Source: Copa Holdings

Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the second quarter of 2021 (2Q21). 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 second quarter of 2019 (2Q19) (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$28.1 million for the quarter or US$0.66 per share.  Excluding special items, the Company would have reported a net loss of US$16.2 million or US$0.38 per share.  Special items include a US$33.9 million unrealized mark-to-market gain related to the Company’s convertible notes and a passenger revenue adjustment of US$10.4 million related to 2019 and 2020 sales.
  • Copa Holdings reported an operating profit of US$8.7 million for the quarter. Excluding the US$10.4 millionpassenger revenue adjustment, the company would have reported an operating loss of US$1.7 million.
  • Cash accretion, defined as cash proceeds minus disbursements, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, averaged approximately US$21 million per month during 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.
  • The Company’s flight operations, measured in terms of available seat miles (ASMs), represented approximately 48% of the capacity flown in the same period in 2019.
  • During the quarter, 3 Embraer 190 aircraft exited the fleet as part of a previously agreed sale to a third party. As of June 30, 2021, there was one remaining Embraer 190 aircraft pending to be delivered to the buyer.
  • Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa Holdingsended 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 92.1% and a flight completion factor of 99.5%, once again positioning itself amongst the best in the industry.

Subsequent Events

  • In July, Copa Airlines’ last remaining Embraer 190 aircraft was delivered to its new owner.
  • The Company entered into an agreement for the sale of 6 737-700s and has now decided to keep the remaining 6 737-700s.