ATW Daily News

Copa nearly doubles third-quarter profit

Monday November 16, 2009

Copa Airlines and AeroRepublica parent Copa Holdings reported third-quarter net income of $43.1 million, up 87.4% from a $23 million profit in the year-ago quarter, an increase it attributed to "a solid and resilient business model based on developing the most comprehensive and convenient network for intra-Latin America travel and a very competitive cost structure." It recorded a $5.1 million noncash fuel hedge gain and a $14.6 million charge related to the retirement of four MD-80s as AeroRepublica transitions to an all E-190 fleet. Excluding these special items, its quarterly net profit would have been $52.6 million.

Third-quarter revenue declined 7.2% to $323.7 million and operating income fell 19.6% to $45.9 million from $57.1 million in the 2008 third quarter. Consolidated traffic grew 8.4% to 1.93 billion RPMs on a 10.9% increase in capacity to 2.55 billion ASMs. Load factor fell 1.9 points to 75.8%. Yield decreased 14.5% to 15.9 cents as RASM sank 16.5% to 12.7 cents and CASM slid 14.2% to 10.9 cents. Copa Airlines ended the quarter with 28 737s and 15 E-190s, while AeroRepublica had 11 E-190s and one MD-80.

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