Copa Holdings beats expectations for 4Q and 2009

Copa Holdings (Copa Airlines and AeroRepublica) (Panama City) reported net income of $70.4 million for fourth quarter, as compared to net income of $25.8 million for 4Q08. Excluding special items, which for 4Q09 include a special charge of $4.8 million related to the accrual of costs associated with the retirement of four DC-9-80 (MD-80) aircraft as a result of AeroRepublica’s transition to an all Embraer ERJ 190 fleet and a $9.6 million non-cash gain associated with the mark-to-market of fuel hedge contracts, Copa Holdings would have reported an adjusted net income of $65.7 million, compared to an adjusted net income of $65.2 million in 4Q08.

Net income for full year 2009 reached $240.4 million, compared to $118.7 million for full year 2008. Excluding special items, which for 2009 include a special charge of $19.4 million related to the accrual of costs associated with the retirement of four DC-9-80 (MD-80) aircraft as a result of AeroRepublica’s transition to an all Embraer ERJ 190 fleet and a $58.0 million non-cash gain associated with the mark-to-market of fuel hedge contracts, Copa Holdings would have reported an adjusted net income of $201.7 million compared to an adjusted net income of $173.5 for full year 2008, representing an increase of 16.3 percent.

Copyright Photo: Bruce Drum. Copa Airlines’ Boeing 737-7V3 HP-1377CMP (msn 30462) taxies to the terminal at Miami.