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Copa Holdings Reports Financial Results for the Fourth Quarter of 2020
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Copa Holdings Reports Financial Results for the Fourth Quarter of 2020

Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter of 2020 (4Q20). The terms “Copa Holdings” and “the Company” refer to the consolidated entity.  The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the fourth quarter of 2019 (4Q19).

The financial information included in this press release is preliminary, as the Company has not yet issued its audited financial statements.  This information presented herein may differ from those results. During the preparation of the financial statements and related notes and our year-end audit, additional items that would require material adjustments to the preliminary financial information included in this press release may be identified.

Due to the continued effects of the Covid-19 pandemic on the aviation industry, the Company operated on average, at approximately 27% of the capacity for the same period in 2019.  Therefore, this earnings release will focus on the financial results and metrics that are relevant in these circumstances and will omit certain financial ratios, unit metrics and operational indicators that are usually provided, since they are either not measurable, not meaningful or not material on such a limited operational base.


  • Copa Holdings reported a net loss of US$168.8 million for the quarter, or US$3.97 per share. Excluding special items, the Company would have reported a net loss of US$85.2 million, or US$2.00 per share. Special items for the quarter include an US$80.1 million unrealized mark-to-market loss related to the Company’s convertible notes, a US$4.4 million asset impairment charge on the Boeing 737-700 fleet, and a US$0.9 million gain on the Embraer assets held for sale.
  • Copa Holdings reported an operating loss of US$95.1 million for the quarter. Excluding special items, the Company would have reported an operating loss of US$91.5 million.
  • For the full year 2020, Copa Holdings reported a net loss of US$598.6 million, or US$14.08 per share. Excluding special items, the Company would have reported a net loss of US$259.5 million, or US$6.11 per share. Special items for the full year include a US$191.2 million in total impairment charges related to the Boeing 737-700 fleet, a US$98.7 million unrealized mark-to-market loss on to the Company’s convertible notes, and a US$49.2 million expected loss on the Embraer assets held for sale.
  • For the full year 2020, Copa Holdings reported an operating loss of US$460.9 million. Excluding special items, the Company would have reported an operating loss of US$220.6 million for 2020.
  • Cash consumption, defined as cash disbursements less proceeds, excluding extraordinary financing activities and asset sales, averaged approximately US$6 million per month during the quarter. Cash consumption for the quarter benefited from changes in working capital, as cash proceeds increased ahead of capacity growth, while cash outflows lagged given the timing of certain accounts payable.
  • The Company ended the quarter with US$1.3 billion of available liquidity, consisting of approximately US$1.0 billion in cash, short-term and long-term investments, and committed and undrawn credit facilities of US$305 million.
  • The Company closed the quarter with total debt, including lease liabilities, of US$1.4 billion.
  • The Company’s flight operations, measured in terms of available seat miles (ASMs), represented 15% in October, 28% in November, and 39% in December, as compared to the same periods in 2019. For the quarter, the Company’s ASMs were approximately 27% of ASMs in the same period in 2019.
  • During the quarter, the Company completed the delivery of 5 Embraer 190 aircraft that were previously sold to a third party. As of December 31, 2020, there were 8 Embraer 190 aircraft sold and pending to be delivered.
  • In December, The Export-Import Bank of the United States authorized a final commitment for a guaranteed loan in an amount up to US$327.9 million, related to 7 737 MAX 9 aircraft to be delivered to the Company during 2020 and 2021.
  • In December, the Company took delivery of 1 Boeing 737 MAX 9. Excluding the aircraft classified as assets held for sale, Copa Holdings ended the year with a consolidated fleet of 75 aircraft – 68 Boeing 737-800s and 7 Boeing 737 MAX 9s, compared to a total fleet of 102 aircraft by year end 2019.

Subsequent Events

  • In January, the Company delivered 1 Embraer 190 aircraft, out of 14 that were sold to a third party.
  • In January and the first week of February, the Company took delivery of 3 Boeing 737 MAX 9s and expects to receive 3 additional Boeing 737 MAX 9s by the end of the first quarter.
  • During the month of February, the company added new credit facility commitments for an aggregate amount of US$40 million, bringing the total of undrawn committed credit facilities to US$345 million.
  • The Company has reached an agreement with Boeing regarding compensation related to the Boeing 737 MAX grounding. Terms remain confidential.


Consolidated Financial
& Operating Highlights
4Q20 4Q19 Variance
vs. 4Q19
3Q20 Variance
vs. 3Q20
2020 2019 Variance
vs. 2019
Revenue Passengers Carried (000s) 696 2,633 -73.6% 30 2256.3% 2,852 10,474 -72.8%
RPMs (millions) 1,267 5,244 -75.8% 57 2130.0% 5,812 21,303 -72.7%
ASMs (millions) 1,684 6,149 -72.6% 95 1667.7% 7,301 25,113 -70.9%
Load Factor 75.3% 85.3% -10.0 p.p. 59.7% 15.6 p.p. 79.6% 84.8% -5.2 p.p.
Fuel Gallons Consumed (millions) 20.75 78.94 -73.7% 1.32 1469.1% 92.8 321.4 -71.1%
Avg. Price Per Fuel Gallon (US$) 1.41 2.16 -34.7% 1.41 -0.3% 1.81 2.16 -16.0%
Average Length of Haul (miles) 1,822 1,992 -8.5% 1,925 -5.4% 2,038 2,034 0.2%
Average Stage Length (miles) 1,211 1,279 -5.4% 1,081 12.0% 1,278 1,288 -0.8%
Departures 8,795 32,441 -72.9% 559 1473.3% 37,865 131,819 -71.3%
Block Hours 26,870 105,620 -74.6% 1,710 1471.8% 122,968 431,749 -71.5%
Average Aircraft Utilization (hours) (2) 5.2 11.3 -53.8% 0.9 477.8% 7.5 11.4 -70.8%
Operating Revenues (US$ millions) 158.6 681.9 -76.7% 32.4 389.9% 801.0 2,707.4 -70.4%
Operating Profit (Loss) (US$ millions) -95.1 17.8 -633.9% -107.0 -11.1% -460.9 346.2 -233.2%
Adjusted Operating Profit (Loss) (US$ millions) (1) -91.5 107.1 -185.4% -107.0 -14.4% -220.6 435.5 -150.6%
Net Profit (Loss) (US$ millions) -168.8 2.7 n/m -118.1 43.0% -598.6 247.0 -342.3%
Adjusted Net Profit (Loss) (US$ millions) (1) -85.2 92.1 n/m -121.6 -30.0% -259.5 336.3 -177.2%
Basic EPS (US$) -3.97 0.06 n/m -2.78 43.0% -14.08 5.81 -342.2%
Adjusted Basic EPS (US$) (1) -2.00 2.17 n/m -2.86 -30.0% -6.11 7.92 -177.1%
Shares for calculation of Basic EPS (000s) 42,511 42,487 0.1% 42,510 0.0% 42,508 42,483 0.1%


(1)  Excludes Special Items.  This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.

(2)  Average Aircraft Utilization is calculated based on the Company’s active fleet, excluding aircraft in storage as well as those classified as assets held for sale.


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