Copa Holdings (NYSE: CPA) reported a record net profit of $212 million or $5.16 per share for Q1 2023, marking a 20.5% year-over-year increase. The airline’s operating profit stood at $258 million, yielding an operating margin of 24.6%, attributed to a 15% rise in passenger traffic and a 14% increase in capacity, with a load factor of 87.2%. However, the company warned that rising jet fuel prices, which increased 7.5% to $2.73 per gallon, will impact Q2 expectations, projecting operating margins between 8% to 12%.
Copa ended Q1 with approximately $1.5 billion in cash and investments, representing 40% of its last-12-month revenue, and maintained a total debt of $2.4 billion. For the full year, the airline anticipates a capacity growth of 11% to 13% and expects to recover possibly up to 100% of the increased fuel expenses by year-end. The airline also resumed service to multiple cities in Venezuela and plans fleet expansions with new Boeing 737 MAX aircraft deliveries scheduled between 2030 and 2034.
The board declared a quarterly dividend of $1.71 per share, payable on June 15, and reported $45 million in share repurchases during the quarter, amounting to about 1% of total outstanding shares.
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