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Copa Reports 3Q Profit; Beats Expectations  
User currently offlineOP3000 From United States of America, joined Jun 2009, 1775 posts, RR: 2
Posted (4 years 11 months 1 week 5 days 6 hours ago) and read 2169 times:

Copa Airlines reported yesterday a quarterly profit of US $43.1 million. With CM, now all publicly-listed Latin American airlines (LAN, JJ, GOL and CM) have reported healthy profits this quarter, in contrast to most of their counterparts around the globe.

CM's results beat analyst expectations, and yields showed healthy gains from last year.

Also included in this press release was the expansion of CM's PTY hub from 22 to 34 gates by the end of 2011, which will provided the needed capacity to continue the airline's successful growth through the hub and spoke model.

http://www.cnbc.com/id/33897101

-- Third quarter 2009 results include a special charge of US$14.6 million related to the accrual of costs associated with the retirement of four MD-80 aircraft as a result of Aero Republica's transition to an all Embraer-190 fleet and a US$5.1 million non-cash gain associated with the mark-to-market of fuel hedge contracts.

-- Operating income for 3Q09 came in at US$45.9 million, representing an operating margin of 14.2%, as compared to operating income for 3Q08 of US$57.1 million.

-- In 3Q09, total revenues reached US$323.7 million, representing a 7.2% decline, on a 10.7% capacity expansion. Yield per passenger mile decreased 14.2% to 15.9 cents and operating revenue per available seat mile (RASM) decreased 16.2% to 12.7 cents.

-- Operating cost per available seat mile (CASM), decreased 14.0% from 12.7 cents in 3Q08 to 10.9 cents in 3Q09.

-- Copa Holdings ended the quarter with a consolidated fleet of 55 aircraft. Copa Airlines' fleet consisted of 43 aircraft, including 28 Boeing 737 Next Generation and 15 Embraer-190's. Aero Republica's fleet consisted of 12 aircraft, including 11 Embraer-190's and one MD-80.

-- For 3Q09, Copa Airlines reported on-time performance of approximately 87.1% and a flight-completion factor of 99.2%, maintaining its position among the best in the industry.

[Edited 2009-11-13 09:33:45]

6 replies: All unread, jump to last
 
User currently offlineLipeGIG From Brazil, joined May 2005, 11442 posts, RR: 58
Reply 1, posted (4 years 11 months 1 week 4 days 19 hours ago) and read 2037 times:
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Quoting OP3000 (Thread starter):
Operating income for 3Q09 came in at US$45.9 million, representing an operating margin of 14.2%, as compared to operating income for 3Q08 of US$57.1 million.

Thanks OP3000.

That's very impressive ! I didn't recall to see any other airline with result as this: 14.2% is a lot for an airline and shows how this airline runs very well it's business.
Keep up the good work !!!!!



New York + Rio de Janeiro = One of the best combinations !
User currently offlineOP3000 From United States of America, joined Jun 2009, 1775 posts, RR: 2
Reply 2, posted (4 years 11 months 1 week 4 days 19 hours ago) and read 2019 times:



Quoting LipeGIG (Reply 1):
That's very impressive ! I didn't recall to see any other airline with result as this: 14.2% is a lot for an airline and shows how this airline runs very well it's business.

Indeed Lipe; they are extremely profitable. I think they have benefited from an under-served region; in the years to come as more capacity enters the system (direct flights between cities that currently have little or no direct service) I think their margins will shrink back to the stratosphere.

The other thing that CM's owners (probably more so than other airlines in the region) benefit from are the parallel businesses they control that feed off of the airline. These include CM's fuel supplier, their main onboard beverage supplier, their principal bank, the real estate firm that leases CM their HQs, and even their outsourced call center provider. All of this has been disclosed for a while in their annual reports. Here is the 2009 version (see page 149):

http://www.annualreports.com/HostedData/AnnualReports/PDF/cpa2008.pdf


User currently offlineLipeGIG From Brazil, joined May 2005, 11442 posts, RR: 58
Reply 3, posted (4 years 11 months 1 week 4 days 19 hours ago) and read 2003 times:
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Quoting OP3000 (Reply 2):
Indeed Lipe; they are extremely profitable. I think they have benefited from an under-served region; in the years to come as more capacity enters the system (direct flights between cities that currently have little or no direct service) I think their margins will shrink back to the stratosphere

That's true, and i believe they can continue to balance so well their destinations as there's a lot of markets they can add in South America, North America and the Caribbean. In Brazil i can see more services to SSA, REC, CWB, POA, FLN, VIX, BSB...and this would need more flights to places like SFO, LAS, IAH, DFW and even more services to MCO, MIA, JFK and LAX.

Quoting OP3000 (Reply 2):
The other thing that CM's owners (probably more so than other airlines in the region) benefit from are the parallel businesses they control that feed off of the airline. These include CM's fuel supplier, their main onboard beverage supplier, their principal bank, the real estate firm that leases CM their HQs, and even their outsourced call center provider. All of this has been disclosed for a while in their annual reports. Here is the 2009 version (see page 149):

Thanks! I was not aware of that. But their business model is fantastic.



New York + Rio de Janeiro = One of the best combinations !
User currently offlineAznMadSci From United States of America, joined Dec 2007, 3679 posts, RR: 6
Reply 4, posted (4 years 11 months 1 week 4 days 18 hours ago) and read 1981 times:



Quoting LipeGIG (Reply 3):
..and this would need more flights to places like SFO, LAS, IAH, DFW

SFO ...  checkmark 

LAS ... is there really a need? I would think MSY before LAS.

IAH ... only if that gentlemen's agreement between CO and CM gets dissolved. You would probably see another daily added by CO from IAH and EWR, and maybe start CLE.

DFW ... maybe. It would definitely be hard for them to compete with TA and AA.



The journey of life is not based on the accomplishments, but the experience.
User currently offlineLuisde8cd From Pitcairn Islands, joined Aug 2004, 2574 posts, RR: 31
Reply 5, posted (4 years 11 months 1 week 4 days 16 hours ago) and read 1959 times:



Quoting LipeGIG (Reply 3):

That's true, and i believe they can continue to balance so well their destinations as there's a lot of markets they can add in South America, North America and the Caribbean. In Brazil i can see more services to SSA, REC, CWB, POA, FLN, VIX, BSB...and this would need more flights to places like SFO, LAS, IAH, DFW and even more services to MCO, MIA, JFK and LAX.

Copa's last important remaining whitespace in its Latin America network is definitely MTY.

Quoting OP3000 (Thread starter):
-- For 3Q09, Copa Airlines reported on-time performance of approximately 87.1% and a flight-completion factor of 99.2%, maintaining its position among the best in the industry.

This measure can be very tricky. CM loves to schedule a block time of 2.5 hrs for a flight with 1:45-2:00hr flight-time. Most of the time if your flight departs ontime, you'll arrive 30min earlier to your destination. This 30-45min buffer allows them plenty of room in order to arrive "on-time". In my personal opinion this is a dirty way of claiming they're always on time...

Saludos,
Luis


User currently offlineLipeGIG From Brazil, joined May 2005, 11442 posts, RR: 58
Reply 6, posted (4 years 11 months 1 week 4 days 16 hours ago) and read 1946 times:
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Quoting AznMadSci (Reply 4):
SFO ...

LAS ... is there really a need? I would think MSY before LAS

MSY is another interesting market, but LAS, for an airline that try to be different, can add some demand from each market. There's no South America-LAS, so i can say its possible to think in 10 passengers from Rio, another 10 from Sao Paulo, 2 from Cordoba, 5 from Lima.. because what CM will offer will be comparable to the legacies.

Quoting AznMadSci (Reply 4):
DFW ... maybe. It would definitely be hard for them to compete with TA and AA.

But that's CM difference, they don't need to fight for DFW market, but they will got a good portion of what they want, and many times is not so big: city pairs not explored by competition



New York + Rio de Janeiro = One of the best combinations !
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