Copa Q2 net profit down 15% on fuel costs, weak regional currencies

Copa Holdings posted a Q2 2018 net profit of US$49.9m, down 15% from $58.6m in Q2 2017. The results reflect the combined effects of rising fuel costs, weakened currencies in Brazil and Argentina, and a 90-day halt on all Copa flights to Caracas, Venezuela, the company stated. The company reported $634.1m in revenue for the quarter, up 10.5 year-over-year on capacity growth of 11.2%. Expenses, however, were up 16.6% to $577.1m, including a 47.1% YOY rise in fuel costs related to rising prices and increased capacity. CASM increased 4.8% YOY, leading to a 0.7% slide in PRASM compared to Q2 2017. Passenger yields came in 2.2% below last year. Copa’s operating income for the quarter came to $57.1m, down 27.3% YOY; the company’s Q2 operating margin was 9%, down 4.7 points from a year ago. <br/>