PANAMA
CITY, Panama,
May 15,
2024 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA),
today announced financial results for the first quarter of 2024
(1Q24). 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 first quarter of 2023 (1Q23).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported a net profit of US$176.1 million for 1Q24 or
US$4.19 per share, a
US$18.3 million increase compared
to 1Q23 on an adjusted basis. These results include a negative
impact of approximately US$44.0
million related to the grounding of 21 of the Company's
Boeing 737 MAX 9 aircraft in January and exclude any compensation
received from Boeing.
- Copa Holdings reported an operating profit of US$216.0 million and an operating
margin of 24.2%, an increase of 11.8% and 1.9
percentage points, respectively, compared to 1Q23.
- Passenger traffic for 1Q24, measured in terms of revenue
passenger miles (RPMs), increased by 7.1% compared to 1Q23 while
capacity, measured in available seat miles (ASMs), increased by
8.0%. As a result, the load factor for the quarter decreased by 0.7
percentage points to 86.0% compared to 1Q23.
- Total revenues for 1Q24 increased 3.0% to US$893.5 million driven by an increase in
passenger traffic. During the quarter, compared to 1Q23, passenger
yields decreased by 3.8% to 14.0
cents, and revenue per available seat mile (RASM) decreased
by 4.6% to 12.5 cents.
- Operating cost per available seat mile (CASM) decreased by 6.9%
from 10.2 cents in 1Q23 to
9.5 cents in 1Q24, mainly driven by a
decrease of 13.9% in the price of jet fuel, a decrease in
maintenance, materials and repairs costs, and lower sales and
distribution costs.
- CASM excluding fuel (Ex-fuel CASM) decreased by
2.0% in the quarter to 6.1 cents, when compared to 1Q23.
Excluding the negative impact on costs and capacity of the
partial grounding of the Company's 737 MAX 9 fleet in January, Copa
Holdings would have reported an Ex-fuel CASM of approximately
5.8 cents for the quarter.
- The Company ended the quarter with approximately US$1.1 billion in cash, short-term and
long-term investments, which represent 32% of the last twelve
months' revenues.
- By the end of 1Q24, the Company had executed approximately
US$40 million of the US$200
million share repurchase program approved by the Board of
Directors.
- The Company closed the quarter with total debt, including lease
liabilities, of US$1.7 billion,
while our Adjusted Net Debt to EBITDA ratio ended at 0.5
times.
- During the quarter, the Company purchased from lessors two
Boeing 737-800 NG aircraft, which were part of its current
fleet as operating leases.
- The Company ended the quarter with a consolidated fleet of 106
aircraft – 67 Boeing 737-800s, 29 Boeing 737 MAX 9s, 9 Boeing
737-700s, and 1 Boeing 737-800 freighter.
- During the first quarter, Cirium recognized Copa Airlines
as the carrier with the highest on-time performance in Latin America. In fact, Copa Airlines' on-time
performance averaging above 90% for the quarter was the highest
amongst all airlines in the Americas and one of the highest in the
world.
Subsequent Events
- In April, the Company signed a confidential resolution with
Boeing to cover the impact of the partial grounding of its Boeing
737 MAX 9 fleet in January. The value will be amortized through the
depreciation and amortization line of our Income Statement.
- In May, the Company took delivery of two Boeing 737 MAX 9
aircraft, increasing its total fleet to 108 aircraft.
- Copa Holdings will make its second dividend payment of the year
of US$1.61 per share on June 14, 2024, to all Class A and Class B
shareholders on record as of May 31,
2024.
|
Consolidated
Financial
& Operating
Highlights
|
1Q24
|
1Q23
|
Variance vs.
1Q23
|
4Q23
|
Variance vs.
4Q23
|
|
Revenue Passengers
Carried (000s)
|
3,272
|
2,881
|
13.6 %
|
3,310
|
(1.1) %
|
|
Revenue Passengers
OnBoard (000s)
|
4,790
|
4,295
|
11.5 %
|
4,930
|
(2.8) %
|
|
RPMs
(millions)
|
6,127
|
5,723
|
7.1 %
|
6,263
|
(2.2) %
|
|
ASMs
(millions)
|
7,121
|
6,596
|
8.0 %
|
7,228
|
(1.5) %
|
|
Load Factor
|
86.0 %
|
86.8 %
|
-0.7 p.p
|
86.7 %
|
-0.6 p.p
|
|
Yield (US$
Cents)
|
14.0
|
14.6
|
(3.8) %
|
14.0
|
0.3 %
|
|
PRASM (US$
Cents)
|
12.1
|
12.6
|
(4.6) %
|
12.1
|
(0.4) %
|
|
RASM (US$
Cents)
|
12.5
|
13.1
|
(4.6) %
|
12.6
|
(0.7) %
|
|
CASM (US$
Cents)
|
9.5
|
10.2
|
(6.9) %
|
9.7
|
(1.6) %
|
|
CASM Excl. Fuel (US$
Cents)
|
6.1
|
6.2
|
(2.0) %
|
6.0
|
1.0 %
|
|
Fuel Gallons Consumed
(millions)
|
84.4
|
78.2
|
7.9 %
|
85.6
|
(1.5) %
|
|
Avg. Price Per Fuel
Gallon (US$)
|
2.90
|
3.36
|
(13.9) %
|
3.08
|
(5.8) %
|
|
Average Length of Haul
(miles)
|
1,873
|
1,987
|
(5.8) %
|
1,892
|
(1.0) %
|
|
Average Stage Length
(miles)
|
1,246
|
1,281
|
(2.8) %
|
1,229
|
1.4 %
|
|
Departures
|
35,220
|
31,984
|
10.1 %
|
36,207
|
(2.7) %
|
|
Block Hours
|
112,164
|
104,626
|
7.2 %
|
115,118
|
(2.6) %
|
|
Average Aircraft
Utilization (hours)
|
11.6
|
11.9
|
(2.1) %
|
11.9
|
(2.6) %
|
|
Operating Revenues (US$
millions)
|
893.5
|
867.3
|
3.0 %
|
912.8
|
(2.1) %
|
|
Operating Profit (Loss)
(US$ millions)
|
216.0
|
193.2
|
11.8 %
|
214.3
|
0.8 %
|
|
Operating
Margin
|
24.2 %
|
22.3 %
|
1.9 p.p
|
23.5 %
|
0.7 p.p
|
|
Net Profit (Loss) (US$
millions)
|
176.1
|
121.5
|
44.9 %
|
187.7
|
(6.2) %
|
|
Adjusted Net Profit
(Loss) (US$ millions)(1)
|
176.1
|
157.8
|
11.6 %
|
184.3
|
(4.5) %
|
|
Basic EPS
(US$)
|
4.19
|
3.07
|
36.3 %
|
4.45
|
(6.0) %
|
|
Adjusted Basic EPS
(US$) (1)
|
4.19
|
3.99
|
5.0 %
|
4.37
|
(4.3) %
|
|
Shares for calculation
of Basic EPS (000s)
|
42,052
|
39,565
|
6.3 %
|
42,150
|
(0.2) %
|
(1) Excludes Special Items. This earnings
release includes a reconciliation of non-IFRS financial measures to
the comparable IFRS measures.
FULL 1Q24 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
1Q24 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
|
Date:
|
May 16, 2024
|
|
|
|
Time:
|
11:00 AM US ET (11:00
AM Local Time)
|
|
|
|
Join by
phone:
|
https://register.vevent.com/register/BIeac58d3f3e4f4841995aa07d6c718112
|
|
|
|
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
|
|
%
|
Audited
|
|
%
|
|
|
1Q24
|
|
1Q23
|
|
Change
|
4Q23
|
|
Change
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
858,725
|
|
834,018
|
|
3.0 %
|
875,257
|
|
(1.9 %)
|
|
Cargo and mail
revenue
|
|
21,910
|
|
23,252
|
|
(5.8 %)
|
26,534
|
|
(17.4 %)
|
|
Other operating
revenue
|
|
12,831
|
|
9,995
|
|
28.4 %
|
11,049
|
|
16.1 %
|
|
Total Operating
Revenue
|
|
893,467
|
|
867,264
|
|
3.0 %
|
912,840
|
|
(2.1 %)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
245,352
|
|
265,498
|
|
(7.6 %)
|
264,166
|
|
(7.1 %)
|
|
Wages, salaries,
benefits and other employees' expenses
|
|
114,314
|
|
102,652
|
|
11.4 %
|
119,669
|
|
(4.5 %)
|
|
Passenger
servicing
|
|
29,684
|
|
20,391
|
|
45.6 %
|
24,148
|
|
22.9 %
|
|
Airport facilities and
handling charges
|
|
60,347
|
|
50,479
|
|
19.5 %
|
59,010
|
|
2.3 %
|
|
Sales and
distribution
|
|
55,494
|
|
61,406
|
|
(9.6 %)
|
55,111
|
|
0.7 %
|
|
Maintenance, materials
and repairs
|
|
25,627
|
|
40,296
|
|
(36.4 %)
|
31,276
|
|
(18.1 %)
|
|
Depreciation and
amortization
|
|
83,365
|
|
72,677
|
|
14.7 %
|
80,261
|
|
3.9 %
|
|
Flight
operations
|
|
31,029
|
|
27,424
|
|
13.1 %
|
27,987
|
|
10.9 %
|
|
Other operating and
administrative expenses
|
|
32,270
|
|
33,228
|
|
(2.9 %)
|
36,875
|
|
(12.5 %)
|
|
Total Operating
Expense
|
|
677,482
|
|
674,053
|
|
0.5 %
|
698,504
|
|
(3.0 %)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit/(Loss)
|
|
215,985
|
|
193,212
|
|
11.8 %
|
214,335
|
|
0.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
Finance cost
|
|
(18,840)
|
|
(24,365)
|
|
(22.7 %)
|
(20,408)
|
|
(7.7 %)
|
|
Finance
income
|
|
13,746
|
|
8,842
|
|
55.5 %
|
14,289
|
|
(3.8 %)
|
|
Gain (loss) on foreign
currency fluctuations
|
|
(3,914)
|
|
1,201
|
|
(425.8 %)
|
(272)
|
|
1339.3 %
|
|
Net change in fair
value of derivatives
|
|
(8)
|
|
(37,933)
|
|
(100.0 %)
|
—
|
|
— %
|
|
Other non-operating
income (expense)
|
|
(112)
|
|
1,235
|
|
(109.1 %)
|
3,126
|
|
(103.6 %)
|
|
Total Non-Operating
Income/(Expense)
|
|
(9,127)
|
|
(51,020)
|
|
(82.1 %)
|
(3,264)
|
|
179.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Profit before
taxes
|
|
206,858
|
|
142,192
|
|
45.5 %
|
211,071
|
|
(2.0 %)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(30,792)
|
|
(20,671)
|
|
49.0 %
|
(23,378)
|
|
31.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit/(Loss)
|
|
176,066
|
|
121,521
|
|
44.9 %
|
187,693
|
|
(6.2 %)
|
Copa Holdings, S. A. and Subsidiaries
Consolidated
statement of financial position
(In US$
thousands)
|
|
March
2024
|
|
December
2023
|
|
ASSETS
|
|
(Unaudited)
|
|
(Audited)
|
|
Cash and cash
equivalents
|
|
170,525
|
|
206,375
|
|
Short-term
investments
|
|
630,640
|
|
708,809
|
|
Total cash, cash
equivalents and short-term investments
|
|
801,165
|
|
915,184
|
|
Accounts receivable,
net
|
|
192,486
|
|
156,720
|
|
Accounts receivable
from related parties
|
|
2,433
|
|
2,527
|
|
Expendable parts and
supplies, net
|
|
116,919
|
|
116,604
|
|
Prepaid
expenses
|
|
55,495
|
|
44,635
|
|
Prepaid income
tax
|
|
88
|
|
66
|
|
Other current
assets
|
|
32,548
|
|
32,227
|
|
|
399,968
|
|
352,780
|
|
TOTAL CURRENT
ASSETS
|
|
1,201,133
|
|
1,267,963
|
|
Long-term
investments
|
|
301,192
|
|
258,934
|
|
Long-term prepaid
expenses
|
|
9,471
|
|
9,633
|
|
Property and
equipment, net
|
|
3,286,848
|
|
3,238,632
|
|
Right of use
assets
|
|
259,283
|
|
281,146
|
|
Intangible,
net
|
|
88,312
|
|
87,986
|
|
Net defined benefit
assets
|
|
5,373
|
|
5,346
|
|
Deferred tax
assets
|
|
20,999
|
|
30,148
|
|
Other Non-Current
Assets
|
|
16,722
|
|
17,048
|
|
TOTAL NON-CURRENT
ASSETS
|
|
3,988,199
|
|
3,928,872
|
|
TOTAL
ASSETS
|
|
5,189,332
|
|
5,196,836
|
|
LIABILITIES
|
|
|
|
|
|
Loans and
borrowings
|
|
233,110
|
|
222,430
|
|
Current portion of
lease liability
|
|
64,465
|
|
68,304
|
|
Accounts
payable
|
|
204,237
|
|
182,303
|
|
Accounts payable to
related parties
|
|
1,658
|
|
1,228
|
|
Air traffic
liability
|
|
579,476
|
|
611,856
|
|
Frequent flyer
deferred revenue
|
|
132,132
|
|
124,815
|
|
Taxes
Payable
|
|
53,565
|
|
44,210
|
|
Accrued expenses
payable
|
|
34,214
|
|
64,940
|
|
Income tax
payable
|
|
16,365
|
|
26,741
|
|
Other Current
Liabilities
|
|
1,468
|
|
1,403
|
|
TOTAL CURRENT
LIABILITIES
|
|
1,320,689
|
|
1,348,229
|
|
|
|
|
|
|
Loans and borrowings
long-term
|
|
1,198,017
|
|
1,240,261
|
|
Lease
Liability
|
|
198,387
|
|
215,353
|
|
Deferred tax
Liabilities
|
|
45,742
|
|
36,369
|
|
Other long - term
liabilities
|
|
235,014
|
|
234,474
|
|
TOTAL NON-CURRENT
LIABILITIES
|
|
1,677,161
|
|
1,726,457
|
|
TOTAL
LIABILITIES
|
|
2,997,850
|
|
3,074,685
|
|
EQUITY
|
|
|
|
|
|
Class A - 34,143,485
issued and 30,748,862 outstanding
|
|
23,238
|
|
23,201
|
|
Class B -
10,938,125
|
|
7,466
|
|
7,466
|
|
Additional Paid-In
Capital
|
|
210,157
|
|
209,102
|
|
Treasury
Stock
|
|
(244,311)
|
|
(204,130)
|
|
Retained
Earnings
|
|
2,028,194
|
|
1,581,739
|
|
Net profit
|
|
176,066
|
|
514,098
|
|
Other comprehensive
loss
|
|
(9,326)
|
|
(9,326)
|
|
TOTAL
EQUITY
|
|
2,191,483
|
|
2,122,150
|
|
TOTAL EQUITY
LIABILITIES
|
|
5,189,332
|
|
5,196,836
|
Copa Holdings, S. A. and Subsidiaries
Consolidated
statement of cash flows
For the three months
ended
(In US$ thousands)
|
2024
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Audited)
|
|
(Audited)
|
|
Cash flow from
operating activities
|
200,998
|
|
203,419
|
|
169,336
|
|
Cash flow used in
investing activities
|
(78,334)
|
|
(62,868)
|
|
(120,515)
|
|
Cash flow used in
financing activities
|
(158,514)
|
|
(20,661)
|
|
(10,888)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(35,850)
|
|
119,890
|
|
37,933
|
|
Cash and cash
equivalents at January 1
|
206,375
|
|
122,424
|
|
211,081
|
|
Cash and cash
equivalents at March 31
|
$
170,525
|
|
$
242,314
|
|
$
249,014
|
|
|
|
|
|
|
|
Short-term
investments
|
630,640
|
|
773,493
|
|
771,074
|
|
Long-term
investments
|
301,192
|
|
166,481
|
|
204,810
|
|
Total cash and cash
equivalents and investments at March 31
|
$
1,102,357
|
|
$
1,182,288
|
|
$
1,224,898
|
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:
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Reconciliation of
Adjusted Net Profit
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1Q24
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1Q23
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4Q23
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Net Profit as
Reported
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$ 176,066
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$ 121,521
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$
187,693
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Net change in fair
value of derivatives
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$
—
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$
37,933
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$
—
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Net change in fair
value of financial investments
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$
—
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$
(1,655)
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$
(3,372)
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Adjusted Net
Profit
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$
176,066
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$
157,799
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$
184,321
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Reconciliation of
Adjusted Basic EPS
|
1Q24
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1Q23
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4Q23
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Adjusted Net
Profit
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$ 176,066
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$ 157,799
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$
184,321
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Shares used for
calculation of Basic EPS
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42,052
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39,565
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42,150
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Adjusted Basic
Earnings per share (Adjusted Basic EPS)
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$
4.19
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$
3.99
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$
4.37
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Reconciliation of
Operating Costs per ASM
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Excluding Fuel (CASM
Excl. Fuel)
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1Q24
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1Q23
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4Q23
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Operating Costs per ASM
as Reported (in US$ Cents)
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9.5
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10.2
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9.7
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Aircraft Fuel Cost per
ASM (in US$ Cents)
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3.4
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4.0
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3.7
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Operating Costs per
ASM excluding fuel (in US$ Cents)
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6.1
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6.2
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6.0
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View original
content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-first-quarter-of-2024-302146845.html
SOURCE Copa Holdings, S.A.