Copa Holdings reports net income of USD 100.8m



Copa Holdings, S.A. (NYSE: CPA), has announced financial results for the fourth quarter of 2017 (4Q17) and full year 2017, the company said.

Copa Holdings reported net income of USUSD 100.8 million for 4Q17 or earnings per share (EPS) of USUSD 2.38, as compared to net income of USUSD 90.5 million or earnings per share of USUSD 2.14 in 4Q16.

Excluding special items, which for 4Q17 include a non-cash gain of USUSD 0.5 million associated with the mark-to-market of fuel hedge contracts, the company would have reported a net income of USUSD 100.3 million, or adjusted EPS of USUSD 2.36, compared to an adjusted net income of USUSD 54.7 million or adjusted EPS of USUSD 1.29 in 4Q16.

For full year 2017, net income reached USUSD 370.0 million or EPS of USUSD 8.72, compared to a net income of USUSD 334.5 million or earnings per share of USUSD 7.90 for full year 2016. Excluding special items, which for 2017 include a non-cash gain of USUSD 2.8 million associated with the mark-to-market of fuel hedge contracts, Copa Holdings would have reported an adjusted net income of USUSD 367.2 million or EPS of USUSD 8.66, compared to an adjusted net income of USUSD 201.4 million or adjusted EPS of USUSD 4.75 for full year 2016.

Operating income for 4Q17 came in at USUSD 120.4 million, representing a 70% increase over operating income of USUSD 70.6 million in 4Q16, as a result of a 2.9% increase in unit revenue per available seat mile (RASM), and a 4.2% decrease in unit costs. Operating margin for 4Q17 came in at 17.8%, compared to an operating margin of 11.7% in 4Q16.

For full year 2017, the company reported operating income of USUSD 440.1 million, representing an increase of 59% over operating income of USUSD 276.1 million for full year 2016. Operating margin for full year 2017 came in at 17.4%, compared to an operating margin of 12.4% in 2016.

Total revenues for 4Q17 increased 12.4% to USUSD 675.6 million. Yield per passenger mile increased 1.2% to 12.9 cents and RASM came in at 11.1 cents, or 2.9% above 4Q16.

For 4Q17, consolidated passenger traffic grew 11.3% while consolidated capacity grew 9.2%. As a result, consolidated load factor for the quarter increased 1.6 percentage points to 83.2%. For full year 2017, consolidated load factor was also 83.2%, 2.8 percentage points higher than 2016 on 8.8% capacity growth.

Operating cost per available seat mile (CASM) decreased 4.2%, from 9.5 cents in 4Q16 to 9.1 cents in 4Q17. CASM excluding fuel costs decreased 6.7% from 6.9 cents in 4Q16 to 6.5 cents in 4Q17, mainly as a result of a non-cash adjustment in our aircraft useful life assumptions, which significantly increased the depreciation expense in 4Q16.

Copa Holdings is a Latin American provider of passenger and cargo services. The company, through its operating subsidiaries, provides service to 75 destinations in 31 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 101 aircraft: 81 Boeing 737NG aircraft and 20 EMBRAER-190s. For more information visit: www.copa.com.