PANAMA CITY, May 17, 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 first quarter of 2006 (1Q06). The term "Copa Holdings" or "the Company" makes reference to the consolidated entity, whose operating subsidiaries are Copa Airlines and AeroRepublica. All comparisons, unless otherwise stated, refer to the first quarter of 2005 (1Q05). 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 March 31, 2006 is not comparable to the information at and for the three-months ended March 31, 2005.

OPERATING AND FINANCIAL HIGHLIGHTS
    -- Copa Holdings net income for 1Q06 was a record US$32.2 million,
       representing a 16.8% net margin.  Diluted Earnings per share (EPS)
       increased by 42.8% to US$0.75, above average estimates of US$0.52.
       (Source: I/B/E/S consensus estimates).
    -- Operating income for 1Q06 rose 60.6% to US$41.7 million from US$26.0
       million in 1Q05.  Operating margin stood at 21.8%, a 1.1 percentage
       point decrease over 1Q05, maintaining our place among the highest in
       the industry.
    -- EBITDAR increased by 46.9% to US$55.2 million in 1Q06 from US$37.6
       million in 1Q05, representing an EBITDAR margin of 28.8%.
    -- Total revenues increased by 68.8% to US$191.7 million.  Yield rose 9.3%
       to 15.6 cents and operating revenue per available seat mile (RASM)
       increased 6.4% to 11.9 cents.
    -- Revenue passenger miles (RPMs) increased 56.9% from 736 million in 1Q05
       to 1.16 billion in 1Q06. Available seat miles (ASMs) increased 58.6%
       from 1.02 billion in 1Q05 to 1.62 billion in 1Q06. As a result, average
       load factor decreased 0.8 percentage points to 71.5%.
    -- Operating cost per available seat mile (CASM) increased 7.9% from 8.6
       cents in 1Q05 to 9.3 cents in 1Q06.  However, CASM excluding fuel
       decreased 2.2% from 6.5 cents in 1Q05 to 6.4 cents in 1Q06.
    -- For 1Q06, Copa Airlines reported an on-time performance of 92.3% and a
       flight-completion factor of 99.7%, among the best in the industry.
    -- On March 1, 2006, AeroRepublica joined OnePass, Continental Airlines'
       award-winning frequent flyer program.
    -- On March 15, AeroRepublica announced a fleet modernization and
       expansion plan that includes firm orders for five Embraer 190 aircraft,
       as well as options to buy an additional 20 Embraer 190 aircraft.  The
       first two Embraer 190 aircraft are scheduled to be delivered to
       AeroRepublica in 4Q06.
    -- On April 20, Copa Airlines announced the acquisition of one new Boeing
       737-800 and three new Embraer 190 aircraft.  Copa Airlines now has firm
       orders for 21 aircraft (8 Boeing 737NG's / 13 EMB-190's) and options to
       purchase an additional 24 aircraft (9 Boeing 737NG´s / 15 EMB-190´s).
       On a consolidated basis, Copa Airlines and AeroRepublica combined now
       have firm orders for 26 aircraft (8 Boeing 737 NG's / 18 EMB-190's) and
       options for 44 aircraft (9 Boeing 737 NG's / 35 EMB-190's).
    -- On May 11, the Board of Directors of Copa Holdings declared an annual
       dividend of 0.19 cents per share.  The dividend is payable June 15,
       2006, to stockholders of record as of May 31, 2006.
    -- Copa Airlines has announced six new destinations for 2006, to which it
       will begin service during the second half of 2006, namely Maracaibo,
       Venezuela; Manaus, Brazil; San Pedro Sula, Honduras; Montevideo,
       Uruguay; Santiago, Dominican Republic; and Port of Spain, Trinidad and
       Tobago.  With these Copa Airlines increases the total number of
       destinations served to 36 cities in North, South, Central America and
       the Caribbean.

                Consolidated Financial & Operating Highlights

                                1Q06      1Q05    %Change    4Q05   %Change
    Revenue Passenger
     Miles(RPM)(mm)             1,155      736     56.9%    1,088     6.1%
    Available Seat
     Miles (ASM) (mm)           1,615    1,018     58.6%    1,549     4.2%
    Load Factor                  71.5%    72.3%    -0.8p.p.  70.2%   +1.3p.p.
    Passenger Revenue per ASM
    (US$ cents) ("PRASM")       11.17    10.33      8.1%    10.75     3.9%
    Operating Revenue per
     ASM (US$ cents) ("RASM")   11.87    11.16      6.4%    11.59     2.4%
    Operating Cost per ASM
    (US$ cents) ("CASM")         9.29     8.61      7.9%     9.86    -5.8%
    Operating Cost (excluding
     fuel) per ASM (US$ cents)   6.37     6.51     -2.2%     6.54    -2.5%
    Breakeven Load Factor        55.8%    52.1%     3.7p.p.  61.1%   -5.3p.p.
    Operating Revenues (US$ mm) 191.7    113.6     68.8%    179.6     6.7%
    EBITDAR (US$ mm) *           55.2     37.6     46.9%     36.4    51.6%
    EBITDAR Margin *             28.8%    33.1%    -4.3p.p.  20.3%   +8.5p.p.
    Operating Income (US$ mm)    41.7     26.0     60.6%     26.8    55.6%
    Operating Margin             21.8%    22.9%    -1.1p.p.  14.9%   +6.8p.p.
    Net Income (US$ mm)          32.2     22.6     42.9%     17.7    82.6%
    Earnings per Share -
     Basic (US$ )                0.75     0.53     42.9%     0.41    82.6%
    Earnings per Share -
     Diluted (US$)               0.75     0.53     42.8%     0.41    82.4%
    Weighted Average Number
     of Shares - Basic (000)   42,813   42,813      0.0%   42,813     0.0%
    Weighted Average Number
     of Shares - Diluted (000) 42,854   42,813      0.1%   42,813     0.1%

    * 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 1Q06 earnings release available to download on: http://investor.shareholder.com/copa/results.cfm

1Q06 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
     Date:                 May 17, 2006
     Time:                 11:00 a.m. US EST / 10 a.m. Local time
     Conference Call:
     Telephone Number:     800-289-0494 (U.S. Domestic Callers)
                           913-981-5520 (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 92 daily scheduled flights to 30 destinations in 20 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 Medellin and Cartagena.

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.

Joseph Putaturo, Director of Investor Relations of Copa Holdings, S.A.,
+011-507-304-2677, jputaturo@copaair.com

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