PANAMA
CITY, Aug. 7, 2024 /PRNewswire/ -- Copa
Holdings, S.A. (NYSE: CPA), today announced financial results for
the second quarter of 2024 (2Q24). The terms "Copa Holdings" and
the "Company" refer to the consolidated entity. The following
financial information, unless otherwise indicated, is presented in
accordance with International Financial Reporting Standards (IFRS).
See the accompanying reconciliation of non-IFRS financial
information to IFRS financial information included in the financial
tables section of this earnings release. Unless otherwise stated,
all comparisons with prior periods refer to the second quarter of
2023 (2Q23).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported a net profit of US$120.3 million for 2Q24 or US$2.88 per share. The Company reported an
operating profit of US$159.5 million
and an operating margin of 19.5%.
- Passenger traffic for 2Q24, measured in terms of revenue
passenger miles (RPMs), increased by 10.6% compared to 2Q23 while
capacity, measured in available seat miles (ASMs), increased by
9.7%. As a result, the load factor for the quarter increased by 0.7
percentage points to 86.8% compared to 2Q23.
- Operating cost per available seat mile excluding fuel (Ex-fuel
CASM) decreased by 5.8% in the quarter to 5.6 cents when compared to 2Q23, mainly driven by
lower maintenance, materials and repair costs as well as lower
sales and distribution costs.
- Revenue per available seat mile (RASM) decreased by 7.7% to
11.0 cents compared to 2Q23, driven
by an 8.7% decrease in passenger yields. Total revenues for 2Q24
increased by 1.3% to US$819.4
million.
- The Company ended the quarter with approximately US$1.2 billion in cash, short-term and long-term
investments, which represent 35% of the last twelve months'
revenues.
- The Company closed the quarter with total debt, including lease
liabilities, of US$1.8 billion, while
our Adjusted Net Debt to EBITDA ratio ended at 0.6 times.
- During the quarter, the Company took delivery of three Boeing
737 MAX 9 aircraft, ending the quarter with a consolidated fleet of
109 aircraft – 67 Boeing 737-800s, 32 Boeing 737 MAX 9s, 9 Boeing
737-700s, and 1 Boeing 737-800 freighter.
- Copa Airlines had an on-time performance for the quarter of
87.6% and a flight completion factor of 99.7%, once again
positioning itself among the very best in the industry.
Subsequent Events
- In July, Copa Airlines was recognized by Skytrax – for the
ninth consecutive year – as the "Best Airline in Central America and the Caribbean."
- In July, the Company took delivery of its first Boeing 737 MAX
8, increasing its total fleet to 110 aircraft.
- On July 29, the Government of
Venezuela temporarily suspended
commercial flights between Venezuela and Panama effective July
31st, forcing the Company to suspend its flights
between the two countries. As of the date hereof, the official
notice mandates the suspension of flights until August 31st.
- Copa Holdings will make its third dividend payment of the year
of US$1.61 per share on September 13, 2024, to all Class A and Class B
shareholders on record as of August 30,
2024.
|
Consolidated
Financial
& Operating Highlights
|
2Q24
|
2Q23
|
Variance Vs
2Q23
|
1Q24
|
Variance Vs
1Q24
|
YTD24
|
YTD23
|
Variance Vs
YTD23
|
|
Revenue Passengers
Carried (000s)
|
3,303
|
2,980
|
10.8 %
|
3,272
|
0.9 %
|
6,575
|
5,860
|
12.2 %
|
|
Revenue Passengers
OnBoard (000s)
|
4,970
|
4,469
|
11.2 %
|
4,790
|
3.7 %
|
9,760
|
8,764
|
11.4 %
|
|
RPMs
(millions)
|
6,446
|
5,826
|
10.6 %
|
6,127
|
5.2 %
|
12,573
|
11,550
|
8.9 %
|
|
ASMs
(millions)
|
7,424
|
6,767
|
9.7 %
|
7,121
|
4.2 %
|
14,545
|
13,363
|
8.8 %
|
|
Load Factor
|
86.8 %
|
86.1 %
|
0.7 p.p
|
86.0 %
|
0.8 p.p
|
86.4 %
|
86.4 %
|
0.0 p.p
|
|
Yield (US$
Cents)
|
12.1
|
13.3
|
(8.7) %
|
14.0
|
(13.5) %
|
13.0
|
13.9
|
(6.3) %
|
|
PRASM (US$
Cents)
|
10.5
|
11.4
|
(7.9) %
|
12.1
|
(12.7) %
|
11.3
|
12.0
|
(6.3) %
|
|
RASM (US$
Cents)
|
11.0
|
12.0
|
(7.7) %
|
12.5
|
(12.0) %
|
11.8
|
12.5
|
(6.1) %
|
|
CASM (US$
Cents)
|
8.9
|
9.1
|
(2.1) %
|
9.5
|
(6.6) %
|
9.2
|
9.6
|
(4.6) %
|
|
CASM Excl. Fuel (US$
Cents)
|
5.6
|
5.9
|
(5.8) %
|
6.1
|
(8.1) %
|
5.8
|
6.1
|
(3.9) %
|
|
Fuel Gallons Consumed
(millions)
|
87.6
|
79.9
|
9.6 %
|
84.4
|
3.7 %
|
172.0
|
158.1
|
8.8 %
|
|
Avg. Price Per Fuel
Gallon (US$)
|
2.79
|
2.65
|
5.2 %
|
2.90
|
(3.7) %
|
2.84
|
3.00
|
(5.4) %
|
|
Average Length of Haul
(miles)
|
1,952
|
1,955
|
(0.2) %
|
1,873
|
4.2 %
|
1,912
|
1,971
|
(3.0) %
|
|
Average Stage Length
(miles)
|
1,253
|
1,260
|
(0.5) %
|
1,246
|
0.6 %
|
1,249
|
1,270
|
(1.6) %
|
|
Departures
|
36,313
|
33,385
|
8.8 %
|
35,220
|
3.1 %
|
71,533
|
65,369
|
9.4 %
|
|
Block Hours
|
116,062
|
107,055
|
8.4 %
|
112,164
|
3.5 %
|
228,226
|
211,681
|
7.8 %
|
|
Average Aircraft
Utilization (hours)
|
11.9
|
11.8
|
0.3 %
|
11.6
|
2.0 %
|
11.7
|
11.9
|
(0.9) %
|
|
Operating Revenues (US$
millions)
|
819.4
|
809.2
|
1.3 %
|
893.5
|
(8.3) %
|
1,712.9
|
1,676.5
|
2.2 %
|
|
Operating Profit (Loss)
(US$ millions)
|
159.5
|
194.7
|
(18.1) %
|
216.0
|
(26.1) %
|
375.5
|
387.9
|
(3.2) %
|
|
Operating
Margin
|
19.5 %
|
24.1 %
|
-4.6 p.p
|
24.2 %
|
-4.7 p.p
|
21.9 %
|
23.1 %
|
-1.2 p.p
|
|
Net Profit (Loss) (US$
millions)
|
120.3
|
17.5
|
586.8 %
|
176.1
|
(31.7) %
|
296.3
|
139.0
|
113.1 %
|
|
Adjusted Net Profit
(Loss) (US$ millions) (1)
|
120.3
|
154.5
|
(22.2) %
|
176.1
|
(31.7) %
|
296.3
|
312.3
|
(5.1) %
|
|
Basic EPS
(US$)
|
2.88
|
0.44
|
549.4 %
|
4.19
|
(31.1) %
|
7.07
|
3.52
|
101.0 %
|
|
Adjusted Basic EPS
(US$) (1)
|
2.88
|
3.92
|
(26.4) %
|
4.19
|
(31.1) %
|
7.07
|
7.90
|
(10.5) %
|
|
Shares for calculation
of Basic EPS (000s)
|
41,715
|
39,444
|
5.8 %
|
42,052
|
(0.8) %
|
41,883
|
39,504
|
6.0 %
|
(1) Excludes Special Items. This earnings
release includes a reconciliation of non-IFRS financial measures to
the comparable IFRS measures.
FULL 2Q24 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
2Q24 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
|
Date:
|
August 8,
2024
|
|
|
|
Time:
|
11:00 AM US ET (11:00
AM Local Time)
|
|
|
|
Join by
phone:
|
https://register.vevent.com/register/BIaa69ad95e8754597ac5a227df82cb25e
|
|
|
|
Webcast
(listen-only):
|
https://copa.gcs-web.com/events-and-presentations
|
|
|
|
Speakers:
|
Pedro Heilbron, Chief
Executive Officer
|
|
|
|
José Montero, Chief
Financial Officer
|
|
|
About Copa Holdings
Copa Holdings is a
leading Latin American provider of passenger and cargo services.
The Company, through its operating subsidiaries, provides service
to countries in North, Central, and South
America and the Caribbean.
For more information visit:
www.copaair.com.
CONTACT: Copa Holdings S.A.
Investor Relations:
Ph: 011 507 304-2774
www.copaair.com (IR section)
This release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are based on current plans,
estimates, and expectations, and are not guarantees of future
performance. They are based on management's expectations that
involve several business risks and uncertainties, any of which
could cause actual results to differ materially from those
expressed in or implied by the forward-looking statements. The
Company undertakes no obligation to update or revise any
forward-looking statement. The risks and uncertainties relating to
the forward-looking statements in this release are among those
disclosed in Copa Holdings' filed disclosure documents and are,
therefore, subject to change without prior notice.
CPA-G
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of profit or loss
(In
US$ thousands)
|
|
Unaudited
|
|
Unaudited
|
|
%
|
Unaudited
|
|
%
|
|
Unaudited
|
|
Unaudited
|
%
|
|
|
2Q24
|
|
2Q23
|
|
Change
|
1Q24
|
|
Change
|
|
YTD24
|
|
YTD23
|
Change
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
781,497
|
|
773,781
|
|
1.0 %
|
858,725
|
|
(9.0 %)
|
|
1,640,222
|
|
1,607,798
|
2.0 %
|
|
Cargo and mail
revenue
|
|
25,184
|
|
23,888
|
|
5.4 %
|
21,910
|
|
14.9 %
|
|
47,095
|
|
47,140
|
(0.1 %)
|
|
Other operating
revenue
|
|
12,722
|
|
11,521
|
|
10.4 %
|
12,831
|
|
(0.9 %)
|
|
25,553
|
|
21,516
|
18.8 %
|
|
Total Operating
Revenue
|
|
819,403
|
|
809,190
|
|
1.3 %
|
893,467
|
|
(8.3 %)
|
|
1,712,870
|
|
1,676,454
|
2.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
246,011
|
|
214,121
|
|
14.9 %
|
245,352
|
|
0.3 %
|
|
491,363
|
|
479,619
|
2.4 %
|
|
Wages, salaries,
benefits and other employees' expenses
|
|
114,878
|
|
105,788
|
|
8.6 %
|
114,314
|
|
0.5 %
|
|
229,193
|
|
208,441
|
10.0 %
|
|
Passenger
servicing
|
|
27,579
|
|
21,460
|
|
28.5 %
|
29,684
|
|
(7.1 %)
|
|
57,263
|
|
41,852
|
36.8 %
|
|
Airport facilities and
handling charges
|
|
62,768
|
|
54,146
|
|
15.9 %
|
60,347
|
|
4.0 %
|
|
123,115
|
|
104,625
|
17.7 %
|
|
Sales and
distribution
|
|
52,210
|
|
56,596
|
|
(7.8 %)
|
55,494
|
|
(5.9 %)
|
|
107,704
|
|
118,002
|
(8.7 %)
|
|
Maintenance, materials
and repairs
|
|
10,883
|
|
31,430
|
|
(65.4 %)
|
25,627
|
|
(57.5 %)
|
|
36,510
|
|
71,726
|
(49.1 %)
|
|
Depreciation and
amortization
|
|
79,462
|
|
74,818
|
|
6.2 %
|
83,365
|
|
(4.7 %)
|
|
162,827
|
|
147,494
|
10.4 %
|
|
Flight
operations
|
|
31,914
|
|
25,005
|
|
27.6 %
|
31,029
|
|
2.9 %
|
|
62,944
|
|
52,429
|
20.1 %
|
|
Other operating and
administrative expenses
|
|
34,190
|
|
31,158
|
|
9.7 %
|
32,270
|
|
6.0 %
|
|
66,461
|
|
64,387
|
3.2 %
|
|
Total Operating
Expense
|
|
659,896
|
|
614,523
|
|
7.4 %
|
677,482
|
|
(2.6 %)
|
|
1,337,378
|
|
1,288,576
|
3.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit/(Loss)
|
|
159,507
|
|
194,667
|
|
(18.1 %)
|
215,985
|
|
(26.1 %)
|
|
375,492
|
|
387,878
|
(3.2 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance cost
|
|
(20,632)
|
|
(30,517)
|
|
(32.4 %)
|
(18,840)
|
|
9.5 %
|
|
(39,472)
|
|
(54,882)
|
(28.1 %)
|
|
Finance
income
|
|
13,537
|
|
11,970
|
|
13.1 %
|
13,746
|
|
(1.5 %)
|
|
27,284
|
|
20,812
|
31.1 %
|
|
Gain (loss) on foreign
currency fluctuations
|
|
(16,097)
|
|
3,712
|
|
(533.6 %)
|
(3,914)
|
|
311.3 %
|
|
(20,010)
|
|
4,914
|
(507.2 %)
|
|
Net change in fair
value of derivatives
|
|
2,533
|
|
(137,473)
|
|
(101.8 %)
|
(8)
|
|
— %
|
|
2,525
|
|
(175,406)
|
(101.4 %)
|
|
Other non-operating
income (expense)
|
|
1,766
|
|
925
|
|
90.9 %
|
(112)
|
|
(1679.9 %)
|
|
1,654
|
|
2,160
|
(23.4 %)
|
|
Total Non-Operating
Income/(Expense)
|
|
(18,892)
|
|
(151,382)
|
|
(87.5 %)
|
(9,127)
|
|
107.0 %
|
|
(28,019)
|
|
(202,402)
|
(86.2 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before
taxes
|
|
140,615
|
|
43,284
|
|
224.9 %
|
206,858
|
|
(32.0 %)
|
|
347,472
|
|
185,476
|
87.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(20,362)
|
|
(25,775)
|
|
(21.0 %)
|
(30,792)
|
|
(33.9 %)
|
|
(51,154)
|
|
(46,447)
|
10.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit/(Loss)
|
|
120,253
|
|
17,509
|
|
586.8 %
|
176,066
|
|
(31.7 %)
|
|
296,318
|
|
139,030
|
113.1 %
|
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of financial position
(In US$ thousands)
|
|
June
2024
|
|
December
2023
|
|
ASSETS
|
|
(Unaudited)
|
|
(Audited)
|
|
Cash and cash
equivalents
|
|
200,635
|
|
206,375
|
|
Short-term
investments
|
|
748,239
|
|
708,809
|
|
Total cash, cash
equivalents and short-term investments
|
|
948,874
|
|
915,184
|
|
Accounts receivable,
net
|
|
186,902
|
|
156,720
|
|
Accounts receivable
from related parties
|
|
2,637
|
|
2,527
|
|
Expendable parts and
supplies, net
|
|
116,578
|
|
116,604
|
|
Prepaid
expenses
|
|
44,134
|
|
44,635
|
|
Prepaid income
tax
|
|
98
|
|
66
|
|
Other current
assets
|
|
21,375
|
|
32,227
|
|
|
371,723
|
|
352,780
|
|
TOTAL CURRENT
ASSETS
|
|
1,320,598
|
|
1,267,963
|
|
Long-term
investments
|
|
258,379
|
|
258,934
|
|
Long-term prepaid
expenses
|
|
7,766
|
|
9,633
|
|
Property and
equipment, net
|
|
3,326,243
|
|
3,238,632
|
|
Right of use
assets
|
|
341,009
|
|
281,146
|
|
Intangible,
net
|
|
92,715
|
|
87,986
|
|
Net defined benefit
assets
|
|
6,204
|
|
5,346
|
|
Deferred tax
assets
|
|
21,497
|
|
30,148
|
|
Other Non-Current
Assets
|
|
16,821
|
|
17,048
|
|
TOTAL NON-CURRENT
ASSETS
|
|
4,070,634
|
|
3,928,872
|
|
TOTAL
ASSETS
|
|
5,391,232
|
|
5,196,836
|
|
LIABILITIES
|
|
|
|
|
|
Loans and
borrowings
|
|
226,513
|
|
222,430
|
|
Current portion of
lease liability
|
|
59,743
|
|
68,304
|
|
Accounts
payable
|
|
193,427
|
|
182,303
|
|
Accounts payable to
related parties
|
|
3,913
|
|
1,228
|
|
Air traffic
liability
|
|
640,643
|
|
611,856
|
|
Frequent flyer
deferred revenue
|
|
127,024
|
|
124,815
|
|
Taxes
Payable
|
|
53,642
|
|
44,210
|
|
Accrued expenses
payable
|
|
41,417
|
|
64,940
|
|
Income tax
payable
|
|
6,630
|
|
26,741
|
|
Other Current
Liabilities
|
|
737
|
|
1,403
|
|
TOTAL CURRENT
LIABILITIES
|
|
1,353,688
|
|
1,348,229
|
|
|
|
|
|
|
Loans and borrowings
long-term
|
|
1,241,684
|
|
1,240,261
|
|
Lease
Liability
|
|
296,402
|
|
215,353
|
|
Deferred tax
Liabilities
|
|
47,457
|
|
36,369
|
|
Other long - term
liabilities
|
|
216,512
|
|
234,474
|
|
TOTAL NON-CURRENT
LIABILITIES
|
|
1,802,054
|
|
1,726,457
|
|
TOTAL
LIABILITIES
|
|
3,155,742
|
|
3,074,685
|
|
EQUITY
|
|
|
|
|
|
Class A - 34,185,954
issued and 30,654,620 outstanding
|
|
23,244
|
|
23,201
|
|
Class B -
10,938,125
|
|
7,466
|
|
7,466
|
|
Additional Paid-In
Capital
|
|
211,260
|
|
209,102
|
|
Treasury
Stock
|
|
(254,532)
|
|
(204,130)
|
|
Retained
Earnings
|
|
1,961,060
|
|
1,581,739
|
|
Net profit
|
|
296,318
|
|
514,098
|
|
Other comprehensive
loss
|
|
(9,326)
|
|
(9,326)
|
|
TOTAL
EQUITY
|
|
2,235,490
|
|
2,122,150
|
|
TOTAL EQUITY
LIABILITIES
|
|
5,391,232
|
|
5,196,836
|
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of cash flows
For
the six months ended
(In US$
thousands)
|
2024
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash flow from
operating activities
|
470,777
|
|
420,171
|
|
327,833
|
|
Cash flow (used in)
investing activities
|
(258,696)
|
|
(293,193)
|
|
(262,743)
|
|
Cash flow (used in)
from financing activities
|
(217,820)
|
|
32,461
|
|
(142,046)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(5,739)
|
|
159,439
|
|
(76,956)
|
|
Cash and cash
equivalents at January 1
|
206,375
|
|
122,424
|
|
211,081
|
|
Cash and cash
equivalents at June 30
|
$
200,636
|
|
$
281,863
|
|
$
134,125
|
|
|
|
|
|
|
|
Short-term
investments
|
748,239
|
|
833,576
|
|
801,132
|
|
Long-term
investments
|
258,379
|
|
222,282
|
|
140,374
|
|
Total cash and cash
equivalents and investments at June 30
|
$
1,207,254
|
|
$
1,337,721
|
|
$
1,075,631
|
Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non-IFRS financial
measures: Adjusted Net Profit, Adjusted Basic EPS, and Operating
CASM Excluding Fuel. This supplemental information is presented
because we believe it is a useful indicator of our operating
performance and is useful in comparing our performance with other
companies in the airline industry. These measures should not be
considered in isolation and should be considered together with
comparable IFRS measures, in particular operating profit, and net
profit. The following is a reconciliation of these non-IFRS
financial measures to the comparable IFRS measures:
|
Reconciliation of
Adjusted Net Profit
|
2Q24
|
|
2Q23
|
|
1Q24
|
|
|
|
|
|
|
|
Net Profit as
Reported
|
$ 120,253
|
|
$
17,509
|
|
$ 176,066
|
|
Net change in fair
value of derivatives
|
$
—
|
|
$ 137,473
|
|
$
—
|
|
Net change in fair
value of financial investments
|
$
—
|
|
$
(512)
|
|
$
—
|
|
Adjusted Net
Profit
|
$
120,253
|
|
$ 154,469
|
|
$
176,066
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Basic EPS
|
2Q24
|
|
2Q23
|
|
1Q24
|
|
|
|
|
|
|
|
Adjusted Net
Profit
|
$ 120,253
|
|
$ 154,469
|
|
$ 176,066
|
|
Shares used for
calculation of Basic EPS
|
41,715
|
|
39,444
|
|
42,052
|
|
Adjusted Basic
Earnings per share (Adjusted Basic EPS)
|
$
2.88
|
|
$
3.92
|
|
$
4.19
|
|
|
|
|
|
|
|
Reconciliation of
Operating Costs per ASM
|
|
|
|
|
|
|
Excluding Fuel (CASM
Excl. Fuel)
|
2Q24
|
|
2Q23
|
|
1Q24
|
|
|
|
|
|
|
|
Operating Costs per ASM
as Reported (in US$ Cents)
|
8.9
|
|
9.1
|
|
9.5
|
|
Aircraft Fuel Cost per
ASM (in US$ Cents)
|
3.3
|
|
3.2
|
|
3.4
|
|
Operating Costs per
ASM excluding fuel (in US$ Cents)
|
5.6
|
|
5.9
|
|
6.1
|
View original
content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-second-quarter-of-2024-302217099.html
SOURCE Copa Holdings, S.A.