Copa Holdings Reports First-Quarter Financial Results

Rhea-AI Summary

Copa Holdings (NYSE: CPA) reported strong Q1 2025 financial results with a net profit of $176.8 million ($4.28 per share), slightly up from Q1 2024. The company achieved an operating profit of $213.8 million with a robust 23.8% operating margin. Key operational metrics showed capacity (ASMs) increased by 9.5% YoY, while Ex-fuel CASM decreased 4.3% to 5.8 cents. Copa maintained a strong financial position with $1.3 billion in cash and investments (39% of LTM revenues) and a debt-to-EBITDA ratio of 0.5x. The airline operates a fleet of 112 aircraft and exercised options for six additional Boeing 737 MAX-8 aircraft. Copa Airlines demonstrated exceptional operational performance with 90.8% on-time performance and 99.9% flight completion. The Board approved a dividend payment of $1.61 per share, payable June 13, 2025.

Positive

• Net profit increased to $176.8 million, up $0.7 million YoY
• Strong liquidity position with $1.3 billion in cash and investments
• Low leverage with Adjusted Net Debt to EBITDA ratio of 0.5x
• Excellent operational metrics: 90.8% on-time performance and 99.9% flight completion
• 9.5% increase in capacity (ASMs)
• 4.3% decrease in Ex-fuel CASM, showing improved cost efficiency
• Fleet expansion with six new Boeing 737 MAX-8 aircraft ordered
• Continued shareholder returns through $1.61 per share dividend

Negative

• Operating profit decreased 1.0% YoY to $213.8 million
• Operating margin declined 0.4 percentage points to 23.8%
• RASM decreased 8.1% YoY to 11.5 cents
• Yield declined 9.1% compared to 1Q24

Insights

Airline Industry Financial Analyst

Copa maintained profits despite 9.5% capacity growth and 8.1% revenue dilution through exceptional cost control and operational excellence.

Copa Holdings delivered stable Q1 2025 results, maintaining profitability despite significant yield pressures. Net profit remained virtually unchanged at $176.8 million (+0.4% YoY), while EPS grew 2.2% to $4.28, benefiting from a 1.8% reduction in outstanding shares. The airline achieved an impressive 23.8% operating margin despite a 0.4 percentage point decrease.

Most notably, Copa substantially expanded capacity with ASMs up 9.5% while passenger traffic increased 7.4%, generating 10.1% more revenue passenger miles. However, this growth strategy led to considerable pricing pressure, with yield dropping 9.1% to 12.7 cents and RASM falling 8.1% to 11.5 cents. Operating revenue grew just 0.6% to $899.2 million despite the significant capacity expansion.

Copa excelled at cost management, reducing CASM by 7.7% to 8.8 cents and ex-fuel CASM by 4.3% to 5.8 cents. The 12.4% decline in fuel prices to $2.54 per gallon significantly aided cost control despite 7.8% higher fuel consumption. The carrier maintained exceptional operational reliability with 90.8% on-time performance and 99.9% flight completion rate, positioning itself among the best in the industry.

The balance sheet remains exceptionally strong with $1.3 billion in cash and investments (39% of TTM revenues) against $1.9 billion in debt, resulting in an impressive Adjusted Net Debt to EBITDA ratio of just 0.5x. Copa's fleet totals 112 aircraft, and the addition of six Boeing 737 MAX-8 aircraft for 2028 delivery signals confidence in long-term growth prospects. The declared dividend of $1.61 per share underscores management's commitment to shareholder returns.

Copa's 2.7 cent spread between CASM (8.8¢) and RASM (11.5¢) represents a solid unit profit margin despite the yield pressure. The results demonstrate Copa's ability to execute effectively on controllable factors while navigating market challenges - trading yield for volume while leveraging operational excellence and cost discipline to protect profitability.

PANAMA CITY, May 07, 2025 (GLOBE NEWSWIRE) -- Copa Holdings¹, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2025 (1Q25). Key highlights include:

• Net profit of US$176.8 million or US$4.28 per share, a US$0.7 million increase compared to 1Q24.
• Operating profit of US$213.8 million and an operating margin of 23.8%, a 1.0% and 0.4 percentage point decrease, respectively, compared to 1Q24.
• Capacity, measured in available seat miles (ASMs), increased by 9.5% year over year.
• Operating cost per available seat mile excluding fuel (Ex-fuel CASM) decreased 4.3% compared to 1Q24 to 5.8 cents.
• Revenue per available seat mile (RASM) decreased 8.1% compared to 1Q24 to 11.5 cents.
• The Company ended the quarter with approximately US$1.3 billion in cash, short-term and long-term investments, which represent 39% of the last twelve months’ revenues.
• The Company closed 1Q25 with total debt, including lease liabilities, of US$1.9 billion, while the Adjusted Net Debt to EBITDA ratio ended at 0.5 times.
• The Company ended the quarter with a consolidated fleet of 112 aircraft: 67 Boeing 737-800, 32 Boeing 737 MAX-9, 9 Boeing 737-700, 3 Boeing 737 MAX-8, and 1 Boeing 737-800 freighter.
• Copa Holdings exercised options for six additional Boeing 737 MAX-8 aircraft expected to be delivered in 2028. This increases the Company's firm outstanding order book to 57 aircraft.
• Copa Airlines had an on-time performance for the quarter of 90.8% and a flight completion factor of 99.9%, once again positioning itself among the best in the industry.
  
  

Subsequent events

• On May 7, 2025, the Board of Directors of Copa Holdings ratified its second dividend payment for the year of US$1.61 per share. Dividends will be paid on June 13, 2025, to shareholders on record as of May 30, 2025.
  
  

Copa Holdings, S. A. and Subsidiaries Consolidated Operating and Financial Statistics
	1Q25		1Q24		% Change		4Q24		% Change
Revenue Passengers Carried (000s)	3,512		3,272		7.4	%	3,444		2.0	%
Revenue Passengers OnBoard (000s)	5,208		4,790		8.7	%	5,168		0.8	%
RPMs (millions)	6,743		6,127		10.1	%	6,682		0.9	%
ASMs (millions)	7,801		7,121		9.5	%	7,747		0.7	%
Load Factor	86.4	%	86.0	%	0.4 p.p		86.3	%	0.2 p.p
Yield (US$ Cents)	12.7		14.0		(9.1	)%	12.5		2.0	%
PRASM (US$ Cents)	11.0		12.1		(8.7	)%	10.8		2.2	%
RASM (US$ Cents)	11.5		12.5		(8.1	)%	11.3		1.6	%
CASM (US$ Cents)	8.8		9.5		(7.7	)%	8.7		0.8	%
CASM Excl. Fuel (US$ Cents)	5.8		6.1		(4.3	)%	5.9		(1.2	)%
Fuel Gallons Consumed (millions)	91.0		84.4		7.8	%	91.2		(0.3	)%
Avg. Price Per Fuel Gallon (US$)	2.54		2.90		(12.4	)%	2.38		6.6	%
Average Length of Haul (miles)	1,920		1,873		2.5	%	1,940		(1.1	)%
Average Stage Length (miles)	1,260		1,246		1.1	%	1,260		—	%
Departures	37,829		35,220		7.4	%	37,596		0.6	%
Block Hours	121,611		112,164		8.4	%	121,549		0.1	%
Average Aircraft Utilization (hours)	12.1		11.6		3.8	%	12.0		0.9	%
Operating Revenues (US$ millions)	899.2		893.5		0.6	%	878.6		2.3	%
Operating Profit (Loss) (US$ millions)	213.8		216.0		(1.0	)%	203.7		4.9	%
Operating Margin	23.8	%	24.2	%	-0.4 p.p		23.2	%	0.6 p.p
Net Profit (Loss) (US$ millions)	176.8		176.1		0.4	%	165.8		6.6	%
Basic EPS (US$)	4.28		4.19		2.2	%	3.98		7.7	%
Shares for calculation of Basic EPS (000s)	41,292		42,052		(1.8	)%	41,696		(1.0	)%

Full 1Q25 Earnings Release available for download at:

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

1Q25 Earnings Conference Call and Webcast

Date:	May 8, 2025
Time:	11:00 AM US ET (11:00 AM Local Time)
Join by phone:	https://register-conf.media-server.com/register/BIcb85f85fa26a4d56b9369d66c4fb6a5c
Webcast (listen-only):	https://copa.gcs-web.com/events-and-presentations

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)

Cautionary statement regarding forward-looking statements

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			%
	1Q25			1Q24			Change		4Q24			Change
Operating Revenues
Passenger revenue	859,025			858,725			—	%	834,758			2.9	%
Cargo and mail revenue	25,694			21,910			17.3	%	28,966			(11.3	%)
Other operating revenue	14,462			12,831			12.7	%	14,896			(2.9	%)
Total Operating Revenue	899,181			893,467			0.6	%	878,620			2.3	%
Operating Expenses
Fuel	232,160			245,352			(5.4	%)	219,232			5.9	%
Wages, salaries, benefits and other employees' expenses	117,517			114,314			2.8	%	123,575			(4.9	%)
Passenger servicing	25,024			29,684			(15.7	%)	25,748			(2.8	%)
Airport facilities and handling charges	65,657			60,347			8.8	%	64,655			1.5	%
Sales and distribution	50,261			55,494			(9.4	%)	50,548			(0.6	%)
Maintenance, materials and repairs	39,434			25,627			53.9	%	34,567			14.1	%
Depreciation and amortization	86,284			83,365			3.5	%	85,085			1.4	%
Flight operations	33,749			31,029			8.8	%	34,675			(2.7	%)
Other operating and administrative expenses	35,27			32,270			9.3	%	36,78			(4.1	%)
Total Operating Expense	685,360			677,482			1.2	%	674,871			1.6	%
Operating Profit/(Loss)	213,822			215,985			(1.0	%)	203,749			4.9	%
Non-operating Income (Expense):
Finance cost	(23,233	)		(18,840	)		23.3	%	(21,498	)		8.1	%
Finance income	15,792			13,746			14.9	%	16,064			(1.7	%)
Gain (loss) on foreign currency fluctuations	1,370			(3,914	)		nm		(11,489	)		nm
Net change in fair value of derivatives	(2,434	)		(8	)		nm		2,706			nm
Other non-operating income (expense)	1,428			(112	)		nm		(501	)		nm
Total Non-Operating Income/(Expense)	(7,077	)		(9,127	)		(22.5	%)	(14,718	)		(51.9	%)
Profit before taxes	206,744			206,858			(0.1	%)	189,031			9.4	%
Income tax expense	(29,978	)		(30,792	)		(2.6	%)	(23,262	)		28.9	%
Net Profit/(Loss)	176,766			176,066			0.4	%	165,769			6.6	%

Copa Holdings, S. A. and Subsidiaries Consolidated statement of financial position (In US$ thousands)
	March 2025			December 2024
ASSETS	(Unaudited)			(Audited)
Cash and cash equivalents	164,820			613,313
Short-term investments	751,525			585,919
Total cash, cash equivalents and short-term investments	916,345			1,199,232
Accounts receivable, net	172,525			166,014
Accounts receivable from related parties	5,526			2,976
Expendable parts and supplies, net	145,040			132,341
Prepaid expenses	51,568			42,926
Prepaid income tax	4,159			11,678
Other current assets	26,461			21,711
	405,279			377,647
TOTAL CURRENT ASSETS	1,321,625			1,576,879
Long-term investments	425,821			248,936
Long-term prepaid expenses	7,648			8,237
Property and equipment, net	3,564,026			3,458,261
Right of use assets	293,337			309,302
Intangible, net	97,483			96,754
Net defined benefit assets	1,513			1,058
Deferred tax assets	15,695			20,749
Other Non-Current Assets	20,661			22,113
TOTAL NON-CURRENT ASSETS	4,426,183			4,165,410
TOTAL ASSETS	5,747,808			5,742,289
LIABILITIES
Loans and borrowings	232,447			254,854
Current portion of lease liability	60,156			59,103
Accounts payable	188,886			229,104
Accounts payable to related parties	1,012			1,624
Air traffic liability	607,457			621,895
Frequent flyer deferred revenue	142,773			132,064
Taxes Payable	60,599			55,505
Accrued expenses payable	33,074			62,673
Income tax payable	12,861			9,801
Other Current Liabilities	1,831			1,272
TOTAL CURRENT LIABILITIES	1,341,097			1,427,895
Loans and borrowings long-term	1,390,774			1,415,953
Lease Liability	255,831			270,594
Deferred tax Liabilities	48,803			37,476
Other long - term liabilities	229,921			217,626
TOTAL NON-CURRENT LIABILITIES	1,925,329			1,941,649
TOTAL LIABILITIES	3,266,426			3,369,544
EQUITY
Class A - 34,219,911 issued and 30,232,861 outstanding	23,271			23,244
Class B - 10,938,125	7,466			7,466
Additional Paid-In Capital	216,435			214,542
Treasury Stock	(294,993	)		(291,438	)
Retained Earnings	2,368,185			1,826,565
Net profit	176,766			608,114
Other comprehensive loss	(15,748	)		(15,748	)
TOTAL EQUITY	2,481,382			2,372,745
TOTAL EQUITY LIABILITIES	5,747,808			5,742,289

Copa Holdings, S. A. and Subsidiaries Consolidated statement of cash flows For the three months ended (In US$ thousands)
		2025				2024				2023
	(Unaudited)				(Unaudited)				(Unaudited)
Cash flow from operating activities		205,477				200,998				203,419
Cash flow (used in) investing activities		(518,052	)			(78,334	)			(62,868	)
Cash flow (used in) financing activities		(135,918	)			(158,514	)			(20,661	)
Net (decrease) increase in cash and cash equivalents		(448,493	)			(35,850	)			119,890
Cash and cash equivalents at January 1		613,313				206,375				122,424
Cash and cash equivalents at March 31	$	164,820			$	170,525			$	242,314
Short-term investments		751,525				630,640				773,493
Long-term investments		425,821				301,192				166,481
Total cash and cash equivalents and investments at March 31	$	1,342,166			$	1,102,357			$	1,182,288

Copa Holdings, S.A.

NON-IFRS FINANCIAL MEASURE RECONCILIATION

This press release includes the following non-IFRS financial measures: 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. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:

Reconciliation of Operating Costs per ASM
Excluding Fuel (CASM Excl. Fuel)	1Q25		1Q24		4Q24
Operating Costs per ASM as Reported (in US$ Cents)	8.8		9.5		8.7
Aircraft Fuel Cost per ASM (in US$ Cents)	3.0		3.4		2.8
Operating Costs per ASM excluding fuel (in US$ Cents)	5.8		6.1		5.9

________________________
¹ The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The financial information presented in this release, 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 first quarter of 2024 (1Q24).

FAQ

What were Copa Holdings (CPA) earnings per share in Q1 2025?

Copa Holdings reported earnings of $4.28 per share in Q1 2025, a 2.2% increase from $4.19 in Q1 2024.

What is Copa Airlines' current fleet size and composition?

Copa operates 112 aircraft: 67 Boeing 737-800s, 32 Boeing 737 MAX-9s, 9 Boeing 737-700s, 3 Boeing 737 MAX-8s, and 1 Boeing 737-800 freighter.

How much dividend will Copa Holdings (CPA) pay in June 2025?

Copa Holdings will pay a dividend of $1.61 per share on June 13, 2025, to shareholders of record as of May 30, 2025.

What was Copa Holdings' (CPA) operating margin in Q1 2025?

Copa Holdings achieved an operating margin of 23.8% in Q1 2025, down 0.4 percentage points from Q1 2024.

How many new aircraft did Copa Holdings order for 2028 delivery?

Copa Holdings exercised options for six additional Boeing 737 MAX-8 aircraft, expected to be delivered in 2028.