Copa Holdings (CPA) Q4 2023 earnings summary

Executive summary

• Q4 net income was $191.8M, or $4.55/share; excluding a $3.4M investment mark-to-market gain, adjusted net income was $188.4M, or $4.47/share.

• FY23 net income was $518.2M, or $12.89/share; adjusted net income was $675.1M, or $16.79/share, versus $335.4M and $8.26/share in FY22.

• FY23 operating profit reached $811.8M at a 23.5% margin, versus adjusted operating profit of $450.4M and a 15.2% margin in FY22.

Financial highlights

• Q4 operating revenue rose 3.0% YoY to $916.9M, while operating expenses increased 4.0% to $698.1M; operating profit was $218.9M.

• FY23 operating revenue was $3.461B, up 16.7% YoY; operating profit was $811.8M and net profit was $518.2M.

• FY23 operating cash flow was $1.021B; investing cash outflow was $543.0M and financing cash outflow was $394.0M.

Outlook and guidance

• FY24 capacity is expected to grow ~10% YoY, with operating margin guided to 21%–23%; capacity growth is preliminary and subject to aircraft delivery schedules.

• Guidance assumptions include 86%–87% load factor, RASM of ~12.2 cents, ex-fuel CASM of 6.0 cents, and all-in fuel at $2.85/gallon.

• FY24 guidance incorporates the Jan. 6–29 grounding of 21 MAX 9 aircraft and estimated full-year capacity effects from the grounding and further delivery delays.