UPDATE: Panama's Copa Airlines Shares Down On Swine Flu

New York Stock Exchange-listed shares of Panama-based airline Copa Holding SA (CPA) fell 8.2% Monday on nervousness about the spreading of swine flu from Mexico.

The stock was recently down $2.64 to $29.70.

Shares of publicly traded airlines around the world fell Monday, and Copa is in the middle of the storm as it operates in the Central American, South American and the Caribbean markets from its hub in Panama.

The price decline isn't specific to Copa but is a global phenomenon, said Joseph Putaturo, the company's director for investor relations.

"Copa will lose a lot of passengers; Panama is the hub of Latin America," said Rupert Stebbings, a market analyst at Colombia's largest brokerage Interbolsa SA.

Copa and its subsidiaries offer about 125 daily flights linking 40 destinations in 21 countries in the Americas from its Panama City hub.

All airlines flying to Mexico City are in risk, said Stephen Trent, a New York-based market analyst with Citigroup. "In the case of Copa, I wouldn't say the risk is extreme," he added. "Mexico-based airlines and Mexican airport operators are most at risk," he added.

Copa gets only about 5% of its passenger revenue from Mexico, he added. The company focuses on not-so-massive destinations such as Central American and Caribbean cities.

A group of Panamanian investors is Copa's main shareholder. U.S. airlines Continental Airlines Inc. (CAL) used to hold a minority stake in Copa but sold it in the past few years.

-By Inti Landauro, Dow Jones Newswires; 57-1-610 70 44 Ext. 1131; [e-mail]