Copa Holdings Q1 results

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP May 8, 2015 11:55

Copa Holdings Q1 results

Copa Holdings reported net income of US$113.1 million for the first quarter of 2015, or diluted earnings per share (EPS) of US$2.57.  Excluding special items, Copa Holdings would have reported an adjusted net income of US$106.0 million, or EPS of US$2.41 per share, a 30.4% decrease over adjusted net income of US$153.6 million and US$3.46 per share for 1Q14.

Operating income for 1Q15 came in at US$127.3 million, a 28.1% decrease over operating income of US$177.0 million in 1Q14.  Operating margin for the period came in at 20.1%, compared to 24.8% in 1Q14, as a result of lower unit revenues partially offset by lower unit costs.

Total revenues decreased 11.5% to US$631.8 million.  Yield per passenger mile decreased 16.2% to 14.8 cents and operating revenue per available seat mile (RASM) decreased 18.3% to 11.6 cents.  Adjusting for an 8.5% increase in length of haul, yields and RASM decreased 12.7% and 14.9%, respectively.

Passenger traffic (RPMs) grew 5.8% on an 8.3% capacity expansion.  Consolidated load factor came in at 76.3%, 1.8 percentage points below 1Q14.

Operating cost per available seat mile (CASM) decreased 13.2%, from 10.7 cents in 1Q14 to 9.3 cents in 1Q15 mainly due to lower jet fuel costs. CASM, excluding fuel, decreased 3.4% to 6.3 cents mainly due to lower sales related expenses and lower overhead expenses.

Cash, short-term and long-term investments ended 1Q15 at US$1.16 billion, representing 44% of the last twelve months’ revenues. Of this amount, 41% or US$470.1 million was in Venezuela pending repatriation due to government currency controls.

During the first quarter, Copa Airlines took delivery of one Boeing 737-800 aircraft, and returned a leased Boeing 737-700.  As a result, Copa Holdings ended the quarter with a consolidated fleet of 98 aircraft.

For 1Q15, Copa Holdings reported consolidated on-time performance of 90.0% and a flight-completion factor of 99.5%, maintaining its position among the best in the industry.

On April 10, 2015, Copa Holdings signed an order with Boeing to purchase 61 737-MAX aircraft, worth US$6.6 billion at Boeing list prices. The aircraft are expected to be delivered between 2018 and 2024.

On June 15, 2015, Copa Holdings will pay its second quarter dividend of US$0.84 per share, on all outstanding Class A and Class B shares, to stockholders of record as of May 29, 2015.

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP May 8, 2015 11:55