Even though Copa Airlines just linked its first back-to-back quarterly losses in history, the Panamanian carrier is confident that it will bounce back stronger from the COVID-19 pandemic. It will do it by using its hub, Tocumen International Airport, as a stronghold for connecting America. Let’s investigate further.
The Hub of the Americas will live up to its name
Tocumen International Airport serves Panama City. But, more than that, it serves as a connecting point between North and South America. It is known, from a marketing point of view, as the Hub of the Americas.
Copa Airlines has proudly served from Tocumen, becoming a powerhouse in Latin American connectivity. Before the COVID-19 pandemic, Copa flew to more than 80 destinations in every country of America. In contrast, it only had one domestic route.
This internationalization could be seen as something hampering due to the drop in demand. But, for Copa Airlines, it will be a strength in the near future.
Pedro Heilbron, Copa Airlines CEO, said,
“In a post-covid-19 environment, some Latin American markets won’t be able to sustain direct point-to-point services. In that sense, the Hub of the Americas will be more valuable”.
He added that while it is too early to tell which opportunities Copa will have in the future, every market will reduce its size during the next three years.
In this sense, Copa Airlines will also seize the gap left by its three main regional competitors, LATAM, Avianca, and Aeromexico. These three carriers used their hubs (Sao Paulo and Santiago for LATAM; Bogotá and San Salvador for Avianca, and Mexico City for Aeromexico) as connecting points for its traffic. The three airlines are in Chapter 11 reorganizations and will shrink the size of its operations, closing routes, and reducing frequencies…
