Copa Airlines' parent Copa Holdings' net profit in the second quarter of the year was $120.3 million, soaring from $17.5 million in the same period last year.
The company's revenues climbed 10.8% over last year to $3.3bn. Its total operating expenses were up 7.4% to $660 million. While fuel climbed 15% to $246 million, it recorded a decrease of 65.4% in maintenance, materials and repairs expense down to $10.9 million.
Operating profit was down 18.1% to $159.5 million, when compared to the second quarter last year.
The company's load factor was up 0.7 percentage point to 86.8%, while its capacity was up 9.7% and revenue passenger miles (RPKs) were up 10.6%.
The company had trimmed its full year capacity guidance from approximately 10% over 2023 down to 9%. The revision was ""due to the temporary suspension of our Panama to Venezuela flights"", Copa Airlines CFO and SVP of finance Jose Montero said in an earnings call.
On July 29, the Venezuela government temporarily suspended commercial flights between Venezuela and Panama effective July 31st, forcing the company to suspend its flights between the two countries. The suspension is set to carry through until August 31, 2024.
Copa Holdings CEO Pedro Heilbron said: ""Although the official notice mandates the suspension of flights until August 31, at this time we cannot determine if this suspension will be extended.""
Venezuela's move was reported to be made after the governments of Panama and the Dominican Republic had questioned the veracity of Venezuela's election results.
Copa closed the quarter with a total debt - including lease liabilities - of $1.8bn, while its adjusted net debt to EBITDA ratio ended at 0.6x. It also took delivery of three 737 MAX 9 aircraft during the period.
Copa Holdings will make its third dividend payment of the year of $1.61 per share on September 13, 2024, to all Class A and Class B shareholders on record as of August 30, 2024.
Copa's net profits soar, lowers capacity guidance following Venezuela-Panama flight suspensions
