Copa Holdings has reported a net profit of US$28.1 million for the quarter or US$0.66 per share. Excluding special items, the company would have reported a net loss of US$16.2 million or US$0.38 per share. Special items include a US$33.9 million unrealized mark-to-market gain related to Copa’s convertible notes and a passenger revenue adjustment of US$10.4 million related to 2019 and 2020 sales.
Copa reported an operating profit of US$8.7 million for the quarter. Excluding the US$10.4 million passenger revenue adjustment, the company would have reported an operating loss of US$1.7 million.
Copa ended the quarter with US$1.6 billion of available liquidity, consisting of approximately US$1.3 billion in cash, short-term and long-term investments, and US$345 million of committed and undrawn credit facilities.
The company closed the quarter with total debt, including lease liabilities, of US$1.6 billion.
Copa’s flight operations, measured in terms of available seat miles (ASMs), represented approximately 48% of the capacity flown in the same period in 2019.
During the quarter, three Embraer 190 aircraft exited the fleet as part of a previously agreed sale to a third party. As of June 30, 2021, there was one remaining Embraer 190 aircraft pending to be delivered to the buyer.
Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa ended the quarter with a consolidated fleet of 81 aircraft – 68 Boeing 737-800s and 13 Boeing 737 MAX 9s, compared to a total fleet of 102 aircraft at the end of the first quarter of 2020.
During the quarter, Copa Airlines had an on-time performance of 92.1% and a flight completion factor of 99.5%, once again positioning itself amongst the best in the industry.
Subsequent Events
In July, Copa Airlines' last remaining Embraer 190 aircraft was delivered to its new owner.
The company entered into an agreement for the sale of six 737-700s and has now decided to keep the remaining six 737-700s.