12-Aug-2010 12:44 PM

Copa Holdings profits weaker in 2Q2010; full year operating margin and RASM forecasts downgraded

Copa Holdings, the parent company of Copa Airlines and Aero Republica, announced (11-Aug-2010) the following financial highlights for the three months ended Jun-2010 (2Q2010):

  • Operating revenue: USD303.4 million, +9.3% year-on-year;
    • Passenger revenue: USD285.0 million, +8.9%;
    • Cargo, mail and other: USD18.4 million, +15.6%;
  • Operating expenses: USD270.9 million, +12.5%;
    • Fuel: USD82.6 million, +19.9%;
    • Salaries and benefits: USD43.0 million, +12.4%;
  • Operating profit: USD32.5 million, -11.6%;
  • Operating margin: 10.7%, -2.5 ppts;
  • Net profit: USD18.6 million, -66.3%;
  • Cash and cash equivalents: USD197.6 million, -33.8%;
  • Total assets: USD2,240.5 million, +10.2%;
  • Total liabilities: USD1,363.4 million, +6.1%;
  • Yield: USD 15.2 cents, -2.5% (mainly as a result of lower fares in Venezuela and the Colombian domestic market);
  • PRASM: USD 11.1 cents, +3.7%;
  • RASM: USD 11.9 cents, +4.1%;
  • CASM: USD 10.6 cents, +7.1% (mainly as a result of a stronger Colombian currency and expenses related to additional capacity mainly to support growth in 2H2010);
  • CASM ex fuel: USD 7.4 cents, +4.3%;
  • Passengers: 1.4 million, +12.6%;
  • Load factor: 73.1%, +4.4 ppts;
  • Breakeven load factor: 64.9%, +5.2 ppts;
  • Traffic (RPMs): 1,871 million, +11.6%;
  • Capacity (ASMs):  2,559 million, +5.0%.

Outlook for 2010:

  • Capacity (ASMs): 10.9 billion (guidance unchanged, an increase from 9.9 billion in 2009);
  • Average load factor: 77% (guidance unchanged, but an increase from 74.6% in 2009);
  • RASM: USD 12.7 cents (downward revision from USD 13.1 cents, but an increase from 2009 levels of USD 12.6 cents);
  • CASM ex fuel: USD 7.1 cents (guidance unchanged, but a reduction from USD 7.2 cents in 2009);
  • Operating margin: 19-21% (down from previous guidance of 20-22% and compared to 19.4% in 2009). [more]

Copa Holdings: "Copa Holdings' solid business model and strong competitive advantages continue to enhance its leadership position in Latin American commercial aviation and have consistently placed the company among the most profitable airlines in the world. Going forward, the company is well positioned to seize future growth opportunities and will continue to strengthen what is arguably the most complete and convenient network for intra-Latin American travel and take advantage of its superior airport infrastructure," Company Statement, 11-Aug-2010.

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