PANAMA CITY, Nov 15, 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 third quarter of 2006 (3Q06). 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 third quarter of 2005 (3Q05). The following financial and operating information, unless otherwise indicated, is presented pursuant to US GAAP.

    OPERATING AND FINANCIAL HIGHLIGHTS

    -- Copa Holdings recorded net income of US$37.2 million for 3Q06, an
       increase of 34.6% above 3Q05.  Net margin increased 0.6 percentage
       points to 16.1%, placing the Company among the best in the industry in
       terms of net margin.  Diluted earnings per share (EPS) increased by
       34.3% to US$0.87.
    -- Operating income for the quarter rose 25.4% to US$45.2 million,
       representing an operating margin of 19.6%, also among the best in the
       industry.
    -- Consolidated average load factor for 3Q06 increased 1.8 percentage
       points to 75.4% from 73.6% in 3Q05, as revenue passenger miles (RPMs)
       increased 19.6% to 1.35 billion in 3Q06 and available seat miles (ASMs)
       increased 16.8% to 1.78 billion in 3Q06.
    -- Total revenues for the quarter increased by 29.6% to US$230.6 million,
       primarily due to a 30.7% increase in passenger revenues.  Operating
       revenue per available seat mile (RASM) increased 11.0% to 12.9 cents,
       with yields increasing 9.3% to 16.2 cents.
    -- Operating cost per available seat mile (CASM) increased 11.9%, from 9.3
       cents in 3Q05 to 10.4 cents in 3Q06, led by an 18.3% increase in fuel
       costs per ASM.  This increase was primarily a result of a 19.7%
       increase in the average price per gallon of jet fuel (all-in), which
       averaged US$2.33 in 3Q06 vs. US$1.95 in 3Q05, and the consumption of
       16.1% more gallons as a result of increased capacity.
    -- In July, Copa Airlines continued its fleet expansion by taking delivery
       of an additional Boeing 737-700.   During 4Q06 Copa Airlines will
       receive two additional Embraer 190 aircraft to end the year with a
       fleet of 30 aircraft.
    -- During 3Q06, 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.  Also, new daily frequencies were added in 3Q06
       to Havana (Cuba), Santo Domingo (Dominican Republic) and San Jose
       (Costa Rica).  In 4Q06, Copa Airlines has added a third frequency to
       Mexico City (Mexico) and will begin service to Rio de Janeiro (Brazil)
       in December.
    -- On August 3, 2006, AeroRepublica began daily service from Bogota to
       Copa Airlines' Hub of the Americas in Panama City.  AeroRepublica now
       provides the Colombian market with intra-regional connectivity from two
       major Colombian cities: Bogota and Medellin. Additionally, in 1Q06,
       AeroRepublica will begin daily service from Cali, Colombia into Panama
       City.
    -- In 3Q06, as part of its fleet modernization program, AeroRepublica
       signed lease agreements with GE Commercial Aviation Services (GECAS)
       for three Embraer 190 aircraft to be delivered in 2007.  The airline
       now has firm orders and delivery commitments for eight aircraft, all of
       which are Embraer 190s.
    -- On September 5, 2006, Copa Airlines announced the signing of a
       maintenance agreement with Panama Aerospace Engineering (PAE), a
       subsidiary of Singapore Technologies Aerospace LTD. As part of this
       agreement, Panama Aerospace will perform all heavy maintenance of Copa
       Airlines' Boeing Next Generation fleet in their new facilities in
       Howard Airport, located a short distance from Panama City.
    -- On September 6, 2006, AeroRepublica unveiled is new corporate image.
       This new image will introduce Copa Airlines' logo, livery and overall
       image while maintaining the AeroRepublica brand name.
    -- On October 20, 2006, Copa Airlines was named one of the "Best Employers
       in Latin America" by America Economia Magazine in conjunction with
       Hewitt Associates.
    -- On October 30, 2006, Copa Holdings announced it has secured US$240
       million in financing for the acquisition of 10 new Embraer 190s, due
       for delivery in 2006 and 2007.  The loan will finance aircraft
       scheduled to be delivered both to Copa Airlines and AeroRepublica.


    Consolidated Financial
     & Operating
     Highlights           3Q06        3Q05    % Change      2Q06  % Change
    Revenue Passenger
     Miles (RPM) (mm)    1,345       1,125       19.6%     1,137      18.3%
    Available Seat
     Miles (ASM) (mm)    1,784       1,527       16.8%     1,631       9.4%
    Load Factor          75.4%       73.6%     1.8p.p.     69.7%    5.7p.p.
    Yield                 16.2        14.8        9.3%      15.8       2.5%
    Passenger Revenue
     per ASM (US$ cents)
     ("PRASM")            12.2        10.9       12.0%      11.0      10.9%
    Operating Revenue
     per ASM (US$ cents)
     ("RASM")             12.9        11.6       11.0%      11.7      10.2%
    Operating Cost per
     ASM (US$ cents)
     ("CASM")             10.4         9.3       11.9%      10.0       4.0%
    Operating Cost
     (excluding fuel)
     per ASM
     (US$ cents)           7.0         6.4        9.0%       6.7       3.7%
    Breakeven Load
     Factor              59.7%       58.3%     1.4p.p.     58.8%   0.9p.p.
    Operating Revenues
     (US$ mm)            230.6       177.9       29.6%     191.5      20.4%
    EBITDAR (US$ mm) *    66.0        50.6       30.3%      46.1      42.9%
    EBITDAR Margin *     28.6%       28.4%     0.2p.p.     24.1%    4.5p.p.
    Operating Income
     (US$ mm)             45.2        36.1       25.4%      28.5      58.9%
    Operating Margin     19.6%       20.3%    -0.7p.p.     14.9%    4.7p.p.
    Net Income (US$ mm)   37.2        27.7       34.6%      22.9      62.9%
    Net Margin           16.1%       15.6%      0.6p.p      11.9    4.2p.p.
    Earnings per
     Share - Basic (US$)  0.87        0.65       34.6%      0.53      62.9%
    Earnings per Share -
     Diluted (US$)        0.87        0.65       34.3%      0.53      62.7%
    Weighted Average
     Number of Shares -
     Basic (000)        42,813      42,813        0.0%    42,813       0.0%
    Weighted Average
     Number of Shares -
     Diluted (000)      42,908      42,813        0.2%    42,860       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 3Q06 earnings release available to download on: http://investor.shareholder.com/copa/results.cfm

    3Q06 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
     Date:                        November 15, 2006
     Time:                        11:00 a.m. US EST
     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 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, +011-507-304-2677,
investorrelations@copaair.com

http://www.copaair.com/

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