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 - easyJet's share price has declined following a solid Q3 update due to a less optimistic near-term outlook, but there are indications that the shares may recover [2][6]. Financial Performance - Passenger revenue increased by 9.7% to £1.76 billion, ancillary revenue rose by 5.6% to £732 million, and Holidays revenue surged by 27.4% to £428 million, leading to a total group revenue growth of 10.9% to £2.92 billion [3]. - The airline's headline EBIT margin improved by 115 basis points to 10.04%, driven by a 7.3% decline in fuel unit costs to 1.65p, resulting in a slight increase in total fuel costs to £627 million [4][5]. - Headline pre-tax profit (PBT) saw a healthy increase of 21.1% to £286 million, aligning with previous forecasts [5]. Guidance and Market Reaction - The absence of reiterated FY25 guidance led to a decline in the share price, with analysts adjusting PBT estimates down to approximately £656 million from £697 million due to anticipated impacts from ATC staff strikes and higher fuel costs [6][7]. - Despite the negative sentiment, Q4 forward bookings are 1.0% higher than the previous year, and there is an upward adjustment in ASK growth for the year from 8.0% to 9.0% [8]. Future Outlook - The company aims for a medium-term PBT exceeding £1.00 billion and a 60.0% increase in net book value, with expectations of reiterating or upgrading its outlook in November [10]. - The stock is currently undervalued with an EV/EBITDA ratio of 2.4 compared to the sector average of 8.4, and projected earnings growth at a CAGR of 11.9% through FY27 suggests a potential for recovery [11].

Investor Presentation May 2025 FORWARD LOOKING STATEMENTS This investor presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", "anticipate", "believe", "could", "continue", "expect", "estimate", "may", "plan", "outlook", "future", "target", and "project" and other simil ...