Tag Archives: Copa Airlines

Copa Holdings reports first quarter net income of $113.1 million, down 25.3% from $151.4 million

Copa Holdings, S.A. (Copa Airlines and Copa Airlines Colombia) (Panama City) has announced its financial results for the first quarter of 2015 (1Q15):

Copa Holdings reported net income of $113.1 million (all amounts in US dollars) for 1Q15, or diluted earnings per share (EPS) of $2.57. Excluding special items, Copa Holdings would have reported an adjusted net income of $106.0 million, or EPS of $2.41 per share, a 30.4% decrease over adjusted net income of $153.6 million and $3.46 per share for 1Q14.

Operating income for 1Q15 came in at $127.3 million, a 28.1% decrease over operating income of $177.0 million in 1Q14. Operating margin for the period came in at 20.1%, compared to 24.8% in 1Q14, as a result of lower unit revenues partially offset by lower unit costs.

Total revenues decreased 11.5% to $631.8 million. Yield per passenger mile decreased 16.2% to 14.8 cents and operating revenue per available seat mile (RASM) decreased 18.3% to 11.6 cents. Adjusting for an 8.5% increase in length of haul, yields and RASM decreased 12.7% and 14.9%, respectively.

For 1Q14, passenger traffic (RPMs) grew 5.8% on a 8.3% capacity expansion. Consolidated load factor came in at 76.3%, 1.8 percentage points below 1Q14.

Operating cost per available seat mile (CASM) decreased 13.2%, from 10.7 cents in 1Q14 to 9.3 cents in 1Q15 mainly due to lower jet fuel costs. CASM, excluding fuel, decreased 3.4% to 6.3 cents mainly due to lower sales related expenses and lower overhead expenses.

Cash, short-term and long-term investments ended 1Q15 at US$1.16 billion, representing 44% of the last twelve months’ revenues. Of this amount, 41% or US$470.1 million was in Venezuela pending repatriation due to government currency controls.

During the first quarter, Copa Airlines took delivery of one Boeing 737-800 aircraft, and returned a leased Boeing 737-700. As a result, Copa Holdings ended the quarter with a consolidated fleet of 98 aircraft.

On April 10, 2015, Copa Holdings signed an order with Boeing to purchase 61 737-MAX aircraft, worth US$6.6 billion at Boeing list prices. The aircraft are expected to be delivered between 2018 and 2024.

Copyright Photo: TMK Photography/AirlinersGallery.com. Copa Airlines is proud to be the official airline of the “Legend Series,” an annual event arranged by Major League Baseball in conjunction with Panamanian business people and with the support of the Panamanian Government. Copa Airlines decorated this Boeing 737-8V3 registered as HP-1533CMP (msn 35067) as the “Official Airlines of Major League Baseball” showing the logos of the National League on this side. On the other side is the American League teams.

Copa Airlines aircraft slide show:

Copa Airlines orders 61 Boeing 737 MAX 8 and MAX 9 airliners

Copa Airlines (Panama City) has entered into a historic landmark order with Boeing (Chicago, Seattle and Charleston) for 61 Boeing 737 MAX 8 and MAX 9 airliners (previously listed as unidentified). Boeing issued this statement and image:

Panama President Juan Carlos Varela Rodriguez and U.S. President Barack Obama witnessed a historic agreement in which Copa Airlines and Boeing announced an order for 61 737 MAX 8 and MAX 9 airplanes. The order, valued at $6.6 billion at list prices, is the largest commercial transaction ever between a Panamanian and a U.S.-based company.

The signing ceremony took place in Panama City as leaders from throughout the Western Hemisphere gathered for the seventh Summit of the Americas.

Presidents Varela and Obama were on hand as Copa Chairman Stanley Motta, Copa CEO Pedro Heilbron and Boeing Chairman and CEO Jim McNerney signed documents recognizing the agreement. The airplanes were previously attributed to an unidentified customer on Boeing’s Orders and Deliveries web site.

Copa Airlines will use the airplanes to replace existing airplanes and support the carrier’s plans for strategic growth. Copa will be the first airline in the region to operate the 737 MAX 9 on deep South American routes. The 737 MAX 9’s range and passenger comfort are ideally suited to Copa’s long-haul route network.

The 737 MAX also features the Boeing Sky Interior, which Copa helped launch in Latin America on its Next-Generation 737 fleet. The sleek interior boasts modern lines, a spacious cabin with more headroom and LED lighting that offers vibrant color options.

To date, the 737 MAX has accumulated 2,715 orders from 57 customers around the world.

Image: Boeing.

Copa Airlines aircraft slide show:

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.

Copa Airlines aircraft slide show:

Copa Airlines is coming to New Orleans

Copa Airlines (Panama City) will be coming to New Orleans in June. The carrier will add the Panama City (Panama)-New Orleans route on June 24. The new route will be operated four days a week per Airline Route.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Copa Airlines Boeing 737-8V3 WL HP-1713CMP (msn 40890) arrives in Las Vegas.

Copa Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-CSAmerica-1/Airlines-Latin-America1-AF/Copa-Airlines

Copa Holdings reports net income of $118.2 million for the second quarter

Copa Holdings, S.A. (Copa Airlines and Copa Airlines Colombia) (Panama City) reported net income of $118.2 million (US) for the second quarter, or diluted earnings per share (EPS) of $2.66 (US). Excluding special items, Copa Holdings would have reported an adjusted net income of $115.9 million (US), or $2.61 per share, a 36.4% increase over adjusted net income of $85.0 million (US) and $1.92 per share for the second quarter.

Operating income for second quarter came in at $131.2 million (US), a 34.3% increase over operating income of $97.7 million (US) in the second quarter. Operating margin for the period came in at 19.5%, compared to 16.5% in the second quarter, as a result of higher unit revenues.

In other news, Copa Airlines will add two new routes, from Panama City to Campinas, Brazil and Cayo Santa Maria, Cuba.

New destinations:

Campinas, Brazil: Copa Airlines will offer one daily flight to Campinas, its eighth destination in Brazil. Called the “Silicon Valley” of Brazil, Campinas is home to the second largest concentration of research and development centers in the country. It is also boasts Brazil’s fourth-largest financial sector. The new flight will begin operating in December 2014.

Cayo Santa María, Cuba: Copa Airlines will offer two weekly flights to its second destination in Cuba, increasing tourist access to beautiful beaches; hotel accommodations including many “all inclusive” hotels, approximately 12,500 rooms, 5-star hotels and the the Pedraplén de Caibarién, an impressive 48km road stretching across the sea to Cayo Santa Maria, awarded the international “Puente de Alcántara” prize for best Latin American civil works. This new flight will also begin operation in December 2014.

With the addition of these new destinations, by the end of 2014 Copa Airlines will offer flights to 69 destinations in 30 countries in North, Central, and South America and the Caribbean from its Hub of the Americas at Tocumen International Airport in Panama City, Panama. The Hub of the Americas continues to offer more international flights to destinations in Latin America than any other airline.

During the first six months of 2014, Copa Airlines added four new Boeing Next Generation 737-800 aircraft equipped with the innovative Split Scimitar Winglets to its fleet, bringing its total to 94 aircraft.

During the second half of 2014, Copa will add four new high-tech Boeing 737-800 Next Generation aircraft, bringing its fleet total to 98 aircraft and increasing the number of available seats by 10 percent over 2013.

Top Copyright Photo: Jay Selman/AirlinersGallery.com (all others by Copa). Boeing 737-8V3 HP-1714CMP (msn 40891) arrives at Las Vegas.

Copa Airlines:

The “Hub of the Americas”:

Routes from the Panama City hub:

Copa Holdings reports net income of $151.4 million for the first quarter

Copa Holdings, S.A. (Copa Airlines and Copa Airlines Colombia) (Panama City) announced its financial results for the first quarter of 2014 (1Q14):

Copa Holdings reported net income of $151.4 million (US) for 1Q14, or diluted earnings per share (EPS) of US$3.41. Excluding special items, Copa Holdings would have reported an adjusted net income of $153.6 million, or $3.46 per share, a 23.5% increase over adjusted net income of US$124.4 million and US$2.80 per share for 1Q13.

Operating income for 1Q14 came in at US$177.0 million, a 24.1% increase over operating income of US$142.6 million in 1Q13. Operating margin for the period came in at 24.8%, compared to 22.2% in 1Q13, as a result of higher unit revenues and lower unit costs.

Total revenues increased 11.3% to US$713.6 million. Yield per passenger mile increased 0.5% to 17.7 cents and operating revenue per available seat mile (RASM) increased 1.9% to 14.2 cents. Furthermore, adjusting for a 3.7% increase in length of haul, yields and RASM increased 2.3% and 3.7%, respectively.
For 1Q14, healthy demand trends resulted in passenger traffic (RPMs) growth of 11.0% on a 9.3% capacity expansion. Consolidated load factor came in at 78.1%, or 1.2 percentage points higher than 1Q13.

Operating cost per available seat mile (CASM) decreased 1.5%, from 10.9 cents in 1Q13 to 10.7 cents in 1Q14 due to lower jet fuel costs. CASM, excluding fuel, increased 1.0% to 6.6 cents mainly due to full year effect of 2013 newly leased aircraft.

Cash, short term and long term investments ended 1Q14 at US$1.1 billion, representing 41% of the last twelve months’ revenues. Of this amount, 44% is in Venezuela pending repatriation due to government currency controls.

During the first quarter, Copa Airlines took delivery of one Boeing 737-800 aircraft. As a result, Copa Holdings ended the quarter with a consolidated fleet of 91 aircraft.

For 1Q14, Copa Holdings reported consolidated on-time performance of 92.3% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.

Copyright Photo: Steve Bailey/AirlinersGallery.com. Newly-built Boeing 737-8V3 HP-1836CMP (msn 40782) at Boeing Field in Seattle was handed over to Copa Airlines on March 28, 2014.

Copa Airlines (Panama):

United to start nonstop Denver-Panama City, Panama flights on December 3

United Airlines (Chicago) today announced that it will introduce nonstop flights between its hub at Denver International Airport and Panama City beginning on December 3, subject to government approval with flights available for sale at a later date. The new service will operate daily November through August and five times weekly in September and October, offering Denver-area travelers direct access to the Panamanian capital and connections to several additional cities in Central and South America through United’s strategic partnership with Copa Airlines.

United will operate the service with Boeing 737-700 aircraft with 118 seats – 12 in United Business and 106 in United Economy, including 40 Economy Plus extra-legroom seats.

United Airlines is Denver’s largest airline, offering more flights and more seats from the Mile High City to more destinations around the world than any other carrier. The airline offers more than 375 flights each day from Denver International Airport to more than 10 destinations in Latin America, Canada and Asia – as well as service to top business centers in North America.

United has a proud history in Denver, serving the community for over 75 years. The airline is a proud partner of the Colorado Symphony, the Denver Public Schools Foundation, the Denver Center for the Performing Arts, the Latin American Education Foundation and the Denver Broncos.

United employs more than 5,100 coworkers in the Denver area.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-724 N25705 (msn 28766) climbs away from Los Angeles International Airport.

United Airlines (current):

Copa Airlines starts to add Split Scimitar Winglets to its Boeing 737-800 fleet

Copa Airlines (Panama City), as part of its 2014 Strategic Plan, started a program to install the innovative “Split Scimitar” Winglets, beginning in April. These winglets reduce aerodynamic drag, allowing greater fuel efficiency during flight. As a result, they will help Copa Airlines reduce its carbon footprint.

With this investment, Copa Airlines is reaffirming its commitment to equip its aircraft with state-of-the-art technology that will enable it to lessen the impact of aerodynamic drag, optimizing and increasing the efficiency of its flights.

The new “Split Scimitar” winglets, as their name suggests, have the same shape as the ancient sabre known as a “scimitar.” This modern “curved fin” shape is different than the shape of the winglets currently on all of Copa’s aircraft, and it has aerodynamic surfaces that are situated on the end of the airplane’s wings.

Copa Airlines expects that this optimization of its aircraft will result in an additional 1.70% reduction in fuel use, thus helping reduce its carbon footprint.

The Airline’s Vice President of Technical Operations also indicated that in 2014, the “Split Scimitar” winglets will be installed on 18 Boeing 737-800 Next-Generation airplanes, and by 2018, it is estimated that approximately 55 aircraft will be equipped with this new technology.

Copa Airlines:

Copa Airlines is coming to Fort Lauderdale, Georgetown and Montreal

Copa Airlines (Panama City) has announced growth plans for the first half of 2014, which include the launch of new nonstop flights from Panama to Montreal (Trudeau); Canada, Fort Lauderdale/Hollywood, Florida, and Georgetown, Guyana. In addition, Copa will add aircraft to its fleet, for a 10 percent growth in capacity.

The airline will add eight new Boeing Next Generation 737-800 aircraft in 2014, bringing its total fleet to 98 state-of-the-art aircraft, and increasing capacity by 10 percent.

New Destinations:

Montreal, Canada: As part of its effort to increase its route network in the northern part of the continent, Copa will offer four-times-weekly flights to the city of Montreal, a major world cultural center and a well-known tourism destination. The new flight, which will begin June 3 of this year, is Copa’s second Canadian destination.
Fort Lauderdale/Hollywood, Florida: Copa will offer flights four times a week between Fort Lauderdale, Fla., and the Hub of the Americas, beginning July 11, 2014. The coastal region, with its booming tourism industry and growing Latin American population, will be Copa’s fourth destination in the state of Florida and its 10^th in the United States.
Georgetown, Guyana: Beginning July 11, 2014, Copa will offer twice-weekly flights to Georgetown, the capital and principal city of the Co-operative Republic of Guyana. The new route, Copa Airlines’ first to this South American country, connects the area with Panama and the region.

The new cities served will bring Copa Airlines’ total number of destinations to 69 in North, Central and South America and the Caribbean served from its Hub of the Americas at Tocumen International Airport in Panama City, Panama – the hub with the most destinations and international flights on the continent.

Copa Airlines major accomplishments for 2013 include:

Transported 11,316,678 million passengers
Increased capacity by 14 percent
Received Skytrax awards for “Best Airline and “Best Cabin and Airport Crew” in Central Americaand the Caribbean
Added two destinations to its route network: Boston, Massachusetts, and Tampa, Florida.
Added 13 flight frequencies to key destinations already served.
Achieved an on-time performance of nearly 90 percent, on par with the best airlines in the world
Received seven new Boeing 737-800 Next Generation aircraft, ending 2013 with a fleet of 90 aircraft
Ended the year with 8,644 employees throughout the Americas, of which 5,783 are in Panama.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-8V3 HP-1825CMP (msn 40780) in the colorful “Biomuseo” livery climbs briskly from the runway at Los Angeles International Airport.

Copa Airlines:

Copa Airlines orders Split Scimitar Winglet Systems for its Boeing 737s

Aviation Partners Boeing (APB) (Seattle) has announced the order of up to 100 Split Scimitar Winglet Systems for Boeing Next-Generation 737 aircraft by Copa Holdings, S.A. (Copa Airlines) (Panama City). This program is the culmination of a five year design effort using the latest computational fluid dynamic technology to redefine the aerodynamics of the Blended Winglet into an all new Split Scimitar Winglet. The unique feature of the Split Scimitar Winglet is that it uses the existing Blended Winglet structure, but adds new strengthened spars, aerodynamic scimitar tips, and a large ventral strake. This advanced technology winglet is the ultimate winglet in terms of performance, without increasing existing wing span.

Since launching the program early this year, APB has now taken orders and options for over 550 Split Scimitar Winglet systems. Over the last 10 years, APB has sold over 7,000 Blended Winglet Systems. Nearly 5,000 Blended Winglet Systems are now in service with over 200 airlines in more than 100 countries. APB estimates that Blended Winglets have saved airlines worldwide more than 3.9 billion gallons of jet fuel to-date.