Copa Holdings reports USD 57.7m in Q3 2018 net income

Copa Holdings, S.A. (NYSE: CPA) has reported USD 57.7m in the third quarter 2018 net income, or USD 1.36 earnings per share (EPS), compared to net income of USD 105.3 million or earnings per share of USD 2.48 in the third quarter 2017, the company said.

Operating income came in at USD 74.3 million, representing a 38.4% decrease over operating income of USD 120.7 million in the third quarter 2017, mainly as a result of a 4.3% increase in unit costs (CASM) due to higher fuel prices, and a 4.2% decrease in unit revenues (RASM) mostly due to weakness of the Brazilian and Argentinian currencies.

Operating margin for the third quarter came in at 11.0%, compared to an operating margin of 18.3% in the same period in 2017.

For the third quarter 2018, consolidated passenger traffic grew 4.8% while consolidated capacity grew 6.6%. As a result, consolidated load factor for the quarter decreased 1.4 percentage points to 84.3%.

Total revenues for the third quarter increased 2.1% to USD 672.4 million. Yield per passenger mile decreased 3.3% to 11.6 cents and RASM came in at 10.1 cents, or 4.2% below 3Q17.

Operating cost per available seat mile (CASM) increased 4.3% from 8.6 cents in the third quarter 2017 to 9.0 cents in 3Q18, driven by a 31.6% increase in the effective price of jet fuel. CASM excluding fuel costs decreased 5.5% from 6.3 cents in 3Q17 to 6.0 cents in 3Q18, mainly as a result of timing of expenses, fewer operational disruptions and cost reduction efforts.

Cash, short-term and long-term investments ended the quarter at USD 915.8 million, representing 36.0% of the last twelve months´ revenues.

Copa Holdings ended the quarter with a consolidated fleet of 102 aircraft — 1 Boeing 737 MAX9, 68 Boeing 737-800s, 14 Boeing 737-700s, and 19 Embraer-190s.

For 3Q18, Copa Airlines had an on-time performance of 88.3% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.

Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to 80 destinations in 32 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 104 aircraft: 82 Boeing 737NGs, 3 Boeing 737 MAX 9s, and 19 EMBRAER-190s.