Copa forecasts healthy Latin American air-travel demand through 2024

Copa Airlines expects the robust travel demand and profits it saw last year to continue through 2024, even as its growth takes a hit from the Boeing 737 Max 9 grounding. “[We] continue to see a healthy demand environment in the region and expect to once again deliver strong operating margins in 2024,” Copa Holdings CE Pedro Heilbron said during the airline company’s fourth-quarter earnings call on 8 February. The group forecasts a 21-23% operating margin this year. Copa earned a $219m operating profit in Q4, with a 24% operating margin. Its Q4 operating revenue increased 3% year on year to $917m, while its operating expenses jumped 4% year on year to $698m in the period. Copa’s Q4 cost growth was partially offset by lower fuel and distribution expenses, the latter thanks to an increase in direct-to-consumer sales. The carrier turned a Q4 net profit of $192m. Copa’s full-year 2023 operating revenue increased 17% year on year, to $3.5b, while its costs increased 5.4% year on year to $2.6b. “2023 was a very strong year for Copa,” says Heilbron. While its 2024 financial outlook remains positive, Copa has parred back its expected capacity growth following the 737 Max 9 grounding in January. It anticipates its available seat miles (ASMs) will increase only about 10% this year, down from a previously predicted 12-14% increase.<br/>