Copa Airlines expects tough conditions in Latin America will continue to depress yields

Pressure from having to pull capacity from Venezuela and overall economic weakness in many regions within Latin America pressured Copa Airlines' financial results for 2014; but the airline still delivered a respectable 19.8% operating margin for the year and posted a decrease in unit costs.

Many of the elements that dragged down Copa's financial results in CY2014 remain intact - continued pressure on yields by moving a significant amount of capacity from Venezuela and weakened economies in Latin America. The airline has not made any adjustments to its projected 7% capacity growth for CY2015, but its expansion of supply is at a lower rate than 2014, and most of the growth stems from network changes Copa undertook in CY2014.

Although Copa's yield and unit revenue challenges will persist in the near future, overall the company remains in good financial shape to withstand the macroeconomic pressures weakening its results.