Copa 3Q net profit down 55% as expenses climb
Copa Holdings posted a Q3 net profit of $57.7m, down 55% from the same period last year—the result of rising fuel costs and weakened currencies in Brazil and Argentina. Panama-based Copa is the parent of Copa Airlines and Copa Airlines Colombia. The company also operates Wingo-branded ultra-LCC flights out of Colombia. The company reported $672.4m in total revenue for the quarter, up 2.1% year-over-year on capacity growth of 6.6%. Expenses were up 11.2% to $598.1m, driven by a 39.2% jump in fuel costs from the same period last year. CASM increased 4.3%, leading to a 4.8% slide in PRASM compared to 3Q 2017. Passenger yield declined 3.3%. Copa’s operating income for the quarter was $74.3m, a 38.4% decrease from the year-earlier period. The company’s operating margin was 11%, compared to 18.3% a year ago. “We were not able to compensate for the additional fuel expense in the third quarter. We firmly believe this is a temporary situation and are confident in the long-term value and potential of this market, the strength of our business model and our ability to return to higher margins,” CEO and director Pedro Heilbron said.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-11-19/star/copa-3q-net-profit-down-55-as-expenses-climb
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Copa 3Q net profit down 55% as expenses climb
Copa Holdings posted a Q3 net profit of $57.7m, down 55% from the same period last year—the result of rising fuel costs and weakened currencies in Brazil and Argentina. Panama-based Copa is the parent of Copa Airlines and Copa Airlines Colombia. The company also operates Wingo-branded ultra-LCC flights out of Colombia. The company reported $672.4m in total revenue for the quarter, up 2.1% year-over-year on capacity growth of 6.6%. Expenses were up 11.2% to $598.1m, driven by a 39.2% jump in fuel costs from the same period last year. CASM increased 4.3%, leading to a 4.8% slide in PRASM compared to 3Q 2017. Passenger yield declined 3.3%. Copa’s operating income for the quarter was $74.3m, a 38.4% decrease from the year-earlier period. The company’s operating margin was 11%, compared to 18.3% a year ago. “We were not able to compensate for the additional fuel expense in the third quarter. We firmly believe this is a temporary situation and are confident in the long-term value and potential of this market, the strength of our business model and our ability to return to higher margins,” CEO and director Pedro Heilbron said.<br/>
