Source: Copa

Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2021 (1Q21). 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 2021 (1Q21).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported a net loss of US$110.7 million for the quarter, or US$2.60 per share.  Excluding special items, the Company would have reported a net loss of US$95.1 million, or US$2.23 per share.  Special items for the quarter include a US$15.7 million unrealized mark-to-market loss related to the Company’s convertible notes.
  • Copa Holdings reported an operating loss of US$77.1 million for the quarter.
  • Cash consumption, defined as cash disbursements less proceeds, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, averaged approximately US$23 million per month during the quarter.
  • The Company ended the quarter with US$1.5 billion of available liquidity, consisting of approximately US$1.2 billion in cash, short-term and long-term investments, and committed and undrawn credit facilities of US$345 million.
  • The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion.
  • The Company’s flight operations, measured in terms of available seat miles (ASMs), represented approximately 39% of those in the same period in 2019.
  • During the quarter, 4 Embraer 190 aircraft exited the fleet as part of a previously agreed sale to a third party.  As of March 31, 2021, there were 4 remaining Embraer 190 aircraft sold that are expected to leave during the second quarter.
  • During the quarter, the Company took delivery of 6 Boeing 737 MAX 9.  Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa Holdings ended the quarter with a consolidated fleet of 81 aircraft – 68 Boeing 737-800s and 13 Boeing 737 MAX 9s, compared to a total fleet of 102 aircraft at the end of the first quarter of 2020.
  • During the quarter, Copa Airlines had an on-time performance of 95.0% and a flight-completion factor of 99.3%, once again positioning itself among the best in the industry.

Subsequent Events

  • In April, the Company delivered 1 Embraer 190 aircraft, out of 14 that were sold to a third party.

 

Consolidated Financial
& Operating Highlights		 1Q21 1Q20 Variance vs. 1Q20 4Q20 Variance vs. 4Q20 1Q19 Variance vs. 1Q19
Revenue Passengers Carried (000s) 924 2,118 -56.4% 681 35.6% 2,620 -64.7%
RPMs (millions) 1,716 4,473 -61.6% 1,259 36.3% 5,345 -67.9%
ASMs (millions) 2,481 5,491 -54.8% 1,684 47.3% 6,415 -61.3%
Load Factor 69.2% 81.5% -12.3 p.p. 74.8% -5.6 p.p. 83.3% -14.1 p.p.
Yield (US$ Cents) 10.1 12.8 -21.5% 11.7 -13.9% 12.1 -16.9%
PRASM (US$ Cents) 7.0 10.5 -33.3% 8.8 -20.4% 10.1 -31.0%
RASM (US$ Cents) 7.5 10.8 -31.0% 9.4 -20.6% 10.5 -28.6%
CASM (US$ Cents) 10.6 9.0 17.1% 15.1 -29.7% 8.7 21.5%
CASM Excl. Fuel (US$ Cents) 8.5 6.6 30.1% 13.4 -36.3% 6.1 40.5%
Fuel Gallons Consumed (millions) 29.08 70.02 -58.5% 20.75 40.1% 81.2 -64.2%
Avg. Price Per Fuel Gallon (US$) 1.75 1.95 -9.9% 1.41 24.2% 2.09 -15.9%
Average Length of Haul (miles) 1,858 2,112 -12.0% 1,849 0.5% 2,040 -8.9%
Average Stage Length (miles) 1,256 1,308 -3.9% 1,211 3.7% 1,299 -3.3%
Departures 12,372 28,286 -56.3% 8,795 40.7% 33,329 -62.9%
Block Hours 38,851 93,568 -58.5% 26,870 44.6% 110,089 -64.7%
Average Aircraft Utilization (hours) (2) 6.6 10.7 -38.6% 5.2 26.8% 12 -43.9%
Operating Revenues (US$ millions) 185.7 595.5 -68.8% 158.6 17.0% 672.2 -72.4%
Operating Profit (Loss) (US$ millions) -77.1 98.7 -178.1% -95.1 -18.9% 112.9 -168.3%
Adjusted Operating Profit (Loss) (US$ millions) (1) -77.1 98.7 -178.1% -91.5 -15.8% 112.9 -168.3%
Operating Margin -41.5% 16.6% -58.1 p.p. -59.9% 18.4 p.p. 16.8% -58.3 p.p.
Adjusted Operating Margin (1) -41.5% 16.6% -58.1 p.p. -57.7% 16.2 p.p. 16.8% -58.3 p.p.
Net Profit (Loss) (US$ millions) -110.7 74.3 -249.1% -177.3 -37.5% 89.4 -223.8%
Adjusted Net Profit (Loss) (US$ millions) (1) -95.1 74.3 -228.0% -85.2 11.6% 89.4 -206.3%
Basic EPS (US$) -2.60 1.75 -248.8% -4.17 -37.6% 2.11 -223.5%
Adjusted Basic EPS (US$) (1) -2.23 1.75 -227.8% -2.00 11.4% 2.11 -206.1%
Shares for calculation of Basic EPS (000s) 42,571 42,501 0.2% 42,511 0.1% 42,478 0.2%
(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.