Copa Holdings earnings dip for the fourth quarter and 2014 due to fuel hedges and the devaluation of Venezuelan Bolivar

Copa Holdings, S.A. (Copa Airlines and Copa Airlines Colombia) (Panama City) announced its financial results for the fourth quarter (4Q) of 2014 and the full year 2014.

Copa Holdings reported net income of $35.9 million for the fourth quarter or earnings per share (EPS) of $0.81, as compared to net income of $113.2 million or EPS of $2.55 in 4Q13. Excluding special items, which for 4Q14 includes a non-cash loss of $89.1 million associated with the mark-to-market of fuel hedge contracts, and a $0.4 million loss related to devaluation of the Venezuelan Bolivar, Copa Holdings would have reported adjusted net income of $125.3 million or adjusted EPS of $2.83, compared to adjusted net income of $141.8 million or adjusted EPS of $3.20 in 4Q13.

Net income for full year 2014 reached $371.4 million or EPS of $8.37, compared to $427.5 million or EPS of $9.62 for full year 2013. Excluding special items, which for 2014 includes a non-cash loss of $116.6 million associated with the mark-to-market of fuel hedge contracts, and a $6.6 million loss related to the devaluation of the Venezuelan Bolivar, Copa Holdings would have reported an adjusted net income of $494.6 million or EPS of $11.14, compared to adjusted net income of $467.4 or adjusted EPS of $10.52 for full year 2013.

During the fourth quarter, Copa Airlines took delivery of two Boeing 737-800 aircraft. As a result, Copa Holdings ended the year with a consolidated fleet of 98 aircraft.

For 2014, Copa Holdings reported consolidated on-time performance of 90.3% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-8V3 HP-1714CMP (msn 40891) approaches the runway at Las Vegas.

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