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Copa Holdings Reports Fourth-Quarter Financial Results

1. Copa Holdings reported a net profit of $166.2 million in 4Q24. 2. Operating profit decreased 4.7% to $204.2 million in 4Q24. 3. Capacity grew 7.2% while revenue per available seat mile fell 10.4%. 4. The company ended 2024 with $1.4 billion in cash, 42% of revenue. 5. Copa Airlines recognized as the most on-time airline in Latin America.

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The company showed profit declines. Historical examples show mixed reactions with similar earnings changes.

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Financial results influence investor sentiment and stock performance; notable but not drastic changes.

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PANAMA CITY, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter (4Q24) and the full year 2024. 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 fourth quarter of 2023 (4Q23). OPERATING AND FINANCIAL HIGHLIGHTS Copa Holdings reported a net profit of US$166.2 million or US$3.99 per share for 4Q24. For the full year 2024, the Company reported a net profit of US$608.5 million or US$14.56 per share, compared to a full-year adjusted net profit of US$671.0 million or US$16.68 per share in 2023.The Company reported an operating profit of US$204.2 million and an operating margin of 23.3% for the quarter. For the full year 2024, the Company reported an operating profit of US$753.4 million and an operating margin of 21.9%, compared to a full-year operating profit of US$807.2 million and an operating margin of 23.4% in 2023.Capacity, measured in available seat miles (ASMs), increased by 7.2% in 4Q24 compared to 4Q23.Operating cost per available seat mile excluding fuel (Ex-fuel CASM) came in at 5.9 cents in the quarter, a decrease of 2.6% when compared to 4Q23.Revenue per available seat mile (RASM) came in at 11.3 cents in the quarter, a 10.4% decrease compared to 4Q23.The Company ended the year with approximately US$1.4 billion in cash, short-term and long-term investments, which represent 42% of the last twelve months’ revenues.The Company closed the year with total debt, including lease liabilities, of US$2.0 billion, while the Adjusted Net Debt to EBITDA ratio ended at 0.5 times.In 2024, the Company repurchased US$87 million worth of shares under its ongoing US$200 million share repurchase program authorized by the Board of Directors. This represents approximately 2% of the Company’s total outstanding shares as of year-end 2024.During the fourth quarter, the Company took delivery of two Boeing 737 MAX 8 aircraft, ending the year with a consolidated fleet of 112 aircraft – 67 Boeing 737-800s, 32 Boeing 737 MAX 9s, 9 Boeing 737-700s, 3 Boeing 737 MAX 8, and 1 Boeing 737-800 freighter. Subsequent Events On February 12, 2025, the Board of Directors of Copa Holdings approved a 2025 quarterly dividend payment of US$1.61 per share, maintaining last year’s dividend payment. Dividends will be distributed in March, June, September, and December. The first quarterly dividend will be paid on March 14, 2024, to shareholders on record as of February 28, 2024.In January, Copa Airlines was recognized by Cirium for the tenth time as the most on-time airline in Latin America in 2024. Copa Airlines’ on-time performance of 88.2% for the year was the highest of any carrier in the Americas and the third best in the world, reaffirming its position as one of the leading airlines in the industry.After an extensive internal and external search, the Company is pleased to announce the appointment of Peter Donkersloot as Chief Financial Officer effective March 10, 2025. Currently Copa’s Vice President of Human Resources, Peter brings over 20 years of international experience across the Americas, serving as General Manager for various companies across the continent and holding key positions in Commercial, Operations, Logistics, Risk Assessment, and Financial Planning. Peter holds a Global MBA from the Thunderbird School of Global Management and a degree in Industrial Engineering from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM). Consolidated Financial & Operating Highlights4Q244Q23Variance Vs 4Q233Q24Variance Vs 3Q24YTD24YTD23Variance Vs YTD23Revenue Passengers Carried (000s)3,4443,3104.0%3,449(0.2)%13,46712,4428.2%Revenue Passengers OnBoard (000s)5,1684,9304.8%5,187(0.4)%20,11518,5668.3%RPMs (millions)6,6826,2636.7%6,711(0.4)%25,96624,0528.0%ASMs (millions)7,7477,2287.2%7,785(0.5)%30,07727,7008.6%Load Factor86.3%86.7%-0.4 p.p86.2%0.1 p.p86.3%86.8%-0.5 p.pYield (US$ Cents)12.514.0(10.8)%12.22.3%12.713.8(8.1)%PRASM (US$ Cents)10.812.1(11.2)%10.52.3%10.912.0(8.6)%RASM (US$ Cents)11.312.6(10.4)%11.03.1%11.512.5(8.2)%CASM (US$ Cents)8.79.7(10.1)%8.7(0.7)%8.99.6(6.5)%CASM Excl. Fuel (US$ Cents)5.96.0(2.6)%5.73.1%5.86.0(3.0)%Fuel Gallons Consumed (millions)91.285.66.5%91.3(0.1)%354.5327.68.2%Avg. Price Per Fuel Gallon (US$)2.383.08(22.6)%2.60(8.3)%2.663.02(11.9)%Average Length of Haul (miles)1,9401,8922.6%1,946(0.3)%1,9281,933(0.3)%Average Stage Length (miles)1,2601,2292.6%1,267(0.6)%1,2571,2510.5%Departures37,59636,2073.8%37,4780.3%146,607137,0447.0%Block Hours121,549115,1185.6%120,9750.5%470,751438,9137.3%Average Aircraft Utilization (hours)12.011.90.1%12.0—%11.911.9(0.4)%Operating Revenues (US$ millions)877.1912.8(3.9)%854.72.6%3,444.63,457.0(0.4)%Operating Profit (Loss) (US$ millions)204.2214.3(4.7)%173.717.5%753.4807.2(6.7)%Operating Margin23.3%23.5%-0.2 p.p20.3%3.0 p.p21.9%23.4%-1.5 p.pNet Profit (Loss) (US$ millions)166.2187.7(11.5)%146.013.8%608.5514.118.4%Adjusted Net Profit (Loss) (US$ millions) (1)166.2184.3(9.8)%146.013.8%608.5671.0(9.3)%Basic EPS (US$)3.994.45(10.5)%3.5013.9%14.5612.7813.9%Adjusted Basic EPS (US$) (1)3.994.37(8.9)%3.5013.9%14.5616.68(12.7)%Shares for calculation of Basic EPS (000s)41,69642,150(1.1) %41,728(0.1)%41,79640,2283.9% (1) Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures. FULL 4Q24 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: https://copa.gcs-web.com/financial-information/quarterly-results 4Q24 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST Date:February 13, 2025Time:11:00 AM US ET (11:00 AM Local Time)Join by phone:https://register.vevent.com/register/BI3d3cbd8e7b2244fdad7627b4aa596d8aWebcast (listen-only):https://copa.gcs-web.com/events-and-presentationsSpeakers:Pedro Heilbron, Chief Executive Officer José Montero, Chief Financial Officer 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) 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)  UnauditedUnaudited%Unaudited%UnauditedAudited% 4Q244Q23Change3Q24ChangeYTD24YTD23ChangeOperating Revenues        Passenger revenue833,189875,257(4.8%)818,3811.8%3,291,7933,316,362(0.7%)Cargo and mail revenue28,96626,5349.2%24,44618.5%100,50797,1053.5%Other operating revenue14,89611,04934.8%11,88125.4%52,33043,53820.2%Total Operating Revenue877,052912,840(3.9%)854,7082.6%3,444,6293,457,005(0.4%)         Operating Expenses        Fuel219,232264,166(17.0%)238,714(8.2%)949,309995,862(4.7%)Wages, salaries, benefits and other employees' expenses123,575119,6693.3%117,8774.8%470,644436,5267.8%Passenger servicing25,74824,1486.6%26,232(1.8%)109,24389,14622.5%Airport facilities and handling charges64,65559,0109.6%65,029(0.6%)252,798221,87813.9%Sales and distribution50,54855,111(8.3%)49,7161.7%207,968227,171(8.5%)Maintenance, materials and repairs34,56731,27610.5%34,860(0.8%)105,936132,531(20.1%)Depreciation and amortization85,08580,2616.0%82,7972.8%330,710306,1148.0%Flight operations34,67527,98723.9%31,9018.7%129,521109,89217.9%Other operating and administrative expenses34,77836,875(5.7%)33,8712.7%135,110130,6563.4%Total Operating Expense672,862698,504(3.7%)680,998(1.2%)2,691,2382,649,7771.6%         Operating Profit/(Loss)204,190214,335(4.7%)173,71017.5%753,392807,228(6.7%)         Non-operating Income (Expense):        Finance cost(21,498)(20,408)5.3%(23,523)(8.6%)(84,493)(158,216)(46.6%)Finance income16,06414,28912.4%15,5653.2%58,91250,20917.3%Gain (loss) on foreign currency fluctuations(11,489)(272)4125.5%(2,491)361.1%(33,991)3,076(1205.0%)Net change in fair value of derivatives2,706——%(762)(455.0%)4,469(98,347)(104.5%)Other non-operating income (expense)(501)3,126(116.0%)6,787(107.4%)7,9407,15311.0%Total Non-Operating Income/(Expense)(14,718)(3,264)350.9%(4,425)232.6%(47,163)(196,126)(76.0%)         Profit before taxes189,471211,071(10.2%)169,28511.9%706,229611,10215.6%         Income tax expense(23,290)(23,378)(0.4%)(23,259)0.1%(97,703)(97,004)0.7%         Net Profit/(Loss)166,182187,693(11.5%)146,02613.8%608,526514,09818.4% Copa Holdings, S. A. and Subsidiaries Consolidated statement of financial position(In US$ thousands)  December 2024December 2023ASSETS(Unaudited)(Audited)Cash and cash equivalents613,313206,375Short-term investments585,919708,809Total cash, cash equivalents and short-term investments1,199,232915,184Accounts receivable, net166,014156,720Accounts receivable from related parties2,9762,527Expendable parts and supplies, net132,341116,604Prepaid expenses42,92644,635Prepaid income tax11,71266Other current assets21,71132,227 377,681352,780TOTAL CURRENT ASSETS1,576,9131,267,963Long-term investments248,936258,934Long-term prepaid expenses8,2379,633Property and equipment, net3,458,2613,238,632Right of use assets309,302281,146Intangible, net96,75487,986Net defined benefit assets1,0585,346Deferred tax assets20,73630,148Other Non-Current Assets22,11317,048TOTAL NON-CURRENT ASSETS4,165,3973,928,872TOTAL ASSETS5,742,3105,196,836LIABILITIES  Loans and borrowings254,854222,430Current portion of lease liability59,10368,304Accounts payable227,095182,303Accounts payable to related parties1,6241,228Air traffic liability616,105611,856Frequent flyer deferred revenue139,423124,815Taxes Payable55,50544,210Accrued expenses payable62,67364,940Income tax payable9,82826,741Other Current Liabilities1,2721,403TOTAL CURRENT LIABILITIES1,427,4821,348,229   Loans and borrowings long-term1,415,9531,240,261Lease Liability270,594215,353Deferred tax Liabilities37,49736,369Other long - term liabilities217,626234,474TOTAL NON-CURRENT LIABILITIES1,941,6701,726,457TOTAL LIABILITIES3,369,1523,074,685EQUITY  Class A - 34,195,704 issued and 30,234,831 outstanding23,24423,201Class B - 10,938,1257,4667,466Additional Paid-In Capital214,542209,102Treasury Stock(291,438)(204,130)Retained Earnings1,826,5651,581,739Net profit608,526514,098Other comprehensive loss(15,748)(9,326)TOTAL EQUITY2,373,1582,122,150TOTAL EQUITY LIABILITIES5,742,3105,196,836 Copa Holdings, S. A. and Subsidiaries Consolidated statement of cash flowsFor the twelve months ended(In US$ thousands)  202420232022 (Unaudited)(Audited)(Audited)Cash flow from operating activities 969,729 1,020,974 737,188Cash flow (used in) investing activities (343,142) (542,995) (552,151)Cash flow (used in) financing activities (219,649) (394,028) (273,694)Net increase (decrease) in cash and cash equivalents 406,938 83,951 (88,657)Cash and cash equivalents at January 1 206,375 122,424 211,081Cash and cash equivalents at December 31$613,313$206,375$122,424    Short-term investments 585,919 708,809 812,323Long-term investments 248,936 258,934 202,056Total cash and cash equivalents and investments at December 31$1,448,168$1,174,119$1,136,803 Copa Holdings, S.A. NON-IFRS FINANCIAL MEASURE RECONCILIATION This press release includes the following non-IFRS financial measures: Adjusted Net Profit, Adjusted Basic EPS, and 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, in particular operating profit, and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures: Reconciliation of Adjusted Net Profit4Q244Q233Q24YTD24YTD23      Net Profit as Reported$166,182$187,693$146,026$608,526$514,098Interest expense related to the settlement of the convertible notes$—$—$—$—$64,894Net change in fair value of derivatives$—$—$—$—$98,347Net change in fair value of financial investments$—$(3,372)$—$—$(6,349)Adjusted Net Profit$166,182$184,321$146,026$608,526$670,990      Reconciliation of Adjusted Basic EPS4Q244Q233Q24YTD24YTD23      Adjusted Net Profit$166,182$184,321$146,026$608,526$670,990Shares used for calculation of Basic EPS 41,696 42,150 41,728 41,796 40,228Adjusted Basic Earnings per share (Adjusted Basic EPS)$3.99$4.37$3.50$14.56$16.68      Reconciliation of Operating Costs per ASM     Excluding Fuel (CASM Excl. Fuel)4Q244Q233Q24YTD24YTD23      Operating Costs per ASM as Reported (in US$ Cents) 8.7 9.7 8.7 8.9 9.6Aircraft Fuel Cost per ASM (in US$ Cents) 2.8 3.7 3.1 3.2 3.6Operating Costs per ASM excluding fuel (in US$ Cents) 5.9 6.0 5.7 5.8 6.0

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