Copa Holdings Reports Net Income of US$111.9 Million and EPS of US$2.52 for the Third Quarter of 2012

 Copa Holdings Reports Net Income of US$111.9 Million and EPS of US$2.52 for
                          the Third Quarter of 2012

Excluding special items, adjusted net income came in at $97.6 million, or EPS
of $2.20 per share

PR Newswire

PANAMA CITY, Nov. 7, 2012

PANAMA CITY, Nov. 7, 2012 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA),
today announced financial results for the third quarter of 2012 (3Q12). The
terms "Copa Holdings" or "the Company" refer to the consolidated entity. The
following financial information, unless otherwise indicated, is presented in
accordance with International Financial Reporting Standards (IFRS). See the
accompanying reconciliation of non-IFRS financial information to IFRS
financial information included in financial tables section of this earnings
release. Unless otherwise stated, all comparisons with prior periods refer to
the third quarter of 2011 (3Q11).

OPERATING AND FINANCIAL HIGHLIGHTS

  oCopa Holdings reported net income of US$111.9 million for 3Q12, or diluted
    earnings per share (EPS) of US$2.52. Excluding special items, Copa
    Holdings would have reported adjusted net income of US$97.6 million, or
    US$2.20 per share, an 8.3% increase over adjusted net income of US$90.2
    million and US$2.03 per share for 3Q11.
  oOperating income for 3Q12 came in at US$114.1 million, a 14.9% increase
    over operating income of US$99.3 million in 3Q11. Operating margin for
    the period came in at 19.3%, compared to 20.9% in 3Q11, as a result of a
    1.7% decline in unit revenues and a 0.4% increase in unit cost as a result
    of increased fuel costs.
  oTotal revenues increased 24.5% to US$590.4 million. Yield per passenger
    mile increased 1.1% to 17.3 cents, while operating revenue per available
    seat mile (RASM) decreased 1.7% to 13.5 cents.  However, adjusting for a
    2.7% increase in average length of haul, adjusted yields increased 2.5%
    and adjusted RASM remained flat year over year.
  oFor 3Q12, passenger traffic (RPMs) grew 23.8% on a 26.6% capacity
    expansion, resulting in a consolidated load factor of 75.4% compared to
    77.1% in 3Q11.
  oOperating cost per available seat mile (CASM) came in at 10.9 cents, an
    increase of 0.4% over 3Q11, but 3.4% lower than 2Q12. CASM excluding fuel
    costs came in at 6.6 cents for a decrease of 0.2% over 3Q11 and 3.6% over
    2Q12. 
  oCash, short term and long term investments ended 3Q12 at US$795.5 million,
    representing 37% of the last twelve months' revenues. 
  oDuring the third quarter, Copa Airlines took delivery of two Boeing
    737-800 aircraft. As a result, Copa Holdings ended the quarter with a
    consolidated fleet of 82 aircraft.
  oFor 3Q12, Copa Holdings reported consolidated on-time performance of 87.2%
    and a flight-completion factor of 99.6%.

Consolidated Financial &
Operating Highlights        3Q12     3Q11     % Change    2Q12     % Change
Revenue Passengers Carried
('000)                      1,869    1,551    20.5%       1,658    12.7%
RPMs (mm)                   3,294    2,660    23.8%       2,886    14.1%
ASMs (mm)                   4,367    3,450    26.6%       3,923    11.3%
Load Factor                 75.4%    77.1%    -1.7 p.p.   73.5%    1.9 p.p.
Yield                       17.3     17.1     1.1%        17.2     0.6%
PRASM (US$ Cents)           13.0     13.2     -1.1%       12.6     3.2%
RASM (US$ Cents)            13.5     13.7     -1.7%       13.1     2.8%
CASM (US$ Cents)            10.9     10.9     0.4%        11.3     -3.4%
CASM Excl. Fuel (US$ Cents) 6.6      6.6      -0.2%       6.9      -3.6%
Breakeven Load Factor (1)   59.8%    58.6%    1.2 p.p.    63.0%    -3.2 p.p.
Fuel Gallons Consumed
(Millions)                  57.7     45.3     27.2%       52.1     10.6%
Avg. Price Per Fuel Gallon
(US$ Dollars)               3.24     3.22     0.7%        3.32     -2.5%
Average Length of Haul
(Miles)                     1,763    1,716    2.7%        1,740    1.3%
Average Stage Length
(Miles)                     1,083    1,058    2.3%        1,063    1.9%
Departures                  29,344   24,728   18.7%       27,005   8.7%
Block Hours                 82,103   65,159   26.0%       74,841   9.7%
Average Aircraft
Utilization (Hours)         11.2     10.6     5.5%        10.6     5.5%
Operating Revenues (US$ mm) 590.4    474.3    24.5%       515.8    14.5%
Operating Income (US$ mm)   114.1    99.3     14.9%       72.6     57.1%
Operating Margin            19.3%    20.9%    -1.6 p.p.   14.1%    5.2 p.p.
Net Income (US$ mm)         111.9    70.3     59.1%       32.0     249.7%
Adjusted Net Income (US$
mm) (1)                     97.6     90.2     8.3%        58.6     66.6%
EPS - Basic and Diluted
(US$)                       2.52     1.59     58.8%       0.72     249.3%
Adjusted EPS - Basic and
Diluted (US$) (1)           2.20     2.03     8.1%        1.32     66.4%
# of Shares - Basic and
Diluted ('000)              44,407   44,319   0.2%        44,354   0.1%
(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 3Q12,
3Q11, and 2Q12 exclude non-cash charges/gains associated with the
mark-to-market of fuel hedges.

Note: Attached to this press release is a reconciliation of non-IFRS
financial measures to the comparable IFRS measures.

FULL 3Q12 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
http://investor.shareholder.com/copa/results.cfm

3Q12 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

Date:                         November 8, 2012
Time:                         4:00 PM US ET (4:00 PM Local Time)
Conference telephone number: 877-293-5456 (US Domestic Callers)
                              707-287-9357(International Callers)
Webcast:                      http://investor.shareholder.com/copa/events.cfm
Speakers:                     Pedro Heilbron, Chief Executive Officer
                              Victor Vial, Chief Financial Officer

Copa Holdings is a leading Latin American provider of passenger and cargo
services. The Company, through its operating subsidiaries, provides service
to 64 destinations in 29 countries in North, Central and South America and the
Caribbean with one of the youngest and most modern fleets in the industry,
consisting of 83 aircraft: 57 Boeing 737NG aircraft and 26 EMBRAER-190s. For
more information visit www.copaair.com.

This release includes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on current plans, estimates and expectations, and are not
guarantees of future performance. They are based on management's expectations
that involve a number of business risks and uncertainties, any of which could
cause actual results to differ materially from those expressed in or implied
by the forward-looking statements. The Company undertakes no obligation to
update or revise any forward-looking statement. The risks and uncertainties
relating to the forward-looking statements in this release are among those
disclosed in Copa Holdings' filed disclosure documents and are, therefore,
subject to change without prior notice.

CPA-G

Copa Holdings, S.A.
Income Statement - IFRS
(US$ Thousands)
                           Unaudited   Unaudited   %       Unaudited   %
                           3Q12        3Q11        Change  2Q12        Change
Operating Revenues
Passenger Revenue          568,564     454,078     25.2%   495,029     14.9%
Cargo, mail and other      21,884      20,184      8.4%    20,814      5.1%
Total Operating Revenue    590,448     474,261     24.5%   515,843     14.5%
Operating Expenses
Aircraft fuel              186,844     145,860     28.1%   173,289     7.8%
Salaries and benefits      62,964      54,199      16.2%   61,123      3.0%
Passenger servicing        56,973      41,095      38.6%   50,943      11.8%
Commissions                23,501      19,297      21.8%   21,272      10.5%
Reservations and sales     22,203      18,680      18.9%   20,586      7.9%
Maintenance, material and
repairs                    23,370      16,391      42.6%   23,954      -2.4%
Depreciation               23,031      19,350      19.0%   21,214      8.6%
Flight operations          27,217      22,111      23.1%   24,991      8.9%
Aircraft rentals           18,504      13,273      39.4%   17,191      7.6%
Landing fees and other
rentals                    12,190      11,069      10.1%   10,931      11.5%
Other                      19,561      13,656      43.2%   17,730      10.3%
Total Operating Expense    476,359     374,979     27.0%   443,224     7.5%
Operating Income           114,089     99,282      14.9%   72,619      57.1%
Non-operating Income
(Expense):
Interest expense           (8,124)     (8,144)     -0.3%   (8,583)     -5.3%
Interest capitalized       0           0           nm      0           nm
Interest income            3,235       1,795       80.3%   2,741       18.0%
Other, net                 13,750      (18,228)    nm      (30,981)    nm
Total Non-Operating
Income/(Expense)           8,861       (24,578)    nm      (36,823)    nm
Income before Income Taxes 122,951     74,705      64.6%   35,796      243.5%
Provision for Income Taxes 11,033      4,374       152.3%  3,790       191.1%
Net Income                 111,917     70,331      59.1%   32,006      249.7%
EPS - Basic and Diluted    2.52        1.59        58.8%   0.72        249.3%
Shares - Basic and Diluted 44,406,679  44,318,760  0.2%    44,353,845  0.1%

Copa Holdings, S.A.
Balance Sheet - IFRS
(US$ Thousands)                         September 30,        December 31,
                                        2012                 2011
                                        (Unaudited)          (Audited)
ASSETS
Current Assets:
Cash and cash equivalents               $     282,642   $    243,801
Short-term investments                  441,349              262,345
Total cash, cash equivalents and
short-term investments                  723,991              506,146
Accounts receivable, net of allowance
for doubtful accounts                   143,057              142,297
Accounts receivable from related
parties                                 505                  704
Expendable parts and supplies, net of
allowance for obsolescence              51,292               42,382
Prepaid expenses                        49,745               40,058
Other current assets                    17,964               22,655
Total Current Assets                    986,554              754,242
Long-term investments                   71,500               104,834
Property and Equipment:
Owned property and equipment:
Flight equipment                        2,346,637            2,036,983
Other equipment                         63,757               67,577
                                        2,410,394            2,104,560
Less: Accumulated depreciation          (408,965)            (346,656)
                                        2,001,429            1,757,904
Purchase deposits for flight equipment  163,696              242,287
Total Property and Equipment            2,165,125            2,000,191
Other Assets:
Net pension asset                       9,685                8,974
Goodwill                                27,081               25,099
Intangible asset                        57,537               47,047
Other assets                            120,776              125,409
Total Other Assets                      215,079              206,529
Total Assets                            $    3,438,258    $   3,065,796
LIABILITIES AND SHAREHOLDER'S EQUITY
Current Liabilities:
Current maturities of long-term debt    $     118,387   $    131,069
Accounts payable                        105,609              92,842
Accounts payable to related parties     14,765               22,074
Air traffic liability                   360,223              297,135
Taxes and interest payable              86,174               71,223
Accrued expenses payable                45,753               30,472
Other current liabilities               9,897                13,845
Total Current Liabilities               740,808              658,660
Non-Current Liabilities:
Long-term debt                          1,067,549            936,657
Post employment benefits liability      6,286                5,847
Other long-term liabilities             44,635               44,657
Deferred tax liabilities                31,888               30,444
Total Non-Current Liabilities           1,150,358            1,017,605
Total Liabilities                       1,891,166            1,676,265
Shareholders' Equity:
Class A - 33,391,400 shares issued and
outstanding                             22,496               22,495
Class B - 10,938,125 shares issued and
outstanding                             7,466                7,466
Additional paid in capital              38,977               33,567
Retained earnings                       1,471,258            1,324,394
Accumulated other comprehensive income
(loss)                                  6,895                1,609
Total Shareholders' Equity              1,547,092            1,389,531
Total Liabilities and Shareholders'
Equity                                  $    3,438,258    $   3,065,796

NON-IFRS FINANCIAL MEASURE RECONCILIATION

This press release includes the following non IFRS financial measures: CASM
Excluding Fuel, Adjusted Net Income and Adjusted EPS.  This supplemental
information is presented because we believe it is a useful indicator of our
operating performance and is useful in comparing our performance with other
companies in the airline industry. These measures should not be considered in
isolation, and should be considered together with comparable IFRS measures, in
particular operating income and net income. The following is a reconciliation
of these non-IFRS financial measures to the comparable IFRS measures:

Reconciliation of Net
Income
Excluding Special Items          3Q12              3Q11            2Q12
Net income as Reported           $111,917          $70,331         $32,006
Special Items
(adjustments):
  Unrealized (gain) loss
on fuel hedging instruments
(1)                              (14,277)          19,845          26,587
Adjusted Net Income              $97,640           $90,177         $58,593
Shares used for Computation
(in thousands)
  Basic and Diluted            44,407            44,319          44,354
Adjusted earnings per share
- Basic and Diluted              2.20              2.03            1.32
Reconciliation Operating
Costs per ASM
Excluding Fuel and Special
Items                            3Q12              3Q11            2Q12
Operating Costs per ASM as
Reported                         10.9              10.9            11.3
Aircraft fuel per ASM            (4.3)             (4.2)           (4.4)
Operating Costs per ASM
excluding fuel                   6.6               6.6             6.9
FOOTNOTES:
(1) Includes unrealized (gains) losses resulting from the mark-to-market
accounting for changes in the fair value of fuel hedging instruments. For
3Q12, the Company recorded an unrealized fuel hedge gain of US$14.3 million,
and for 3Q11 and 2Q12 it recorded fuel hedge losses of US$19.8 million and
26.6 million, respectively..

SOURCE Copa Holdings, S.A.

Website: http://www.copaair.com
Contact: Copa Holdings S.A., Investor Relations, Ph: (507) 304-2677,
www.copaair.com (IR section)