Tag Archives: HP1721CMP

Copa Holdings reports 2Q net income of $74.4 million

Copa Holdings, S.A. (Copa Airlines and Copa Colombia) has announced financial results for the second quarter of 2013:

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported net income of US$74.4 million for 2Q13, or diluted earnings per share (EPS) of US$1.68.  Excluding special items, Copa Holdings would have reported an adjusted net income of $85.0 million, or $1.92 per share, a 45.3% increase over adjusted net income of US$58.5 million and US$1.32 per share for 2Q12.
  • Operating income for 2Q13 came in at US$97.7 million, a 34.5% increase over operating income of US$72.6 million in 2Q12.  Operating margin for the period came in at 16.5%, compared to 14.1% in 2Q12, as a result of lower unit costs.
  • Total revenues increased 14.8% to US$592.0 million.  Yield per passenger mile decreased 4.6% to 16.4 cents and operating revenue per available seat mile (RASM) decreased 2.5% to 12.8 cents.  However, adjusting for a 7.3% increase in length of haul, yields decreased 1.2% and RASM increased 1.0%.
  • For 2Q13, passenger traffic (RPMs) grew 20.4% on a 17.7% capacity expansion.  Consolidated load factor came in at 75.3%, or 1.7 percentage points above 2Q12.
  • Operating cost per available seat mile (CASM) decreased 5.2%, from 11.3 cents in 2Q12 to 10.7 cents in 2Q13.  CASM, excluding fuel costs, decreased 2.6% to 6.7 cents.
  • Cash, short term and long term investments ended 2Q13 at US$848.7 million, representing 35.0% of the last twelve months’ revenues.
  • During the second quarter, Copa Airlines took delivery of one Boeing 737-800 aircraft.  As a result, Copa Holdings ended the quarter with a consolidated fleet of 86 aircraft.
  • For 2Q13, Copa Holdings reported consolidated on-time performance of 89.3% and a flight-completion factor of 99.7%, maintaining its position among the best in the industry.

SUBSEQUENT EVENTS

  • On July 17, 2013, Copa Airlines announced it will begin nonstop service four times a week from Panama to Tampa, Fla., on December 16, 2013.  Tampa will be Copa Airlines’ ninth U.S. destination and its 66th destination overall.
  • On August 7, 2013, the Board of Directors of Copa Holdings resolved to change the Company’s dividend policy to increase the annual distribution to an amount equal to 40% of the prior years’ annual consolidated net income. In addition, dividends going forward will be distributed in equal quarterly installments during the months of March, June, September and December, subject to board approval each quarter.  On August 7, 2013, the Board of Directors also approved dividend payments payable at the end of both 3Q13 and 4Q13, in amounts equal to 10% of the consolidated net income of 2012.
Consolidated Financial &
Operating Highlights
2Q13 2Q12 % Change 1Q13 % Change
Revenue Passengers Carried (‘000) 1,861 1,658 12.2% 1,899 -2.0%
RPMs (mm) 3,475 2,886 20.4% 3,529 -1.5%
ASMs (mm) 4,618 3,923 17.7% 4,590 0.6%
Load Factor 75.3% 73.5% 1.7 p.p. 76.9% -1.6 p.p.
Yield 16.4 17.2 -4.6% 17.6 -6.9%
PRASM (US$ Cents) 12.3 12.6 -2.3% 13.5 -8.9%
RASM (US$ Cents) 12.8 13.1 -2.5% 14.0 -8.2%
CASM (US$ Cents) 10.7 11.3 -5.2% 10.9 -1.5%
CASM Excl. Fuel (US$ Cents) 6.7 6.9 -2.6% 6.5 3.3%
Breakeven Load Factor (1) 61.6% 63.0% -1.4 p.p. 58.7% 2.9 p.p.
Fuel Gallons Consumed (Millions) 60.0 52.1 15.0% 60.1 -0.2%
Avg. Price Per Fuel Gallon (US$ Dollars) 3.08 3.32 -7.3% 3.34 -7.8%
Average Length of Haul (Miles) 1,868 1,740 7.3% 1,859 0.5%
Average Stage Length (Miles) 1,126 1,063 6.0% 1,123 0.2%
Departures 29,357 27,005 8.7% 29,428 -0.2%
Block Hours 84,985 74,678 13.8% 84,490 0.6%
Average Aircraft Utilization (Hours) 10.9 10.6 3.1% 11.3 -3.5%
Operating Revenues (US$ mm) 592.0 515.8 14.8% 641.3 -7.7%
Operating Income (US$ mm) 97.7 72.6 34.5% 142.6 -31.5%
Operating Margin 16.5% 14.1% 2.4 p.p. 22.2% -5.7 p.p.
Net Income (US$ mm) 74.4 32.0 132.6% 113.8 -34.6%
Adjusted Net Income (US$ mm) (1) 85.0 58.5 45.3% 124.4 -31.6%
EPS – Basic and Diluted (US$) 1.68 0.72 132.4% 2.56 -34.6%
Adjusted EPS – Basic and Diluted (US$) (1) 1.92 1.32 45.2% 2.80 -31.6%
# of Shares – Basic and Diluted (‘000) 44,387 44,354 0.1% 44,387 0.0%

(1)Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 2Q13, 2Q12, and 1Q13 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges.   Additionally, for 1Q13 excludes a US$13.9 million charge related to the devaluation of the Venezuelan currency.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-8V3 WL HP-1721CMP (msn 40362) prepares to touch down in Miami.

Copa Airlines: AG Slide Show