Copa Holdings, S.A. (NYSE: CPA) has released its financial results for the second quarter of 2023 (2Q23), revealing significant gains and strategic developments. The following summary outlines the key financial and operating highlights of the quarter.
Financial Highlights
- Net Profit: Copa Holdings reported a net profit of US$17.5 million, or US$0.44 per share. Excluding special items, the net profit would have been US$154.5 million or US$3.92 per share.
- Operating Profit: The Company’s operating profit reached US$194.7 million with an impressive operating margin of 24.1%, a significant increase from the 6.1% margin in the second quarter of 2022 (2Q22).
- Revenues: Total revenues for the quarter increased 16.7% to US$809.2 million, mainly driven by higher capacity.
- Operating Costs: Operating cost per available seat mile (CASM) decreased 17.0% to 9.1 cents, mainly attributed to a 35.9% decrease in the price of jet fuel per gallon.
Operational Highlights
- Passenger Traffic and Capacity: Revenue passenger miles (RPMs) increased by 15.4%, while capacity (ASMs) increased by 13.6%. Load factor improved by 1.3 percentage points to 86.1%.
- New Destinations and Fleet Expansion: The Company announced new service to Barquisimeto, Venezuela, and took delivery of two Boeing 737 MAX 9 aircraft, ending the quarter with a consolidated fleet of 101 aircraft.
- On-Time Performance: Copa Airlines boasted a strong on-time performance of 91.6% and a flight completion factor of 99.8%, maintaining its position among industry leaders.
Subsequent Developments
- Notes Redemption: The Company announced the redemption of all its outstanding 4.50% Convertible Senior Notes due in 2025, to be completed on September 18, 2023.
- Fleet Growth: An additional Boeing 737 MAX 9 was received in July, with five more aircraft expected by year-end.
- Awards and Recognition: Copa Airlines was awarded “Best Airline in Central America and the Caribbean” by Skytrax for the eighth consecutive year.
- Dividend Payment: Copa Holdings will make a third dividend payment of US$0.82 per share on October 13, 2023.
Financial Position
- The Company ended the quarter with approximately US$1.3 billion in cash and investments, representing 39.6% of the last twelve months’ revenues.
- Total debt, including lease liabilities, stood at US$1.8 billion, with an Adjusted Net Debt to EBITDA ratio of 0.5 times.
