What caused CPA's Q2 2024 earnings to miss forecasts?

Copa Holdings' (CPA) Q2 2024 earnings missed forecasts due to a combination of factors:

1. **Lower Passenger Traffic and Load Factor**: The company reported a 24.1% decrease in passenger traffic compared to the previous year, with the load factor dropping to 86.8%. This reduction in passenger numbers and load factor directly impacted revenue, as evidenced by the 0.13% decrease in revenue forecast compared to the same quarter of the previous year.
2. **Fleet-Upgrade Related Costs**: Copa Holdings is in the process of upgrading its fleet, which includes replacing older aircraft with newer models. While this is a positive development in the long term, it comes with initial costs that can strain financial performance in the short term. The company's fleet expanded from 97 to 106 planes during the first three months of 2024, with plans to reach 115 by the end of the year. The costs associated with acquiring and integrating these new aircraft likely contributed to the earnings shortfall.
3. **Higher Operating Expenses**: The company has been dealing with increased operating expenses, which have been a recurring theme affecting its profitability. Higher expenses, coupled with lower revenue, squeezed the net profit margin, leading to the earnings miss.

In summary, CPA's Q2 2024 earnings miss was primarily caused by lower passenger traffic and load factor, fleet-upgrade related costs, and higher operating expenses. These factors combined to result in a challenging financial performance for the company during that quarter.