PANAMA CITY, Aug 15, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --

Copa Holdings, S.A. (NYSE: CPA), parent company of Copa Airlines and Aero Republica, today announced financial results for the second quarter of 2007 (2Q07). The terms "Copa Holdings" or "the Company" makes reference to the consolidated entity, whose operating subsidiaries are Copa Airlines and Aero Republica. The following financial and operating information, unless otherwise indicated, is presented pursuant to US GAAP.

    OPERATING AND FINANCIAL HIGHLIGHTS
    -- Copa Holdings reported net earnings of US$30.9 million for 2Q07,
       representing diluted earnings per share of US$0.71, a 33.3% year-over-
       year increase.
    -- EBITDAR increased by 33.7% to US$61.7 million in 2Q07 from US$46.1
       million in 2Q06.  This resulted in a 2.1 percentage point EBITDAR
       margin increase, from 24.1% in 2Q06 to 26.2% in 2Q07.
    -- Operating income for 2Q07 rose 37.0% to US$39.0 million from US$28.5
       million in 2Q06.  Operating margin came in at 16.6%, an increase of 1.7
       percentage points above 2Q06.
    -- Revenue passenger miles (RPMs) increased 18.3% from 1.14 billion in
       2Q06 to 1.35 billion in 2Q07. Available seat miles (ASMs) increased
       15.3% from 1.63 billion in 2Q06 to 1.88 billion in 2Q07. As a result,
       average load factor increased 1.8 percentage points to 71.6%.
    -- Total revenues increased to US$235.3 million, representing growth of
       22.9%.  Passenger yield increased 4.1% to 16.4 cents and operating
       revenue per available seat mile (RASM) increased 6.6% to 12.5 cents.
    -- Operating cost per available seat mile (CASM) increased 4.5% from 10.0
       cents in 2Q06 to 10.4 cents in 2Q07.  CASM excluding fuel increased
       8.0% from 6.7 cents in 2Q06 to 7.3 cents in 2Q07.
    -- For 2Q07, Copa Airlines reported an on-time performance of 87.8% and a
       flight-completion factor of 99.4%, again placing among the best in the
       industry.
    -- In May, Copa Airlines announced the acquisition of four new Boeing 737-
       800 aircraft and options for three more. Additionally, Aero Republica
       recently signed lease agreements with GECAS for two additional EMBRAER-
       190 aircraft to be delivered in the second half of 2008.  As a result,
       Copa Airlines and Aero Republica now have firm orders for 22 aircraft
       (9 Boeing 737 NGs / 13 EMBRAER-190s) and purchase rights and options
       for 38 aircraft (8 Boeing 737 NGs / 30 EMBRAER-190s).
    -- In June, Copa Airlines began taking delivery of the total of seven
       aircraft scheduled to be delivered in 2007, having received three
       aircraft consisting of two EMBRAER-190s and one Boeing 737-800.  For
       the remainder of the year Copa expects to take delivery of four
       additional aircraft - 3 EMBRAER-190s and a Boeing 737-800 -ending 2007
       with a fleet of 37 aircraft.
    -- On July 13, Aero Republica began its second daily frequency from Bogota
       to Panama City.  Aero Republica currently provides international
       connectivity into Copa Airlines' Hub of the Americas from the Colombian
       cities of Bogota, Cali, Cartagena and Medellin.  Additionally, Aero
       Republica will be adding service from Bucaramanga, Colombia into Panama
       City in October 2007.
    -- On July 15, Copa Airlines began service from its Hub of in Panama City
       to Washington D.C. and Punta Cana (Dominican Republic), as well as
       Guadalajara (Mexico) on July 18 and Cordoba (Argentina) on August 15.
       Copa Airlines network currently serves 40 cities in 21 countries in
       North, South and Central America and the Caribbean.
    -- On July 16, an Aero Republica aircraft overran the runway on arrival at
       the Simon Bolivar International Airport in the city of Santa Marta,
       Colombia.  No major injuries were sustained.   The aircraft involved in
       this incident, an EMBRAER-190 which entered into service on January 17,
       2007, sustained considerable damage and is currently out of operation.
    -- On July 30, Copa Airlines announced a comprehensive code share
       agreement with AeroMexico which formally began on August 1, 2007.  As
       part of the agreement, Copa Airlines has placed its designator code on
       AeroMexico-operated flights beyond Mexico City to 17 Mexican cities.
       Additionally, AeroMexico has placed its designator code on Copa
       Airlines-operated flights between the Hub of the Americas in Panama
       City to Mexico City, Cancun and Guadalajara.



    Consolidated Financial &
     Operating Highlights             2Q07    2Q06  % Change   1Q07   % Change
    Revenue Passenger Miles (RPM)
     (mm)                            1,346   1,137   18.3%    1,427    -5.7%
    Available Seat Miles (ASM) (mm)  1,880   1,631   15.3%    1,868     0.6%
    Load Factor                       71.6%   69.7%  1.8p.p.   76.4%  -4.8p.p.
    Yield                             16.4    15.8    4.1%     16.1     1.9%
    Passenger Revenue per ASM (US$
     cents) ("PRASM")                 11.8    11.0    6.9%     12.3    -4.5%
    Operating Revenue per ASM (US$
     cents) ("RASM")                  12.5    11.7    6.6%     13.0    -3.7%
    Operating Cost per ASM (US$
     cents) ("CASM")                  10.4    10.0    4.5%      9.7     7.2%
    Operating Cost (excluding fuel)
     per ASM (US$ cents)               7.3     6.7    8.0%      6.7     7.7%
    Breakeven Load Factor             59.3%   58.6%  0.7p.p.   56.5%   2.8p.p.
    Operating Revenues (US$ mm)      235.3   191.5   22.9%    242.7    -3.1%
    EBITDAR (US$ mm) *                61.7    46.1   33.7%     79.5   -22.4%
    EBITDAR Margin *                  26.2%   24.1%  2.1p.p.   32.8%  -6.5p.p.
    Operating Income (US$ mm)         39.0    28.5   37.0%     60.8   -35.9%
    Operating Margin                  16.6%   14.9%  1.7p.p.   25.0%  -8.5p.p.
    Net Income (US$ mm)               30.9    22.9   35.2%     48.6   -36.4%
    Net Margin                        13.1%   11.9%  1.2p.p.   20.0%  -6.9p.p.
    Earnings per Share - Basic (US$)  0.72    0.53   35.2%     1.13   -36.4%
    Earnings per Share - Diluted
     (US$)                            0.71    0.53   33.3%     1.12   -36.5%
    Weighted Average Number of
     Shares - Basic (000)           42,817  42,813    0.0%   42,817     0.0%
    Weighted Average Number of
     Shares - Diluted (000)         43,502  42,895    1.4%   43,435     0.2%

* 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. A reconciliation of EBITDAR to consolidated net income is attached to this press release.

Full 2Q07 earnings release available to download on: http://investor.shareholder.com/copa/results.cfm

    2Q07 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
      Date:                 August 16, 2007
      Time:                 11:00 a.m. US EDT (10 a.m. Local Time)
      Conference Call:
      Telephone Number:     800-811-8845 (U.S. Domestic Callers)
                            913-981-4905 (International Callers)
      Webcast:              http://investor.shareholder.com/copa/events.cfm

About Copa Holdings

Copa Holdings, through its Copa Airlines and Aero Republica operating subsidiaries, is a leading Latin American provider of international airline passenger and cargo service. Copa Airlines currently offers approximately 116 daily scheduled flights to 40 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 code share agreements with Continental Airlines and other airlines. Aero Republica, 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 flights from Bogota, Cali, Cartagena 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-G

    COPA HOLDINGS, S.A. - EBITDAR RECONCILIATION
    (Figures in US$ thousands)

                                             2Q07        2Q06       1Q07

    Net Income                             $30,907     $22,864    $48,566

      Interest Expense                     (10,393)     (6,698)    (9,848)
      Capitalized Interest                     736         550        531
      Interest Income                        3,031       1,570      2,542
      Income Taxes                          (3,839)     (1,757)    (4,361)

    EBIT                                    41,372      29,199     59,702

      Depreciation and Amortization          8,455       5,502      7,995

    EBITDA                                  49,827      34,701     67,697

      Aircraft Rent                          9,303       8,886      9,163
      Other Rentals                          2,575       2,558      2,685

    EBITDAR                                $61,706     $46,145    $79,546

SOURCE Copa Holdings, S.A.

Investor Relations of Copa Holdings S.A., +1-507-304-2677,
investorrelations@copaair.com

http://www.copaair.com/

Copyright (C) 2007 PR Newswire. All rights reserved

News Provided by COMTEX