||COPA AIRLINES COLOMBIA
||+57 1 320 9191
||+57 1 414 7949
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ESTABLISHED IN 1992 AND STARTED OPERATIONS IN 1993. FORMERLY CALLED "AERO REPUBLICA." DOMESTIC AND REGIONAL, SCHEDULED AND CHARTER, PASSENGERS AND CARGO, JET AIRPLANE SERVICES.
CENTRO INTERNACIONAL, CARRERA 10,
NO 27-51, LOCAL 165
COLOMBIA (REPUBLIC OF COLOMBIA) COVERS AN AREA OF 1,138,914 SQ KM, ITS POPULATION IS 43 MILLION, ITS CAPITAL CITY IS BOGOTA, AND ITS OFFICIAL LANGUAGE IS SPANISH.
April 1992: Alfonso Avila left the helm at (SAM), Avianca (AVI)'s local subsidiary, scratched out an agreement on a hotel napkin with the head of a New York-based airplane lessor, and formed AeroRepublica (REU).
MARCH 1995: TO ARUBA, BARRANQUILLA, CALI, CARTAGENA, LA HABANA, LETICIA, MEDELLIN, MONTERIA, SAN ANDRES, AND SANTA MARTA.
MAIN BASE/HUBS: CALI, BOGOTA.
174 EMPLOYEES (INCLUDING 147 FLIGHT CREW (FC) & 39 MAINTENANCE TECHNICIANS (MT)).
1 DC-9-30 (JT8D-9A), EX-ALITALIA (ALI).
OCTOBER 1995: INCDT: AEROREPUBLICA (REU) DC-9-30 EMERGENCY LANDING AT BOGOTA AFTER TIRE EXPLODED.
OCTOBER 1996: NOW HAS 15% DOMESTIC MARKET SHARE. PROJECTS 1996 = +$4.5 MILLION (-$1.6 MILLION).
NEGOTIATING FOR +2 DC-9'S.
DECEMBER 1996: APPROVAL FOR ROUTE TO CUCUTA, ONE OF THE MOST PROFITABLE DOMESTIC ROUTES.
FEBRUARY 1997: SPANISH CONSULTANT TEAM ADVISING AEROREPUBLICA (REU).
LUIS DANS, EXECUTIVE VP (SPANIARD).
April 1997: AeroRepublica (REU) now has 17% of domestic traffic. During the first quarter of 1997 when traffic fell, (REU) was the only Colombian airline to carry more passengers.
Alfonso Avila, (REU)'s President & (CEO), credits two factors for this growth - - a focus on trunk routes and service innovations. 'We are Colombia's first new airline in a quarter of a century,' Avila says, 'and we wanted to offer a different approach.' That includes hot meals and tourist promotions. Avila says his initial strategy targeted the tourist market 'because it is more price sensitive.' (REU) now hopes to change that by offering more frequencies and write-in-your-destination coupon tickets for business travelers.
While rivals have copied some of these innovations, (REU) enjoys the cost advantage of operating without trade unions. It matches the fares of larger rivals, except on popular routes like Bogotá - Medellin, where it may discount a few dollars on a capacity-controlled basis.
MAY 1997: 186 EMPLOYEES (INCLUDING 147 FLIGHT CREW (FC) & 39 MAINTENANCE TECHNICIANS (MT)).
JUNE 1997: REGULATORY AUTHORITY GROUNDED FLEET FOR LACK OF PAPERWORK COVERING (FAA) AIRWORTHINESS DIRECTIVE (AD) COMPLIANCE. LATER OK'D 3 DC-9'S TO FLY.
AUGUST 1997: ALVARO PEDROCHE, DIRECTOR MAINTENANCE, REPLACES JORGE PARRA. CARLOS BURGOS, TECHNICAL MANAGER. CARLOS MUNOZ, MANAGER QUALITY CONTROL.
APRIL 1998: 186 EMPLOYEES (INCLUDING 147 FLIGHT CREW (FC) & 39 MAINTENANCE TECHNICIANS (MT)).
APPLIED TO THE USA DEPARTMENT OF TRANSPORTATION (DOT) FOR A ROUTE TO ORLANDO. POSSIBLE CODE SHARE WITH DELTA AIRLINES (DAL).
JUNE 1998: 1 DC-9-32 (47524), TRITON (TIA) LEASED, EX-CONTINENTAL AIRLINES (CAL).
JULY 1998: 5TH ANNIVERSARY!
NOW 3RD HIGHEST AIRLINE IN TRAFFIC (RPK)'S IN COLOMBIA, AFTER AVIANCA (AVI) & ACES (ACE), & AHEAD OF (SAM).
JANUARY 1999: FOR 4TH YEAR, THE (FAA) RATES COLOMBIA CATEGORY 2.
APRIL 1999: 186 EMPLOYEES (INCLUDING 39 MAINTENANCE TECHNICIANS (MT)).
SEPTEMBER 1999: 1ST 6 MONTHS = +31.7% PASSENGERS (PAX).
NOVEMBER 1999: (FAA) SAFETY OVERSIGHT RECLASSIFIES COLOMBIA AS CATEGORY 1 (OK FOR FLIGHTS TO USA).
DECEMBER 1999: ANNOUNCES $1.2 BILLION FLEET UPGRADE, AND WILL ADD MD-80'S OVER NEXT 2 YEARS.
CARLOS MUNOZ, TECHNICAL MANAGER, REPLACES LUIS CANTOR. LUIS EDUARDO ALBARRACIN, DIRECTOR QUALITY CONTROL.
JANUARY 2000: 2 NEW ROUTES: CALI - CATAGENA; & CARTAGENA - SAN ANDRES.
APRIL 2000: 186 EMPLOYEES.
MAY 2000: REGULATORY AUTHORITY (CAA) OK'S CHARTER OPERATIONS TO ORLANDO, STARTING NOVEMBER 2000.
JULY 2000: 1999 = 411 MILLION (RPK) (PASSENGER TRAFFIC); 67.6% LF (LOAD FACTOR); 2,32 MILLION (FTK) (FREIGHT TRAFFIC); 749,000 PASSENGERS (PAX); 186 EMPLOYEES.
FEBRUARY 2001: OBJECTS TO PROPOSED AVIANCA (AVI)/ACES (ACE) MERGER, SAYING THAT ACQUISITION OF 70% OF DOMESTIC MARKET WILL GIVE THEM A MONOPOLY.
COUNTY OF CUNDINAMARCA, WHERE BOGOTA INTERNATIONAL AIRPORT IS LOCATED, ISSUED RULING AGAINST NOISE, GENERATED BY STAGE 1 & 2 AIRPLANES. ALL AIRLINES WHO OPERATE AGING 707'S, 727'S, & DC-9'S, WILL BE OUT OF OPERATION.
JORGE PARRA, DIRECTOR ENGINEERING, REPLACES GUILLERMO LANCHEROS, NOW TECHNICAL MANAGER.
AUGUST 2001: NOW HAS 20.4% OF DOMESTIC MARKET.
1 DC-9-31 (JT8D-7) (603-47526, /70 69 61 N934ML), SPIRIT AIRLINES (SPR) LEASED. 2 ORDERS MD-81'S (48008; 48009), EX-SCANDINAVIAN AIRLINES (SAS).
OCTOBER 2001: 1ST MD-81 (48008), LLC LEASED.
NOVEMBER 2001: 2ND MD-81 (48009), LLC LEASED.
APRIL 2002: OWNERS: PROMOTORA DE INVERSIONES SUPERIOR.
MAY 2002: WITH MERGER OF AVIANCA (AVI), ACES (ACE), AND (SAM) INTO THE "SUMMA ALLIANCE," AEROREPUBLICA (REU) IS NOW NUMBER 2 IN COLOMBIAN MARKET SHARE, WITH SUMMA 77% AND (REU) 20%. WILL ADD +3 MD-81'S, 157 PAX, TO FLEET, TO OFFER MORE FREQUENCIES, AND OPERATE SCHEDULED CHARTERS, AS WELL AS REGIONAL ALLIANCE, WITH AEROPOSTAL (LAV).
June 2002: 4TH MD-81 (48005, HK-4259X) DELIVERY.
July 2002: 2001 = 894 million (RPK) traffic; 66.1% LF; 1.13 million passengers (PAX); 3.6 million (FTK) freight traffic; 750 employees.
August 2002: Technical Division is using myboeingfleet.com.
3 MD-81's (48002; 48004; 48005), ex-(SAS), Finova (GRB) leased.
November 2002: 1 MD-83 (49937), GECAS (GEF) leased.
December 2002: DC-9-31 (47401, HK-3906X), returned to De Havilland Investments.
December 2003: Marketing agreement including code-sharing with AeroPostal (LAV).
January 2004: MD-83 (1788-49940, VP-BGI), Debis AirFinance (DEA) leased.
May 2004: Code share with Aeropostal (LAV), Bogota - Caracas.
July 2004: 750 employees.
2003 = 1.69B RPK (+16.9%); 53.9% LF; 1.59 Million PAX (+2.1%); 13.85 Million FTK (+50.3%).
December 2004: (Telephone: +57 1 342 77 66). (FAX: +57 1 413 88 82).
March 2005: Copa Airlines (COP) and AeroRepublica (REU) formed a strategic alliance that includes (COP)'s acquisition of a majority stake in (REU), including technical and commercial collaborative agreements. (REU) will continue to operate independently and will maintain its corporate identity and current workforce. (REU) currently flies 9 airplanes to 11 destinations in Colombia. In 2004, carried >2M passengers.
June 2005: MD-82 (53231), ex-Alitalia (ALI), Boeing Capital (TBC) leased.
December 2005: Roberto Junguito Pombo, President, ex-Planning Director, Avianca (AVI), replaced Alfonso Avila, who founded the airline 12 years ago.
March 2006: Copa Holdings, parent of Panama's Copa Airlines (COP) and Colombia's AeroRepublica (REU), concluded "an excellent year" with yesterday's announcement of a record profit of +$82.7 million for 2005, an increase of +20.6% over a 2004 profit of +$68.6 million, and fourth fiscal quarter net earnings of +$17.4 million, a +46.3% improvement over the +$11.9 million earned in the year-ago period. Copa (COP) credited high demand, improved economic conditions in Latin America and the popularity of its "Hub of the Americas" at Tocumen International Airport for its performance.
Annual revenues surged +52.2% to $608.6 million as expenses increased +58.5% to $503.1 million owing to a +138.7% rise in fuel costs to $149.3 million. Operating income grew +28.1% to $105.5 million.
Fourth-quarter turnover lifted +68.4% to $179.6 million, while expenses increased +70.4% to $156.5 million. Operating profit still rose +56% to +$23.2 million. Passenger traffic more than doubled in the quarter as Copa (COP) carried 1.4 million passengers compared to 616,000 in the year-ago quarter. Passenger traffic (RPM)s increased +64.1% to 1.09 billion against a +62.7% rise in capacity to 1.55 billion (ASM)s. Load factor climbed +0.6 point to 70.2% LF. Yield increased +5.8% to 15.3 cents and (RASM) rose +3.5% to 11.59 cents. Unit costs went up 4.7% to 10.1 cents but dropped 11.7% to 6.77 cents excluding fuel.
The company said it expects to "continue to focus on maintaining a competitive low cost structure, strengthening our hub by growing our network and increasing flight frequencies" in 2006. Copa Airlines (COP) expects to add six airplanes - - two 737NGs and four Embraer E190ARs - - this year, bringing its total fleet to 30. The company expects lower load factors at AeroRepublica (REU). Copa Holdings projects a consolidated annual (RASM) of 11.1 cents, (CASM) excluding fuel of 6.4 cents, and an operating margin of 14.5% - 16%.
Expansion will include five new routes. Copa Airlines (COP) will fly from Panama City to Port of Spain daily from July 7, Manaus daily from July 15, Santiago de los Caballeros daily from July 15, Montevideo 5x-weekly from August 15, increasing to daily in December and San Pedro Sula daily from November 13.
AeroRepublica (REU), the Colombian subsidiary of Copa (COP) Holdings, announced a firm order for five (GE) (CF34)-powered Embraer E190s worth a combined $175 million at list prices. The order includes 20 options. Deliveries are scheduled to begin in November. The airplanes will seat 108 in a single-class configuration.
"The Embraer E190 offers us the opportunity to balance capacity and demand, which we need as part of our operational and expansion plan," AeroRepublica (REU) President Roberto Junguito said. The airline said the new airplanes will serve its domestic routes "more efficiently" while playing a part in the development of international services.
May 2006: Copa Holdings, parent of Panama's Copa Airlines (COP) and Colombia's AeroRepublica (REU), reported first-quarter net income of +$32.2 million, a +42.9% increase over the +$22.6 million earned in the year-ago quarter and a record quarterly result for the company. "We continue to execute both operationally and financially," CEO, Pedro Heilbron told analysts in a conference call.
Copa (COP) noted that its April 2005 acquisition of AeroRepublica (REU) means year-over-year results are not directly comparable. Still, they demonstrated the rapid growth of a carrier planning to boost its fleet by six airplanes (including two 737NGs) to 30 by year end.
Operating revenues jumped +68.7% to $191.7 million and operating income rose +60.6% to +$41.7 million. Yield climbed +9.3% to 15.6 cents. Traffic grew +56.9% to 1.16 billion (RPM)s on a +58.6% lift in capacity, resulting in a load factor dip of -0.8 point to 71.5% LF and a +6.4% hike in (RASM) to 11.9 cents.
Heilbron said Copa Airlines (COP) will have "greater market penetration" and "increased revenues" for the remainder of 2006 and will continue its aggressive fleet expansion. It has firm orders for 21 airplanes (eight 737NGs and 13 Embraer E190s) and options to purchase an additional nine 737NGs and 15 E190s.
He added that the company is working to enhance the performance of AeroRepublica (REU), which he conceded "did not have the strongest reputation for consistency" when acquired last year and operates airplanes - - five MD-81s, four MD-83s and three DC-9-30s - - that are "too large for the high-frequency domestic market in Colombia." A fleet renewal plan that will see the carrier take delivery of the first two of five E190s on firm order in the fourth quarter will right-size the fleet, Heilbron said. It has purchase options for 20 additional E190s.
Copa Airlines (COP) flew 315.6 million (RPM)s in April, a +38.3% increase over the year-ago month. Capacity climbed +23.5% to 406.9 million (ASM)s and load factor rose +8.3 points to 77.6% LF.
Copa Holdings, parent of Copa Airlines (COP) and AeroRepublica (REU), filed a registration statement yesterday with the USA Securities and Exchange Commission for the sale of 6.6 million nonvoting shares held by Continental Airlines (CAL), which would hold a 12.3% stake in Copa (COP) following the sale or 10% if the over-allotment is exercised. Copa (COP) said it will not receive any of the proceeds.
July 2006: AeroRepublica Airlines (REU) will launch daily, Bogota - Panama City flight on August 3 using an MD-81.
August 2006: Copa Holdings, parent of Panama's Copa Airlines (COP) and Colombia's AeroRepublica (REU), reported second-quarter net income of +$22.9 million, up +51.3% over +$15.1 million earned in the year-ago quarter, on a +39.4% jump in revenues to $191.5 million attributable in large part to Copa (COP)'s acquisition of AeroRepublica (REU) last year, that also contributed to hefty increases in traffic and capacity. The results continue a string of positive quarters for the company, which produced rising profits in both 2004 and 2005 and record quarterly income in the first quarter. They are all the more impressive considering that AeroRepublica (REU) lost -$7.1 million in the most recent quarter.
"Our Copa (COP) segment continues to strengthen," (CEO), Pedro Heilbron said. He added that AeroRepublica (REU)'s results, hurt by high fuel prices and "excessive capacity," will improve with seven Embraer E190s set to be delivered over the remainder of 2006 and 2007. "We believe [the second quarter] was the low point," he said. "We expect a much stronger second half."
The Colombian carrier soon will unveil a "new image" to better reflect its connection to Copa (COP), he noted. In addition, daily Bogota - Panama City flights launched August 3 will create new opportunities to link the two networks.
Operating income for the quarter rose +40.3% to +$28.5 million as yield increased +9% to 15.8 cents, the fifth consecutive quarter of yield growth, and (RASM) lifted +8.1% to 11.7 cents. "We expect yields to remain healthy and steady," Heilbron said. Load factor improved +0.5 point to 69.7% LF as (RPM)s jumped +29.9% to 1.14 billion and capacity grew +29% to 1.63 billion (ASM)s. (CASM) rose +8% to 10 cents but (CASM) excluding fuel, was unchanged at 6.7 cents.
Copa (COP)'s network continues to grow, with Manaus, Santiago de los Caballeros, Maracaibo, San Pedro Sula and Montevideo added in the past five weeks to bring to 35 the number of destinations served. It said yesterday that it will launch 5x-weekly Panama City - Rio de Janeiro flights aboard 737NGs from November 15.
"We continue to be well positioned for another year of strong results," (CFO), Victor Vial said. He raised full-year (RASM) guidance from 11.4 to 11.8 cents.
AeroRepublica (REU) signed a lease agreement with GECAS (GEF) for two Embraer E190s for delivery next year. (REU) now has commitments for seven of the type, plus options and purchase rights for an additional 20 through 2011.
September 2006: AeroRepublica (REU) of Colombia is adopting the logo and livery of Copa Airlines (COP). Both carriers are subsidiaries of Copa Holdings. "Our new image combines the best of both companies," said AeroRepublica (REU) (CEO), Robert Junguito. It is Colombia's second-largest domestic airline, offering service to 12 cities plus Copa (COP)'s Panama City hub.
October 2006: AeroRepublica (REU) is Colombia's 3rd largest domestic carrier, holding a 16.1% market share. Also serves other Latin American countries on a charter basis.
(IATA) Code: P5 - 845. (ICAO) Code: RPB (Callsign - AEROREPUBLICA).
Parent organization/shareholders: Aeropostal - Alas de Venezuela (LAV) (33%); COPA Airlines (COP); & Promotora de Inversiones Superior.
Main Base: Bogota Eldorado International airport (BOG).
Hub: Medellin Jose Maria Cordova International airport (MDE).
Domestic, scheduled destinations: Barranquilla; Bogota; Bucaramanga; Cali; Cartagena; Cucuta; Leticia; Medellin; Monteria; Pereira; San Andres Island; & Santa Marta.
International, scheduled destinations: Panama City.
AeroRepublica (REU) signed a lease agreement with (GECAS) (GEF) for an Embraer E190 to be delivered in the fourth quarter of 2007. The Colombian carrier will take eight E190s through 2007, three from (GECAS) (GEF) and five from the manufacturer.
November 2006: Copa Holdings (COPA) announced that it has arranged a loan of US$240 million from the (DVB) Bank, Natexis Transport Finance and NORD/LB to provide financing for the purchase of 10 new Embraer E190's, due for delivery in 2006 and 2007. The company stated that the junior tranche is to be financed by Natexis Transport Finance and NORD/LB and the three mandated lead arrangers would finance the senior tranche. The loan would finance airplanes scheduled to be delivered both to Copa Airlines (COP) and AeroRepublica (REU).
The airlines of Latin America and the Caribbean region are enjoying strong traffic demand and face a bright future, Merrill Lynch airline analyst, Michael Linenberg told attendees at the third annual Latin American Airlines Leaders Forum sponsored by Asociacion Latinoamericana de Transporte Aereo (ALTA) in Cancun.
"The [stock] market has recognized opportunities in Latin America," Linenberg said, pointing to the successful Initial Public Offerings (IPO)s of Copa Airlines (COP), Gol (GOT), (LAN) Airlines and (TAM) (TPR) over the past decade and the strong stock performance. He noted that Latin American traffic growth, at +6.9% per year, "is second only to China," while +4% (GDP) growth for the region is slightly ahead of the world average.
He compared the situation to the one USA airlines enjoyed in the 1960s, a period he described as "the golden era" of the USA airline industry, with strong growth matched by strong profitability. Airline equities "were the tech stocks" of the period, he said.
Also at the conference, (ALTA) Chairman & Copa Airlines (CEO), Pedro Heilbron noted that while the Latin America/Caribbean region generates just 4.9% of world airline passengers, its population is 9.2% of the world total, suggesting ample room for additional growth. Traffic growth has exceeded +12% in each of the past two years, and although it was down nearly -1% through the first nine months of 2006, this was owing to Varig (VAR)'s downsizing. Excluding Varig (VAR), growth would be around +9%. Domestic traffic represents 67% of the total, with intra-region traffic accounting for 16%.
Among the challenges facing the region's airlines is improving safety, which (ALTA) is addressing by mandating that members pass an (IATA) Operational Safety Audit. Fuel costs also are an issue. Carriers pay an average of +15% more for their fuel than those in North America and Europe, Heilbron said. Airport and air navigation charges also are a concern.
Nevertheless, air transport in the region "is a growing industry at a rate above other parts of the world," he concluded. (ALTA) has more than doubled its membership since 2003, growing from 15 airlines to 33, Executive Director Alex, de Gunten said.
December 2006: AeroRepublica (REU) took delivery of its first 106-seat, GE (CF34)-powered Embraer E190 (00061, HK-4454X) on December 22. It has firm orders for an additional seven and 20 options.
January 2007: E190-100AR (00063, HK-4453-X), delivery.
February 2007: Starting February 15th, Panama City - Cali, daily using E190s.
March 2007: Copa Holdings, parent of Copa Airlines (COP) and AeroRepublica (REU), said it posted record net income of +$134.2 million in 2006, up +61.7% from $83 million the prior year, on a +39.9% jump in revenue to $851.2 million. "We continue to see solid economic growth in the region and we continue to see solid passenger growth," (CFO), Victor Vial said. Fourth-quarter net income was +$41.8 million, more than double the +$17.7 million earned in the year-ago quarter. Full-year operating income jumped +51.8% to +$166.9 million from +$109.2 million in 2005. Traffic increased +31.2% to 5.02 billion (RPM)s on a +28.1% lift in capacity to 6.87 billion (ASM)s, raising load factor +1.7 points to 73.1% LF. Yield was ahead +8% to 16 cents as (RASM) climbed +9.2% to 12.4 cents and (CASM) lifted +6.9% to 10 cents. (CASM), excluding fuel, was 6.8 cents, up +4%.
Copa (COP), which is on track to become an associate member of SkyTeam (STM) later this year, said it will continue to be "aggressive" in adding capacity. It projects 2007 capacity in the range of 8.2 billion (ASM)s, which would be a +19.2% increase. (RASM) is projected to be in the range of 12.6 cents and load factor for the year is projected at 74% LF.
1 E190 (00076, HK-4455-X), delivery.
May 2007: Copa Holdings, parent of Panama's Copa Airlines (COP) and Colombia's Aero Republica (REU), reported a first-quarter net profit of +$48.6 million, up +50.5% over the +$32.3 million posted in the year-ago period, on a +26.6% jump in revenue to $242.7 million. The record earnings were driven by the rapid growth of Copa Airlines (COP), which continues to add capacity aggressively and expand a route network that will total 42 destinations by year end. (CEO), Pedro Heilbron pointed to Copa (COP)'s "strength of network," saying, "We have an increasing number of unique destinations where we're by far the best option to connect to the rest of Latin America." In the second half of 2007, it will add Cordoba, Guadalajara, Port of Spain, Punta Cana and Washington Dulles.
First-quarter operating income rose +45.6% to $60.8 million. Consolidated traffic surged +23.5% to 1.43 billion (RPM)s on a +15.8% increase in capacity to 1.87 billion (ASM)s, lifting load factor +4.8 points to 76.4% LF. (CFO), Victor Vial said Copa Airlines (COP)'s capacity will increase +23% to +24% for the full year. Regarding future fleet growth, it has firm orders for 10 737NGs and nine E190s. It currently operates 30 737-700s, four 737-800s and six E190s. Aero Republica (REU), which took delivery of three E190s in the first three months of the year, has an additional four on firm order.
First-quarter consolidated yield was ahead +3.3% to 16.1 cents as (RASM) lifted +16.3% to 13 cents and (CASM) rose +4.8% to 9.7 cents. (CASM), excluding fuel, was up +5.8% to 6.7 cents. "Demand has been steady," Vial said. "We're maintaining strong yields and see in the future a strong yield environment."
July 2007: INCDT: Embraer E190 (00076, /07 HK-4455), sustained substantial damage on July 17th, when it ran off the side of a runway on landing at Santa Marta's Simon Bolivar Airport. At the time of the incident, the airplane was operating a scheduled flight (7330) from Cali with 5 crew (FC)/(CA) and 54 passengers on board. After leaving the runway, the airplane went down an embankment and came to rest with its nose submerged in water. - - SEE ATTACHED PHOTO - - "REU-2007-07 INCDT."
August 2007: Copa Holdings, parent of Panama's Copa Airlines (COP) and Colombia's AeroRepublica (REU), reported second-quarter net income of +$30.9 million, up +34.9% over +$22.9 million earned in the year-ago quarter, but said its rapid expansion will be slowed slightly. Revenue grew +22.9% to $235.3 million, while operating income rose +36.8% to +$39 million from +$28.5 million last year. (CEO), Pedro Heilbron, while expressing satisfaction with the results, warned that the carrier's fast growth and rising profits will be challenged by high fuel prices, costs associated with entering new long-haul markets, a more competitive pricing environment in Central America owing to fare reductions by TACA (TAC) and "global demand for pilots (FC)."
Heilbron said Copa Airlines (COP)'s capacity growth will be +21% for full-year 2007, down from a previously planned +25%. "The biggest problem we've had has been the time it takes to recruit and train new pilots (FC) we need in the pipeline," he explained. "That's why we're scaling back some of our growth, to give us more time to have the complete group of pilots (FC) ready." Copa (COP) plans to take delivery of three E190s and one 737-800 during the rest of 2007, bringing its fleet to 37 airplanes.
Consolidated second-quarter traffic rose +18.3% to 1.35 billion (RPM)s on a +15.3% lift in capacity to 1.88 billion (ASM)s, producing a load factor of 71.6% LF, up +1.8 points. Yield was ahead +4.1% to 16.4 cents, as (RASM) increased +6.6% to 12.5 cents, while (CASM) climbed +4.5% to 10.4 cents. (CASM) excluding fuel, was 7.3 cents, up +8%.
September 2007: Copa Airlines (COP)'s traffic increased +20.5% in August to 441.2 million (RPM)s, on a +21.1% rise in capacity to 565.6 million (ASM)s, producing a load factor of 78% LF, down -0.4 point. Sister carrier, AeroRepublica (REU)'s traffic decreased -2.8% for the month to 88.4 million (RPM)s on a +3.1% lift in capacity to 149.5 million (ASM)s, producing a load factor of 59.2% LF, down -3.6 points.
2 E190-100 IGWs (0110, HK04506-V; 0114, HK-4507-X), deliveries.
October 2007: E190 (0122, HK-4507X), delivery.
November 2007: Copa Airlines (COP) and AeroRepublica (REU) parent, Copa (COP) Holdings, reported net earnings of +$46.8 million in the third quarter, a +25.7% increase over the +$37.2 million posted in the year-ago period. The result was boosted, however, by a +$8 million pre-tax gain, related to insurance proceeds stemming from the July runway overrun, that destroyed an AeroRepublica (REU) E190 in Santa Marta. Company revenue during the quarter, climbed +14.7% year-over-year to $264.6 million, but operating income rose just +3.3% to +$46.7 million from +$45.2 million in the third quarter of 2006.
Copa (COP)'s operational performance slipped during the period. It flew 1.57 billion (RPK)s passenger traffic, up +16.3% year-over-year, against a +18% increase in capacity to 2.1 billion (ASK)s, that dropped load factor -1.1 points to 74.4% LF. Yield fell -1.6% to 15.9 cents, unit revenue was down -2.7% to 12.6 cents, and (CASM) lowered just -0.4% to 10.4 cents. (CASM), excluding fuel, declined -0.2% to 7 cents.
The company added six airplanes during the quarter - - one 737-800 and three E190s at Copa Airlines (COP), and AeroRepublica (REU)'s fourth and fifth E190s.
Nine-month net profit of +$126.3 million represented a +36.7% rise over the +$92.4 million earned in the year-ago period, while operating income climbed +26.9% to +$146.5 million.
December 2007: (CHAMP) Cargosystems announced agreements with AeroRepublica (REU), Air Namibia (NAM), flyLAL Lithuanian Airlines (LIJ), TESIS, and Uzbekistan Airlines (UZB) to transition the airlines to fully automated cargo systems.
E190 (0138, HK-4508X), delivery, ex-(PT-SYR).
February 2008: Copa Airlines (COP) and AeroRepublica (REU) parent Copa (COP) Holdings reported full-year net income of +$160.4 million for 2007, up +19.9% from +$133.8 million earned in 2006. Operating revenue climbed +20.7% to $1.03 billion and operating income, adjusted to include special charges related to the early termination of leases on five AeroRepublica (REU) MD-80s, rose +18.5% to $196.8 million, from $166.6 million.
The two airlines flew a combined 5.86 billion (RPM)s passenger traffic last year, up +16.8% over 2006, against a +15.3% increase in capacity to 7.92 billion (ASM)s. Load factor rose +1 point to 74% LF and yield was up +3.6% to 16.5 cents. Unit revenue increased +4.7% to 13 cents and (CASM) climbed +6% to 10.6 cents. Excluding fuel, unit costs grew +4.9% to 7.1 cents. The Copa (COP) mainline ended the year with a fleet of 37 airplanes while the Colombian subsidiary concluded 2007 with a fleet of 13. The group took delivery of 14 units last year.
In the fourth quarter, Copa (COP) reported a profit of +$34.1 million, down -17.7% from +$41.5 million earned in the final three months of 2006. Adjusted operating income dipped -2.7% to +$49.3 million from +$50.7 million on a +19.9% increase in operating revenue to $284.6 million.
May 2008: Healthy loads and yields helped Copa Airlines (COP) and AeroRepublica (REU) parent, Copa Holdings mitigate the impact of rising fuel costs in the first quarter, when it suffered a relatively mild -18.7% decline in net income to +$39.5 million from +$48.6 million in the year-ago period. Results, the company characterized as "strong," were boosted by a +21.9% year-over-year increase in operating revenue to $295.9 million. Operating income slipped -14.9% to +$51.7 million from +$60.8 million, as fuel costs climbed $21.7 million.
The airlines flew 1.62 billion (RPM)s passenger traffic during the quarter, up +13.5%, against a +11.2% climb in (ASM)s to 2.08 billion. Load factor rose +1.6 points to 78% LF. Yield was up +7.2% to 17.3 cents and unit revenue rose +9.6% to 14.2 cents. (CASM) increased +20.7% to 11.8 cents.
With the arrival of its 12th E190 last month, Copa Airlines (COP) currently operates 38 airplanes. Its Colombian partner, which achieved (IATA) (ITA) Operational Safety Audit (IOSA) certification last month, flies 13.
July 2008: AeroRepublica (REU) adds a second daily flight for Panama City - Cali.
August 2008: Copa Airlines (COP) and Aero Republica (REU) parent, Copa Holdings reported second-quarter net income of +$30.4 million, down -1.5% from +$30.9 million in the year-ago period, as its aggressive expansion continued to pay off even in the face of high fuel costs. Copa (COP) said the "strong results" were reflective of fast-growing revenue that allowed it to maintain "its position among the world's most profitable airlines" even as fuel costs rose by +$37 million year-over-year. Operating revenue soared +26.6% to $297.9 million and operating income was +$31.2 million, down -20% from +$39 million last year.
Traffic increased +15.8% to 1.56 billion (RPM)s on a +11.3% rise in capacity to 2.09 billion (ASM)s, producing a load factor of 74.5% LF, up +2.9 points. Yield lifted +9.6% to 18 cents, as (RASM) escalated +13.7% to 14.2 cents, and (CASM) grew +22.1% to 12.7 cents. (CASM), excluding fuel, rose +6.9% to 7.8 cents. Copa Airlines (COP) took delivery of two EMB-190s and one 737-800 in the quarter, bringing its fleet to 40 airplanes. By year end, it will serve 45 destinations in 24 countries.
November 2008: Copa Holdings, parent of Copa Airlines (COP) and AeroRepublica (REU), reported third-quarter net income of +$30.3 million, down -35.6% from a +$46.8 million profit in the year-ago period, a drop it attributed almost entirely to noncash fuel hedge losses. Copa (COP) took a $15.5 million noncash charge on its hedging contracts owing to the drop in oil prices during the quarter. Absent the charge, its quarterly net profit would have been +$45.8 million.
It said it is continuing its growth strategy and is planning to take delivery of two E190s in the current quarter to bring its fleet to 42 airplanes (15 E190s and 27 737NGs). A 737NG slated to be delivered in the current quarter has been pushed back to the 2009 first quarter, owing to the recently concluded Boeing machinists' strike. AeroRepublica (REU) operates an additional nine EMB-190s as well as four MD-80s.
Third-quarter revenue rose +31.8% year-over-year to $348.9 million, and operating income increased +4.3% to +$57.1 million. Consolidated traffic heightened +13.7% to 1.78 billion (RPM)s on a +9.3% lift in capacity to 2.3 billion (ASM)s, leading to a +3% rise in load factor to 77.3% LF. Yield grew +16.5% to 18.6 cents, as (RASM) increased +20.6% to 15.2 cents, and (CASM) rose +23.1% to 12.7 cents. (CASM) excluding fuel, lifted +5.1% to 7.3 cents.
February 2009: Copa Holdings, parent company of Copa Airlines (COP) and Aero Republica (REU), announced financial results for the fourth quarter (4Q) of 2008 and full year 2008:
- - Copa Holdings reported net income of +$51.9 million for (4Q) 2008, as compared to net income of +US$35.5 million in (4Q) 2007. Excluding special items, which for (4Q) 2008 include a $12.2 million non-cash charge associated with the mark-to-market of fuel hedge contracts, Copa Holdings would have reported an adjusted net income of $64.1 million.
- - Net income for full year 2008 reached +$152.2 million, compared to $161.8 million for full year 2007. Excluding special items, which for 2008 include a $20.2 million non-cash charge associated with the mark-to-market of fuel hedge contracts, Copa Holdings would have reported an adjusted net income of $172.4 million.
- - The Company reported record operating income for (4Q) 2008, reaching $84.0 million, a +95.5% increase compared to operating income of US$43.0 million recorded in (4Q) 2007. Operating margin increased +9.2% points, from 15.1% in (4Q) 2007 to 24.3% in (4Q) 2008, mainly due higher unit revenues.
- - The Company reported operating income of +$224.0 million for full year 2008, a +13.4% increase as compared to operating income of +$197.5 million in 2007. Operating margin for 2008 reached 17.4%, one of the best margins in the airline industry.
- - Total revenues for (4Q) 2008 increased +21.6% to 346.1 million. Yield per passenger mile increased +6.0% to 18.5 cents and operating revenue per available seat mile (RASM) increased +5.8% to 14.6 cents.
- - For (4Q) 2008 consolidated passenger traffic grew +15.5% while capacity increased 15.0%. As a result, consolidated load factor for the quarter increased +0.3 percentage points to 74.1% LF.
- - Operating cost per available seat mile (CASM) decreased -5.7%, from 11.7 cents in (4Q) 2007 to 11.0 cents in (4Q) 2008. (CASM), excluding fuel costs and special items, decreased -5.4% from 7.6 cents in (4Q) 2007 to 7.2 cents in (4Q) 2008, mainly due to lower average commissions.
- - The Company ended the year with a strong cash position, totaling $408.1 million in cash, short term and long term investment, which represent approximately 32% of last twelve months´ revenues. This figure includes $47.3 million in restricted cash, of which $39.7 million are collateral for out-of-money hedge contracts related to future quarters. Additionally, the company has committed lines of credit totaling $31.1 million.
- - In (4Q) 2008, (COP) began service to three new destinations: Oranjestad (Aruba), Valencia (Venezuela) and Santa Cruz (Bolivia). (COP)'s network currently serves 45 destinations in 24 countries in the Americas - - by far, the most extensive network for intra-Latin American travel.
- - During (4Q), (COP) took delivery of two Embraer E190 airplanes. (COP) ended the year with a fleet of 42 airplanes, consisting of 27 737s and 15 Embraer E190 aircraft. Copa Holdings ended the year with a consolidated fleet of 55 airplanes.
- - For 2008, (COP) reported on-time performance of 87.5% and a flight-completion factor of 99.6%, maintaining its position among the best in the industry. Additionally, Aero Republica (REU)'s on-time performance came in at 84.2%, leading the Colombian market, both in domestic and international on-time performance.
May 2009: Copa Airlines (COP) and Aero Republica (REU) parent, Copa Holdings reported a +$71.6 million profit in the first quarter, up an impressive +81.3% from the +$39.5 million earned in the year-ago period. Operating revenue climbed +4.3% year-over-year to $308.8 million but unit cost fell -16% to 9.9 cents and -11% to 6.8 cents excluding fuel. Operating income of +$68.9 million was a +33.3% improvement over the +$51.7 million reported last year. (COP) said it recorded both a +$16.2 million non-cash gain and a -$19.9 million loss on its fuel hedges during the quarter. (COP)/(REU) flew 1.81 billion consolidated (RPM)s, up +11.6%, against a +17% lift in capacity to 2.43 billion (ASM)s. Load factor slipped -3.6 points to 74.4% LF and yield was down -6.2% to 16.2 cents. Unit revenue declined -10.8% to 12.7 cents. (COP) concluded the quarter with 27 737NGs and 15 E190s, while (REU) operated 11 E190s and four MD-80s.
August 2009: Copa Holdings, parent of Copa Airlines (COP) and Aero Republica (REU), posted second-quarter net income of +$55.2 million, a +81.3% increase over a +$30.4 million profit in the year-ago period that was aided by a $27.1 million non-cash mark-to-market fuel hedge gain.
But the profit increase was notable considering that May/June passenger traffic was "negatively affected as a result of the H1N1 flu crisis, which resulted in lower overall demand for intra-Latin America travel, especially to and from Mexico," (COP) said. The Panama City-based company estimated that its second-quarter revenue was reduced by about -$12 million, owing to the swine flu scare.
Second-quarter revenue declined -6.8% to $277.6 million, while operating income was +$36.8 million, up +17.8% over +$31.2 million last year. Consolidated traffic rose +7.5% to 1.68 billion (RPM)s on a +16.5% lift in capacity to 2.45 billion (ASM)s, resulting in a 68.7% LF load factor, down -5.7 points. Yield fell -13.3% to 15.6 cents as (RASM) lowered -20% to 11.4 cents and (CASM) decreased -22.5% to 9.9 cents. (CASM) ex-fuel dipped -9.1% to 7.1 cents.
(COP) ended the quarter with a fleet of 58 airplanes, including 28 737NGs and 15 E190s operated by (COP) and 11 E190s and four MD-80s operated by (REU). It said it has secured loan guarantees from the USA Export-Import Bank to finance two 737NGs to be delivered this year. It added that it also has "preliminary commitments" from Ex-Im Bank to support the delivery of 10 airplanes from 2010 to 2012.
ST Aerospace signed a three-year maintenance service agreement with Copa Airlines (COP) covering maintenance, repair and overhaul (MRO) of (COP)'s fleet of 28 737NGs and 15 E190s as well as an additional 11 EMB-190s operated by subsidiary, Aero Republica (REU). The contract, an extension of a previous accord signed three years ago that allowed ST Aerospace to launch services in Panama, commences immediately and is valued at $18.5 million.
October 2009: AeroRepublica (REU) continues its cross-border expansion with a new E190 route from Bogota to Quito, the capital of Ecuador.
SEE ATTACHED "AIRLINE BUSINESS" ARTICLE - - "REU-COLOMBIA NEWS-2009-10-A/B/C/D."
November 2009: Copa Airlines (COP) and AeroRepublica (REU) parent, Copa Holdings reported third-quarter net income of +$43.1 million, up +87.4% from a +$23 million profit in the year-ago quarter, an increase it attributed to "a solid and resilient business model based on developing the most comprehensive and convenient network for intra-Latin America travel and a very competitive cost structure." It recorded a $5.1 million non-cash fuel hedge gain and a $14.6 million charge related to the retirement of four MD-80s as AeroRepublica (REU) transitions to an all E190 fleet. Excluding these special items, its quarterly net profit would have been +$52.6 million.
Third-quarter revenue declined -7.2% to $323.7 million and operating income fell -19.6% to $45.9 million from $57.1 million in the 2008 third quarter. Consolidated traffic grew +8.4% to 1.93 billion (RPM)s on a +10.9% increase in capacity to 2.55 billion (ASM)s. Load factor fell -1.9 points to 75.8% LF. Yield decreased -14.5% to 15.9 cents as (RASM) sank -16.5% to 12.7 cents and (CASM) slid -14.2% to 10.9 cents. Copa Airlines (COP) ended the quarter with 28 737s and 15 E190s, while AeroRepublica (REU) had 11 E190s and one MD-80.
(REU) made money too, exceeding its breakeven load factor by about four points. It’s now tackling international markets: — - Bogota - Quito flights start next month — - and (REU) will soon be rid of its
February 2010: Copa Airlines (COP) and Aero Republica (REU) parent, Copa Holdings reported a +$240.4 million profit for 2009, more than double the +$118.7 million earned in the prior year. The 2009 result included a $19.4 million charge related to the retirement of four MD-80s and Aero Republica (REU)'s transition to an all E190 fleet, as well as a $58 million non-cash gain on the company's fuel hedges. Full-year operating revenue dipped -2.8% to $1.25 billion, while operating profit slipped -0.3% to +$223.3 million.
The company flew 7.4 billion consolidated (RPM)s traffic last year, up +10.1%, against a +12.1% lift in capacity to 9.91 billion (ASM)s. Load factor declined -1.3 points to 74.6% LF. Yield dropped -11.5% to 16 cents, while (RASM) fell -13.2% to 12.6 cents. Unit cost was cut -13.7% to 10.4 cents and (CASM) excluding fuel dipped -1.5% to 7.4 cents.
Fourth-quarter profit soared +173.5% to +$70.4 million from +$25.8 million in the year-ago period despite a -0.9% slide in revenue to $343 million. Operating income was down -14.6% year-over-year to $71.8 million.
(COP) said it expected a $21 million first-quarter charge related to new exchange rates set by the Venezuelan government. It serves Caracas, Maracaibo, and Valencia, and Aero Republica (REU) flies to Caracas. (COP) and (REU) ended the year with a combined fleet of 56 airplanes.
May 2010: Copa Holdings, parent of Copa Airlines (COP) and Aero Republica (REU), reported first-quarter net income of +$36.7 million, down -48.7% from a +$71.6 million profit in the year-ago period, on a +8.6% lift in revenue to $335.2 million. It said its net income was affected negatively by a $19.8 million charge related to the devaluation of the Venezuelan currency and a $400,000 non cash charge associated with mark-to-market fuel-hedge contracts. Operating income was +$70.8 million, up +2.8% from +$68.9 million last year.
(COP)/(REU)'s combined traffic increased +11% to 2.01 billion (RPM)s on a +3.2% rise in capacity to 2.51 billion (ASM)s, producing a load factor of 80% LF, up +5.6 points. Yield lowered -1.9% to 15.9 cents as (RASM) heightened +5.2% to 13.4 cents and (CASM) increased +6.8% to 10.5 cents. (CASM ex-fuel grew +8.5% to 7.4 cents. Copa (COP) took delivery of three 737-800s in the quarter while Aero Republica (REU) retired its last MD-80, leaving Copa Holdings with a fleet of 58 airplanes as of March 31.
June 2010: Aero Republica (REU) flew 99.8 million (RPM)s traffic in June, up +10.3%, while capacity grew +3.9% to 138.5 million (ASM)s. Load factor improved +4.1 points to 72% LF.
(REU) begins flights to San Jose, Costa Rica, its 5th international city.
August 2010: Copa Holdings, parent of Copa Airlines (COP) and Aero Republica (REU), reported net income of +$18.6 million in the second quarter ended June 30, down -66.3% compared to earnings of +$55.2 million in the year-ago period.
Excluding special items, primarily mark-to-market fuel hedges, net income in the current period totaled +$26.3 million, compared to +$28.1 million in the year-ago period. Quarterly revenues rose +9.3% year-over-year to $303.4 million on a +5% rise in capacity, while operating income was +$32.5 million, down -11.6% compared to operating income of +$36.8 million last year.
The company said that yield declined -2.5% to 15.2 cents. However, a +4.4-point rise in load factor helped boost passenger (RASM) +3.7% to 11.1 cents, while total (RASM) climbed +4.1% to 11.9 cents. Operating expense per (ASM) increased +7.1% to 10.6 cents, while (CASM) excluding fuel, rose +4.3% to 7.4 cents.
Commenting on the outlook for the rest of 2010 during the company's quarterly investor webcast, (CEO), Pedro Heilbron said, "For the second half of the year, the company expects marginally stronger unit revenues than in the first half of the year on a significant capacity expansion. This will be the main driver of second-half revenue growth. Lower ex-fuel unit costs, mainly coming from the added capacity, should result in operating margin expansion and should allow us to come through with yet another year of outstanding financial results."
Aero Republica (REU) will launch service from Bogota to Mexico City (daily) and Havana (weekly) on October 2. (REU) says it will focus on international growth and put "the brakes on domestic expansion due to intense low-fare competition."
September 2010: Aero Republica (REU) has been re-branded as "Copa Airlines Colombia."
October 2010: Copa Holdings September load factor declined -4.9% points, compared with the same month last year, due to oversupply at the operator’s Copa Airlines (COP) division. The Panama-based carrier added +17.3% to the 676.4 million (ASM)s capacity recorded in September 2009. Traffic, however, grew just +8.3% to 563.5 million (RPM)s, producing a load factor of 71% LF, down -5.9 points.
Copa Holding’s newly renamed Copa Airlines Colombia (REU) unit,
previously known as "Aero Republica" (REU), at the same time
generated +10.5% more traffic on a +9.7% increase in supply to 132.8 million (ASM)s. Load factor as a result grew 0.5 points to 67% LF. Combined, these two divisions produced a load factor of 70.5% LF on a +16.1% rise in consolidated capacity to 926.1 million (ASM)s and a +8.6% increase in traffic to 652.4 million (RPM)s.
November 2010: Copa Airlines (COP) signed an agreement to acquire as many as 32 more 737-800s in what (COP) is describing as the largest new airplane order in its history. (COP) says the order, which includes (CFM56-7BE) engines and 787-style “modern” interiors—is valued at about $2.6 billion at Boeing (TBC) list prices, but is not saying what it actually is paying. The order includes 10 options, although (COP) clearly plans to exercise them. “These 32 airplanes, which will be delivered between 2015 and 2018, are an integral part of our medium-term growth plan,” (COP) (CEO), Pedro Heilbron says.
In the past two years, (COP) has bought 37 737-800s from Boeing (TBC) and signed leasing agreements for an additional 10. By the end of this year, (COP)’s fleet will grow to 63 airplanes, 37 of which will be 737 Next Generation airplanes. With this order, (COP) could take delivery of an additional 68 in the next seven years, including 22 that would be delivered in 2011 and 2012. (COP) usually uses Export-Import Bank financing for deliveries.
Copa Holdings, the parent of Copa Airlines (COP) and the newly re-branded Copa Airlines Colombia (REU), recently reported a 19.5% operating margin and a +$63.9 million profit for the third quarter. That’s up +5.4% points and 48.2%, respectively, year-over-year. It expects capacity to increase +17 to +19% in 2011, with the introduction of 10 higher-gauge 737-800s accounting for about a third of that increase; the other contributors will be new service, more frequencies and a longer average stage length. Most of the 2011 expansion coincides with the completion of a new terminal in May at Tocumen International Airport in Panama City, which (COP) promotes as the “best connecting point for intra-Latin America travel.”
February 2011: Copa Holdings, parent of Panama's Copa Airlines (COP) and Copa Airlines Colombia (formerly Aero Republica) (REU), posted 2010 net income of +$212.1 million, down -11.8% from a +$240 million profit in 2009. But it noted that 2009 net results benefited from a +$58 million non-cash gain owing to fuel hedging, and net income excluding special items rose from +$201.7 million in 2009 to +$219.2 million in 2010.
Fourth-quarter net income was +$92.8 million, up +31.8% from a +$70.4 million profit in the 2009 December period, on a +19.7% lift in revenue $410.6 million.
"Copa Holdings' strong fourth-quarter and full-year results are the product of a solid and well executed business model based on operating the best and most convenient network for intra-Latin America travel," (COP) said in a statement. It projects year-over-year consolidated capacity growth of around +20% (ASM) for 2011 "as a result of the full year effect of capacity added in 2010 and the introduction of 10 additional 737-800 airplanes during 2011." Copa Airlines (COP) took delivery of three 737-800s in the fourth quarter to bring Copa Holdings' consolidated fleet to 63 airplanes at the end of 2010 comprising 20 737-700s, 17 737-800s and 26 Embraer E190s.
Full-year revenue increased +12.6% to $1.41 billion, while expenses heightened +11.5% to $1.15 billion, producing operating income of +$263 million, up +17.8% over an operating profit of +$223.3 million in 2009.
Full-year traffic increased 13.8% to 8.42 billion RPMs on +10.5% growth in capacity to 10.95 billion (ASM)s, leading to a load factor of 76.9% LF, up +2.2 points. Yield dipped -1.1% to 15.9 cents as (RASM) edged up +1.9% to 12.9 cents and (CASM) rose +0.9% to 10.5 cents. (CASM) ex-fuel lowered -1.5% to 7.2 cents. (COP) noted that (RASM) is expected to decrease approximately -4% year-over-year in 2011 "mainly as a result increased length of haul and capacity expansion."
(COP) is accepting flight crew (FC) applications. A visa is required.
November 2011: Copa Holdings, parent of Copa Airlines (COP) and Copa Airlines Colombia (REU) (formerly Aero Republica), posted third-quarter net income of +$70.3 million, nearly on par with a +$71.5 million net profit earned in the prior-year period. The fast-growing airline company said full-year consolidated capacity will be +21% higher than full-year 2010 capacity, while 2012 capacity will increase another +20%.
The growth is made possible by the addition of 10 737-800s this year and another 10 of the type expected to join the fleet in 2012.
Third-quarter revenue leaped +31.3% year-over-year to $476.8 million, while expenses increased +38.2% to $374.7 million, including a +58.8% spike in airplane fuel costs to $145.8 million. Operating profit was +$102.2 million, up +38.2%. Net income fell slightly owing to a -$19.8 million mark-to-market loss on fuel hedging.
Third-quarter traffic increased +21.6% to 2.66 billion (RPM)s on a +19.1% rise in capacity to 3.45 billion (ASM)s, producing a load factor of 77.1% LF, up +1.6 points. Yield rose +9.1% to 17.2 cents.
February 2012: Copa Holdings, parent of Copa Airlines (COP) and Copa Airlines Colombia (REU) reported 2011 net income of +$310.4 million, up +28.8% over a +$241.1 million net profit in 2010.
The fast-growing airline company boosted consolidated 2011 capacity +21.9% year-over-year to 13.35 billion (ASM)s, and plans to increase capacity by another +22% in 2012. Traffic in 2011 grew +21.2% to 10.2 billion (RPM)s. Load factor was 76.4% LF, down -0.5 point.
Yield rose +7.8% to 17.1 cents, while operating margin lifted +0.5 point to an impressive 21%. Owing to rising fuel prices, profit margin is expected to dip to 18% to 20% in 2012.
Full-year 2011 revenue jumped +29.3% compared to 2010 to $1.83 billion, while expenses heightened +28.4% to $1.45 billion, including a +54.3% rise in airplane fuel costs to $546.9 million. Operating profit in 2011 was +$384.7 million, up +32.8%.
(COP) took delivery of two 737-800s during the 2011 fourth quarter. Copa Holdings ended the year with a consolidated fleet of 73 airplanes comprising 20 737-700s, 27 737-800s, and 26 Embraer E190s.
May 2012: Copa Holdings, parent of Panama's Copa Airlines (COP) and Copa Airlines Colombia (REU), posted first-quarter net income of +$95.9 million, up +1.6% over a net profit of +$94.4 million in the prior-year period.
The company continued its fast pace of growth, increasing first-quarter traffic +22.4% year-over-year to 2.95 billion (RPM)s on a +22.8% rise in capacity to 3.83 billion (ASM)s, producing a load factor of 77.2% LF, virtually flat year-over-year. Yield heightened +6.4% to 13.7 cents.
Quarterly revenue jumped +29.5% to $543.3 million, while expenses rose +34.9% to $431.7 million, including a +47.1% increase in airplane fuel costs to $170.9 million. Operating income was +$111.6 million, up +12%.
June 2012: Avianca (AVI)-Taca (TAC) and Copa Airlines (COP) (with subsidiary, Copa Columbia (REU)) became Star (SAL) Alliance members this month.
Star (SAL) Alliance (CEO), Mark Schwab said the addition of the new airlines “strengthens our presence in the rapidly growing Latin American market. Our customers now enjoy increased connectivity across the Americas by connecting through five new (SAL) Alliance hubs right in the middle of the American continent," he said.
March 2013: Copa Holdings, parent of Panama’s Copa Airlines (COP) and Copa Airlines Colombia (REU), has appointed Director Planning, Jose Montero as its new (CFO). He replaces longtime Copa (COP) (CFO), Victor Vial who has held the post since 2000. Montero will officially assume (CFO) responsibilities March 15.
(COP) (CEO), Pedro Heilbron noted Vial has been a key figure guiding the Panama City-based airline’s aggressive expansion. Fast-growing (COP)’s capacity was up +19.1% year-over-year, through the first two months of 2013.
Montero has been with (COP) since 1993, serving as Director of Planning for the past nine years. (COP) said Vial “will continue his involvement with the company as advisor to the board of directors.”
August 2013: Copa Holdings, parent company of Panama-based Copa Airlines (COP) and Copa Airlines Colombia (REU), posted a second-quarter net income of +$74.4 million, more than doubling a net profit of +$32 million in the year-ago period.
February 2014: Copa Holdings, parent company of Panama-based Copa Airlines (COP) and Copa Airlines Colombia (REU), reports 2013 net income of +$428.2 million, up +31.2% over 2012’s net profit of +$326.5 million.
2013 revenue rose +16% to $2.61 billion, while expenses increased +13.2% to $2.09 billion, producing an operating profit for the year of +$518.5 million, up +28.8% year-over-year.
For the 2013 full-year, Copa Holdings’ traffic rose +16.3% to 14.53 billion (RPM)s on a +14.4% rise in capacity to 18.95 billion (ASM)s, producing a load factor of 76.7% LF, up +1.2 points from 2012.
Yield grew +0.2% to 17.3 cents as (RASM) increased +1.4% to 13.8 cents and (CASM) dropped -1.1% to 11 cents. (CASM) ex-fuel was 6.9 cents, down -1.9%. Copa Holdings’ fuel expenses for 2013 were $783.1 million, a +7.9% increase from 2012. The company carried 7,779,000 passengers in 2013, up +8.9% from 2012.
In the 2013 fourth-quarter, the company posted net income of +$113.9 million, up +31.5% from 2012’s December quarter. Fourth-quarter revenue rose +16.3% to $697.8 million; expenses increased +14.4% to $567.1 million, leaving an operating profit of +$130.7 million, up +25.3% year-over-year.
Copa Airlines (COP) took delivery of one 737-800 during the fourth quarter, bringing Copa Holdings’ consolidated fleet as of the end of 2013 to 90 airplanes, consisting of 18 737-700s, 46 737-800s and 26 Embraer EMB-190s.
August 2014: Copa Holdings, parent company of Panama-based, Copa Airlines (COP) and Copa Airlines Colombia (REU), posted second-quarter net income of +$118.2 million, up +58.7% year-over-year, compared to the company’s $74.4 million net profit in the 2013 June quarter.
Total revenue for the quarter was $673.6 million, up +13.8% year-over-year while expenses grew +9.7% to $542.4 million, producing an operating profit of +$131.2 million, up +34.3% compared to the year-ago period.
Second-quarter consolidated traffic was up +12.7% to 3.92 billion (RPM)s on a +9.7% rise in capacity to 5.07 billion (ASM)s, producing a load factor of 77.3% LF, up +2 points year-over-year. Copa (COP)’s consolidated number of passengers carried during the second-quarter came to 1.9 million, up +1.6% from the 1.86 million passengers carried during the year-ago-quarter.
Yield grew +1.6% year-over-year to 16.6 cents, as (RASM) increased +3.7% to 13.3 cents, and (CASM) stayed consistent at 10.7 cents. (CASM) ex-fuel fell -0.9% to 6.6 cents. (COP)’s fuel expenses for the second-quarter were $205.9 million, up +11.5% year-over-year.
(COP) took delivery of two 737-800s during the second quarter, bringing Copa Holdings’ consolidated fleet, as of June 30, to 93 airplanes.
In June, Copa (COP) received a $43.3 million payment from Venezuela’s Centro Nacional de Comercio Exterior/National Center for International Trade (CENCOEX), following repatriation requests made by (COP) in early 2013. The funds were honored at 6.30 bolivars per dollar exchange rate (the same level at which the revenues were accrued) eschewing the discounted exchange rate the Venezuelan government had previously offered.
Copa Airlines (COP) reportedly has $528.1 million in funds subject to exchange controls in Venezuela and are pending repatriation.
Venezuela’s currency controls have prevented many airlines from converting bolivar-denominated revenue into dollars. Subsequently, service has been cut by many of the carriers (including Copa (COP), which has slashed its Venezuela capacity for the rest of 2014 by 40%). The affected airlines plan to continue reducing capacity until the Venezuelan government releases the revenue owed to them.
“Discussions with the Venezuelan government are ongoing, and we continue to request for the company’s pending repatriations to be expedited and honored at the exchange rate at which tickets were sold,” (COP) said in its second-quarter earnings report. “Nonetheless, there is still no certainty regarding timing of approvals or the exchange rate at which the company’s pending bolivar repatriation requests will be converted to USA dollars.”
February 2015: News Item A-1: Copa Holdings (parent company of Panama-based Copa Airlines (COP) and Copa Airlines Colombia (REU)) posted a 2014 net profit of +$371.4 million, a -13.1% drop from Copa (COP)’s 2013 net income of +$427.5 million.
(COP)’s consolidated operating revenue for the year grew +4.3% year-over-year (YOY) to $2.72 billion as expenses rose +4.4% to $2.18 billion. (COP)’s full-year operating profit was +$538.1 million, up +4% (YOY).
(COP)’s combined airline traffic grew +9.5% (YOY) in 2014 to 15.9 billion (RPM)s; capacity kept pace at +9.5% growth (YOY) to 20.8 billion (ASM)s. The resulting total passenger load factor (PLF) for the full-year came to 76.7% LF, matching 2013’s (PLF).
Yield was down -4.4% (YOY) to 16.6¢ as (RASM) dropped -4.7% (YOY) to 13.1¢ and (CASM) fell -4.6% (YOY) to 10.5¢. (COP)’s (CASM) ex-fuel was 6.6¢ for the year, down -4.8% (YOY).
(COP)’s consolidated fuel expenses for the year were $820.7 million, up +4.8% (YOY); consolidated fuel consumed was up +8.5% (YOY), to 268.5 million gallons. (COP)’s airlines carried a combined 7,797,000 passengers in 2014, up +0.2% from 2013.
(COP) posted $35.9 million in fourth-quarter net income, down -68.3% from the company’s +$113.2 net profit in the year-ago quarter. (COP) reported a non-cash loss of -$89.1 million associated with the mark-to-market of fuel hedge contracts among its fourth-quarter special item adjustments. (COP)’s fourth-quarter revenue slipped -3.8% (YOY) to $670.9 million; operating expenses dropped -2.8% (YOY) to $552.1 million; Copa (COP)’s resulting operating profit for the quarter came to +$118.8 million, down -8.4% (YOY).
Copa Airlines (Panama) (COP) took delivery of two Boeing 737-800s during the fourth quarter, bringing Copa Holdings’ consolidated fleet as of December 31, 2014 to 98 airplanes. (COP) operates 54 Boeing 737-800s, 14 737-700s and 12 Embraer E190ARs. Copa Airlines Colombia (REU) operates 14 E190ARs and four 737-700s.
May 2015: Copa Holdings reported +$113.1 million net income for the 2015 first quarter, down -25.3% from the company’s +$151.4 million net profit in the 2014 March quarter.
Copa Holdings (the parent company of Panama’s Copa Airlines (COP) and Copa Airlines Colombia (REU)) said the first-quarter results reflect the company’s transition to all USA dollar ticket sales, which reduced passenger yields “driven in large part by the reduction in Venezuelan yields.” Additionally, low customer demand, especially in South America, affected the company’s first-quarter revenues, though lower fuel expenses and lower ex-fuel unit costs partially offset the results, Copa (COP) said.
Total revenue for the quarter was $631.8 million, down -11.5% year-over-year (YOY). Operating expenses fell -6% (YOY) to $504.6 million; the company’s operating profit for the quarter came to +$127.3 million, down -28.1% (YOY).
Copa (COP)’s consolidated first-quarter traffic increased +5.8% (YOY) to 4.14 billion (RPM)s as capacity expanded +8.3% (YOY) to 5.43 billion (ASM)s, resulting in a load factor of 76.3% LF, down -1.8 points (YOY). Copa (COP)’s airlines carried a combined 1,965,000 passengers during the quarter, down -3.3% (YOY).
(COP)’s first-quarter yield was down -16.2% (YOY) to 14.8¢, a drop of -2.9¢. (RASM) fell -18.3% (YOY) to 11.6¢, and (CASM) dropped -13.2% (YOY) to 9.3¢. Copa (COP)’s (CASM) ex-fuel was 6.3¢ during the quarter, down -3.4% (YOY).
(COP)’s consolidated fuel expense for the first-quarter was $160.8 million, down -22.7% (YOY); the company’s consolidated fuel consumed increased +6.6% (YOY), to 69.6 million gallons. Copa (COP) reported that it had fuel hedges in place for 32% of its consolidated volume in the 2015 first-quarter. Going forward, Copa (COP) has hedged nearly 30% of its projected volume for the 2015 June quarter, 25% for (3Q) 2015, 20% for (4Q) 2015, and approximately 21% of its projected fuel consumption for 2016.
During the quarter, Copa Airlines (COP) took delivery of one Boeing 737-800 and returned a leased 737-700. Copa Holdings ended the quarter with a consolidated fleet of 98 airplanes.
August 2015: News Item A-1: Copa Holdings reported second-quarter net profit of +$64.1 million, down -45.8% from a net profit of +$118.2 million in the year-ago quarter.
“Copa Holdings’ second-quarter results are mostly the product of a weak economic environment in South America,” (COP) said. “[Our] second-quarter results reflect lower passenger yields, driven in large part by the reduction on Venezuelan yields from the transition to all USA dollar ticket sales.”
Low demand, primarily in Venezuela, Brazil, and Columbia, also factored into the quarterly figures, but were “partially offset by a lower fuel expense and lower ex-fuel unit costs for the quarter,” Copa (COP) said.
Copa Holdings is the parent company of Panama’s Copa Airlines (COP) and Copa Airlines Colombia (REU).
Copa (COP)’s operating revenue totaled $538.4 million during the quarter, down -20.1% year-over-year (YOY). Operating expenses were down -9.8% (YOY) to $489.2 million; the company’s operating profit for the quarter dropped -62.5% (YOY), to +$49.2 million.
(COP)’s consolidated traffic was flat during the 2nd-quarter (down -0.2% (YOY)) at 3.91 billion (RPM)s, falling -5.6% from its 1st-quarter traffic of 4.14 billion (RPM)s. The company’s consolidated capacity grew +5.8% (YOY) to 5.36 billion (ASM)s, decreasing -1.4% from 5.43 billion (ASM)s in (1Q) 0215. (COP)’s consolidated (2Q) passenger load factor was 72.9% LF, down -4.3 points (YOY), and falling -3.3 points from the 2015 March quarter. (COP)’s airlines carried a combined 1.9 million passengers during the quarter, down -1.2% (YOY).
The company’s consolidated yield during the second-quarter was down -20.4% (YOY) to 13.2¢, a drop of -3.4¢. (RASM) fell -24.4% (YOY) to 10¢ and (CASM) dropped -14.7% (YOY) to 9.1¢. (COP)’s (CASM) ex-fuel was 6.2¢ during the quarter, down -6.3% (YOY).
(COP)’s consolidated airplane fuel expense for the 2nd-quarter fell -24.3% (YOY) to $155.9 million (a -$50 million savings); the company’s consolidated fuel consumed increased +3.1% (YOY), to 67.9 million gallons. Copa (COP) reported its fuel hedges in place for the 2nd-quarter represented 30% of its consolidated volume. For the next several quarters, the company is hedging approximately 25% for (3Q) 2015, 25% for (4Q) 2015, and approximately 21% of its projected fuel consumption for 2016.
During the quarter, (COP) took delivery of 2 Boeing 737-800s, returned a leased 737-700 and subleased a 737-700 to United Airlines (UAL). Between (COP) and Copa Airlines Colombia (REU), the company ended the 2nd quarter with a fleet of 98 airplanes.
In April, Copa Airlines (COP) confirmed it had ordered 61 Boeing 737 MAX-8 and 737 MAX-9 airplanes (originally as an ‘unidentified customer’ on Boeing (TBC)’s orders and deliveries tally), a transaction valued at $6.6 billion at then-current list-prices. (COP) intends to use the 737 MAXs as replacements for existing airplanes and to support the company’s forays into operating deep South American routes and other intra-Latin America travel.
News Item A-2: "Trouble in Latin America" by (ATW) Aaron Karp in AirKarp Blog, August 19, 2015.
(Copa) (COP) (COPA) Holdings Parent (CFO) Jose Montero said: "Demand nor air travel in our region continues to weaken, driven by currency devaluation and low economic growth."
While North American airlines are enjoying tremendous profitability, Latin America’s airlines are struggling mightily. The future may eventually be bright for (Copa) (COP), Avianca (AVI), (LATAM) (TPR)/(LAN) and other Latin American airline companies, but the present is stormy with no sunshine in sight. (LATAM) reported a -$50 million second-quarter net loss and subsidiary (TAM) (TPR) is slashing domestic Brazilian capacity. (Copa) (COP) stayed profitable in the second quarter, but its net income was down -45.8% year-over-year. Brazil’s (GOL) (GOT) reported a doubling of its net deficit in the second quarter and is cutting capacity -2% to -4% year-over-year in the 2015 second half.
The hardest hit Latin American economies are Brazil, Venezuela and Colombia, and Latin American airlines’ ties to formerly fast-growing Brazil are particularly damaging to their bottom lines. Brazil’s economy is expected to contract in 2015, and the value of its currency, the real, has plunged. Of 152 currencies tracked by "Reuters," only the currencies of Kyrgyzstan, Ukraine, and Azerbaijan have performed worse than the real in 2015.
As a result of all this, the airline revenue environment is horrendous in Latin America. Both (LATAM) and (Copa) (COP) reported year-over-year revenue declines of more than >-20% in the 2nd quarter, and unit revenue performance was even worse.
Speaking to analysts to discuss Panama-based (COP)’s 2nd quarter earnings, senior executives didn’t sugarcoat the situation. “Demand for air travel in our region continues to weaken, driven by currency devaluation and low economic growth,” (COPA) Holdings (CFO) Jose Montero said.
(COP) (CEO) Pedro Heilbron doesn’t foresee a recovery anytime soon. “The economies of Latin America, particularly in South America, still don’t show signs of recovery,” he said. About 40% of Copa (COP)’s (O&D) revenue is tied up in Colombia, Venezuela and Brazil, and the company’s revenue from those markets has been cut in half this year. “The regional economic environment has weakened further” in recent months, Heilbron said.
The biggest problem for Latin American airlines is the difficulty they’re having planning going forward with so much uncertainty in the air. “More than anything, we need stable currencies and stable economies,” Heilbron explained. “It’s not that we need economic growth to rebound to where it was a few years ago, we just need stability and more certainty.”
The difference in financial performance right now, between North American and Latin American airlines is striking. Airlines for America (A4A) VP & Chief Economist John Heimlich told reporters that “weakness in Latin America has been a bit of drag on earnings” for USA carriers that operate to Latin American countries. But the USA “domestic situation is stable for the foreseeable future” and the problems for airlines in Latin America show no signs of migrating north, he said.
May 2016: Panama City-based Copa Holdings reported first-quarter net income of +$115.5 million, up +2% from a net income of +$113.2 million in the year-ago quarter.
Copa Holdings (the parent company of Panama’s Copa Airlines (COP) and Copa Airlines Colombia (REU)) said the first-quarter results reflect lower unit revenues driven in large part by the reduction in yields in Brazil, Venezuela, and Colombia, as well as further demand weakness in other markets, partially offset by lower fuel expense and lower ex-fuel unit costs for the quarter.
First-quarter revenue dropped -11.8% to $557.1 million, while expenses fell -8.2% to $463 million, producing an operating income of $94.1 million, down -26.1%.
Copa (COP)’s consolidated first-quarter traffic increased +3.6% to 4.3 billion (RPM)s as capacity grew +2.4% to 5.57 billion (ASM)s, resulting in a load factor of 77.4% LF, up +0.9% points. Yield fell -15.4% to 12.5 cents.
Going forward, (COP) said it “expects to continue to strengthen its long-term competitive position by taking advantage of new growth opportunities and implementing initiatives to further strengthen its network and product.”
October 2016: "Copa to Launch (LCC) Wingo."
Panama City-based Copa Holdings will launch Wingo (WGO), a low-cost carrier (LCC) subsidiary of Copa Airlines Colombia (REU), with a 737-700 on December 1.
See attached - "REU-737-700 - Wingo-2016-12.jpg."
November 2016: News Item A-1: Copa Holdings posted net income of +$74 million for the 2016 3rd quarter, >10 fold increase compared to the company’s +$6.2 million net profit in (3Q) 2015.
Copa Holdings (the parent company of Panama’s Copa Airlines (COP) and Copa Airlines Colombia (REU)) said 3rd-quarter results reflected stronger unit revenues and lower unit costs. “Despite continued softness in yields, a more stable currency environment seems to be contributing to a healthier air travel demand, in which Copa Holdings was able to deliver its highest ever quarterly load factor [84.2% LF],” Copa management said. “As a result, Copa Holding’s 3rd-quarter unit revenues increase year-over-year, while its unit costs decreased, driving a year-over-year margin expansion.”
Copa Holding’s operating margin for the 3rd quarter was 13.6%, up +4.4 points from +9.2% in (3Q) 2015. The company’s operating revenue for the 3rd quarter was $569 million, up +4% from $547.2 million in (3Q) 2015. Passenger revenue during the 3rd quarter increased +$4.1% (YOY) to $545.1 million.
Total operating expenses were $492 million, down -1% year-over-year (YOY) resulting in a +$77.2 million operating profit, up +52.7% from +$50.6 million operating income in (3Q) 2015.
Copa Holding’s consolidated 3rd-quarter traffic increased +12.7% (YOY) to 4.6 billion (RPM)s as capacity decreased -2% to 5.5 billion (ASM)s, resulting in a load factor of 84.2% LF, up +7.9% points (YOY). Yield fell -7.6% (YOY) to 11.8 cents. (PRASM) was up +2.1% (YOY) to 9.9 cents; (RASM) was up +1.8% (YOY) to 10.3 cents. (CASM) ex-fuel fell -0.9% (YOY) to 6.4 cents.
Copa Holdings reported realized fuel hedge losses of -$22.2 million in the 3rd quarter, compared to -$24.1 million in (3Q) 2015. The company’s effective jet fuel price fell -8.8% to $1.97 in the 2016 3rd quarter from $2.16 in (3Q) 2015. The company had fuel hedges in place representing 32% of its consolidated volume in (3Q) 2016; the company is hedging approximately 35% for (4Q) 2016. For 2017, Copa will hedge approximately 6% of its forecasted fuel consumption at an average $1.80 per gallon.
Looking to the closeout of 2016, Copa is increasing its load factor and (RASM) guidance “mainly as a result of stronger demand and better commercial execution,” the company said. The company’s load factor guidance was raised by +1 point to +/-80%. In 2015, Copa reported a full-year load factor of 75.2% LF. Copa also raised its full-year (RASM) guidance to +/-10 cents while maintaining its full-year (CASM) ex-fuel guidance at +/-6.4 cents. Additionally, Copa narrowed its full-year operating margin by 1 point to a range of 12% to 13% for 2016. Copa’s full-year operating margin in 2015 was 11.8%.
During the quarter, Copa returned 2 leased Embraer E190s, and ended the quarter with a consolidated fleet of 99 aircraft.
On December 1, Copa will launch low-cost carrier (LCC) Wingo “designed for passengers looking for a simple, no-frills travel option within Central, South America and the Caribbean,” Copa said. Wingo will operate administratively and functionally as a subsidiary of Copa Airlines Colombia (REU). See Wingo.com
News Item A-2: "(LATAM), and Copa (COP) Seek to Get in Front of Latin America’s Low Cost Carrier (LCC) Trend" by Aaron Karp firstname.lastname@example.org, November 22, 2016.
The (LATAM) Airlines Group in revamping its fare structure to offer a basic economy (Y) option on domestic flights and Copa Holdings launching a low-cost carrier (LCC) "Wingo", signal a move toward (LCC) services in Latin America, even among the region’s largest airlines.
(LCC)s have transformed the domestic Mexican market in recent years, and (LCC)s have a strong foothold in the Brazilian market, but the model has not yet caught on in the rest of Latin America. However, that now appears to be changing, particularly in domestic markets and on short-haul flights. (LATAM) (LAN)/(TPR) and Copa (GOP)/(REU) - (Wingo) are trying to get in front of the trend.
“Passengers are looking for a low, low price, as they are in Europe, and that is going to be the fastest growing segment in our region,” (LATAM) (CEO) Enrique Cueto said during the recent Latin American and Caribbean Air Transport Association (ALTA) Airline Leaders Forum in Mexico City. “We cannot let that segment be taken by someone else.”
(LATAM) is not launching a separate (LCC), but in the 1st half of next year it will start rolling out an unbundled fare structure in the 6 domestic markets its affiliates serve (Brazil, Chile, Peru, Argentina, Colombia, and Ecuador). Passengers will be able to choose a basic fare up to -20% lower than current prices, with the option to pay fees for add-ons such as checking baggage or selecting a seat.
Cueto said he expects to see multiple (LCC)s emerging to serve passengers on short-haul routes in Latin America, and (LATAM) decided it was necessary to modify its fare structure to remain competitive on flights of 2 hours or less. He acknowledged that (LATAM)’s costs on most of the short-haul routes will still be +10% to +15% higher than a pure (LCC)’s costs. “That is acceptable because we want to keep business (C) passengers,” he explained.
Though at a cost disadvantage, (LATAM) will have a “revenue advantage” on the short-haul routes and will offer a product that will be cost competitive enough to keep business (C) passengers from switching to (LCC)s and entice leisure passengers to choose (LATAM), Cueto argued. “If business (C) people go to another carrier, you’re doomed,” he said. “The challenge is we want to keep the business (C) passengers, but we will not give up that [LCC] segment.”
Copa (CEO) Pedro Heilbron conceded the decision to launch Wingo, a (LCC) subsidiary of Copa Airlines Colombia (REU) that will start flying December 1, was an uncharacteristic move for him. “Doing this is like if I were to arrive at this event [the annual (ALTA) gathering of Latin American airline executives] with red pants, a yellow checkered shirt and a hat,” the impeccably dressed Heilbron joked.
Wingo will operate 4 Boeing 737-700s configured with 142Y seats in a single-class cabin on point-to-point services to 16 destinations in Latin America and the Caribbean. Wingo is a “tool” to enable Copa (COP)/(REU) to retain passengers on short-haul routes where there is a growing (LCC) presence, Heilbron said. “Wingo doesn’t need to be profitable to be positive for Copa Holdings,” he said. “If they break even, it will be positive for us. Of course, we expect them to be profitable.”
Enrique Beltranena, the (CEO) of Volaris (VLS), the ultra-(LCC) credited with leading the low-fares revolution in Mexico that has moved millions of bus passengers to airlines, said there has been “a transformation of travel needs” in Latin America. Volaris (VLS) will take its model to the Central American market with the launch of Volaris Costa Rica next month. “The proof is here” in Mexico that offering low fares will create new air travelers in Latin America, Beltranena said. “I believe we have proven [the model] and we can do something similar in the Central American region.”
However, he cautioned that the low cost carrier (LCC) model has its limits, predicting that traditional service will continue to be the norm on long-haul routes within Latin America and to/from Latin America. “I don’t fully understand the virtues of a long-haul (LCC)" Beltranena said. “I do not understand the model for long-range flights.”
Aeromexico (AMX) (CEO) Andrés Conesa said that once passengers get accustomed to air travel, they may eventually migrate to long-haul services on more traditional carriers. “These passengers that used to travel by bus are flying with (LCC)s, but in the future they may be flying with us,” he said.
May 2017: News Item A-1: (Copa) Holdings reported $102.3 million net profit for the 1st quarter of 2017, down -11.4% from +$115.5 million net income for (1Q) 2016.
(Copa) Holdings (the parent company of Panama’s (Copa) Airlines (COP) and (Copa) Airlines Colombia (REU)) said the 1st-quarter results reflect improving demand trends combined with continued cost discipline. (Copa) Holdings said higher load factors and yields were behind revenue growth and margin expansion seen during the quarter, as compared to (1Q) 2016.
(COP)’s 1st-quarter revenue increased +10.6% year-over-year (YOY) to $616.7 million, versus $557.5 million a year ago. Operating expenses were up +7.8% to $499.2 million as fuel and personnel expenses rose +12.9% and +8.2% respectively, (YOY).
Operating income for the quarter was +$117.5 million, up +24.4% over +$94.5 million in (1Q) 2016, which (Copa) Holdings attributed to a +4.3% increase in capacity and a +6% increase in (RASM). Copa’s operating margin for the quarter was 19.1%, up +2.1 points (YOY).
(Copa)’s consolidated 1st-quarter traffic increased +9.9% to 4.7 billion (RPM)s as capacity grew +4.3% to 5.8 billion (ASM)s, resulting in a load factor of 81.5% LF, up +4.1% points. Yield was up 0.9% (YOY) to 12.7 cents.
As of March 31, (Copa)’s fleet totaled 101 aircraft comprising 66 Boeing 737-800s, 14 737-700s and 21 Embraer E190s. (Copa) took delivery of 2 737-800s during the quarter.
Looking ahead, (Copa) raised its consolidated capacity guidance for 2017 by a full percentage point, saying it is now expected to grow approximately +7% primarily from higher aircraft utilization. (Copa)’s full-year 2017 operating margin guidance was unchanged, and is expected to be towards the high end of its 15% to 17% guidance range, (Copa) said. (Copa)’s guidance for 2017 includes an expected load factor of approximately 81% LF, (RASM) at 10.4 cents; (CASM) ex-fuel at 6.4 cents and an estimated jet fuel price of $1.75 per gallon.
News Item A-2: Latest code share partner for Copa Airlines (COP) is Turkish Airlines (THY), a fellow Star (SAL) Alliance member now flying to Panama.
(THY) will place its TK designator code on Copa (COP) flights between Panama City and David (Panama); Porto Alegre, Rio de Janeiro, Manaus, Belo Horizonte and Sao Paulo (Brazil); Santo Domingo and Punta Cana (Dominican Republic); Guayaquil and Quito (Ecuador); San Salvador (El Salvador); Asuncion (Paraguay); Lima (Peru).
(COP) will place its CM designator code on (THY) flights between its strategic Hub of the Americas Panama City and Istanbul Atatürk. (THY)
will also place its code on Copa (COP) flights to Cancun, Mexico City and Guadalajara (Mexico); Managua (Nicaragua); San Jose (Costa Rica) and Montevideo (Uruguay).
(COP) (CEO) Pedro Heilbron said the agreement “has great importance since it contributes to strengthen the connectivity between Latin America with Istanbul and the rest of Europe.” (COP) said it offers connection to 74 destinations in the Americas and the Caribbean via Panama City.
March 2018: Wingo, the Colombia-based ultra-low cost carrier (LCC) affiliate of Panama’s Copa Airlines (COP) that launched in late 2016, has “surpassed all expectations,” although it has not yet become profitable, Copa Airlines (CEO) Pedro Heilbron said. Speaking at the US Chamber of Commerce Aviation Summit in Washington DC, Heilbron noted that Wingo is “more of a planning and marketing organization” than an airline because (COP)/(REU) operates the (ULCC)’s fleet of 4 Boeing 737-700s.
November 2018: "Copa (3Q) Net Profit Down -55% as Expenses Climb" by
Ben Goldstein (Ben.Goldstein@aviationweek.com), November 16, 2018.
Copa Holdings posted a 3rd-quarter (3Q) net profit of +$57.7 million, down -55% from the same period last year (the result of rising fuel costs and weakened currencies in Brazil and Argentina).
Copa (COP) is the parent of Copa Airlines (COP) and Copa Airlines Colombia (REU). The company also operates "Wingo"-branded ultra-(LCC) flights out of Colombia.
The company reported $672.4 million in total revenue for the quarter, up +2.1% year-over-year (YOY) on capacity growth of +6.6%. Expenses were up +11.2% to $598.1 million, driven by a +39.2% jump in fuel costs from the same period last year. (CASM) increased +4.3%, leading to a 4.8% slide in (PRASM) compared to (3Q) 2017. Passenger yield declined -3.3%.
(COP)’s operating income for the quarter was $74.3 million, a -38.4% decrease from the year-earlier period. (COP)’s operating margin was 11%, compared to 18.3% a year ago. “We were not able to compensate for the additional fuel expense in the 3rd quarter. We firmly believe this is a temporary situation and are confident in the long-term value and potential of this market, the strength of our business model and our ability to return to higher margins,” (CEO) Pedro Heilbron said during the company’s November 15 earnings call.
The Argentine peso lost half its value against the US dollar in the 3rd quarter, and the Brazilian real tumbled against the dollar by 22%.
“We know from experience that Argentina always comes back. So we are optimistic, medium and long-term, but right now the yield environment is extremely difficult in Argentina,” Heilbron said. “More recently, we’re seeing demand in terms of load factor coming back and actually looking quite OK, even year-over-year, but yields are still extremely weak.” (COP) adjusted its full-year 2018 guidance, lowering the expected operating margin by 3 points to 12%, while maintaining capacity growth at approximately 8%.
(COP)'s 1st Boeing 737 MAX 9 was delivered in August, followed by 2 more in October and November. (COP) expects to receive 2 more in the 4th quarter to finish the year with a consolidated fleet of 106 aircraft.
(COP) also plans to reduce the size of its Embraer (EMB) fleet, having signed a letter of intent with Azzora Aviation for the sale of up to 6 aircraft, 5 of which are scheduled to be delivered in 2019. That transaction will generate a one-time non-cash adjustment of around $163 million that will be recorded in (4Q) 2018.​
Heilbron said negotiations with United Airlines (UAL) and Colombian carrier Avianca (AVI) about forming a joint business agreement had not yet concluded, adding that he was hopeful they would wrap up by year’s end. He predicted the deal would likely not be approved in Panama, Colombia and the USA until the end of 2020, at the earliest.
Click below for photos:
REU-727-200 - 2012-02
REU-737-700 - Wingo - 2016-12.jpg
REU-737-700 WINGO 2018-02.jpg
REU-MD-80 - 2012-02
0 727-46 (JT8D-9A) (254-18879, /66 HK-3841X; 378-19281, /67 N281ZV), (ANC) LEASED 1997-02, 2 RETIRED. 119Y.
1 +3 ORDERS 737-7V3(WL) (CFM56-7B) LEASED TO "WINGO 2016-12, WITH WINGLETS. 142Y.
0 DC-9-31 (JT8D-7B HK) (603-47526, /70 HK-4230X), (SPR) LEASED 2001-08, (444-47401) RETURNED 2002-12. 47526 BROKEN UP AT BOGOTA 2004-11. 105Y.
0 DC-9-31 (JT8D-9A) (407-47330, /68 HK-4084X), FINANCE AEREOS INTERNATIONAL LEASED 1996-07. 47330 BROKEN UP AT BOGOTA 2004-11. 105Y.
0 DC-9-32 (JT8D-17A) (398-47311, /68 HK-3928X "MIGUEL ANGEL"), 47231; & 47519; PARTED OUT. 107Y.
0 DC-9-32 (JT8D-15) (544-47437, /69 HK-3963X; 537-47434, /69 HK-3964X), FINANCE AEREOS INTERNATIONAL LEASED 1994-12. 47434 BROKEN UP AT BOGOTA 2004-11. 107Y.
0 DC-9-32 (JT8D-15 HK) (632-47524, /71 HK-4155X), (TIA) LEASED 1998-08, 107Y.
0 MD-81 (JT8D-217C) (981-48008, /81 HK-4237X; 985-48009, /81 HK-4238X), EX-(SAS), (GRB) LEASED 2001-11. RETURNED. 162Y.
0 MD-81 (938-48002, /80 HK-4265X; 950-48004, /80 HK-4255X; 957-48005, /81 HK-4259X), EX-(SAS), (GRB) LEASED 2002-07, RETURNED. 162Y.
0 MD-82 (JT8D-217C) (1083-49103). RETIRED. 162Y.
0 MD-82 (2107-53231, HK-4395X), EX-(ALI), (TBC) LEASED 2005-06. RETURNED. 162Y.
0 MD-83 (JT8D-219) (1784-49937, /90 HK-4410), (GEF) LEASED 2002-11. RETURNED. 162Y.
0 MD-83 (JT8D-219) (1788-49940, /90 VP-BGI), (DEA) LEASED 2004-01. RETURNED. 162Y.
0 MD-83 (JT8D-219) (1668-49968), (IAIVI) LEASED 2003-12. RETURNED. 162Y.
18 +7 OPTIONS EMBRAER E190 (CF34) (00061, HK-4454-X, 2006-12; 00063, HK-4453-X, 2007-01; 00076, HK-4455-X, 2007-03, W/O 2007-07 - - SEE ATTACHED PHOTO - - "REU-2007-07 INCDT;" 0110, HK-4506-X, 2007-09; H0119, HK-4507-X, 2007-09; 0122, HK-4507X, 2007-10; 0138, HK-4508X, 2007-12), 3 (GEF) LEASED. 108Y.
Click below for photos:
REU-1-Eduardo Lombana 2018-07.jpg
PEDRO HEILBRON, CHIEF EXECUTIVE OFFICER (CEO) COPA AIRLINES (COP).
EDUARDO LOMBANA, PRESIDENT, COPA AIRLINES COLOMBIA (REU).
Eduardo was recently VP Operations and VP Maintenance at Copa Airlines Colombia (REU). He has worked for >30 years in the aviation industry in positions that range from Maintenance & Engineering to Flight Operations and Corporate Planning at Avianca (AVI), Aces (ACE) and Copa Airlines (COP).
He has a Bachelor of Science degree in Aviation Technology from Embry Riddle Aeronautical University and is a licensed and active Embraer E190 pilot (FC).
GUILLERMO ALONSO, GENERAL MANAGER.
JOSE MONTERO, CHIEF FINANCIAL OFFICER (CFO), PARENT, COPA HOLDINGS (2013-03).
CARLOS GUERIN, VP FINANCE.
JAIME ABRE BORRERO, VP COMMERCIAL.
CAPTAIN RICARDO MUNOZ, DIRECTOR FLIGHT OPERATIONS (email@example.com).
CAPTAIN PEDRO GIRALDO, DIRECTOR FLIGHT SAFETY
ALVARO PEDROCHE, TECHNICAL ADVISOR (2000-06).
LUIS EDUARDO ALBARRACIN, MANAGER QUALITY CONTROL (QC) (1999-12).
GUILLERMO LANCHEROS, TECHNICAL MANAGER, EX-(ACE)
CARLOS MUNOZ, MANAGER QUALITY ASSURANCE (QA) (2000-11).
FERNANDO REYES SEGURA, MAINTENANCE MANAGER.