Source: Copa

Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the third quarter of 2021 (3Q21). 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 third quarter of 2019 (3Q19) (which the Company believes are more relevant than year-over-year comparisons due to the significant impacts in 2020 of the COVID-19 pandemic).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported a net profit of US$8.2 million for the quarter or US$0.19 per share. Excluding special items, the Company would have reported a net profit of US$29.9 million or US$0.70 per share.  Special items include a US$32.1 million unrealized mark-to-market loss related to the Company’s convertible notes and a passenger revenue adjustment of (US$10.4) million corresponding to unredeemed coupons from 2019 and 2020 sales.
  • Copa Holdings reported an operating profit of US$59.0 million for the quarter and an operating margin of 13.3%. Excluding the US$10.4 million passenger unredeemed coupon revenue adjustment, the Company would have reported an operating profit of US$48.6 million and an 11.2% operating margin.
  • Operating cost per available seat mile (CASM) decreased 12.4% vs. 2Q21 to 8.8 cents. While CASM, excluding fuel costs, decreased 18.6% to 6.2 cents.
  • Cash buildup, defined as cash proceeds minus disbursements, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, resulted in US$54 million for the quarter.
  • The Company ended the quarter with US$1.6 billion of available liquidity, consisting of approximately US$1.3 billion in cash, short-term and long-term investments, and US$345 million of committed and undrawn credit facilities.
  • The Company closed the quarter with total debt, including lease liabilities, of US$1.6 billion.
  • Flight operations, measured in terms of available seat miles (ASMs), represented 68.9% of the capacity flown over the same period in 2019.
  • During the quarter, the Company announced three new destinations starting December 2021 — Atlanta in the U.S.and Armenia and Cucuta in Colombia.
  • During the quarter, the Company exited the last Embraer 190 in its fleet and delivered two Boeing 737-700s to their new owner.
  • Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa Holdingsended the quarter with a consolidated fleet of 87 aircraft – 68 Boeing 737-800s, 13 Boeing 737 MAX 9s, and 6 Boeing 737-700s, compared to a fleet of 102 aircraft the Company operated prior to the COVID-19 pandemic.
  • The Company agreed with Boeing to accelerate the delivery of 12 Boeing 737 MAX 9s from its current order, two in 2022 and the other ten between 2023 and 2025.
  • Copa Airlines had an on-time performance for the quarter of 89.4% and a flight completion factor of 99.84%, once again positioning itself amongst the best in the industry.
Consolidated Financial
& Operating Highlights		 3Q21 3Q19 (3) Variance
vs. 3Q19		 2Q21 Variance
vs. 2Q21
Revenue Passengers Carried (000s) 1,823 2,703 -32.6% 1,175 55.1%
RPMs (millions) 3,485 5,466 -36.2% 2,268 53.7%
ASMs (millions) 4,396 6,383 -31.1% 2,949 49.1%
Load Factor 79.3% 85.6% -6.4 p.p. 76.9% 2.4 p.p.
Yield (US$ Cents) 12.0 12.5 -4.5% 12.4 -3.4%
PRASM (US$ Cents) 9.5 10.7 -11.5% 9.5 -0.4%
RASM (US$ Cents) 10.1 11.1 -8.8% 10.3 -1.9%
CASM (US$ Cents) 8.8 9.0 -2.6% 10.0 -12.4%
CASM Excl. Fuel (US$ Cents) 6.2 6.2 -0.2% 7.6 -18.6%
Fuel Gallons Consumed (millions) 52.0 82.0 -36.5% 35.3 47.4%
Avg. Price Per Fuel Gallon (US$) 2.13 2.16 -1.0% 1.98 7.7%
Average Length of Haul (miles) 1,912 2,022 -5.4% 1,930 -0.9%
Average Stage Length (miles) 1,213 1,295 -6.3% 1,194 1.6%
Departures 22,559 33,373 -32.4% 15,366 46.8%
Block Hours 69,308 109,614 -36.8% 46,426 49.3%
Average Aircraft Utilization (Hours) (2) 10.7 11.5 -7.2% 8.0 33.7%
Operating Revenues (US$ millions) 445.0 708.2 -37.2% 304.3 46.3%
Operating Profit (Loss) (US$ millions) 59.0 132.9 -55.6% 8.7 575.5%
Adjusted Operating Profit (Loss) (US$ millions) (1) 48.6 132.9 -63.4% (1.7) -3031.1%
Operating Margin 13.3% 18.8% -5.5 p.p. 2.9% 10.4 p.p.
Adjusted Operating Margin (1) 11.2% 18.8% -7.6 p.p. -0.6% 11.8 p.p.
Net Profit (Loss) (US$ millions) 8.2 104.0 -92.1% 28.1 -70.6%
Adjusted Net Profit (Loss) (US$ millions) (1) 29.9 104.0 -71.2% (16.2) -284.6%
Basic EPS (US$) 0.19 2.45 -92.1% 0.66 -70.6%
Adjusted Basic EPS (US$) (1) 0.70 2.45 -71.3% (0.38) -284.6%
Shares  for calculation of Basic EPS (000s) 42,649 42,487 0.4% 42,651 0.0%
(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.
(3)  The Company believes that comparisons with 2019 are more relevant than year-over-year comparisons due to the significant impacts in 2020 of the COVID-19 pandemic.