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Copa Holdings (CPA) Reports Q2 Loss, Tops Revenue Estimates
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Copa Holdings (CPA - Free Report) incurred a loss (excluding $1.04 from non-recurring items) of 38 cents per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.08. In the year-ago quarter, the company reported loss of $2.70. This was the fifth successive quarterly loss incurred by the Panamanian-based carrier. Results were hurt by coronavirus-induced limited flight operations. The company’s flight operations were only 48% of 2019 (pre-pandemic) level in the quarter.
Quarterly revenues of $304.3 million surpassed the Zacks Consensus Estimate of $268.4 million and surged 3.5% year over year.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Below we present all comparisons (in % terms) to second-quarter 2019 (pre-coronavirus levels).
Passenger revenues (contributed 92.4% to the top line) plunged 54.7% to 281.3 million in the second quarter, due to 52.2% less capacity (measured in available seat miles/ASMs).
On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 56.8% and capacity declined 52.2%. As traffic decline was more than the amount of capacity contraction, load factor (% of seats filled with passengers) contracted 8.2 percentage points to 76.9% in the reported quarter. Passenger revenue per available seat miles declined 5.2% to 9.5 cents. Additionally, revenue per available seat (RASM) mile slipped 1.4% to 10.3 cents. Cost per available seat mile (CASM) rose 9.8%. While excluding fuel, the metric surged 22.3%.
Total operating expenses declined 47.5% to $295.5 million, backed by lower passenger servicing and fuel cost. Expenses on fuel fell 60.4% due to reduced fuel consumption (down 55.5% to 35.3 million) and low jet fuel prices ($1.98, down 10.9%). Expenses on passenger servicing declined 70.6%. Moreover, expenses on wages, salaries and other employee benefits fell 49.2% due to reduced payroll expenses, voluntary temporary leaves and less variable compensation provisions. Flight operation cost also plunged 57.2%.
Other Details
Copa Holdings exited the second quarter with cash and cash equivalents of $256.8 million compared with $119.10 million at the end of 2020. Total debt, including lease liabilities, was $1.6 billion at the end of the second quarter. Management stated that the June quarter was the first one since the onset of the pandemic when the company’s operations resulted in cash accretion ($21 million per month on an average).
This Zacks Rank #4 (Sell) company ended the second quarter with a consolidated fleet of 81 aircraft — 68 Boeing 737-800s and 13 Boeing 737 MAX 9s. Additionally, the company sold three Embraer 190 aircraft to a third party as was previously agreed upon. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Outlook
Copa Holdings expects capacity to reach approximately 4.5 billion in the third quarter of 2021. This represents around 70% of third-quarter 2019 levels.
The company anticipates total revenues of $415 million in the quarter, which is 58% of third-quarter 2019 revenues. The estimated figure is above the Zacks Consensus Estimate of $388.7 million for the third quarter.
CASM (excluding fuel) is expected to be at approximately 6.6 cents, which indicates a decline of14% from second-quarter 2021 actuals.
Fuel price per gallon is expected to be at $2.15.
The company expects to be cash neutral for the September-end quarter.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported second-quarter 2021 results.
Delta, carrying a Zacks Rank #3 (Hold), incurred a loss (excluding $2.09 from non-recurring items) of $1.07 per share. The figure was narrower than the Zacks Consensus Estimate of a loss of $1.41. Revenues of $7,126 million were substantially higher than the year-ago quarter’s levels, buoyed by the recent uptick in air-travel demand. The metric also topped the Zacks Consensus Estimate of $6,340.9 million.
Kansas City Southern, carrying a Zacks Rank of 4(Sell), reported second-quarter 2021 earnings (excluding $6.23 from non-recurring items) of $2.06 per share. The figure missed the Zacks Consensus Estimate of $2.16. Quarterly revenues of $749.5 million surpassed the Zacks Consensus Estimate of $733.1 million and increased 36.8% year over year. The upside was driven by 31% rise in overall carload volumes.
J.B. Hunt, a Zacks #3-Ranked player, reported better-than-expected second-quarter 2021 results. Quarterly earnings of $1.61 per share surpassed the Zacks Consensus Estimate of $1.55. Total operating revenues of $2908.4 million outperformed the Zacks Consensus Estimate of $2722 million and rallied 35.5% year over year.
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Copa Holdings (CPA) Reports Q2 Loss, Tops Revenue Estimates
Copa Holdings (CPA - Free Report) incurred a loss (excluding $1.04 from non-recurring items) of 38 cents per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.08. In the year-ago quarter, the company reported loss of $2.70. This was the fifth successive quarterly loss incurred by the Panamanian-based carrier. Results were hurt by coronavirus-induced limited flight operations. The company’s flight operations were only 48% of 2019 (pre-pandemic) level in the quarter.
Quarterly revenues of $304.3 million surpassed the Zacks Consensus Estimate of $268.4 million and surged 3.5% year over year.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Copa Holdings, S.A. price-consensus-eps-surprise-chart | Copa Holdings, S.A. Quote
Operational Statistics
Below we present all comparisons (in % terms) to second-quarter 2019 (pre-coronavirus levels).
Passenger revenues (contributed 92.4% to the top line) plunged 54.7% to 281.3 million in the second quarter, due to 52.2% less capacity (measured in available seat miles/ASMs).
On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 56.8% and capacity declined 52.2%. As traffic decline was more than the amount of capacity contraction, load factor (% of seats filled with passengers) contracted 8.2 percentage points to 76.9% in the reported quarter. Passenger revenue per available seat miles declined 5.2% to 9.5 cents. Additionally, revenue per available seat (RASM) mile slipped 1.4% to 10.3 cents. Cost per available seat mile (CASM) rose 9.8%. While excluding fuel, the metric surged 22.3%.
Total operating expenses declined 47.5% to $295.5 million, backed by lower passenger servicing and fuel cost. Expenses on fuel fell 60.4% due to reduced fuel consumption (down 55.5% to 35.3 million) and low jet fuel prices ($1.98, down 10.9%). Expenses on passenger servicing declined 70.6%. Moreover, expenses on wages, salaries and other employee benefits fell 49.2% due to reduced payroll expenses, voluntary temporary leaves and less variable compensation provisions. Flight operation cost also plunged 57.2%.
Other Details
Copa Holdings exited the second quarter with cash and cash equivalents of $256.8 million compared with $119.10 million at the end of 2020. Total debt, including lease liabilities, was $1.6 billion at the end of the second quarter. Management stated that the June quarter was the first one since the onset of the pandemic when the company’s operations resulted in cash accretion ($21 million per month on an average).
This Zacks Rank #4 (Sell) company ended the second quarter with a consolidated fleet of 81 aircraft — 68 Boeing 737-800s and 13 Boeing 737 MAX 9s. Additionally, the company sold three Embraer 190 aircraft to a third party as was previously agreed upon. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Outlook
Copa Holdings expects capacity to reach approximately 4.5 billion in the third quarter of 2021. This represents around 70% of third-quarter 2019 levels.
The company anticipates total revenues of $415 million in the quarter, which is 58% of third-quarter 2019 revenues. The estimated figure is above the Zacks Consensus Estimate of $388.7 million for the third quarter.
CASM (excluding fuel) is expected to be at approximately 6.6 cents, which indicates a decline of14% from second-quarter 2021 actuals.
Fuel price per gallon is expected to be at $2.15.
The company expects to be cash neutral for the September-end quarter.
Sectorial Snapshot
Within the broader Transportation sector, Delta Air Lines (DAL - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Kansas City Southern recently reported second-quarter 2021 results.
Delta, carrying a Zacks Rank #3 (Hold), incurred a loss (excluding $2.09 from non-recurring items) of $1.07 per share. The figure was narrower than the Zacks Consensus Estimate of a loss of $1.41. Revenues of $7,126 million were substantially higher than the year-ago quarter’s levels, buoyed by the recent uptick in air-travel demand. The metric also topped the Zacks Consensus Estimate of $6,340.9 million.
Kansas City Southern, carrying a Zacks Rank of 4(Sell), reported second-quarter 2021 earnings (excluding $6.23 from non-recurring items) of $2.06 per share. The figure missed the Zacks Consensus Estimate of $2.16. Quarterly revenues of $749.5 million surpassed the Zacks Consensus Estimate of $733.1 million and increased 36.8% year over year. The upside was driven by 31% rise in overall carload volumes.
J.B. Hunt, a Zacks #3-Ranked player, reported better-than-expected second-quarter 2021 results. Quarterly earnings of $1.61 per share surpassed the Zacks Consensus Estimate of $1.55. Total operating revenues of $2908.4 million outperformed the Zacks Consensus Estimate of $2722 million and rallied 35.5% year over year.