Copa Holdings(US:CPA)2025-08-07 22:18Financial Performance - Net profit for 2Q25 was US$148.9 million, or US$3.61 per share, reflecting a 25.2% increase in earnings per share compared to 2Q24[3] - Operating income for the quarter was US$176.6 million, a 10.7% increase from US$159.5 million in 2Q24[9] - Operating profit for Q2 2025 was US$176.6 million, a 10.7% increase compared to Q2 2024[21] - Net profit for Q2 2025 reached US$148.9 million, a 23.8% increase from Q2 2024[21] - Basic Earnings Per Share (EPS) for Q2 2025 was US$3.61, a 25.3% increase compared to Q2 2024[21] Revenue and Expenses - Operating revenues reached US$842.6 million, a 2.8% increase year-over-year, with a load factor of 87.3%, up 0.5 percentage points[6] - Consolidated operating revenue for Q2 2025 totaled US$842.6 million, a 2.8% increase from Q2 2024[19] - Passenger revenue increased by US$15.8 million or 2.0% year-over-year to US$797.3 million, driven by a 6.4% increase in revenue passenger miles (RPMs)[19] - Cargo and mail revenue rose to US$28.3 million, a 12.4% increase compared to Q2 2024, due to higher cargo volumes[20] - Total operating expenses for Q2 2025 were US$666.0 million, a 0.9% increase from Q2 2024, primarily due to higher maintenance and repair costs[21] - Fuel expenses decreased by US$31.9 million or 13.0% year-over-year to US$214.1 million, attributed to a 17.0% lower effective fuel price[21] Cash Flow and Investments - The company ended the quarter with approximately US$1.4 billion in cash and investments, representing 39% of the last twelve months' revenues[3] - Net cash flow from operating activities for the first half of 2025 was $484,282 thousand, an increase from $470,777 thousand in the same period of 2024[31] - Cash flow used in investing activities increased significantly to $733,297 thousand in 2025 from $258,696 thousand in 2024, primarily due to higher acquisition of investments and aircraft[31] - Total cash and cash equivalents and investments as of June 30, 2025, reached $1,368,640 thousand, up from $1,207,254 thousand in 2024[31] - Cash and cash equivalents as of June 30, 2025, were $236,171 thousand, a decrease from $613,313 thousand at the beginning of the year[31] - The company reported a net decrease in cash and cash equivalents of $377,142 thousand for the first half of 2025, compared to a minor decrease of $5,739 thousand in 2024[31] - Dividends paid in the first half of 2025 were $133,027 thousand, slightly down from $134,756 thousand in the same period of 2024[31] - The company’s long-term investments increased to $368,332 thousand in 2025 from $258,379 thousand in 2024, reflecting a strategic focus on long-term growth[31] Operational Metrics - Copa Airlines achieved an on-time performance of 91.5% and a flight completion factor of 99.8% for the quarter[3] - The company took delivery of three Boeing 737 MAX 8 aircraft, ending the quarter with a consolidated fleet of 115 aircraft[3] - Copa Holdings reported a decrease in passenger revenues per available seat mile (PRASM) by 3.6% to 10.1 cents, alongside a decline in passenger yields of 4.1%[6] - Operating costs per available seat mile (ASM) excluding fuel for Q2 2025 was reported at 5.8 cents, consistent with Q1 2025 and YTD 2025, while down from 5.8 cents in Q2 2024[33] - Aircraft fuel cost per ASM decreased to 2.7 cents in Q2 2025 from 3.3 cents in Q2 2024, indicating improved fuel efficiency[33] Balance Sheet - Adjusted Net Debt to EBITDA ratio stood at 0.6 times, maintaining a strong balance sheet[9] - Total assets as of June 2025 were US$6.0 billion, an increase from US$5.7 billion in December 2024[29] - Total equity increased to US$2.56 billion in June 2025, up from US$2.37 billion in December 2024[29] - Proceeds from new borrowings increased to $165,000 thousand in the first half of 2025 compared to $108,000 thousand in 2024[31]