Copa posts $370m 2017 profit on passenger rise, cost management
A solid Q4 performance in passenger revenue and cost containment pushed Panama City-based Copa Holdings toward a $370m net profit for 2017, up 10.6% over the company’s $335m net income in 2016. Following a Q3 with natural disaster-related operational challenges, Copa’s Q4 results continued to reflect ongoing improvement in passenger demand, Copa management said. Q4 operating revenue grew 12.4% year-over-year (YOY) to $676m as passenger and cargo revenue grew 12.6% and 5.5%, respectively. Copa’s Q4 operating expenses were up 4.6% to $555.2m as fuel and labour costs rose 12.3% and 13.9%, respectively. Maintenance expenses fell 7.3% and aircraft depreciation and amortization dropped 22.7% “primarily [as] the result of an adjustment of the fleet’s useful life assumption from 30 to 27 years” during the fourth quarter, Copa said. The company’s Q4 operating income jumped 70.4% to $120.4m and net income for the quarter came to $101m, up 11.4% YOY. Passenger traffic was up 11.9% to 5.1b RPMs during the quarter, as capacity grew 9.2% to 6.1b ASMs, resulting in an 83.2% load factor. Q4 yield was up 1.2% YOY to 12.9 cents and the company’s operating margin increased 6.1 points to 17.8%. Copa’s full-year revenue totalled $2.5b, up 13.8% from $2.2b in 2016, reflecting a 14.3% rise in passenger revenue. Operating expenses for the year were up 7.3% to $2.1b and included marked rises in flight operations and passenger servicing expenses, up 15.3% and 15.2% respectively. The company reported $440.1m in operating profit for the year, up 59.4% over $276.1m in operating income in 2016.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-02-23/star/copa-posts-370m-2017-profit-on-passenger-rise-cost-management
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Copa posts $370m 2017 profit on passenger rise, cost management
A solid Q4 performance in passenger revenue and cost containment pushed Panama City-based Copa Holdings toward a $370m net profit for 2017, up 10.6% over the company’s $335m net income in 2016. Following a Q3 with natural disaster-related operational challenges, Copa’s Q4 results continued to reflect ongoing improvement in passenger demand, Copa management said. Q4 operating revenue grew 12.4% year-over-year (YOY) to $676m as passenger and cargo revenue grew 12.6% and 5.5%, respectively. Copa’s Q4 operating expenses were up 4.6% to $555.2m as fuel and labour costs rose 12.3% and 13.9%, respectively. Maintenance expenses fell 7.3% and aircraft depreciation and amortization dropped 22.7% “primarily [as] the result of an adjustment of the fleet’s useful life assumption from 30 to 27 years” during the fourth quarter, Copa said. The company’s Q4 operating income jumped 70.4% to $120.4m and net income for the quarter came to $101m, up 11.4% YOY. Passenger traffic was up 11.9% to 5.1b RPMs during the quarter, as capacity grew 9.2% to 6.1b ASMs, resulting in an 83.2% load factor. Q4 yield was up 1.2% YOY to 12.9 cents and the company’s operating margin increased 6.1 points to 17.8%. Copa’s full-year revenue totalled $2.5b, up 13.8% from $2.2b in 2016, reflecting a 14.3% rise in passenger revenue. Operating expenses for the year were up 7.3% to $2.1b and included marked rises in flight operations and passenger servicing expenses, up 15.3% and 15.2% respectively. The company reported $440.1m in operating profit for the year, up 59.4% over $276.1m in operating income in 2016.<br/>
