Copa Holdings Reports Strong Fourth-Quarter Results, Driven by Capacity Expansion and Cost Management

Copa Holdings, S.A. (NYSE: CPA) reported strong financial results for the fourth quarter of 2024, driven by capacity expansion, improved cost management, and increased passenger traffic. The company's net profit for the quarter was US$166.2 million or US$3.99 per share, reflecting a significant improvement compared to the previous year.

Capacity, measured in available seat miles (ASMs), increased by 7.2% in 4Q24 compared to 4Q23, primarily due to the addition of two Boeing 737 MAX 8 aircraft to the fleet. This expansion in capacity led to a 7.5% increase in passenger traffic (RPMs) compared to 4Q19, while the load factor for the quarter increased by 1.4 percentage points to 86.6%. Copa Holdings' fleet now consists of 112 aircraft, including 67 Boeing 737-800s, 32 Boeing 737 MAX 9s, 9 Boeing 737-700s, 3 Boeing 737 MAX 8s, and 1 Boeing 737-800 freighter.



The company's revenue per available seat mile (RASM) came in at 11.3 cents in the quarter, a 10.4% decrease compared to 4Q23. However, Copa Holdings' operating cost per available seat mile excluding fuel (Ex-fuel CASM) decreased by 2.6% compared to 4Q23, driven by improved operational efficiency and cost control measures. The company's operating profit for the quarter was US$204.2 million, with an operating margin of 23.3%.

Copa Holdings' route network expansion has also contributed to its financial performance. The company announced new services to Manta, Ecuador, Baltimore-Washington International Airport, and Austin, Texas, in February 2023, bringing the total number of destinations in its network to 80. This expansion has allowed Copa Holdings to tap into new markets and increase its passenger traffic.



In addition to its strong financial performance, Copa Holdings has maintained its dividend payment and initiated a share repurchase program. The company approved a 2025 quarterly dividend payment of US$1.61 per share, maintaining last year's dividend payment. Copa Holdings also repurchased US$87 million worth of shares under its ongoing US$200 million share repurchase program authorized by the Board of Directors.

Copa Holdings' fleet expansion, route network changes, and effective cost management strategies have significantly impacted its financial performance and market position. The company's strong fourth-quarter results reflect its ability to drive revenue growth and manage costs effectively, positioning it for continued success in the competitive airline industry.