Copa Holdings (CPA) Q2 2024 earnings summary

Executive summary

• Achieved a 19.5% Q2 operating margin, the second-best Q2 in company history, with industry-leading financial and operational results.

• Net profit for Q2 2024 reached $120.3 million ($2.88 per share), with operating profit of $159.5 million.

• Passenger traffic grew 10.6% year-over-year, with capacity up 9.7% and load factor rising 0.7 points to 86.8%.

• Expanded network to 85 destinations in 32 countries, adding Raleigh-Durham, Florianopolis, and Tulum in Q2.

• Recognized by Skytrax for the ninth consecutive year as the best airline in Central America and the Caribbean.

Financial highlights

• Net profit of $120.3 million ($2.88 per share) for Q2 2024, with total revenues up 1.3% to $819.4 million.

• Operating profit reached $159.5 million, with a 19.5% margin in the seasonally lowest quarter.

• Unit cost (CASM) decreased 2.1% year-over-year to $0.089; CASM ex-fuel fell 5.8% to $0.056.

• Passenger yield dropped 8.7% to $0.121, and unit revenues (RASM) declined 7.7% to $0.11.

• Adjusted net debt to EBITDA ratio at 0.6x; total debt including leases was $1.8 billion.

Outlook and guidance

• Full-year 2024 capacity growth revised to ~9% (from ~10%) due to Venezuela flight suspension.

• Operating margin guidance reaffirmed at 21%-23%.

• Load factor expected at ~86.5%, unit revenues at $0.115, and CASM ex-fuel at $0.059.

• All-in fuel price assumption set at $2.70/gallon.

• Third dividend payment of $1.61/share scheduled for September 13, 2024.