CPA Q2 2022 Earnings

Call Details

• Call Title: Copa Airlines Q2 2022 Earnings Call
• Date: August 4, 2022 at 3:00 PM UTC
• Management Team:
  • Pedro Heilbron (Chief Executive Officer)
  • Jose Montero (Chief Financial Officer)
  • Daniel Tapia (Director of Investor Relations)

Call Summary

Financial Performance

• Adjusted net profit (non-IFRS) for Q2 2022 was $13.2M, or $0.32 per share.
• Reported operating profit for Q2 2022 was $42.3M, delivering an operating margin of 6.1%.
• Second quarter special items totaled $111M, driven by a $113.7M unrealized gain on convertible notes partially offset by a $2.7M unrealized loss on financial investments.
• Unit revenues (RASM) were 11.6 cents, which is up 11.3% compared to Q2 2019.
• Passenger yields were 13.0 cents, which is up 10.1% versus Q2 2019.
• Total cargo revenue was up 62% versus Q2 2019, supported by the company's retrofitted freighter operations.

Guidance

• Q3 2022 capacity is expected to be approximately 100% of Q3 2019 levels, or about 6.4 billion ASMs.
• Q3 2022 operating margin is expected to be in the range of 16% to 18%.
• Q3 2022 planning assumptions include a load factor of approximately 86%, unit revenues of approximately 12.7 cents, CASM ex-fuel of approximately 6 cents, and an all-in fuel price of $3.80 per gallon.
• Full-year 2022 reiterated expectations are approximately 98% of 2019 ASMs and a CASM ex-fuel of approximately 5.9 cents.
• No ASM growth guidance was provided for 2023 during the call, and the company explicitly stated it has not guided 2023 ASM growth.