Copa Holdings fuel hedge contracts cause non-cash loss of USD25.3m

Copa Holdings, S.A. (NYSE: CPA) reported net income of USD1.9 million for the fourth quarter of 2015 or earnings per share (EPS) of USD0.04, as compared to net income of USD26.2 million or EPS of USD0.59 in the fourth quarter of 2014, the company said.

Excluding special items, which for 2015´s fourth quarter includes a non-cash loss of USD25.3 million associated with the mark-to-market of fuel hedge contracts, a USD2.3 million gain associated with the mark-to-market of shares repurchased, and a USD6.9 million loss related to the devaluation of the Argentinean Peso, Copa Holdings would have reported adjusted net income of USD31.7 million or adjusted EPS of USD0.73, compared to adjusted net income of USD115.6 million or adjusted EPS of USD2.61 in 2014.

Copa Holdings is a Latin American provider of passenger and cargo services. The company, through its operating subsidiaries, provides service to 73 destinations in 31 countries in North, Central and South America and the Caribbean.