Summary of Copa Holdings' April 2025 Traffic Statistics Core Insights - Copa Holdings reported a 5.2% increase in capacity (Available Seat Miles, ASMs) and a 5.5% increase in system-wide passenger traffic (Revenue Passenger Miles, RPMs) for April 2025 compared to April 2024, resulting in a load factor of 86.8%, which is 0.2 percentage points higher than the previous year [1][2]. Group 1: Traffic and Capacity Metrics - The total Available Seat Miles (ASMs) for April 2025 reached 2,546.6 million, up from 2,421.1 million in April 2024, reflecting a 5.2% increase [1]. - Revenue Passenger Miles (RPMs) for April 2025 were 2,209.7 million, compared to 2,095.5 million in April 2024, marking a 5.5% increase [2]. - The load factor for April 2025 was 86.8%, which is an increase of 0.2 percentage points from 86.6% in April 2024 [2]. Group 2: Company Overview - Copa Holdings is recognized as a leading provider of passenger and cargo services in Latin America, operating across North, Central, and South America, as well as the Caribbean [3].

Core Viewpoint - Copa Holdings (CPA) reported strong first-quarter 2025 earnings, with earnings per share of $4.28 exceeding estimates and showing a year-over-year improvement of 2.2% [1]. Financial Performance - Revenues reached $899.2 million, surpassing the Zacks Consensus Estimate of $889.5 million, and increased by 0.6% year over year, driven by an 8.7% rise in onboard passengers [1]. - Passenger revenues, which accounted for 95.6% of total revenues, remained flat year over year at $859 million, impacted by a 9.1% decrease in yield [1]. - Cargo and mail revenues improved by 17.3% year over year to $25.7 million, while other operating revenues grew by 12.7% to $14.5 million due to increased Connect Miles revenues from non-air partners [2]. Operational Metrics - Traffic, measured in revenue passenger miles, grew by 10.1%, and capacity, measured in available seat miles, increased by 9.5% year over year, resulting in a load factor of 86.4%, up 0.4 percentage points [3]. - Passenger revenue per available seat mile decreased by 8.7% to 11 cents, while revenue per available seat mile (RASM) fell by 8.1% to 11.5 cents [4]. Cost and Expenses - Total operating expenses rose by 1.2% year over year to $685.4 million, with notable increases in maintenance, materials, and repairs by 53.9% [5]. - The average fuel price per gallon decreased by 12.4% year over year to $2.54 [4]. Financial Position - At the end of the first quarter, Copa Holdings had cash and cash equivalents of $164.8 million, down from $613.3 million at the end of 2024, with total debt, including lease liabilities, at $1.9 billion [6]. Fleet and Future Outlook - The company exercised options for six additional Boeing 737 MAX-8 aircraft, expected to be delivered in 2028, ending the quarter with a consolidated fleet of 112 aircraft [7]. - For 2025, management anticipates a consolidated capacity growth of 7-8% and an operating margin of 21-23%, with expectations of low fuel costs and a load factor of 86.5% [8].

Copa Holdings (CPA) closed the last trading session at $100.68, gaining 19% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $150.45 indicates a 49.4% upside potential.The mean estimate comprises 11 short-term price targets with a standard deviation of $20.25. While the lowest estimate of $120 indicates a 19.2% increase from the current price level, the most optimistic analyst expec ...

Copa Holdings First-Quarter 2025 Financial Results [1Q25 Key Highlights](index=1&type=section&id=1Q25%20Key%20Highlights) The company reported a $176.8 million net profit, strong operational performance, and maintained a robust financial position with $1.3 billion in cash | Metric | 1Q25 Value | Change vs. 1Q24 | | :--- | :--- | :--- | | Net Profit | US$176.8 million | +US$0.7 million | | Earnings Per Share (EPS) | US$4.28 | +US$0.09 | | Operating Profit | US$213.8 million | -1.0% | | Operating Margin | 23.8% | -0.4 p.p. | | Capacity (ASMs) | Increased by 9.5% | - | | Revenue per ASM (RASM) | 11.5 cents | -8.1% | | Cost per ASM excl. Fuel (Ex-fuel CASM) | 5.8 cents | -4.3% | - The company ended the quarter with a strong liquidity position of approximately **US$1.3 billion** in cash and investments, representing **39% of the last twelve months' revenues**[2](index=2&type=chunk) - The Board of Directors ratified a second dividend payment for the year of **US$1.61 per share**, payable on June 13, 2025[1](index=1&type=chunk) - The consolidated fleet comprised **112 aircraft** at the end of the quarter, and the company increased its firm order book to **57 aircraft** by exercising options for six additional Boeing 737 MAX-8s[2](index=2&type=chunk) [Consolidated Operating and Financial Statistics](index=2&type=section&id=Consolidated%20Operating%20and%20Financial%20Statistics) The company increased capacity and traffic, but experienced declines in passenger yield and unit revenues despite lower fuel costs | Operating Metric | 1Q25 | 1Q24 | % Change | | :--- | :--- | :--- | :--- | | ASMs (millions) | 7,801 | 7,121 | 9.5% | | RPMs (millions) | 6,743 | 6,127 | 10.1% | | Load Factor | 86.4% | 86.0% | +0.4 p.p. | | Yield (US$ Cents) | 12.7 | 14.0 | (9.1)% | | RASM (US$ Cents) | 11.5 | 12.5 | (8.1)% | | CASM (US$ Cents) | 8.8 | 9.5 | (7.7)% | | CASM Excl. Fuel (US$ Cents) | 5.8 | 6.1 | (4.3)% | | Avg. Price Per Fuel Gallon (US$) | 2.54 | 2.90 | (12.4)% | [Management's Comments on 1Q25 Results](index=3&type=section&id=Management's%20comments%20on%201Q25%20results) Management attributed the strong 23.8% operating margin to a resilient business model focused on low costs and operational excellence - The company achieved a strong **23.8% operating margin**, demonstrating the resilience of its business model in a lower passenger yield environment[4](index=4&type=chunk) - Passenger yields **decreased by 9.1%** compared to 1Q24, primarily due to increased industry capacity and unfavorable currency fluctuations[7](index=7&type=chunk) - Operating expenses **increased by only 1.2%** despite a 9.5% capacity growth, thanks to lower fuel prices and reduced sales costs[8](index=8&type=chunk) - The company's strategy is built on its **Hub of the Americas®** in Panama, low unit costs, leading on-time performance, and a strong balance sheet[12](index=12&type=chunk) Outlook for 2025 [2025 Full-Year Guidance](index=4&type=section&id=2025%20Full-Year%20Guidance) The company raised its full-year 2025 operating margin guidance to 21-23%, driven by lower expected fuel costs | Financial Outlook | 2025 Guidance | 2024 Actual | | :--- | :--- | :--- | | Capacity – YOY ASM growth | 7-8% | 8.6% | | Operating Margin | 21-23% | 21.9% | - The 2025 outlook is based on the following assumptions: load factor of **~86.5%**, unit revenues (RASM) of **~11.2 cents**, unit costs excluding fuel (Ex-Fuel CASM) of **~5.8 cents**, and an all-in fuel price of **$2.40 per gallon**[14](index=14&type=chunk) Detailed Consolidated First-Quarter Results [Operating Revenue Breakdown](index=6&type=section&id=Operating%20Revenue%20Breakdown) Total operating revenue grew slightly to $899.2 million, with flat passenger revenue offset by strong growth in cargo and other revenue | Revenue Component | 1Q25 (US$ millions) | Change vs. 1Q24 | | :--- | :--- | :--- | | Passenger Revenue | 859.0 | +0.0% | | Cargo and Mail Revenue | 25.7 | +17.3% | | Other Operating Revenue | 14.5 | +12.7% | | **Total Operating Revenue** | **899.2** | **+0.6%** | [Operating Expenses Breakdown](index=6&type=section&id=Operating%20Expenses%20Breakdown) Consolidated operating expenses rose 1.2% to $685.4 million, with lower fuel costs offsetting a significant increase in maintenance expenses - Fuel costs **decreased 5.4%** to $232.2 million, driven by a 12.4% lower effective fuel price[19](index=19&type=chunk) - Sales and distribution costs **fell 9.4%** to $50.3 million, attributed to higher penetration of direct sales and lower-cost NDC travel agency channels[21](index=21&type=chunk) - Maintenance, materials, and repairs expense **increased by 53.9%** to $39.4 million, largely due to adjustments on return condition provisions for purchased leased aircraft[22](index=22&type=chunk) - Passenger servicing costs **decreased 15.7%** to $25.0 million, mainly because 1Q24 included one-time expenses related to the MAX-9 fleet grounding[20](index=20&type=chunk) [Non-operating Income (Expense)](index=7&type=section&id=Non-operating%20Income%20(Expense)) The company recorded a net non-operating expense of $7.1 million, primarily from finance costs partially offset by finance income | Non-operating Item | 1Q25 (US$ millions) | | :--- | :--- | | Finance cost | (23.2) | | Finance income | 15.8 | | Gain (loss) on foreign currency fluctuations | 1.4 | | Net change in fair value of derivatives | (2.4) | | Other non-operating income (expense) | 1.4 | | **Total Non-Operating Expense** | **(7.1)** | Financial Statements [Consolidated Statement of Profit or Loss (Income Statement)](index=8&type=section&id=Consolidated%20statement%20of%20profit%20or%20loss) The company reported a net profit of $176.8 million on revenues of $899.2 million for Q1 2025, a slight increase from the prior year | (In US$ thousands) | 1Q25 | 1Q24 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 899,181 | 893,467 | 0.6% | | Total Operating Expense | 685,360 | 677,482 | 1.2% | | **Operating Profit** | **213,822** | **215,985** | **(1.0)%** | | Profit before taxes | 206,744 | 206,858 | (0.1)% | | **Net Profit** | **176,766** | **176,066** | **0.4%** | [Consolidated Statement of Financial Position (Balance Sheet)](index=10&type=section&id=Consolidated%20statement%20of%20financial%20position) Total assets remained stable at $5.75 billion, while total equity increased to $2.48 billion as of March 31, 2025 | (In US$ thousands) | March 2025 | December 2024 | | :--- | :--- | :--- | | **Total Assets** | **5,747,808** | **5,742,289** | | Total Current Assets | 1,321,625 | 1,576,879 | | Property and equipment, net | 3,564,026 | 3,458,261 | | **Total Liabilities** | **3,266,426** | **3,369,544** | | Total Current Liabilities | 1,341,097 | 1,427,895 | | Loans and borrowings (long-term) | 1,390,774 | 1,415,953 | | **Total Equity** | **2,481,382** | **2,372,745** | [Consolidated Statement of Cash Flows](index=12&type=section&id=Consolidated%20statement%20of%20cash%20flows) The company generated $205.5 million in operating cash flow, but a net decrease in cash resulted from investing and financing activities | For the three months ended March 31, 2025 (In US$ thousands) | Amount | | :--- | :--- | | Cash flow from operating activities | 205,477 | | Cash flow (used in) investing activities | (518,052) | | Cash flow (used in) financing activities | (135,918) | | **Net decrease in cash and cash equivalents** | **(448,493)** | | Cash and cash equivalents at March 31 | 164,820 | | **Total cash, cash equivalents and investments at March 31** | **1,342,166** | Non-IFRS Financial Measure Reconciliation [Reconciliation of CASM Excluding Fuel](index=14&type=section&id=Reconciliation%20of%20CASM%20Excluding%20Fuel) This section reconciles the non-IFRS measure CASM Excl. Fuel (5.8 cents) to the reported IFRS CASM (8.8 cents) for Q1 2025 | (in US$ Cents) | 1Q25 | 1Q24 | | :--- | :--- | :--- | | Operating Costs per ASM as Reported (CASM) | 8.8 | 9.5 | | Less: Aircraft Fuel Cost per ASM | 3.0 | 3.4 | | **Operating Costs per ASM excluding fuel (CASM Excl. Fuel)** | **5.8** | **6.1** |

Financial Data and Key Metrics Changes - The company reported a net profit of $176.8 million or $4.28 per share, representing a net margin of 19.7% [12] - Operating profit for the quarter was $213.8 million with an operating margin of 23.8% [12] - Capacity increased by 9.5% year over year, with adjusted capacity growth of 4.6% when accounting for the MAX 9 grounding in Q1 2024 [8] - Passenger traffic grew by 10.1% compared to Q1 2024, leading to a load factor increase of 0.4 percentage points to 86.4% [9] - Unit revenues (RASM) decreased by 8.1% to $0.015, primarily due to a 9.1% decrease in passenger yields [9] - Unit costs excluding fuel (CASM Ex) decreased by 4.3% to $0.58, driven by lower sales and distribution expenses [10] Business Line Data and Key Metrics Changes - Copa Airlines announced service to three new cities: San Diego, California, starting in June, and Salta and Tucuman in Argentina starting in September [10] - Wingo added one new domestic route in Colombia and is set to receive additional aircraft to expand its fleet [11] Market Data and Key Metrics Changes - The company noted that the competitive capacity in the region is increasing, with overall industry capacity expected to grow by approximately 6% in Q2 and close to 10% in Q3 [20] - Demand in South America is generally stable, with Brazil showing yield weakness due to currency issues, while North America and the Caribbean are performing adequately [41] Company Strategy and Development Direction - The company is focused on maintaining low ex-fuel unit costs, on-time performance, and expanding its hub in Panama to achieve industry-leading margins [7] - The 2025 operating margin guidance has been increased to a range of 21% to 23%, supported by lower fuel costs and steady passenger demand [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust business model and the ability to navigate economic uncertainties, with healthy passenger booking trends observed [16] - The company remains cautious about the economic environment but believes it is well-positioned to deliver strong results [16] Other Important Information - The company ended the quarter with over $1.3 billion in cash and investments, representing 39% of the last twelve months' revenues [13] - A second dividend payment of $1.61 per share is scheduled for June 13, 2025 [15] Q&A Session Summary Question: Changes in demand environment and regional differences - Management has not seen any material changes in demand recently, maintaining steady demand visibility for the next two to three months [18][19] Question: Competitive capacity pressures - Industry capacity is expected to grow, with some competitors expanding at a faster rate, but overall trends remain stable [20] Question: Distribution cost savings and initiatives - The company is still realizing savings from distribution costs and is looking for additional initiatives to enhance efficiency [28][30] Question: Fleet utilization and growth outlook - Current fleet utilization is around twelve hours, with expectations for growth to be more pronounced in 2026 [32] Question: Breakdown of demand by segment - Business travel accounts for about 20%, leisure for 45%, with the remainder being VFR [39] Question: Impact of competitive capacity in Mexico - The company is experiencing weakness in Mexico due to competitive capacity, but the new agreement with Volaris is expected to help mitigate this [75] Question: Flexibility to reduce capacity if needed - The company has significant flexibility with unencumbered aircraft and a diversified network to adjust capacity as needed [51][53] Question: Dividend payout ratio and share repurchase plans - The current dividend payout ratio is around 44% of last year's net income, with a buyback plan of $200 million still in place [62] Question: Assumptions for 2025 and pricing strategy - Management remains cautious but confident in maintaining pricing despite potential market slowdowns, with a focus on capacity management [68][72] Question: Vacation packages and their contribution - The company does not have a specific vacation package focus but works with wholesalers to manage vacation-related travel [94]

Copa Holdings (CPA) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to Copasor Holdings First Quarter Earnings Call. During the presentation, all participants will be in listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this call is being webcast and recorded on 05/08/2025. Now I'll turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin. Speaker1 Thank you, Ma ...

Copa Holdings (CPA) reported $899.18 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 0.6%. EPS of $4.28 for the same period compares to $4.19 a year ago.The reported revenue represents a surprise of +1.09% over the Zacks Consensus Estimate of $889.5 million. With the consensus EPS estimate being $3.77, the EPS surprise was +13.53%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Copa Holdings (CPA) came out with quarterly earnings of $4.28 per share, beating the Zacks Consensus Estimate of $3.77 per share. This compares to earnings of $4.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.53%. A quarter ago, it was expected that this holding company for Panama's national airline would post earnings of $3.84 per share when it actually produced earnings of $3.99, delivering a surprise of 3.91%.Over th ...

Core Viewpoint Copa Holdings reported its financial results for the first quarter of 2025, showing a slight increase in net profit and a decrease in operating margin, while maintaining a strong cash position and operational performance. Financial Performance - Net profit for 1Q25 was US$176.8 million, or US$4.28 per share, reflecting a US$0.7 million increase compared to 1Q24 [3][4] - Operating profit was US$213.8 million with an operating margin of 23.8%, down 1.0% and 0.4 percentage points respectively from 1Q24 [3][4] - Operating revenues totaled US$899.2 million, a 0.6% increase from 1Q24 [2][8] Operational Metrics - Revenue passengers carried increased by 7.4% year-over-year to 3,512,000 [2] - Revenue passenger miles (RPMs) rose by 10.1% to 6,743 million [2] - Load factor improved to 86.4%, up 0.4 percentage points from 1Q24 [2] Cost and Efficiency - Operating cost per available seat mile (CASM) decreased by 7.7% to 8.8 cents, while CASM excluding fuel fell by 4.3% to 5.8 cents [3][9] - Average price per fuel gallon dropped by 12.4% to US$2.54 [2] Cash and Debt Position - The company ended the quarter with approximately US$1.3 billion in cash and investments, representing 39% of the last twelve months' revenues [3] - Total debt, including lease liabilities, stood at US$1.9 billion, with an Adjusted Net Debt to EBITDA ratio of 0.5 times [3] Fleet and Future Plans - Copa Holdings has a consolidated fleet of 112 aircraft and has exercised options for six additional Boeing 737 MAX-8 aircraft, increasing its firm order book to 57 aircraft [3][4] - The company achieved an on-time performance of 90.8% and a flight completion factor of 99.9% [3]

Core Insights - Copa Holdings has demonstrated strong financial performance, with revenues exceeding $800 million in every quarter since Q3 2022 [1] - The company has averaged nearly $4 in earnings per share over this period, indicating consistent profitability [1] Financial Performance - Revenues have consistently surpassed $800 million quarterly, showcasing robust operational strength [1] - Earnings per share have averaged close to $4, reflecting solid earnings generation capabilities [1]