Panama-based Copa Holdings, parent of Copa Airlines, posted a $120 million profit in the second quarter as the company committed to cost savings and as passenger demand remained high.
Revenue rose 1.3% year on year to $819 million, from $809 million in the same period last year, Copa said on 7 August.
“These solid results are driven by the company’s continued focus on maintaining low ex-fuel unit costs and a healthy air travel demand environment in the region during the quarter,” the company adds. The results “are the product of a solid and well-executed business model, which is built on operating the best and most-convenient network for intra-Latin America travel”.
“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.”
Copa’s capacity, measured in available seat miles, increased 9.7% year on year during the period. As a result, the load factor for the quarter increased by 0.7 percentage points to 86.8%, compared to 2Q23.
Expenses rose 7.4% year on year, to $660 million, driven by the higher capacity and resulting higher fuel costs, but offset by lower maintenance, sales and distribution costs.
The airline said that on 29 July the government of Venezuela temporarily suspended commercial flights between Venezuela and Panama, effective 31 July, ”forcing the company to suspend its flights between the two countries”. The suspension is scheduled to last until 31 August. It remains unclear what effect that will have on Copa’s full-year 2024 results.
In July, Copa received its first Boeing 737 Max 8, increasing its total all-737 fleet to 110 aircraft. Earlier this year, the company said it expects to receive eight Max 8s and three Max 9s in 2024.
The airline will hold an investor call later in the day to discuss its second-quarter earnings.
