Copa Holdings, which manages Copa Airlines and Wingo, reported its financial and operating results for the second quarter of the year. The company exceeded market expectations and generated revenues of 693.4 million dollars between April and June.
It also said it expects to re-establish its full pre-pandemic capacity during the third quarter of 2022. In this regard, Copa Holdings highlighted the strong growth in demand and sustained recovery in recent months. According to the company, a record operating margin of between 16% to 18% could be achieved in the next three months.
The comparisons were established with respect to the first quarter of 2019, which the company considered more relevant than the same periods of 2020 and 2021, due to the impact of the COVID-19 pandemic.
Key financial and operating results (in USD)
- Total revenues reached 693.4 million, up 7.5% compared to the second quarter of 2019.
- Adjusted net income, excluding special items, was 13.2 million, about 0.32 cents per share. In the same period of 2019, it had been 50.9 million and 1.20 cents per share.
- Operating income was 42.3 million, with an operating margin of 6.1%. These figures were also below those of between April and June 2019, when Copa Holdings reported an operating profit of 82.6 million and an operating margin of 12.8%.
- Passenger revenues were 5.9% higher than in the second quarter of 2019. Meanwhile, cargo revenues were 62.4% higher compared to that period, in line with the overall growth trend in this segment.
- Operating cost per available seat mile (CASM) increased 19.9% compared to the second quarter of 2019. Between April and June this year, it reached 10.9 cents due to, in particular, the increase in fuel prices. Excluding fuel (Ex-fuel CASM), the cost decreased by 4.6% to 6 cents.
- The company’s total capacity, measured in terms of available seat miles (ASM), has already reached 96.6% of that reported for the same period in 2019.
- As reported by Copa Holdings, the company ended the quarter with approximately 1.1 billion in cash and short and long-term investments. The sum represents 47% of the revenues recorded during the last twelve months.
- Total debt at the end of the period, including lease liabilities, reached 1.6 billion.
- During the period, the company operated 85.9% of its services on time. Its flight completion factor was 99.8%.
Copa Holdings fleet
- At the end of the quarter, it had a total of 94 aircraft in operation: 68 Boeing 737-800 (one of them in cargo version), 17 Boeing 737 MAX-9 and 9 Boeing 737-700 (three of them in temporary storage).
- Copa Airlines took delivery of one new Boeing 737 MAX-9 in the quarter.
- The company expects to add four more aircraft of this type in the second half of this year. Meanwhile, planned deliveries for 2023 include 11 Boeing 737 MAX-9 and two Boeing 737 MAX-8. If all goes according to plan, it could have a total of 108 aircraft in operation by the end of next year.
See also: LATAM reduces losses and maintains its recovery during the second quarter
