Copa Holdings Reports Net Income of US$113.8 Million and EPS of US$2.56 for the First Quarter of 2013

 Copa Holdings Reports Net Income of US$113.8 Million and EPS of US$2.56 for
                          the First Quarter of 2013

Excluding special items, adjusted net income came in at $124.4 million, or EPS
of $2.80 per share

PR Newswire

PANAMA CITY, May 13, 2013

PANAMA CITY, May 13, 2013 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA),
today announced financial results for the first quarter of 2013(1Q13). 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 first quarter of 2012 (1Q12).

OPERATING AND FINANCIAL HIGHLIGHTS

  oCopa Holdings reported net income of US$113.8 million for 1Q13, or diluted
    earnings per share (EPS) of US$2.56. Excluding special items, Copa
    Holdings would have reported an adjusted net income of $124.4 million, or
    $2.80 per share, a 37.3% increase over adjusted net income of US$90.6
    million and US$2.04 per share for 1Q12.
  oOperating income for 1Q13 came in at US$142.6 million, a 27.9% increase
    over operating income of US$111.6 million in 1Q12. Operating margin for
    the period came in at 22.2%, compared to 20.5% in 1Q12, as a result of
    lower unit costs.
  oTotal revenues increased 18.0% to US$641.3 million. Yield per passenger
    mile decreased 0.8% to 17.6 cents and operating revenue per available seat
    mile (RASM) decreased 1.5% to 14.0 cents. However, adjusting for a 6.3%
    increase in length of haul, yields and RASM increased 2.2% and 1.5%,
    respectively.
  oFor 1Q13, robust demand trends resulted in passenger traffic (RPMs) growth
    of 19.5% on a 19.9% capacity expansion. Consolidated load factor came in
    at 76.9%, or 0.3 percentage points below 1Q12.
  oOperating cost per available seat mile (CASM) decreased 3.6%, from 11.3
    cents in 1Q12 to 10.9 cents in 1Q13. CASM, excluding fuel, decreased 4.7%
    to 6.5 cents.
  oCash, short term and long term investments ended 1Q13 at US$733.4 million,
    representing 31.2% of the last twelve months' revenues.
  oDuring the first quarter, Copa Airlines took delivery of two Boeing
    737-800 aircraft. As a result, Copa Holdings ended the quarter with a
    consolidated fleet of 85 aircraft.
  oFor 1Q13, Copa Holdings reported consolidated on-time performance of 90.0%
    and a flight-completion factor of 99.7%, maintaining its position among
    the best in the industry.



^

Consolidated Financial &              1Q13   1Q12   % Change 4Q12   % Change
Operating Highlights
Revenue Passengers Carried ('000)     1,926  1,714  12.4%     1,899  1.4%
RPMs (mm)                            3,529  2,954  19.5%     3,366  4.8%
ASMs (mm)                            4,590  3,829  19.9%     4,447  3.2%
Load Factor                          76.9%  77.2%  -0.3 p.p. 75.7%  1.2 p.p.
Yield                                 17.6   17.7   -0.8%     17.1   2.8%
PRASM (US$ Cents)                    13.5   13.7   -1.2%     12.9   4.4%
RASM (US$ Cents)                     14.0   14.2   -1.5%     13.5   3.6%
CASM (US$ Cents)                     10.9   11.3   -3.6%     11.1   -2.5%
CASM Excl. Fuel (US$ Cents)          6.5    6.8    -4.7%     6.8    -4.1%
Breakeven Load Factor ^(1)            58.7%  61.2%  -2.5 p.p. 61.6%  -2.9 p.p.
Fuel Gallons Consumed (Millions)     60.1   51.3   17.1%     58.4   2.9%
Avg. Price Per Fuel Gallon (US$       3.34   3.33   0.4%      3.34   0.1%
Dollars)
Average Length of Haul (Miles)        1,832  1,724  6.3%      1,772  3.4%
Average Stage Length (Miles)          1,123  1,066  5.4%      1,090  3.1%
Departures                            29,428 26,647 10.4%     29,555 -0.4%
Block Hours                           84,490 73,394 15.1%     83,146 1.6%
Average Aircraft Utilization (Hours)  11.3   10.9   3.1%      11.0   2.7%
Operating Revenues (US$ mm)          641.3  543.3  18.0%     599.8  6.9%
Operating Income (US$ mm)             142.6  111.6  27.9%     104.3  36.8%
Operating Margin                     22.2%  20.5%  1.7 p.p.  17.4%  4.9 p.p.
Net Income (US$ mm)                   113.8  95.9   18.7%     86.6   31.4%
Adjusted Net Income (US$ mm) ^(1)     124.4  90.6   37.3%     89.3   39.3%
EPS - Basic and Diluted (US$)         2.56   2.16   18.5%     1.95   31.5%
Adjusted EPS - Basic and Diluted      2.80   2.04   37.1%     2.01   39.4%
(US$) ^(1)
# of Shares - Basic and Diluted       44,387 44,341 0.1%      44,409 0.0%
('000)

^(1^) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 1Q13,
1Q12, and 4Q12 exclude non-cash charges/gains associated with the
mark-to-market of fuel hedges. Additionally, for 1Q13 excludes a US$13.9
million charge related to the devaluation of the Venezuelan currency.
Note: Attached to this press release is a reconciliation of non-IFRS financial
measures to the comparable IFRS measures.

FULL 1Q13 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
http://investor.shareholder.com/copa/results.cfm

1Q13 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

Date:                        May 14, 2013
Time:                        11:00 AM US ET (10:00 AM Local Time)
Conference telephone         877-293-5456 (US Domestic Callers)
number:
                             707-287-9357(International Callers)
Webcast:                     http://investor.shareholder.com/copa/events.cfm
Speakers:                    Pedro Heilbron, Chief Executive Officer
                             Jose Montero, 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 86 aircraft: 60 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   %
                           1Q13        1Q12        Change   4Q12        Change
Operating Revenues
Passenger Revenue          620,488     523,812     18.5%    575,731     7.8%
Cargo, mail and other      20,793      19,444      6.9%     24,109      -13.8%
Total Operating Revenue    641,282     543,257     18.0%    599,839     6.9%
Operating Expenses
Aircraft fuel              200,773     170,875     17.5%    194,754     3.1%
Salaries and benefits      66,728      57,536      16.0%    65,782      1.4%
Passenger servicing        60,316      49,433      22.0%    59,788      0.9%
Commissions                24,260      22,223      9.2%     22,382      8.4%
Reservations and sales     21,449      20,090      6.8%     22,112      -3.0%
Maintenance, material and  22,284      20,530      8.5%     24,311      -8.3%
repairs
Depreciation               24,806      20,526      20.9%    24,446      1.5%
Flight operations          29,479      25,039      17.7%    27,747      6.2%
Aircraft rentals           19,952      17,300      15.3%    19,472      2.5%
Landing fees and other     12,195      10,846      12.4%    12,266      -0.6%
rentals
Other                      16,412      17,300      -5.1%    22,510      -27.1%
Total Operating Expense    498,655     431,699     15.5%    495,570     0.6%
Operating Income           142,626     111,558     27.9%    104,269     36.8%
Non-operating Income
(Expense):
Interest expense           (7,660)     (7,959)     -3.7%    (8,130)     -5.8%
Interest capitalized       0           0           nm       0           nm
Interest income            2,706       2,286       18.3%    3,427       -21.0%
Other, net                 (9,195)     4,866       -289.0%  (2,721)     238.0%
Total Non-Operating        (14,150)    (806)       n/a      (7,424)     90.6%
Income/(Expense)
Income before Income Taxes 128,476     110,751     16.0%    96,845      32.7%
Provision for Income Taxes 14,646      14,822      -1.2%    10,222      43.3%
Net Income                 113,830     95,930      18.7%    86,623      31.4%
EPS - Basic and Diluted    2.56        2.16        18.5%    1.95        31.5%
Shares - Basic and Diluted 44,387,148  44,340,562  0.1%     44,409,211  0.0%





Copa Holdings, S.A.
Balance Sheet - IFRS
(US$ Thousands)                             March 31,        December 31,
                                            2013             2012
                                            (Unaudited)    (Audited)
ASSETS
Current Assets:
Cash and cash equivalents                   $   325,184   $     76,094
Short-term investments                      349,628          575,009
Total cash, cash equivalents and            674,812          651,103
short-term investments
Accounts receivable, net of allowance for   174,537          135,207
doubtful accounts
Accounts receivable from related parties    1,121            1,129
Expendable parts and supplies, net of       58,050           50,603
allowance for obsolescence
Prepaid expenses                            56,767           63,120
Other current assets                        19,687           16,328
Total Current Assets                        984,974          917,490
Long-term investments                       58,598           69,445
Property and Equipment:
Owned property and equipment:
Flight equipment                            2,420,436        2,405,346
Other equipment                             68,893           66,330
                                            2,489,329        2,471,676
Less: Accumulated depreciation              (456,281)        (432,589)
                                            2,033,048        2,039,087
Purchase deposits for flight equipment      271,916          245,544
Total Property and Equipment                2,304,964        2,284,631
Other Assets:
Net pension asset                           10,618           10,009
Goodwill                                    26,612           27,575
Intangible asset                            59,127           59,382
Other assets                                122,357          110,968
Total Other Assets                          218,714          207,934
Total Assets                                $  3,567,250    $   3,479,500
LIABILITIES AND SHAREHOLDER'S EQUITY
Current Liabilities:
Current maturities of long-term debt        $   122,414   $    136,268
Accounts payable                            114,498          104,975
Accounts payable to related parties         23,857           20,255
Air traffic liability                       369,286          382,807
Taxes and interest payable                  98,795           85,436
Accrued expenses payable                    46,374           48,047
Other current liabilities                   9,309            10,902
Total Current Liabilities                   784,533          788,690
Non-Current Liabilities:
Long-term debt                              1,038,793        1,069,836
Post employment benefits liability          6,322            6,340
Other long-term liabilities                 46,285           43,726
Deferred tax liabilities                    37,691           34,364
Total Non-Current Liabilities               1,129,091        1,154,266
Total Liabilities                           1,913,624        1,942,956
Shareholders' Equity:
Class A - 33,418,117 shares issued and      22,630           22,591
outstanding
Class B - 10,938,125 shares issued and      7,466            7,466
outstanding
Additional paid in capital                  42,363           40,660
Retained earnings                           1,572,088        1,458,258
Accumulated other comprehensive income      9,078            7,569
(loss)
Total Shareholders' Equity                  1,653,626        1,536,544
Total Liabilities and Shareholders' Equity  $  3,567,250    $   3,479,500

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                             1Q13      1Q12     4Q12
Net income as Reported                              $113,830  $95,930  $86,623
Special Items (adjustments):
 Unrealized (gain) loss on fuel hedging         (3,376)   (5,328)  2,673
instruments
 Loss due to devaluation of Venezuelan Bolivar  13,927
Adjusted Net Income                                 $124,381  $90,602  $89,296
Shares used for Computation (in thousands)
 Basic and Diluted                              44,387    44,341   44,409
Adjusted earnings per share - Basic and Diluted     2.80      2.04     2.01
Reconciliation Operating Costs per ASM
Excluding Fuel and Special Items                    1Q13      1Q12     4Q12
Operating Costs per ASM as Reported                 10.9      11.3     11.1
Aircraft fuel per ASM                               (4.4)     (4.5)    (4.4)
Operating Costs per ASM excluding fuel             6.5       6.8      6.8

SOURCE Copa Holdings, S.A.

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