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Copa Holdings Reports First-Quarter Financial Results

1. Copa reported a net profit increase to $176.8 million in 1Q25. 2. Operating profit declined by 1.0% compared to 1Q24. 3. Capacity rose by 9.5% year-over-year with a load factor of 86.4%. 4. Operating costs per ASM (ex-fuel) decreased, improving operational efficiency. 5. Copa announced a dividend of $1.61, demonstrating confidence in financial stability.

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FAQ

Why Bullish?

Despite slight revenue dips, profitability and capacity growth is solid. A similar trend was observed in past earnings, boosting investor confidence.

How important is it?

The combination of profit increase, financial metrics, and dividend declaration signifies strong performance that could attract investors.

Why Short Term?

The financial results indicate immediate growth, likely influencing price in coming weeks.

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LUVDALAALUAL
PANAMA CITY, May 07, 2025 (GLOBE NEWSWIRE) -- Copa Holdings1, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2025 (1Q25). Key highlights include: Net profit of US$176.8 million or US$4.28 per share, a US$0.7 million increase compared to 1Q24.Operating profit of US$213.8 million and an operating margin of 23.8%, a 1.0% and 0.4 percentage point decrease, respectively, compared to 1Q24.Capacity, measured in available seat miles (ASMs), increased by 9.5% year over year.Operating cost per available seat mile excluding fuel (Ex-fuel CASM) decreased 4.3% compared to 1Q24 to 5.8 cents.Revenue per available seat mile (RASM) decreased 8.1% compared to 1Q24 to 11.5 cents.The Company ended the quarter with approximately US$1.3 billion in cash, short-term and long-term investments, which represent 39% of the last twelve months’ revenues.The Company closed 1Q25 with total debt, including lease liabilities, of US$1.9 billion, while the Adjusted Net Debt to EBITDA ratio ended at 0.5 times.The Company ended the quarter with a consolidated fleet of 112 aircraft: 67 Boeing 737-800, 32 Boeing 737 MAX-9, 9 Boeing 737-700, 3 Boeing 737 MAX-8, and 1 Boeing 737-800 freighter.Copa Holdings exercised options for six additional Boeing 737 MAX-8 aircraft expected to be delivered in 2028. This increases the Company's firm outstanding order book to 57 aircraft.Copa Airlines had an on-time performance for the quarter of 90.8% and a flight completion factor of 99.9%, once again positioning itself among the best in the industry. Subsequent events On May 7, 2025, the Board of Directors of Copa Holdings ratified its second dividend payment for the year of US$1.61 per share. Dividends will be paid on June 13, 2025, to shareholders on record as of May 30, 2025.       Copa Holdings, S. A. and Subsidiaries Consolidated Operating and Financial Statistics       1Q251Q24% Change4Q24% ChangeRevenue Passengers Carried (000s)3,512 3,272 7.4%3,444 2.0%Revenue Passengers OnBoard (000s)5,208 4,790 8.7%5,168 0.8%RPMs (millions)6,743 6,127 10.1%6,682 0.9%ASMs (millions)7,801 7,121 9.5%7,747 0.7%Load Factor86.4%86.0%0.4 p.p86.3%0.2 p.pYield (US$ Cents)12.7 14.0 (9.1)%12.5 2.0%PRASM (US$ Cents)11.0 12.1 (8.7)%10.8 2.2%RASM (US$ Cents)11.5 12.5 (8.1)%11.3 1.6%CASM (US$ Cents)8.8 9.5 (7.7)%8.7 0.8%CASM Excl. Fuel (US$ Cents)5.8 6.1 (4.3)%5.9 (1.2)%Fuel Gallons Consumed (millions)91.0 84.4 7.8%91.2 (0.3)%Avg. Price Per Fuel Gallon (US$)2.54 2.90 (12.4)%2.38 6.6%Average Length of Haul (miles)1,920 1,873 2.5%1,940 (1.1)%Average Stage Length (miles)1,260 1,246 1.1%1,260 —%Departures37,829 35,220 7.4%37,596 0.6%Block Hours121,611 112,164 8.4%121,549 0.1%Average Aircraft Utilization (hours)12.1 11.6 3.8%12.0 0.9%Operating Revenues (US$ millions)899.2 893.5 0.6%878.6 2.3%Operating Profit (Loss) (US$ millions)213.8 216.0 (1.0)%203.7 4.9%Operating Margin23.8%24.2%-0.4 p.p23.2%0.6 p.pNet Profit (Loss) (US$ millions)176.8 176.1 0.4%165.8 6.6%Basic EPS (US$)4.28 4.19 2.2%3.98 7.7%Shares for calculation of Basic EPS (000s)41,292 42,052 (1.8)%41,696 (1.0)%          Full 1Q25 Earnings Release available for download at: https://copa.gcs-web.com/financial-information/quarterly-results 1Q25 Earnings Conference Call and Webcast About Copa Holdings Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information, visit: www.copaair.com. CONTACT: Copa Holdings S.A. Investor Relations:Ph: 011 507 304-2774www.copaair.com (IR section) Cautionary statement regarding forward-looking statements This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates, and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve several business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings’ filed disclosure documents and are, therefore, subject to change without prior notice. CPA-G          Copa Holdings, S. A. and Subsidiaries Consolidated statement of profit or loss (In US$ thousands)          Unaudited Unaudited %Unaudited % 1Q25 1Q24 Change 4Q24 ChangeOperating Revenues        Passenger revenue859,025  858,725  —%834,758  2.9%Cargo and mail revenue25,694  21,910  17.3%28,966  (11.3%)Other operating revenue14,462  12,831  12.7%14,896  (2.9%)Total Operating Revenue899,181  893,467  0.6%878,620  2.3%         Operating Expenses        Fuel232,160  245,352  (5.4%)219,232  5.9%Wages, salaries, benefits and other employees' expenses117,517  114,314  2.8%123,575  (4.9%)Passenger servicing25,024  29,684  (15.7%)25,748  (2.8%)Airport facilities and handling charges65,657  60,347  8.8%64,655  1.5%Sales and distribution50,261  55,494  (9.4%)50,548  (0.6%)Maintenance, materials and repairs39,434  25,627  53.9%34,567  14.1%Depreciation and amortization86,284  83,365  3.5%85,085  1.4%Flight operations33,749  31,029  8.8%34,675  (2.7%)Other operating and administrative expenses35,27  32,270  9.3%36,78  (4.1%)Total Operating Expense685,360  677,482  1.2%674,871  1.6%         Operating Profit/(Loss)213,822  215,985  (1.0%)203,749  4.9%         Non-operating Income (Expense):        Finance cost(23,233) (18,840) 23.3%(21,498) 8.1%Finance income15,792  13,746  14.9%16,064  (1.7%)Gain (loss) on foreign currency fluctuations1,370  (3,914) nm(11,489) nmNet change in fair value of derivatives(2,434) (8) nm2,706  nmOther non-operating income (expense)1,428  (112) nm(501) nmTotal Non-Operating Income/(Expense)(7,077) (9,127) (22.5%)(14,718) (51.9%)         Profit before taxes206,744  206,858  (0.1%)189,031  9.4%         Income tax expense(29,978) (30,792) (2.6%)(23,262) 28.9%         Net Profit/(Loss)176,766  176,066  0.4%165,769  6.6%                   Copa Holdings, S. A. and Subsidiaries Consolidated statement of financial position(In US$ thousands)     March 2025 December 2024ASSETS(Unaudited) (Audited)Cash and cash equivalents164,820  613,313 Short-term investments751,525  585,919 Total cash, cash equivalents and short-term investments916,345  1,199,232 Accounts receivable, net172,525  166,014 Accounts receivable from related parties5,526  2,976 Expendable parts and supplies, net145,040  132,341 Prepaid expenses51,568  42,926 Prepaid income tax4,159  11,678 Other current assets26,461  21,711  405,279  377,647 TOTAL CURRENT ASSETS1,321,625  1,576,879 Long-term investments425,821  248,936 Long-term prepaid expenses7,648  8,237 Property and equipment, net3,564,026  3,458,261 Right of use assets293,337  309,302 Intangible, net97,483  96,754 Net defined benefit assets1,513  1,058 Deferred tax assets15,695  20,749 Other Non-Current Assets20,661  22,113 TOTAL NON-CURRENT ASSETS4,426,183  4,165,410 TOTAL ASSETS5,747,808  5,742,289 LIABILITIES   Loans and borrowings232,447  254,854 Current portion of lease liability60,156  59,103 Accounts payable188,886  229,104 Accounts payable to related parties1,012  1,624 Air traffic liability607,457  621,895 Frequent flyer deferred revenue142,773  132,064 Taxes Payable60,599  55,505 Accrued expenses payable33,074  62,673 Income tax payable12,861  9,801 Other Current Liabilities1,831  1,272 TOTAL CURRENT LIABILITIES1,341,097  1,427,895     Loans and borrowings long-term1,390,774  1,415,953 Lease Liability255,831  270,594 Deferred tax Liabilities48,803  37,476 Other long - term liabilities229,921  217,626 TOTAL NON-CURRENT LIABILITIES1,925,329  1,941,649 TOTAL LIABILITIES3,266,426  3,369,544 EQUITY   Class A - 34,219,911 issued and 30,232,861 outstanding23,271  23,244 Class B - 10,938,1257,466  7,466 Additional Paid-In Capital216,435  214,542 Treasury Stock(294,993) (291,438)Retained Earnings2,368,185  1,826,565 Net profit176,766  608,114 Other comprehensive loss(15,748) (15,748)TOTAL EQUITY2,481,382  2,372,745 TOTAL EQUITY LIABILITIES5,747,808  5,742,289              Copa Holdings, S. A. and Subsidiaries Consolidated statement of cash flowsFor the three months ended(In US$ thousands)              2025   2024   2023  (Unaudited) (Unaudited) (Unaudited)Cash flow from operating activities 205,477   200,998   203,419 Cash flow (used in) investing activities (518,052)  (78,334)  (62,868)Cash flow (used in) financing activities (135,918)  (158,514)  (20,661)Net (decrease) increase in cash and cash equivalents (448,493)  (35,850)  119,890 Cash and cash equivalents at January 1 613,313   206,375   122,424 Cash and cash equivalents at March 31$164,820  $170,525  $242,314       Short-term investments 751,525   630,640   773,493 Long-term investments 425,821   301,192   166,481 Total cash and cash equivalents and investments at March 31$1,342,166  $1,102,357  $1,182,288              Copa Holdings, S.A. NON-IFRS FINANCIAL MEASURE RECONCILIATION This press release includes the following non-IFRS financial measures: Operating CASM Excluding Fuel. This supplemental information is presented because we believe it is a useful indicator of our operating performance and is useful in comparing our performance with other companies in the airline industry. These measures should not be considered in isolation and should be considered together with comparable IFRS measures. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:       Reconciliation of Operating Costs per ASM     Excluding Fuel (CASM Excl. Fuel)1Q25 1Q24 4Q24      Operating Costs per ASM as Reported (in US$ Cents)8.8 9.5 8.7Aircraft Fuel Cost per ASM (in US$ Cents)3.0 3.4 2.8Operating Costs per ASM excluding fuel (in US$ Cents)5.8 6.1 5.9       ________________________1 The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The financial information presented in this release, 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 2024 (1Q24).

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