PANAMA CITY (GLOBE NEWSWIRE) — Copa Holdings1, S.A., 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.
Management’s comments on 1Q25 results
Copa Holdings reported strong 1Q25 financial results. The Company's industry-leading 23.8% operating margin underscores the resilience of Copa's business model as the Company navigates the currently lower year-over-year passenger yield environment.
The Company's focus on maintaining low ex-fuel unit costs, leading on-time performance, and offering a passenger-friendly product, as well as expanding its Hub of the Americas in Panama, continues to fortify Copa’s leading business model, competitive position, and remains central to consistently achieving strong margins and financial results.
During the first quarter, the Company reported operating revenues of US$899.2 million, a 0.6% increase compared to 1Q24. Capacity for the quarter increased by 9.5% year over year. Adjusted for the Boeing 737 MAX-9 grounding in 1Q24, capacity would have increased by 4.6%.
Load factor came in at 86.4% for the quarter, a 0.4 percentage point increase compared to 1Q24. Passenger yields came in 9.1% lower compared to 1Q24, mainly driven by an increase in industry capacity in the region and a weaker year-over-year currency environment in certain countries. As a result, passenger revenues per ASM (PRASM) decreased 8.7% in the quarter to 11.0 cents, and RASM decreased 8.1% to 11.5 cents, compared to 1Q24.
Operating expenses for the quarter increased by 1.2% to a total of US$685.4 million compared to 1Q24. This increase was driven by the 9.5% increase in capacity, partially offset by a 12.4% decrease in the average price per fuel gallon, a 9.4% decrease in the Company's sales and distribution costs, and a 15.7% decrease in passenger servicing costs. The decrease in the Company's sales and distribution costs was driven by higher penetration of direct sales and lower-cost travel agency NDC channels as a product of the successful execution of the Company's NDC strategy, while the decrease in passenger servicing cost was mainly driven by the one-time expenses related to the MAX 9 grounding in 1Q24. Consequently, the Company reported a cost per available seat mile (CASM) of 8.8 cents in 1Q25, a 7.7% decrease versus 1Q24 and a CASM
excluding fuel (Ex-fuel CASM) of 5.8 cents during the quarter, a 4.3% decrease when compared to the same period in 2024.
The Company reported an operating income of US$213.8 million and an operating margin of 23.8% in the quarter, compared to an operating income of US$216.0 million and an operating margin of 24.2% in 1Q24. Copa Holdings reported a net profit of US$176.8M, a US$0.7 million increase compared to 1Q24 and a net margin of 19.7%, flat year over year.
The Company continues to have a solid balance sheet and liquidity position as it closed the quarter with US$1.3 billion in cash, short-term and long-term investments, which represent 39% of the last twelve months’ revenues. This figure excludes over US$600 million in pre-delivery deposits for new aircraft deliveries.
Total debt, which is entirely related to aircraft financing, amounted to US$1.9 billion at the end of 1Q25, while our Adjusted Net Debt to EBITDA ratio of 0.5 times continued at industry-leading levels. Copa Holdings’ first quarter results are the product of a solid and well-executed business model, which is built on operating the best and most convenient network for intra-Latin America travel from its Hub of the Americas® based on Panama’s advantageous geographic position, low unit costs, best on-time performance, and a strong balance sheet. Going forward, the Company expects to leverage its strong balance sheet, leading liquidity position, and lower cost base to continue strengthening its long-term
competitive position by implementing initiatives that will further reinforce its network, product, and cost competitiveness.
