PANAMA CITY, Panama, May 8, 2008 /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 first quarter of 2008 (1Q08). 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. Unless otherwise stated all comparisons with prior periods refer to the first quarter of 2007 (1Q07).

    OPERATING AND FINANCIAL HIGHLIGHTS
    -- Copa Holdings reported net income of US$39.5 million for 1Q08, or
       diluted earnings per share (EPS) of US$0.91, as compared to net income
       of US$48.6 million or diluted EPS of US$1.12 in 1Q07.  Operating income
       for 1Q08 came in at US$51.7 million, as compared to operating income of
       US$60.8 million for 1Q08.  Operating margin decreased from 25.0% to
       17.5%, maintaining its position among the most profitable airlines in
       the industry.
    -- These strong results were achieved despite US$21.7 million in
       additional fuel costs as a result of a 35.1% increase in the all-in
       average price per gallon of jet fuel.
    -- In 1Q08, total revenues increased to US$295.9 million, representing
       growth of 21.9%.  Yield per passenger mile increased 7.2% to 17.3 cents
       and operating revenue per available seat mile (RASM) increased 9.6% to
       14.2 cents.
    -- Revenue passenger miles (RPMs) increased 13.5% from 1.43 billion in
       1Q07 to 1.62 billion in 1Q08, and available seat miles (ASMs) increased
       11.2% from 1.87 billion in 1Q07 to 2.08 billion in 1Q08, with the Copa
       Airlines segment increasing 16.9% year-over-year and Aero Republica
       decreasing 9.7% as a result of their down gauge to an Embraer-190
       fleet.  Consolidated load factor increased 1.6 percentage points from
       76.4% to 78.0%.
    -- Operating cost per available seat mile (CASM), increased 20.7% from 9.7
       cents in 1Q07 to 11.8 cents in 1Q08.  CASM, excluding fuel costs,
       increased 14.1% from 6.7 cents in 1Q07 to 7.7 cents in 1Q08, mainly due
       to an increase in Aero Republica's unit costs driven by timing of
       maintenance events, Colombian currency appreciation and down gauging to
       an Embraer-190 fleet.
    -- Liquidity including cash, short term and long term investments plus
       committed credit lines ended the quarter at US$357.1 Million,
       representing 33% of last twelve months revenues.
    -- For 1Q08, Copa Airlines reported an on-time performance of 90.3% and a
       flight-completion factor of 99.8%, maintaining its position among the
       best in the industry.
    -- On March 10, Copa Airlines launched direct service from Panama and
       connecting cities to Port of Spain, Trinidad and Tobago -- the
       airline's 41st destination.


    RECENT DEVELOPMENTS
    -- On April 11, Copa Airlines took delivery of its 12th Embraer-190
       aircraft, bringing its fleet total to 38, with an average age of 3.9
       years.  Copa Holdings consolidated fleet, including Aero Republica, is
       currently composed of 51 aircraft.
    -- In April, Aero Republica was certified under IATA's Operational Safety
       Audit (IOSA).
    -- On May 7, the Board of Directors of Copa Holdings declared an annual
       dividend of $0.37 per share.  The dividend is payable June 16, 2008, to
       stockholders of record as of May 30, 2008.
    -- CIASA, controlling shareholder of Copa Holdings, S.A., has recently
       reached an agreement in principle with Continental Airlines, Inc.
       ("Continental") to waive the lock-up under the shareholders agreement
       dated June 29, 2006, which currently restricts Continental's ability to
       sell its remaining shares of Copa's Class A common stock through June
       29, 2008.  The Company is preparing a registration statement to be
       filed with the U.S. Securities and Exchange Commission.   Once the
       registration statement is effective, Continental will have the
       flexibility to sell its remaining shares of Copa Holdings.



    Consolidated Financial &
    Operating Highlights          1Q08    1Q07   % Change    4Q07   % Change

    RPMs (millions)               1,619   1,427      13.5%   1,524       6.3%
    ASMs (mm)                     2,077   1,868      11.2%   2,066       0.5%
    Load Factor                   78.0%   76.4%   1.6 p.p.   73.8%   4.2 p.p.
    Yield                          17.3    16.1       7.2%    17.5      -0.9%
    PRASM (cents)                  13.5    12.3       9.5%    12.9       4.7%
    RASM (cents)                   14.2    13.0       9.6%    13.8       3.4%
    CASM (cents)                   11.8     9.7      20.7%    11.7       0.6%
    Adjusted CASM (cents) (1)      11.8     9.7      20.7%    11.4       3.2%
    Adjusted CASM Excl. Fuel
     (cents)(1)                     7.7     6.7      14.1%     7.6       1.4%
    Breakeven Load Factor         64.3%   54.3%  10.0 p.p.   60.2%   4.1 p.p.
    Operating Revenues (US$ mm)   295.9   242.7      21.9%   284.6       4.0%
    EBITDAR (US$ mm) (2)           75.9    79.5      -4.6%    72.2       5.1%
    Adjusted EBITDAR (US$ mm) (3)  75.9    79.5      -4.6%    78.5      -3.3%
    EBITDAR Margin (2)            25.6%   32.8%  -7.1 p.p.   25.4%   0.3 p.p.
    Adjusted EBITDAR Margin (3)   25.6%   32.8%  -7.1 p.p.   27.6%  -1.9 p.p.
    Operating Income (US$ mm)      51.7    60.8     -14.9%    43.0      20.3%
    Adjusted Operating Income
     (US$ mm) (1)                  51.7    60.8     -14.9%    49.3       4.9%
    Operating Margin              17.5%   25.0%  -7.6 p.p.   15.1%   2.4 p.p.
    Adjusted Operating Margin
     (US$ mm) (1)                 17.5%   25.0%  -7.6 p.p.   17.3%   0.2 p.p.
    Net Income (US$ mm)            39.5    48.6     -18.7%    35.5      11.2%
    Adjusted Net Income (US$ mm)
     (3)                           39.5    48.6     -18.7%    41.8      -5.6%
    Net Margin                    13.3%   20.0%  -6.7 p.p.   12.5%   0.9 p.p.
    Adjusted Net Margin (3)       13.3%   20.0%  -6.7 p.p.   14.7%  -1.3 p.p.
    EPS - Basic (US$)              0.92    1.13     -19.0%    0.83      10.7%
    Adjusted EPS - Basic (US$) (3) 0.92    1.13     -19.0%    0.97      -5.7%
    EPS - Diluted (US$)            0.91    1.12     -18.7%    0.82      11.1%
    Adjusted EPS - Diluted (US$)
     (3)                           0.91    1.12     -18.7%    0.96      -5.6%
    Weighted Avg. # of Shares -
     Basic (000)                 42,985  42,817       0.4%  42,938       0.1%
    Weighted Avg. # of Shares -
     Diluted (000)               43,433  43,449       0.0%  43,401       0.1%

    (1) Adjusted Operating Income and Adjusted CASM exclude special charges of
        US$6.3 million recorded in 4Q07, related to the early termination of
        MD-80 aircraft leases, as a result of Aero Republica's ongoing
        transition to an all EMBRAER-190 fleet.
    (2) EBITDAR means earnings before interest, taxes, depreciation,
        amortization and rent.
    (3) Adjusted EBITDAR, Adjusted Net Income and Adjusted EPS (Basic and
        Diluted):  a) Excludes special charges of US$6.3 million recorded in
        1Q08, related to the early termination of MD-80 aircraft leases, as a
        result of Aero Republica's ongoing transition to an all Embraer-190
        fleet.

    Note:  Attached to this press release is a reconciliation of non-GAAP
           financial measures to the comparable US GAAP measures.

Full 1Q08 earnings release available to download on: http://investor.shareholder.com/copa/results.cfm

    1Q08 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
        Date:                      May 8, 2008
        Time:                      11:00 a.m. US EDT (10:00 a.m. Local time)
        Conference Call:
        Telephone Number:          877-397-0286  (U.S. Domestic Callers)
                                   719-325-4900   (International Callers)
        Webcast Link:
        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 41 destinations in 22 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, Bucaramanga, 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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. There shall be no sale of any securities in any jurisdiction in which such offer; solicitation or sale would be unlawful prior to registration under the securities laws of such jurisdiction.

    Copa Holdings, S.A.
    NON-GAAP FINANCIAL MEASURE RECONCILIATION

This press release includes the following non GAAP financial measures: Adjusted CASM, Adjusted CASM Excluding Fuel, Adjusted EBITDAR, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS. This supplemental information is presented because we believe they are useful indicators of our operating performance and are useful in comparing our performance with other companies in the airline industry. These measures should not be considered in isolation, and should be considered together with comparable US GAAP measures, in particular operating income and net income. The following is a reconciliation of these non-GAAP financial measures to the comparable US GAAP measures:

    EBITDAR (Figures in US$ thousands)         1Q08        1Q07        4Q07

    Net Income                               $39,499     $48,566     $35,526

      Interest Expense                       (10,980)     (9,848)    (12,567)
      Capitalized Interest                       521         531         584
      Interest Income                          2,768       2,542       3,361
      Income Taxes                            (4,104)     (4,361)     (5,058)
    EBIT                                      51,295      59,703      49,206

      Depreciation and Amortization           10,000       7,995       9,821
    EBITDA                                    61,295      67,697      59,027

      Aircraft Rent                           10,673       9,163       9,692
      Other Rentals                            3,883       2,685       3,461
    EBITDAR                                  $71,981     $79,546     $72,180

        Special Charges                          -           -         6,300
        Non-recurring gain                       -           -           -
    Adjusted EBITDAR                         $75,851     $70,272     $78,281

    EARNINGS PER SHARE                         4Q07        4Q06        4Q07
    Diluted Earnings per Share                 $0.91       $1.12       $0.82

    Adjustments:
        Special Charges                          -           -          0.15
    Adjusted Diluted EPS                       $0.91       $1.12       $0.96

    CASM (cents)                               4Q07        4Q06        4Q07
    Cost per available seat mile (CASM)        $11.8        $9.7       $11.7

        Less: Special Charges per ASM            -           -          (0.3)
    Adjusted CASM                              $11.8        $9.7       $11.4

        Less: Fuel Cost per ASM                 (4.1)       (3.0)       (3.8)
    Adjusted CASM Excluding Fuel                $7.7        $6.7        $7.6

    CPA-G

SOURCE Copa Holdings, S.A.

http://www.copaair.com

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