6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Report on Form 6-K dated for the month of May 2023

Copa Holdings, S.A.

(Translation of Registrant's Name Into English)

Boulevard Costa del Este, Avenida Principal y Avenida de la Rotonda

Urbanización Costa del Este

Complejo Business Park, Torre Norte

ParqueLefevre

Panama City, Panama

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F X Form 40-F

(Indicate by check whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes No X

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b);82- )

Enclosure: 1Q23 Earnings Release

 


SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Copa Holdings, S.A.
(Registrant)

 Date: 5/11/2023

By:

/s/ José Montero

Name: José Montero

Title: CFO

 


EX-99.1

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Exhibit 99.1

Copa Holdings Reports Financial Results for the First Quarter of 2023

 

Panama City, Panama --- May 10, 2023. Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2023 (1Q23). The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2019 (1Q19) (which the Company believes are more relevant than year-over-year comparisons due to the significant impact of the COVID-19 pandemic in 2020, 2021, and 2022).

 

OPERATING AND FINANCIAL HIGHLIGHTS

Copa Holdings reported a net profit of US$121.5 million for 1Q23 or US$3.07 per share, as compared to a net profit of US$89.4 million or earnings per share of US$2.11 in 1Q19. Excluding special items comprised of the unrealized mark-to-market net loss of US$36.3 million related to the Company’s convertible notes, as well as changes in the value of financial investments, the Company would have reported a net profit of US$157.8 million or US$3.99 per share.
Copa Holdings reported an operating profit of US$193.2 million and a 22.3% operating margin for the quarter, as compared to an operating profit of US$112.9 million and an operating margin of 16.8% in 1Q19.
Passenger traffic, measured in terms of revenue passenger miles (RPMs), increased by 7.1% compared to 1Q19, while capacity (available seat miles or ASMs) increased by 2.8%. As a result, the load factor for the quarter increased by 3.5 percentage points to 86.8%, as compared to 1Q19.
Total revenues for 1Q23 increased 29.0% to US$867.3 million, as compared to 1Q19 revenues. Yields increased 20.0% to 14.6 cents and revenue per available seat mile (RASM) increased 25.5% to 13.1 cents.
Operating cost per available seat mile (CASM) increased 17.2% from 8.7 cents in 1Q19 to 10.2 cents in 1Q23, mainly driven by an increase of 61.4% in the price of jet fuel per gallon. CASM excluding fuel (Ex-fuel CASM) increased 2.1% in the quarter to 6.2 cents, as compared to 1Q19.
The Company ended the quarter with approximately US$1.2 billion in cash, short-term and long-term investments, which represent 36.3% of the last twelve months’ revenues.
The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion, while our Net Debt to EBITDA ratio ended at 0.6 times, a decrease when compared to the previous quarter.
During the quarter, the Company took delivery of two Boeing 737 MAX 9 aircraft, ending the quarter with a consolidated fleet of 99 aircraft – 67 Boeing 737-800s, 22 Boeing 737 MAX 9s, 9 Boeing 737-700s, and 1 Boeing 737-800 freighter, compared to a fleet of 102 aircraft prior to the COVID-19 pandemic.
Copa Airlines had an on-time performance for the quarter of 92.2% and a flight completion factor of 99.9%, once again positioning itself among the very best in the industry.

 

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Subsequent Events

Copa Holdings will pay its second quarterly dividend of $0.82 per share on June 15, to all Class A and Class B shareholders on record as of May 31, 2023.

 

Consolidated Financial
& Operating Highlights

1Q23

 

1Q19 (2)

 

Variance vs. 1Q19

 

4Q22

 

Variance vs. 4Q22

 

Revenue Passengers Carried (000s)

 

2,881

 

 

2,588

 

 

11.3

%

 

2,813

 

 

2.4

%

Revenue Passengers OnBoard (000s)

 

4,295

 

 

3,830

 

 

12.1

%

 

4,262

 

 

0.8

%

RPMs (millions)

 

5,723

 

 

5,345

 

 

7.1

%

 

5,639

 

 

1.5

%

ASMs (millions)

 

6,596

 

 

6,415

 

 

2.8

%

 

6,509

 

 

1.3

%

Load Factor

 

86.8

%

 

83.3

%

 

3.5 p.p.

 

 

86.6

%

 

0.1 p.p.

 

Yield (US$ Cents)

 

14.6

 

 

12.1

 

 

20.0

%

 

15.1

 

 

-3.6

%

PRASM (US$ Cents)

 

12.6

 

 

10.1

 

 

25.0

%

 

13.1

 

 

-3.4

%

RASM (US$ Cents)

 

13.1

 

 

10.5

 

 

25.5

%

 

13.7

 

 

-3.9

%

CASM (US$ Cents)

 

10.2

 

 

8.7

 

 

17.2

%

 

10.3

 

 

-0.9

%

CASM Excl. Fuel (US$ Cents)

 

6.2

 

 

6.1

 

 

2.1

%

 

6.1

 

 

1.5

%

Fuel Gallons Consumed (millions)

 

78.2

 

 

81.2

 

 

-3.7

%

 

77.7

 

 

0.6

%

Avg. Price Per Fuel Gallon (US$)

 

3.36

 

 

2.09

 

 

61.4

%

 

3.52

 

 

-4.5

%

Average Length of Haul (miles)

 

1,987

 

 

2,065

 

 

-3.8

%

 

2,005

 

 

-0.9

%

Average Stage Length (miles)

 

1,281

 

 

1,299

 

 

-1.4

%

 

1,266

 

 

1.2

%

Departures

 

31,984

 

 

33,329

 

 

-4.0

%

 

32,112

 

 

-0.4

%

Block Hours

 

104,626

 

 

110,089

 

 

-5.0

%

 

104,822

 

 

-0.2

%

Average Aircraft Utilization (hours)

 

11.9

 

 

11.6

 

 

1.9

%

 

11.8

 

 

0.8

%

Operating Revenues (US$ millions)

 

867.3

 

 

672.2

 

 

29.0

%

 

890.6

 

 

-2.6

%

Operating Profit (Loss) (US$ millions)

 

193.2

 

 

112.9

 

 

71.2

%

 

219.7

 

 

-12.0

%

Operating Margin

 

22.3

%

 

16.8

%

 

5.5 p.p.

 

 

24.7

%

 

-2.4 p.p.

 

Net Profit (Loss) (US$ millions)

 

121.5

 

 

89.4

 

 

35.9

%

 

88.3

 

 

37.7

%

Adjusted Net Profit (Loss) (US$ millions) (1)

 

157.8

 

 

89.4

 

 

76.4

%

 

177.7

 

 

-11.2

%

Basic EPS (US$)

 

3.07

 

 

2.11

 

 

45.9

%

 

2.23

 

 

37.6

%

Adjusted Basic EPS (US$) (1)

 

3.99

 

 

2.11

 

 

89.4

%

 

4.49

 

 

-11.2

%

Shares for calculation of Basic EPS (000s)

 

39,565

 

 

42,478

 

 

-6.9

%

 

39,554

 

 

0.0

%

 

(1)
Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
(2)
The Company believes that comparisons with 2019 are more relevant than year-over-year comparisons due to the significant impacts of the COVID-19 pandemic in 2020, 2021, and 2022.

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MANAGEMENT’S COMMENTS ON 1Q23 RESULTS

Copa Holdings delivered solid financial results for the first quarter of 2023. The Company’s results were driven by a healthy demand environment in the region, which led to strong unit revenues in the quarter, and by its consistent cost execution strategy.

 

Operating revenues for the quarter increased 29.0% to US$867.3 million while operating 2.8% more capacity compared to 1Q19. The Company’s load factor came in at 86.8% or 3.5 percentage points above 1Q19 and yields came in at 14.6 cents or 20.0% higher than 1Q19. As a result, passenger revenues per ASM (PRASM) increased 25.0% to 12.6 cents and RASM increased 25.5% to 13.1 cents in the quarter.

 

Operating expenses for 1Q23 increased 20.5% to US$674.1 million, mainly due to a higher jet fuel cost. Aircraft fuel expenses increased 56.0% or US$95.3 million compared to 1Q19, due to a 61.4% higher jet fuel price, partially offset by 3.7% fewer gallons consumed.

Driven by the increase in fuel cost, cost per available seat mile (CASM) came in at 10.2 cents, an increase of 17.2% compared to 1Q19. Costs excluding fuel (Ex-fuel CASM) came in at 6.2 cents, a 2.1% increase when compared to the same period in 2019.

Copa Holdings closed the quarter with US$ 1.2 billion in cash, short-term and long-term investments, which represent 36.3% of the last twelve months’ revenues.

Total debt at the end of 1Q23 amounted to US$1.7 billion compared to US$1.6 billion at the end of 2022, while our Net Debt to EBITDA ratio ended at 0.6 times, a decrease when compared to the previous quarter.

 

The Company has a proven business model, which is built on operating the best and most convenient network for intra-Latin America travel from its Hub of the Americas® based on Panama’s advantageous geographic position, low unit costs, best on-time performance, and a strong balance sheet. Going forward, the Company expects to leverage its strong balance sheet, leading liquidity position, and lower cost base to continue strengthening its long-term competitive position by implementing initiatives that will further reinforce its network, product, and cost competitiveness.

 

 

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OUTLOOK FOR 2023

 

For 2023, the Company updates its outlook as follows: consolidated capacity is expected to grow within a range of 12% to 13% over 2022, and operating margin is now expected to come within the range of 22% to 24%.

 

Financial Outlook

2023
Guidance

2022
 

Capacity – YOY ASM growth

12-13%

63.6%

Operating Margin

22-24%

15.2%

 

Factored into this outlook is a load factor of approximately 85%, unit revenues (RASM) of 12.5 cents, unit costs excluding fuel (Ex-Fuel CASM) in the range of 6.1 cents, and an all-in fuel price of US$2.85 per gallon.

 

CONSOLIDATED FIRST-QUARTER RESULTS

Operating revenue

Consolidated revenue for 1Q23 totaled US$867.3 million, mainly driven by passenger revenue.

 

Passenger revenue totaled US$834.0 million, a 28.5% increase compared to the same period in 2019, mostly driven by 20.0% higher yields. The first-quarter results are mostly comprised of flown passenger ticket revenue, passenger-related ancillary revenue, and unredeemed ticket revenue.

 

Cargo and mail revenue which in 2023 includes the operation of one Boeing 737-800 freighter, totaled US$23.3 million, a 51.8% increase compared to the same period in 2019, related to higher cargo volumes and yields.

Other operating revenue totaled US$10.0 million, a 24.0% increase compared to the same period in 2019, mainly revenues from non-air ConnectMiles partners.

 

Operating expenses

 

Fuel totaled US$265.5 million, an increase of 56.0% compared to the same period in 2019, due to a 61.4% higher effective fuel price, partially offset by 3.7% fewer fuel gallons consumed.

Wages, salaries, benefits, and other employee expenses totaled US$102.7 million, representing a 9.7% decrease compared to the same period in 2019, mainly driven by a reduced administrative headcount as well as more subcontracted services in stations outside of Panama.

Passenger servicing totaled US$20.4 million, a decrease of 20.3% compared to the same period in 2019, driven by a simplified onboard product offering.

Airport facilities and handling charges totaled US$50.5 million, an increase of 11.3% compared to the same period in 2019, mostly related to higher airport costs mainly in the US, as well as outsourced airport services in stations outside of Panama.

Sales and distribution totaled US$61.4 million, an increase of 15.6% compared to the same period in 2019, due to an increase in ticket sales compared to 1Q19.

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Maintenance, materials, and repairs totaled US$40.3 million, an increase of 43.7% compared to 1Q19, mainly due to an increase in engine maintenance costs, changes in supplemental rent provisions related to aircraft utilization and new leased aircraft, as well as one-time maintenance costs.

 

Depreciation and amortization totaled US$72.7 million, mostly comprised of owned and leased flight equipment, maintenance events, and IT systems amortizations, an increase of 6.6% compared to 1Q19, mainly due to an increase in the amortization of aircraft maintenance events compared to the same period of 2019.

Flight operations mostly related to overflight fees, totaled US$27.4 million, an increase of 6.0% compared to the same period in 2019, mostly due to an increase in overflight rates in certain countries.

 

Other operating and administrative expenses totaled US$33.2 million, an increase of 13.4% compared to the same period in 2019, mainly related to engine rentals required to compensate for longer induction and turnaround times at third-party maintenance facilities.

 

Non-operating Income (Expense)

 

Consolidated non-operating income (expense) totaled (US$51.0) million.

 

Finance cost totaled (US$24.4) million, mostly comprised of US$11.3 million of convertible notes interest expenses, which included $7.4 million related to a non-cash interest expense due to the amortization of the debt principal and debt issuance costs associated with the convertible notes; US$8.6 million related to aircraft loan interest and commission expenses; and US$4.5 million related to our aircraft leases.

 

Finance income totaled US$8.8 million in proceeds from investments.

 

Gain (loss) on foreign currency fluctuations resulted in a gain of US$1.2 million, mainly driven by the appreciation of the Colombian peso and the Mexican peso during the quarter.

 

Net change in fair value of derivatives totaled a net (US$37.9) million unrealized mark-to-market loss related to the value of the Company’s convertible notes.

Other non-operating income (expense) totaled a net of US$1.2 million, which includes an unrealized mark-to-market gain of US$1.7 million related to changes in the value of financial investments.

 

5

 


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About Copa Holdings

Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information visit: www.copaair.com.

 

CONTACT: Copa Holdings S.A.

Investor Relations:

Ph: 011 507 304-2774

www.copaair.com (IR section)

 

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 several 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.

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Copa Holdings, S.A.

Income Statement - IFRS

(US$ Thousands)

 

 

 

Unaudited

 

 

Unaudited

 

 

%

 

Unaudited

 

 

%

 

 

 

1Q23

 

 

1Q19

 

 

Change

 

4Q22

 

 

Change

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Passenger revenue

 

 

834,018

 

 

 

648,790

 

 

 

28.5

%

 

852,291

 

 

 

-2.1

%

Cargo and mail revenue

 

 

23,252

 

 

 

15,316

 

 

 

51.8

%

 

27,095

 

 

 

-14.2

%

Other operating revenue

 

 

9,995

 

 

 

8,063

 

 

 

24.0

%

 

11,226

 

 

 

-11.0

%

Total Operating Revenue

 

 

867,264

 

 

 

672,169

 

 

 

29.0

%

 

890,612

 

 

 

-2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Fuel

 

 

265,498

 

 

 

170,163

 

 

 

56.0

%

 

273,901

 

 

 

-3.1

%

Wages, salaries, benefits and other employees' expenses

 

 

102,652

 

 

 

113,662

 

 

 

-9.7

%

 

105,019

 

 

 

-2.3

%

Passenger servicing

 

 

20,391

 

 

 

25,571

 

 

 

-20.3

%

 

19,518

 

 

 

4.5

%

Airport facilities and handling charges

 

 

50,479

 

 

 

45,362

 

 

 

11.3

%

 

49,734

 

 

 

1.5

%

Sales and distribution

 

 

61,406

 

 

 

53,133

 

 

 

15.6

%

 

61,498

 

 

 

-0.1

%

Maintenance, materials and repairs

 

 

40,296

 

 

 

28,047

 

 

 

43.7

%

 

28,875

 

 

 

39.6

%

Depreciation and amortization

 

 

72,677

 

 

 

68,187

 

 

 

6.6

%

 

70,251

 

 

 

3.5

%

Flight operations

 

 

27,424

 

 

 

25,875

 

 

 

6.0

%

 

25,667

 

 

 

6.8

%

Other operating and administrative expenses

 

 

33,228

 

 

 

29,297

 

 

 

13.4

%

 

36,492

 

 

 

-8.9

%

Total Operating Expense

 

 

674,053

 

 

 

559,296

 

 

 

20.5

%

 

670,954

 

 

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit/(Loss)

 

 

193,212

 

 

 

112,873

 

 

 

71.2

%

 

219,657

 

 

 

-12.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

Finance cost

 

 

(24,365

)

 

 

(14,010

)

 

 

73.9

%

 

(23,388

)

 

 

4.2

%

Finance income

 

 

8,842

 

 

 

5,954

 

 

 

48.5

%

 

7,413

 

 

 

19.3

%

Gain (loss) on foreign currency fluctuations

 

 

1,201

 

 

 

(5,960

)

 

 

-120.2

%

 

(2,560

)

 

 

-146.9

%

Net change in fair value of derivatives

 

 

(37,933

)

 

 

-

 

 

 

-100.0

%

 

(91,305

)

 

 

-58.5

%

Other non-operating income (expense)

 

 

1,235

 

 

 

(825

)

 

 

-249.7

%

 

1,221

 

 

 

1.1

%

Total Non-Operating Income/(Expense)

 

 

(51,020

)

 

 

(14,841

)

 

 

243.8

%

 

(108,619

)

 

 

-53.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before taxes

 

 

142,192

 

 

 

98,032

 

 

 

45.0

%

 

111,039

 

 

 

28.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(20,671

)

 

 

(8,600

)

 

 

140.4

%

 

(22,758

)

 

 

-9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit/(Loss)

 

 

121,521

 

 

 

89,431

 

 

 

35.9

%

 

88,280

 

 

 

37.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

3.07

 

 

 

2.11

 

 

 

45.9

%

 

2.23

 

 

 

37.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

39,565,223

 

 

 

42,477,761

 

 

 

-6.9

%

 

39,554,071

 

 

 

0.0

%

 

7

 


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Copa Holdings, S. A. and subsidiaries

Consolidated statement of financial position

(US$ Thousands)

 

 

March 2023

 

December 2022

 

ASSETS

(Unaudited)

 

(Audited)

 

Cash and cash equivalents

 

242,314

 

 

122,424

 

Short-term investments

 

773,493

 

 

812,323

 

Total cash, cash equivalents and short-term investments

 

1,015,807

 

 

934,747

 

 

 

 

 

 

Accounts receivable, net

 

165,111

 

 

135,415

 

Accounts receivable from related parties

 

1,833

 

 

2,168

 

Expendable parts and supplies, net

 

101,680

 

 

93,332

 

Prepaid expenses

 

49,917

 

 

52,322

 

Prepaid income tax

 

370

 

 

798

 

Other current assets

 

23,665

 

 

17,043

 

 

 

342,576

 

 

301,078

 

TOTAL CURRENT ASSETS

 

1,358,383

 

 

1,235,825

 

 

 

 

 

 

Long-term investments

 

166,481

 

 

202,056

 

Long-term prepaid expenses

 

6,494

 

 

7,770

 

Property and equipment, net

 

2,967,611

 

 

2,883,524

 

Right of use assets

 

238,269

 

 

234,380

 

Intangible, net

 

80,765

 

 

78,555

 

Net defined benefit assets

 

1,048

 

 

504

 

Deferred tax assets

 

31,636

 

 

30,743

 

Other Non-Current Assets

 

16,277

 

 

17,005

 

TOTAL NON-CURRENT ASSETS

 

3,508,581

 

 

3,454,537

 

 

 

 

 

 

TOTAL ASSETS

 

4,866,964

 

 

4,690,362

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Loans and borrowings

 

144,203

 

 

142,484

 

Current portion of lease liability

 

77,412

 

 

80,084

 

Accounts payable

 

163,236

 

 

166,660

 

Accounts payable to related parties

 

1,944

 

 

1,004

 

Air traffic liability

 

611,437

 

 

651,805

 

Frequent flyer deferred revenue

 

114,976

 

 

111,526

 

Taxes Payable

 

67,122

 

 

43,878

 

Employee benefits obligations

 

31,534

 

 

44,913

 

Income tax payable

 

12,414

 

 

6,276

 

Other Current Liabilities

 

1,366

 

 

1,175

 

TOTAL CURRENT LIABILITIES

 

1,225,644

 

 

1,249,805

 

 

 

 

 

 

Loans and borrowings long-term

 

1,327,441

 

 

1,301,819

 

Lease Liability

 

162,029

 

 

158,289

 

Derivative financial instruments

 

289,083

 

 

251,150

 

Deferred tax Liabilities

 

25,783

 

 

16,571

 

Other long - term liabilities

 

232,941

 

 

220,618

 

TOTAL NON-CURRENT LIABILITIES

 

2,037,277

 

 

1,948,447

 

 

 

 

 

 

TOTAL LIABILITIES

 

3,262,921

 

 

3,198,252

 

 

 

 

 

 

EQUITY

 

 

 

 

Class A - 34,064,142 issued and 28,388,261 outstanding

 

21,362

 

 

21,327

 

Class B - 10,938,125

 

7,466

 

 

7,466

 

Additional Paid-In Capital

 

104,606

 

 

103,465

 

Treasury Stock

 

(357,087

)

 

(344,541

)

Retained Earnings

 

1,717,620

 

 

1,367,784

 

Net profit

 

121,521

 

 

348,054

 

Other comprehensive loss

 

(11,445

)

 

(11,445

)

 

 

 

 

 

TOTAL EQUITY

 

1,604,043

 

 

1,492,110

 

TOTAL EQUITY LIABILITIES

 

4,866,964

 

 

4,690,362

 

 

8

 


https://cdn.kscope.io/9d060c17b46c67129c89944eb02d2cd8-img116662097_0.jpg 

Copa Holdings, S. A. and subsidiaries

Consolidated Statement of Cash Flows

For the three months ended March 31,

(In US$ thousands)

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Cash flow from (used in) operating activities

 

 

203,419

 

 

 

169,336

 

 

 

(892

)

Cash flow used in investing activities

 

 

(62,868

)

 

 

(120,515

)

 

 

(86,697

)

Cash flow (used in) from financing activities

 

 

(20,661

)

 

 

(10,888

)

 

 

162,325

 

Net increase in cash and cash equivalents

 

 

119,890

 

 

 

37,933

 

 

 

74,736

 

Cash and cash equivalents at January 1

 

 

122,424

 

 

 

211,081

 

 

 

119,065

 

Cash and cash equivalents at March 31

 

$

242,314

 

 

$

249,014

 

 

$

193,801

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

 

773,493

 

 

 

771,074

 

 

 

898,453

 

Long-term investments

 

 

166,481

 

 

 

204,810

 

 

 

111,001

 

Total cash and cash equivalents and investments at March 31

 

$

1,182,288

 

 

$

1,224,898

 

 

$

1,203,255

 

9

 


https://cdn.kscope.io/9d060c17b46c67129c89944eb02d2cd8-img116662097_0.jpg 

Copa Holdings, S.A.

NON-IFRS FINANCIAL MEASURE RECONCILIATION

 

This press release includes the following non-IFRS financial measures: Adjusted Net Profit, Adjusted Basic EPS, and Operating CASM Excluding Fuel. This supplemental information is presented 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. These measures should not be considered in isolation and should be considered together with comparable IFRS measures, in particular operating profit, and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:

 

Reconciliation of Adjusted Net Profit

 

1Q23

 

 

1Q22

 

 

4Q22

 

 

1Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit as Reported

 

$

121,521

 

 

$

19,759

 

 

$

88,280

 

 

$

89,431

 

   Add: Net change in fair value of derivatives

 

$

37,933

 

 

$

6,752

 

 

$

91,305

 

 

 

 

   Add: Net change in fair value of financial investments

 

$

(1,655

)

 

$

2,979

 

 

$

(1,924

)

 

 

 

Adjusted Net Profit

 

$

157,798

 

 

$

29,490

 

$

177,661

 

 

$

89,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted Basic EPS

 

1Q23

 

 

1Q22

 

 

4Q22

 

 

1Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Profit

 

$

157,798

 

 

$

29,490

 

 

$

177,661

 

 

$

89,431

 

Shares used for calculation of Basic EPS

 

 

39,565

 

 

 

42,006

 

 

 

39,554

 

 

 

42,478

 

Adjusted Basic Earnings per share (Adjusted Basic EPS)

 

$

3.99

 

 

$

0.70

 

 

$

4.49

 

 

$

2.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Operating Costs per ASM

 

 

 

 

 

 

 

 

 

 

 

 

Excluding Fuel (CASM Excl. Fuel)

 

1Q23

 

 

1Q22

 

 

4Q22

 

 

1Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Costs per ASM as Reported (in US$ Cents)

 

 

10.2

 

 

 

9.4

 

 

 

10.3

 

 

 

8.7

 

Aircraft Fuel Cost per ASM (in US$ Cents)

 

 

4.0

 

 

 

3.4

 

 

 

4.2

 

 

 

2.7

 

Operating Costs per ASM excluding fuel (in US$ Cents)

 

 

6.2

 

 

 

6.0

 

 

6.1

 

 

 

6.1

 

10