Copa Holdings(CPA) - 2025 Q3 - Quarterly Report

Financial Performance - Net profit for 3Q25 was US$173.4 million, or US$4.20 per share, representing year-over-year increases of 18.7% and 20.1% respectively compared to 3Q24[3]. - Total operating revenue reached US$913.1 million, a 6.8% increase year-over-year, driven by a 5.2% rise in passenger revenue and a 21.4% increase in cargo and mail revenue[5][16]. - The company ended the quarter with approximately US$1.3 billion in cash and investments, representing 38% of the last twelve months' revenues[7]. - The adjusted net debt to EBITDA ratio was 0.7 times at the end of 3Q25[7]. - Net cash flow from operating activities for the nine months ended September 2025 was US$751.5 million, compared to US$659.4 million in 2024[27]. Operating Metrics - Operating margin improved to 23.2%, and net margin increased to 19.0%, up 2.9 and 1.9 percentage points year-over-year[3]. - Load factor rose by 1.8 percentage points to 88.0%, with capacity (ASM) increasing by 5.8% compared to 3Q24[3]. - The company reaffirmed its full-year guidance, narrowing the operating margin range to 22% to 23% with expected capacity growth of approximately 8%[9][10]. - For 2026, the company anticipates an 11% to 13% increase in capacity compared to 2025, with projected unit costs excluding fuel in the range of 5.7 to 5.8 cents[11]. Cost Management - Operating cost per available seat mile (CASM) decreased by 2.7% to 8.5 cents, while CASM excluding fuel fell by 0.8% to 5.6 cents[6]. - Employee expenses totaled US$124.3 million, up 5.4%, reflecting additional operational staff to support capacity growth[19]. - Passenger servicing costs reached US$27.5 million, a 4.8% increase, driven by a 9.8% rise in onboard passengers[19]. - Airport facilities and handling charges increased to US$70.7 million, an 8.8% year-over-year rise, mainly due to increased departures[19]. - Maintenance, materials, and repairs costs decreased by 30.8% to US$24.1 million, reflecting a realized gain from engine exchange transactions[20]. - Depreciation and amortization totaled US$93.0 million, up 12.4%, due to higher amortization of aircraft and maintenance events[21]. - Flight operations costs increased to US$36.3 million, a 13.9% year-over-year increase, driven by increased block hours[22]. Non-Operating Income - Consolidated non-operating income resulted in a net expense of US$(9.6) million in 3Q25, with finance costs totaling US$(24.4) million[23]. Asset Management - Total assets as of September 2025 were US$6.278 billion, up from US$5.742 billion in December 2024[25].