ATW Daily News

Copa still going strong despite tough first quarter

Friday May 9, 2008

Healthy loads and yields helped Copa Airlines and AeroRepublica parent Copa Holdings mitigate the impact of rising fuel costs in the first quarter, when it suffered a relatively mild 18.7% decline in net income to $39.5 million from $48.6 million in the year-ago period.

Results the company characterized as "strong" were boosted by a 21.9% year-over-year increase in operating revenue to $295.9 million. Operating income slipped 14.9% to $51.7 million from $60.8 million as fuel costs climbed $21.7 million.

The airlines flew 1.62 billion RPMs during the quarter, up 13.5%, against an 11.2% climb in ASMs to 2.08 billion. Load factor rose 1.6 points to 78%. Yield was up 7.2% to 17.3 cents and unit revenue rose 9.6% to 14.2 cents. CASM increased 20.7% to 11.8 cents.

With the arrival of its 12th E-190 last month, Copa Airlines currently operates 38 aircraft. Its Colombian partner, which achieved IOSA certification last month, flies 13.

Separately, Copa controlling shareholder CIASA reached agreement with Continental Airlines to waive a provision of its 2006 shareholders agreement that restricts CO's right to sell its remaining shares of Copa's class A common stock. CO "will have the flexibility to sell its remaining shares" once a registration statement set to be filed with the US Securities and Exchange Commission becomes effective.

by Brian Straus

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