current maturities | $ | 1,163,900 | 1,163,900 | $ 1,060,765 | ||||
Monthly Cash Consumption | $ | 20,000 | ||||||
Total cash, cash equivalents, short-term and long-term investments | $ | $ 1,010 | 1,010 | |||||
Passenger revenue [member] | |||||||
Parent company information [line items] | |||||||
Revenue | $ | 760,594 | 2,612,605 | $ 2,587,389 | ||||
Cargo and mail revenue [member] | |||||||
Parent company information [line items] | |||||||
Revenue | $ | $ 21,002 | $ 62,460 | $ 62,483 | ||||
Boeing 737-700 [member] | |||||||
Parent company information [line items] | |||||||
Air crafts held for sale | Aircraft | 14 | 14 | |||||
Boeing Seven Hundred And Thirty Seven Max Aircraft [Member] | |||||||
Parent company information [line items] | |||||||
No of aircrafts held for sale delivered | Aircraft | 6 | ||||||
Covid 19 Member [Member] | |||||||
Parent company information [line items] | |||||||
Percentage of decrease in company operations | 70.90% | ||||||
Revenue | $ | $ 801,000 | ||||||
Percentage of decrease in revenue | 70.40% | ||||||
Covid 19 Member [Member] | Passenger revenue [member] | |||||||
Parent company information [line items] | |||||||
Percentage of decrease in revenue | 70.90% | ||||||
Covid 19 Member [Member] | Cargo and mail revenue [member] | |||||||
Parent company information [line items] | |||||||
Percentage of decrease in revenue | 66.40% | ||||||
Covid 19 Member [Member] | Other operating revenues [member] | |||||||
Parent company information [line items] | |||||||
Percentage of decrease in revenue | 40.00% | ||||||
Covid 19 Member [Member] | Boeing 737-800 [member] | |||||||
Parent company information [line items] | |||||||
Number of aircraft | Aircraft | 68 | 68 | |||||
Covid 19 Member [Member] | Boeing 737-700 [member] | |||||||
Parent company information [line items] | |||||||
Number of aircraft | Aircraft | 2 | 2 | |||||
Covid 19 Member [Member] | Boeing Seven Hundred And Thirty Seven Max Aircraft [Member] | |||||||
Parent company information [line items] | |||||||
Number of aircraft | Aircraft | 7 | 7 | |||||
Covid 19 Member [Member] | Embraer 190 fleet [member] | |||||||
Parent company information [line items] | |||||||
Air crafts held for sale | Aircraft | 14 | 14 | |||||
Number of Spare Engines Spare Parts Held for Sale | Aircraft | 6 | 6 | |||||
No of aircrafts held for sale delivered | Aircraft | 6 | 6 | |||||
No of of aircrafts held for sale yet to bedelivered | Aircraft | 8 | 8 | |||||
Covid 19 Member [Member] | ExportImport Bank of the United States [Member] | |||||||
Parent company information [line items] | |||||||
Debt including current maturities | $ | $ 327,900 | $ 327,900 | |||||
Covid 19 Member [Member] | Committed Credit Facilities [Member] | |||||||
Parent company information [line items] | |||||||
Debt including current maturities | $ | 305,000 | 305,000 | $ 305,000 | ||||
Covid 19 Member [Member] | Secured Credit Facilities [Member] | |||||||
Parent company information [line items] | |||||||
Debt including current maturities | $ | 105,000 | 105,000 | |||||
Covid 19 Member [Member] | Unsecured Credit Facilities [Member] | |||||||
Parent company information [line items] | |||||||
Debt including current maturities | $ | $ 200,000 | $ 200,000 | $ 200,000 | ||||
Compania Panamena de Aviacion, S. A. - Copa Airlines [member] | |||||||
Parent company information [line items] | |||||||
Number of countries | Country | 25 | 25 | |||||
Number of daily scheduled flights | Flights | 104 | 104 | |||||
Compania Panamena de Aviacion, S. A. - Copa Airlines [member] | International [member] | Codeshare agreements [member] | |||||||
Parent company information [line items] | |||||||
Number of destinations | Destinations | 200 | 200 | |||||
Compania Panamena de Aviacion, S. A. - Copa Airlines [member] | North, Central and South America and the Caribbean [Member] | |||||||
Parent company information [line items] | |||||||
Number of destinations | Destinations | 54 | 54 | |||||
ConnectMiles [member] | Star Alliance Airlines [member] | |||||||
Parent company information [line items] | |||||||
Number of destinations | Destinations | 1,300 | 1,300 | |||||
Number of countries | Country | 195 | 195 | |||||
ConnectMiles [member] | Star Alliance Airlines [member] | Bottom of range [member] | |||||||
Parent company information [line items] | |||||||
Number of airlines | Airlines | 26 | 26 |
Significant Accounting Polici_4
Significant Accounting Policies - Schedule of Significant Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Panama [member] | Copa Airlines [member] | ||
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Ownership interest | 99.90% | 99.90% |
Colombia [member] | Copa Colombia [member] | ||
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Ownership interest | 99.90% | 99.90% |
British Virgin Islands [member] | Oval [member] | ||
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Ownership interest | 100.00% | 100.00% |
Significant Accounting Polici_5
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of summary of significant accounting policies [line items] | |||
Applicable tax rate | 25.00% | 25.00% | 25.00% |
Description of disposal of business available for sale | The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification. | ||
Panama [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Applicable tax rate | 25.00% | ||
Dividends Tax Rate, Panamanian source income | 10.00% | ||
Dividends Tax Rate, foreign source income | 5.00% | ||
Bottom of range [member] | Computer software licenses [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 3 years | 3 years | |
Bottom of range [member] | Software development [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 5 years | 5 years | |
Top of range [member] | Computer software licenses [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 8 years | 8 years | |
Top of range [member] | Software development [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 15 years | 15 years |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Assets and Considering Residual Value (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Residual Value | 15.00% |
Airframe and engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life (years) | 27 years |
Residual Value | 15.00% |
Major maintenance events [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life (years) | 3 years |
Major maintenance events [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life (years) | 16 years |
Ground equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life (years) | 10 years |
Furniture, fixture, equipment and other [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life (years) | 5 years |
Furniture, fixture, equipment and other [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life (years) | 10 years |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | Lesser of remaining lease term and estimated useful life of the leasehold improvement |
Significant Accounting Judgme_2
Significant Accounting Judgments, Estimates and Assumptions - Additional Information (Detail) - Aircraft | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of voluntary change in accounting policy [line items] | ||
Salvage value assets rate | 15.00% | |
Air crafts held for sale | 14 | |
Boeing 737-700 [member] | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Air crafts held for sale | 14 |
Changes in disclosures - Summar
Changes in disclosures - Summary of reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure Of Detailed Information Reconcile The Changes In Presentation In Prior Years For Comparative Effects On The Consolidated Statement Of Financial Position Explanatory [Line Items] | |
Loans and borrowings | $ 122,582 |
Taxes and interest payable | 46,267 |
As Previously reported [Member] | |
Disclosure Of Detailed Information Reconcile The Changes In Presentation In Prior Years For Comparative Effects On The Consolidated Statement Of Financial Position Explanatory [Line Items] | |
Loans and borrowings | 117,238 |
Taxes and interest payable | 51,611 |
Reclasification [Member] | |
Disclosure Of Detailed Information Reconcile The Changes In Presentation In Prior Years For Comparative Effects On The Consolidated Statement Of Financial Position Explanatory [Line Items] | |
Loans and borrowings | 5,344 |
Taxes and interest payable | $ (5,344) |
Revenue From Contract With Cu_3
Revenue From Contract With Customers - Summary of Disaggregated Operating Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | $ 19,407 | $ 32,343 | $ 27,755 |
Total operating revenue | 801,003 | 2,707,408 | 2,677,627 |
Passenger revenue excluding miles redeemed [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 752,050 | 2,581,179 | 2,567,316 |
Miles redeemed [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 8,544 | 31,426 | 20,073 |
Passenger revenue [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 760,594 | 2,612,605 | 2,587,389 |
Cargo and mail revenue [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 21,002 | 62,460 | 62,483 |
Frequent flyer program - marketing services revenue [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | 15,452 | 22,170 | 16,291 |
Other operating revenues [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Other operating revenue | $ 3,955 | $ 10,173 | $ 11,464 |
Revenue From Contract With Cu_4
Revenue From Contract With Customers - Summary of Changes in Contract Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Air traffic liability [member] | ||
Disclosure of changes in contact liabilities [line items] | ||
Balance at beginning of year | $ 497,374 | $ 471,676 |
Sales | 887,004 | 2,878,814 |
Revenue recognition | (700,406) | (2,355,626) |
Tax recognition | (113,473) | (404,732) |
Reimbursements | (82,910) | (45,396) |
Interline tickets | (15,056) | (35,272) |
Other | (1,838) | (12,090) |
Balance at end of year | 470,695 | 497,374 |
Frequent flyer liability [member] | ||
Disclosure of changes in contact liabilities [line items] | ||
Balance at beginning of year | 80,326 | 67,814 |
Deferred of revenue | 19,431 | 43,938 |
Revenue recognition | (8,544) | (31,426) |
Balance at end of year | 91,213 | 80,326 |
Current | 16,041 | 35,120 |
Non-current | $ 75,172 | $ 45,206 |
Revenue from Contract with Cu_5
Revenue from Contract with Customers - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
Disclosure of operating segments [abstract] | |
Number of operating segment | 1 |
Revenue from Contract with Cu_6
Revenue from Contract with Customers - Operating Revenue by Principal Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographical areas [line items] | |||
Passenger, Cargo and Mail Revenue | $ 781,596 | $ 2,675,065 | $ 2,649,872 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Passenger, Cargo and Mail Revenue | 233,039 | 857,002 | 826,529 |
South America [Member] | |||
Disclosure of geographical areas [line items] | |||
Passenger, Cargo and Mail Revenue | 281,008 | 975,530 | 1,076,507 |
Central America [Member] | |||
Disclosure of geographical areas [line items] | |||
Passenger, Cargo and Mail Revenue | 246,727 | 740,358 | 648,747 |
Carribean [Member] | |||
Disclosure of geographical areas [line items] | |||
Passenger, Cargo and Mail Revenue | $ 20,822 | $ 102,175 | $ 98,089 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents [abstract] | ||||
Checking and saving accounts | $ 99,286 | $ 118,367 | ||
Time deposits of no more than ninety days | 19,500 | 40,000 | ||
Cash on hand | 279 | 365 | ||
Cash and cash equivalents | $ 119,065 | $ 158,732 | $ 156,158 | $ 238,792 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of cash and cash equivalents [line items] | ||
Collateral pledged | $ 5.9 | $ 0 |
Bottom of range [member] | ||
Disclosure of cash and cash equivalents [line items] | ||
Time deposits interest rate | 0.24% | 1.71% |
Top of range [member] | ||
Disclosure of cash and cash equivalents [line items] | ||
Time deposits interest rate | 0.35% | 1.98% |
Investments - Schedule of Infor
Investments - Schedule of Information About Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial assets [line items] | ||
Current | $ 770,816 | $ 692,403 |
Non Current | 119,617 | 134,347 |
Total | 890,433 | 826,750 |
Time deposits [member] | ||
Disclosure of detailed information about financial assets [line items] | ||
Current | 430,000 | 640,500 |
Non Current | 80,000 | 60,000 |
Total | 510,000 | 700,500 |
Bonds [member] | ||
Disclosure of detailed information about financial assets [line items] | ||
Current | 341,854 | 52,573 |
Non Current | 39,796 | 74,634 |
Total | 381,650 | 127,207 |
Time deposits and bonds [member] | ||
Disclosure of detailed information about financial assets [line items] | ||
Current | 771,854 | 693,073 |
Non Current | 119,796 | 134,634 |
Total | 891,650 | 827,707 |
Allowance for credit losses [member] | ||
Disclosure of detailed information about financial assets [line items] | ||
Current | (1,038) | (670) |
Non Current | (179) | (287) |
Total | $ (1,217) | $ (957) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Currency risk [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Risk exposure associated with instruments | $ 0 | |
Other price risk [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Risk exposure associated with instruments | $ 0 | |
Bottom of range [member] | Time deposits denominated with a contractual maturity of less than 365 days [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rates on time deposits | 0.27% | 2.00% |
Bottom of range [member] | Time deposits with a contractual maturity of more than 365 days [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rates on time deposits | 1.20% | 3.25% |
Top of range [member] | Time deposits denominated with a contractual maturity of less than 365 days [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rates on time deposits | 4.38% | 3.75% |
Top of range [member] | Time deposits with a contractual maturity of more than 365 days [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rates on time deposits | 4.25% | 4.38% |
Bottom of range Bonds with semiannual interest payment [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Semiannual interest payment, interest rates | 0.21% | 2.06% |
Top of range Bonds with semiannual interest payment [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Semiannual interest payment, interest rates | 3.32% | 3.32% |
Accounts Receivable - Disclosur
Accounts Receivable - Disclosure of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of accounts receivables [abstract] | ||
Credit cards | $ 35,882 | $ 64,595 |
Cargo and other travel agencies | 10,052 | 19,389 |
Airlines and clearing house | 6,156 | 31,087 |
Government | 5,466 | 8,031 |
Trade receivables from related parties | 1,429 | 147 |
Other | 13,187 | 14,250 |
Total accounts receivable | 72,172 | 137,499 |
Allowance for expected credit losses | (6,483) | (5,579) |
Trade and other receivables | 65,689 | 131,920 |
Trade and other receivables current and non - current | ||
Current | 64,635 | 129,781 |
Non - current | 1,054 | 2,139 |
Trade and other receivables | $ 65,689 | $ 131,920 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of accounts receivable [line items] | ||
Non - current account receivable | $ 1,054 | $ 2,139 |
Bottom of range [member] | ||
Disclosure of accounts receivable [line items] | ||
Trade receivable term | 30 days | |
Top of range [member] | ||
Disclosure of accounts receivable [line items] | ||
Trade receivable term | 90 days |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Movements in the Allowance for Impairment in Respect of Account Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of accounts receivables [abstract] | |||
Beginning balance | $ (5,579) | $ (5,057) | $ (3,673) |
Adjustment on initial application of IFRS 9 | (624) | ||
Balance at beginning of year under IFRS 9 | (5,579) | (5,057) | (4,297) |
Additions | (1,310) | (744) | (1,311) |
Write-offs | 406 | 222 | 551 |
Ending balance | $ (6,483) | $ (5,579) | $ (5,057) |
Expendable Parts and Supplies -
Expendable Parts and Supplies - Disclosure of Expendable Parts and Supplies (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Classes of current inventories [abstract] | ||
Material for repair and maintenance | $ 69,737 | $ 66,418 |
Other inventories | 4,920 | 3,686 |
Expendable parts and supplies, gross | 74,657 | 70,104 |
Allowance for obsolescence | (338) | (1,004) |
Expendable parts and supplies | $ 74,319 | $ 69,100 |
Expendable Parts and Supplies_2
Expendable Parts and Supplies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Classes of current inventories [abstract] | |||
Expendable parts and supplies expense | $ 12.7 | $ 32.4 | $ 31.9 |
Prepaid Expenses - Detailed Inf
Prepaid Expenses - Detailed Information about Prepaid Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current prepayments [abstract] | ||
Prepaid taxes | $ 10,022 | $ 26,164 |
Prepaid commissions | 3,908 | 4,298 |
Prepaid insurance | 5,385 | 1,231 |
Prepaid to supplier | 17,224 | 35,084 |
Total prepaid expenses | 36,539 | 66,777 |
Current | 30,473 | 49,034 |
Non-current | 6,066 | 17,743 |
Prepaid expenses | $ 36,539 | $ 66,777 |
Prepaid Expenses - Additional I
Prepaid Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Prepaid expenses [line items] | ||
Tax advance of VAT and withholdings taxes | $ 4,000 | $ 8,400 |
Advance payments of taxes | 1,600 | 1,300 |
Tax credits | 4,500 | $ 16,500 |
Loss on sale of tax refund titles included under other non operating expense | 10 | |
COLOMBIA | ||
Prepaid expenses [line items] | ||
Return of credits of income in Tax refund titiles | $ 14,800 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 2,532,402 | $ 2,698,131 | |
Impairment | (243,097) | (89,344) | $ (188,624) |
Ending balance | 2,147,486 | 2,532,402 | 2,698,131 |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,668,182 | 4,078,199 | 3,803,861 |
Transfer of pre-delivery payments | 0 | 0 | 0 |
Additions | 44,065 | 189,491 | 468,424 |
Disposals | (35,935) | (185,831) | (27,514) |
Assets held for sale | (554,790) | (413,677) | (164,201) |
Reclassifications | (5,600) | 0 | (2,371) |
Ending balance | 3,115,922 | 3,668,182 | 4,078,199 |
Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,135,780) | (1,380,068) | (1,189,645) |
Depreciation for the year | (139,002) | (160,819) | (159,307) |
Disposals | 33,099 | 178,788 | 23,769 |
Assets held for sale | 273,251 | 226,319 | 75,556 |
Reclassifications | 268 | ||
Impairment | (4) | (130,709) | |
Ending balance | (968,436) | (1,135,780) | (1,380,068) |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,301 | 6,301 | |
Ending balance | 6,301 | 6,301 | 6,301 |
Land [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,301 | 6,301 | 6,301 |
Transfer of pre-delivery payments | 0 | 0 | 0 |
Additions | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Assets held for sale | 0 | 0 | 0 |
Reclassifications | 0 | 0 | 0 |
Ending balance | 6,301 | 6,301 | 6,301 |
Land [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | 0 |
Depreciation for the year | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Assets held for sale | 0 | 0 | |
Reclassifications | 0 | ||
Impairment | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Flight equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,010,509 | 2,165,787 | |
Ending balance | 1,689,287 | 2,010,509 | 2,165,787 |
Flight equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,038,594 | 3,449,527 | 3,252,229 |
Transfer of pre-delivery payments | 49,860 | 78,143 | 156,305 |
Additions | 39,492 | 109,286 | 228,302 |
Disposals | (34,626) | (184,685) | (20,737) |
Assets held for sale | (554,790) | (413,677) | (164,201) |
Reclassifications | 244 | 0 | (2,371) |
Ending balance | 2,538,774 | 3,038,594 | 3,449,527 |
Flight equipment [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,028,085) | (1,283,740) | (1,097,751) |
Depreciation for the year | (126,988) | (148,832) | (147,980) |
Disposals | 32,335 | 178,168 | 16,876 |
Assets held for sale | 273,251 | 226,319 | 75,556 |
Reclassifications | 268 | ||
Impairment | 0 | (130,709) | |
Ending balance | (849,487) | (1,028,085) | (1,283,740) |
Purchase deposits for flight equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 463,274 | 474,060 | |
Ending balance | 407,814 | 463,274 | 474,060 |
Purchase deposits for flight equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 463,274 | 474,060 | 413,633 |
Transfer of pre-delivery payments | (49,860) | (78,143) | (156,305) |
Additions | 0 | 67,357 | 216,732 |
Disposals | 0 | 0 | 0 |
Assets held for sale | 0 | 0 | 0 |
Reclassifications | (5,600) | 0 | 0 |
Ending balance | 407,814 | 463,274 | 474,060 |
Purchase deposits for flight equipment [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | 0 |
Depreciation for the year | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Assets held for sale | 0 | 0 | |
Reclassifications | 0 | ||
Impairment | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Ramp and miscellaneous [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 12,466 | 13,055 | |
Ending balance | 9,911 | 12,466 | 13,055 |
Ramp and miscellaneous [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 56,337 | 53,736 | 48,353 |
Transfer of pre-delivery payments | 0 | 0 | 0 |
Additions | 582 | 2,693 | 5,434 |
Disposals | (306) | (102) | (128) |
Assets held for sale | 0 | 0 | 0 |
Reclassifications | 0 | 10 | 77 |
Ending balance | 56,613 | 56,337 | 53,736 |
Ramp and miscellaneous [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (43,871) | (40,681) | (37,016) |
Depreciation for the year | (3,121) | (3,292) | (3,783) |
Disposals | 290 | 102 | 118 |
Assets held for sale | 0 | 0 | |
Reclassifications | 0 | ||
Impairment | 0 | 0 | |
Ending balance | (46,702) | (43,871) | (40,681) |
Furniture, fixture, equipment a and other [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 5,292 | 5,832 | |
Ending balance | 2,335 | 5,292 | 5,832 |
Furniture, fixture, equipment a and other [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 32,798 | 30,918 | 27,524 |
Transfer of pre-delivery payments | 0 | 0 | 0 |
Additions | 221 | 2,450 | 3,773 |
Disposals | (223) | (570) | (393) |
Assets held for sale | 0 | 0 | 0 |
Reclassifications | 0 | 0 | 14 |
Ending balance | 32,796 | 32,798 | 30,918 |
Furniture, fixture, equipment a and other [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (27,506) | (25,086) | (22,959) |
Depreciation for the year | (3,134) | (2,938) | (2,506) |
Disposals | 179 | 518 | 379 |
Assets held for sale | 0 | 0 | |
Reclassifications | 0 | ||
Impairment | 0 | 0 | |
Ending balance | (30,461) | (27,506) | (25,086) |
Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 28,973 | 18,843 | |
Ending balance | 25,677 | 28,973 | 18,843 |
Leasehold improvements [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 65,291 | 49,404 | 50,043 |
Transfer of pre-delivery payments | 0 | 0 | 0 |
Additions | 566 | 3,269 | 3,388 |
Disposals | (780) | (134) | (6,246) |
Assets held for sale | 0 | 0 | 0 |
Reclassifications | 2,382 | 12,752 | 2,219 |
Ending balance | 67,459 | 65,291 | 49,404 |
Leasehold improvements [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (36,318) | (30,561) | (31,919) |
Depreciation for the year | (5,759) | (5,757) | (5,038) |
Disposals | 295 | 0 | 6,396 |
Assets held for sale | 0 | 0 | |
Reclassifications | 0 | ||
Impairment | 0 | 0 | |
Ending balance | (41,782) | (36,318) | (30,561) |
Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 5,587 | 14,253 | |
Ending balance | 6,161 | 5,587 | 14,253 |
Construction in progress [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 5,587 | 14,253 | 5,778 |
Transfer of pre-delivery payments | 0 | 0 | 0 |
Additions | 3,204 | 4,436 | 10,795 |
Disposals | 0 | (340) | (10) |
Assets held for sale | 0 | 0 | 0 |
Reclassifications | (2,626) | (12,762) | (2,310) |
Ending balance | 6,165 | 5,587 | 14,253 |
Construction in progress [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | 0 |
Depreciation for the year | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Assets held for sale | 0 | 0 | |
Reclassifications | 0 | ||
Impairment | (4) | 0 | |
Ending balance | $ (4) | $ 0 | $ 0 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)Aircraft | Dec. 31, 2019USD ($)Aircraft | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Borrowing costs capitalized | $ 1,400,000 | |||||
Capitalized borrowing rate | 3.40% | |||||
Impairment | $ 243,097,000 | $ 89,344,000 | $ 188,624,000 | |||
Air crafts held for sale | Aircraft | 14 | |||||
Average lease term | 10 years | |||||
Other Property Plant Equipment Capitalized Cost | $ 0.8 | $ 11,600,000 | ||||
Credits received on acquisition | $ 8,100,000 | |||||
Ciudad del Saber Panama City [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Other Property Plant Equipment Capitalized Cost | $ 1.6 | |||||
Covid 19 [Member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Description of cash flow projections | To determine whether impairment exists, the recoverable amount at the level of the CGU, was determined using cash flow projections from financial forecasts approved by senior management covering a five-year period. The pre-tax discount rate applied to cash flow projections was 13.1%. | |||||
Pre-tax discount rate applied to cash flow projections | 13.10% | |||||
Air crafts held for sale | Aircraft | 14 | |||||
Number of Spare Engines Spare Parts Held for Sale | Aircraft | 6 | |||||
No of aircrafts held for sale delivered | Aircraft | 6 | |||||
No of of aircrafts held for sale yet to bedelivered | Aircraft | 8 | |||||
Boeing 737 MAX 9 [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Aircrafts acquired through Japanese Operating Leases with Call Option | Aircraft | 2 | |||||
Embraer 190 fleet [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Impairment | $ 49,500,000 | |||||
Boeing 737-700 [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Air crafts held for sale | Aircraft | 14 | |||||
Impairment loss | $ 191,200,000 | |||||
Aircraft [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Additions purchase deposits | $ 0 | $ 67,300,000 | ||||
Carrying value pledged as collateral obligation | $ 1,300,000,000 | 1,500,000,000 | ||||
Additions for advance payments contracts | $ 75,400,000 |
Property and Equipment - Summ_2
Property and Equipment - Summary of assets held for sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Assets Held For sale [Line Items] | ||
Assets | $ 135,542 | $ 120,006 |
Flight Equipment [Member] | ||
Disclosure Of Assets Held For sale [Line Items] | ||
Assets | 129,443 | 91,252 |
Expendable Parts And Supplies [Member] | ||
Disclosure Of Assets Held For sale [Line Items] | ||
Assets | $ 6,099 | $ 28,754 |
Leases - Right of use assets (D
Leases - Right of use assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right of use assets, Beginning balance | $ 290,843 | $ 361,993 | $ 384,350 |
Additions | 31,674 | 84,770 | |
Additions/(Terminations) | 19,818 | ||
Impairment | (1,541) | 0 | 0 |
Depreciation expense | (94,841) | (102,824) | (107,127) |
Right of use assets, Ending balance | 214,279 | 290,843 | 361,993 |
Aircraft [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right of use assets, Beginning balance | 260,647 | 333,049 | 350,517 |
Additions | 23,162 | 83,389 | |
Additions/(Terminations) | 21,706 | ||
Impairment | (1,541) | ||
Depreciation expense | (88,451) | (95,564) | (100,857) |
Right of use assets, Ending balance | 192,361 | 260,647 | 333,049 |
Real Estate [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Right of use assets, Beginning balance | 30,196 | 28,944 | 33,833 |
Additions | 8,512 | 1,381 | |
Additions/(Terminations) | (1,888) | ||
Impairment | 0 | ||
Depreciation expense | (6,390) | (7,260) | (6,270) |
Right of use assets, Ending balance | $ 21,918 | $ 30,196 | $ 28,944 |
Leases - Lease liabilities (Det
Leases - Lease liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Lease Liabilities [Line Items] | ||
Current portion of lease liability | $ 83,605 | $ 97,732 |
Long Term Lease liability | 146,905 | 206,832 |
Lease Liabilities | 230,510 | 304,564 |
Aircraft [member] | ||
Disclosure Of Lease Liabilities [Line Items] | ||
Current portion of lease liability | 77,777 | 91,246 |
Long Term Lease liability | 125,216 | 179,031 |
Real Estate [Member] | ||
Disclosure Of Lease Liabilities [Line Items] | ||
Current portion of lease liability | 5,828 | 6,486 |
Long Term Lease liability | $ 21,689 | $ 27,801 |
Leases - Total cash outflow for
Leases - Total cash outflow for leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Cash Flows For Leases [Line Items] | ||
Cash outflow for leases | $ 103,392 | $ 117,068 |
Aircraft [member] | ||
Disclosure Of Cash Flows For Leases [Line Items] | ||
Cash outflow for leases | 97,353 | 107,610 |
Real Estate [Member] | ||
Disclosure Of Cash Flows For Leases [Line Items] | ||
Cash outflow for leases | $ 6,039 | $ 9,458 |
Leases - Disclosure of Lease Ex
Leases - Disclosure of Lease Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation and amortization | |||
Depreciation and amortization | $ 94,841 | $ 102,824 | $ 107,127 |
Impairment of non financial assets | |||
Impairment | 1,541 | 0 | 0 |
Other operating and administrative expenses | |||
Short-term leases | 90 | 364 | 1,412 |
Leases of low-value assets | 330 | 733 | 853 |
Variable lease payments not include in the measurement of lease liabilities | 827 | 706 | 611 |
Lease Cost Operating And Adimninstrative Expenses | 758 | 1,803 | 2,876 |
Variable lease payments by rental concessions received | (489) | 0 | 0 |
Finance cost | |||
Unwinding Of Discount And Changes In The Discount Rate | 832 | 846 | 796 |
Finance costs | 10,734 | 14,140 | 14,975 |
Total lease costs | 107,874 | 118,767 | 124,978 |
Aircraft [member] | |||
Depreciation and amortization | |||
Depreciation and amortization | 88,451 | 95,564 | 100,857 |
Impairment of non financial assets | |||
Impairment | 1,541 | ||
Finance cost | |||
Interest expense on lease liabilities | 8,185 | 11,221 | 12,074 |
Real Estate [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization | 6,390 | 7,260 | 6,270 |
Impairment of non financial assets | |||
Impairment | 0 | ||
Finance cost | |||
Interest expense on lease liabilities | $ 1,717 | $ 2,073 | $ 2,105 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Receivables under Non-cancellable Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of finance lease and operating lease by lessor [line items] | ||
Future minimum lease receivables under non -cancelable leases | $ 5,875 | $ 9,095 |
Up to one year [member] | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Future minimum lease receivables under non -cancelable leases | 3,000 | 3,220 |
One to five years [member] | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Future minimum lease receivables under non -cancelable leases | $ 2,875 | $ 5,875 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Aircraft | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of finance and operating lease by lessee [Line Items] | |||
Weighted average incremental borrowing rate | 3.37% | 3.37% | |
Average duration of long-term lease agreement | 10 years | ||
Number of aircraft under lessor | Aircraft | 2 | ||
Carrying amount of aircraft under operating lease | $ 12.3 | $ 37.7 | |
Scheduled expiration date of lease | 2022 | ||
Total lease income amounts | $ 3.2 | 3.5 | $ 3.5 |
Total liability related to leases including the provision of dismantling | $ 255.5 | $ 328.9 |
Net employee defined benefit -
Net employee defined benefit - Summary of Employee Defined Benefit Plan (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of net defined benefit asset (liability) [line items] | ||
Fair value of plan assets | $ 25,783 | $ 29,086 |
Employee benefits liability | (40,115) | (28,837) |
Benefit (liability) assets | (14,332) | 249 |
Defined benefit obligation [member] | ||
Disclosure of net defined benefit asset (liability) [line items] | ||
Employee benefits liability | (39,466) | (28,195) |
Other employee benefits [member] | ||
Disclosure of net defined benefit asset (liability) [line items] | ||
Employee benefits liability | $ (649) | $ (642) |
Net employee defined benefit _2
Net employee defined benefit - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit asset (liability) [line items] | |||
Employer contributions | $ 2.8 | $ 4.4 | $ 4.8 |
Retirement of interest earned | 1.1 | 2.5 | 0 |
Actuarial loss recognized in other comprehensive income | $ 15.5 | $ 4.4 | $ 0.3 |
Duration of defined benefit plan obligation | 9 years | ||
Indemnity plan [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Percentage of eligible earnings accumulated as benefit | 6.54% |
Net employee defined benefit _3
Net employee defined benefit - Summary of Components of Net Benefit Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit asset (liability) [line items] | |||
Current service cost | $ 2,393 | $ 2,192 | $ 2,105 |
Interest cost on net benefit obligation | (25) | (92) | (24) |
Past service cost | 457 | ||
Curtailment / Settlement | (2,026) | ||
Net benefit expense | 799 | 2,100 | 2,081 |
Defined benefit obligation [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Current service cost | 2,393 | 2,192 | 2,105 |
Interest cost on net benefit obligation | 706 | 887 | 642 |
Past service cost | 457 | ||
Curtailment / Settlement | (2,026) | ||
Net benefit expense | 1,530 | 3,079 | 2,747 |
Fair value of assets [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Current service cost | 0 | 0 | 0 |
Interest cost on net benefit obligation | (731) | (979) | (666) |
Past service cost | 0 | ||
Curtailment / Settlement | 0 | ||
Net benefit expense | $ (731) | $ (979) | $ (666) |
Net employee defined benefit _4
Net employee defined benefit - Summary of Reconciliation of Net Employee Defined Benefit Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | $ 249 | $ 5,091 | $ 3,185 |
Current service cost | (2,393) | (2,192) | (2,105) |
Interest (cost) income | 25 | 92 | 24 |
Return on plan assets | 374 | 483 | |
Experience (loss) gain | (4,001) | (1,681) | (1,943) |
Investment return | 138 | 67 | |
Actuarial changes arising from changes in financial assumptions | (1,028) | (1,874) | 877 |
Employer contributions | 1,709 | 1,903 | 4,780 |
Benefits paid | 456 | (79) | (209) |
Adjustments | (7) | (1,149) | (68) |
Ending balance | (14,332) | 249 | 5,091 |
Past service cost | (457) | ||
Curtailment / Settlement | 2,026 | ||
Actuarial changes arising from changes in demographic assumptions | (11,285) | ||
Defined benefit obligation [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | (28,195) | (22,568) | (19,997) |
Current service cost | (2,393) | (2,192) | (2,105) |
Interest (cost) income | (706) | (887) | (642) |
Return on plan assets | 0 | 0 | |
Experience (loss) gain | (4,001) | (1,681) | (1,943) |
Investment return | 0 | ||
Actuarial changes arising from changes in financial assumptions | (1,028) | (1,874) | 877 |
Employer contributions | 0 | 0 | 0 |
Benefits paid | 6,573 | 1,007 | 1,242 |
Adjustments | 0 | 0 | 0 |
Ending balance | (39,466) | (28,195) | (22,568) |
Past service cost | (457) | ||
Curtailment / Settlement | 2,026 | ||
Actuarial changes arising from changes in demographic assumptions | (11,285) | ||
Fair value of assets [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | 29,086 | 28,339 | 23,794 |
Current service cost | 0 | 0 | 0 |
Interest (cost) income | 731 | 979 | 666 |
Return on plan assets | 374 | 483 | |
Experience (loss) gain | 0 | 0 | 0 |
Investment return | 138 | 67 | |
Actuarial changes arising from changes in financial assumptions | 0 | 0 | 0 |
Employer contributions | 1,709 | 1,903 | 4,780 |
Benefits paid | (6,117) | (1,086) | (1,451) |
Adjustments | 0 | (1,187) | 0 |
Ending balance | 25,783 | 29,086 | 28,339 |
Past service cost | 0 | ||
Curtailment / Settlement | 0 | ||
Actuarial changes arising from changes in demographic assumptions | 0 | ||
Other employee benefits liability [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | (642) | (680) | (612) |
Current service cost | 0 | 0 | 0 |
Interest (cost) income | 0 | 0 | 0 |
Return on plan assets | 0 | 0 | |
Experience (loss) gain | 0 | 0 | 0 |
Investment return | 0 | 0 | |
Actuarial changes arising from changes in financial assumptions | 0 | 0 | |
Employer contributions | 0 | 0 | 0 |
Benefits paid | 0 | 0 | 0 |
Adjustments | (7) | 38 | (68) |
Ending balance | (649) | $ (642) | $ (680) |
Past service cost | 0 | ||
Curtailment / Settlement | 0 | ||
Actuarial changes arising from changes in demographic assumptions | $ 0 |
Net employee defined benefit _5
Net employee defined benefit - Summary of Sensitivity Analysis for Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discount rate [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Actuarial assumption rate | 2.00% | 2.50% | 3.90% |
Compensation - salary increase [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Actuarial assumption rate | 4.00% | 4.00% | 4.00% |
Mortality [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Demographic assumptions, Mortality | Panama expirence | RP - 2000 no collar | RP -2000 no collar |
Termination [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Actuarial assumption rate | 13.00% | 13.00% | |
Demographic assumptions, Mortality | 2003 SoA pension plan | ||
Male [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Retirement age | 62 years | 62 years | 62 years |
Female [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Retirement age | 57 years | 57 years | 57 years |
Net employee defined benefit _6
Net employee defined benefit - Summary of Additional Information about Sensitivity Analysis for Actuarial Assumptions (Detail) - Discount rate (0.5% movement) [member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Increase | $ 2,318 | $ 709 | $ 538 |
Decrease | $ (2,554) | $ (751) | $ (569) |
Net employee defined benefit _7
Net employee defined benefit - Summary of Expected Contribution Payments to Defined Benefit Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Total expected payments | $ 25,188 | $ 33,226 |
Up to one year [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total expected payments | 2,299 | 5,169 |
More than one year but less than five years [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total expected payments | 8,777 | 14,008 |
Over five years [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total expected payments | $ 14,112 | $ 14,049 |
Intangible Assets - Summary of
Intangible Assets - Summary of Reconciliation of Changes in Intangible Assets and Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | $ 108,116 | $ 101,168 | |
Ending balance | 95,568 | 108,116 | $ 101,168 |
Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 181,515 | 156,136 | 125,954 |
Additions | 16,419 | 25,465 | 30,182 |
Disposals | (5,546) | (86) | 0 |
Reclassifications | 0 | 0 | 0 |
Ending balance | 192,388 | 181,515 | 156,136 |
Accumulated amortization and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (73,399) | (54,968) | (44,839) |
Amortization for the year | (25,493) | (18,437) | (10,129) |
Disposals | 3,092 | 6 | 0 |
Impairment loss | (1,020) | ||
Ending balance | (96,820) | (73,399) | (54,968) |
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 20,380 | 20,380 | |
Ending balance | 20,380 | 20,380 | 20,380 |
Goodwill [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 20,380 | 20,380 | 20,380 |
Additions | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Reclassifications | 0 | 0 | 0 |
Ending balance | 20,380 | 20,380 | 20,380 |
Goodwill [member] | Accumulated amortization and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 0 | 0 | 0 |
Amortization for the year | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Impairment loss | 0 | ||
Ending balance | 0 | 0 | 0 |
License and software rights [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 69,802 | 39,156 | |
Ending balance | 60,208 | 69,802 | 39,156 |
License and software rights [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 143,201 | 94,124 | 74,683 |
Additions | 4,378 | 8,503 | 2,711 |
Disposals | (5,546) | (86) | 0 |
Reclassifications | 13,975 | 40,660 | 16,730 |
Ending balance | 156,008 | 143,201 | 94,124 |
License and software rights [member] | Accumulated amortization and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (73,399) | (54,968) | (44,839) |
Amortization for the year | (25,493) | (18,437) | (10,129) |
Disposals | 3,092 | 6 | 0 |
Impairment loss | 0 | ||
Ending balance | (95,800) | (73,399) | (54,968) |
Intangible in process [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 17,934 | 41,632 | |
Ending balance | 14,980 | 17,934 | 41,632 |
Intangible in process [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 17,934 | 41,632 | 30,891 |
Additions | 12,041 | 16,962 | 27,471 |
Disposals | 0 | 0 | 0 |
Reclassifications | (13,975) | (40,660) | (16,730) |
Ending balance | 16,000 | 17,934 | 41,632 |
Intangible in process [member] | Accumulated amortization and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 0 | 0 | 0 |
Amortization for the year | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Impairment loss | (1,020) | ||
Ending balance | $ (1,020) | $ 0 | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Discount rates | 13.80% | ||
Increase in discount rate | 15.20% | ||
Intangible assets | $ 95,568 | $ 108,116 | $ 101,168 |
Percentage of rise in increase in discount rate | 1.40% | ||
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Estimated recoverable amount | $ 2,500,000 | $ 4,300,000 | |
Percentage of growth rate | 4.50% | 3.00% | |
Discount rates | 13.80% | 13.50% | |
Intangible assets | $ 20,380 | $ 20,380 | $ 20,380 |
Capitalised development expenditure [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 10,800 | $ 23,600 | |
Amortization expense | 2,500 | ||
Capitalised development expenditure [member] | Covid 19 [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairment loss | $ 1,000 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets [abstract] | ||
Interest receivable | $ 6,457 | $ 12,838 |
Other | 1,348 | 1,368 |
Other currents assets | 7,805 | 14,206 |
Guarantee deposits | 3,010 | 4,121 |
Deposits for litigation | 8,126 | 10,548 |
Other assets | 3,212 | 3,212 |
Other non - current assets | 14,348 | 17,881 |
Other current and non-current assets | $ 22,153 | $ 32,087 |
Loans and borrowings - Summary
Loans and borrowings - Summary of Loans and borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | $ 1,163,900 | $ 1,060,765 |
Current maturities | (127,946) | (122,582) |
Loans and borrowings long-term | 1,035,954 | 938,183 |
Borrowing due through 2029 [member] | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | 663,293 | 736,790 |
Borrowing due through 2029 [member] | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | 279,778 | $ 323,975 |
Senior Convertible Notes Due Through 2025 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | $ 220,829 | |
Effective interest rates of borrowings | 14.68% | |
Bottom of range [member] | Borrowing due through 2029 [member] | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Effective interest rates of borrowings | 1.49% | 1.49% |
Bottom of range [member] | Borrowing due through 2029 [member] | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Effective interest rates of borrowings | 0.42% | 2.15% |
Top of range [member] | Borrowing due through 2029 [member] | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Effective interest rates of borrowings | 4.45% | 4.90% |
Top of range [member] | Borrowing due through 2029 [member] | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Effective interest rates of borrowings | 1.66% | 3.50% |
Loans and borrowings - Summar_2
Loans and borrowings - Summary of Maturities of Loans and borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings maturity | $ 1,163,900 | $ 1,060,765 |
2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings maturity | 127,946 | |
2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings maturity | 116,767 | |
2023 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings maturity | 96,132 | |
2024 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings maturity | 158,459 | |
2025 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings maturity | 375,385 | |
Thereafter [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings maturity | $ 289,211 |
Loans and borrowings - Summar_3
Loans and borrowings - Summary of Senior convertible notes (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Dec. 31, 2020 | |
Disclosure of Detailed Information Of Senior Convertible Notes Explanatory [Line Items] | ||
Proceeds from Issue of Convertible Notes | $ 342,900 | |
Senior Convertible Notes [Member] | ||
Disclosure of Detailed Information Of Senior Convertible Notes Explanatory [Line Items] | ||
Debt Instrument Maturity Date | Apr. 15, 2025 | Apr. 30, 2020 |
Nominal issue | $ 350,000 | $ 350,000 |
Borrowing costs recognised as expense | (7,102) | |
Proceeds from Issue of Convertible Notes | $ 342,898 |
Loans and borrowings - Addition
Loans and borrowings - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||||
Debt including current maturities | $ 1,163,900 | $ 1,060,765 | ||
Support from Export-Import Bank for net purchase price of aircraft | 80.00% | |||
Net change in fair value of derivatives | $ (107,139) | 0 | $ 0 | |
Export-Import Bank of United States [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding indebtedness | 160,700 | 227,300 | ||
Borrowing on which fixed applicable interest rate is exercised | $ 83,600 | 128,100 | ||
Senior Convertible Notes [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt Instrument Maturity Date | Apr. 15, 2025 | Apr. 30, 2020 | ||
Description of conversion ratio of senior convertible notes | The initial conversion rate is 19.3564 shares per $1,000 principal amount of notes | |||
Conversion price per principal amount | $ 51.66 | |||
Net change in fair value of derivatives | $ (107,100) | |||
Borrowing interest rate | 4.50% | |||
Nominal Issue | $ 350,000 | 350,000 | ||
Fair Value | 245,600 | |||
Fair value of the embedded derivative at initial recognition | $ 138,400 | |||
Finance lease [member] | Fixed interest rate [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt including current maturities | 579,700 | 608,300 | ||
Finance lease [member] | Floating interest rate [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt including current maturities | $ 202,600 | $ 225,200 |
Loans and borrowings - Summar_4
Loans and borrowings - Summary of Finance Cost and Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Finance income | $ 19,963 | $ 24,405 | $ 23,628 |
Finance cost | (73,045) | (57,432) | (50,825) |
Interest income on short-term bank deposits [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance income | 543 | 1,432 | 1,670 |
Interest income on investment [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance income | 19,420 | 22,973 | 21,958 |
Interests expense on bank loans [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance cost | (29,711) | (36,676) | (34,687) |
Interest Expense on Senior Convertible Notes [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance cost | (23,571) | 0 | 0 |
Interest on factoring [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance cost | (256) | (1,316) | (1,163) |
Interest on lease liabilities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance cost | (10,734) | (14,140) | (14,975) |
Other finance cost [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance cost | $ (8,773) | $ (5,300) | $ 0 |
Loans and borrowings - Changes
Loans and borrowings - Changes in Liabilities Arising from Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning Balance | $ 1,254,891 | $ 1,669,224 |
Beginning Balance | 1,365,329 | |
Cash flows | 93,609 | (545,334) |
Foreign Exchange Movement | (347) | (84) |
Leases | 19,995 | 32,034 |
Concession Covid-19 | (489) | 0 |
Other | (117,677) | 99,051 |
Ending balance | 1,360,420 | 1,254,891 |
Loans and borrowings [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning Balance | 1,060,765 | 1,293,541 |
Cash flows | 220,812 | (331,827) |
Foreign Exchange Movement | 0 | 0 |
Leases | 0 | 0 |
Concession Covid-19 | 0 | 0 |
Other | (117,677) | 99,051 |
Ending balance | 1,163,900 | 1,060,765 |
Lease liability [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning Balance | 304,564 | 375,683 |
Cash flows | (93,213) | (103,069) |
Foreign Exchange Movement | (347) | (84) |
Leases | 19,995 | 32,034 |
Concession Covid-19 | (489) | 0 |
Other | 0 | 0 |
Ending balance | 230,510 | 304,564 |
Dividends payable [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning Balance | (110,438) | |
Beginning Balance | 0 | |
Cash flows | (33,990) | (110,438) |
Foreign Exchange Movement | 0 | 0 |
Leases | 0 | 0 |
Concession Covid-19 | 0 | 0 |
Other | 0 | 0 |
Ending balance | $ (33,990) | $ (110,438) |
Trade, Other Payables and Fin_3
Trade, Other Payables and Financial Liabilities - Summary of Trade, Other Payables and Financial Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade and other payables [line items] | ||
Account payables | $ 63,461 | $ 119,332 |
Account payables to related parties | 2,970 | 14,086 |
Trade payable | 66,431 | 133,418 |
Trade, other payables and financial liabilities | 66,683 | 133,502 |
Others [member] | ||
Trade and other payables [line items] | ||
Other payables and financial liabilities | $ 252 | $ 84 |
Accrued Expenses Payable - Summ
Accrued Expenses Payable - Summary of Accrued Expenses Payable (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accrued expenses [abstract] | ||
Accruals and estimations | $ 23,589 | $ 4,616 |
Labor related provisions | 6,541 | 44,401 |
Liability for social security contributions | 3,275 | 5,617 |
Other | 590 | 739 |
Accrued expenses payable | $ 33,995 | $ 55,373 |
Accrued Expenses Payable - Addi
Accrued Expenses Payable - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued expenses [abstract] | |
Accrual expense settlement period | 12 months |
Other Long-term Liabilities - S
Other Long-term Liabilities - Summary of Other Long-term Liabilities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of other long-term liabilities [line items] | |
Beginning balance | $ 195,837 |
Increases | 41,795 |
Used | (4,047) |
Adjustment | (178) |
Effect of movements in exchange rates | (2,108) |
Unused amounts reversed | (990) |
Unwinding of discount and changes in the discount rate | 9,605 |
Ending balance | 239,914 |
Current and non - current | |
Current | 23,589 |
Non-current | 216,325 |
Ending balance | 239,914 |
Provision for litigations [member] | |
Disclosure of other long-term liabilities [line items] | |
Beginning balance | 12,961 |
Increases | 59 |
Used | 0 |
Adjustment | 0 |
Effect of movements in exchange rates | (2,108) |
Unused amounts reversed | (990) |
Unwinding of discount and changes in the discount rate | 0 |
Ending balance | 9,922 |
Current and non - current | |
Current | 0 |
Non-current | 9,922 |
Ending balance | 9,922 |
Provision for return condition [member] | |
Disclosure of other long-term liabilities [line items] | |
Beginning balance | 133,014 |
Increases | 41,051 |
Used | 0 |
Adjustment | 0 |
Effect of movements in exchange rates | 0 |
Unused amounts reversed | 0 |
Unwinding of discount and changes in the discount rate | 8,773 |
Ending balance | 182,838 |
Current and non - current | |
Current | 17,283 |
Non-current | 165,555 |
Ending balance | 182,838 |
Dismantling provision [member] | |
Disclosure of other long-term liabilities [line items] | |
Beginning balance | 24,327 |
Increases | 0 |
Used | 0 |
Adjustment | (178) |
Effect of movements in exchange rates | 0 |
Unused amounts reversed | 0 |
Unwinding of discount and changes in the discount rate | 832 |
Ending balance | 24,981 |
Current and non - current | |
Current | 1,931 |
Non-current | 23,050 |
Ending balance | 24,981 |
Other long term liabilities [member] | |
Disclosure of other long-term liabilities [line items] | |
Beginning balance | 25,535 |
Increases | 685 |
Used | (4,047) |
Adjustment | 0 |
Effect of movements in exchange rates | 0 |
Unused amounts reversed | 0 |
Unwinding of discount and changes in the discount rate | 0 |
Ending balance | 22,173 |
Current and non - current | |
Current | 4,375 |
Non-current | 17,798 |
Ending balance | $ 22,173 |
Other Long-term Liabilities - A
Other Long-term Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current liabilities [abstract] | ||
Amount in escrow account | $ 8.1 | $ 10.4 |
Provision for maintenance | 19 | $ 22.4 |
Trust fund | 3 | |
Provision for return condition | 17.4 | |
Provision for Dismantaling | $ 1.9 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current taxes expense | |||
Current period | $ (14,032) | $ (55,847) | $ (35,258) |
Adjustment for prior period | 162 | 693 | 261 |
Current taxes expense, total | (13,870) | (55,154) | (34,997) |
Deferred taxes expenses | |||
Origination and reversal of temporary differences | 37,587 | 8,717 | 467 |
Total income tax expense | $ 23,717 | $ (46,437) | $ (34,530) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax rate | 25.00% | 25.00% | 25.00% |
Deferred tax assets | $ 35,595 | $ 19,215 | |
Temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized | 272,500 | ||
Copa Airlines [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 11,800 | ||
Duaration of tax loss carryforward | 3 years | ||
Tax Losses Carry Forward Start Year | 2023 years | ||
Colombia [member] | Tax year 2021 [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax rate | 31.00% | ||
Colombia [member] | Tax year 2021 [member] | Copa Airlines [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Effective rate | (25.00%) | ||
Colombia [member] | Tax year 2021 [member] | Copa Colombia [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Effective rate | (31.00%) | ||
Colombia [member] | Tax year 2021 [member] | Oval [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Effective rate | (21.00%) | ||
Colombia [member] | Tax year 2022 [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax rate | 30.00% | ||
Carried forward tax losses of Copa Colombia [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 9,100 | $ 1,700 | |
Duaration of tax loss carryforward | 7 years | ||
Tax Losses Carry Forward Start Year | 2022 years |
Income Taxes - Summary of Balan
Income Taxes - Summary of Balances of Deferred Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax liabilities | |||
Maintenance deposits | $ (23,891) | $ (29,863) | |
Prepaid dividend tax | 0 | (7,403) | |
Property and equipment | 2,108 | (2,896) | |
Other | (1,500) | (4,690) | |
Set off tax | 1,093 | 1,455 | |
Deferred tax liabilities | (22,190) | (43,397) | |
Deferred tax assets | |||
Provision for return conditions | 12,665 | 10,095 | |
Air traffic liability | 2,486 | 2,039 | |
Other provisions | 624 | 6,826 | |
Tax Loss | 20,913 | 1,710 | |
Set off tax | (1,093) | (1,455) | |
Deferred tax assets | 35,595 | 19,215 | |
Total deferred taxes | 13,405 | (24,182) | |
Deferred tax liabilities | |||
Maintenance deposits | (5,972) | 0 | $ 3,277 |
Prepaid dividend tax | (7,403) | (1,456) | (5,244) |
Property and equipment | (5,004) | (4,500) | (2,136) |
Other | (3,190) | (1) | 641 |
Set off tax | 362 | 414 | (63) |
Deferred tax liabilities | (21,207) | (5,543) | (3,525) |
Deferred tax assets | |||
Provision for return conditions | (2,570) | (2,959) | 723 |
Air traffic liability | (447) | (247) | (511) |
Other provisions | 6,202 | (2,139) | (271) |
Tax Loss | (19,203) | 2,585 | 3,054 |
Set off tax | (362) | (414) | 63 |
Deferred tax assets | (16,380) | (3,174) | 3,058 |
Origination and reversal of temporary differences | $ (37,587) | $ (8,717) | $ (467) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement [Line Items] | |||
Income taxes at Panamanian statutory rates | 25.00% | 25.00% | 25.00% |
Stations - Taxable/Panama | (13.20%) | (13.70%) | (19.30%) |
Stations - Taxable/Non Panama | (1.50%) | 2.40% | 9.00% |
Stations - Non Taxable/Non panama | (5.30%) | (4.90%) | 3.30% |
Dividend tax | (1.20%) | 7.20% | 10.30% |
(Over) under provided in prior periods | 0.00% | (0.20%) | (0.20%) |
Provision for income taxes | 3.80% | 15.80% | 28.10% |
Net income | $ (607,062) | $ 247,002 | $ 88,198 |
Total income tax expense | (23,717) | 46,437 | 34,530 |
Profit excluding income tax | (630,779) | 293,439 | 122,728 |
Income taxes at Panamanian statutory rates | (157,695) | 73,360 | 30,682 |
Stations - Taxable/Panama | 83,071 | (40,205) | (23,745) |
Stations - Taxable/Non Panama | 9,850 | 7,043 | 11,052 |
Stations - Non Taxable/Non panama | 33,728 | (14,444) | 4,106 |
Dividend tax | 7,491 | 21,376 | 12,696 |
(Over) under provided in prior periods | (162) | (693) | (261) |
Total income tax expense | $ (23,717) | $ 46,437 | $ 34,530 |
Accounts and Transactions wit_3
Accounts and Transactions with Related Parties - Summary of Accounts and Transactions with Related Parties (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | ||
Account receivable | $ 1,429 | $ 147 |
Account payable | 2,970 | 14,086 |
Panama air cargo terminal [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 186 | 101 |
Account payable | 40 | 250 |
Banco general, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 1,231 | 24 |
Account payable | 0 | 151 |
Petroleos delta, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 12 | 22 |
Account payable | 2,476 | 13,330 |
ASSA compania de seguros, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 358 | 283 |
Desarrollo inmobiliario del este, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 51 | 20 |
Motta international, S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 0 | 32 |
Cable onda [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 9 | 0 |
Galindo, arias and lopez [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | $ 36 | $ 0 |
Accounts and Transactions wit_4
Accounts and Transactions with Related Parties - Summary of Related Party Transactions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Petroleos delta, S. A. [member] | Purchase of jet fuel [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | $ 102,702 | $ 376,765 | $ 398,733 |
ASSA compania de seguros, S. A. [member] | Insurance [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 7,147 | 11,215 | 9,735 |
Desarrollo inmobiliario del este, S. A. [member] | Property leasing [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 3,301 | 4,017 | 3,838 |
Profuturo administradora de fondos de pension y cesantia [member] | Payments [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 2,839 | 5,145 | 4,716 |
Motta International [member] | Purchase [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 550 | 1,854 | 1,585 |
Cable Onda, S. A. [member] | Communications [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 703 | 1,396 | 1,687 |
GBM International, Inc. [member] | Technological support [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 146 | 240 | 231 |
Galindo, arias and lopez [member] | Legal services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 236 | 309 | 490 |
Global Brands Panama, S. A. [member] | Purchase [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 31 | 108 | 55 |
Panama air cargo terminal [member] | Handling [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 2,037 | 3,522 | 5,849 |
Televisora Nacional, S.A. [member] | Communications [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 13 | 0 | 0 |
Banco general, S. A. [member] | Interest income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | $ (2,657) | $ (4,181) | $ (3,781) |
Accounts and Transactions wit_5
Accounts and Transactions with Related Parties - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)ft² | Dec. 31, 2019USD ($) | |
Desarrollo inmobiliario del este, S. A. [member] | Desarrollo inmobiliario [member] | ||
Disclosure of transactions between related parties [line items] | ||
Approximate area of building | ft² | 105,981 | |
Number of lease floor | five | |
Corporacion de inversiones areas, S. A [member] | Desarrollo inmobiliario [member] | Class B shares [member] | ||
Disclosure of transactions between related parties [line items] | ||
Percentage of ownership | 100.00% | |
Executive officers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Future payments pursuant to a non-compete agreement | $ 3 | |
Petroleos delta, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Contract agreement term | two years | |
The last contract subscribed | June, 2020 | |
Banco General, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Interest receivable | $ 1 | $ 2.1 |
Accounts and Transactions wit_6
Accounts and Transactions with Related Parties - Summary of Key Management Personnel Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits | $ 3,177 | $ 4,969 | $ 6,104 |
Post-employment pension | 61 | 95 | 117 |
Share-based payments | 2,362 | 3,246 | 5,092 |
Total | $ 5,600 | $ 8,310 | $ 11,313 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
Feb. 28, 2016 | Nov. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of equity [line items] | ||||||
Dividend payable annual percentage | 40.00% | |||||
Dividends payable per share | $ 0.80 | $ 0.65 | ||||
Treasury stock [member] | ||||||
Disclosure of equity [line items] | ||||||
Share repurchase program authorized amount | $ 250,000,000 | |||||
Number of shares repurchase program | 2,310,492 | |||||
Share repurchase program period value | $ 136,400,000 | |||||
Accelerated share repurchase [member] | ||||||
Disclosure of equity [line items] | ||||||
Share repurchase program period value | $ 113,600,000 | |||||
Class A common stock [member] | ||||||
Disclosure of equity [line items] | ||||||
Common stock, shares authorised | 80,000,000 | |||||
Common stock, shares issued | 33,861,872 | 33,835,747 | ||||
Common stock, shares outstanding | 31,421,265 | 31,337,856 | 31,257,686 | |||
Class B common stock [member] | ||||||
Disclosure of equity [line items] | ||||||
Common stock, shares authorised | 80,000,000 | |||||
Common stock, shares issued | 10,938,125 | 10,938,125 | ||||
Common stock, shares outstanding | 10,938,125 | 10,938,125 | 10,938,125 | |||
Class C common stock [member] | ||||||
Disclosure of equity [line items] | ||||||
Common stock, shares authorised | 80,000,000 | |||||
Common stock, shares outstanding | 0 | 0 |
Share-based Payments - Addition
Share-based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 31, 2020 | Feb. 28, 2020 | Jul. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Share-based compensation expense | $ 5.3 | $ 6.1 | $ 7.1 | ||||
Fair value of non-vested stock awards | $ 93.99 | $ 93.99 | $ 96.46 | $ 96.46 | |||
Estimated compensation cost for next year | $ 1.9 | $ 4 | |||||
Weighted average remaining contractual life | 1 year 7 months 6 days | 2 years 1 month 6 days | |||||
Expected term | 10 years | ||||||
Bottom of range [member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Vesting period | 3 years | ||||||
Top of range [member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Vesting period | 5 years | ||||||
2017 [member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Estimated compensation cost for next year | $ 1.4 |
Share-based Payments - Summary
Share-based Payments - Summary of Terms and Conditions, Relating to the Grants of the Non-vested Stock Award under the Equity Compensation Plan (Detail) | 12 Months Ended |
Dec. 31, 2020shares | |
April, 2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 4,915 |
Vesting conditions | 15% first three anniversaries 25% fourth 30% fifth anniversary |
Contractual life | 5 years |
June, 2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 5,839 |
Vesting conditions | 15% first three anniversaries 25% fourth 30% fifth anniversary |
Contractual life | 5 years |
February, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 147,000 |
Vesting conditions | 15% first three anniversaries 25% fourth 30% fifth anniversary |
Contractual life | 5 years |
February, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 63,000 |
Vesting conditions | Fifth anniversary |
Contractual life | 5 years |
May, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 7,899 |
Vesting conditions | 15% first three anniversaries 25% fourth 30% fifth anniversary |
Contractual life | 5 years |
February, 2017 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 22,012 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 years |
February, 2018 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 21,556 |
Vesting conditions | 7% first month 31% first three anniversaries |
Contractual life | 3 years |
February, 2018 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 14,379 |
Vesting conditions | 33% first three anniversaries |
Contractual life | 3 years |
February, 2018 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 1,316 |
Vesting conditions | 15% first three anniversaries 25% fourth 30% fifth anniversary |
Contractual life | 5 years |
July, 2018 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 6,104 |
Vesting conditions | Third anniversary |
Contractual life | 3 years |
February, 2017 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 11,980 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 years |
February, 2017 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 2,237 |
Vesting conditions | Third anniversary |
Contractual life | 3 years |
February, 2019 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 15,951 |
Vesting conditions | 1% first month 33% first three anniversaries |
Contractual life | 3 years |
June, 2019 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 9,256 |
Vesting conditions | 33% first three anniversaries |
Contractual life | 3 years |
June, 2019 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 977 |
Vesting conditions | 33% first three anniversaries |
Contractual life | 3 years |
August, 2019 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 1,039 |
Vesting conditions | 33% first three anniversaries |
Contractual life | 3 years |
December, 2019 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 1,724 |
Vesting conditions | 100% first anniversary |
Contractual life | 1 year |
February, 2020 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 24,650 |
Vesting conditions | 1% first month 33% first three anniversaries |
Contractual life | 3 years |
December, 2020 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 3,551 |
Vesting conditions | 100% first anniversary |
Contractual life | 1 year |
Share-based Payments - Summar_2
Share-based Payments - Summary of non-vested stock award activity (Detail) - Non-vested [member] | 12 Months Ended | ||
Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Non-vested at January 1 | 211,205 | 271,904 | 304,153 |
Granted | 28,201 | 28,947 | 43,355 |
Vested | (83,409) | (80,170) | (72,045) |
Forfeited | (2,076) | (9,476) | (3,559) |
Non-vested at December 31 | 153,921 | 211,205 | 271,904 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of the Income (Loss) and Share Data Used in the Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per share - | |||
Net (loss) income | $ (607,062) | $ 247,002 | $ 88,198 |
Weighted-average shares outstanding | 42,338 | 42,258 | 42,182 |
Non-vested dividend participating awards | 170 | 225 | 274 |
Adjusted weighted average number of ordinary shares outstanding | 42,508 | 42,483 | 42,456 |
Basic and diluted earnings (loss) per share | $ (14.28) | $ 5.81 | $ 2.08 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)AircraftOrganization | Dec. 31, 2021USD ($)Contract | Dec. 31, 2019USD ($) | |
Commitments and contingencies [line items] | |||
Number of company's employees | Aircraft | 418 | ||
Percentage of employees unionized | 39.00% | ||
Number of employees | Aircraft | 418 | ||
Debt including current maturities | $ 1,163,900 | $ 1,060,765 | |
Panama Tax Authority | |||
Commitments and contingencies [line items] | |||
Duration of statute of limiatation for income tax | 3 years | ||
Duration of statute of limiatation for dividend tax | 15 years | ||
Unsecured Credit Facilities [Member] | Covid 19 Member [Member] | |||
Commitments and contingencies [line items] | |||
Debt including current maturities | $ 200,000 | $ 200,000 | |
Secured Credit Facilities [Member] | Covid 19 Member [Member] | |||
Commitments and contingencies [line items] | |||
Debt including current maturities | 105,000 | ||
Committed Credit Facilities [Member] | Covid 19 Member [Member] | |||
Commitments and contingencies [line items] | |||
Debt including current maturities | $ 305,000 | $ 305,000 | |
Labor unions [member] | |||
Commitments and contingencies [line items] | |||
Number of company's employees | 5,667 | ||
Percentage of employees unionized | 66.30% | ||
Number of union organizations | Organization | 9 | ||
Number of employees | 5,667 | ||
Labor unions [member] | Panama [member] | |||
Commitments and contingencies [line items] | |||
Number of union organizations | Organization | 5 | ||
Collective bargaining agreements terms | 4 years | ||
Labor unions [member] | Colombia [member] | |||
Commitments and contingencies [line items] | |||
Number of union organizations | Organization | 4 | ||
Labor unions [member] | Bottom of range [member] | Colombia [member] | |||
Commitments and contingencies [line items] | |||
Collective bargaining agreements terms | 2 years | ||
Labor unions [member] | Top of range [member] | Colombia [member] | |||
Commitments and contingencies [line items] | |||
Collective bargaining agreements terms | 3 years | ||
Purchase contracts [member] | Boeing Company [member] | |||
Commitments and contingencies [line items] | |||
Predelivery Deposits | $ 410,900 | 468,800 | |
Purchase contracts [member] | Later than one year and not later than six years [member] | |||
Commitments and contingencies [line items] | |||
Number of purchase contracts subscribed | Contract | 60 | ||
Lines of credit for working capital and letters of credit [member] | |||
Commitments and contingencies [line items] | |||
Letters of credit maintained | 305,000 | ||
Line of credit facility outstanding | $ 44,300 | $ 25,800 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Firm Commitment To Purchase Asset (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Firm Commitment To Purchase Asset [Line Items] | |
Contractual capital commitments | $ 2,975,408 |
2021 | |
Firm Commitment To Purchase Asset [Line Items] | |
Contractual capital commitments | 560,914 |
2022 | |
Firm Commitment To Purchase Asset [Line Items] | |
Contractual capital commitments | 201,544 |
2023 | |
Firm Commitment To Purchase Asset [Line Items] | |
Contractual capital commitments | 408,145 |
2024 | |
Firm Commitment To Purchase Asset [Line Items] | |
Contractual capital commitments | 439,433 |
2025 | |
Firm Commitment To Purchase Asset [Line Items] | |
Contractual capital commitments | 514,549 |
Thereafter | |
Firm Commitment To Purchase Asset [Line Items] | |
Contractual capital commitments | $ 850,823 |
Financial Instrument - Risk Man
Financial Instrument - Risk Management and Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |||
Mark to market derivative income (expense) | $ 0 | $ 0 | |
Debt including current maturities | $ 1,163,900 | $ 1,060,765 | |
Interest rate swap contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Description of impact of hypothetical interest rates on the variable-rate debt and marketable securities | If the interest rate average is 100 basis points more in 2020, the variable-rate debt interest expense would increase by approximately $2.8 million and the estimated fair value of the fixed-rate debt would decreased– by approximately $1.5 million. | ||
Average interest rate on derivatives | 1.00% | ||
Change in interest expense | $ 2,800 | ||
Increase decrease in fair value of debt | $ 1,500 | ||
Brazil, Brazil real [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of foreign currency risk revenue | 9.50% | 8.70% | |
Colombia, pesos [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of foreign currency risk revenue | 9.10% | 8.30% | |
Argentina, pesos [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of foreign currency risk revenue | 4.00% | 4.80% | |
Currency risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of foreign exchange risk revenue | 65.70% | ||
Percentage of foreign exchange risk expenses | 86.00% | ||
Borrowing due through 2029 [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Debt including current maturities | $ 663,293 | $ 736,790 | |
Borrowing due through 2029 [member] | Fixed interest rate [member] | Bottom of range [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fixed interest rates | 1.49% | 1.49% | |
Fixed Rated Debt [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Debt including current maturities | $ 663,300 | ||
Variable Rated Debt [Member] | Fixed interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Debt including current maturities | $ 279,800 | ||
Fuel derivative instruments [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative instrument hypothetical increases percentage | 10.00% | ||
Fuel derivative instruments [member] | 2019 projection [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative instrument expense increase | $ 21,300 |
Financial Instrument - Risk M_2
Financial Instrument - Risk Management and Fair Value - Summary of Foreign Currency Risk Exposure (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 119,065 | $ 158,732 | $ 156,158 | $ 238,792 |
Accounts receivable, net | 65,689 | 131,920 | ||
Other assets | 22,153 | 32,087 | ||
Currency risk [member] | ||||
Assets | ||||
Cash and cash equivalents | 12,322 | 22,818 | ||
Accounts receivable, net | 27,670 | 73,018 | ||
Other assets | 18,942 | 15,726 | ||
Total assets | 58,934 | 111,562 | ||
Liabilities | ||||
Accounts payable | 20,142 | 51,313 | ||
Taxes payable | 13,757 | 37,137 | ||
Other liabilities | 11,387 | 18,513 | ||
Total liabilities | 45,286 | 106,963 | ||
Net position | $ 13,648 | $ 4,599 |
Financial Instrument - Risk M_3
Financial Instrument - Risk Management and Fair Value - Movement in Allowance for Impairment for Short and Long-term Investments at Amortized Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Balance at beginning of year | $ (957) | $ (1,218) |
(Additions)/Reversal | (260) | 261 |
Balance at end of year | $ (1,217) | $ (957) |
Financial Instrument - Risk M_4
Financial Instrument - Risk Management and Fair Value - Summary of Credit Risk Exposure on Trade Receivables using Provision Matrix (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of credit risk exposure [line items] | ||
Gross carrying amount | $ 72,172 | $ 137,499 |
Expected credit loss | $ 6,483 | $ 5,579 |
Current [member] | ||
Disclosure of credit risk exposure [line items] | ||
Expected credit loss rate | 0.00% | 0.10% |
Gross carrying amount | $ 50,180 | $ 111,778 |
Expected credit loss | $ 20 | $ 99 |
Past due 1 to 30 days [member] | ||
Disclosure of credit risk exposure [line items] | ||
Expected credit loss rate | 0.10% | 2.30% |
Gross carrying amount | $ 3,554 | $ 6,170 |
Expected credit loss | $ 3 | $ 141 |
Past due 31 to 60 days [member] | ||
Disclosure of credit risk exposure [line items] | ||
Expected credit loss rate | 2.50% | 3.70% |
Gross carrying amount | $ 1,867 | $ 2,786 |
Expected credit loss | $ 46 | $ 104 |
Past due 61 to 90 days [member] | ||
Disclosure of credit risk exposure [line items] | ||
Expected credit loss rate | 3.70% | 12.00% |
Gross carrying amount | $ 1,228 | $ 1,636 |
Expected credit loss | $ 46 | $ 196 |
More than 90 days [member] | ||
Disclosure of credit risk exposure [line items] | ||
Expected credit loss rate | 41.50% | 33.30% |
Gross carrying amount | $ 15,343 | $ 15,129 |
Expected credit loss | $ 6,368 | $ 5,039 |
Financial Instrument - Risk M_5
Financial Instrument - Risk Management and Fair Value - Summary of Financial Liabilities According to Maturity Date (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | $ 1,460,841 | $ 1,498,747 |
Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 312,577 | 387,408 |
Between 1 and 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 981,675 | 768,665 |
More than 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 305,876 | 504,009 |
Loans and Borrowings [Member | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 1,163,900 | 1,060,765 |
Loans and Borrowings [Member | Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 155,902 | 146,434 |
Loans and Borrowings [Member | Between 1 and 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 834,145 | 556,257 |
Loans and Borrowings [Member | More than 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 297,156 | 494,944 |
Lease liability [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 230,510 | 304,564 |
Lease liability [member] | Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 90,244 | 107,556 |
Lease liability [member] | Between 1 and 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 147,530 | 212,408 |
Lease liability [member] | More than 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 8,720 | 9,065 |
Accounts payable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 63,461 | 119,332 |
Accounts payable [member] | Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 63,461 | 119,332 |
Accounts payable [member] | Between 1 and 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 0 | 0 |
Accounts payable [member] | More than 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 0 | 0 |
Account payable to related parties [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 2,970 | 14,086 |
Account payable to related parties [member] | Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 2,970 | 14,086 |
Account payable to related parties [member] | Between 1 and 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 0 | 0 |
Account payable to related parties [member] | More than 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 0 | 0 |
Contractual cash flow [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 1,600,129 | 1,660,082 |
Contractual cash flow [member] | Loans and Borrowings [Member | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 1,287,203 | 1,197,635 |
Contractual cash flow [member] | Lease liability [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 246,495 | 329,029 |
Contractual cash flow [member] | Accounts payable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 63,461 | 119,332 |
Contractual cash flow [member] | Account payable to related parties [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | $ 2,970 | $ 14,086 |
Financial Instrument - Risk M_6
Financial Instrument - Risk Management and Fair Value - Summary of Carrying Amount and Fair Values of Financial Assets and Financial Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Long-term investments | $ 119,617 | $ 134,347 |
Loans and borrowings | 1,163,900 | 1,060,765 |
Financial Assets at Fair Value, Class [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Long-term investments | 120,938 | 155,051 |
Financial Liabilities at Fair Value, Class [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Loans and borrowings | $ 1,327,282 | $ 1,068,961 |
Financial instruments - Risk _3
Financial instruments - Risk management and fair value- Summary of Company's financial instruments measured at fair value (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of assets [line items] | ||
Asset held for sale | $ 135,542 | $ 120,006 |
Total assets | 3,853,384 | 4,357,378 |
Derivative financial instruments | 245,560 | |
Total liabilities | 2,569,826 | $ 2,422,472 |
Non-recurring fair value measurement | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 135,542 | |
Non-recurring fair value measurement | Assets Held For Sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Asset held for sale | 135,542 | |
Non-recurring fair value measurement | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | |
Non-recurring fair value measurement | Level 1 of fair value hierarchy | Assets Held For Sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Asset held for sale | 0 | |
Non-recurring fair value measurement | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 0 | |
Non-recurring fair value measurement | Level 2 of fair value hierarchy | Assets Held For Sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Asset held for sale | 0 | |
Non-recurring fair value measurement | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of assets [line items] | ||
Total assets | 135,542 | |
Non-recurring fair value measurement | Level 3 of fair value hierarchy | Assets Held For Sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Asset held for sale | 135,542 | |
Recurring fair value measurement | ||
Disclosure of fair value measurement of assets [line items] | ||
Total liabilities | 245,560 | |
Recurring fair value measurement | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Derivative financial instruments | 245,560 | |
Recurring fair value measurement | Level 1 of fair value hierarchy | ||
Disclosure of fair value measurement of assets [line items] | ||
Total liabilities | 0 | |
Recurring fair value measurement | Level 1 of fair value hierarchy | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Derivative financial instruments | 0 | |
Recurring fair value measurement | Level 2 of fair value hierarchy | ||
Disclosure of fair value measurement of assets [line items] | ||
Total liabilities | 245,560 | |
Recurring fair value measurement | Level 2 of fair value hierarchy | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Derivative financial instruments | 245,560 | |
Recurring fair value measurement | Level 3 of fair value hierarchy | ||
Disclosure of fair value measurement of assets [line items] | ||
Total liabilities | 0 | |
Recurring fair value measurement | Level 3 of fair value hierarchy | Derivatives | ||
Disclosure of fair value measurement of assets [line items] | ||
Derivative financial instruments | $ 0 |
Financial instruments - Summary
Financial instruments - Summary of key Assumptions used to Determine the Fair Value of Assets Held For Sale (Detail) - Assets Held for Sale | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Sale Price | |
Disclosure Of Information About Key Assumptions Used To Determine The Fair Value Of Assets Held For Sale Explanatory [Line Items] | |
Unobservable input | Sales price |
Value assigned to key assumption | $ 145,399 |
Approach to determining key assumption | Average of purchase proposals received |
Cost of Disposal | |
Disclosure Of Information About Key Assumptions Used To Determine The Fair Value Of Assets Held For Sale Explanatory [Line Items] | |
Unobservable input | Cost of disposal |
Value assigned to key assumption | $ (9,857) |
Approach to determining key assumption | Estimated based on the Company’s experience with disposal of similar assets. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)sharesAwardsAircraft | |
Boeing 737 MAX aircraft [member] | |
Disclosure of non-adjusting events after reporting period [line items] | |
No of aircrafts held for sale delivered | Aircraft | 6 |
Major ordinary share transactions [member] | |
Disclosure of non-adjusting events after reporting period [line items] | |
Non-vested stock, number of awards approved | Awards | 2 |
Non-vested stock, grant | shares | 136,654 |
Estimated fair vaule | $ 11.5 |
Estimated compensation cost for next year | $ 5.7 |
Non-vested stock, vesting period | vest over a period of three to five years. |
Subsequent events - Summary of
Subsequent events - Summary of updated Firm Commitment to Purchase Asset (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | $ 2,975,408,000 | |
2021 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 560,914,000 | |
2022 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 201,544,000 | |
2023 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 408,145,000 | |
2024 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 439,433,000 | |
2025 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 514,549,000 | |
Thereafter | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | $ 850,823,000 | |
Events after reporting period [member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | $ 3,422,974 | |
Events after reporting period [member] | 2021 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 49,800 | |
Events after reporting period [member] | 2022 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 187,882 | |
Events after reporting period [member] | 2023 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 383,231 | |
Events after reporting period [member] | 2024 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 421,271 | |
Events after reporting period [member] | 2025 | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | 487,348 | |
Events after reporting period [member] | Thereafter | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contractual capital commitments | $ 1,893,442 |