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- **Record Margins**: Q3 operating margin 23.2%, highest in company history, up 2.9pts YoY.
- **Fleet Expansion**: 132 aircraft by end-2026, 11-13% ASM growth in 2026 driven by 50% new aircraft, 40% frequency additions.
- **Financial Strength**: $1.3B cash, 0.7x net debt/EBITDA, 40% dividend payout policy maintained.
- **Demand Resilience**: 88% load factor, 30% YoY loyalty program growth, Brazil recovery underway.
- **Cost Discipline**: CASM ex-fuel down 0.8%, CASM down 2.7%, CASM ex-fuel 2026 guidance $0.057-0.058.

**【CEO Summary Section】**
- Reported Q3 2025 operating margin of 23.2%, up 2.9 percentage points YoY, driven by cost discipline and strong demand. 
- Capacity (ASMs) increased 5.8% YoY, load factor rose 1.8pts to 88%, CASM ex-fuel down 0.8% to $0.056.
- Fleet expanded to 123 aircraft, with 124 expected by year-end and 132 by end-2026. New routes added to Salta, Los Cabos, and Salvador.
- Operational excellence maintained with 89.7% on-time performance and 99.8% flight completion rate.

**【CFO Financial Commentary】**
- Net profit $173M ($4.20/sh) vs $146M ($3.50/sh) Q3'24, +18%/+20%. Operating income up 22.2% YoY to $212M.
- CASM down 2.7% to $0.085, CASM ex-fuel $0.056 (down 0.8%), benefiting from lower fuel costs and engine exchange gains.
- Balance sheet strong with $1.3B cash, $600M in aircraft pre-delivery deposits, and 45 unencumbered aircraft.
- 2025 guidance narrowed to 22-23% operating margin, 8% capacity growth. 2026 forecast: 11-13% ASM growth, CASM ex-fuel $0.057-0.058.
- Q4 dividend of $1.61/sh declared, part of 40% of prior year net income policy.

**【Q&A Key Highlights】**
- **Loyalty Program Growth**: 30% YoY growth in non-air partnerships, maturing program expected to continue moderate expansion.
- **2026 Capacity Breakdown**: 50% from new aircraft, 40% from frequency additions, 10% new destinations.
- **Unit Revenue Outlook**: Minimal pressure despite 11-13% ASM growth, focused on high-demand routes (>90% load factor).
- **Competition**: Healthy demand across Latin America, Brazil recovery underway, Argentina capacity stabilization.
- **Fuel Hedging**: No change to non-hedging strategy, monitoring crack spread developments.
- **Share Buybacks**: $200M program remains open, half executed; prioritizing fleet investment over buybacks.
- **Hub Expansion**: Panama airport terminal expansion underway, supporting long-term growth without capacity constraints.

Copa Holdings, S.A. (CPA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CPA

CPA fundamentals

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