Copa Holdings Reports Fourth-Quarter Financial Results

Rhea-AI Summary

Copa Holdings (NYSE: CPA) reported Q4 2024 financial results with a net profit of US$166.2 million (US$3.99 per share), and full-year 2024 net profit of US$608.5 million (US$14.56 per share). The company achieved an operating profit of US$204.2 million with a 23.3% margin in Q4.

Key operational metrics showed capacity (ASMs) increased by 7.2% compared to Q4 2023, while operating cost per available seat mile excluding fuel decreased by 2.6% to 5.9 cents. Revenue per available seat mile decreased by 10.4% to 11.3 cents.

The company ended 2024 with US$1.4 billion in cash and investments (42% of LTM revenues) and total debt of US$2.0 billion. Copa repurchased US$87 million worth of shares and approved a 2025 quarterly dividend of US$1.61 per share. The company's fleet expanded to 112 aircraft, and Peter Donkersloot was appointed as new CFO effective March 2025.

Positive

• Strong net profit of US$166.2M in Q4 and US$608.5M for full-year 2024
• Healthy operating margin of 23.3% in Q4
• Solid cash position of US$1.4B (42% of LTM revenues)
• 2.6% decrease in Ex-fuel CASM showing improved operational efficiency
• Continued shareholder returns through US$87M share buyback and US$1.61 quarterly dividend

Negative

• 10.4% decrease in Revenue per available seat mile (RASM)
• Operating profit declined 4.7% YoY in Q4
• Full-year operating margin decreased to 21.9% from 23.4% in 2023
• 9.3% decline in adjusted net profit compared to 2023

Insights

Financial Analyst

Copa Holdings continues to demonstrate robust financial health despite some year-over-year profit decline. The 23.3% operating margin remains industry-leading, significantly outperforming the typical 5-10% margins seen among global carriers. The company's operational excellence is evident in its 88.2% on-time performance, ranking third globally.

The balance sheet shows remarkable strength with a conservative 0.5x adjusted net debt to EBITDA ratio, well below the industry average of 2.5-3.5x. This financial prudence, combined with $1.4 billion in liquidity, provides substantial flexibility for fleet expansion and protection against market volatility.

The 7.2% capacity increase, coupled with a 2.6% reduction in ex-fuel unit costs, demonstrates effective cost management and network optimization. However, the 10.4% RASM decline suggests some pricing pressure in Latin American markets, though this is partially offset by operational efficiencies.

The fleet modernization strategy, particularly the integration of fuel-efficient MAX aircraft, positions Copa favorably for future cost optimization. The $87 million share repurchase and maintained dividend reflect management's confidence in sustainable cash flow generation, with the dividend yield remaining competitive for the sector.

PANAMA CITY, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter (4Q24) and the full year 2024. The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the fourth quarter of 2023 (4Q23).

OPERATING AND FINANCIAL HIGHLIGHTS

• Copa Holdings reported a net profit of US$166.2 million or US$3.99 per share for 4Q24. For the full year 2024, the Company reported a net profit of US$608.5 million or US$14.56 per share, compared to a full-year adjusted net profit of US$671.0 million or US$16.68 per share in 2023.
• The Company reported an operating profit of US$204.2 million and an operating margin of 23.3% for the quarter. For the full year 2024, the Company reported an operating profit of US$753.4 million and an operating margin of 21.9%, compared to a full-year operating profit of US$807.2 million and an operating margin of 23.4% in 2023.
• Capacity, measured in available seat miles (ASMs), increased by 7.2% in 4Q24 compared to 4Q23.
• Operating cost per available seat mile excluding fuel (Ex-fuel CASM) came in at 5.9 cents in the quarter, a decrease of 2.6% when compared to 4Q23.
• Revenue per available seat mile (RASM) came in at 11.3 cents in the quarter, a 10.4% decrease compared to 4Q23.
• The Company ended the year with approximately US$1.4 billion in cash, short-term and long-term investments, which represent 42% of the last twelve months’ revenues.
• The Company closed the year with total debt, including lease liabilities, of US$2.0 billion, while the Adjusted Net Debt to EBITDA ratio ended at 0.5 times.
• In 2024, the Company repurchased US$87 million worth of shares under its ongoing US$200 million share repurchase program authorized by the Board of Directors. This represents approximately 2% of the Company’s total outstanding shares as of year-end 2024.
• During the fourth quarter, the Company took delivery of two Boeing 737 MAX 8 aircraft, ending the year with a consolidated fleet of 112 aircraft – 67 Boeing 737-800s, 32 Boeing 737 MAX 9s, 9 Boeing 737-700s, 3 Boeing 737 MAX 8, and 1 Boeing 737-800 freighter.
  

Subsequent Events

• On February 12, 2025, the Board of Directors of Copa Holdings approved a 2025 quarterly dividend payment of US$1.61 per share, maintaining last year’s dividend payment. Dividends will be distributed in March, June, September, and December. The first quarterly dividend will be paid on March 14, 2024, to shareholders on record as of February 28, 2024.
• In January, Copa Airlines was recognized by Cirium for the tenth time as the most on-time airline in Latin America in 2024. Copa Airlines’ on-time performance of 88.2% for the year was the highest of any carrier in the Americas and the third best in the world, reaffirming its position as one of the leading airlines in the industry.
• After an extensive internal and external search, the Company is pleased to announce the appointment of Peter Donkersloot as Chief Financial Officer effective March 10, 2025. Currently Copa’s Vice President of Human Resources, Peter brings over 20 years of international experience across the Americas, serving as General Manager for various companies across the continent and holding key positions in Commercial, Operations, Logistics, Risk Assessment, and Financial Planning. Peter holds a Global MBA from the Thunderbird School of Global Management and a degree in Industrial Engineering from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM).
  

Consolidated Financial & Operating Highlights	4Q24	4Q23	Variance Vs 4Q23	3Q24	Variance Vs 3Q24	YTD24	YTD23	Variance Vs YTD23
Revenue Passengers Carried (000s)	3,444	3,310	4.0%	3,449	(0.2)%	13,467	12,442	8.2%
Revenue Passengers OnBoard (000s)	5,168	4,930	4.8%	5,187	(0.4)%	20,115	18,566	8.3%
RPMs (millions)	6,682	6,263	6.7%	6,711	(0.4)%	25,966	24,052	8.0%
ASMs (millions)	7,747	7,228	7.2%	7,785	(0.5)%	30,077	27,700	8.6%
Load Factor	86.3%	86.7%	-0.4 p.p	86.2%	0.1 p.p	86.3%	86.8%	-0.5 p.p
Yield (US$ Cents)	12.5	14.0	(10.8)%	12.2	2.3%	12.7	13.8	(8.1)%
PRASM (US$ Cents)	10.8	12.1	(11.2)%	10.5	2.3%	10.9	12.0	(8.6)%
RASM (US$ Cents)	11.3	12.6	(10.4)%	11.0	3.1%	11.5	12.5	(8.2)%
CASM (US$ Cents)	8.7	9.7	(10.1)%	8.7	(0.7)%	8.9	9.6	(6.5)%
CASM Excl. Fuel (US$ Cents)	5.9	6.0	(2.6)%	5.7	3.1%	5.8	6.0	(3.0)%
Fuel Gallons Consumed (millions)	91.2	85.6	6.5%	91.3	(0.1)%	354.5	327.6	8.2%
Avg. Price Per Fuel Gallon (US$)	2.38	3.08	(22.6)%	2.60	(8.3)%	2.66	3.02	(11.9)%
Average Length of Haul (miles)	1,940	1,892	2.6%	1,946	(0.3)%	1,928	1,933	(0.3)%
Average Stage Length (miles)	1,260	1,229	2.6%	1,267	(0.6)%	1,257	1,251	0.5%
Departures	37,596	36,207	3.8%	37,478	0.3%	146,607	137,044	7.0%
Block Hours	121,549	115,118	5.6%	120,975	0.5%	470,751	438,913	7.3%
Average Aircraft Utilization (hours)	12.0	11.9	0.1%	12.0	—%	11.9	11.9	(0.4)%
Operating Revenues (US$ millions)	877.1	912.8	(3.9)%	854.7	2.6%	3,444.6	3,457.0	(0.4)%
Operating Profit (Loss) (US$ millions)	204.2	214.3	(4.7)%	173.7	17.5%	753.4	807.2	(6.7)%
Operating Margin	23.3%	23.5%	-0.2 p.p	20.3%	3.0 p.p	21.9%	23.4%	-1.5 p.p
Net Profit (Loss) (US$ millions)	166.2	187.7	(11.5)%	146.0	13.8%	608.5	514.1	18.4%
Adjusted Net Profit (Loss) (US$ millions) (1)	166.2	184.3	(9.8)%	146.0	13.8%	608.5	671.0	(9.3)%
Basic EPS (US$)	3.99	4.45	(10.5)%	3.50	13.9%	14.56	12.78	13.9%
Adjusted Basic EPS (US$) (1)	3.99	4.37	(8.9)%	3.50	13.9%	14.56	16.68	(12.7)%
Shares for calculation of Basic EPS (000s)	41,696	42,150	(1.1) %	41,728	(0.1)%	41,796	40,228	3.9%

^{(1) Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.}

FULL 4Q24 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:

https://copa.gcs-web.com/financial-information/quarterly-results

4Q24 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

Date:	February 13, 2025
Time:	11:00 AM US ET (11:00 AM Local Time)
Join by phone:	https://register.vevent.com/register/BI3d3cbd8e7b2244fdad7627b4aa596d8a
Webcast (listen-only):	https://copa.gcs-web.com/events-and-presentations
Speakers:	Pedro Heilbron, Chief Executive Officer
	José Montero, Chief Financial Officer

About Copa Holdings
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information visit: www.copaair.com.

CONTACT: Copa Holdings S.A.

Investor Relations:
Ph: 011 507 304-2774
www.copaair.com (IR section)

This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates, and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve several business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings’ filed disclosure documents and are, therefore, subject to change without prior notice.

CPA-G

Copa Holdings, S. A. and Subsidiaries
Consolidated statement of profit or loss
(In US$ thousands)

	Unaudited	Unaudited	%	Unaudited	%	Unaudited	Audited	%
	4Q24	4Q23	Change	3Q24	Change	YTD24	YTD23	Change
Operating Revenues
Passenger revenue	833,189	875,257	(4.8%)	818,381	1.8%	3,291,793	3,316,362	(0.7%)
Cargo and mail revenue	28,966	26,534	9.2%	24,446	18.5%	100,507	97,105	3.5%
Other operating revenue	14,896	11,049	34.8%	11,881	25.4%	52,330	43,538	20.2%
Total Operating Revenue	877,052	912,840	(3.9%)	854,708	2.6%	3,444,629	3,457,005	(0.4%)
Operating Expenses
Fuel	219,232	264,166	(17.0%)	238,714	(8.2%)	949,309	995,862	(4.7%)
Wages, salaries, benefits and other employees' expenses	123,575	119,669	3.3%	117,877	4.8%	470,644	436,526	7.8%
Passenger servicing	25,748	24,148	6.6%	26,232	(1.8%)	109,243	89,146	22.5%
Airport facilities and handling charges	64,655	59,010	9.6%	65,029	(0.6%)	252,798	221,878	13.9%
Sales and distribution	50,548	55,111	(8.3%)	49,716	1.7%	207,968	227,171	(8.5%)
Maintenance, materials and repairs	34,567	31,276	10.5%	34,860	(0.8%)	105,936	132,531	(20.1%)
Depreciation and amortization	85,085	80,261	6.0%	82,797	2.8%	330,710	306,114	8.0%
Flight operations	34,675	27,987	23.9%	31,901	8.7%	129,521	109,892	17.9%
Other operating and administrative expenses	34,778	36,875	(5.7%)	33,871	2.7%	135,110	130,656	3.4%
Total Operating Expense	672,862	698,504	(3.7%)	680,998	(1.2%)	2,691,238	2,649,777	1.6%
Operating Profit/(Loss)	204,190	214,335	(4.7%)	173,710	17.5%	753,392	807,228	(6.7%)
Non-operating Income (Expense):
Finance cost	(21,498)	(20,408)	5.3%	(23,523)	(8.6%)	(84,493)	(158,216)	(46.6%)
Finance income	16,064	14,289	12.4%	15,565	3.2%	58,912	50,209	17.3%
Gain (loss) on foreign currency fluctuations	(11,489)	(272)	4125.5%	(2,491)	361.1%	(33,991)	3,076	(1205.0%)
Net change in fair value of derivatives	2,706	—	—%	(762)	(455.0%)	4,469	(98,347)	(104.5%)
Other non-operating income (expense)	(501)	3,126	(116.0%)	6,787	(107.4%)	7,940	7,153	11.0%
Total Non-Operating Income/(Expense)	(14,718)	(3,264)	350.9%	(4,425)	232.6%	(47,163)	(196,126)	(76.0%)
Profit before taxes	189,471	211,071	(10.2%)	169,285	11.9%	706,229	611,102	15.6%
Income tax expense	(23,290)	(23,378)	(0.4%)	(23,259)	0.1%	(97,703)	(97,004)	0.7%
Net Profit/(Loss)	166,182	187,693	(11.5%)	146,026	13.8%	608,526	514,098	18.4%

Copa Holdings, S. A. and Subsidiaries
Consolidated statement of financial position
(In US$ thousands)

	December 2024	December 2023
ASSETS	(Unaudited)	(Audited)
Cash and cash equivalents	613,313	206,375
Short-term investments	585,919	708,809
Total cash, cash equivalents and short-term investments	1,199,232	915,184
Accounts receivable, net	166,014	156,720
Accounts receivable from related parties	2,976	2,527
Expendable parts and supplies, net	132,341	116,604
Prepaid expenses	42,926	44,635
Prepaid income tax	11,712	66
Other current assets	21,711	32,227
	377,681	352,780
TOTAL CURRENT ASSETS	1,576,913	1,267,963
Long-term investments	248,936	258,934
Long-term prepaid expenses	8,237	9,633
Property and equipment, net	3,458,261	3,238,632
Right of use assets	309,302	281,146
Intangible, net	96,754	87,986
Net defined benefit assets	1,058	5,346
Deferred tax assets	20,736	30,148
Other Non-Current Assets	22,113	17,048
TOTAL NON-CURRENT ASSETS	4,165,397	3,928,872
TOTAL ASSETS	5,742,310	5,196,836
LIABILITIES
Loans and borrowings	254,854	222,430
Current portion of lease liability	59,103	68,304
Accounts payable	227,095	182,303
Accounts payable to related parties	1,624	1,228
Air traffic liability	616,105	611,856
Frequent flyer deferred revenue	139,423	124,815
Taxes Payable	55,505	44,210
Accrued expenses payable	62,673	64,940
Income tax payable	9,828	26,741
Other Current Liabilities	1,272	1,403
TOTAL CURRENT LIABILITIES	1,427,482	1,348,229
Loans and borrowings long-term	1,415,953	1,240,261
Lease Liability	270,594	215,353
Deferred tax Liabilities	37,497	36,369
Other long - term liabilities	217,626	234,474
TOTAL NON-CURRENT LIABILITIES	1,941,670	1,726,457
TOTAL LIABILITIES	3,369,152	3,074,685
EQUITY
Class A - 34,195,704 issued and 30,234,831 outstanding	23,244	23,201
Class B - 10,938,125	7,466	7,466
Additional Paid-In Capital	214,542	209,102
Treasury Stock	(291,438)	(204,130)
Retained Earnings	1,826,565	1,581,739
Net profit	608,526	514,098
Other comprehensive loss	(15,748)	(9,326)
TOTAL EQUITY	2,373,158	2,122,150
TOTAL EQUITY LIABILITIES	5,742,310	5,196,836

Copa Holdings, S. A. and Subsidiaries
Consolidated statement of cash flows
For the twelve months ended
(In US$ thousands)

	2024		2023		2022
	(Unaudited)		(Audited)		(Audited)
Cash flow from operating activities		969,729		1,020,974		737,188
Cash flow (used in) investing activities		(343,142)		(542,995)		(552,151)
Cash flow (used in) financing activities		(219,649)		(394,028)		(273,694)
Net increase (decrease) in cash and cash equivalents		406,938		83,951		(88,657)
Cash and cash equivalents at January 1		206,375		122,424		211,081
Cash and cash equivalents at December 31	$	613,313	$	206,375	$	122,424
Short-term investments		585,919		708,809		812,323
Long-term investments		248,936		258,934		202,056
Total cash and cash equivalents and investments at December 31	$	1,448,168	$	1,174,119	$	1,136,803

Copa Holdings, S.A.

NON-IFRS FINANCIAL MEASURE RECONCILIATION

This press release includes the following non-IFRS financial measures: Adjusted Net Profit, Adjusted Basic EPS, and Operating CASM Excluding Fuel. This supplemental information is presented because we believe it is a useful indicator of our operating performance and is useful in comparing our performance with other companies in the airline industry. These measures should not be considered in isolation and should be considered together with comparable IFRS measures, in particular operating profit, and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:

Reconciliation of Adjusted Net Profit	4Q24		4Q23		3Q24		YTD24		YTD23
Net Profit as Reported	$	166,182	$	187,693	$	146,026	$	608,526	$	514,098
Interest expense related to the settlement of the convertible notes	$	—	$	—	$	—	$	—	$	64,894
Net change in fair value of derivatives	$	—	$	—	$	—	$	—	$	98,347
Net change in fair value of financial investments	$	—	$	(3,372)	$	—	$	—	$	(6,349)
Adjusted Net Profit	$	166,182	$	184,321	$	146,026	$	608,526	$	670,990
Reconciliation of Adjusted Basic EPS	4Q24		4Q23		3Q24		YTD24		YTD23
Adjusted Net Profit	$	166,182	$	184,321	$	146,026	$	608,526	$	670,990
Shares used for calculation of Basic EPS		41,696		42,150		41,728		41,796		40,228
Adjusted Basic Earnings per share (Adjusted Basic EPS)	$	3.99	$	4.37	$	3.50	$	14.56	$	16.68
Reconciliation of Operating Costs per ASM
Excluding Fuel (CASM Excl. Fuel)	4Q24		4Q23		3Q24		YTD24		YTD23
Operating Costs per ASM as Reported (in US$ Cents)		8.7		9.7		8.7		8.9		9.6
Aircraft Fuel Cost per ASM (in US$ Cents)		2.8		3.7		3.1		3.2		3.6
Operating Costs per ASM excluding fuel (in US$ Cents)		5.9		6.0		5.7		5.8		6.0

FAQ

What was Copa Holdings' (CPA) net profit for Q4 2024?

Copa Holdings reported a net profit of US$166.2 million or US$3.99 per share for Q4 2024.

How much cash and investments did Copa Holdings (CPA) have at the end of 2024?

Copa Holdings ended 2024 with approximately US$1.4 billion in cash, short-term and long-term investments, representing 42% of last twelve months' revenues.

What is Copa Holdings' (CPA) quarterly dividend for 2025?

The Board approved a 2025 quarterly dividend payment of US$1.61 per share, maintaining the previous year's dividend level.

How many aircraft did Copa Holdings (CPA) operate at the end of 2024?

Copa Holdings ended 2024 with a consolidated fleet of 112 aircraft, including 67 Boeing 737-800s, 32 Boeing 737 MAX 9s, 9 Boeing 737-700s, 3 Boeing 737 MAX 8, and 1 Boeing 737-800 freighter.

What was Copa Holdings' (CPA) share repurchase amount in 2024?

Copa Holdings repurchased US$87 million worth of shares in 2024, representing approximately 2% of total outstanding shares.