Core Insights - Copa Holdings, S.A. (CPA) reported strong second-quarter 2025 results, with both earnings and revenues exceeding the Zacks Consensus Estimate, leading to a 7.7% increase in stock price since the earnings release on August 6 [1] Financial Performance - Quarterly earnings per share were $3.61, surpassing the Zacks Consensus Estimate of $3.25 and reflecting a 25.3% year-over-year improvement [2] - Revenues reached $842.60 million, beating the Zacks Consensus Estimate of $834.8 million and increasing by 2.8% year over year, driven by an 8% rise in onboard passengers [2] - Passenger revenues, contributing 94.6% to total revenues, grew 2% year over year to $797.26 million, supported by a 6.4% increase in revenue passenger miles (RPMs), despite a 4.1% decrease in passenger yield [3] Revenue Breakdown - Cargo and mail revenues increased by 12.4% year over year to $28.3 million, attributed to higher cargo volumes [4] - Other operating revenues improved by 33.9% year over year to $17.03 million, driven by increased ConnectMiles revenues from non-air partners [4] Operational Metrics - Copa Holdings' traffic (measured in RPMs) grew by 6.4%, while capacity (measured in available seat miles) increased by 5.8% from the previous year, resulting in a load factor of 87.3%, up 0.5 percentage points [5] - Passenger revenue per available seat mile decreased by 3.6% year over year to 10.1 cents, while revenue per available seat mile (RASM) fell by 2.8% to 10.7 cents [6] Cost Analysis - Total operating expenses rose by 0.9% year over year to $665.98 million, primarily due to increased capacity and maintenance costs, partially offset by lower fuel and passenger servicing expenses [7] - Employee-related expenses increased by 6.5%, while maintenance costs surged over 100% year over year [8] Cash Position - At the end of the second quarter, Copa Holdings had cash and cash equivalents of $236.17 million, up from $164.82 million at the end of the previous quarter [8] 2025 Outlook - Management anticipates consolidated capacity growth of 7-8% year over year, with an expected operating margin of 21-23% [9] - RASM is projected to be 11.2 cents, with a load factor expectation of 87% for the current year [9]

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].