Copa Holdings Reports Net Income of US$86.6 Million for the Fourth Quarter of 2012 and US$326.5 Million for Full Year 2012

Wed Feb 6, 2013 4:05pm EST

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PANAMA CITY,  Feb. 6, 2013  /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA),
today announced financial results for the fourth quarter of 2012 (4Q12) and full
year 2012. The terms "Copa Holdings" or "the Company" refers 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 fourth quarter of 2011 (4Q11).

OPERATING AND FINANCIAL HIGHLIGHTS

* Copa Holdings reported net income of  US$86.6 million  for 4Q12 or earnings
per share (EPS) of  US$1.95, as compared to net income of  US$104.4 million  or
EPS of  US$2.36  in 4Q11.  Excluding special items, Copa Holdings reported an
adjusted net income of  US$89.3 million  or adjusted EPS of  $2.01, compared to
adjusted net income of  US$85.3 million  or adjusted EPS of  $1.93  in 4Q11.   
* Net income for full year 2012 reached  US$326.5 million  or EPS of  US$7.35,
compared to  US$310.4 million  or EPS of  US$6.98  for full year 2011. 
Excluding special items, however, Copa Holdings would have reported an adjusted
net income of  US$336.1 million  or EPS of  US$7.57, compared to adjusted net
income of  US$314.1  or adjusted EPS of  $7.06  for full year 2011.  
* Operating income for 4Q12 came in at  US$104.3 million, representing a 6.5%
decline from operating income of  US$111.5 million  in 4Q11, mainly as a result
of a 3.7% drop in unit operating revenue per available seat mile (RASM) and a
6.3% increase in the all-in price of jet fuel.  As a result, operating margin
for 4Q12 came in at 17.4%, or 4.5 percentage points below 4Q11.   
* The Company reported operating income of  US$402.5 million  for full year
2012, representing an increase of 4.6% over operating income of  US$385.0
million  in 2011.  Operating margin for full year 2012 came in at 17.9%, as
compared to an operating margin of 21.0% in 2011.  
* Total revenues for 4Q12 increased 17.7% to  US$599.8 million. Yield per
passenger mile decreased 4.1% to  17.1 cents  and RASM came in at  13.5 cents,
or 3.7% below 4Q11.  However, on a quarter over quarter basis, both yields and
RASM remained relatively flat over our third quarter high season, declining only
0.9% and 0.2%, respectively.   
* For 4Q12 consolidated passenger traffic grew 23.7%, led by international
traffic growth which expanded a robust 26.0%.  At the same time, consolidated
capacity grew 22.3%, led by a 24.4% increase in international capacity.  As a
result, consolidated load factor for the quarter increased 0.8 percentage points
to 75.7%.  For full year 2012, consolidated load factor came in at 75.4%, down
0.9 percentage points from 2011, on 24.1% capacity growth.   
* Operating cost per available seat mile (CASM) increased 1.8%, from  11.0 cents
 in 4Q11 to  11.1 cents  in 4Q12 as a result of an increase in the all-in price
of jet fuel.  However, CASM excluding fuel cost decreased 1.3% from  6.9 cents 
in 4Q11 to  6.8 cents  in 4Q12, as a result of lower labor, maintenance and
distribution unit costs, which were partly offset mainly by higher passenger
servicing costs and other administrative expenses.  
* Cash, short term and long term investments ended 2012 at  US$720.5 million,
representing 32% of the last twelve months' revenues.   
* During the fourth quarter, Copa Airlines took delivery of two Boeing 737-800s
and returned one leased Boeing 737-800 aircraft.  As a result, Copa Holdings
ended the year with a consolidated fleet of 83 aircraft, composed of 18 Boeing
737-700s, 39 Boeing 737-800s and 26 Embraer-190s.  
* During the fourth quarter, Copa Holdings and Boeing agreed to reschedule four
future B737-800 aircraft deliveries (2 firm and 2 options).  As a result, the
company now has eight firm deliveries of Boeing 737-800 aircraft and four lease
expirations of B737-700 aircraft for 2014.  
* For 2012, Copa Holdings reported on-time performance of 85.5% and a
flight-completion factor of 99.6%, maintaining its position among the best in
the industry.

Subsequent Events

* In  January 2013, Copa Holdings completed the sale-leaseback of eight Boeing
737-800 aircraft, four of which involve 2013 deliveries and four involving 2014
deliveries.  The sale-leaseback transactions for the 2013 deliveries were closed
with MC Aviation Partners, the aircraft leasing arm of Mitsubishi Corporation,
and the sale-leaseback transactions for the 2014 deliveries were closed with
SMBC Aviation Capital.  
* Effective  March 15, 2013, and after 17 years of valuable service, Copa
Holdings' CFO, Mr.  Victor Vial, will be resigning.  Mr. Vial will continue to
be involved with the company as an advisor to the Board of Directors. The
company is currently undergoing a selection process to appoint a new CFO.

                                                                                                                            
 Consolidated Financial & Operating Highlights  4Q12    Variance vs. 4Q11  Variance vs. 3Q12  FY 2012  Variance vs. 2011    
 Revenue Passengers Carried ('000)              1,899   17.8%              1.6%               7,140    13.5%                
 RPMs (mm)                                      3,366   23.7%              2.2%               12,499   22.6%                
 ASMs (mm)                                      4,447   22.3%              1.8%               16,567   24.1%                
 Load Factor                                    75.7%   0.8p.p.            0.4%               75.4%    -0.9p.p.             
 Yield                                          17.1    -4.1%              -0.9%              17.3     1.0%                 
 PRASM (US$ Cents)                              12.9    -3.0%              -0.5%              13.1     -0.2%                
 RASM (US$ Cents)                               13.5    -3.7%              -0.2%              13.6     -1.0%                
 CASM (US$ Cents)                               11.1    1.8%               2.2%               11.1     2.9%                 
 CASM Excl. Fuel (US$ Cents)                    6.8     -1.3%              2.1%               6.8      0.5%                 
 Breakeven Load Factor  (1)                     61.6%   2.6p.p.            1.8p.p.            61.3%    1.4p.p.              
 Fuel Gallons Consumed (Millions)               58.4    23.3%              1.3%               219.5    24.4%                
 Avg. Price Per Fuel Gallon (US$ Dollars)       3.34    6.3%               3.0%               3.31     6.6%                 
 Average Length of Haul (Miles)                 1,772   5.0%               0.6%               1,751    8.0%                 
 Average Stage Length (Miles)                   1,090   2.2%               0.6%               1,076    5.8%                 
 Departures                                     29,555  15.9%              0.7%               112,551  12.7%                
 Block Hours                                    83,146  21.4%              1.3%               313,321  22.6%                
 Average Aircraft Utilization (Hours)           11.0    5.4%               -1.7%              10.9     4.4%                 
 Operating Revenues (US$ mm)                    599.8   17.7%              1.6%               2,249.4  22.9%                
 Operating Income (US$ mm)                      104.3   -6.5%              -8.6%              402.5    4.6%                 
 Operating Margin                               17.4%   -4.5p.p.           -1.9p.p.           17.9%    -3.1p.p.             
 Net Income (US$ mm)                            86.6    -17.0%             -22.6%             326.5    5.2%                 
 Adjusted Net Income (US$ mm)  (1)              89.3    4.7%               -8.5%              336.1    7.0%                 
 EPS - Basic and Diluted (US$)                  1.95    -17.2%             -22.6%             7.35     5.4%                 
 Adjusted EPS - Basic and Diluted (US$)  (1)    2.01    4.4%               -8.6%              7.57     7.2%                 
 # of Shares - Basic and Diluted ('000)         44,409  0.2%               0.0%               44,400   -0.2%                


(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 4Q12, 4Q11,
and 3Q12 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 4Q12 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: 
http://investor.shareholder.com/copa/results.cfm

4Q12 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

 Date:                         February 7, 2013                                         
 Time:                         11:00 AM US ET (11:00 AM 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     %         Unaudited     Audited       %       
                                                 4Q12                4Q11          Change    3Q12          Change    2012          2011          Change  
 Operating Revenues                                                                                                                                      
 Passenger Revenue                               575,731             485,324       18.6%     568,564       1.3%      2,163,136     1,747,102     23.8%   
 Cargo, mail and other                           24,109              24,125        -0.1%     21,884        10.2%     86,252        83,819        2.9%    
 Total Operating Revenue                         599,839             509,449       17.7%     590,448       1.6%      2,249,388     1,830,921     22.9%   
                                                                                                                                                         
 Operating Expenses                                                                                                                                      
 Aircraft fuel                                   194,754             148,678       31.0%     186,844       4.2%      725,763       547,221       32.6%   
 Salaries and benefits                           65,782              57,854        13.7%     62,964        4.5%      247,405       213,094       16.1%   
 Passenger servicing                             59,788              45,903        30.2%     56,973        4.9%      217,137       160,725       35.1%   
 Commissions                                     22,382              19,750        13.3%     23,501        -4.8%     89,378        72,947        22.5%   
 Reservations and sales                          22,112              18,813        17.5%     22,203        -0.4%     84,992        70,363        20.8%   
 Maintenance, material and repairs               24,311              22,323        8.9%      23,370        4.0%      92,166        70,969        29.9%   
 Depreciation                                    24,446              19,727        23.9%     23,031        6.1%      89,217        75,458        18.2%   
 Flight operations                               27,747              22,251        24.7%     27,217        1.9%      104,993       83,782        25.3%   
 Aircraft rentals                                19,472              15,573        25.0%     18,504        5.2%      72,468        51,259        41.4%   
 Landing fees and other rentals                  12,266              10,388        18.1%     12,190        0.6%      46,233        41,881        10.4%   
 Other                                           22,510              16,684        34.9%     19,561        15.1%     77,101        58,237        32.4%   
 Total Operating Expense                         495,570             397,943       24.5%     476,359       4.0%      1,846,852     1,445,936     27.7%   
                                                                                                                                                         
 Operating Income                                104,269             111,506       -6.5%     114,089       -8.6%     402,535       384,985       4.6%    
                                                                                                                                                         
 Non-operating Income (Expense):                                                                                                                         
 Interest expense                                (8,130)             (8,808)       -7.7%     (8,124)       0.1%      (32,795)      (32,680)      0.4%    
 Interest income                                 3,427               2,152         59.2%     3,235         5.9%      11,689        6,774         72.6%   
 Other, net                                      (2,721)             11,605        nm        13,750        nm        (15,086)      (13,068)      15.4%   
 Total Non-Operating Income/(Expense)            (7,424)             4,950         nm        8,861         nm        (36,192)      (38,974)      -7.1%   
                                                                                                                                                         
 Income before Income Taxes                      96,845              116,456       -16.8%    122,951       -21.2%    366,343       346,011       5.9%    
                                                                                                                                                         
 Provision for Income Taxes                      10,222              12,073        -15.3%    11,033        -7.4%     39,867        35,586        12.0%   
                                                                                                                                                         
 Net Income                                      86,623              104,383       -17.0%    111,917       -22.6%    326,476       310,425       5.2%    
                                                                                                                                                         
 EPS - Basic and Diluted                         1.95                2.36          -17.2%    2.52          -22.6%    7.35          6.98          5.4%    
 Shares - Basic and Diluted                      44,409,211          44,314,505    0.2%      44,406,679    0.0%      44,400,224    44,493,779    -0.2%   
                                                                                                                                                         


                                                                                                                              
 Copa Holdings, S.A.                                                                                                          
 Balance Sheet - IFRS                                                                                                         
 (US$ Thousands)                                                     December 31,       September 30,       December 31,      
                                                                     2012               2012                2011              
                                                                     (Unaudited)        (Unaudited)         (Audited)         
                                                                                                                              
 Current Assets:                                                                                                              
 Cash and cash equivalents                                           166,265            $       282,642     $   243,801       
 Short-term investments                                              484,838            441,349             262,345           
 Total cash, cash equivalents and short-term investments             651,103            723,991             506,146           
                                                                                                                              
 Accounts receivable, net of allowance for doubtful accounts         135,207            143,057             142,297           
 Accounts receivable from related parties                            1,129              505                 704               
 Expendable parts and supplies, net of allowance for obsolescence    50,603             51,292              42,382            
 Prepaid expenses                                                    63,120             49,745              40,058            
 Other current assets                                                16,328             17,964              22,655            
 Total Current Assets                                                917,490            986,554             754,242           
                                                                                                                              
 Long-term investments                                               69,445             71,500              104,834           
                                                                                                                              
 Property and Equipment:                                                                                                      
 Owned property and equipment:                                                                                                
 Flight equipment                                                    2,405,346          2,346,637           2,036,983         
 Other equipment                                                     66,330             63,757              67,577            
                                                                     2,471,676          2,410,394           2,104,560         
 Less: Accumulated depreciation                                      (432,589)          (408,965)           (346,656)         
                                                                     2,039,087          2,001,429           1,757,904         
 Purchase deposits for flight equipment                              245,544            163,696             242,287           
 Total Property and Equipment                                        2,284,631          2,165,125           2,000,191         
                                                                                                                              
 Other Assets:                                                                                                                
 Net pension asset                                                   10,009             9,685               8,974             
 Goodwill                                                            27,575             27,081              25,099            
 Intangible asset                                                    59,382             57,537              47,047            
 Other assets                                                        114,933            120,776             125,409           
 Total Other Assets                                                  211,899            215,079             206,529           
 Total Assets                                                        $    3,483,465     $     3,438,258     $   3,065,796     
                                                                                                                              
                                                                                                                              
 LIABILITIES AND SHAREHOLDER'S EQUITY                                                                                         
 Current Liabilities:                                                                                                         
 Current maturities of long-term debt                                $       136,268    $        118,387    $      131,069    
 Accounts payable                                                    104,975            105,609             92,842            
 Accounts payable to related parties                                 20,255             14,765              22,074            
 Air traffic liability                                               382,807            360,223             297,135           
 Taxes and interest payable                                          85,436             86,174              71,223            
 Accrued expenses payable                                            48,047             45,753              30,472            
 Other current liabilities                                           10,902             9,897               13,845            
 Total Current Liabilities                                           788,690            740,808             658,660           
                                                                                                                              
 Non-Current Liabilities:                                                                                                     
 Long-term debt                                                      1,069,836          1,067,549           936,657           
 Post employment benefits liability                                  6,340              6,286               5,847             
 Other long-term liabilities                                         43,726             44,635              44,657            
 Deferred tax liabilities                                            38,329             31,888              30,444            
 Total Non-Current Liabilities                                       1,158,231          1,150,358           1,017,605         
                                                                                                                              
 Total Liabilities                                                   1,946,921          1,891,166           1,676,265         
                                                                                                                              
 Shareholders' Equity:                                                                                                        
 Class A - 33,391,400 shares issued and outstanding                  22,591             22,496              22,495            
 Class B - 10,938,125 shares issued and outstanding                  7,466              7,466               7,466             
 Additional paid in capital                                          40,660             38,977              33,567            
 Retained earnings                                                   1,458,258          1,471,258           1,324,394         
 Accumulated other comprehensive income (loss)                       7,569              6,895               1,609             
 Total Shareholders' Equity                                          1,536,544          1,547,092           1,389,531         
 Total Liabilities and Shareholders' Equity                          $    3,483,465     $     3,438,258     $   3,065,796     
                                                                                                                              
                                                                                                                              


Copa Holdings, S.A.

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                                   4Q12       4Q11        3Q12        2012        2011      
                                                                                                                    
 Net income as Reported                                    $86,623    $104,383    $111,917    $326,476    $310,425  
                                                                                                                    
 Special Items (adjustments):                                                                                       
 Unrealized (gain) loss on fuel hedging instruments (1)    2,673      (19,069)    (14,277)    9,577       3,634     
 Other Special Items, net (2)                              -          -           -                       -         
 Adjusted Net Income                                       $89,296    $85,314     $97,640     $336,053    $314,059  
                                                                                                                    
 Shares used for Computation (in thousands)                                                                         
 Basic and Diluted                                         44,409     44,315      44,407      44,400      44,494    
                                                                                                                    
 Adjusted earnings per share                                                                                        
 Basic and Diluted                                         2.01       1.93        2.20        7.57        7.06      
                                                                                                                    
                                                                                                                    
 Reconciliation Operating Costs per ASM                                                                             
 Excluding Fuel and Special Items                          4Q12       4Q11        3Q12        2012        2011      
                                                                                                                    
 Operating Costs per ASM as Reported                       11.1       10.9        10.9        11.1        10.8      
 Aircraft fuel per ASM                                     (4.4)      (4.1)       (4.3)       (4.4)       (4.1)     
 Operating Costs per ASM excluding fuel                    6.8        6.9         6.6         6.8         6.7       
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    
                                                                                                                    


FOOTNOTES:

(1)     Include unrealized gains resulting from the mark-to-market accounting
for changes in the fair value of fuel hedging instruments.   

SOURCE  Copa Holdings, S.A.


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

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