Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2023 (1Q23). 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 first quarter of 2019 (1Q19) (which the Company believes are more relevant than year-over-year comparisons due to the significant impact of the COVID-19 pandemic in 2020, 2021, and 2022).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported a net profit of US$121.5 million for 1Q23 or US$3.07 per share, as compared to a net profit of US$89.4 million or earnings per share of US$2.11 in 1Q19. Excluding special items comprised of the unrealized mark-to-market net loss of US$36.3 million related to the Company’s convertible notes, as well as changes in the value of financial investments, the Company would have reported a net profit of US$157.8 million or US$3.99 per share.
- Copa Holdings reported an operating profit of US$193.2 million and a 22.3% operating margin for the quarter, as compared to an operating profit of US$112.9 million and an operating margin of 16.8% in 1Q19.
- Passenger traffic, measured in terms of revenue passenger miles (RPMs), increased by 7.1% compared to 1Q19, while capacity (available seat miles or ASMs) increased by 2.8%. As a result, the load factor for the quarter increased by 3.5 percentage points to 86.8%, as compared to 1Q19.
- Total revenues for 1Q23 increased 29.0% to US$867.3 million, as compared to 1Q19 revenues. Yields increased 20.0% to 14.6 cents and revenue per available seat mile (RASM) increased 25.5% to 13.1 cents.
- Operating cost per available seat mile (CASM) increased 17.2% from 8.7 cents in 1Q19 to 10.2 cents in 1Q23, mainly driven by an increase of 61.4% in the price of jet fuel per gallon. CASM excluding fuel (Ex-fuel CASM) increased 2.1% in the quarter to 6.2 cents, as compared to 1Q19.
- The Company ended the quarter with approximately US$1.2 billion in cash, short-term and long-term investments, which represent 36.3% of the last twelve months’ revenues.
- The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion, while our Net Debt to EBITDA ratio ended at 0.6 times, a decrease when compared to the previous quarter.
- During the quarter, the Company took delivery of two Boeing 737 MAX 9 aircraft, ending the quarter with a consolidated fleet of 99 aircraft – 67 Boeing 737-800s, 22 Boeing 737 MAX 9s, 9 Boeing 737-700s, and 1 Boeing 737-800 freighter, compared to a fleet of 102 aircraft prior to the COVID-19 pandemic.
- Copa Airlines had an on-time performance for the quarter of 92.2% and a flight completion factor of 99.9%, once again positioning itself among the very best in the industry.
Subsequent Events
- Copa Holdings will pay its second quarterly dividend of $0.82 per share on June 15, to all Class A and Class B shareholders on record as of May 31, 2023.
|
Consolidated Financial |
1Q23 |
1Q19 (2) |
Variance vs. 1Q19 |
4Q22 |
Variance vs. 4Q22 |
|
Revenue Passengers Carried (000s) |
2,881 |
2,588 |
11.3 % |
2,813 |
2.4 % |
|
Revenue Passengers OnBoard (000s) |
4,295 |
3,830 |
12.1 % |
4,262 |
0.8 % |
|
RPMs (millions) |
5,723 |
5,345 |
7.1 % |
5,639 |
1.5 % |
|
ASMs (millions) |
6,596 |
6,415 |
2.8 % |
6,509 |
1.3 % |
|
Load Factor |
86.8 % |
83.3 % |
3.5 pp |
86.6 % |
0.1 pp |
|
Yield (US$ Cents) |
14.6 |
12.1 |
20.0 % |
15.1 |
-3.6 % |
|
PRASM (US$ Cents) |
12.6 |
10.1 |
25.0 % |
13.1 |
-3.4 % |
|
RASM (US$ Cents) |
13.1 |
10.5 |
25.5 % |
13.7 |
-3.9 % |
|
CASM (US$ Cents) |
10.2 |
8.7 |
17.2 % |
10.3 |
-0.9 % |
|
CASM Excl. Fuel (US$ Cents) |
6.2 |
6.1 |
2.1 % |
6.1 |
1.5 % |
|
Fuel Gallons Consumed (millions) |
78.2 |
81.2 |
-3.7 % |
77.7 |
0.6 % |
|
Avg. Price Per Fuel Gallon (US$) |
3.36 |
2.09 |
61.4 % |
3.52 |
-4.5 % |
|
Average Length of Haul (miles) |
1,987 |
2,065 |
-3.8 % |
2,005 |
-0.9 % |
|
Average Stage Length (miles) |
1,281 |
1,299 |
-1.4 % |
1,266 |
1.2 % |
|
Departures |
31,984 |
33,329 |
-4.0 % |
32,112 |
-0.4 % |
|
Block Hours |
104,626 |
110,089 |
-5.0 % |
104,822 |
-0.2 % |
|
Average Aircraft Utilization (hours) |
11.9 |
11.6 |
1.9 % |
11.8 |
0.8 % |
|
Operating Revenues (US$ millions) |
867.3 |
672.2 |
29.0 % |
890.6 |
-2.6 % |
|
Operating Profit (Loss) (US$ millions) |
193.2 |
112.9 |
71.2 % |
219.7 |
-12.0 % |
|
Operating Margin |
22.3 % |
16.8 % |
5.5 p.p |
24.7 % |
-2.4 p.p |
|
Net Profit (Loss) (US$ millions) |
121.5 |
89.4 |
35.9 % |
88.3 |
37.7 % |
|
Adjusted Net Profit (Loss) (US$ millions) (1) |
157.8 |
89.4 |
76.4 % |
177.7 |
-11.2 % |
|
Basic EPS (US$) |
3.07 |
2.11 |
45.9 % |
2.23 |
37.6 % |
|
Adjusted Basic EPS (US$) (1) |
3.99 |
2.11 |
89.4 % |
4.49 |
-11.2 % |
|
Shares for calculation of Basic EPS (000s) |
39,565 |
42,478 |
-6.9 % |
39,554 |
0.0 % |
(1) Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
(2) The Company believes that comparisons with 2019 are more relevant than year-over-year comparisons due to the significant impacts of the COVID-19 pandemic in 2020, 2021, and 2022.
FULL 1Q23 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
