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Copa Holdings reported net income of $74 million

Copa Holdings reported net income of $74 million

Copa Holdings reports financial results for the third quarter of 2016

Copa Holdings, S.A. today announced financial results for the third quarter of 2016 (3Q16).

OPERATING AND FINANCIAL HIGHLIGHTS

• Copa Holdings reported net income of US$74.0 million for 3Q16, or diluted earnings per share (EPS) of US$1.75.


• Excluding special items, Copa Holdings would have reported an adjusted net income of $55.3 million, or $1.30 per share, a 47.8% increase from adjusted net income of US$37.4 million and US$0.85 per share for 3Q15.

• Operating income for 3Q16 came in at US$77.2 million, a 52.7% increase from operating income of US$50.6 million in 3Q15.  Operating margin for the period came in at 13.6% or 4.3 percentage points higher than 3Q15, as a result of stronger unit revenues and lower unit costs.

• Operating results for the quarter were affected by realized fuel hedge losses of US$22.2 million, compared to US$24.1 million in 3Q15.  Excluding these realized fuel hedge losses, operating margin for the quarter would have been 17.5% for 3Q16, and 13.6% for 3Q15.



• Total revenues increased 4.0% year over year to US$569 million, as higher load factors offset a 7.6% reduction in yield per passenger mile.  As a result, operating revenue per available seat mile (RASM) increased 1.8% to 10.3 cents when compared to 3Q2015.

• For 3Q16, passenger traffic (RPMs) grew 12.7% year over year on a 2.0% capacity expansion.  As a result, consolidated load factor came in at 84.2%, or 8.0 percentage points above 3Q15.

• Operating cost per available seat mile (CASM) declined 2.9% year over year to 8.9 cents. CASM, excluding fuel, decreased 0.9% year over year to 6.4 cents.

• Cash, short term and long term investments ended 3Q16 at US$773.4 million, representing 36% of the last twelve months’ revenues.

• During the quarter, Copa Airlines returned two leased EMB-190s. Copa Holdings ended the quarter with a consolidated fleet of 99 aircraft.

• For 3Q16, Copa Holdings reported consolidated on-time performance of 90.1% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.

SUBSEQUENT EVENTS

• On Oct 20, 2016 Copa Holdings launched Wingo, a low cost/low price product offering designed for passengers looking for a simple, no-frills travel option within Central, South America and the Caribbean.  Wingo will begin operations on December 1, 2016.

• Copa Holdings will pay its fourth quarter dividend of US$0.51 per share on December 15, 2016, on all outstanding Class A and Class B shares, to stockholders of record as of November 30, 2016.

Consolidated Financial &
Operating Highlights  3Q16  3Q15  % Change   2Q16  % Change

Revenue Passengers Carried (‘000)  2,231  1,987  12.3%  2,020  10.5%

RPMs (mm)   4,637  4,116  12.7%  4,178  11.0%
ASMs (mm)   5,506  5,397  2.0%  5,335  3.2%
Load Factor   84.2%  76.3%  8.0 p.p.  78.3%  5.9 p.p.
Yield  11.8  12.7  -7.6%  11.3  3.8%
PRASM (US$ Cents)   9.9  9.7  2.1%  8.9  11.7%
RASM (US$ Cents)   10.3  10.1  1.8%  9.3  11.4%
CASM (US$ Cents)   8.9  9.2  -2.9%  8.6  3.5%
CASM Excl. Fuel (US$ Cents)   6.4  6.4  -0.9%  6.3  1.7%
Breakeven Load Factor  70.2%  75.1%  -4.9 p.p.  66.7%  3.5 p.p.
Adjusted Breakeven Load Factor (1)  73.7%  69.4%  4.3 p.p.  73.7%  0.0 p.p.
Fuel Gallons Consumed (Millions)   71.2  69.2  3.0%  69.4  2.7%
Avg. Price Per Fuel Gallon (US$ Dollars)  1.97  2.16  -8.6%  1.81  9.1%
Average Length of Haul (Miles)  2,079  2,071  0.4%  2,068  0.5%
Average Stage Length (Miles)  1,237  1,233  0.3%  1,194  3.6%
Departures  30,737  30,619  0.4%  30,313  1.4%
Block Hours  97,077  97,053  0.0%  95,171  2.0%
Average Aircraft Utilization (Hours)  10.5  10.8  -2.3%  10.4  0.9%
Operating Revenues (US$ mm)   569.0  547.2  4.0%  494.4  15.1%
Operating Income (US$ mm)  77.2  50.6  52.7%  34.2  125.8%
Operating Margin   13.6%  9.2%  4.3 p.p.  6.9%  6.7 p.p.
Net Income (US$ mm)  74.0  6.2  n/m  54.5  35.7%
Adjusted Net Income (US$ mm) (1)  55.3  37.4  47.8%  21.5  157.2%
EPS – Basic and Diluted (US$)  1.75  0.14  n/m  1.29  34.9%
Adjusted EPS – Basic and Diluted (US$) (1)  1.30  0.85  53.6%  0.51  155.7%
# of Shares – Basic and Diluted (‘000)   42,372  44,030  -3.8%  42,117  0.6%

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