Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F/A |
Amendment Flag | true |
Amendment Description | This Amendment No. 1 on Form 20-F/A (this “Amendment No. 1”) to our annual report on Form 20-F for the year ended December 31, 2017, filed with the Securities and Exchange Commission on April 18, 2018 (the “2017 Form 20-F”), is filed [(i)] to amend and restate “Item 3. Key Information”, “Item 4. Information on the Company”, and “Item 5. Operating and Financial Review and Prospects” of Part I of the 2017 Form 20-F, (ii) to amend and restate “Item 15. Control and Procedures,” of Part II of the 2017 Form 20-F and (iii) to amend and restate] “Item 17. Financial Statements” and “Item 18. Financial Statements,” of Part III of the 2017 Form 20-F.Pursuant to Rule 12b-15 promulgated under the Securities Exchange Act of 1934, as amended, new certifications by our chief executive officer and chief financial officer are being filed as exhibits to this Amendment No. 1. The amended “Item 19. Exhibits,” of Part III of the 2017 Form 20-F, is included in this Amendment No. 1.This Amendment No. 1 speaks as of the filing date of the 2017 Form 20-F on April 18, 2018. Other than as described above, this Amendment No. 1 does not, and does not purport to, amend, update or restate any other information or disclosure included in the 2017 Form 20-F or reflect any events that have occurred after the filing of the 2017 Form 20-F on April 18, 2018. |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | CPA |
Entity Registrant Name | COPA HOLDINGS, S.A. |
Entity Central Index Key | 1,345,105 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Class A common stock [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 31,185,641 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | |||
Cash and cash equivalents | $ 238,792 | $ 331,687 | $ 204,715 |
Investments | 705,108 | 483,002 | 480,233 |
Accounts receivable | 115,641 | 114,143 | 105,777 |
Expendable parts and supplies | 81,825 | 74,502 | 62,247 |
Prepaid expenses | 45,421 | 58,407 | 48,667 |
Other currents assets | 11,701 | 7,650 | 5,946 |
Total current assets | 1,198,488 | 1,069,391 | 907,585 |
Non - current assets | |||
Investments | 65,953 | 953 | 861 |
Accounts receivable | 2,444 | 1,957 | |
Prepaid expenses | 26,130 | 26,398 | |
Property and equipment | 2,617,407 | 2,418,164 | 2,453,751 |
Net pension asset | 3,185 | 8,826 | 6,050 |
Intangible assets | 81,115 | 69,502 | 69,426 |
Deferred tax assets | 19,099 | 18,339 | 12,708 |
Other non - current assets | 31,140 | 27,065 | 68,193 |
Total non - current assets | 2,846,473 | 2,571,204 | 2,610,989 |
Total assets | 4,044,961 | 3,640,595 | 3,518,574 |
Current liabilities | |||
Current maturities of long - term debt | 298,462 | 222,718 | 245,514 |
Trade, other payables and financial liabilities | 130,590 | 120,437 | 218,969 |
Air traffic liability | 470,693 | 396,237 | 352,110 |
Frequent flyer deferred revenue | 13,186 | 9,044 | 18,884 |
Taxes and interest payable | 70,077 | 68,483 | 43,176 |
Accrued expenses payable | 60,321 | 44,362 | 82,948 |
Income tax payable | 3,700 | 1,401 | 24,066 |
Total current liabilities | 1,047,029 | 862,682 | 985,667 |
Non-current liabilities | |||
Long - term debt | 876,119 | 961,414 | 1,055,183 |
Frequent flyer deferred revenue | 33,115 | 26,324 | |
Other long - term liabilities | 130,621 | 108,448 | 54,339 |
Deferred tax liabilities | 52,465 | 44,974 | 32,865 |
Total non - current liabilities | 1,092,320 | 1,141,160 | 1,142,387 |
Total liabilities | 2,139,349 | 2,003,842 | 2,128,054 |
Equity | |||
Additional paid in capital | 72,945 | 64,986 | 57,455 |
Treasury stock | (136,388) | (136,388) | (136,388) |
Retained earnings | 1,944,439 | 1,681,573 | 1,441,831 |
Accumulated other comprehensive loss | (3,888) | (1,872) | (768) |
Total equity | 1,905,612 | 1,636,753 | 1,390,520 |
Commitments and contingencies | |||
Total liabilities and equity | 4,044,961 | 3,640,595 | 3,518,574 |
Class A common stock [member] | |||
Equity | |||
Common stock | 21,038 | 20,988 | 20,924 |
Total equity | 21,038 | 20,988 | 20,924 |
Class B common stock [member] | |||
Equity | |||
Common stock | 7,466 | 7,466 | 7,466 |
Total equity | $ 7,466 | $ 7,466 | $ 7,466 |
Consolidated statement of fin_2
Consolidated statement of financial position (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Class A common stock [member] | ||
Common stock, shares issued | 33,776,480 | 33,743,286 |
Common stock, shares outstanding | 31,185,641 | 31,112,356 |
Class B common stock [member] | ||
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 |
Consolidated statement of profi
Consolidated statement of profit or loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating revenue | |||
Passenger revenue | $ 2,462,419 | $ 2,155,167 | $ 2,185,465 |
Cargo and mail revenue | 55,290 | 53,989 | 56,738 |
Other operating revenue | 9,847 | 12,696 | 11,507 |
Total operating revenue | 2,527,556 | 2,221,852 | 2,253,710 |
Operating expenses | |||
Fuel | 572,746 | 528,996 | 603,760 |
Wages, salaries, benefits and other employees' expenses | 415,147 | 370,190 | 373,631 |
Passenger servicing | 99,447 | 86,329 | 84,327 |
Airport facilities and handling charges | 171,040 | 159,771 | 148,078 |
Sales and distribution | 200,413 | 193,984 | 188,961 |
Maintenance, materials and repairs | 132,148 | 121,781 | 111,178 |
Depreciation and amortization | 167,324 | 167,894 | 150,548 |
Flight operations | 101,647 | 88,188 | 86,461 |
Aircraft rentals and other rentals | 134,539 | 138,885 | 142,177 |
Cargo and courier expenses | 7,375 | 6,099 | 6,471 |
Other Operating and administrative expenses | 96,087 | 92,215 | 105,484 |
Total operating expenses | 2,097,913 | 1,954,332 | 2,001,076 |
Operating profit | 429,643 | 267,520 | 252,634 |
Non-operating income (expense) | |||
Finance cost | (35,223) | (37,024) | (33,155) |
Finance income | 17,939 | 13,000 | 25,947 |
Gain(Loss)on foreign currency fluctuations | 6,145 | 13,043 | (440,097) |
Net change in fair value of derivatives | 2,801 | 111,642 | (11,572) |
Other non-operating expense | (2,337) | (3,982) | (1,632) |
Total non - operating income (expense) | (10,675) | 96,679 | (460,509) |
Profit (loss) before taxes | 418,968 | 364,199 | (207,875) |
Income tax expense | (49,310) | (38,271) | (32,759) |
Net profit (loss) | $ 369,658 | $ 325,928 | $ (240,634) |
Earnings (loss) per share | |||
Basic and diluted | $ 8.71 | $ 7.69 | $ (5.49) |
Consolidated statement of compr
Consolidated statement of comprehensive income (loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Net profit (loss) | $ 369,658 | $ 325,928 | $ (240,634) |
Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods - | |||
Net change in fair value of derivative instrument | 1,206 | ||
Other comprehensive income (loss) to be reclassified to profit or loss | 1,206 | ||
Other comprehensive loss not to be reclassified to profit or loss in subsequent periods - | |||
Remeasurement of actuarial loss, net of amortization | (2,016) | (1,104) | (2,212) |
Other comprehensive loss not to be reclassified to profit or loss | (2,016) | (1,104) | (2,212) |
Other comprehensive loss for the year, net of tax | (2,016) | (1,104) | (1,006) |
Total comprehensive income (loss) for the year | $ 367,642 | $ 324,824 | $ (241,640) |
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, 2014 | $ 2,075,108 | $ 53,486 | $ (18,426) | $ 2,011,485 | $ 238 | $ 20,859 | $ 7,466 |
Beginning balance (Increase (decrease) due to corrections of prior period errors [member]) at Dec. 31, 2014 | (181,242) | (181,242) | |||||
Beginning balance at Dec. 31, 2014 | 1,893,866 | 53,486 | (18,426) | 1,830,243 | 238 | $ 20,859 | $ 7,466 |
Beginning balance, shares (Previously stated [member]) at Dec. 31, 2014 | 33,050,298 | 10,938,125 | |||||
Beginning balance, shares at Dec. 31, 2014 | 33,050,298 | 10,938,125 | |||||
Net income (loss) | Increase (decrease) due to corrections of prior period errors [member] | (15,660) | ||||||
Net income (loss) | (240,634) | (240,634) | |||||
Other comprehensive income | (1,006) | (1,006) | |||||
Issuance of stock for employee awards | (65) | $ 65 | |||||
Issuance of stock for employee awards, shares | 94,704 | ||||||
Share-based compensation expense | 4,034 | 4,034 | |||||
Repurchase of treasury shares | (117,962) | (117,962) | |||||
Repurchase of treasury shares, shares | (2,127,900) | ||||||
Dividends paid | (147,592) | (147,592) | |||||
Other | (186) | (186) | |||||
Ending balance at Dec. 31, 2015 | 1,390,520 | 57,455 | (136,388) | 1,441,831 | (768) | $ 20,924 | $ 7,466 |
Ending balance, shares at Dec. 31, 2015 | 31,017,102 | 10,938,125 | |||||
Net income (loss) | Increase (decrease) due to corrections of prior period errors [member] | (8,616) | ||||||
Net income (loss) | 325,928 | 325,928 | |||||
Other comprehensive income | (1,104) | (1,104) | |||||
Issuance of stock for employee awards | (64) | $ 64 | |||||
Issuance of stock for employee awards, shares | 94,208 | ||||||
Share-based compensation expense | 7,539 | 7,539 | |||||
Dividends paid | (86,116) | (86,116) | |||||
Other | (14) | 56 | (70) | ||||
Other, shares | 1,046 | ||||||
Ending balance (Increase (decrease) due to corrections of prior period errors [member]) at Dec. 31, 2016 | (205,518) | ||||||
Ending balance at Dec. 31, 2016 | 1,636,753 | 64,986 | (136,388) | 1,681,573 | (1,872) | $ 20,988 | $ 7,466 |
Ending balance, shares at Dec. 31, 2016 | 31,112,356 | 10,938,125 | |||||
Net income (loss) | Increase (decrease) due to corrections of prior period errors [member] | (365) | ||||||
Net income (loss) | 369,658 | 369,658 | |||||
Other comprehensive income | (2,016) | (2,016) | |||||
Issuance of stock for employee awards | (42) | $ 42 | |||||
Issuance of stock for employee awards, shares | 62,224 | ||||||
Share-based compensation expense | 7,422 | 7,422 | |||||
Dividends paid | (106,792) | (106,792) | |||||
Share options exercised | 587 | 579 | $ 8 | ||||
Share options exercised, shares | 11,061 | ||||||
Ending balance (Increase (decrease) due to corrections of prior period errors [member]) at Dec. 31, 2017 | (205,883) | ||||||
Ending balance at Dec. 31, 2017 | $ 1,905,612 | $ 72,945 | $ (136,388) | $ 1,944,439 | $ (3,888) | $ 21,038 | $ 7,466 |
Ending balance, shares at Dec. 31, 2017 | 31,185,641 | 10,938,125 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net profit (loss) | $ 369,658 | $ 325,928 | $ (240,634) |
Adjustments for: | |||
Income tax expense | 49,310 | 38,271 | 32,759 |
Finance cost | 35,223 | 37,024 | 33,155 |
Finance income | (17,939) | (13,000) | (25,947) |
Depreciation, amortization and impairment | 167,324 | 167,810 | 150,548 |
Loss (gain) on sale of property and equipment | (2) | 604 | 1,896 |
Disposal of assets | 3,318 | 4,139 | 3,344 |
Impairment of accounts receivable | 879 | 1,511 | (71) |
Allowance for obsolescence of expendable parts and supplies | 182 | 87 | 63 |
Derivative instruments mark to market | (2,801) | (111,642) | 11,572 |
Share-based compensation expense | 7,422 | 7,539 | 4,034 |
Net foreign exchange differences | 26,654 | 35,525 | 435,983 |
Change in: | |||
Accounts receivable | (3,534) | (9,967) | 17,471 |
Accounts receivable from related parties | 181 | 143 | (317) |
Other current assets | 25,770 | (14,745) | 4,398 |
Restricted cash | 64,228 | (11,803) | |
Other assets | (1,012) | 10,202 | 14,628 |
Accounts payable | 20,943 | 16,387 | (31,913) |
Accounts payable from related parties | 4,199 | 3,076 | (1,801) |
Air traffic liability | 74,456 | 44,127 | (55,902) |
Frequent flyer deferred revenue | 10,933 | 16,484 | 18,884 |
Other liability | 28,322 | 30,117 | 2,598 |
Cash from operating activities | 799,486 | 653,848 | 362,945 |
Income tax paid | (51,077) | (33,364) | (39,168) |
Interest paid | (35,312) | (37,420) | (31,668) |
Interest received | 14,235 | 11,526 | 24,754 |
Net cash from operating activities | 727,332 | 594,590 | 316,863 |
Investing activities | |||
Acquisition of investments | (854,119) | (553,037) | (383,005) |
Proceeds from redemption of investments | 567,007 | 485,944 | 435,110 |
Advance payments on aircraft purchase contracts and other | (191,315) | (47,479) | (83,064) |
Reimbursement of advance payments on aircraft purchase contracts | 28,888 | 29,150 | 161,169 |
Acquisition of property and equipment | (109,945) | (88,345) | (81,788) |
Proceeds from sale of property and equipment | 6 | 8,332 | 3,380 |
Acquisition of intangible assets | (18,681) | (14,474) | (19,418) |
Net cash (used in) from investing activities | (578,159) | (179,909) | 32,384 |
Financing activities | |||
Proceeds from new borrowings | 147,798 | 164,400 | 130,000 |
Payments on loans, borrowings and finance leases | (246,349) | (326,965) | (221,912) |
Dividends paid | (106,792) | (86,116) | (147,592) |
Proceeds from exercise of share options | 587 | 56 | |
Repurchase of treasury shares | (117,962) | ||
Net cash used in financing activities | (204,756) | (248,625) | (357,466) |
Net (decrease) increase in cash and cash equivalents | (55,583) | 166,056 | (8,219) |
Cash and cash equivalent at Beginning value | 331,687 | 204,715 | 221,443 |
Effect of exchange rate change on cash | (37,312) | (39,084) | (8,509) |
Cash and cash equivalent at Ending balance | $ 238,792 | $ 331,687 | $ 204,715 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Corporate information | 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. In October 2016, Copa Colombia officially launched “Wingo” a new 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 currently offers approximately 347 daily scheduled flights to 75 destinations in 31 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 is part of Star Alliance, the leading global airline network since June 2012. The Company has a broad commercial alliance with United Continental 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. The Company participated in United’s Mileage Plus frequent flyer loyalty program until June 30, 2015. On July 1, 2015, Copa Airlines started its new loyalty program “ConnectMiles”, designed to strengthen the relationship with its frequent flyers and provide exclusive attention. The program maintains the mile accumulation and redemption model that Copa Airlines’s passengers have enjoyed in recent years in United’s Mileage Plus frequent flyer loyalty program. ConnectMiles members are eligible to earn and redeem miles to any of Star Alliance’s 1,300 (unaudited) destinations in 190 countries within 28 airlines members (unaudited). As of December 31, 2017, the Company operates a fleet of 100 aircraft with an average age of 8.00 years, and consists of 66 Boeing 737-800 737-700 The consolidated financial statements for the year ended December 31, 2017 have been authorized for issuance by the Company’s Chief Executive Officer and Chief Financial Officer on January 8, 2019. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Basis of preparation | 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 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. The consolidated financial statements provide comparative information in respect of the previous period. In addition, the Company presents an additional statement of financial position at 1 January 2016 in these consolidated financial statements due to the correction of an error. Basis of measurement The consolidated financial statements have been prepared on a historical cost basis, except for the following: • available-for-sale • 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, 2017 | |
Text block1 [abstract] | |
Significant accounting policies | Significant accounting policies 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 Ownership 2017 2016 Copa Airlines Panama 99 % 99 % Copa Colombia Colombia 99 % 99 % Oval British Virgin Islands 100 % 100 % 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 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 Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of the consideration received or receivable, 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 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. The Company performs a monthly liability evaluation, and a provision is recognized for tickets that are expected not to be used or redeemed. A year after the sales is made, all unredeemed sales are transferred from “Air Traffic liability” and recognized as revenue, and the provision is reversed. A significant portion of the Company’s ticket sales are processed through major credit card companies, resulting in accounts receivable that are generally short-term in duration and typically collected prior to when revenue is recognized. The Company believes that the credit risk associated with these receivables is minimal. 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 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, we do not include such amounts 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. 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 is primarily comprised of commissions earned on tickets sold for flights on other airlines, special charges, charter flights, and other services provided to other airlines and are recognized when the transportation or service is provided. Frequent flyer program On July 1, 2015, the Company launched its frequent flyer program, whose objective is to reward customer loyalty through the earning of miles whenever the programs members make certain flights. The miles or points earned can be exchanged for flights on Copa or any of other Star Alliance partners’ airlines. 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 multiple-deliverable revenue arrangement, in accordance with International Financial Reporting Interpretation Committee (IFRIC) 13 Customer loyalty programs Furthermore, the Company estimates miles earned by members which will not be redeemed for an award before they expire (breakage). 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 annually. 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 or Copa Colombia flights, 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. In addition, the Company sells miles to non-airline co-branded Prior to July 1, 2015, the Company participated in United Airlines (“United”) Mileage Plus frequent flyer program. Under the terms of the Company’s frequent flyer agreement with United, Mileage Plus members received Mileage Plus frequent flyer mileage credits for traveling on the Company’s flights. Copa paid United a per mile rate for each mileage credit granted by United at the time of Copa’s flight. The amounts paid to United were recognized by the Company as a reduction to “Passenger revenue” in the consolidated statement of profit or loss. Upon payment the Company did not have any further obligation with respect to the mileage credits. 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. 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 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 derecognition Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, receivables, held to maturity investments, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial assets are recognized initially at fair value plus directly attributable transaction costs, except in the case of financial assets at fair value through profit and loss. 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 of the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all of 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 of 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. (ii) Measurement The subsequent measurement of financial assets depends on their classification as described below (see also note 4, Fair value measurement for financial assets): • Held to maturity investments The Company invests in short-term deposits with original maturities of more than three months but less than one year. Additionally, the Company invests in long-term deposits 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. All of these investments are classified as held-to-maturity 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 in finance income in the consolidated statement of profit or loss. Restricted cash and cash equivalents are classified within short-term and long-term investments and are held as collateral for letters of credit. • Receivables Accounts receivable are non-derivative The Company records its best estimate of the provision for impairment of receivables, based on several factors, including varying customer classifications, agreed upon credit terms, and the aging of the individual debt. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss. The Company considers that there is evidence of impairment 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 not documents that establishing the debt. (iii) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount presented in the 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. Non-derivative (i) Initial recognition and derecognition The Company’s financial liabilities include trade and other payables and loans and borrowings. Financial liabilities are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. 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. (ii) Measurement The measurement of financial liabilities depends on their classification as described below: • Debt All borrowings and loans are initially recognized at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest rate (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. • Other financial liabilities Other financial liabilities are initially recognized at fair value, including directly attributable transaction costs. Subsequent to initial recognition, they 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 amortization process. 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. The fair values of various derivative instruments used for hedging purposes are shown in note 28.7. For hedge accounting purposes, hedges are classified into: • fair value hedges • cash flow hedges • hedges of a net investment in a foreign operation. The Company designated certain derivatives as cash flow hedges. At the inception of a hedge relationship, the Company formally designates and documents the relationship between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions, as expected, are highly effective in offsetting changes in fair values or cash flows of hedged items. Any gain or loss on the hedging instrument relating to the effective portion of a cash flow hedge is recognized in the consolidated statement of comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated statement of profit or loss. Amounts recognized as other comprehensive income are transferred to the statement of profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized. When the hedged item is the cost of a non-financial non-financial non-financial As of December 31, 2017 and 2016, the Company does not have financial instruments designated under hedge accounting. Impairment Impairment of financial assets The Company assesses at the end of each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. An impairment exists if one or more events that have occurred since the initial recognition of the asset (an incurred “loss event”) have an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Evidence of impairment may include indicators that the debtors or the group of debtors are experiencing financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization, and observable data indicating that there is a measurable decrease in the estimated future cash flows. • Impairment of financial assets carried at amortized cost For financial assets carried at amortized cost, the Company first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment. The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original EIR. The carrying amount of the asset is reduced and the loss recorded in the consolidated statement of profit or loss. Impairment of non-financial 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 in the consolidated statement of profit or loss in those expense categories consistent with the function of the impaired asset. 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. 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 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. (j) Property and equipment comprise mainly airframe, engines, maintenance components and other related flight equipment. All property and equipment is 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 over the estimated useful lives 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. Estimate useful Residual Property and equipment life (years) 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 life of the leasehold improvement — 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 operating of the scheduled usage period to the next major inspection event or the remaining life of lease term (as appropriate). The value of major maintenance inspection or overhaul embedded in the aircraft operating leases is not recognised as a separated component under IAS 17 Leases The residual values, useful lives, and methods of depreciation of property and equipment are reviewed at each financial year-end During 2016, as result of the annual review of the useful life, the Company concluded that airframe and engines are now expected to remain in operations for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years (see note 13). The land owned by the Company is recognized at cost less any accumulated impairment. (k) The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether the fulfillment of the agreement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in the arrangement. A reassessment is made after inception of the lease only if one of the following applies: • there is a change in contractual terms, other than a renewal or extension of the arrangement; • a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term; • there is a change in the determination of whether fulfillment is dependent on a specified asset; or • there is a substantial change to the asset. Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment. When a renewal option is exercised or extension granted, lease accounting shall commence or cease at the date of renewal or extension. The Company as lessor (i) Operating leases 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. 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. The Company as lessee (ii) Operating leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense in the consolidated statement of profit or loss on a straight-line basis over the lease term. (iii) Finance leases Leases where the lessor substantially transfers all the risks and benefits of ownership of the leased item are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance cost and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability; these are recognized as finance costs in the consolidated statement of profit or loss. Sale and leaseback transactions The Company enters into transactions whereby aircraft are sold and subsequently leased back. The Company has not entered into sale and leaseback transactions that resulted in finance leases. If a sale and leaseback transaction results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss is recognized immediately. If the sale price is below fair value any profit is recognized immediately. If the transaction is not at fair value, any resulting loss that is compensated for by future lease payments at below market rate is deferred and amortized over the lease term. (l) 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 lives 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 lives 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 lives (from three to eight years). Costs associated with developing or 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 lives (from five to fifteen years). Computer software development costs recognized as assets are amortized on a straight-line basis over their estimated useful lives, which range between three and five years. Licenses and software rights acquired by the Company have finite useful lives and are amortized on a straight-line basis over the term of the contract and the amortization is recognized in the consolidated statement of profit or loss. (m) 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 arise principally from foreign operations, and according to the Panamanian Tax Code, these foreign operations are not subject to income tax |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
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. 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 lease contracts on some of the aircraft it operates. The Company assesses, based on the terms and conditions of the arrangements, whether or not substantially all risks and rewards of ownership of the aircraft it leases have been transferred/retained by the lessor to determine the appropriate accounting classification of the contracts as an operating or finance leases. 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 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 maintenance provision to accrue for the cost that will be incurred in order to return certain aircraft to their lessor in the agreed-upon condition. 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. Any difference in the actual maintenance cost incurred and the amount of the provision is recorded in maintenance expenses in the period. The effect of any changes in estimates, including those mentioned above, is also recognized in maintenance expenses for the period (see note 21). • Share-based payments The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility, and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in note 25. • 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. • Multiple deliverable revenue arrangements - Frequent flyer program The Company recognizes a portion of the proceeds from the sale of tickets as frequent-flyer deferred revenue, reflecting the value of the related miles earned by the passenger in a multiple element revenue arrangement. Pursuant to IFRIC 13, the Company estimates the fair value of the miles sold along with the ticketed flight using a blended calculation of rates charged when miles are sold to other partners and the average value of a mile flown by a customer. Also, the Company estimates and reduces the liability for the value of miles earned but expected to expire unused, based on historical experience. • Taxes The Company believes that tax positions taken 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). • 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 28.7. 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 28.7 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 |
Correction and changes in discl
Correction and changes in disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Correction and changes in disclosures | 5. 5.1 In connection with the implementation of the new accounting standard IFRS 16 Leases, the Company concluded its prior accounting for flight equipment with respect to the identification of the built-in maintenance events at initial recognition was incorrect. These initial built-in maintenance components should have been depreciated over a shorter life then the lives assigned for the core airframe and engines, specifically, the time period until the first maintenance event was performed with any remaining value derecognized and charged to expense at the time of the major maintenance event. However, the Company instead had included such components in airframe and engines assets, and depreciated with the same useful life. The restatement reflects the corrected amortization of these initial maintenance components and derecognizes any remaining balance of each such component at the moment of the capitalization of the next maintenance event, if any. In addition, the Company corrected other previously identified differences, including an error in the valuation method of foreign currency in certain local tax accounts, which resulted the Company recognized an unrealized foreign currency gain on translation of $11 million in 2017, and the Company corrected for the discount rate used to calculate the present value of the provision for return condition in 2017. The Company’s operating leases provide that the Company is contractually obliged to return aircraft in an agreed-upon condition (see note 21). The tables below reflects each of the affected financial statement line items for the prior periods, as follows: Impact on the statement of financial position (increase/(decrease)): 2017 2016 ASSETS Non - current assets Property and equipment $ (208,497 ) $ (205,518 ) Deferred tax assets 527 — Total assets $ (207,970 ) $ (205,518 ) LIABILITIES AND EQUITY Current liabilities Taxes and interest payable (11,363 ) — Non-current Other long-term liabilities 7,439 — Deferred tax liabilities 1,837 — Total liabilities (2,087 ) — Equity Retained earnings (205,518 ) (196,902 ) Net income (365 ) (8,616 ) Total equity (205,883 ) (205,518 ) Total liabilities and equity $ (207,970 ) $ (205,518 ) Impact on the statement of profit or loss (increase/(decrease)): 2017 2016 2015 Operating expenses Maintenance, materials and repairs $ 7,439 $ — $ — Depreciation and amortization 2,979 8,616 15,660 10,418 8,616 15,660 Operating profit (10,418 ) (8,616 ) (15,660 ) Non-operating income (expense) Gain (loss) on foreign currency fluctuations 11,363 — — Profit (loss) before taxes 945 (8,616 ) (15,660 ) Income tax expense (1,310 ) — — Net profit (loss) $ (365 ) $ (8,616 ) $ (15,660 ) Earnings (loss) per share Basic and diluted $ (0.01 ) $ (0.21 ) $ (0.36 ) The change did not have a material impact on the consolidated statement of comprehensive income (loss) for the period. The impact on the statement of cash flows for the year ended December 31, 2017, 2016 and 2015, only relates to the changes in the net profit by the adjustment in the depreciation expense and working capital items. There was no impact on the net cash flows from operating activities. The cash flows from investing and financing activities were not affected. The following notes are restated by the correction of the error: 3(j), 13, 21, 22, 26 and 28.6. Change in accounts classifications Consolidated statement of financial position As disclosed in the table below, certain retrospective corrections have been made to the December 31, 2016 consolidated statement of financial position to conform to the 2017 presentation. The movement between current and non-current non-current Additionally, the Company is adjusting the presentation of the prepaid income tax, previously presented within taxes and interest payables. The following table reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position: As previosly Reclasification 2016 Current liabilities Taxes and interest payable $ 47,389 $ 21,094 $ 68,483 Accrued expenses payable $ 80,116 $ (35,754 ) $ 44,362 Income tax payable $ 22,495 $ (21,094 ) $ 1,401 Non-current Other long-term liabilities $ 72,694 $ 35,754 $ 108,448 Consolidated statement of profit or loss The Company has historically presented its IFRS consolidated statement of profit or loss “by nature and function on a ‘mixed basis” as permitted by IAS 1. During February 2017, the Company introduced a new business, planning and financial consolidation accounting system, with the objective of improving and giving greater uniformity to the structure and presentation of the consolidated financial statements. While the Company continues to present its consolidated income statement “by nature and function on a ‘mixed basis”, a new chart of accounts was implemented resulting in the reclassification of certain lines in the consolidated financial statements, as well as certain new financial statement line items. In the accompanying consolidated statements, prior periods have been retrospectively reclassified giving effect to the new classifications. The Company does not believe these reclassifications significantly affect its previously reported financial statements, nor do they have any significant impact on previously reported Key Performance Indicators (KPIs) or debt covenant compliance. There was also no impact on the Company’s basic or diluted earnings per share and no impact on the total operating, investing or financing cash flows for the years ended December 31, 2016 and 2015. The following tables discloses both previously reported and as adjusted amounts of the consolidated statement of profit or loss: 2016 Adjusted Operating revenue Passenger revenue $ 2,155,167 Cargo and mail revenue 53,989 Other operating revenue 12,696 2,221,852 Operating expenses Fuel 528,996 Wages, salaries, benefits and other employees’ expenses 370,190 Passenger servicing 86,329 Airport facilities and handling charges 159,771 Sales and distribution 193,984 Maintenance, materials and repairs 121,781 Depreciation and amortization 167,894 Flight operations 88,188 Aircraft rentals and other rentals 138,885 Cargo and courier expenses 6,099 Other Operating and administrative expenses 92,215 1,954,332 Operating profit 267,520 Non-operating Finance cost (37,024 ) Finance income 13,000 (Loss) Gain on foreign currency fluctuations 13,043 Net change in fair value of derivatives 111,642 Other non-operating (3,982 ) 96,679 Profit (loss) before taxes 364,199 Income tax expense (38,271 ) Net profit (loss) $ 325,928 2016 Previously Reported Operating revenue Passenger revenue $ 2,133,186 Cargo, mail and other 88,663 2,221,849 Operating expenses Aircraft fuel 527,918 Salaries and benefits 293,044 Passenger servicing 259,524 Commissions 83,981 Reservations and sales 99,918 Maintenance, material and repairs 122,873 Depreciation, amortization and impairment 167,894 Flight operations 127,777 Aircraft rentals 120,841 Landing fees and other rentals 55,498 Other 94,584 1,953,852 Operating profit 267,997 Non-operating Finance cost (37,024 ) Finance income 13,000 Exchange rate difference, net 13,043 Mark to market derivative income (expense) 111,642 Other income 2,888 Other expense (7,347 ) 96,202 Profit (loss) before taxes 364,199 Income tax expense (38,271 ) Net profit (loss) $ 325,928 2015 Adjusted Operating revenue Passenger revenue $ 2,185,465 Cargo and mail revenue 56,738 Other operating revenue 11,507 2,253,710 Operating expenses Fuel 603,760 Wages, salaries, benefits and other employees’ expenses 373,631 Passenger servicing 84,327 Airport facilities and handling charges 148,078 Sales and distribution 188,961 Maintenance, materials and repairs 111,178 Depreciation and amortization 150,548 Flight operations 86,461 Aircraft rentals and other rentals 142,177 Cargo and courier expenses 6,471 Other Operating and administrative expenses 105,484 2,001,076 Operating profit 252,634 Non-operating Finance cost (33,155 ) Finance income 25,947 (Loss) Gain on foreign currency fluctuations (440,097 ) Net change in fair value of derivatives (11,572 ) Other non-operating (1,632 ) (460,509 ) Profit (loss) before taxes (207,875 ) Income tax expense (32,759 ) Net profit (loss) $ (240,634 ) 2015 Previously Operating revenue Passenger revenue $ 2,166,727 Cargo, mail and other 83,335 2,250,062 Operating expenses Aircraft fuel 602,777 Salaries and benefits 289,512 Passenger servicing 258,302 Commissions 88,557 Reservations and sales 88,051 Maintenance, material and repairs 111,181 Depreciation, amortization and impairment 150,548 Flight operations 130,930 Aircraft rentals 122,217 Landing fees and other rentals 56,703 Other 100,856 1,999,634 Operating profit 250,428 Non-operating Finance cost (33,155 ) Finance income 25,947 Exchange rate difference, net (440,097 ) Mark to market derivative income (expense) (11,572 ) Other income 7,025 Other expense (6,451 ) (458,303 ) Profit (loss) before taxes (207,875 ) Income tax expense (32,759 ) Net profit (loss) $ (240,634 ) 5.3 The Company applied for the first time certain amendments to the standards, which are effective for annual periods beginning on or after January 1, 2017. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. • Amendments to IAS 7 Statement of cash flows: disclosure initiative The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash • Other standards The following amendments effective for annual periods beginning on or after January 1, 2017, had no impact on the Company’s financial statements: Annual Improvements Cycle—2014-2016: IFRS 12 ’Disclosure of interests in other entities’ regarding clarification of the scope of the standard Amendments to IAS 12 Income Taxes: recognition of deferred tax assets for unrealized losses |
New standards and interpretatio
New standards and interpretations not yet adopted | 12 Months Ended |
Dec. 31, 2017 | |
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New standards and interpretations not yet adopted | 6. The 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. As part of the implementation of IFRS 9 Financial instruments Revenue from contracts with customers Leases IFRS 15 Revenue from contracts with customers The new standard provides a framework that replaces existing revenue recognition guidance in IFRS. Entities will apply a five-step model to determine when to recognize revenue, and at what amount. During April 2016, the IASB issued an amendment to this standard, introducing some clarification and guidance to identifying performance obligations, accounting for licenses of intellectual property and the principal versus agent assessment. The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled. Depending on whether certain criteria are met, revenue is recognized: • over time, in a manner that depicts the entity’s performance; or • at a point in time, when control of the goods or services is transferred to the customer. The Company plans to adopt IFRS 15 in its consolidated financial statements for the annual period beginning on January 1, 2018, using the full retrospective approach. The comparative results included in the 2018 financial statements will be restated with an adjustment to the opening equity at December 31, 2016. The Company´s decision to adopt retrospectively was the result of a number of factors considering the time, effort and cost involved in doing so when compared to the benefits to users of the consolidated financial statements. The Company has carried out an evaluation and implementation process, culminating at the end of the 2017 period. The Company’s analysis has resulted in a number of impacts on its consolidated financial statements, due to changes mainly related to the revenue recognition of passenger services. The following are the causes of the impacts related to the process of adoption of the new standard: • Ancillary services: considerations about these contracts are at what level and when revenues take place. This was evaluated under the performance obligations criteria, including services such as excess baggage fees, exchange fees, upgrades fees and other fees. The main change is the recognition of revenue from the sales date to the departure date, the moment when the performance obligations are fulfilled. Under the new standard these deliverables are considered a single performance obligation, which will not exist without the main performance obligation, the travel service that is fulfilled at departure date. • Loyalty program contract: considerations about loyalty point valuations, related to co-brand co-brand • Denied board compensation: considerations about whether this performance obligation should be recognized as an operational expense or be allocated against the revenue. This impact consist in the reclassification of this type of performance obligation from the operational expense to contra revenue. • Classification of revenue streams: certain revenues that are currently presented as passenger revenue will be reclassified to other revenue. We expect that these revenues will be reclassified between passenger revenue, other revenue and operational expenses after the adoption. This reclassification occurs due to the analysis and classification of each contract according to each associated performance obligations. Some of this concepts include charter flights, publicity and fees related to cobrand agreements. The impact of the adoption of the new standard on the Company’s equity, as at January 1, 2018, is based on assessments undertaken to date and is summarized below. The actual impacts of adopting the standard, at January 1, 2018, may be subject to changes arising from further reasonable and supportable information being made available to the Company during 2018. For the period 2017, the Company’s consolidated statement of financial position and the consolidated statement of profit or loss presents the following impacts due to the adoption of the new standard: 2017 Transition impact 2017 ASSETS Current assets $ 1,198,488 $ — $ 1,198,488 Non - current assets 2,846,473 — 2,846,473 Total assets $ 4,044,961 $ — $ 4,044,961 LIABILITIES AND EQUITY Current liabilities Air traffic liability $ 470,693 $ 6,475 $ 477,168 Frequent flyer deferred revenue 13,186 4,011 17,197 Income tax payable 3,700 (820 ) 2,880 Other current liabilities 559,450 — 559,450 1,047,029 9,666 1,056,695 Non - current liabilities Frequent flyer deferred revenue 33,115 — 33,115 Other non - current liabilities 1,059,205 — 1,059,205 1,092,320 — 1,092,320 Total liabilities 2,139,349 9,666 2,149,015 Equity Issued capital 28,504 — 28,504 Additional paid in capital 72,945 — 72,945 Treasury stock (136,388 ) — (136,388 ) Retained earnings 1,574,781 (4,524 ) 1,570,257 Net income 369,658 (5,142 ) 364,516 Accumulated other comprehensive loss (3,888 ) — (3,888 ) Total equity 1,905,612 (9,666 ) 1,895,946 Total liabilities and equity $ 4,044,961 $ — $ 4,044,961 Operating revenue Passenger revenue $ 2,462,419 $ (18,442 ) $ 2,443,977 Cargo and mail revenue 55,290 — 55,290 Other operating revenue 9,847 12,672 22,519 2,527,556 (5,770 ) 2,521,786 Operating expenses Other operating expenses 1,897,500 — 1,897,500 Sales and distribution 200,413 (157 ) 200,256 2,097,913 (157 ) 2,097,756 Operating profit 429,643 (5,613 ) 424,030 Non - operating income (expense) (10,675 ) — (10,675 ) Profit (loss) before taxes 418,968 (5,613 ) 413,355 Income tax expense (49,310 ) 471 (48,839 ) Net profit (loss) $ 369,658 $ (5,142 ) $ 364,516 The main components of the adjustment, for the period, are as follows: • An increase of $6.4 million and $4.0 million in Air traffic liability and Frequent flyer deferred revenue, due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date, and the change in the amount deferred for mileages credits due to sales from co-brand • A decrease of $4.5 million in retained earnings due to the impacts of the 2016 period. • A decrease of $18.4 million in Passenger revenue by: $2.8 million due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date; $15.4 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights; and $0.2 million due the reclassification of denied board compensation from the Sales and distribution operating expenses to Passenger revenue. • An increase of $12.7 million in Other operating revenue by: a decrease of $2.7 million due to the change in the amount deferred for mileages credits due to sales from co-brand • A decrease of $0.4 million in Income tax expense, and Income tax payable as a result of the transitions impacts. For the period 2016, the Company’s consolidated statement of financial position and the consolidated statement of profit or loss presents the following impacts due to the adoption of the new standard: 2016 Transition impact 2016 ASSETS Current assets $ 1,069,391 $ — $ 1,069,391 Non - current assets 2,571,204 — 2,571,204 Total assets $ 3,640,595 $ — $ 3,640,595 LIABILITIES AND EQUITY Current liabilities Air traffic liability $ 396,237 $ 3,559 $ 399,796 Frequent flyer deferred revenue 9,044 1,314 10,358 Income tax payable 1,401 (349 ) 1,052 Other current liabilities 456,000 — 456,000 862,682 4,524 867,206 Non - current liabilities Frequent flyer deferred revenue 26,324 — 26,324 Other non - current liabilities 1,114,836 — 1,114,836 1,141,160 — 1,141,160 Total liabilities 2,003,842 4,524 2,008,366 Equity Issued capital 28,454 — 28,454 Additional paid in capital 64,986 — 64,986 Treasury stock (136,388 ) — (136,388 ) Retained earnings 1,355,645 (2,354 ) 1,353,291 Net income 325,928 (2,170 ) 323,758 Accumulated other comprehensive loss (1,872 ) — (1,872 ) Total equity 1,636,753 (4,524 ) 1,632,229 Total liabilities and equity $ 3,640,595 $ — $ 3,640,595 Operating revenue Passenger revenue $ 2,155,167 $ (6,666 ) $ 2,148,501 Cargo and mail revenue 53,989 — 53,989 Other operating revenue 12,696 4,000 16,696 2,221,852 (2,666 ) 2,219,186 Operating expenses Other operating expenses 1,760,348 — 1,760,348 Sales and distribution 193,984 (147 ) 193,837 1,954,332 (147 ) 1,954,185 Operating profit 267,520 (2,519 ) 265,001 Non - operating income (expense) 96,679 — 96,679 Profit (loss) before taxes 364,199 (2,519 ) 361,680 Income tax expense (38,271 ) 349 (37,922 ) Net profit (loss) $ 325,928 $ (2,170 ) $ 323,758 The main components of the adjustment, for the period 2016, are as follows: • An increase of $3.6 million, and $1.3 million in Air traffic liability and Frequent flyer deferred revenue, due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date, and the change in the amount deferred for mileages credits due to sales from co-brand • A decrease of $2.4 million in retained earnings by: $2.2 million due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date; and $0.2 million due to the change in the amount deferred for mileages credits due to sales from co-brand • A decrease of $6.7 million in Passenger revenue by: $1.4 million due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date; $5.1 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights; and $0.2 million due the reclassification of denied board compensation from the Sales and distribution operating expenses to Passenger revenue. • An increase of $4.0 million in Other operating revenue by: an increase of $5.1 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights; and a decrease of $1.1 million due to the change in the amount deferred for mileages credits due to sales from co-brand • A decrease of $0.3 million in Income tax expense, and Income tax payable as a result of the transitions impacts. The presentation and disclosure requirements in IFRS 15 are more detailed than under current IFRS. IFRS 9 Financial Instruments The new standard includes revised guidance on the classification and measurement of financial assets, including impairment, and supplements the new hedge accounting principles published in 2013. IFRS 9 contains three main classification categories for financial assets measured at: amortized cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss (FVTPL). Otherwise, the new standard retains almost all of the existing requirements for financial liabilities in IAS 39 Financial Instruments: Recognition and Measurement The Company plans to adopt the new standard on the required effective date and will not restate comparative information. The Company will take advantage of the exemption allowing it not to restate comparative information for prior periods with respect to classification and measurement (including impairment) changes. During 2017, the Company has performed an assessment of all three aspects of IFRS 9: classification and measurement, impairment and hedge accounting. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Company during 2018, when the Company will adopt this standard. • Classification and measurement The Company does not expect a significant impact on its consolidated statement of financial position on applying the classification and measurement requirements of IFRS 9, trade receivables and investments are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Company analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the criteria for amortized cost measurement under IFRS 9 therefore; reclassification for these instruments is not required. There will be no impact on the Company’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the Company as of December 31, 2017 does not have any such liabilities. • Impairment The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is the case under IAS 39. The Company will apply the simplified approach and record lifetime expected losses on all trade receivables. The Company does not expect a material increase in the provision for impairment of accounts receivable due the application this method. • Hedge accounting As of December 31, 2017, the Company does not have financial instruments designated under hedge accounting. • Other The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Company’s disclosures about its financial instruments particularly in the year of the adoption of the new standard. Amendments to IFRS 9 Financial instruments This amendment was issue in October, 2017 and confirm when a financial liability measured at amortized cost is modified without this resulting in de-recognition, The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. This means that the difference cannot be spread over the remaining life of the instrument which may be a change in practice from IAS 39. The Amendment is mandatory for annual reporting periods beginning on or after January 1, 2019, with earlier application permitted. The Amendment is required to be applied retrospectively. The Amendment provides specific transition provisions if it is only applied in 2019 rather than in 2018 with the remainder of IFRS 9: • The Company must revoke its application of the fair value option if, as a result of the Amendment, an accounting mismatch no longer exists, and may newly designate a financial asset or liability to be measured at fair value though profit or loss if a new accounting mismatch is created. • Restatement of prior periods is not required and is only permitted if such restatement is possible without the use of hindsight. • Additional disclosures must be made to describe the effect of applying the Amendment and any changes to the use of the fair value option. During 2018, the Company will assess the impact on its consolidated financial statements resulting from the application of this amendment. IFRS 16 Leases This standard was issued in January 2016 and sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 eliminates the classification of leases as either operating leases or finance leases for a lessee. Instead all leases are treated in a similar way to finance leases under IAS 17. The lessee is required to recognize the present values of future lease payments and showing them either as lease assets (right-of-use low-value As a lessee, the Company can either apply the standard using a: • retrospective approach; or • modified retrospective approach with optional practical expedients. As a lessor, the Company´s accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17. The new standard is effective for annual periods beginning on or after January 1, 2019, early adoption is permitted for entities that apply IFRS 15. The Company is evaluating some implementation topics, including, but not limited to: • assessment of the maintenance obligation as part of the ROU of the leased aircraft • assessment of the lease term • contracts in the airports, hub and non-hub, • determination of the discount rate in the calculation of ROU. The Company is assessing the potential impact on its consolidated financial statements but has not yet completed its detailed assessment. The actual impact of applying IFRS 16 on its initial application will depend of future economic conditions, including the Company’s borrowing rate at January 1, 2019, the composition of the Company’s lease portfolio at that date, the latest assessment about the exercise of renewal options, among others. The most significant impact identified is that the Company will recognize new assets and liabilities for its aircraft under operating leases. As of December 31, 2017, the Company’s future minimum lease payments under non-cancellable In the case of operating leases of facilities as real estate, airport and terminals, sales offices, and general offices, the Company is assessing which of these contracts meet the definition of a lease within the scope of IFRS 16. In 2018, the Company will continue to assess the potential effect of IFRS 16 on its consolidated financial statements and covenant compliance, and expects to disclose quantitative information before adoption. The Company intends to apply the retrospective transition approach and will restate comparative amounts for the year prior to first adoption. IFRIC 23 Uncertainty over income tax treatments This IFRIC was issue in June, 2017 and clarifies how the recognition and measurement requirements of IAS 12 Income taxes, are applied where there is uncertainty over income tax treatments. The IFRIC had clarified previously that IAS 12, not IAS 37 ‘Provisions, contingent liabilities and contingent assets’, applies to accounting for uncertain income tax treatments. IFRIC 23 explains how to recognize and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment. An uncertain tax treatment is any tax treatment applied by an entity where there is uncertainty over whether that treatment will be accepted by the tax authority. For example, a decision to claim a deduction for a specific expense or not to include a specific item of income in a tax return is an uncertain tax treatment if its acceptability is uncertain under tax law. IFRIC 23 applies to all aspects of income tax accounting where there is an uncertainty regarding the treatment of an item, including taxable profit or loss, the tax bases of assets and liabilities, tax losses and credits and tax rates. The Interpretation is applicable for annual reporting periods beginning on or after January 1, 2019; it provides a choice of two transition approaches: • full retrospective using IAS 8, only if the application is possible without the use of hindsight; or • modified retrospective with the cumulative effect of the initial application recognized as an adjustment to equity on the date of initial application. In this approach, comparative information is not restated. During 2018, the Company will continue to assess the possible impact, if any, on its consolidated financial statements resulting from the application of this amendment. Amendments to IFRS 2 Share-based payments This amendment address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. The amendment is effective for annual periods beginning on or after January 1, 2018. Based on the actual share-based payment plans, the Company does not expect any impact. Amendments to IFRS 4 Insurance contracts The amended standard will give all companies that issue insurance contracts the option to recognize in other comprehensive income, rather than in profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is issued; and give companies whose activities are predominantly connected with insurance an optional temporary exemption from applying IFRS 9 until 2021. The entities that defer the application of IFRS 9 will continue to apply the existing standard IAS 39. The amendment is effective for annual periods beginning on or after January 1, 2018, and will not be relevant to the Company. Amendment to IAS 40 Investment property These amendments clarify when an entity should transfer property into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use. The amendment is effective for annual periods beginning on or after January 1, 2018, and is not expected to be relevant to the Company, since does not have any investment property. Annual Improvements Cycle 2014–2016 These amendments impact two standards: • IFRS 1,’ First-time adoption of IFRS’, regarding the deletion of short-term exemptions for first-time adopters regarding IFRS 7, IAS 19, and IFRS 10 effective January, 1 2018. • IAS 28,’Investments in associates and joint ventures’ regarding measuring an associate or joint venture at fair value effective January, 1 2018. The amendments are not expected to be relevant to the Company. Amendment to IAS 28 - Investments in Associates and Joint Ventures This Amendment was issue in October, 2017 and clarify that companies account for long-term interests in an associate or joint venture to which the equity method is not applied using IFRS 9. The Amendment is mandatory for annual reporting periods beginning on or after January 1, 2019, and is not expected to be relevant to the Company. IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts (IFRS 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (IFRS 4) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, IFRS 17 is effective for reporting periods beginning on or after January 1, 2021 with comparative figures required. Early application is permitted; provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. This standard is not applicable to the Company. IFRIC 22 Foreign currency transactions and advance consideration This IFRIC addresses foreign currency transactions or parts of transactions where there is a consideration that is denominated or priced in a foreign currency. The interpretation provides guidance for when a single payment/receipt is made as well as for situations where multiple payments/receipts are made. The guidance aims to reduce diversity in practice. The amendment is effective for annual periods beginning on or after January 1, 2018, since the Company’s current practice is in line with the Interpretation, the Company does not expect any effect on its consolidated financial statements. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2017 | |
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Segment reporting | 7. Segment reporting The Company’s business activities are conducted as one operating segment – Air transportation, 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 (in millions): 2017 2016 2015 North America $ 610.0 $ 638.9 $ 559.6 Panama 413.5 371.6 374.2 Central America and the Caribbean 275.3 273.6 289.0 Brazil 363.7 245.4 290.6 Colombia 197.9 146.1 174.2 Others South America 667.2 546.2 566.1 $ 2,527.6 $ 2,221.8 $ 2,253.7 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, 2017 | |
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Cash and cash equivalents | 8. Cash and cash equivalents 2017 2016 Checking and saving accounts $ 145,283 $ 173,943 Time deposits of no more than ninety days 30,000 57,500 Overnight deposits 63,157 99,933 Cash on hand 352 311 $ 238,792 $ 331,687 As of December 31, 2017 and 2016, the Company’s cash and cash equivalents are free of restriction or charges that could limit its availability. Time deposits earned interest based on rates determined by the banks in which the instruments are held, ranging between 1.49% and 1.58% for U.S. dollars investments until December 2017 (2016: between 0.42% and 1.00%). |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
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Investments | 9. Investments 2017 2016 Short-term Time deposits between 90 and 365 days $ 705,108 $ 483,002 $ 705,108 $ 483,002 Long-term Time deposits of more than 365 days $ 65,953 $ 953 $ 65,953 $ 953 Time deposits earned interest based on rates determined by the banks in which the instruments are held. The use of the time deposits depends on the cash requirements of the Company and bear interest at rates ranging between 1.37% and 3.75% for investments denominated in U.S. dollars (2016: between 1.00% and 3.75%). During 2017, the Company acquired time deposits denominated in U.S. dollars with a contractual maturity of more than 365 days and bear interest at rates ranging between 3.20% and 3.75%. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2017 | |
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Accounts receivable | 10. Accounts receivable 2017 2016 Credit cards $ 64,420 $ 65,052 Travel agencies and airlines clearing house 36,640 36,318 Cargo, mail and other travel agencies 6,798 9,278 Trade receivables due from related parties 318 499 Government 6,216 1,957 Other 7,366 6,735 121,758 119,839 Provision for impairment (3,673 ) (3,739 ) $ 118,085 $ 116,100 Current 115,641 114,143 Non-current 2,444 1,957 $ 118,085 $ 116,100 See detail of trade receivables due from related parties in note 23. As of December 31, 2017, the Company maintained a non-current The maturity of the portfolio at each year-end 2017 2016 Neither past due nor impaired $ 115,685 $ 110,524 Past due 1 to 30 days 1,286 711 Past due 31 to 60 days 617 914 More than 60 days 497 3,951 118,085 116,100 Impaired 3,673 3,739 Total accounts receivable $ 121,758 $ 119,839 Neither past due nor impaired accounts receivable are those that do not show delays in their payments, according to the payment date agreed with the customer. Movements in the provision for impairment of receivables are as follows: 2017 2016 2015 Balance at beginning of year $ (3,739 ) $ (2,997 ) $ (3,691 ) (Additions) reversals (879 ) (1,511 ) 71 Write-offs 945 769 623 Balance at end of year $ (3,673 ) $ (3,739 ) $ (2,997 ) |
Expendable parts and supplies
Expendable parts and supplies | 12 Months Ended |
Dec. 31, 2017 | |
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Expendable parts and supplies | 11. Expendable parts and supplies 2017 2016 Material for repair and maintenance $ 79,424 $ 71,876 Other inventories 3,058 3,101 82,482 74,977 Allowance for obsolescence (657 ) (475 ) $ 81,825 $ 74,502 Expendable parts and supplies recognized as an expense in the accompanying consolidated statement of profit or loss under “Maintenance, materials and repairs” amount to $ 28.1 million, $24.7 million and $27.2 million, for the years ended December 31, 2017, 2016 and 2015, respectively. |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2017 | |
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Prepaid expenses | 12. Prepaid expenses 2017 2016 Prepaid taxes $ 38,672 $ 39,153 Prepaid commissions 5,297 4,649 Prepaid rent 7,479 6,707 Prepaid insurance 207 772 Prepaid other 19,896 33,524 $ 71,551 $ 84,805 Current 45,421 58,407 Non-current 26,130 26,398 $ 71,551 $ 84,805 Prepaid taxes include $12.5 million of tax advance of VAT and withholdings taxes (2016: $12.7 million). The non-current “Prepaid other” mainly includes operating expenses related to management of fuel and maintenance services. As of December 31, 2017, “Prepaid other” includes $4.0 million (2016: $20.0 million) paid in advance to GE Engines Services, LLC, for the purpose of future maintenance services related to aircraft engines. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property and equipment | Property and equipment Land Flight Purchase Ramp and Furniture, Leasehold Construction Total Cost - Balance at January 1, 2015 $ 6,301 $ 2,707,019 $ 321,175 $ 39,740 $ 25,308 $ 28,580 $ 7,716 $ 3,135,839 Transfer of pre-delivery — 161,169 (161,169 ) — — — — — Additions — 178,582 83,064 2,827 2,269 3,190 9,751 279,683 Disposals — (16,773 ) — (25 ) (864 ) (881 ) (2,343 ) (20,886 ) Reclassifications — 364 — 495 (766 ) 4,977 (5,070 ) — Balance at December 31, 2015 $ 6,301 $ 3,030,361 $ 243,070 $ 43,037 $ 25,947 $ 35,866 $ 10,054 $ 3,394,636 Transfer of pre-delivery — 27,585 (27,585 ) — — — — — Additions — 94,348 34,680 3,026 1,878 73 7,435 141,440 Disposals — (36,812 ) — (604 ) (1,226 ) (98 ) — (38,740 ) Adjustments — 100 — — 2,363 — — 2,463 Reclassifications — (340 ) — (289 ) 645 9,140 (10,896 ) (1,740 ) Balance at December 31, 2016 $ 6,301 $ 3,115,242 $ 250,165 $ 45,170 $ 29,607 $ 44,981 $ 6,593 $ 3,498,059 Transfer of pre-delivery — 28,674 (28,674 ) — — — — — Additions — 158,557 192,196 1,461 3,392 1,614 5,246 362,466 Disposals — (54,114 ) (54 ) (228 ) (711 ) — — (55,107 ) Reclassifications — 3,870 — 1,950 (4,764 ) 3448 (6,061 ) (1,557 ) Balance at December 31, 2017 $ 6,301 $ 3,252,229 $ 413,633 $ 48,353 $ 27,524 $ 50,043 $ 5,778 $ 3,803,861 Accumulated depreciation - Balance at January 1, 2015 (reported) $ — $ (567,341 ) $ — $ (26,560 ) $ (18,197 ) $ (18,405 ) $ — $ (630,503 ) Adjustment on correction of error — (181,242 ) — — — — — (181,242 ) Balance at January 1, 2015 (restated) $ — $ (748,583 ) $ — $ (26,560 ) $ (18,197 ) $ (18,405 ) $ — $ (811,745 ) Depreciation for the year — (133,045 ) — (3,214 ) (2,774 ) (4,229 ) — (143,262 ) Disposals — 13,341 — 23 581 177 — 14,122 Reclassifications — (39 ) — 1,202 (1,501 ) 338 — — Balance at December 31, 2015 (restated) $ — $ (868,326 ) $ — $ (28,549 ) $ (21,891 ) $ (22,119 ) $ — $ (940,885 ) Depreciation for the year — (141,418 ) — (3,724 ) (2,284 ) (4,246 ) — (151,672 ) Disposals — 13,587 — 524 1,220 12 — 15,343 Adjustments — (14 ) — — (2,667 ) — — (2,681 ) Reclassifications — (99 ) — (116 ) 41 174 — — Balance at December 31, 2016 (restated) $ — $ (996,270 ) $ — $ (31,865 ) $ (25,581 ) $ (26,179 ) $ — $ (1,079,895 ) Depreciation for the year — (148,188 ) — (3,811 ) (2,192 ) (4,505 ) — (158,696 ) Disposals — 51,233 — 200 704 — — 52,137 Reclassifications — (1,335 ) — (1,540 ) 4,110 (1,235 ) — — Balance at December 31, 2017 (restated) $ — $ (1,094,560 ) $ — $ (37,016 ) $ (22,959 ) $ (31,919 ) $ — $ (1,186,454 ) Carrying amounts - At December 31, 2015 (restated) $ 6,301 $ 2,162,035 $ 243,070 $ 14,488 $ 4,056 $ 13,747 $ 10,054 $ 2,453,751 At December 31, 2016 (restated) $ 6,301 $ 2,118,972 $ 250,165 $ 13,305 $ 4,026 $ 18,802 $ 6,593 $ 2,418,164 At December 31, 2017 (restated) $ 6,301 $ 2,157,669 $ 413,633 $ 11,337 $ 4,565 $ 18,124 $ 5,778 $ 2,617,407 Flight equipment comprises aircraft, engines, aircraft components and, major maintenance. The amount of $192.2 million corresponds to the advance payments on aircraft purchase contracts during 2017 (2016: $34.7 million), which include $1.8 million of borrowing costs capitalized during the year ended December 31, 2017 (2016 and 2015: Nil). The rate used to determine the amount of borrowing costs eligible for capitalization was 2.14%, which is the interest rate of the specific borrowing (see note 18). As of December 31, 2017, the carrying amount of the asset acquired under finance leases is $535.5 million (2016: $463.4 million). Aircraft and related maintenance components with a carrying value of $1.7 billion are pledged as collateral for the obligation of the special purpose entities as of December 31, 2017 and 2016. As of December 31, 2017 and 2016, construction in progress mainly comprises remodeling projects for airport facilities and offices, and the construction of the new hangar. During 2016, as a result of the annual review of the useful life, the Company concluded that airframe and engines are now expected to remain in operation for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years. The effects of these changes on actual and expected depreciation expense of the current fleet, included in the operational expenses in the consolidated statement of profit or loss, amounts to $11.8 million per year. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
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Leases | 14. Leases Finance leases The Company entered into finance leases of aircraft through Japanese Operating Leases with Call Option (JOLCO) arrangements. These arrangements establish semi-annual payments of obligations, and have a minimum lease term of 10 years, with a purchase option at the end of the lease. As of December 31, 2017, the scheduled future minimum lease payments required under finance leases are as follows: Future minimum Interest Present value Up to one year $ 46,274 $ 16,180 $ 45,416 One to five years 186,344 54,830 169,383 Over five years 388,005 26,924 310,388 Total minimum lease payments $ 620,623 $ 97,934 $ 525,187 As of December 31, 2016, the scheduled future minimum lease payments required under finance leases are as follows: Future minimum Interest Present value Up to one year $ 39,016 $ 14,524 $ 38,407 One to five years 152,880 48,979 139,322 Over five years 366,131 32,727 288,638 Total minimum lease payments $ 558,027 $ 96,230 $ 466,367 Assets acquired under finance leases are classified under property and equipment, and the finance leases are classified as long-term debt (see note 18). During the years ended 2017 and 2016, the Company’s non-cash Operating leases As of December 31, 2017, the scheduled future minimum lease payments required under aircraft and non-aircraft non-cancellable Aircraft Others Up to one year $ 111,568 $ 14,988 One to five years 270,310 74,943 More than five years 18,957 17,509 Total minimum lease payments $ 400,835 $ 107,440 Total lease expense amount to $134.5 million for the year ended December, 31 2017 (2016: $138.8 million and 2015: $142.2 million) included under “Aircraft rentals and other rentals” in the accompanying consolidated statement of profit or loss. The Company leases some of the aircraft it operates 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. Because the lease renewals are not considered to be reasonably assured, the lease payments that would be due during the renewal periods are not included in the determination of lease expenses until the leases are renewed. Leasehold improvements are amortized over the contractually committed lease term, which does not include the renewal periods. Since 2015, the Company is the lessor of two aircraft, as part of the strategy of fleet management, in order to optimize the use of aircraft in relation to the routes scheduled for that year. Each lease is scheduled to expire in 2020. The carrying amount of the two aircraft under operating leases is up to $37.0 million (2015: $41.6 million). Total lease income amounts to $3.5 million for the year ended December 31, 2017 (2016: $3.5 million and 2015: $1.9 million), included under “Other operating revenue” in the accompanying consolidated statement of profit or loss. As of December 31, 2017, future minimum lease receivables under non-cancellable 2017 2016 Up to one year $ 3,480 $ 3,480 One to five years 5,075 8,555 Total minimum lease rental payments $ 8,555 $ 12,035 |
Net pension assets
Net pension assets | 12 Months Ended |
Dec. 31, 2017 | |
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Net pension assets | Net pension assets 2017 2016 Pension assets $ 23,794 $ 25,946 Post-employment benefits (19,997 ) (16,498 ) Other employee benefits (612 ) (622 ) Total employee benefits liability $ (20,609 ) $ (17,120 ) Net pension asset $ 3,185 $ 8,826 In accordance with Panamanian law, the Company contributes to the following defined benefit plans: Seniority premium plan 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: Defined benefit Fair value of Defined benefit Year ended December 31, 2017 Current service cost (1,767 ) — (1,767 ) Interest cost on net benefit obligation (568 ) 778 210 Net benefit expense $ (2,335 ) $ 778 $ (1,557 ) Defined benefit Fair value of Defined benefit Year ended December 31, 2016 Current service cost (1,724 ) — (1,724 ) Interest cost on net benefit obligation (516 ) 689 173 Net benefit expense $ (2,240 ) $ 689 $ (1,551 ) Defined benefit Fair value of Defined benefit Year ended December 31, 2015 Current service cost (1,638 ) — (1,638 ) Interest cost on net benefit obligation (422 ) 532 110 Net benefit expense $ (2,060 ) $ 532 $ (1,528 ) The following table shows reconciliation from the opening balance to the closing balances for net pension asset and its components: Defined benefit Fair value of Other employee Defined benefit At January 1, 2015 $ (12,778 ) $ 18,559 $ (3,259 ) $ 2,522 Current service cost (1,638 ) — — (1,638 ) Interest cost (422 ) 532 — 110 Return on plan assets greater (less) than discount rate — 701 701 Experience (gain) loss (809 ) — — (809 ) Investment return — 105 — 105 Gross benefits paid — (599 ) — (599 ) Assumption changes 222 — — 222 Employer contributions — 3,749 — 3,749 Benefits paid 957 (774 ) — 183 Adjustments — — 1,504 1,504 At December 31, 2015 $ (14,468 ) $ 22,273 $ (1,755 ) $ 6,050 Current service cost (1,724 ) — — (1,724 ) Interest (cost) income (516 ) 689 — 173 Return on plan assets greater (less) than discount rate — 518 518 Experience gain (loss) (1,052 ) — — (1,052 ) Investment return — 27 — 27 Gross benefits paid — (513 ) — (513 ) Assumption changes (67 ) — — (67 ) Employer contributions — 3,970 — 3,970 Benefits paid 1,329 (1,018 ) (75 ) 236 Adjustments — — 1,208 1,208 As of December 31, 2016 $ (16,498 ) $ 25,946 $ (622 ) $ 8,826 Current service cost (1,767 ) — — (1,767 ) Interest (cost) income (568 ) 778 — 210 Return on plan assets greater (less) than discount rate — (21 ) — (21 ) Experience gain (loss) (2,033 ) — — (2,033 ) Investment return — 88 — 88 Gross benefits paid — (440 ) — (440 ) Assumption changes (226 ) — — (226 ) Employer contributions — (1,677 ) — (1,677 ) Benefits paid 1,095 (880 ) — 215 Adjustments — — 10 10 As of December 31, 2017 $ (19,997 ) $ 23,794 $ (612 ) $ 3,185 As of December 31, 2017 and 2016, plan assets are comprised totally by fixed term deposits. As of December 31, 2017 employer contributions is a net amount of regular contributions by $ 3.5 million and retirement of interest earned by $ 5.2 million. For the year ended December 31, 2017 actuarial loss of $2.0 million (2016: $1.1 million and 2015:$2.2 million) where recognized in other comprehensive income. The following were the principal actuarial assumptions at the reporting date: 2017 2016 2015 Economic assumptions - Discount rate 3.15 % 3.37 % 3.45 % Compensation - salary increase 4 % 4 % 4 % Demographic assumptions - Mortality RP - 2000 no collar Termination 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 2017 December, 31 2016 December, 31 2015 Increase Decrease Increase Decrease Increase Decrease Discount rate (0.5% movement) $ (506 ) $ 537 $ (410 ) $ 434 $ (366 ) $ 388 Salary rate (0.5% movement) 99 (89 ) 122 (117 ) 114 (109 ) The following payments are expected contributions to the defined benefit plan in future years: 2017 2016 Up to one year $ 3,424 $ 2,823 One to five years 10,794 9,195 Over five years 11,401 9,453 Total expected payments $ 25,619 $ 21,471 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
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Intangible assets | 16. Intangible assets Other intangibles assets Goodwill License and Intangible Total Cost - Balance at January 1, 2015 $ 20,380 $ 37,663 $ 24,474 $ 82,517 Additions — 121 19,297 19,418 Disposals — (65 ) — (65 ) Reclassifications — 26,090 (26,090 ) — Balance at December 31, 2015 20,380 63,809 17,681 101,870 Additions — 73 14,401 14,474 Disposals — (1,546 ) — (1,546 ) Impairment loss — — (5,931 ) (5,931 ) Reclassifications — 11,813 (10,073 ) 1,740 Balance at December 31, 2016 20,380 74,149 16,078 110,607 Additions — 1,783 16,898 18,681 Disposals — (4,891 ) — (4,891 ) Reclassifications — 3,642 (2,085 ) 1,557 Balance at December 31, 2017 20,380 74,683 30,891 125,954 Amortization - Balance at January 1, 2015 $ — $ (25,222 ) $ — $ (25,222 ) Amortization for the year — (7,287 ) — (7,287 ) Disposals — 65 — 65 Balance at December 31, 2015 — (32,444 ) — (32,444 ) Amortization for the year — (10,207 ) — (10,207 ) Disposals — 1,546 — 1,546 Balance at December 31, 2016 — (41,105 ) — (41,105 ) Amortization for the year — (8,628 ) — (8,628 ) Disposals — 4,894 — 4,894 Balance at December 31, 2017 — (44,839 ) — (44,839 ) Carrying amounts - At December 31, 2015 $ 20,380 $ 31,365 $ 17,681 $ 69,426 At December 31, 2016 $ 20,380 $ 33,044 $ 16,078 $ 69,502 At December 31, 2017 $ 20,380 $ 29,844 $ 30,891 $ 81,115 Goodwill The Company performed its annual impairment test in September 2017 and the recoverable amount was estimated at $4.4 billion (2016: $3.5 billion), an amount far in excess of the $20.4 million of goodwill recorded. The cash flows beyond the five-year period are extrapolated using a 3.1% growth rate. It was concluded that no impairment charge is necessary since the estimated recoverable amount of the CGU exceed its carrying value by approximately 92%. Key assumptions used in value in use calculations 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 Sensitivity to changes in assumptions • The Company estimated that a reduction to 11.5% or an increase to 13.5% in the discount rate would not cause the carrying amounts to exceed the recoverable amount. Other intangible assets Intangible assets in process During 2016, the Company evaluated the recoverability of the development cost generated in a project in process related to some systems; as a result of this evaluation, the Company recognized an impairment of $5.9 million of incurred cost that will no longer generate probable future economic benefits. Intangible assets in process as of December 31, 2017 and 2016 mainly comprise improvements to the tickets reservation system, and other operational system. During 2016, the Company capitalized an $11.8 million of a new operating and administrative systems and other program for ConnectMiles. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2017 | |
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Other assets | 17. Other assets 2017 2016 Current - Interest receivable $ 10,443 $ 6,741 Other 1,258 909 11,701 7,650 Non-current Guarantee deposits 14,568 10,401 Deposits for litigation 12,390 12,482 Other 4,182 4,182 31,140 27,065 $ 42,841 $ 34,715 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). |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
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Debt | 18. Debt 2017 Due Effective rates Carrying Long-term fixed rate debt 2025 1.81% to 5.58% $ 626,150 Long-term variable rate debt 2027 1.54% to 3.04% 420,634 Loans payables 2018 2.33% to 2.58% 127,797 1,174,581 Current maturities (298,462 ) Long-term debt $ 876,119 2016 Due Effective rates Carrying Long-term fixed rate debt 2025 1.81% to 5.58% $ 702,454 Long-term variable rate debt 2026 0.90% to 2.23% 398,178 Loans payables 2017 1.88% to 1.98% 83,500 1,184,132 Current maturities (222,718 ) Long-term debt $ 961,414 Maturities of long-term debt for the next five years are as follows: Year ending December 31, 2018 298,462 2019 167,191 2020 118,376 2021 96,070 2022 89,144 Thereafter 405,338 $ 1,174,581 As of December 31, 2017, long-term fixed rate debt included $394.2 million (2016: $416.3 million) and long-term variable debt included $128.4 million corresponding to finance leases (2016: $45.4 million) (see note 14). As of December 31, 2017 the Company had $372.0 million (2016: $446.5 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 $231.9 million as of December 31, 2017 (2016: $286.1 million). In the past, the Company has extended the maturity of some of its aircraft financing to 15 years through the use of a “Stretched Overall Amortization and Repayment” (SOAR), structure which provides serial draw-downs, calculated to result in a 100% loan accreting to a recourse balloon at the maturity of the Export-Import Bank guaranteed loan. The Company currently has 4 aircraft finance under SOAR structure which had an outstanding balance of $28.3 million as of December 31, 2017 (2016: $24.8 million). As of December 31, 2017, the loan payable in the amount of $127.8 million (2016: $83.5 million) resulted from the use of the lines of credits (see note 27 for information regarding financial covenants related to the Company’s financial agreement). The detail of finance cost and income is as follows: 2017 2016 2015 Finance income - Interest income on short-term bank deposits $ 1,499 $ 675 $ 3,662 Interest income on investment 16,440 12,325 22,285 $ 17,939 $ 13,000 $ 25,947 Finance cost - Interests expense on bank loans $ (32,599 ) $ (32,647 ) $ (30,866 ) Interest on factoring (2,624 ) (4,377 ) (2,289 ) $ (35,223 ) $ (37,024 ) $ (33,155 ) Changes in liabilities arising from financing activities: Non-cash 2016 Cash flows New debt transactions 2017 Debt Obligations under finance leases $ 461,797 $ (28,107 ) $ — $ 89,000 $ 522,690 Debt 722,335 (218,242 ) 147,798 — 651,891 Total liabilities from financing activities $ 1,184,132 $ (246,349 ) $ 147,798 $ 89,000 $ 1,174,581 During 2017, the Company’s non-cash |
Trade, other payables and finan
Trade, other payables and financial liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Trade, other payables and financial liabilities | 19. Trade, other payables and financial liabilities 2017 2016 Account payables $ 116,554 $ 104,176 Account payables to related parties 12,880 8,681 129,434 112,857 Other payables and financial liabilities - Fuel derivative instruments — 2,801 Others 1,156 4,779 1,156 7,580 $ 130,590 $ 120,437 See details of the account due to related parties in note 23. The Company used to engage on fuel derivative instruments, with the purpose of covering the risk of potential sudden and significant increases in jet fuel prices. However, the use of these instruments does not satisfy the requirement for hedge accounting. There are no fuel derivative instruments outstanding at December, 2017 (see note 28.1). |
Accrued expenses payable
Accrued expenses payable | 12 Months Ended |
Dec. 31, 2017 | |
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Accrued expenses payable | 20. Accrued expenses payable 2017 2016 Accruals and estimations $ 9,059 $ 5,849 Labor related provisions 44,188 31,785 Liability for social security contributions 6,432 5,700 Other 642 1,028 $ 60,321 $ 44,362 As of December 31, 2017 accruals and estimations include the estimated balance of the current portion of the provision for return condition of $4.9 million (2016: $2.3 million) (see note 21). As of December 31, 2017, accruals and estimations include the estimated balance of the current portion of the provision for maintenance of $4.2 million (2016: $3.5 million) (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, 2017 | |
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Other long-term liabilities | 21. Other long-term liabilities Provision Provision for Other long- Total Balance at January 1, 2017 $ 14,318 $ 58,299 $ 41,651 $ 114,268 Increases 1,021 40,499 463 41,983 Used — (5,824 ) (3,325 ) (9,149 ) Reclassification — — (7,235 ) (7,235 ) Effect of movements in exchange rates (187 ) — — (187 ) Balance at December 31, 2017 $ 15,152 $ 92,974 $ 31,554 $ 139,680 Current — 4,897 4,162 9,059 Non-current 15,152 88,077 27,392 130,621 $ 15,152 $ 92,974 $ 31,554 $ 139,680 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 restitution costs related to aircraft held under operating leases throughout the duration of the lease. As of December 31, 2017 and 2016, the Company 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 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 are billed by power by the hour and charged to the consolidated statement of profit or loss. As of December 31, 2017, the provision for maintenance amount to $28.9 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, 2017 | |
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Income taxes | 22. Income taxes 2017 2016 2015 Current taxes expense - Current period $ (43,034 ) $ (31,666 ) $ (30,435 ) Adjustment for prior period 455 (127 ) (1,228 ) $ (42,579 ) $ (31,793 ) $ (31,663 ) Deferred taxes expenses - Origination and reversal of temporary differences (6,731 ) (6,478 ) (1,096 ) Total income tax expense $ (49,310 ) $ (38,271 ) $ (32,759 ) During the year 2016 the deferred tax balances have been re-measured The balances of deferred taxes are as follows: Statement Statement of of financial position profit or loss 2017 2016 2017 2016 2015 Deferred tax liabilities Maintenance deposits $ (26,586 ) $ (23,790 ) $ 2,796 $ 2,286 $ 5,866 Prepaid dividend tax (14,103 ) (12,432 ) 1,671 5,300 — Property and equipment (9,975 ) (7,867 ) 2,108 (1,599 ) 3,579 Other (4,050 ) (6,013 ) (1,963 ) (10,147 ) 11,692 Set off tax 2,249 5,128 2,879 16,269 (24,568 ) $ (52,465 ) $ (44,974 ) $ 7,491 $ 12,109 $ (3,431 ) Deferred tax assets Provision for return conditions $ 7,859 $ 7,606 $ (253 ) $ 4,417 $ (11,203 ) Air traffic liability 1,281 1,015 (266 ) 305 1,076 Fuel derivative — 107 107 4,403 94 Other provisions 4,859 4,587 (272 ) (3,059 ) 4,716 Tax loss 7,349 10,152 2,803 4,572 (14,724 ) Set off tax (2,249 ) (5,128 ) (2,879 ) (16,269 ) 24,568 $ 19,099 $ 18,339 $ (760 ) $ (5,631 ) $ 4,527 $ (33,366 ) $ (26,635 ) $ 6,731 $ 6,478 $ 1,096 At December 31, 2017 the deferred tax assets include an amount of $7.3 million ($10.1 million at December, 2016) which relates to carried forward tax losses of Copa Colombia. During 2017, the subsidiary generated a tax profit. 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 remaining tax losses within the next three to five years, however, these tax losses can be carried forward indefinitely. The aggregate amount of temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized, is $397.9 million as of December 31, 2017 (2016: $237.1 million). Reconciliation of the effective tax rate is as follows: Tax rate 2017 Tax rate 2016 Tax rate 2015 Net income (loss) $ 369,658 $ 325,928 $ (240,634 ) Total income tax expense 49,310 38,271 32,759 Profit (loss) excluding income tax 418,968 364,199 (207,875 ) Income taxes at Panamanian statutory rates 25.0 % 104,742 25.0 % 91,050 25.0 % (51,969 ) Panamanian gross tax election Effect of tax rates in non-panamanian 0.1 % 590 (2.5 %) (9,260 ) (11.0 %) 22,936 Exemption in non - taxable countries (13.3 %) (55,567 ) (12.0 %) (43,646 ) (29.1 %) 60,564 Adjustment for prior period (0.1 %) (455 ) 0.03 % 127 (0.6 %) 1,228 Provision for income taxes 11.7 % $ 49,310 10.5 % $ 38,271 (15.7 %) $ 32,759 |
Accounts and transactions with
Accounts and transactions with related parties | 12 Months Ended |
Dec. 31, 2017 | |
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Accounts and transactions with related parties | 23. Accounts and transactions with related parties 2017 2016 Account receivable - Panama Air Cargo Terminal $ 254 $ — Editora del Caribe, S.A. 32 15 Petroleos Delta, S.A. 19 5 Banco General, S.A. 12 — Assa Compañía de Seguros, S.A. 1 479 $ 318 $ 499 Account payable - Petróleos Delta, S.A. $ 10,371 $ 7,504 Assa Compañía de Seguros, S.A. 1,431 687 Desarrollos Inmobiliarios del Este, S.A. 650 421 Motta International, S.A. 81 25 Panama Air Cargo Terminal 200 — Cable Onda, S.A. 112 21 Galindo, Arias & López 31 16 Global Brands, S.A. 4 7 $ 12,880 $ 8,681 Transactions with related parties for the year ended December 31 are as follows: Related party Transaction Amount of Amount of Amount of Petróleos Delta, S.A. Purchase of jet fuel 290,172 229,899 248,944 ASSA Compañía de Seguros, S.A. Insurance 8,527 7,128 9,170 Desarrollo Inmobiliario del Este, S.A. Property leasing 3,625 3,795 2,982 Profuturo Administradora de Fondos de Pensión y Cesantía Payments 2,386 3,238 — Motta International Purchase 1,632 1,646 1,290 Cable Onda, S.A. Communications 1,448 1,625 — GBM International, Inc. Technological support 273 272 533 Galindo, Arias & López Legal services 373 341 271 Global Brands, S.A. Purchase 79 67 47 Panama Air Cargo Terminal Handling 4,869 — — Lubricantes Delta, S.A. Fuel accesories — 63 — Editora del Caribe, S.A. Advertising 4 (162 ) 22 Banco General, S.A. Interest income $ (2,986 ) $ (1,284 ) $ (1,301 ) Banco General, S.A.: Petróleos Delta, S.A.: As of December 31, 2017, the Company maintained guarantee deposits with Petróleos Delta, S.A. in the amount of $11.8 million (2016: $7 million), recorded as “Other non-current ASSA Compañía de Seguros, S. A.: Desarrollo Inmobiliario del Este, S. A.: Motta Internacional, S.A. & Global Brands, S. A.: GBM International, Inc.: Galindo, Arias & López: Editora del Caribe, S.A.: Cable Onda, S.A.: Panama Air Cargo Terminal: Compensation of key management personnel Key management personnel compensation is as follows: 2017 2016 2015 Short-term employee benefits $ 5,133 $ 3,763 $ 3,570 Post-employment pension 99 72 68 Share-based payments 5,524 5,799 3,023 $ 10,756 $ 9,634 $ 6,661 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, 2017 | |
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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, 2017, the Company had 33,776,480 Class A shares issued (2016: 33,743,286) and 31,185,641 shares outstanding (2016: 31,112,356), 10,938,125 Class B shares issued and outstanding (2016: 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. In 2017, the Company paid quarterly dividends in the amount of $0.51 per share for the first and second quarters and $0.75 per share for the third and fourth quarter (2016: $0.51 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. In the first quarter of 2015, the Company repurchased 167,650 shares for a total amount of $17.9 million. During September 2015, the Company entered into an Accelerated Share Repurchase (“ASR”) with Citibank for a period of approximately three months for a total amount of $100 million. On December 15, 2015, the Bank delivered to the Company 1,960,250 shares, recognized at the settlement price of $51.01 per share. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2017 | |
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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 life February, 2013 19,786 15% first three anniversaries 5 years 25% fourth and 30% fifth anniversary February, 2015 13,709 One-third 3 years April, 2015 4,915 15% first three anniversaries 5 years 25% fourth anniversary June, 2015 10,920 One-third 3 years June, 2015 4,912 Third anniversary 3 years June, 2015 6,750 15% first three anniversaries 5 years 25% fourth anniversary December, 2015 429 Third anniversary 3 years February, 2016 19,012 One-third 3 years February, 2016 147,000 15% first three anniversaries 5 years 25% fourth anniversary February, 2016 63,000 Fifth anniversary 5 years May, 2016 7,899 15% first three anniversaries 5 years 25% fourth anniversary May, 2016 4,739 One-third 3 years June, 2016 25,280 One-third 3 years June, 2016 7,925 Third anniversary 3 years September, 2016 6,668 Third anniversary 3 years September, 2016 5,005 One-third 3 years February, 2017 22,012 One-third 3 years June, 2017 11,980 One-third 3 years June, 2017 2,237 Third anniversary 3 years Non-vested non-vested A summary of the non-vested 2017 2016 2015 Non-vested 333,183 139,962 199,786 Granted 36,229 291,872 36,291 Vested (62,224 ) (94,208 ) (94,704 ) Forfeited (3,035 ) (4,443 ) (1,411 ) Non-vested 304,153 333,183 139,962 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 Stock options In March 2007, Copa Holdings granted 35,657 equity stock options to certain named executive officers, which vested over three (3) years in yearly installments equal to one-third The weighted-average fair value of the stock options at the grant date amounts to $22.3 and was estimated using the Black-Scholes option-pricing model assuming an expected dividend yield of 0.58%, expected volatility of approximately 37.80% based on historical volatility, weighted average risk-free interest rate of 4.59%, and an expected term of 6 years calculated under the simplified method. A summary of the options award activity under the plan as of December 31, 2017 and 2016 and changes during the year is as follows (in number of shares): 2017 2016 2015 Outstanding as of January 1 19,894 20,940 20,940 Exercised (11,061 ) (1,046 ) — Forfeited (8,833 ) — — Outstanding as of December 31 — 19,894 20,940 The Company uses the accelerated method to recognize the compensation cost for stock options. There is no additional compensation cost to be recognized for stock options. This option award expired on March 2017. 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 (loss) per share
Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings (loss) per share | 26. Earnings (loss) 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 income (loss) and share data used in the basic and diluted earnings per share is as follows: 2017 2016 2015 Basic earnings (loss) per share - Net income (loss) $ 369,658 $ 325,928 $ (240,634 ) Weighted-average shares outstanding 42,111 42,036 43,716 Non-vested 308 322 145 42,419 42,358 43,861 8.71 7.69 (5.49 ) 2017 2016 2015 Diluted earnings (loss) per share - Net income (loss) $ 369,658 $ 325,928 $ (240,634 ) Weighted-average shares outstanding used for basic earnings per share 42,419 42,358 43,861 Share options on issue — 5 8 42,419 42,363 43,869 8.71 7.69 (5.49 ) |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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Commitments and contingencies | 27. Commitments and contingencies Purchase contracts As of December 31, 2017, the Company has subscribed two (2) purchase contracts with Boeing. The first contract entails two (2) firm orders of Boeing 737 Next Generation aircraft, which will be delivered in 2018, while the second contract entails seventy-one The firm orders have an approximate value of $9.5 billion based on aircraft list prices, including estimated amounts for contractual price escalation and pre-delivery Covenants As a result of the various aircraft financing contracts entered into by the Company, the Company is required to comply with certain financial covenants. These covenants, among other things, require the Company to maintain earnings before income taxes, depreciation, amortization, and restructuring, or rent cost (“EBITDAR”) to a fixed charge ratio of at least 2.5 times, a minimum tangible net worth of $160 million, an EBITDAR to a finance charge expense ratio of at least 2.0 times, a total liability plus operating leases minus operating cash to tangible net worth ratio of less than 5.5, a long-term obligations to an EBITDAR ratio of less than 6.0, a minimum unrestricted cash balance of $50 million, and a minimum of $75 million in available cash, cash equivalents, and short-term investments. As of December 31, 2017 and 2016, the Company was in compliance with all required covenants. Labor unions Approximately 62% of the Company’s 9,045 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 passenger service agents’ union (UGETRACO), and 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 during the late first quarter 2018 and the flight attendants’ union during the early third quarter of 2018. 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). Copa entered into collective bargaining with ACDAC and ACAV in January 2018; both of which are expected to end towards the end of the first quarter of 2018. 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, 2017. As of December 31, 2017, 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; employees in Uruguay are covered by an industry union, 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 $25.5 million as of December 31, 2017 (2016: $26.6 million). These letters of credit are pledged mainly for operating lessors, maintenance providers and airport operators. Copa Airlines has lines of credit for a total of $212.3 million, in which it has committed lines of credit totaling $20.0 million, including one line of credit for $15 million and one overdraft line of credit of $5 million with Banco General. Copa Airlines also has uncommitted lines of credit for a total of $192.3 million, including one line of credit of $100.0 million with Bladex, one line of credit of $77.3 million with Citibank, and one line of credit of $15 million with Banco Nacional de Panama. These lines of credit have been put in place to bridge liquidity gaps and for other potential contingencies. As of December 31, 2017, the Company has a balance of $127.8 million from lines of credit (2016: $83.5 million). Tax audit In March 2016, the Company received notifications from the tax authorities in Colombia and Brazil. 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. |
Financial instruments - Risk ma
Financial instruments - Risk management and fair value | 12 Months Ended |
Dec. 31, 2017 | |
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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, which it mitigates through derivatives contracts. The main risk associated with the industry is the variation in fuel prices, which the Company mitigates through derivatives instruments contracts. The Company periodically enters into transactions for derivative financial instruments, namely, fuel derivative instruments, with the purpose of providing for short to mid-term The Company’s derivative contracts did not qualify as hedges for financial reporting purposes. Accordingly, changes in fair value of such derivative contracts, which amounted to gains of $2.8 million (2016: gains of $111.6 million and loss of $11.6 million in 2015), were recorded as a component of “Net change in fair value of derivatives” in the accompanying consolidated statement of profit or loss. The Company’s derivative contracts matured in December 2017 (2016: $2.8 million), the fair value of derivative was recorded in “Trade, other payables and financial liabilities” in the consolidated statement of financial position. The Company’s purchases of jet fuel are made primarily from one supplier (see note 19). Financial derivative instruments expose the Company to credit loss in the event of nonperformance by the counterparties to the agreements. However, the Company does not expect any failure of the counterparties to meet their obligations, as the Company’s policy to manage credit risk is to engage in business with counterparties that are financially stable and experienced in energy risk management. The amount of such credit exposure is generally the unrealized gain, if any, of such contracts. Fuel price risk is estimated as a hypothetical 10% increase in the December 31, 2017 cost per gallon of fuel. Based on projected 2018 fuel consumption, such an increase would result in an increase to aircraft fuel expense of approximately $60.9 million in 2018 (unaudited). 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 with the exchange rates at the end of the period, except for non-monetary The majority of the 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 43.7% of revenues and 59.8% of expenses, respectively. A significant part of our revenue is denominated in foreign currencies, including the Brazilian real, Colombian peso and Argentinian peso, which represented 16.5%, 11.4% and 7.8%, respectively (2016: 10.1%, 11.8% and 6.8% respectively). Generally, the Company’s exposure to most of these foreign currencies, with the exception of the Venezuelan bolivar, is limited to the period of up to two weeks between the completion of a sale and the conversion to U.S. dollar. Foreign companies operating in Venezuela, including airlines, have experienced increasing delays for approvals by the Venezuelan government to repatriate funds. To reduce the cash exposure in Venezuela, the Company processes its passenger tickets mainly in U.S. dollars, constantly monitors sales and adjusts capacity. During 2015, the Company used Sistema Complementario de Administracion de divisas (“SICAD”) rate of VEF 13.50 per U.S. dollar. As of December 31, 2015, the Company decided that in view of the lack of repatriation the SICAD rate could no longer be considered available in practice, this combined with the deterioration of the Venezuelan economy. Instead, the Company has chosen to use Sistema Marginal de Divisas (“SIMADI”) exchange rate of VEF198.7 per U.S. dollar to translate all the financial assets and liabilities at the 2015 year-end, This rate was applied to all funds in Venezuela, resulting in a foreign currency translation loss of $430.2 million as of December 31, 2015. On March 9, 2016, the Venezuelan government published in official gazette The Exchange Agreement No. 35 where is indicated the elimination of the SICAD and the preferential exchange rate of VEF 13.50 per U.S. dollar for aeronautical operations. The SICAD was replace by Sistema de tipo de cambio complementario flotante de Mercado (DICOM), which consists of a system of floating exchange rate according to market conditions. As of December 31, 2017, the exchange rate to translate all the financial assets and liabilities in Venezuela, according to DICOM, is VEF 3,345.0 (2016: VEF 673.7) per 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: 2017 2016 Assets Cash and cash equivalents $ 25,189 $ 51,718 Investments 277 276 Accounts receivable, net 75,769 69,460 Prepaid expenses 32,045 34,635 Other assets 29,459 35,343 Total assets $ 162,739 $ 191,432 Liabilities Accounts payable 37,186 32,098 Taxes payable 39,559 55,060 Other liabilities 25,471 40,342 Total liabilities $ 102,216 $ 127,500 Net position $ 60,523 $ 63,932 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 originates from cash and cash equivalents, deposits in banks, investments in financial instruments and accounts receivables. It is the risk that the counterparty is not being capable of fulfilling its contractual obligations, causing financial losses to the Company. To mitigate the credit risk arising from deposits in banks and investments in financial instruments, the Company only conducts business with financial institutions that have an investment grade above BBB-from 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. Accounts receivable from cargo agencies are more likely to be exposed to credit risk, but this is mitigated with the established policies to make sure that the credit sales are to clients with good credit history. 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. 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 is originates mainly from long-term debts related to aircraft acquisition. These long-term lease payments at variable interest rates expose the Company to cash flow risk. To mitigate the effect of variable cash flows associated to contracted rates and transform them into fixed rates, the Company entered into one Interest Rates Swap contract to hedge against market rates fluctuations. As of December 31, 2017 and 2016, fixed interest rates range from 1.81% to 5.58%, and the main floating rate is LIBOR. The Company’s earnings are affected by changes in interest rates due to the impact of those changes on interest expenses from variable-rate debt instruments and operating leases, and on interest income generated from cash and investment balances. If the interest rate average is 10% more in 2018 than in 2017, the interest expense would increase by approximately $1.4 million and the fair value of the debt would decrease by approximately $1.3 million. If interest rates average 10% less in 2018 than in 2017, the interest income from marketable securities would decrease by approximately $1.4 million and the fair value of the debt would increase by approximately $1.3 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, 2017. 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, 2017 Note Carrying Contractual Less than Between 1 More than Non-derivative Debt 18 $ 1,174,581 $ 1,313,191 $ 329,284 $ 549,726 $ 434,181 Account payable 19 116,554 116,554 116,554 — — Account payable to related parties 19 12,880 12,880 12,880 — — $ 1,304,015 $ 1,442,625 $ 458,718 $ 549,726 $ 434,181 December 31, 2016 Note Carrying Contractual Less than Between 1 More than Non-derivative Debt 18 $ 1,184,132 $ 1,334,816 $ 252,680 $ 616,031 $ 466,105 Account payable 19 104,174 104,174 104,174 — — Account payable to related parties 19 8,681 8,681 8,681 — — 1,296,987 1,447,671 365,535 616,031 466,105 Derivative financial liabilities Fuel derivative instrument 19 2,801 2,801 2,801 — — $ 2,801 $ 2,801 $ 2,801 $ — $ — 28.6 Equity risk management The Company’s objectives when managing equity are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal equity structure to reduce the cost of capital. Consistent with others in the industry, the Company monitors equity on the basis of the gearing ratio. This ratio is calculated as net debt divided by total equity. Net debt is calculated as total borrowings (including current and non-current The Company’s gearing ratio (unaudited) is a follows: 2017 2016 Total debt (note 18) $ 1,174,581 $ 1,184,132 Less: non-restricted (943,900 ) (814,689 ) Net debt 230,681 369,443 Total equity 1,905,612 1,636,753 Total capitalization 2,136,293 2,006,196 Gearing ratio 10.8 % 18.4 % 28.7 Fair value measurement The following table shows the carrying amount and fair values of financial assets and financial liabilities as of December 31: Carrying amount Fair Value Note 2017 2016 2017 2016 Financial assets Cash and cash equivalents 8 $ 238,792 $ 331,687 $ 238,792 $ 331,687 Short-term investments 9 705,108 483,002 705,108 483,002 Account receivable 10 118,085 116,100 118,085 116,100 Long-term investments 9 65,953 953 65,953 953 Financial liabilities Debt 18 1,174,581 1,184,132 1,053,070 1,062,952 Account payable 19 129,434 112,857 129,434 112,857 Fuel derivative instruments 19 — 2,801 — 2,801 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 following methods and assumptions were used to estimate the fair values: • Cash and cash equivalents, short-term investments approximate their carrying amounts largely due to the short-term maturities of these instruments. • Accounts receivable are evaluated by the Company based on parameters such as interest rates, and risk characteristics. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. • 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. 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 2016 Level 1 Level 2 Level 3 Liabilities Fuel derivatives 2,801 — 2,801 — Total liabilities $ 2,801 $ — $ 2,801 $ — |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
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Subsequent events | 29. Subsequent events Stock Grants During the first quarter of 2018, the Compensation Committee of the Company’s Board of Directors approved three awards. Awards under these plans will grant approximately 39,761 shares of non-vested Venezuela’s exchange rate On January 26, 2018, the Venezuelan government published in official gazette the Exchange Agreement No. 39 where is indicated the elimination of the Sistema de divisas protegidas (DIPRO) which were the preferential exchange rate of VEF 10 per U.S. dollar for importation of medicine and foods. The new model unifies the exchange rate that will manage through the DICOM and also include change to the way of auctions are held. The new regulation establishes that the exchange rate resulting from the auctions carried out through the DICOM is the one that will be used as a reference for all foreign currency settlement operations, both in the public and private sectors. In its first auction on February 5, 2018, the Venezuela’s Central Bank reports the new DICOM exchange rate of VEF 25,000.0 per U.S. dollar. The Company does not expect a significant impact on its consolidated financial statement on applying the new exchange rate since the operations, assets and liabilities in VEF are not material. Temporarily cancelation of all flights to Venezuela On April 5, 2018, the government of Venezuela announced that it was temporarily suspending economic, financial and commercial relations with Panama, including certain companies and Panamanian citizens, for a period of 90 days. This announcement includes the operations of Copa Airlines in Venezuela. Copa Airlines has cancelled all of its flights between Panama and Venezuela for the next 90 days, effective immediately. For the year ended December 31, 2017, revenue from Copa Airlines’ flights to Venezuela, including connecting traffic, represented about 5% of consolidated revenues and direct flights between Panama and Venezuela. While it is too early to predict the ultimate impact of these restrictions, the Company does not expect any such cancellations to have other effects on Company’ consolidated operations. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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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 Ownership 2017 2016 Copa Airlines Panama 99 % 99 % Copa Colombia Colombia 99 % 99 % 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 to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of the consideration received or receivable, 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 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. The Company performs a monthly liability evaluation, and a provision is recognized for tickets that are expected not to be used or redeemed. A year after the sales is made, all unredeemed sales are transferred from “Air Traffic liability” and recognized as revenue, and the provision is reversed. A significant portion of the Company’s ticket sales are processed through major credit card companies, resulting in accounts receivable that are generally short-term in duration and typically collected prior to when revenue is recognized. The Company believes that the credit risk associated with these receivables is minimal. 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 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, we do not include such amounts 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. 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 is primarily comprised of commissions earned on tickets sold for flights on other airlines, special charges, charter flights, and other services provided to other airlines and are recognized when the transportation or service is provided. Frequent flyer program On July 1, 2015, the Company launched its frequent flyer program, whose objective is to reward customer loyalty through the earning of miles whenever the programs members make certain flights. The miles or points earned can be exchanged for flights on Copa or any of other Star Alliance partners’ airlines. 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 multiple-deliverable revenue arrangement, in accordance with International Financial Reporting Interpretation Committee (IFRIC) 13 Customer loyalty programs Furthermore, the Company estimates miles earned by members which will not be redeemed for an award before they expire (breakage). 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 annually. 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 or Copa Colombia flights, 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. In addition, the Company sells miles to non-airline co-branded Prior to July 1, 2015, the Company participated in United Airlines (“United”) Mileage Plus frequent flyer program. Under the terms of the Company’s frequent flyer agreement with United, Mileage Plus members received Mileage Plus frequent flyer mileage credits for traveling on the Company’s flights. Copa paid United a per mile rate for each mileage credit granted by United at the time of Copa’s flight. The amounts paid to United were recognized by the Company as a reduction to “Passenger revenue” in the consolidated statement of profit or loss. Upon payment the Company did not have any further obligation with respect to the mileage credits. |
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. 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 derecognition Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, receivables, held to maturity investments, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial assets are recognized initially at fair value plus directly attributable transaction costs, except in the case of financial assets at fair value through profit and loss. 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 of the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all of 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 of 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. (ii) Measurement The subsequent measurement of financial assets depends on their classification as described below (see also note 4, Fair value measurement for financial assets): • Held to maturity investments The Company invests in short-term deposits with original maturities of more than three months but less than one year. Additionally, the Company invests in long-term deposits 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. All of these investments are classified as held-to-maturity 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 in finance income in the consolidated statement of profit or loss. Restricted cash and cash equivalents are classified within short-term and long-term investments and are held as collateral for letters of credit. • Receivables Accounts receivable are non-derivative The Company records its best estimate of the provision for impairment of receivables, based on several factors, including varying customer classifications, agreed upon credit terms, and the aging of the individual debt. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss. The Company considers that there is evidence of impairment 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 not documents that establishing the debt. (iii) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount presented in the 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. Non-derivative (i) Initial recognition and derecognition The Company’s financial liabilities include trade and other payables and loans and borrowings. Financial liabilities are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. 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. (ii) Measurement The measurement of financial liabilities depends on their classification as described below: • Debt All borrowings and loans are initially recognized at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest rate (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. • Other financial liabilities Other financial liabilities are initially recognized at fair value, including directly attributable transaction costs. Subsequent to initial recognition, they 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 amortization process. 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. The fair values of various derivative instruments used for hedging purposes are shown in note 28.7. For hedge accounting purposes, hedges are classified into: • fair value hedges • cash flow hedges • hedges of a net investment in a foreign operation. The Company designated certain derivatives as cash flow hedges. At the inception of a hedge relationship, the Company formally designates and documents the relationship between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions, as expected, are highly effective in offsetting changes in fair values or cash flows of hedged items. Any gain or loss on the hedging instrument relating to the effective portion of a cash flow hedge is recognized in the consolidated statement of comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated statement of profit or loss. Amounts recognized as other comprehensive income are transferred to the statement of profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized. When the hedged item is the cost of a non-financial non-financial non-financial As of December 31, 2017 and 2016, the Company does not have financial instruments designated under hedge accounting. |
Impairment | (g) Impairment Impairment of financial assets The Company assesses at the end of each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. An impairment exists if one or more events that have occurred since the initial recognition of the asset (an incurred “loss event”) have an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Evidence of impairment may include indicators that the debtors or the group of debtors are experiencing financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization, and observable data indicating that there is a measurable decrease in the estimated future cash flows. • Impairment of financial assets carried at amortized cost For financial assets carried at amortized cost, the Company first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment. The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original EIR. The carrying amount of the asset is reduced and the loss recorded in the consolidated statement of profit or loss. Impairment of non-financial 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 in the consolidated statement of profit or loss in those expense categories consistent with the function of the impaired asset. 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. |
Expendable parts and supplies | (h) 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 | (i) 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 | (j) Property and equipment comprise mainly airframe, engines, maintenance components and other related flight equipment. All property and equipment is 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 over the estimated useful lives 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. Estimate useful Residual Property and equipment life (years) 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 life of the leasehold improvement — 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 operating of the scheduled usage period to the next major inspection event or the remaining life of lease term (as appropriate). The value of major maintenance inspection or overhaul embedded in the aircraft operating leases is not recognised as a separated component under IAS 17 Leases The residual values, useful lives, and methods of depreciation of property and equipment are reviewed at each financial year-end During 2016, as result of the annual review of the useful life, the Company concluded that airframe and engines are now expected to remain in operations for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years (see note 13). The land owned by the Company is recognized at cost less any accumulated impairment. |
Leases | (k) Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether the fulfillment of the agreement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in the arrangement. A reassessment is made after inception of the lease only if one of the following applies: • there is a change in contractual terms, other than a renewal or extension of the arrangement; • a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term; • there is a change in the determination of whether fulfillment is dependent on a specified asset; or • there is a substantial change to the asset. Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment. When a renewal option is exercised or extension granted, lease accounting shall commence or cease at the date of renewal or extension. The Company as lessor (i) Operating leases 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. 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. The Company as lessee (ii) Operating leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense in the consolidated statement of profit or loss on a straight-line basis over the lease term. (iii) Finance leases Leases where the lessor substantially transfers all the risks and benefits of ownership of the leased item are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance cost and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability; these are recognized as finance costs in the consolidated statement of profit or loss. Sale and leaseback transactions The Company enters into transactions whereby aircraft are sold and subsequently leased back. The Company has not entered into sale and leaseback transactions that resulted in finance leases. If a sale and leaseback transaction results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss is recognized immediately. If the sale price is below fair value any profit is recognized immediately. If the transaction is not at fair value, any resulting loss that is compensated for by future lease payments at below market rate is deferred and amortized over the lease term. |
Intangible assets | (l) 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 lives 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 lives 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 lives (from three to eight years). Costs associated with developing or 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 lives (from five to fifteen years). Computer software development costs recognized as assets are amortized on a straight-line basis over their estimated useful lives, which range between three and five years. Licenses and software rights acquired by the Company have finite useful lives and are amortized on a straight-line basis over the term of the contract and the amortization is recognized in the consolidated statement of profit or loss. |
Taxes | (m) 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 arise 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 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 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 liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. 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. |
Borrowing costs | (n) 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 | (o) 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 certain operating leases, the Company is contractually obliged to return the aircraft in a defined condition. The Company accrues a provision for restitution costs related to aircraft held under operating leases throughout the duration of the lease. Restitution costs 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 adjusted as appropriate. |
Employee benefits | (p) 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 comprise 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 “Salaries and benefits” 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. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Significant Subsidiaries | The following are the significant subsidiaries included in these financial statements: Name Country of Ownership 2017 2016 Copa Airlines Panama 99 % 99 % Copa Colombia Colombia 99 % 99 % Oval British Virgin Islands 100 % 100 % |
Estimated Useful Lives of Assets and Considering Residual Value | Depreciation is recognized in the consolidated statement of profit or loss from the date the property, and equipment is installed and ready for use. Estimate useful Residual Property and equipment life (years) 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 life of the leasehold improvement — |
Correction and changes in dis_2
Correction and changes in disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Correction of Error | The tables below reflects each of the affected financial statement line items for the prior periods, as follows: Impact on the statement of financial position (increase/(decrease)): 2017 2016 ASSETS Non - current assets Property and equipment $ (208,497 ) $ (205,518 ) Deferred tax assets 527 — Total assets $ (207,970 ) $ (205,518 ) LIABILITIES AND EQUITY Current liabilities Taxes and interest payable (11,363 ) — Non-current Other long-term liabilities 7,439 — Deferred tax liabilities 1,837 — Total liabilities (2,087 ) — Equity Retained earnings (205,518 ) (196,902 ) Net income (365 ) (8,616 ) Total equity (205,883 ) (205,518 ) Total liabilities and equity $ (207,970 ) $ (205,518 ) Impact on the statement of profit or loss (increase/(decrease)): 2017 2016 2015 Operating expenses Maintenance, materials and repairs $ 7,439 $ — $ — Depreciation and amortization 2,979 8,616 15,660 10,418 8,616 15,660 Operating profit (10,418 ) (8,616 ) (15,660 ) Non-operating income (expense) Gain (loss) on foreign currency fluctuations 11,363 — — Profit (loss) before taxes 945 (8,616 ) (15,660 ) Income tax expense (1,310 ) — — Net profit (loss) $ (365 ) $ (8,616 ) $ (15,660 ) Earnings (loss) per share Basic and diluted $ (0.01 ) $ (0.21 ) $ (0.36 ) |
Summary of Reconciliation of Changes in Presentation in Prior Years | The following table reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position: As previosly Reclasification 2016 Current liabilities Taxes and interest payable $ 47,389 $ 21,094 $ 68,483 Accrued expenses payable $ 80,116 $ (35,754 ) $ 44,362 Income tax payable $ 22,495 $ (21,094 ) $ 1,401 Non-current Other long-term liabilities $ 72,694 $ 35,754 $ 108,448 Consolidated statement of profit or loss The Company has historically presented its IFRS consolidated statement of profit or loss “by nature and function on a ‘mixed basis” as permitted by IAS 1. During February 2017, the Company introduced a new business, planning and financial consolidation accounting system, with the objective of improving and giving greater uniformity to the structure and presentation of the consolidated financial statements. While the Company continues to present its consolidated income statement “by nature and function on a ‘mixed basis”, a new chart of accounts was implemented resulting in the reclassification of certain lines in the consolidated financial statements, as well as certain new financial statement line items. In the accompanying consolidated statements, prior periods have been retrospectively reclassified giving effect to the new classifications. The Company does not believe these reclassifications significantly affect its previously reported financial statements, nor do they have any significant impact on previously reported Key Performance Indicators (KPIs) or debt covenant compliance. There was also no impact on the Company’s basic or diluted earnings per share and no impact on the total operating, investing or financing cash flows for the years ended December 31, 2016 and 2015. The following tables discloses both previously reported and as adjusted amounts of the consolidated statement of profit or loss: 2016 Adjusted Operating revenue Passenger revenue $ 2,155,167 Cargo and mail revenue 53,989 Other operating revenue 12,696 2,221,852 Operating expenses Fuel 528,996 Wages, salaries, benefits and other employees’ expenses 370,190 Passenger servicing 86,329 Airport facilities and handling charges 159,771 Sales and distribution 193,984 Maintenance, materials and repairs 121,781 Depreciation and amortization 167,894 Flight operations 88,188 Aircraft rentals and other rentals 138,885 Cargo and courier expenses 6,099 Other Operating and administrative expenses 92,215 1,954,332 Operating profit 267,520 Non-operating Finance cost (37,024 ) Finance income 13,000 (Loss) Gain on foreign currency fluctuations 13,043 Net change in fair value of derivatives 111,642 Other non-operating (3,982 ) 96,679 Profit (loss) before taxes 364,199 Income tax expense (38,271 ) Net profit (loss) $ 325,928 2016 Previously Reported Operating revenue Passenger revenue $ 2,133,186 Cargo, mail and other 88,663 2,221,849 Operating expenses Aircraft fuel 527,918 Salaries and benefits 293,044 Passenger servicing 259,524 Commissions 83,981 Reservations and sales 99,918 Maintenance, material and repairs 122,873 Depreciation, amortization and impairment 167,894 Flight operations 127,777 Aircraft rentals 120,841 Landing fees and other rentals 55,498 Other 94,584 1,953,852 Operating profit 267,997 Non-operating Finance cost (37,024 ) Finance income 13,000 Exchange rate difference, net 13,043 Mark to market derivative income (expense) 111,642 Other income 2,888 Other expense (7,347 ) 96,202 Profit (loss) before taxes 364,199 Income tax expense (38,271 ) Net profit (loss) $ 325,928 2015 Adjusted Operating revenue Passenger revenue $ 2,185,465 Cargo and mail revenue 56,738 Other operating revenue 11,507 2,253,710 Operating expenses Fuel 603,760 Wages, salaries, benefits and other employees’ expenses 373,631 Passenger servicing 84,327 Airport facilities and handling charges 148,078 Sales and distribution 188,961 Maintenance, materials and repairs 111,178 Depreciation and amortization 150,548 Flight operations 86,461 Aircraft rentals and other rentals 142,177 Cargo and courier expenses 6,471 Other Operating and administrative expenses 105,484 2,001,076 Operating profit 252,634 Non-operating Finance cost (33,155 ) Finance income 25,947 (Loss) Gain on foreign currency fluctuations (440,097 ) Net change in fair value of derivatives (11,572 ) Other non-operating (1,632 ) (460,509 ) Profit (loss) before taxes (207,875 ) Income tax expense (32,759 ) Net profit (loss) $ (240,634 ) 2015 Previously Operating revenue Passenger revenue $ 2,166,727 Cargo, mail and other 83,335 2,250,062 Operating expenses Aircraft fuel 602,777 Salaries and benefits 289,512 Passenger servicing 258,302 Commissions 88,557 Reservations and sales 88,051 Maintenance, material and repairs 111,181 Depreciation, amortization and impairment 150,548 Flight operations 130,930 Aircraft rentals 122,217 Landing fees and other rentals 56,703 Other 100,856 1,999,634 Operating profit 250,428 Non-operating Finance cost (33,155 ) Finance income 25,947 Exchange rate difference, net (440,097 ) Mark to market derivative income (expense) (11,572 ) Other income 7,025 Other expense (6,451 ) (458,303 ) Profit (loss) before taxes (207,875 ) Income tax expense (32,759 ) Net profit (loss) $ (240,634 ) |
New standards and interpretat_2
New standards and interpretations not yet adopted (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Impacts Due to the Adoption of New Standard | For the period 2017, the Company’s consolidated statement of financial position and the consolidated statement of profit or loss presents the following impacts due to the adoption of the new standard: 2017 Transition impact 2017 ASSETS Current assets $ 1,198,488 $ — $ 1,198,488 Non - current assets 2,846,473 — 2,846,473 Total assets $ 4,044,961 $ — $ 4,044,961 LIABILITIES AND EQUITY Current liabilities Air traffic liability $ 470,693 $ 6,475 $ 477,168 Frequent flyer deferred revenue 13,186 4,011 17,197 Income tax payable 3,700 (820 ) 2,880 Other current liabilities 559,450 — 559,450 1,047,029 9,666 1,056,695 Non - current liabilities Frequent flyer deferred revenue 33,115 — 33,115 Other non - current liabilities 1,059,205 — 1,059,205 1,092,320 — 1,092,320 Total liabilities 2,139,349 9,666 2,149,015 Equity Issued capital 28,504 — 28,504 Additional paid in capital 72,945 — 72,945 Treasury stock (136,388 ) — (136,388 ) Retained earnings 1,574,781 (4,524 ) 1,570,257 Net income 369,658 (5,142 ) 364,516 Accumulated other comprehensive loss (3,888 ) — (3,888 ) Total equity 1,905,612 (9,666 ) 1,895,946 Total liabilities and equity $ 4,044,961 $ — $ 4,044,961 Operating revenue Passenger revenue $ 2,462,419 $ (18,442 ) $ 2,443,977 Cargo and mail revenue 55,290 — 55,290 Other operating revenue 9,847 12,672 22,519 2,527,556 (5,770 ) 2,521,786 Operating expenses Other operating expenses 1,897,500 — 1,897,500 Sales and distribution 200,413 (157 ) 200,256 2,097,913 (157 ) 2,097,756 Operating profit 429,643 (5,613 ) 424,030 Non - operating income (expense) (10,675 ) — (10,675 ) Profit (loss) before taxes 418,968 (5,613 ) 413,355 Income tax expense (49,310 ) 471 (48,839 ) Net profit (loss) $ 369,658 $ (5,142 ) $ 364,516 The main components of the adjustment, for the period, are as follows: • An increase of $6.4 million and $4.0 million in Air traffic liability and Frequent flyer deferred revenue, due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date, and the change in the amount deferred for mileages credits due to sales from co-brand • A decrease of $4.5 million in retained earnings due to the impacts of the 2016 period. • A decrease of $18.4 million in Passenger revenue by: $2.8 million due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date; $15.4 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights; and $0.2 million due the reclassification of denied board compensation from the Sales and distribution operating expenses to Passenger revenue. • An increase of $12.7 million in Other operating revenue by: a decrease of $2.7 million due to the change in the amount deferred for mileages credits due to sales from co-brand • A decrease of $0.4 million in Income tax expense, and Income tax payable as a result of the transitions impacts. For the period 2016, the Company’s consolidated statement of financial position and the consolidated statement of profit or loss presents the following impacts due to the adoption of the new standard: 2016 Transition impact 2016 ASSETS Current assets $ 1,069,391 $ — $ 1,069,391 Non - current assets 2,571,204 — 2,571,204 Total assets $ 3,640,595 $ — $ 3,640,595 LIABILITIES AND EQUITY Current liabilities Air traffic liability $ 396,237 $ 3,559 $ 399,796 Frequent flyer deferred revenue 9,044 1,314 10,358 Income tax payable 1,401 (349 ) 1,052 Other current liabilities 456,000 — 456,000 862,682 4,524 867,206 Non - current liabilities Frequent flyer deferred revenue 26,324 — 26,324 Other non - current liabilities 1,114,836 — 1,114,836 1,141,160 — 1,141,160 Total liabilities 2,003,842 4,524 2,008,366 Equity Issued capital 28,454 — 28,454 Additional paid in capital 64,986 — 64,986 Treasury stock (136,388 ) — (136,388 ) Retained earnings 1,355,645 (2,354 ) 1,353,291 Net income 325,928 (2,170 ) 323,758 Accumulated other comprehensive loss (1,872 ) — (1,872 ) Total equity 1,636,753 (4,524 ) 1,632,229 Total liabilities and equity $ 3,640,595 $ — $ 3,640,595 Operating revenue Passenger revenue $ 2,155,167 $ (6,666 ) $ 2,148,501 Cargo and mail revenue 53,989 — 53,989 Other operating revenue 12,696 4,000 16,696 2,221,852 (2,666 ) 2,219,186 Operating expenses Other operating expenses 1,760,348 — 1,760,348 Sales and distribution 193,984 (147 ) 193,837 1,954,332 (147 ) 1,954,185 Operating profit 267,520 (2,519 ) 265,001 Non - operating income (expense) 96,679 — 96,679 Profit (loss) before taxes 364,199 (2,519 ) 361,680 Income tax expense (38,271 ) 349 (37,922 ) Net profit (loss) $ 325,928 $ (2,170 ) $ 323,758 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Operating Revenue by Principal Geographic Area | resource allocations. Information concerning operating revenue by geographic area for the period ended December 31 is as follows (in millions): 2017 2016 2015 North America $ 610.0 $ 638.9 $ 559.6 Panama 413.5 371.6 374.2 Central America and the Caribbean 275.3 273.6 289.0 Brazil 363.7 245.4 290.6 Colombia 197.9 146.1 174.2 Others South America 667.2 546.2 566.1 $ 2,527.6 $ 2,221.8 $ 2,253.7 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Cash and Cash Equivalents | 2017 2016 Checking and saving accounts $ 145,283 $ 173,943 Time deposits of no more than ninety days 30,000 57,500 Overnight deposits 63,157 99,933 Cash on hand 352 311 $ 238,792 $ 331,687 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Information About Investments | 2017 2016 Short-term Time deposits between 90 and 365 days $ 705,108 $ 483,002 $ 705,108 $ 483,002 Long-term Time deposits of more than 365 days $ 65,953 $ 953 $ 65,953 $ 953 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Disclosure of Accounts Receivable | 2017 2016 Credit cards $ 64,420 $ 65,052 Travel agencies and airlines clearing house 36,640 36,318 Cargo, mail and other travel agencies 6,798 9,278 Trade receivables due from related parties 318 499 Government 6,216 1,957 Other 7,366 6,735 121,758 119,839 Provision for impairment (3,673 ) (3,739 ) $ 118,085 $ 116,100 Current 115,641 114,143 Non-current 2,444 1,957 $ 118,085 $ 116,100 |
Maturity of Portfolio of Accounts Receivable | The maturity of the portfolio at each year-end 2017 2016 Neither past due nor impaired $ 115,685 $ 110,524 Past due 1 to 30 days 1,286 711 Past due 31 to 60 days 617 914 More than 60 days 497 3,951 118,085 116,100 Impaired 3,673 3,739 Total accounts receivable $ 121,758 $ 119,839 |
Provision for Impairment of Receivables | Movements in the provision for impairment of receivables are as follows: 2017 2016 2015 Balance at beginning of year $ (3,739 ) $ (2,997 ) $ (3,691 ) (Additions) reversals (879 ) (1,511 ) 71 Write-offs 945 769 623 Balance at end of year $ (3,673 ) $ (3,739 ) $ (2,997 ) |
Expendable parts and supplies (
Expendable parts and supplies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Disclosure of Expendable Parts and Supplies | 2017 2016 Material for repair and maintenance $ 79,424 $ 71,876 Other inventories 3,058 3,101 82,482 74,977 Allowance for obsolescence (657 ) (475 ) $ 81,825 $ 74,502 |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Detailed Information about Prepaid Expenses | 2017 2016 Prepaid taxes $ 38,672 $ 39,153 Prepaid commissions 5,297 4,649 Prepaid rent 7,479 6,707 Prepaid insurance 207 772 Prepaid other 19,896 33,524 $ 71,551 $ 84,805 Current 45,421 58,407 Non-current 26,130 26,398 $ 71,551 $ 84,805 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Property and Equipment | Land Flight Purchase Ramp and Furniture, Leasehold Construction Total Cost - Balance at January 1, 2015 $ 6,301 $ 2,707,019 $ 321,175 $ 39,740 $ 25,308 $ 28,580 $ 7,716 $ 3,135,839 Transfer of pre-delivery — 161,169 (161,169 ) — — — — — Additions — 178,582 83,064 2,827 2,269 3,190 9,751 279,683 Disposals — (16,773 ) — (25 ) (864 ) (881 ) (2,343 ) (20,886 ) Reclassifications — 364 — 495 (766 ) 4,977 (5,070 ) — Balance at December 31, 2015 $ 6,301 $ 3,030,361 $ 243,070 $ 43,037 $ 25,947 $ 35,866 $ 10,054 $ 3,394,636 Transfer of pre-delivery — 27,585 (27,585 ) — — — — — Additions — 94,348 34,680 3,026 1,878 73 7,435 141,440 Disposals — (36,812 ) — (604 ) (1,226 ) (98 ) — (38,740 ) Adjustments — 100 — — 2,363 — — 2,463 Reclassifications — (340 ) — (289 ) 645 9,140 (10,896 ) (1,740 ) Balance at December 31, 2016 $ 6,301 $ 3,115,242 $ 250,165 $ 45,170 $ 29,607 $ 44,981 $ 6,593 $ 3,498,059 Transfer of pre-delivery — 28,674 (28,674 ) — — — — — Additions — 158,557 192,196 1,461 3,392 1,614 5,246 362,466 Disposals — (54,114 ) (54 ) (228 ) (711 ) — — (55,107 ) Reclassifications — 3,870 — 1,950 (4,764 ) 3448 (6,061 ) (1,557 ) Balance at December 31, 2017 $ 6,301 $ 3,252,229 $ 413,633 $ 48,353 $ 27,524 $ 50,043 $ 5,778 $ 3,803,861 Accumulated depreciation - Balance at January 1, 2015 (reported) $ — $ (567,341 ) $ — $ (26,560 ) $ (18,197 ) $ (18,405 ) $ — $ (630,503 ) Adjustment on correction of error — (181,242 ) — — — — — (181,242 ) Balance at January 1, 2015 (restated) $ — $ (748,583 ) $ — $ (26,560 ) $ (18,197 ) $ (18,405 ) $ — $ (811,745 ) Depreciation for the year — (133,045 ) — (3,214 ) (2,774 ) (4,229 ) — (143,262 ) Disposals — 13,341 — 23 581 177 — 14,122 Reclassifications — (39 ) — 1,202 (1,501 ) 338 — — Balance at December 31, 2015 (restated) $ — $ (868,326 ) $ — $ (28,549 ) $ (21,891 ) $ (22,119 ) $ — $ (940,885 ) Depreciation for the year — (141,418 ) — (3,724 ) (2,284 ) (4,246 ) — (151,672 ) Disposals — 13,587 — 524 1,220 12 — 15,343 Adjustments — (14 ) — — (2,667 ) — — (2,681 ) Reclassifications — (99 ) — (116 ) 41 174 — — Balance at December 31, 2016 (restated) $ — $ (996,270 ) $ — $ (31,865 ) $ (25,581 ) $ (26,179 ) $ — $ (1,079,895 ) Depreciation for the year — (148,188 ) — (3,811 ) (2,192 ) (4,505 ) — (158,696 ) Disposals — 51,233 — 200 704 — — 52,137 Reclassifications — (1,335 ) — (1,540 ) 4,110 (1,235 ) — — Balance at December 31, 2017 (restated) $ — $ (1,094,560 ) $ — $ (37,016 ) $ (22,959 ) $ (31,919 ) $ — $ (1,186,454 ) Carrying amounts - At December 31, 2015 (restated) $ 6,301 $ 2,162,035 $ 243,070 $ 14,488 $ 4,056 $ 13,747 $ 10,054 $ 2,453,751 At December 31, 2016 (restated) $ 6,301 $ 2,118,972 $ 250,165 $ 13,305 $ 4,026 $ 18,802 $ 6,593 $ 2,418,164 At December 31, 2017 (restated) $ 6,301 $ 2,157,669 $ 413,633 $ 11,337 $ 4,565 $ 18,124 $ 5,778 $ 2,617,407 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Future Minimum Lease Payments Required under Finance Leases | As of December 31, 2017, the scheduled future minimum lease payments required under finance leases are as follows: Future minimum Interest Present value Up to one year $ 46,274 $ 16,180 $ 45,416 One to five years 186,344 54,830 169,383 Over five years 388,005 26,924 310,388 Total minimum lease payments $ 620,623 $ 97,934 $ 525,187 As of December 31, 2016, the scheduled future minimum lease payments required under finance leases are as follows: Future minimum Interest Present value Up to one year $ 39,016 $ 14,524 $ 38,407 One to five years 152,880 48,979 139,322 Over five years 366,131 32,727 288,638 Total minimum lease payments $ 558,027 $ 96,230 $ 466,367 |
Schedule of Future Minimum Lease Payments Required under Aircraft and Non-aircraft Operating Leases | As of December 31, 2017, the scheduled future minimum lease payments required under aircraft and non-aircraft non-cancellable Aircraft Others Up to one year $ 111,568 $ 14,988 One to five years 270,310 74,943 More than five years 18,957 17,509 Total minimum lease payments $ 400,835 $ 107,440 |
Schedule of Future Minimum Lease Receivables under Non-cancellable Leases | As of December 31, 2017, future minimum lease receivables under non-cancellable 2017 2016 Up to one year $ 3,480 $ 3,480 One to five years 5,075 8,555 Total minimum lease rental payments $ 8,555 $ 12,035 |
Net pension assets (Tables)
Net pension assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Net Pension Asset | 2017 2016 Pension assets $ 23,794 $ 25,946 Post-employment benefits (19,997 ) (16,498 ) Other employee benefits (612 ) (622 ) Total employee benefits liability $ (20,609 ) $ (17,120 ) Net pension asset $ 3,185 $ 8,826 |
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: Defined benefit Fair value of Defined benefit Year ended December 31, 2017 Current service cost (1,767 ) — (1,767 ) Interest cost on net benefit obligation (568 ) 778 210 Net benefit expense $ (2,335 ) $ 778 $ (1,557 ) Defined benefit Fair value of Defined benefit Year ended December 31, 2016 Current service cost (1,724 ) — (1,724 ) Interest cost on net benefit obligation (516 ) 689 173 Net benefit expense $ (2,240 ) $ 689 $ (1,551 ) Defined benefit Fair value of Defined benefit Year ended December 31, 2015 Current service cost (1,638 ) — (1,638 ) Interest cost on net benefit obligation (422 ) 532 110 Net benefit expense $ (2,060 ) $ 532 $ (1,528 ) |
Summary of Reconciliation of Net Pension Asset | The following table shows reconciliation from the opening balance to the closing balances for net pension asset and its components: Defined benefit Fair value of Other employee Defined benefit At January 1, 2015 $ (12,778 ) $ 18,559 $ (3,259 ) $ 2,522 Current service cost (1,638 ) — — (1,638 ) Interest cost (422 ) 532 — 110 Return on plan assets greater (less) than discount rate — 701 701 Experience (gain) loss (809 ) — — (809 ) Investment return — 105 — 105 Gross benefits paid — (599 ) — (599 ) Assumption changes 222 — — 222 Employer contributions — 3,749 — 3,749 Benefits paid 957 (774 ) — 183 Adjustments — — 1,504 1,504 At December 31, 2015 $ (14,468 ) $ 22,273 $ (1,755 ) $ 6,050 Current service cost (1,724 ) — — (1,724 ) Interest (cost) income (516 ) 689 — 173 Return on plan assets greater (less) than discount rate — 518 518 Experience gain (loss) (1,052 ) — — (1,052 ) Investment return — 27 — 27 Gross benefits paid — (513 ) — (513 ) Assumption changes (67 ) — — (67 ) Employer contributions — 3,970 — 3,970 Benefits paid 1,329 (1,018 ) (75 ) 236 Adjustments — — 1,208 1,208 As of December 31, 2016 $ (16,498 ) $ 25,946 $ (622 ) $ 8,826 Current service cost (1,767 ) — — (1,767 ) Interest (cost) income (568 ) 778 — 210 Return on plan assets greater (less) than discount rate — (21 ) — (21 ) Experience gain (loss) (2,033 ) — — (2,033 ) Investment return — 88 — 88 Gross benefits paid — (440 ) — (440 ) Assumption changes (226 ) — — (226 ) Employer contributions — (1,677 ) — (1,677 ) Benefits paid 1,095 (880 ) — 215 Adjustments — — 10 10 As of December 31, 2017 $ (19,997 ) $ 23,794 $ (612 ) $ 3,185 |
Summary of Sensitivity Analysis for Actuarial Assumptions | The following were the principal actuarial assumptions at the reporting date: 2017 2016 2015 Economic assumptions - Discount rate 3.15 % 3.37 % 3.45 % Compensation - salary increase 4 % 4 % 4 % Demographic assumptions - Mortality RP - 2000 no collar Termination 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 2017 December, 31 2016 December, 31 2015 Increase Decrease Increase Decrease Increase Decrease Discount rate (0.5% movement) $ (506 ) $ 537 $ (410 ) $ 434 $ (366 ) $ 388 Salary rate (0.5% movement) 99 (89 ) 122 (117 ) 114 (109 ) |
Summary of Expected Contribution Payments to Defined Benefit Plan | The following payments are expected contributions to the defined benefit plan in future years: 2017 2016 Up to one year $ 3,424 $ 2,823 One to five years 10,794 9,195 Over five years 11,401 9,453 Total expected payments $ 25,619 $ 21,471 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Reconciliation of Changes in Intangible Assets and Goodwill | Other intangibles assets Goodwill License and Intangible Total Cost - Balance at January 1, 2015 $ 20,380 $ 37,663 $ 24,474 $ 82,517 Additions — 121 19,297 19,418 Disposals — (65 ) — (65 ) Reclassifications — 26,090 (26,090 ) — Balance at December 31, 2015 20,380 63,809 17,681 101,870 Additions — 73 14,401 14,474 Disposals — (1,546 ) — (1,546 ) Impairment loss — — (5,931 ) (5,931 ) Reclassifications — 11,813 (10,073 ) 1,740 Balance at December 31, 2016 20,380 74,149 16,078 110,607 Additions — 1,783 16,898 18,681 Disposals — (4,891 ) — (4,891 ) Reclassifications — 3,642 (2,085 ) 1,557 Balance at December 31, 2017 20,380 74,683 30,891 125,954 Amortization - Balance at January 1, 2015 $ — $ (25,222 ) $ — $ (25,222 ) Amortization for the year — (7,287 ) — (7,287 ) Disposals — 65 — 65 Balance at December 31, 2015 — (32,444 ) — (32,444 ) Amortization for the year — (10,207 ) — (10,207 ) Disposals — 1,546 — 1,546 Balance at December 31, 2016 — (41,105 ) — (41,105 ) Amortization for the year — (8,628 ) — (8,628 ) Disposals — 4,894 — 4,894 Balance at December 31, 2017 — (44,839 ) — (44,839 ) Carrying amounts - At December 31, 2015 $ 20,380 $ 31,365 $ 17,681 $ 69,426 At December 31, 2016 $ 20,380 $ 33,044 $ 16,078 $ 69,502 At December 31, 2017 $ 20,380 $ 29,844 $ 30,891 $ 81,115 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Assets | 2017 2016 Current - Interest receivable $ 10,443 $ 6,741 Other 1,258 909 11,701 7,650 Non-current Guarantee deposits 14,568 10,401 Deposits for litigation 12,390 12,482 Other 4,182 4,182 31,140 27,065 $ 42,841 $ 34,715 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Debt | 2017 Due Effective rates Carrying Long-term fixed rate debt 2025 1.81% to 5.58% $ 626,150 Long-term variable rate debt 2027 1.54% to 3.04% 420,634 Loans payables 2018 2.33% to 2.58% 127,797 1,174,581 Current maturities (298,462 ) Long-term debt $ 876,119 2016 Due Effective rates Carrying Long-term fixed rate debt 2025 1.81% to 5.58% $ 702,454 Long-term variable rate debt 2026 0.90% to 2.23% 398,178 Loans payables 2017 1.88% to 1.98% 83,500 1,184,132 Current maturities (222,718 ) Long-term debt $ 961,414 |
Summary of Maturities of Long-term Debt | Maturities of long-term debt for the next five years are as follows: Year ending December 31, 2018 298,462 2019 167,191 2020 118,376 2021 96,070 2022 89,144 Thereafter 405,338 $ 1,174,581 |
Summary of Finance Cost and Income | The detail of finance cost and income is as follows: 2017 2016 2015 Finance income - Interest income on short-term bank deposits $ 1,499 $ 675 $ 3,662 Interest income on investment 16,440 12,325 22,285 $ 17,939 $ 13,000 $ 25,947 Finance cost - Interests expense on bank loans $ (32,599 ) $ (32,647 ) $ (30,866 ) Interest on factoring (2,624 ) (4,377 ) (2,289 ) $ (35,223 ) $ (37,024 ) $ (33,155 ) |
Changes in Liabilities Arising from Financing Activities | Changes in liabilities arising from financing activities: Non-cash 2016 Cash flows New debt transactions 2017 Debt Obligations under finance leases $ 461,797 $ (28,107 ) $ — $ 89,000 $ 522,690 Debt 722,335 (218,242 ) 147,798 — 651,891 Total liabilities from financing activities $ 1,184,132 $ (246,349 ) $ 147,798 $ 89,000 $ 1,174,581 |
Trade, other payables and fin_2
Trade, other payables and financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade, Other Payables and Financial Liabilities | 2017 2016 Account payables $ 116,554 $ 104,176 Account payables to related parties 12,880 8,681 129,434 112,857 Other payables and financial liabilities - Fuel derivative instruments — 2,801 Others 1,156 4,779 1,156 7,580 $ 130,590 $ 120,437 |
Accrued expenses payable (Table
Accrued expenses payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Accrued Expenses Payable | 2017 2016 Accruals and estimations $ 9,059 $ 5,849 Labor related provisions 44,188 31,785 Liability for social security contributions 6,432 5,700 Other 642 1,028 $ 60,321 $ 44,362 |
Other long-term liabilities (Ta
Other long-term liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Long-term Liabilities | Provision Provision for Other long- Total Balance at January 1, 2017 $ 14,318 $ 58,299 $ 41,651 $ 114,268 Increases 1,021 40,499 463 41,983 Used — (5,824 ) (3,325 ) (9,149 ) Reclassification — — (7,235 ) (7,235 ) Effect of movements in exchange rates (187 ) — — (187 ) Balance at December 31, 2017 $ 15,152 $ 92,974 $ 31,554 $ 139,680 Current — 4,897 4,162 9,059 Non-current 15,152 88,077 27,392 130,621 $ 15,152 $ 92,974 $ 31,554 $ 139,680 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Income Tax Expense | 2017 2016 2015 Current taxes expense - Current period $ (43,034 ) $ (31,666 ) $ (30,435 ) Adjustment for prior period 455 (127 ) (1,228 ) $ (42,579 ) $ (31,793 ) $ (31,663 ) Deferred taxes expenses - Origination and reversal of temporary differences (6,731 ) (6,478 ) (1,096 ) Total income tax expense $ (49,310 ) $ (38,271 ) $ (32,759 ) |
Summary of Balances of Deferred Taxes | The balances of deferred taxes are as follows: Statement Statement of of financial position profit or loss 2017 2016 2017 2016 2015 Deferred tax liabilities Maintenance deposits $ (26,586 ) $ (23,790 ) $ 2,796 $ 2,286 $ 5,866 Prepaid dividend tax (14,103 ) (12,432 ) 1,671 5,300 — Property and equipment (9,975 ) (7,867 ) 2,108 (1,599 ) 3,579 Other (4,050 ) (6,013 ) (1,963 ) (10,147 ) 11,692 Set off tax 2,249 5,128 2,879 16,269 (24,568 ) $ (52,465 ) $ (44,974 ) $ 7,491 $ 12,109 $ (3,431 ) Deferred tax assets Provision for return conditions $ 7,859 $ 7,606 $ (253 ) $ 4,417 $ (11,203 ) Air traffic liability 1,281 1,015 (266 ) 305 1,076 Fuel derivative — 107 107 4,403 94 Other provisions 4,859 4,587 (272 ) (3,059 ) 4,716 Tax loss 7,349 10,152 2,803 4,572 (14,724 ) Set off tax (2,249 ) (5,128 ) (2,879 ) (16,269 ) 24,568 $ 19,099 $ 18,339 $ (760 ) $ (5,631 ) $ 4,527 $ (33,366 ) $ (26,635 ) $ 6,731 $ 6,478 $ 1,096 |
Summary of Reconciliation of Effective Tax Rate | Reconciliation of the effective tax rate is as follows: Tax rate 2017 Tax rate 2016 Tax rate 2015 Net income (loss) $ 369,658 $ 325,928 $ (240,634 ) Total income tax expense 49,310 38,271 32,759 Profit (loss) excluding income tax 418,968 364,199 (207,875 ) Income taxes at Panamanian statutory rates 25.0 % 104,742 25.0 % 91,050 25.0 % (51,969 ) Panamanian gross tax election Effect of tax rates in non-panamanian 0.1 % 590 (2.5 %) (9,260 ) (11.0 %) 22,936 Exemption in non - taxable countries (13.3 %) (55,567 ) (12.0 %) (43,646 ) (29.1 %) 60,564 Adjustment for prior period (0.1 %) (455 ) 0.03 % 127 (0.6 %) 1,228 Provision for income taxes 11.7 % $ 49,310 10.5 % $ 38,271 (15.7 %) $ 32,759 |
Accounts and transactions wit_2
Accounts and transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Accounts and Transactions with Related Parties | 2017 2016 Account receivable - Panama Air Cargo Terminal $ 254 $ — Editora del Caribe, S.A. 32 15 Petroleos Delta, S.A. 19 5 Banco General, S.A. 12 — Assa Compañía de Seguros, S.A. 1 479 $ 318 $ 499 Account payable - Petróleos Delta, S.A. $ 10,371 $ 7,504 Assa Compañía de Seguros, S.A. 1,431 687 Desarrollos Inmobiliarios del Este, S.A. 650 421 Motta International, S.A. 81 25 Panama Air Cargo Terminal 200 — Cable Onda, S.A. 112 21 Galindo, Arias & López 31 16 Global Brands, S.A. 4 7 $ 12,880 $ 8,681 |
Summary of Related Party Transactions | Transactions with related parties for the year ended December 31 are as follows: Related party Transaction Amount of Amount of Amount of Petróleos Delta, S.A. Purchase of jet fuel 290,172 229,899 248,944 ASSA Compañía de Seguros, S.A. Insurance 8,527 7,128 9,170 Desarrollo Inmobiliario del Este, S.A. Property leasing 3,625 3,795 2,982 Profuturo Administradora de Fondos de Pensión y Cesantía Payments 2,386 3,238 — Motta International Purchase 1,632 1,646 1,290 Cable Onda, S.A. Communications 1,448 1,625 — GBM International, Inc. Technological support 273 272 533 Galindo, Arias & López Legal services 373 341 271 Global Brands, S.A. Purchase 79 67 47 Panama Air Cargo Terminal Handling 4,869 — — Lubricantes Delta, S.A. Fuel accesories — 63 — Editora del Caribe, S.A. Advertising 4 (162 ) 22 Banco General, S.A. Interest income $ (2,986 ) $ (1,284 ) $ (1,301 ) |
Summary of Key Management Personnel Compensation | Key management personnel compensation is as follows: 2017 2016 2015 Short-term employee benefits $ 5,133 $ 3,763 $ 3,570 Post-employment pension 99 72 68 Share-based payments 5,524 5,799 3,023 $ 10,756 $ 9,634 $ 6,661 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [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 life February, 2013 19,786 15% first three anniversaries 5 years 25% fourth and 30% fifth anniversary February, 2015 13,709 One-third 3 years April, 2015 4,915 15% first three anniversaries 5 years 25% fourth anniversary June, 2015 10,920 One-third 3 years June, 2015 4,912 Third anniversary 3 years June, 2015 6,750 15% first three anniversaries 5 years 25% fourth anniversary December, 2015 429 Third anniversary 3 years February, 2016 19,012 One-third 3 years February, 2016 147,000 15% first three anniversaries 5 years 25% fourth anniversary February, 2016 63,000 Fifth anniversary 5 years May, 2016 7,899 15% first three anniversaries 5 years 25% fourth anniversary May, 2016 4,739 One-third 3 years June, 2016 25,280 One-third 3 years June, 2016 7,925 Third anniversary 3 years September, 2016 6,668 Third anniversary 3 years September, 2016 5,005 One-third 3 years February, 2017 22,012 One-third 3 years June, 2017 11,980 One-third 3 years June, 2017 2,237 Third anniversary 3 years |
Summary of Non-vested Stock Award Activity | A summary of the non-vested 2017 2016 2015 Non-vested 333,183 139,962 199,786 Granted 36,229 291,872 36,291 Vested (62,224 ) (94,208 ) (94,704 ) Forfeited (3,035 ) (4,443 ) (1,411 ) Non-vested 304,153 333,183 139,962 |
Summary of Options Award Activity | A summary of the options award activity under the plan as of December 31, 2017 and 2016 and changes during the year is as follows (in number of shares): 2017 2016 2015 Outstanding as of January 1 19,894 20,940 20,940 Exercised (11,061 ) (1,046 ) — Forfeited (8,833 ) — — Outstanding as of December 31 — 19,894 20,940 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Computation of the Income (Loss) and Share Data Used in the Basic and Diluted Earnings Per Share | The computation of the income (loss) and share data used in the basic and diluted earnings per share is as follows: 2017 2016 2015 Basic earnings (loss) per share - Net income (loss) $ 369,658 $ 325,928 $ (240,634 ) Weighted-average shares outstanding 42,111 42,036 43,716 Non-vested 308 322 145 42,419 42,358 43,861 8.71 7.69 (5.49 ) 2017 2016 2015 Diluted earnings (loss) per share - Net income (loss) $ 369,658 $ 325,928 $ (240,634 ) Weighted-average shares outstanding used for basic earnings per share 42,419 42,358 43,861 Share options on issue — 5 8 42,419 42,363 43,869 8.71 7.69 (5.49 ) |
Financial instruments - Risk _2
Financial instruments - Risk management and fair value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [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: 2017 2016 Assets Cash and cash equivalents $ 25,189 $ 51,718 Investments 277 276 Accounts receivable, net 75,769 69,460 Prepaid expenses 32,045 34,635 Other assets 29,459 35,343 Total assets $ 162,739 $ 191,432 Liabilities Accounts payable 37,186 32,098 Taxes payable 39,559 55,060 Other liabilities 25,471 40,342 Total liabilities $ 102,216 $ 127,500 Net position $ 60,523 $ 63,932 |
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, 2017 Note Carrying Contractual Less than Between 1 More than Non-derivative Debt 18 $ 1,174,581 $ 1,313,191 $ 329,284 $ 549,726 $ 434,181 Account payable 19 116,554 116,554 116,554 — — Account payable to related parties 19 12,880 12,880 12,880 — — $ 1,304,015 $ 1,442,625 $ 458,718 $ 549,726 $ 434,181 December 31, 2016 Note Carrying Contractual Less than Between 1 More than Non-derivative Debt 18 $ 1,184,132 $ 1,334,816 $ 252,680 $ 616,031 $ 466,105 Account payable 19 104,174 104,174 104,174 — — Account payable to related parties 19 8,681 8,681 8,681 — — 1,296,987 1,447,671 365,535 616,031 466,105 Derivative financial liabilities Fuel derivative instrument 19 2,801 2,801 2,801 — — $ 2,801 $ 2,801 $ 2,801 $ — $ — |
Summary of Gearing Ratio | The Company’s gearing ratio (unaudited) is a follows: 2017 2016 Total debt (note 18) $ 1,174,581 $ 1,184,132 Less: non-restricted (943,900 ) (814,689 ) Net debt 230,681 369,443 Total equity 1,905,612 1,636,753 Total capitalization 2,136,293 2,006,196 Gearing ratio 10.8 % 18.4 % |
Summary of Carrying Amount and Fair Values of Financial Assets and Financial Liabilities | The following table shows the carrying amount and fair values of financial assets and financial liabilities as of December 31: Carrying amount Fair Value Note 2017 2016 2017 2016 Financial assets Cash and cash equivalents 8 $ 238,792 $ 331,687 $ 238,792 $ 331,687 Short-term investments 9 705,108 483,002 705,108 483,002 Account receivable 10 118,085 116,100 118,085 116,100 Long-term investments 9 65,953 953 65,953 953 Financial liabilities Debt 18 1,174,581 1,184,132 1,053,070 1,062,952 Account payable 19 129,434 112,857 129,434 112,857 Fuel derivative instruments 19 — 2,801 — 2,801 |
Summary of Financial Instruments Measured at Fair Value | 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 2016 Level 1 Level 2 Level 3 Liabilities Fuel derivatives 2,801 — 2,801 — Total liabilities $ 2,801 $ — $ 2,801 $ — |
Corporate Information - Additio
Corporate Information - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |
May 31, 2016 | Dec. 31, 2017DestinationsCountryAircraftCountyFlights | Jul. 01, 2015DestinationsCountryAirlines | |
Parent company information [line items] | |||
Commercial alliance with United Airlines - Renewal extension period | 5 years | ||
Number of aircraft | Aircraft | 100 | ||
Aircraft average useful life | 8 years | ||
Wingo (the new low-cost business model of Copa Colombia) [member] | |||
Parent company information [line items] | |||
Number of destinations | 14 | ||
Wingo (the new low-cost business model of Copa Colombia) [member] | Domestic [member] | |||
Parent company information [line items] | |||
Number of countries | County | 6 | ||
Wingo (the new low-cost business model of Copa Colombia) [member] | International [member] | |||
Parent company information [line items] | |||
Number of countries | County | 8 | ||
Wingo (the new low-cost business model of Copa Colombia) [member] | South, Central America and Caribbean [member] | |||
Parent company information [line items] | |||
Number of countries | County | 8 | ||
Compania Panamena de Aviacion, S. A. - Copa Airlines [member] | |||
Parent company information [line items] | |||
Number of countries | Country | 31 | ||
Number of daily scheduled flights | Flights | 347 | ||
Compania Panamena de Aviacion, S. A. - Copa Airlines [member] | International [member] | Codeshare agreements [member] | |||
Parent company information [line items] | |||
Number of destinations | 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 | 75 | ||
ConnectMiles [member] | Star Alliance Airlines [member] | |||
Parent company information [line items] | |||
Number of destinations | 1,300 | ||
Number of countries | Country | 190 | ||
ConnectMiles [member] | Star Alliance Airlines [member] | Bottom of range [member] | |||
Parent company information [line items] | |||
Number of airlines | Airlines | 28 |
Significant Accounting Polici_4
Significant Accounting Policies - Schedule of Significant Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Panama [member] | Copa Airlines [member] | ||
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Ownership interest | 99.00% | 99.00% |
Colombia [member] | Copa Colombia [member] | ||
Disclosure of information about unconsolidated subsidiaries [line items] | ||
Ownership interest | 99.00% | 99.00% |
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) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of summary of significant accounting policies [line items] | |||
Impairment loss | $ 0 | $ 0 | $ 0 |
Useful lives of property and equipment | The Company concluded that airframe and engines are now expected to remain in operation for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years. | ||
Applicable tax rate | 25.00% | 25.00% | 25.00% |
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 | ||
Bottom of range [member] | Software development [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 5 years | ||
Bottom of range [member] | Computer software development [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 3 years | ||
Top of range [member] | Computer software licenses [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 8 years | ||
Top of range [member] | Software development [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 15 years | ||
Top of range [member] | Computer software development [member] | |||
Disclosure of summary of significant accounting policies [line items] | |||
Estimated useful lives | 5 years |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Assets and Considering Residual Value (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
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) | Dec. 31, 2017 |
Disclosure of voluntary change in accounting policy [abstract] | |
Salvage value assets rate | 15.00% |
Correction and Changes in Dis_3
Correction and Changes in Disclosures - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure of correction of errors [abstract] | |
Foreign currency gain on translation | $ 11 |
Correction and Changes in Dis_4
Correction and Changes in Disclosures - Schedule of Correction of Error (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Non - current assets | ||||
Property and equipment | $ 2,617,407 | $ 2,418,164 | $ 2,453,751 | |
Deferred tax assets | 19,099 | 18,339 | 12,708 | |
Total assets | 4,044,961 | 3,640,595 | 3,518,574 | |
Current liabilities | ||||
Taxes and interest payable | 70,077 | 68,483 | 43,176 | |
Non-currentliabilities | ||||
Other long-term liabilities | 130,621 | 108,448 | 54,339 | |
Deferred tax liabilities | 52,465 | 44,974 | 32,865 | |
Total liabilities | 2,139,349 | 2,003,842 | 2,128,054 | |
Equity | ||||
Retained earnings | 1,944,439 | 1,681,573 | 1,441,831 | |
Net income | (3,888) | (1,872) | (768) | |
Total equity | 1,905,612 | 1,636,753 | 1,390,520 | $ 1,893,866 |
Total liabilities and equity | 4,044,961 | 3,640,595 | 3,518,574 | |
Operating expenses | ||||
Maintenance, materials and repairs | 132,148 | 121,781 | 111,178 | |
Depreciation and amortization | 167,324 | 167,894 | 150,548 | |
Total operating expenses | 2,097,913 | 1,954,332 | 2,001,076 | |
Operating profit | 429,643 | 267,520 | 252,634 | |
Non-operating income (expense) | ||||
Gain (loss) on foreign currency fluctuations | 6,145 | 13,043 | (440,097) | |
Profit (loss) before taxes | 418,968 | 364,199 | (207,875) | |
Income tax expense | (49,310) | (38,271) | (32,759) | |
Net profit (loss) | $ 369,658 | $ 325,928 | $ (240,634) | |
Earnings (loss) per share | ||||
Basic and diluted | $ 8.71 | $ 7.69 | $ (5.49) | |
Increase (decrease) due to corrections of prior period errors [member] | ||||
Non - current assets | ||||
Property and equipment | $ (208,497) | $ (205,518) | ||
Deferred tax assets | 527 | |||
Total assets | (207,970) | (205,518) | ||
Current liabilities | ||||
Taxes and interest payable | (11,363) | |||
Non-currentliabilities | ||||
Other long-term liabilities | 7,439 | |||
Deferred tax liabilities | 1,837 | |||
Total liabilities | (2,087) | |||
Equity | ||||
Retained earnings | (205,518) | (196,902) | ||
Net income | (365) | (8,616) | ||
Total equity | (205,883) | (205,518) | $ (181,242) | |
Total liabilities and equity | (207,970) | (205,518) | ||
Operating expenses | ||||
Maintenance, materials and repairs | 7,439 | |||
Depreciation and amortization | 2,979 | 8,616 | $ 15,660 | |
Total operating expenses | 10,418 | 8,616 | 15,660 | |
Operating profit | (10,418) | (8,616) | (15,660) | |
Non-operating income (expense) | ||||
Gain (loss) on foreign currency fluctuations | 11,363 | |||
Profit (loss) before taxes | 945 | (8,616) | (15,660) | |
Income tax expense | (1,310) | |||
Net profit (loss) | $ (365) | $ (8,616) | $ (15,660) | |
Earnings (loss) per share | ||||
Basic and diluted | $ (0.01) | $ (0.21) | $ (0.36) |
Correction and Changes in Dis_5
Correction and Changes in Disclosures - Summary of Reconciliation of Changes in Presentation in Prior Years (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current liabilities | |||
Taxes and interest payable | $ 70,077 | $ 68,483 | $ 43,176 |
Accrued expenses payable | 60,321 | 44,362 | 82,948 |
Income tax payable | 3,700 | 1,401 | 24,066 |
Non-current liabilities | |||
Other long-term liabilities | 130,621 | 108,448 | 54,339 |
Operating revenue | |||
Passenger revenue | 2,462,419 | 2,155,167 | 2,185,465 |
Cargo and mail revenue | 55,290 | 53,989 | 56,738 |
Other operating revenue | 9,847 | 12,696 | 11,507 |
Total operating revenue | 2,527,556 | 2,221,852 | 2,253,710 |
Operating expenses | |||
Fuel | 572,746 | 528,996 | 603,760 |
Wages, salaries, benefits and other employees' expenses | 415,147 | 370,190 | 373,631 |
Passenger servicing | 99,447 | 86,329 | 84,327 |
Airport facilities and handling charges | 171,040 | 159,771 | 148,078 |
Sales and distribution | 200,413 | 193,984 | 188,961 |
Maintenance, material and repairs | 132,148 | 121,781 | 111,178 |
Depreciation and amortization | 167,324 | 167,894 | 150,548 |
Flight operations | 101,647 | 88,188 | 86,461 |
Aircraft rentals | 134,539 | 138,885 | 142,177 |
Cargo and courier expenses | 7,375 | 6,099 | 6,471 |
Other Operating and administrative expenses | 96,087 | 92,215 | 105,484 |
Total operating expenses | 2,097,913 | 1,954,332 | 2,001,076 |
Operating profit | 429,643 | 267,520 | 252,634 |
Non-operating income (expense) | |||
Finance cost | (35,223) | (37,024) | (33,155) |
Finance income | 17,939 | 13,000 | 25,947 |
(Loss) Gain on foreign currency fluctuations | 6,145 | 13,043 | (440,097) |
Net change in fair value of derivatives | 2,801 | 111,642 | (11,572) |
Other non-operatingexpense | (2,337) | (3,982) | (1,632) |
Total non - operating income (expense) | (10,675) | 96,679 | (460,509) |
Profit (loss) before taxes | 418,968 | 364,199 | (207,875) |
Income tax expense | (49,310) | (38,271) | (32,759) |
Net profit (loss) | $ 369,658 | 325,928 | (240,634) |
As previously reported [member] | |||
Current liabilities | |||
Taxes and interest payable | 47,389 | ||
Accrued expenses payable | 80,116 | ||
Income tax payable | 22,495 | ||
Non-current liabilities | |||
Other long-term liabilities | 72,694 | ||
Operating revenue | |||
Passenger revenue | 2,133,186 | 2,166,727 | |
Cargo and mail revenue | 88,663 | 83,335 | |
Total operating revenue | 2,221,849 | 2,250,062 | |
Operating expenses | |||
Aircraft fuel | 527,918 | 602,777 | |
Salaries and benefits | 293,044 | 289,512 | |
Passenger servicing | 259,524 | 258,302 | |
Commissions | 83,981 | 88,557 | |
Reservations and sales | 99,918 | 88,051 | |
Maintenance, material and repairs | 122,873 | 111,181 | |
Depreciation, amortization and impairment | 167,894 | 150,548 | |
Flight operations | 127,777 | 130,930 | |
Aircraft rentals | 120,841 | 122,217 | |
Landing fees and other rentals | 55,498 | 56,703 | |
Other | 94,584 | 100,856 | |
Total operating expenses | 1,953,852 | 1,999,634 | |
Operating profit | 267,997 | 250,428 | |
Non-operating income (expense) | |||
Finance cost | (37,024) | (33,155) | |
Finance income | 13,000 | 25,947 | |
Exchange rate difference, net | 13,043 | (440,097) | |
Mark to market derivative income (expense) | 111,642 | (11,572) | |
Other income | 2,888 | 7,025 | |
Other expense | (7,347) | (6,451) | |
Total non - operating income (expense) | 96,202 | (458,303) | |
Profit (loss) before taxes | 364,199 | (207,875) | |
Income tax expense | (38,271) | (32,759) | |
Net profit (loss) | 325,928 | $ (240,634) | |
Reclasification [member] | |||
Current liabilities | |||
Taxes and interest payable | 21,094 | ||
Accrued expenses payable | (35,754) | ||
Income tax payable | (21,094) | ||
Non-current liabilities | |||
Other long-term liabilities | $ 35,754 |
New Standards and Interpretat_3
New Standards and Interpretations Not Yet Adopted - Summary of Impacts Due to the Adoption of New Standard In Consolidated Statement of Financial Position (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | ||||
Current assets | $ 1,198,488 | $ 1,069,391 | $ 907,585 | |
Non - current assets | 2,846,473 | 2,571,204 | 2,610,989 | |
Total assets | 4,044,961 | 3,640,595 | 3,518,574 | |
Current liabilities | ||||
Air traffic liability | 470,693 | 396,237 | 352,110 | |
Frequent flyer deferred revenue | 13,186 | 9,044 | 18,884 | |
Income tax payable | 3,700 | 1,401 | 24,066 | |
Other current liabilities | 130,590 | 120,437 | 218,969 | |
Total current liabilities | 1,047,029 | 862,682 | 985,667 | |
Non-current liabilities | ||||
Frequent flyer deferred revenue | 33,115 | 26,324 | ||
Other non - current liabilities | 130,621 | 108,448 | 54,339 | |
Total non - current liabilities | 1,092,320 | 1,141,160 | 1,142,387 | |
Total liabilities | 2,139,349 | 2,003,842 | 2,128,054 | |
Equity | ||||
Additional paid in capital | 72,945 | 64,986 | 57,455 | |
Treasury stock | (136,388) | (136,388) | (136,388) | |
Retained earnings | 1,944,439 | 1,681,573 | 1,441,831 | |
Net income | 369,658 | 325,928 | (240,634) | |
Accumulated other comprehensive loss | (3,888) | (1,872) | (768) | |
Total equity | 1,905,612 | 1,636,753 | 1,390,520 | $ 1,893,866 |
Total liabilities and equity | 4,044,961 | 3,640,595 | $ 3,518,574 | |
Restatement information without impact of IFRS 15 [Member] | ||||
ASSETS | ||||
Current assets | 1,198,488 | 1,069,391 | ||
Non - current assets | 2,846,473 | 2,571,204 | ||
Total assets | 4,044,961 | 3,640,595 | ||
Current liabilities | ||||
Air traffic liability | 470,693 | 396,237 | ||
Frequent flyer deferred revenue | 13,186 | 9,044 | ||
Income tax payable | 3,700 | 1,401 | ||
Other current liabilities | 559,450 | 456,000 | ||
Total current liabilities | 1,047,029 | 862,682 | ||
Non-current liabilities | ||||
Frequent flyer deferred revenue | 33,115 | 26,324 | ||
Other non - current liabilities | 1,059,205 | 1,114,836 | ||
Total non - current liabilities | 1,092,320 | 1,141,160 | ||
Total liabilities | 2,139,349 | 2,003,842 | ||
Equity | ||||
Issued capital | 28,504 | 28,454 | ||
Additional paid in capital | 72,945 | 64,986 | ||
Treasury stock | (136,388) | (136,388) | ||
Retained earnings | 1,574,781 | 1,355,645 | ||
Net income | 369,658 | 325,928 | ||
Accumulated other comprehensive loss | (3,888) | (1,872) | ||
Total equity | 1,905,612 | 1,636,753 | ||
Total liabilities and equity | 4,044,961 | 3,640,595 | ||
Transition impact [member] | ||||
Current liabilities | ||||
Air traffic liability | 6,475 | 3,559 | ||
Frequent flyer deferred revenue | 4,011 | 1,314 | ||
Income tax payable | (820) | (349) | ||
Total current liabilities | 9,666 | 4,524 | ||
Non-current liabilities | ||||
Total liabilities | 9,666 | 4,524 | ||
Equity | ||||
Retained earnings | (4,524) | (2,354) | ||
Net income | (5,142) | (2,170) | ||
Total equity | (9,666) | (4,524) | ||
IFRS15 [member] | ||||
ASSETS | ||||
Current assets | 1,198,488 | 1,069,391 | ||
Non - current assets | 2,846,473 | 2,571,204 | ||
Total assets | 4,044,961 | 3,640,595 | ||
Current liabilities | ||||
Air traffic liability | 477,168 | 399,796 | ||
Frequent flyer deferred revenue | 17,197 | 10,358 | ||
Income tax payable | 2,880 | 1,052 | ||
Other current liabilities | 559,450 | 456,000 | ||
Total current liabilities | 1,056,695 | 867,206 | ||
Non-current liabilities | ||||
Frequent flyer deferred revenue | 33,115 | 26,324 | ||
Other non - current liabilities | 1,059,205 | 1,114,836 | ||
Total non - current liabilities | 1,092,320 | 1,141,160 | ||
Total liabilities | 2,149,015 | 2,008,366 | ||
Equity | ||||
Issued capital | 28,504 | 28,454 | ||
Additional paid in capital | 72,945 | 64,986 | ||
Treasury stock | (136,388) | (136,388) | ||
Retained earnings | 1,570,257 | 1,353,291 | ||
Net income | 364,516 | 323,758 | ||
Accumulated other comprehensive loss | (3,888) | (1,872) | ||
Total equity | 1,895,946 | 1,632,229 | ||
Total liabilities and equity | $ 4,044,961 | $ 3,640,595 |
New Standards and Interpretat_4
New Standards and Interpretations Not Yet Adopted - Summary of Impacts Due to the Adoption of New Standard In Consolidated Statement of Profit or Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating revenue | |||
Passenger revenue | $ 2,462,419 | $ 2,155,167 | $ 2,185,465 |
Cargo and mail revenue | 55,290 | 53,989 | 56,738 |
Other operating revenue | 9,847 | 12,696 | 11,507 |
Total operating revenue | 2,527,556 | 2,221,852 | 2,253,710 |
Operating expenses | |||
Sales and distribution | 200,413 | 193,984 | 188,961 |
Total operating expenses | 2,097,913 | 1,954,332 | 2,001,076 |
Operating profit | 429,643 | 267,520 | 252,634 |
Non - operating income (expense) | (10,675) | 96,679 | (460,509) |
Profit (loss) before taxes | 418,968 | 364,199 | (207,875) |
Income tax expense | (49,310) | (38,271) | (32,759) |
Net profit (loss) | 369,658 | 325,928 | $ (240,634) |
Restatement information without impact of IFRS 15 [Member] | |||
Operating revenue | |||
Passenger revenue | 2,462,419 | 2,155,167 | |
Cargo and mail revenue | 55,290 | 53,989 | |
Other operating revenue | 9,847 | 12,696 | |
Total operating revenue | 2,527,556 | 2,221,852 | |
Operating expenses | |||
Other operating expenses | 1,897,500 | 1,760,348 | |
Sales and distribution | 200,413 | 193,984 | |
Total operating expenses | 2,097,913 | 1,954,332 | |
Operating profit | 429,643 | 267,520 | |
Non - operating income (expense) | (10,675) | 96,679 | |
Profit (loss) before taxes | 418,968 | 364,199 | |
Income tax expense | (49,310) | (38,271) | |
Net profit (loss) | 369,658 | 325,928 | |
Transition impact [member] | |||
Operating revenue | |||
Passenger revenue | (18,442) | (6,666) | |
Other operating revenue | 12,672 | 4,000 | |
Total operating revenue | (5,770) | (2,666) | |
Operating expenses | |||
Sales and distribution | (157) | (147) | |
Total operating expenses | (157) | (147) | |
Operating profit | (5,613) | (2,519) | |
Profit (loss) before taxes | (5,613) | (2,519) | |
Income tax expense | 471 | 349 | |
Net profit (loss) | (5,142) | (2,170) | |
IFRS15 [member] | |||
Operating revenue | |||
Passenger revenue | 2,443,977 | 2,148,501 | |
Cargo and mail revenue | 55,290 | 53,989 | |
Other operating revenue | 22,519 | 16,696 | |
Total operating revenue | 2,521,786 | 2,219,186 | |
Operating expenses | |||
Other operating expenses | 1,897,500 | 1,760,348 | |
Sales and distribution | 200,256 | 193,837 | |
Total operating expenses | 2,097,756 | 1,954,185 | |
Operating profit | 424,030 | 265,001 | |
Non - operating income (expense) | (10,675) | 96,679 | |
Profit (loss) before taxes | 413,355 | 361,680 | |
Income tax expense | (48,839) | (37,922) | |
Net profit (loss) | $ 364,516 | $ 323,758 |
New Standards and Interpretat_5
New Standards and Interpretations Not Yet Adopted - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Air traffic liability | $ 470,693 | $ 396,237 | $ 352,110 |
Frequent flyer deferred revenue | 13,186 | 9,044 | 18,884 |
Retained earnings | 1,944,439 | 1,681,573 | 1,441,831 |
Passenger revenue | 2,462,419 | 2,155,167 | 2,185,465 |
Other operating revenue | 9,847 | 12,696 | 11,507 |
Income tax expense | (49,310) | (38,271) | $ (32,759) |
Aircraft [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Future minimum lease payments | 400,835 | ||
Transition impact [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Air traffic liability | 6,475 | 3,559 | |
Frequent flyer deferred revenue | 4,011 | 1,314 | |
Retained earnings | (4,524) | (2,354) | |
Passenger revenue | (18,442) | (6,666) | |
Other operating revenue | 12,672 | 4,000 | |
Income tax expense | 471 | 349 | |
Transition impact [member] | Retained earnings [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Change in the timing of revenue recognition | (2,200) | ||
Change in the amount deferred for mileages credits | (200) | ||
Transition impact [member] | Other operating revenues [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Reclassification between Passenger revenue and Other operating revenue | 15,400 | 5,100 | |
Change in the amount deferred for mileages credits | (2,700) | (1,100) | |
Transition impact [member] | Passenger revenue [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Change in the timing of revenue recognition | (2,800) | (1,400) | |
Reclassification between Passenger revenue and Other operating revenue | (15,400) | (5,100) | |
Reclassification of denied board compensation from the Sales and distribution operating expenses to Passenger revenue | $ (200) | $ (200) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Disclosure of operating segments [abstract] | |
Number of operating segment | 1 |
Segment Reporting - Operating R
Segment Reporting - Operating Revenue by Principal Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [line items] | |||
Total operating revenue | $ 2,527,556 | $ 2,221,852 | $ 2,253,710 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Total operating revenue | 609,954 | 638,854 | 559,613 |
Panama [member] | |||
Disclosure of geographical areas [line items] | |||
Total operating revenue | 413,495 | 371,645 | 374,219 |
Central America and Caribbean [member] | |||
Disclosure of geographical areas [line items] | |||
Total operating revenue | 275,341 | 273,610 | 289,009 |
Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
Total operating revenue | 363,774 | 245,375 | 290,613 |
Colombia [member] | |||
Disclosure of geographical areas [line items] | |||
Total operating revenue | 197,819 | 146,138 | 174,206 |
Others South America [member] | |||
Disclosure of geographical areas [line items] | |||
Total operating revenue | $ 667,173 | $ 546,230 | $ 566,050 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents [abstract] | ||||
Checking and saving accounts | $ 145,283 | $ 173,943 | ||
Time deposits of no more than ninety days | 30,000 | 57,500 | ||
Overnight deposits | 63,157 | 99,933 | ||
Cash on hand | 352 | 311 | ||
Cash and cash equivalents | $ 238,792 | $ 331,687 | $ 204,715 | $ 221,443 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Bottom of range [member] | ||
Disclosure of cash and cash equivalents [line items] | ||
Time deposits interest rate | 1.49% | 0.42% |
Top of range [member] | ||
Disclosure of cash and cash equivalents [line items] | ||
Time deposits interest rate | 1.58% | 1.00% |
Investments - Schedule of Infor
Investments - Schedule of Information About Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term | |||
Investments short term | $ 705,108 | $ 483,002 | $ 480,233 |
Long-term | |||
Investments long term | 65,953 | 953 | $ 861 |
Time deposits between 90 and 365 days [member] | |||
Short-term | |||
Time deposits between 90 and 365 days | 705,108 | 483,002 | |
Time deposits of more than 365 days [member] | |||
Long-term | |||
Time deposits of more than 365 days | $ 65,953 | $ 953 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Bottom of range [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rates on time deposits | 1.37% | 1.00% |
Bottom of range [member] | United States of America, Dollars | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rate on long term time deposit | 3.20% | |
Top of range [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rates on time deposits | 3.75% | 3.75% |
Top of range [member] | United States of America, Dollars | ||
Disclosure of detailed information about investment property [line items] | ||
Interest rate on long term time deposit | 3.75% |
Accounts Receivable - Disclosur
Accounts Receivable - Disclosure of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of accounts receivables [abstract] | ||||
Credit cards | $ 64,420 | $ 65,052 | ||
Travel agencies and airlines clearing house | 36,640 | 36,318 | ||
Cargo, mail and other travel agencies | 6,798 | 9,278 | ||
Trade receivables due from related parties | 318 | 499 | ||
Government | 6,216 | 1,957 | ||
Other | 7,366 | 6,735 | ||
Total accounts receivable | 121,758 | 119,839 | ||
Provision for impairment | (3,673) | (3,739) | $ (2,997) | $ (3,691) |
Trade and other receivables | 118,085 | 116,100 | ||
Trade and other receivables current and non - current | ||||
Current | 115,641 | 114,143 | $ 105,777 | |
Non - current | 2,444 | 1,957 | ||
Trade and other receivables | $ 118,085 | $ 116,100 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of accounts receivables [abstract] | ||
Non - current account receivable | $ 2,444 | $ 1,957 |
Accounts Receivable - Maturity
Accounts Receivable - Maturity of Portfolio of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of accounts receivables [line items] | ||
Trade and other receivables | $ 121,758 | $ 119,839 |
Financial assets neither past due nor impaired [member] | ||
Disclosure of accounts receivables [line items] | ||
Trade and other receivables | 115,685 | 110,524 |
Financial assets not impaired [member] | ||
Disclosure of accounts receivables [line items] | ||
Trade and other receivables | 118,085 | 116,100 |
Financial assets not impaired [member] | Past due 1 to 30 days [member] | ||
Disclosure of accounts receivables [line items] | ||
Trade and other receivables | 1,286 | 711 |
Financial assets not impaired [member] | Past due 31 to 60 days [member] | ||
Disclosure of accounts receivables [line items] | ||
Trade and other receivables | 617 | 914 |
Financial assets not impaired [member] | More than 60 days [member] | ||
Disclosure of accounts receivables [line items] | ||
Trade and other receivables | 497 | 3,951 |
Impaired [member] | ||
Disclosure of accounts receivables [line items] | ||
Trade and other receivables | $ 3,673 | $ 3,739 |
Accounts Receivable - Provision
Accounts Receivable - Provision for Impairment of Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of accounts receivables [abstract] | |||
Beginning balance | $ (3,739) | $ (2,997) | $ (3,691) |
(Additions) reversals | (879) | (1,511) | 71 |
Write-offs | 945 | 769 | 623 |
Ending balance | $ (3,673) | $ (3,739) | $ (2,997) |
Expendable Parts and Supplies -
Expendable Parts and Supplies - Disclosure of Expendable Parts and Supplies (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Classes of current inventories [abstract] | |||
Material for repair and maintenance | $ 79,424 | $ 71,876 | |
Other inventories | 3,058 | 3,101 | |
Expendable parts and supplies, gross | 82,482 | 74,977 | |
Allowance for obsolescence | (657) | (475) | |
Expendable parts and supplies | $ 81,825 | $ 74,502 | $ 62,247 |
Expendable Parts and Supplies_2
Expendable Parts and Supplies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classes of current inventories [abstract] | |||
Expendable parts and supplies expense | $ 28.1 | $ 24.7 | $ 27.2 |
Prepaid Expenses - Detailed Inf
Prepaid Expenses - Detailed Information about Prepaid Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current prepayments [abstract] | |||
Prepaid taxes | $ 38,672 | $ 39,153 | |
Prepaid commissions | 5,297 | 4,649 | |
Prepaid rent | 7,479 | 6,707 | |
Prepaid insurance | 207 | 772 | |
Prepaid other | 19,896 | 33,524 | |
Total prepaid expenses | 71,551 | 84,805 | |
Current | 45,421 | 58,407 | $ 48,667 |
Non-current | 26,130 | 26,398 | |
Prepaid expenses | $ 71,551 | $ 84,805 |
Prepaid Expenses - Additional I
Prepaid Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Prepaid expenses [line items] | ||
Tax advance of VAT and withholdings taxes | $ 12,500 | $ 12,700 |
Advance payments of taxes | 12,900 | 14,800 |
Tax credits | 13,200 | 11,500 |
Prepaid other | 19,896 | 33,524 |
GE Engines Services, LLC [member] | ||
Prepaid expenses [line items] | ||
Prepaid other | $ 4,000 | $ 20,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 2,418,164 | $ 2,453,751 | |
Adjustments | 2 | (604) | $ (1,896) |
Ending balance | 2,617,407 | 2,418,164 | 2,453,751 |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,498,059 | 3,394,636 | 3,135,839 |
Additions | 362,466 | 141,440 | 279,683 |
Disposals | (55,107) | (38,740) | (20,886) |
Adjustments | 2,463 | ||
Reclassifications | (1,557) | (1,740) | |
Ending balance | 3,803,861 | 3,498,059 | 3,394,636 |
Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,079,895) | (940,885) | (811,745) |
Depreciation for the year | (158,696) | (151,672) | (143,262) |
Disposals | 52,137 | 15,343 | 14,122 |
Adjustments | (2,681) | ||
Ending balance | (1,186,454) | (1,079,895) | (940,885) |
Previously stated [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (630,503) | ||
Increase (decrease) due to corrections of prior period errors [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (205,518) | ||
Ending balance | (208,497) | (205,518) | |
Increase (decrease) due to corrections of prior period errors [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (181,242) | ||
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 |
Ending balance | 6,301 | 6,301 | 6,301 |
Flight equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,118,972 | 2,162,035 | |
Ending balance | 2,157,669 | 2,118,972 | 2,162,035 |
Flight equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,115,242 | 3,030,361 | 2,707,019 |
Transfer of pre-delivery payments | 28,674 | 27,585 | 161,169 |
Additions | 158,557 | 94,348 | 178,582 |
Disposals | (54,114) | (36,812) | (16,773) |
Adjustments | 100 | ||
Reclassifications | 3,870 | (340) | 364 |
Ending balance | 3,252,229 | 3,115,242 | 3,030,361 |
Flight equipment [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (996,270) | (868,326) | (748,583) |
Depreciation for the year | (148,188) | (141,418) | (133,045) |
Disposals | 51,233 | 13,587 | 13,341 |
Adjustments | (14) | ||
Reclassifications | (1,335) | (99) | (39) |
Ending balance | (1,094,560) | (996,270) | (868,326) |
Flight equipment [member] | Previously stated [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (567,341) | ||
Flight equipment [member] | Increase (decrease) due to corrections of prior period errors [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (181,242) | ||
Purchase deposits for flight equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 250,165 | 243,070 | |
Ending balance | 413,633 | 250,165 | 243,070 |
Purchase deposits for flight equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 250,165 | 243,070 | 321,175 |
Transfer of pre-delivery payments | (28,674) | (27,585) | (161,169) |
Additions | 192,196 | 34,680 | 83,064 |
Disposals | (54) | ||
Ending balance | 413,633 | 250,165 | 243,070 |
Ramp and miscellaneous [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 13,305 | 14,488 | |
Ending balance | 11,337 | 13,305 | 14,488 |
Ramp and miscellaneous [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 45,170 | 43,037 | 39,740 |
Additions | 1,461 | 3,026 | 2,827 |
Disposals | (228) | (604) | (25) |
Reclassifications | 1,950 | (289) | 495 |
Ending balance | 48,353 | 45,170 | 43,037 |
Ramp and miscellaneous [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (31,865) | (28,549) | (26,560) |
Depreciation for the year | (3,811) | (3,724) | (3,214) |
Disposals | 200 | 524 | 23 |
Reclassifications | (1,540) | (116) | 1,202 |
Ending balance | (37,016) | (31,865) | (28,549) |
Ramp and miscellaneous [member] | Previously stated [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (26,560) | ||
Furniture, fixture, equipment a and other [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4,026 | 4,056 | |
Ending balance | 4,565 | 4,026 | 4,056 |
Furniture, fixture, equipment a and other [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 29,607 | 25,947 | 25,308 |
Additions | 3,392 | 1,878 | 2,269 |
Disposals | (711) | (1,226) | (864) |
Adjustments | 2,363 | ||
Reclassifications | (4,764) | 645 | (766) |
Ending balance | 27,524 | 29,607 | 25,947 |
Furniture, fixture, equipment a and other [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (25,581) | (21,891) | (18,197) |
Depreciation for the year | (2,192) | (2,284) | (2,774) |
Disposals | 704 | 1,220 | 581 |
Adjustments | (2,667) | ||
Reclassifications | 4,110 | 41 | (1,501) |
Ending balance | (22,959) | (25,581) | (21,891) |
Furniture, fixture, equipment a and other [member] | Previously stated [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (18,197) | ||
Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 18,802 | 13,747 | |
Ending balance | 18,124 | 18,802 | 13,747 |
Leasehold improvements [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 44,981 | 35,866 | 28,580 |
Additions | 1,614 | 73 | 3,190 |
Disposals | (98) | (881) | |
Reclassifications | 3,448 | 9,140 | 4,977 |
Ending balance | 50,043 | 44,981 | 35,866 |
Leasehold improvements [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (26,179) | (22,119) | (18,405) |
Depreciation for the year | (4,505) | (4,246) | (4,229) |
Disposals | 12 | 177 | |
Reclassifications | (1,235) | 174 | 338 |
Ending balance | (31,919) | (26,179) | (22,119) |
Leasehold improvements [member] | Previously stated [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (18,405) | ||
Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,593 | 10,054 | |
Ending balance | 5,778 | 6,593 | 10,054 |
Construction in progress [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,593 | 10,054 | 7,716 |
Additions | 5,246 | 7,435 | 9,751 |
Disposals | (2,343) | ||
Reclassifications | (6,061) | (10,896) | (5,070) |
Ending balance | $ 5,778 | $ 6,593 | $ 10,054 |
Property Plan and Equipment - A
Property Plan and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Borrowing costs capitalized | $ 1.8 | $ 0 |
Capitalized borrowing rate | 2.14% | |
Carrying amount of asset acquired under finance leases | $ 535.5 | $ 463.4 |
Useful lives of property and equipment | The Company concluded that airframe and engines are now expected to remain in operation for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years. | |
Effects of changes on actual and expected depreciation expense | 11.8 | |
Aircraft [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Advance payments on aircraft purchase contracts | 192.2 | $ 34.7 |
Carrying value pledged as collateral obligation | $ 1,700 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Disclosure of finance lease and operating lease by lessee [abstract] | |||
Minimum lease term of finance leases arrangements | 10 years | ||
Acquisition of new aircraft as non-cash investing and financing transactions | $ 89 | $ 46 | |
Total lease expense | $ 134.5 | 138.8 | $ 142.2 |
Average term of aircraft operating leases | 10 years | ||
Number of aircraft under lessor | Aircraft | 2 | ||
Carrying amount of aircraft under operating lease | $ 37 | 41.6 | |
Scheduled expiration date of lease | 2,020 | ||
Total lease income amounts | $ 3.5 | $ 3.5 | $ 1.9 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Required under Finance Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease by lessee [line items] | ||
Future minimum lease payments | $ 620,623 | $ 558,027 |
Interest | 97,934 | 96,230 |
Present value of minimum lease payments | 525,187 | 466,367 |
Up to one year [member] | ||
Disclosure of finance lease by lessee [line items] | ||
Future minimum lease payments | 46,274 | 39,016 |
Interest | 16,180 | 14,524 |
Present value of minimum lease payments | 45,416 | 38,407 |
One to five years [member] | ||
Disclosure of finance lease by lessee [line items] | ||
Future minimum lease payments | 186,344 | 152,880 |
Interest | 54,830 | 48,979 |
Present value of minimum lease payments | 169,383 | 139,322 |
Over five years [member] | ||
Disclosure of finance lease by lessee [line items] | ||
Future minimum lease payments | 388,005 | 366,131 |
Interest | 26,924 | 32,727 |
Present value of minimum lease payments | $ 310,388 | $ 288,638 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments Required under Aircraft and Non-aircraft Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Aircraft [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | $ 400,835 |
Aircraft [member] | Up to one year [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | 111,568 |
Aircraft [member] | One to five years [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | 270,310 |
Aircraft [member] | Over five years [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | 18,957 |
Others [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | 107,440 |
Others [member] | Up to one year [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | 14,988 |
Others [member] | One to five years [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | 74,943 |
Others [member] | Over five years [member] | |
Disclosure of operating lease by lessee [line items] | |
Future minimum lease payments | $ 17,509 |
Leases - Schedule of Future M_3
Leases - Schedule of Future Minimum Lease Receivables under Non-cancellable Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessor [line items] | ||
Future minimum lease receivables under non -cancelable leases | $ 8,555 | $ 12,035 |
Up to one year [member] | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Future minimum lease receivables under non -cancelable leases | 3,480 | 3,480 |
One to five years [member] | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Future minimum lease receivables under non -cancelable leases | $ 5,075 | $ 8,555 |
Net Pension Assets - Summary of
Net Pension Assets - Summary of Net Pension Asset (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of net defined benefit asset (liability) [line items] | |||
Pension assets | $ 23,794 | $ 25,946 | |
Employee benefits liability | (20,609) | (17,120) | |
Net pension asset | 3,185 | 8,826 | $ 6,050 |
Post employment benefits [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Employee benefits liability | (19,997) | (16,498) | |
Other employee benefits [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Employee benefits liability | $ (612) | $ (622) |
Net Pension Assets - Additional
Net Pension Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit asset (liability) [line items] | |||
Employer contributions | $ 3.5 | ||
Retirement of interest earned | 5.2 | ||
Actuarial loss recognized in other comprehensive income | $ 2 | $ 1.1 | $ 2.2 |
Seniority premium plan [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Percentage of eligible earnings accumulated as benefit | 1.92% | ||
Indemnity plan [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Percentage of eligible earnings accumulated as benefit | 6.54% |
Net Pension Assets - Summary _2
Net Pension Assets - Summary of Components of Net Benefit Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit asset (liability) [line items] | |||
Current service cost | $ (1,767) | $ (1,724) | $ (1,638) |
Interest cost on net benefit obligation | 210 | 173 | 110 |
Net benefit expense | (1,557) | (1,551) | (1,528) |
Defined benefit obligation [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Current service cost | (1,767) | (1,724) | (1,638) |
Interest cost on net benefit obligation | (568) | (516) | (422) |
Net benefit expense | (2,335) | (2,240) | (2,060) |
Fair value of assets [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Interest cost on net benefit obligation | 778 | 689 | 532 |
Net benefit expense | $ 778 | $ 689 | $ 532 |
Net Pension Assets - Summary _3
Net Pension Assets - Summary of Reconciliation of Net Pension Asset (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | $ 8,826 | $ 6,050 | $ 2,522 |
Current service cost | (1,767) | (1,724) | (1,638) |
Interest (cost) income | 210 | 173 | 110 |
Return on plan assets greater (less) than discount rate | (21) | 518 | 701 |
Experience (gain) loss | (2,033) | (1,052) | (809) |
Investment return | 88 | 27 | 105 |
Gross benefits paid | (440) | (513) | (599) |
Assumption changes | (226) | (67) | 222 |
Employer contributions | (1,677) | 3,970 | 3,749 |
Benefits paid | 215 | 236 | 183 |
Adjustments | 10 | 1,208 | 1,504 |
Ending balance | 3,185 | 8,826 | 6,050 |
Defined benefit obligation [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | (16,498) | (14,468) | (12,778) |
Current service cost | (1,767) | (1,724) | (1,638) |
Interest (cost) income | (568) | (516) | (422) |
Experience (gain) loss | (2,033) | (1,052) | (809) |
Assumption changes | (226) | (67) | 222 |
Benefits paid | 1,095 | 1,329 | 957 |
Ending balance | (19,997) | (16,498) | (14,468) |
Fair value of assets [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | 25,946 | 22,273 | 18,559 |
Interest (cost) income | 778 | 689 | 532 |
Return on plan assets greater (less) than discount rate | (21) | 518 | 701 |
Investment return | 88 | 27 | 105 |
Gross benefits paid | (440) | (513) | (599) |
Employer contributions | (1,677) | 3,970 | 3,749 |
Benefits paid | (880) | (1,018) | (774) |
Ending balance | 23,794 | 25,946 | 22,273 |
Other employee benefits liability [member] | |||
Disclosure of net defined benefit asset (liability) [line items] | |||
Beginning balance | (622) | (1,755) | (3,259) |
Benefits paid | (75) | ||
Adjustments | 10 | 1,208 | 1,504 |
Ending balance | $ (612) | $ (622) | $ (1,755) |
Net Pension Assets - Summary _4
Net Pension Assets - Summary of Sensitivity Analysis for Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discount rate [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Actuarial assumption rate | 3.15% | 3.37% | 3.45% |
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 | RP - 2000 no collar | 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% | 13.00% |
Male [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Retirement age | 62 | 62 | 62 |
Female [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Retirement age | 57 | 57 | 57 |
Net Pension Assets - Summary _5
Net Pension Assets - Summary of Additional Information about Sensitivity Analysis for Actuarial Assumptions (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Discount rate (0.5% movement) [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Increase | $ (506) | $ (410) | $ (366) |
Decrease | 537 | 434 | 388 |
Compensation - salary increase [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Increase | 99 | 122 | 114 |
Decrease | $ (89) | $ (117) | $ (109) |
Net Pension Assets - Summary _6
Net Pension Assets - Summary of Expected Contribution Payments to Defined Benefit Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [line items] | ||
Total expected payments | $ 25,619 | $ 21,471 |
Up to one year [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total expected payments | 3,424 | 2,823 |
More than one year but less than five years [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total expected payments | 10,794 | 9,195 |
Over five years [member] | ||
Disclosure of defined benefit plans [line items] | ||
Total expected payments | $ 11,401 | $ 9,453 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | $ 69,502 | $ 69,426 | |
Impairment loss | 5,900 | ||
Ending balance | 81,115 | 69,502 | $ 69,426 |
Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 110,607 | 101,870 | 82,517 |
Additions | 18,681 | 14,474 | 19,418 |
Disposals | (4,891) | (1,546) | (65) |
Impairment loss | (5,931) | ||
Reclassifications | 1,557 | 1,740 | |
Ending balance | 125,954 | 110,607 | 101,870 |
Amortization of intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (41,105) | (32,444) | (25,222) |
Amortization for the year | (8,628) | (10,207) | (7,287) |
Disposals | 4,894 | 1,546 | 65 |
Ending balance | (44,839) | (41,105) | (32,444) |
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 |
Ending balance | 20,380 | 20,380 | 20,380 |
License and software rights [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 33,044 | 31,365 | |
Ending balance | 29,844 | 33,044 | 31,365 |
License and software rights [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 74,149 | 63,809 | 37,663 |
Additions | 1,783 | 73 | 121 |
Disposals | (4,891) | (1,546) | (65) |
Reclassifications | 3,642 | 11,813 | 26,090 |
Ending balance | 74,683 | 74,149 | 63,809 |
License and software rights [member] | Amortization of intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (41,105) | (32,444) | (25,222) |
Amortization for the year | (8,628) | (10,207) | (7,287) |
Disposals | 4,894 | 1,546 | 65 |
Ending balance | (44,839) | (41,105) | (32,444) |
Intangible in process [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 16,078 | 17,681 | |
Ending balance | 30,891 | 16,078 | 17,681 |
Intangible in process [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 16,078 | 17,681 | 24,474 |
Additions | 16,898 | 14,401 | 19,297 |
Impairment loss | (5,931) | ||
Reclassifications | (2,085) | (10,073) | (26,090) |
Ending balance | $ 30,891 | $ 16,078 | $ 17,681 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Discount rates | 12.92% | ||
Decrease in discount rate | 11.50% | ||
Increase in discount rate | 13.50% | ||
Impairment loss | $ 5,900 | ||
Intangible assets | $ 81,115 | 69,502 | $ 69,426 |
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Estimated recoverable amount | 4,400,000 | 3,500,000 | |
Carrying amount | $ 20,400 | ||
Percentage of growth rate | 3.10% | ||
Estimated recoverable amount of CGU exceed its carrying value by | 92.00% | ||
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 | $ 11,800 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets [abstract] | |||
Interest receivable | $ 10,443 | $ 6,741 | |
Other | 1,258 | 909 | |
Other currents assets | 11,701 | 7,650 | $ 5,946 |
Guarantee deposits | 14,568 | 10,401 | |
Deposits for litigation | 12,390 | 12,482 | |
Other assets | 4,182 | 4,182 | |
Other non - current assets | 31,140 | 27,065 | $ 68,193 |
Other current and non-current assets | $ 42,841 | $ 34,715 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | $ 1,174,581 | $ 1,184,132 | |
Current maturities | (298,462) | (222,718) | $ (245,514) |
Long-term debt | 876,119 | 961,414 | $ 1,055,183 |
Borrowing due through 2025 [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | 626,150 | 702,454 | |
Borrowing due through 2027 [member] | Floating interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | 420,634 | ||
Borrowing due through 2018 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | $ 127,797 | ||
Borrowing due through 2026 [member] | Floating interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | 398,178 | ||
Borrowing due through 2017 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | $ 83,500 | ||
Bottom of range [member] | Borrowing due through 2025 [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 1.81% | 1.81% | |
Bottom of range [member] | Borrowing due through 2027 [member] | Floating interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 1.54% | ||
Bottom of range [member] | Borrowing due through 2018 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 2.33% | ||
Bottom of range [member] | Borrowing due through 2026 [member] | Floating interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 0.90% | ||
Bottom of range [member] | Borrowing due through 2017 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 1.88% | ||
Top of range [member] | Borrowing due through 2025 [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 5.58% | 5.58% | |
Top of range [member] | Borrowing due through 2027 [member] | Floating interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 3.04% | ||
Top of range [member] | Borrowing due through 2018 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 2.58% | ||
Top of range [member] | Borrowing due through 2026 [member] | Floating interest rate [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 2.23% | ||
Top of range [member] | Borrowing due through 2017 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Effective interest rates of borrowings | 1.98% |
Debt - Summary of Maturities of
Debt - Summary of Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt maturity | $ 1,174,581 | $ 1,184,132 |
2018 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt maturity | 298,462 | |
2019 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt maturity | 167,191 | |
2020 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt maturity | 118,376 | |
2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt maturity | 96,070 | |
2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt maturity | 89,144 | |
Thereafter [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term debt maturity | $ 405,338 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | $ 1,174,581 | $ 1,184,132 |
Support from Export-Import Bank for net purchase price of aircraft | 80.00% | |
Aircraft financing maturity period | 15 years | |
Loan accreting percentage | 100.00% | |
Number of aircraft finance with SOAR structure | Aircraft | 4 | |
Finance with SOAR structure | $ 28,300 | 24,800 |
Non-cash investing and finacing transactions | 89,000 | |
Export-import bank of united states [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Outstanding indebtedness | 372,000 | 446,500 |
Borrowing on which fixed applicable interest rate is exercised | 231,900 | 286,100 |
Borrowing due through 2018 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | 127,797 | |
Borrowing due through 2017 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | 83,500 | |
Finance lease [member] | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | 394,200 | 416,300 |
Finance lease [member] | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt including current maturities | $ 128,400 | $ 45,400 |
Debt - Summary of Finance Cost
Debt - Summary of Finance Cost and Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about borrowings [line items] | |||
Finance income | $ 17,939 | $ 13,000 | $ 25,947 |
Finance cost | (35,223) | (37,024) | (33,155) |
Interest income on short-term bank deposits [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance income | 1,499 | 675 | 3,662 |
Interest income on investment [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance income | 16,440 | 12,325 | 22,285 |
Interests expense on bank loans [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance cost | (32,599) | (32,647) | (30,866) |
Interest on factoring [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance cost | $ (2,624) | $ (4,377) | $ (2,289) |
Debt - Changes in Liabilities A
Debt - Changes in Liabilities Arising from Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | $ 1,184,132 | ||
Payments on loans, borrowings and finance leases | (246,349) | $ (326,965) | $ (221,912) |
Proceeds from new borrowings | 147,798 | 164,400 | $ 130,000 |
Non-cash transactions | 89,000 | ||
Debt including current maturities | 1,174,581 | 1,184,132 | |
Obligations under finance leases [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | 461,797 | ||
Payments on loans, borrowings and finance leases | (28,107) | ||
Non-cash transactions | 89,000 | ||
Debt including current maturities | 522,690 | 461,797 | |
Debt [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt including current maturities | 722,335 | ||
Payments on loans, borrowings and finance leases | (218,242) | ||
Proceeds from new borrowings | 147,798 | ||
Debt including current maturities | $ 651,891 | $ 722,335 |
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, 2017 | Dec. 31, 2016 |
Trade and other payables [line items] | ||
Account payables | $ 116,554 | $ 104,176 |
Account payables to related parties | 12,880 | 8,681 |
Trade payable | 129,434 | 112,857 |
Other payables and financial liabilities | 1,156 | 7,580 |
Trade, other payables and financial liabilities | 130,590 | 120,437 |
Fuel derivative instruments [member] | ||
Trade and other payables [line items] | ||
Other payables and financial liabilities | 2,801 | |
Others [member] | ||
Trade and other payables [line items] | ||
Other payables and financial liabilities | $ 1,156 | $ 4,779 |
Accrued Expenses Payable - Summ
Accrued Expenses Payable - Summary of Accrued Expenses Payable (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accrued expenses [abstract] | ||
Accruals and estimations | $ 9,059 | $ 5,849 |
Labor related provisions | 44,188 | 31,785 |
Liability for social security contributions | 6,432 | 5,700 |
Other | 642 | 1,028 |
Accrued expenses payable | $ 60,321 | $ 44,362 |
Accrued Expenses Payable - Addi
Accrued Expenses Payable - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accrued expenses [abstract] | ||
Current portion of provision for return condition | $ 4.9 | $ 2.3 |
Current portion of provision for maintenance | $ 4.2 | $ 3.5 |
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, 2017USD ($) | |
Disclosure Of Other Long-term Liabilities [Line Items] | |
Beginning balance | $ 114,268 |
Increases | 41,983 |
Used | (9,149) |
Reclassification | (7,235) |
Effect of movements in exchange rates | (187) |
Ending balance | 139,680 |
Current and non - current | |
Current | 9,059 |
Non-current | 130,621 |
Ending balance | 139,680 |
Provision for litigations [member] | |
Disclosure Of Other Long-term Liabilities [Line Items] | |
Beginning balance | 14,318 |
Increases | 1,021 |
Effect of movements in exchange rates | (187) |
Ending balance | 15,152 |
Current and non - current | |
Non-current | 15,152 |
Ending balance | 15,152 |
Provision for return condition [member] | |
Disclosure Of Other Long-term Liabilities [Line Items] | |
Beginning balance | 58,299 |
Increases | 40,499 |
Used | (5,824) |
Ending balance | 92,974 |
Current and non - current | |
Current | 4,897 |
Non-current | 88,077 |
Ending balance | 92,974 |
Other long term liabilities [member] | |
Disclosure Of Other Long-term Liabilities [Line Items] | |
Beginning balance | 41,651 |
Increases | 463 |
Used | (3,325) |
Reclassification | (7,235) |
Ending balance | 31,554 |
Current and non - current | |
Current | 4,162 |
Non-current | 27,392 |
Ending balance | $ 31,554 |
Other Long-term Liabilities - A
Other Long-term Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Non-current liabilities [abstract] | ||
Amount in escrow account | $ 12.4 | $ 12.5 |
Provision for maintenance | 28.9 | |
Trust fund | $ 3.1 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current taxes expense | |||
Current period | $ (43,034) | $ (31,666) | $ (30,435) |
Adjustment for prior period | 455 | (127) | (1,228) |
Current taxes expense, total | (42,579) | (31,793) | (31,663) |
Deferred taxes expenses | |||
Origination and reversal of temporary differences | (6,731) | (6,478) | (1,096) |
Total income tax expense | $ (49,310) | $ (38,271) | $ (32,759) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax rate | 25.00% | 25.00% | 25.00% |
Deferred tax assets | $ 19,099 | $ 18,339 | $ 12,708 |
Temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized | $ 397,900 | 237,100 | |
Colombia [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Effective rate | 37.00% | ||
Short term position [member] | Colombia [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax rate | 37.00% | ||
Long term position [member] | Colombia [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax rate | 33.00% | ||
Carried forward tax losses of Copa Colombia [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 7,300 | $ 10,100 |
Income Taxes - Summary of Balan
Income Taxes - Summary of Balances of Deferred Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax liabilities | |||
Maintenance deposits | $ (26,586) | $ (23,790) | |
Prepaid dividend tax | (14,103) | (12,432) | |
Property and equipment | (9,975) | (7,867) | |
Other | (4,050) | (6,013) | |
Set off tax | 2,249 | 5,128 | |
Deferred tax liabilities | (52,465) | (44,974) | $ (32,865) |
Deferred tax assets | |||
Provision for return conditions | 7,859 | 7,606 | |
Air traffic liability | 1,281 | 1,015 | |
Fuel derivative | 107 | ||
Other provisions | 4,859 | 4,587 | |
Tax Loss | 7,349 | 10,152 | |
Set off tax | (2,249) | (5,128) | |
Deferred tax assets | 19,099 | 18,339 | 12,708 |
Total deferred taxes | (33,366) | (26,635) | |
Deferred tax liabilities | |||
Maintenance deposits | 2,796 | 2,286 | 5,866 |
Prepaid dividend tax | 1,671 | 5,300 | |
Property and equipment | 2,108 | (1,599) | 3,579 |
Other | (1,963) | (10,147) | 11,692 |
Set off tax | 2,879 | 16,269 | (24,568) |
Deferred tax liabilities | 7,491 | 12,109 | (3,431) |
Deferred tax assets | |||
Provision for return conditions | (253) | 4,417 | (11,203) |
Air traffic liability | (266) | 305 | 1,076 |
Fuel derivative | 107 | 4,403 | 94 |
Other provisions | (272) | (3,059) | 4,716 |
Tax Loss | 2,803 | 4,572 | (14,724) |
Set off tax | (2,879) | (16,269) | 24,568 |
Deferred tax assets | (760) | (5,631) | 4,527 |
Origination and reversal of temporary differences | $ 6,731 | $ 6,478 | $ 1,096 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of effective tax rate [abstract] | |||
Income taxes at Panamanian statutory rates | 25.00% | 25.00% | 25.00% |
Effect of tax rates in non - panamanian jurisdictions | 0.10% | (2.50%) | (11.00%) |
Exemption in non - taxable countries | (13.30%) | (12.00%) | (29.10%) |
Adjustment for prior period | (0.10%) | 0.03% | (0.60%) |
Provision for income taxes | 11.70% | 10.50% | (15.70%) |
Net income (loss) | $ 369,658 | $ 325,928 | $ (240,634) |
Total income tax expense | 49,310 | 38,271 | 32,759 |
Profit (loss) excluding income tax | 418,968 | 364,199 | (207,875) |
Income taxes at Panamanian statutory rates | 104,742 | 91,050 | (51,969) |
Effect of tax rates in non - panamanian jurisdictions | 590 | (9,260) | 22,936 |
Exemption in non - taxable countries | (55,567) | (43,646) | 60,564 |
Adjustment for prior period | (455) | 127 | 1,228 |
Provision for income taxes | $ 49,310 | $ 38,271 | $ 32,759 |
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, 2017 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | ||
Account receivable | $ 318 | $ 499 |
Account payable | 12,880 | 8,681 |
Panama air cargo terminal [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 254 | |
Account payable | 200 | |
Editora del caribe, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 32 | 15 |
Petroleos delta, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 19 | 5 |
Account payable | 10,371 | 7,504 |
Banco general, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 12 | |
ASSA compania de seguros, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account receivable | 1 | 479 |
Account payable | 1,431 | 687 |
Desarrollo inmobiliario del este, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 650 | 421 |
Motta international, S.A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 81 | 25 |
Cable onda [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 112 | 21 |
Galindo, arias and lopez [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | 31 | 16 |
Others [member] | ||
Disclosure of transactions between related parties [line items] | ||
Account payable | $ 4 | $ 7 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Petroleos delta, S. A. [member] | Purchase of jet fuel [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | $ 290,172 | $ 229,899 | $ 248,944 |
ASSA compania de seguros, S. A. [member] | Insurance [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 8,527 | 7,128 | 9,170 |
Desarrollo inmobiliario del este, S. A. [member] | Property leasing [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 3,625 | 3,795 | 2,982 |
Profuturo administradora de fondos de pension y cesantia [member] | Payments [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 2,386 | 3,238 | |
Motta International [member] | Purchase [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 1,632 | 1,646 | 1,290 |
Cable Onda, S. A. [member] | Communications [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 1,448 | 1,625 | |
GBM International, Inc. [member] | Technological support [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 273 | 272 | 533 |
Galindo, arias and lopez [member] | Legal services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 373 | 341 | 271 |
Global Brands Panama, S. A. [member] | Purchase [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 79 | 67 | 47 |
Panama air cargo terminal [member] | Handling [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 4,869 | ||
Lubricantes Delta, S. A. [member] | Fuel accessories [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 63 | ||
Editora del caribe, S. A. [member] | Advertising [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | 4 | (162) | 22 |
Banco general, S. A. [member] | Interest income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party | $ (2,986) | $ (1,284) | $ (1,301) |
Accounts and Transactions wit_5
Accounts and Transactions with Related Parties - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($) | |
Desarrollo inmobiliario del este, S. A. [member] | Desarrollo inmobiliario [member] | ||
Disclosure of transactions between related parties [line items] | ||
Approximate area of building | ft² | 121,686 | |
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 | $ 3.1 | |
Petroleos delta, S. A. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Contract agreement term | Two years | |
Guarantee deposits | $ 11.8 | $ 7 |
The last contract subscribed | June, 2016 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits | $ 5,133 | $ 3,763 | $ 3,570 |
Post-employment pension | 99 | 72 | 68 |
Share-based payments | 5,524 | 5,799 | 3,023 |
Total | $ 10,756 | $ 9,634 | $ 6,661 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Feb. 28, 2016 | Sep. 30, 2015 | Nov. 30, 2014 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 |
Disclosure of equity [line items] | |||||||||||
Dividend payable annual percentage | 40.00% | ||||||||||
Dividends payable per share | $ 0.75 | $ 0.75 | $ 0.51 | $ 0.51 | $ 0.51 | ||||||
Treasury stock [member] | |||||||||||
Disclosure of equity [line items] | |||||||||||
Share repurchase program authorized amount | $ 250,000,000 | ||||||||||
Number of shares repurchase program | 167,650 | ||||||||||
Share repurchase program period value | $ 17,900,000 | ||||||||||
Accelerated share repurchase [member] | Citibank one [member] | |||||||||||
Disclosure of equity [line items] | |||||||||||
Number of shares repurchase program | 1,960,250 | ||||||||||
Share repurchase program period value | $ 100,000,000 | ||||||||||
Stock repurchase program maturity period | 3 months | ||||||||||
Share repurchase program settlement amount per share | $ 51.01 | ||||||||||
Class A common stock [member] | |||||||||||
Disclosure of equity [line items] | |||||||||||
Common stock, shares authorised | 80,000,000 | ||||||||||
Common stock, shares issued | 33,776,480 | 33,743,286 | |||||||||
Common stock, shares outstanding | 31,017,102 | 31,185,641 | 31,112,356 | 33,050,298 | |||||||
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 | 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) | Jun. 30, 2017$ / shares | Feb. 28, 2017$ / shares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | May 31, 2016$ / shares | Feb. 29, 2016$ / shares | Mar. 31, 2007yrshares$ / shares | Dec. 31, 2017USD ($)yr | Dec. 31, 2016USD ($)yr | Dec. 31, 2015USD ($) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Share-based compensation expense | $ 7,400,000 | $ 7,500,000 | $ 4,000,000 | |||||||
Fair value of non-vested stock awards | $ / shares | $ 107.29 | $ 107.29 | $ 59.94 | $ 59.94 | $ 63.30 | $ 59.94 | ||||
Estimated compensation cost for next year | $ 9,300,000 | $ 13,100,000 | ||||||||
Weighted average remaining contractual life | yr | 2.1 | 2.8 | ||||||||
Additional compensation cost recognized | $ 0 | |||||||||
Share option expiration period | Mar. 31, 2017 | |||||||||
Vesting period | 3 years | |||||||||
Expected term | 10 years | |||||||||
2017 [member] | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Estimated compensation cost for next year | $ 4,900,000 | |||||||||
Stock options [member] | ||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||
Weighted average remaining contractual life | yr | 10 | |||||||||
Equity stock options granted | shares | 35,657 | |||||||||
Exercise price of the options | $ / shares | $ 53.1 | |||||||||
Weighted-average fair value of the stock options at the grant date | $ / shares | $ 22.3 | |||||||||
Expected dividend yield | 0.58% | |||||||||
Expected volatility | 37.80% | |||||||||
Weighted average risk-free interest rate | 4.59% | |||||||||
Expected term | yr | 6 |
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, 2017shares | |
February, 2013 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 19,786 |
Vesting conditions | 15% first three anniversaries, 25% fourth anniversary, 30% fifth anniversary |
Contractual life | 5 years |
February, 2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 13,709 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 years |
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 anniversary, 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 | 10,920 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 years |
June, 2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 4,912 |
Vesting conditions | Third anniversary |
Contractual life | 3 years |
June 2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 6,750 |
Vesting conditions | 15% first three anniversaries, 25% fourth anniversary, 30% fifth anniversary |
Contractual life | 5 years |
December, 2015 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 429 |
Vesting conditions | Third anniversary |
Contractual life | 3 years |
February, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 19,012 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 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 anniversary, 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 anniversary, 30% fifth anniversary |
Contractual life | 5 years |
May, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 4,739 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 years |
June, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 25,280 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 years |
June, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 7,925 |
Vesting conditions | Third anniversary |
Contractual life | 3 years |
Sept, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 6,668 |
Vesting conditions | Third anniversary |
Contractual life | 3 years |
Sept, 2016 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of instruments | 5,005 |
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 | 22,012 |
Vesting conditions | One-third every anniversary |
Contractual life | 3 years |
June, 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 |
June, 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 |
Share-based Payments - Summar_2
Share-based Payments - Summary of non-vested stock award activity (Detail) - Non-vested [member] | 12 Months Ended | ||
Dec. 31, 2017shares | Dec. 31, 2016shares | Dec. 31, 2015shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at January 1 | 333,183 | 139,962 | 199,786 |
Granted | 36,229 | 291,872 | 36,291 |
Vested | (62,224) | (94,208) | (94,704) |
Forfeited | (3,035) | (4,443) | (1,411) |
Outstanding at December 31 | 304,153 | 333,183 | 139,962 |
Share-based payments - Summar_3
Share-based payments - Summary of Options Award Activity (Detail) - Stock options [member] | 12 Months Ended | ||
Dec. 31, 2017shares | Dec. 31, 2016shares | Dec. 31, 2015shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at January 1 | 19,894 | 20,940 | 20,940 |
Exercised | (11,061) | (1,046) | |
Forfeited | (8,833) | ||
Outstanding at December 31 | 19,894 | 20,940 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings (loss) per share- | |||
Net income (loss) | $ 369,658 | $ 325,928 | $ (240,634) |
Weighted-average shares outstanding | 42,111 | 42,036 | 43,716 |
Non-vested dividend participating awards | 308 | 322 | 145 |
Weighted-average shares outstanding used for basic earnings per share | 42,419 | 42,358 | 43,861 |
Basic earnings (loss) per share from continuing operations | $ 8.71 | $ 7.69 | $ (5.49) |
Diluted earnings (loss) per share- | |||
Net income (loss) | $ 369,658 | $ 325,928 | $ (240,634) |
Weighted-average shares outstanding used for basic earnings per share | 42,419 | 42,358 | 43,861 |
Share options on issue | 5 | 8 | |
Adjusted weighted average number of ordinary shares outstanding, Total | 42,419 | 42,363 | 43,869 |
Diluted earnings (loss) per share from continuing operations | $ 8.71 | $ 7.69 | $ (5.49) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)ContractOrderOrganization | Dec. 31, 2016USD ($) | |
Purchase contracts [member] | ||
Commitments and contingencies [line items] | ||
Number of purchase contracts subscribed | Contract | 2 | |
Firm order value | $ 9,500,000,000 | |
Purchase contracts [member] | Up to one year [member] | ||
Commitments and contingencies [line items] | ||
Number of firm orders in purchase contract | Order | 2 | |
Purchase contracts [member] | Later than 7 years and not later than 10 years [member] | ||
Commitments and contingencies [line items] | ||
Number of firm orders in purchase contract | Order | 71 | |
Labor unions [member] | ||
Commitments and contingencies [line items] | ||
Number of company's employees | 9,045 | |
Percentage of employees unionized | 62.00% | |
Number of union organizations | Organization | 9 | |
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 | |
Lines of credit for working capital and letters of credit [member] | ||
Commitments and contingencies [line items] | ||
Letters of credit maintained | $ 25,500,000 | $ 26,600,000 |
Lines of credit for working capital and letters of credit [member] | Line of credit [member] | ||
Commitments and contingencies [line items] | ||
Total line of credit | 212,300,000 | |
Committed line of credit | 20,000,000 | |
Uncommitted lines of credit | 192,300,000 | |
Lines of credit for working capital and letters of credit [member] | Banco General line of credit [member] | ||
Commitments and contingencies [line items] | ||
Committed line of credit | 15,000,000 | |
Lines of credit for working capital and letters of credit [member] | Banco General overdraft line of credit [member] | ||
Commitments and contingencies [line items] | ||
Committed line of credit | 5,000,000 | |
Lines of credit for working capital and letters of credit [member] | Bladex line of credit [member] | ||
Commitments and contingencies [line items] | ||
Uncommitted lines of credit | 100,000,000 | |
Lines of credit for working capital and letters of credit [member] | Citibank line of credit [member] | ||
Commitments and contingencies [line items] | ||
Uncommitted lines of credit | 77,300,000 | |
Lines of credit for working capital and letters of credit [member] | Banco Nacional De Panama line of credit [member] | ||
Commitments and contingencies [line items] | ||
Uncommitted lines of credit | 15,000,000 | |
Lines of credit for working capital and letters of credit [member] | Borrowing due through 2018 [member] | ||
Commitments and contingencies [line items] | ||
Line of credit balance amount | $ 127,800,000 | |
Lines of credit for working capital and letters of credit [member] | Borrowing due through 2017 [member] | ||
Commitments and contingencies [line items] | ||
Line of credit balance amount | $ 83,500,000 | |
Covenants [member] | Bottom of range [member] | ||
Commitments and contingencies [line items] | ||
Earnings before income taxes, depreciation, amortization, and restructuring, or rent cost ("EBITDAR") to a fixed charge ratio | 2.50% | |
Minimum tangible net worth | $ 160,000,000 | |
EBITDAR to a finance charge expense ratio | 2 | |
Minimum unrestricted cash balance | $ 50,000,000 | |
Cash, cash equivalents and short-term investments | $ 75,000,000 | |
Covenants [member] | Top of range [member] | ||
Commitments and contingencies [line items] | ||
Total liability plus operating leases minus operating cash to tangible net worth ratio | 5.5 | |
Long-term obligations to an EBITDAR ratio | 6 |
Financial Instrument - Risk Man
Financial Instrument - Risk Management and Fair Value - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)DerivativeInstrument | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 09, 2016 |
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative instrument hedging description | Short to mid-term hedging (generally three to eighteen months) | ||||
Mark to market derivative income (expense) | $ 2.8 | $ 111.6 | $ (11.6) | ||
Fair value of derivative contracts | 0 | $ 2.8 | |||
Foreign exchange gain (loss) | $ 11 | ||||
Bottom of range [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative instrument hedging term | 3 months | ||||
Top of range [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative instrument hedging term | 18 months | ||||
Interest rate swap contract [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Number of derivative instrument company entered | DerivativeInstrument | 1 | ||||
Description of impact of hypothetical interest rates on the variable-rate debt and marketable securities | If interest rates average 10% less in 2018 than in 2017, the interest income from marketable securities would decrease by approximately $1.4 million and the fair value of the debt would increase by approximately $1.3 million. | ||||
Average interest rate on derivatives | 10.00% | ||||
Change in interest expense | $ 1.4 | ||||
Increase decrease in fair value of debt | $ 1.3 | ||||
Brazil, Brazil real [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign currency risk revenue | 16.50% | 10.10% | |||
Colombia, pesos [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign currency risk revenue | 11.40% | 11.80% | |||
Argentina, pesos [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign currency risk revenue | 7.80% | 6.80% | |||
Currency risk [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign exchange risk revenue | 43.70% | ||||
Percentage of foreign exchange risk expenses | 59.80% | ||||
Currency risk [member] | Sistema Complementario de Administracion de divisas [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign exchange rate | 13.50 | 13.50 | |||
Currency risk [member] | Sistema Complementario de Administracion de divisas [member] | Aeronautical operations [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign exchange rate | 13.50 | ||||
Currency risk [member] | Sistema Marginal de Divisas [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign exchange rate | 198.7 | 198.7 | |||
Currency risk [member] | DICOM [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Percentage of foreign exchange rate | 3,345 | 673.7 | |||
Currency risk [member] | Venezuela [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Foreign exchange gain (loss) | $ 430.2 | ||||
Fuel derivative instruments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative instrument hypothetical increases percentage | 10.00% | ||||
Fuel derivative instruments [member] | 2018 projection [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Derivative instrument expense increase | $ 60.9 | ||||
Borrowing due through 2025 [member] | Fixed interest rate [member] | Bottom of range [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Fixed interest rates | 1.81% | 1.81% | |||
Borrowing due through 2025 [member] | Fixed interest rate [member] | Top of range [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Fixed interest rates | 5.58% | 5.58% |
Financial Instrument - Risk M_2
Financial Instrument - Risk Management and Fair Value - Summary of Foreign Currency Risk Exposure (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 238,792 | $ 331,687 | $ 204,715 | $ 221,443 |
Accounts receivable, net | 118,085 | 116,100 | ||
Prepaid expenses | 71,551 | 84,805 | ||
Other assets | 42,841 | 34,715 | ||
Currency risk [member] | ||||
ASSETS | ||||
Cash and cash equivalents | 25,189 | 51,718 | ||
Investments | 277 | 276 | ||
Accounts receivable, net | 75,769 | 69,460 | ||
Prepaid expenses | 32,045 | 34,635 | ||
Other assets | 29,459 | 35,343 | ||
Total assets | 162,739 | 191,432 | ||
Liabilities | ||||
Accounts payable | 37,186 | 32,098 | ||
Taxes payable | 39,559 | 55,060 | ||
Other liabilities | 25,471 | 40,342 | ||
Total liabilities | 102,216 | 127,500 | ||
Net position | $ 60,523 | $ 63,932 |
Financial Instrument - Risk M_3
Financial Instrument - Risk Management and Fair Value - Summary of Financial Liabilities According to Maturity Date (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | $ 1,304,015 | $ 1,296,987 |
Derivative financial liabilities | 2,801 | |
Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 458,718 | 365,535 |
Derivative financial liabilities | 2,801 | |
Between 1 and 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 549,726 | 616,031 |
More than 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 434,181 | 466,105 |
Debt [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 1,174,581 | 1,184,132 |
Debt [member] | Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 329,284 | 252,680 |
Debt [member] | Between 1 and 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 549,726 | 616,031 |
Debt [member] | More than 4 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 434,181 | 466,105 |
Accounts payable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 116,554 | 104,174 |
Accounts payable [member] | Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 116,554 | 104,174 |
Account payable to related parties [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 12,880 | 8,681 |
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 | 12,880 | 8,681 |
Fuel derivative instruments [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 2,801 | |
Fuel derivative instruments [member] | Up to one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 2,801 | |
Contractual cash flow [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 1,442,625 | 1,447,671 |
Derivative financial liabilities | 2,801 | |
Contractual cash flow [member] | Debt [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 1,313,191 | 1,334,816 |
Contractual cash flow [member] | Accounts payable [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Non - derivative financial liabilities carrying amount | 116,554 | 104,174 |
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 | $ 12,880 | 8,681 |
Contractual cash flow [member] | Fuel derivative instruments [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | $ 2,801 |
Financial Instrument - Risk M_4
Financial Instrument - Risk Management and Fair Value - Summary of Gearing Ratio (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | ||||
Total debt (note 18) | $ 1,174,581 | $ 1,184,132 | ||
Less: non-restricted cash and cash equivalents and short-term investments | (943,900) | (814,689) | ||
Net debt | 230,681 | 369,443 | ||
Total equity | 1,905,612 | 1,636,753 | $ 1,390,520 | $ 1,893,866 |
Total capitalization | $ 2,136,293 | $ 2,006,196 | ||
Gearing ratio | 10.80% | 18.40% |
Financial Instrument - Risk M_5
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | $ 238,792 | $ 331,687 | $ 204,715 | $ 221,443 |
Short-term investments | 705,108 | 483,002 | 480,233 | |
Account receivable | 118,085 | 116,100 | ||
Long-term investments | 65,953 | 953 | $ 861 | |
Debt | 1,174,581 | 1,184,132 | ||
Account payable | 129,434 | 112,857 | ||
Derivative financial liabilities | 2,801 | |||
Financial Assets at Fair Value, Class [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | 238,792 | 331,687 | ||
Short-term investments | 705,108 | 483,002 | ||
Account receivable | 118,085 | 116,100 | ||
Long-term investments | 65,953 | 953 | ||
Fuel derivative instruments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative financial liabilities | 2,801 | |||
Financial Liabilities at Fair Value, Class [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Debt | 1,053,070 | 1,062,952 | ||
Account payable | $ 129,434 | 112,857 | ||
Financial Liabilities at Fair Value, Class [Member] | Fuel derivative instruments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative financial liabilities | $ 2,801 |
Financial Instrument - Risk M_6
Financial Instrument - Risk Management and Fair Value - Summary of Financial Instruments Measured at Fair Value (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Disclosure of fair value measurement of liabilities [line items] | |
Fuel derivatives | $ 2,801 |
Fuel derivative instruments [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Fuel derivatives | 2,801 |
Level 2 of Fair Value Hierarchy [Member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Fuel derivatives | 2,801 |
Level 2 of Fair Value Hierarchy [Member] | Fuel derivative instruments [member] | |
Disclosure of fair value measurement of liabilities [line items] | |
Fuel derivatives | $ 2,801 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Apr. 05, 2018 | Mar. 31, 2018USD ($) | Dec. 31, 2017 | Feb. 05, 2018 |
Revenue from Copa Airlines' flights to Venezuela [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Percentage of consolidated revenue | 5.00% | |||
Subsequent event [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Number of days flights between Panama and Venezuela cancelled | 90 days | |||
Subsequent event [member] | Central Bank of Venezuela [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Foreign exchange rate on first auction | 25,000 | |||
Major ordinary share transactions [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Non-vested stock, number of awards approved | 3 | |||
Non-vested stock, grant | 39,761 | |||
Estimated compensation cost | $ 5.4 | |||
Estimated compensation cost for next year | $ 2.5 | |||
Non-vested stock, vesting period | Vest over a period of three to five years |