Copa Holdings has reported a net profit of US$8.2 million for the third quarter of 2021, or US$0.19 per share. Excluding special items, Copa would have reported a net profit of US$29.9 million or US$0.70 per share. Special items include a US$32.1 million unrealized mark-to-market loss related to the company’s convertible notes and a passenger revenue adjustment of (US$10.4) million corresponding to unredeemed coupons from 2019 and 2020 sales.
Copa Holdings reported an operating profit of US$59.0 million for the quarter and an operating margin of 13.3%. Excluding the US$10.4 million passenger unredeemed coupon revenue adjustment, the Company would have reported an operating profit of US$48.6 million and an 11.2% operating margin.
Operating cost per available seat mile (CASM) decreased 12.4% vs. 2Q21 to 8.8 cents. While CASM, excluding fuel costs, decreased 18.6% to 6.2 cents.
Cash buildup, defined as cash proceeds minus disbursements, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, resulted in US$54 million for the quarter.
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.
Flight operations, measured in terms of available seat miles (ASMs), represented 68.9% of the
capacity flown over the same period in 2019.
During the quarter, Copa exited the last Embraer 190 in its fleet and delivered two Boeing 737- 700s to their new owner.
Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa ended the quarter with a consolidated fleet of 87 aircraft – 68 Boeing 737-800s, 13 Boeing 737 MAX 9s, and 6 Boeing 737-700s, compared to a fleet of 102 aircraft the Company operated prior to the COVID-19 pandemic.
The airline agreed with Boeing to accelerate the delivery of 12 Boeing 737 MAX 9s from its current order, two in 2022 and the other ten between 2023 and 2025.