Copa Holdings reported a net profit of $17.5 million, operating profit of $194.7 million and a 24.1% operating margin for second quarter (Q2) of 2023 as compared to an operating profit of $42.3 million and an operating margin of 6.1% in Q2 of 2022. Copa Holdings today announced financial results for the second quarter of 2023.
Excluding special items comprised of the unrealized mark-to-market net loss of $137.0 million related to the company's convertible notes, as well as changes in the value of financial investments, the company would have reported a net profit of $154.5 million or $3.92 per share.
The Group reported an increase of 15.4% year over year while the capacity available seat miles or ASMs increased by 13.6%. As a result, the load factor for the quarter increased by 1.3 percentage points to 86.1%, as compared to Q2, 2022.
Total revenues for Q2, 2022 increased 16.7% to $809.2 million, mainly driven by higher capacity, while yields increased 2.0% to 13.3 cents. Revenue per available seat mile (RASM) increased 2.7% to 12.0 cents, as compared to same time last year.
Operating cost per available seat mile (CASM) decreased 17.0% from 10.9 cents to 9.1 cents mainly driven by a decrease of 35.9% in the price of jet fuel per gallon.
The company ended the quarter with approximately $1.3 billion in cash, short-term and long-term investments, which represent 39.6% of the last twelve months' revenues while the total debt including lease liabilities amounted to $1.8bn and the Adjusted Net Debt to EBITDA ratio ended at 0.5 times
During the quarter, the company started service to Barquisimeto, Venezuela, bringing the total number of destinations in its network to 81. This new route is scheduled to start in October of 2023.
Copa took delivery of two Boeing 737 MAX 9 aircraft, ending the quarter with a consolidated fleet of 101 aircraft including 67 Boeing 737-800s, 24 Boeing 737 MAX 9s, 9 Boeing 737-700s, and 1 Boeing 737-800 freighter. The company expects to end the year with 107 aircraft.
On July 14, 2023, Copa Holdings publicly announced the redemption of all its outstanding 4.50% Convertible Senior Notes due in 2025, which will be completed on September 18, 2023. Notes surrendered for conversion will be settled through a combination of cash up to the principal amount of US$350 million and shares of Copa common stock, the latter to cover the remainder of the conversion obligation.