PANAMA CITY, Aug 16, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Copa Holdings S.A. (NYSE: CPA), parent company of Copa Airlines and AeroRepublica, today announced financial results for the second quarter of 2006 (2Q06). The terms "Copa Holdings" or "the Company" refer to the consolidated entity, whose operating subsidiaries are Copa Airlines and AeroRepublica. All comparisons, unless otherwise stated, refer to the second quarter of 2005 (2Q05). The following financial and operating information, unless otherwise indicated, is presented pursuant to US GAAP.

Note: Copa Holdings acquired AeroRepublica in April 22, 2005. As a result of the acquisition, our financial information at and for the three months ended June 30, 2006 is not comparable to the information at and for the three months ended June 30, 2005.

    OPERATING AND FINANCIAL HIGHLIGHTS

    * Copa Holdings recorded net income of US$22.9 million for 2Q06, an
      increase of 51.3% above 2Q05.  Net margin increased 0.9 percentage
      points to 11.9%, placing the Company among the best in the industry in
      terms of net margin.  Diluted earnings per share (EPS) increased by
      51.1% to US$0.53, well above average estimates of US$0.44.
      (Source: I/B/E/S consensus estimates).

    * Operating income for the quarter rose 40.3% to US$28.5 million from
      US$20.3 million in 2Q05.  Operating margin reached 14.9%, a 0.1
      percentage point increase over 2Q05, despite record high fuel prices
      during the quarter.

    * Total revenues for the quarter increased by 39.4% to US$191.5 million,
      primarily due to a 41.6% increase in passenger revenues.  Yields
      continued their upward trend by increasing 9.0% to 15.8 cents and
      operating revenue per available seat mile (RASM) increased 8.1% to 11.7
      cents.

    * Average load factor increased 0.5 percentage points from 69.2% in 2Q05
      to 69.7%, as revenue passenger miles (RPMs) increased 29.9% to 1.14
      billion in 2Q06 and available seat miles (ASMs) increased 29.0% to 1.63
      billion in 2Q06.

    * Operating cost per available seat mile (CASM) increased 8.0% from 9.3
      cents in 2Q05 to 10.0 cents in 2Q06.  However, CASM excluding fuel
      remained unchanged at 6.7 cents.

    * On May 11, 2006 the Board of Directors of Copa Holdings declared an
      annual dividend of 19 cents per share.  This dividend, payable to
      stockholders of record as of May 31, 2006, was paid on June 15, 2006.

    * In June, Copa Airlines continued its fleet expansion by taking delivery
      of one Boeing 737-700 and two Embraer 190's, as well as an additional
      Boeing 737-700 in July.  Copa Airlines will receive two additional
      Embraer 190 aircraft during the month of October, to end the year with a
      fleet of 30 aircraft.

    * As part of its fleet modernization plan, AeroRepublica recently
      announced a lease agreement with GE Commercial Aviation Services (GECAS)
      for two Embraer 190 aircraft to be delivered in 2007.  With this lease
      agreement, AeroRepublica now has firm orders and delivery commitments
      for seven aircraft, all of which are Embraer 190s.  Four of these
      aircraft will be delivered in 2006 and three in 2007.  In addition to
      these commitments, AeroRepublica has options and purchase rights for
      twenty additional Embraer 190 aircraft through 2011.

    * In June, Copa Airlines was recognized by the 2006 World Airline Awards
      as "Best Airline" as well as "Best Cabin Staff" in Central America,
      Mexico and the Caribbean.  The 2006 World Airline Awards are based on
      the annual World Airline Survey conducted by Skytrax, a British market-
      survey company.

    * For 2Q06, Copa Airlines reported an on-time performance of 91.9% and a
      flight-completion factor of 99.7%, among the best in the industry.

    * During the months of July and August Copa Airlines continued its route
      network expansion by adding service to five new destinations:  Manaus
      (Brazil) and Santiago de los Caballeros (Dominican Republic) on July 15;
      Maracaibo (Venezuela) and San Pedro Sula, Honduras on July 24 and
      Montevideo (Uruguay) on August 15.  With these destinations, Copa
      Airlines strengthens its network by increasing the total number of
      destinations served from its Hub of the Americas in Panama City to 35
      cities in 21 countries in North, South, Central America and the
      Caribbean.



    Consolidated Financial &
    Operating Highlights               2Q06    2Q05   % Change  1Q06  % Change

    Revenue Passenger Miles (RPM)(mm) 1,137     875     29.9%  1,155     -1.5%
    Available Seat Miles (ASM) (mm)   1,631   1,264     29.0%  1,615      1.0%
    Load Factor                       69.7%   69.2%   0.5p.p.   71.5% -1.8p.p.
    Yield                              15.8    14.5      9.0%   15.6      1.2%
    Passenger Revenue per ASM
     (US$ cents) ("PRASM")             11.0    10.0      9.8%   11.2     -1.4%
    Operating Revenue per ASM
     (US$ cents) ("RASM")              11.7    10.9      8.1%   11.9     -1.1%
    Operating Cost per ASM
     (US$ cents) ("CASM")              10.0     9.3      8.0%    9.3      7.6%
    Operating Cost (excluding fuel)
     per ASM (US$ cents)                6.7     6.7      0.3%   6.37      5.6%
    Breakeven Load Factor              58.8    58.2   0.6p.p.   55.8   3.0p.p.
    Operating Revenues (US$ mm)       191.5   137.4     39.4%  191.7    -0.10%
    EBITDAR (US$ mm) *                 46.1    36.1     27.7%   57.5    -19.8%
    EBITDAR Margin *                   24.1%   26.3% -2.2p.p.   30.0%  5.9p.p.
    Operating Income (US$ mm)          28.5    20.3     40.3%   41.8    -31.8%
    Operating Margin                   14.9%   14.8%  0.1p.p.   21.8% -6.9p.p.
    Net Income (US$ mm)                22.9    15.1     51.3%   32.3    -29.2%
    Earnings per Share - Basic (US$)   0.53    0.35     51.3%   0.75    -29.2%
    Earnings per Share - Diluted (US$) 0.53    0.35     51.1%   0.75    -29.2%
    Weighted Average Number of
     Shares - Basic (000)            42,813  42,813      0.0% 42,813      0.0%
    Weighted Average Number of
     Shares - Diluted (000)          42,860  42,813      0.1% 42,837     0.10%

* EBITDAR (earnings before interest, taxes, depreciation, amortization and rent) is presented as supplemental information because we believe it is a useful indicator of our operating performance and is useful in comparing our performance with other companies in the airline industry. However, EBITDAR should not be considered in isolation, as a substitute for net income prepared in accordance with US GAAP or as a measure of a company's profitability. In addition, our calculations may not be comparable to other similarly titled measures of other companies.

Full 2Q06 earnings release available to download on: http://investor.shareholder.com/copa/results.cfm

    2Q06 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

    Date:              August 16, 2006
    Time:              11:00 a.m. US EDT / 10 a.m. Local time
    Conference Call:
    Telephone Number:  877-502-9273 (U.S. Domestic Callers)
                       913-981-5582 (International Callers)
    Webcast:           http://www.copaair.com/investor/default.aspx



    About Copa Holdings

Copa Holdings, through its Copa Airlines and AeroRepublica operating subsidiaries, is a leading Latin American provider of international airline passenger and cargo service. Copa Airlines currently offers approximately 110 daily scheduled flights to 35 destinations in 21 countries in North, Central and South America and the Caribbean. In addition, Copa Airlines provides passengers with access to flights to more than 120 other international destinations through codeshare agreements with Continental Airlines and other airlines. AeroRepublica, the second-largest domestic carrier in Colombia, provides service to 12 cities in Colombia as well as international connectivity with Copa Airlines' Hub of the Americas through daily flights from Bogota and Medellin.

This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings' filed disclosure documents and are, therefore, subject to change without prior notice.

CPA-E

SOURCE Copa Holdings, S.A.

Copa Holdings S.A. Investor Relations: +1-507-304-2677, or jputaturo@copaair.com

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