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Copa Holdings (CPA) Q2 Earnings Top, 2024 Outlook Updated
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Copa Holdings, S.A. (CPA - Free Report) second-quarter 2024 earnings per share of $2.88 surpassed the Zacks Consensus Estimate of $2.77 but declined 26.5% year over year. Revenues of $819.4 million lagged the Zacks Consensus Estimate of $841 million but rose 1.3% year over year on the back of upbeat passenger revenues.
Passenger revenues (which contributed 95.4% to the top line) increased 1% from second-quarter 2023, owing to a 10.6% year-over-year increase in passenger traffic, partly offset by an 8.7% decrease in passenger yield. Cargo and mail revenues grew 5.4% to $25.18 million due to higher volumes, partly offset by lower cargo yields. Other operating revenues were $12.72 million, up 10.4% year over year due to higher ConnectMiles revenues from non-air partners.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Operating margin declined 4.6 percentage points from the year-ago quarter.
On a consolidated basis, Copa Holdings traffic (measured in revenue passenger miles) grew 10.6% year over year, and capacity (measured in available seat miles) increased 9.7% from the year-ago quarter. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) increased 0.7 percentage points to 86.8% in the reported quarter.
Passenger revenue per available seat miles decreased 7.9% year over year to 10.5 cents. Additionally, revenue per available seat mile (RASM) declined 7.7% to 11 cents. Cost per available seat mile dipped 2.1%. Excluding fuel, the metric fell 5.8%. The average fuel price per gallon grew 5.2% to $2.79.
Total operating expenses increased 7.4% year over year to $659.9 million, owing to higher capacity, offset by lower maintenance, materials and repair costs, and sales and distribution costs. Fuel costs rose 14.9% year over year. Expenses on wages, salaries, benefits, and other employee expenses rose 8.6% year over year. Sales and distribution costs decreased 7.8% year over year. Passenger servicing costs grew 28.5% from the year-ago quarter. Flight operation costs increased 27.6% from the second quarter of 2023.
Copa Holdings exited the second quarter with cash and cash equivalents of $200.64 million compared with $170.52 million at the prior-quarter end. Total debt, including lease liabilities, was $1.8 billion compared with $1.7 billion at the first-quarter end.
CPA ended the second quarter with a consolidated fleet of 109 aircraft, which comprises 67 Boeing 737-800s, 32 Boeing 737 MAX 9s, nine Boeing 737-700s and one Boeing 737-800 freighter.
2024 Outlook
CPA’s management now expects consolidated capacity to grow 9% (prior view: 10%) year over year. RASM is now expected to be 11.5 cents (prior view: 12 cents).
The load factor is now expected to be 86.5% (prior view: 87%). Management anticipates an operating margin of 21%-23%.
Non-fuel unit costs are anticipated to be 5.9 cents. Fuel cost is expected to be $2.70 per gallon, down from prior guidance of $2.85.
Copa Holdings expects to end 2024 with 112 aircraft.
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
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Copa Holdings (CPA) Q2 Earnings Top, 2024 Outlook Updated
Copa Holdings, S.A. (CPA - Free Report) second-quarter 2024 earnings per share of $2.88 surpassed the Zacks Consensus Estimate of $2.77 but declined 26.5% year over year. Revenues of $819.4 million lagged the Zacks Consensus Estimate of $841 million but rose 1.3% year over year on the back of upbeat passenger revenues.
Passenger revenues (which contributed 95.4% to the top line) increased 1% from second-quarter 2023, owing to a 10.6% year-over-year increase in passenger traffic, partly offset by an 8.7% decrease in passenger yield. Cargo and mail revenues grew 5.4% to $25.18 million due to higher volumes, partly offset by lower cargo yields. Other operating revenues were $12.72 million, up 10.4% year over year due to higher ConnectMiles revenues from non-air partners.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Copa Holdings, S.A. price-consensus-eps-surprise-chart | Copa Holdings, S.A. Quote
Operating margin declined 4.6 percentage points from the year-ago quarter.
On a consolidated basis, Copa Holdings traffic (measured in revenue passenger miles) grew 10.6% year over year, and capacity (measured in available seat miles) increased 9.7% from the year-ago quarter. With traffic growth outpacing capacity expansion, the load factor (percentage of seats filled by passengers) increased 0.7 percentage points to 86.8% in the reported quarter.
Passenger revenue per available seat miles decreased 7.9% year over year to 10.5 cents. Additionally, revenue per available seat mile (RASM) declined 7.7% to 11 cents. Cost per available seat mile dipped 2.1%. Excluding fuel, the metric fell 5.8%. The average fuel price per gallon grew 5.2% to $2.79.
Total operating expenses increased 7.4% year over year to $659.9 million, owing to higher capacity, offset by lower maintenance, materials and repair costs, and sales and distribution costs. Fuel costs rose 14.9% year over year. Expenses on wages, salaries, benefits, and other employee expenses rose 8.6% year over year. Sales and distribution costs decreased 7.8% year over year. Passenger servicing costs grew 28.5% from the year-ago quarter. Flight operation costs increased 27.6% from the second quarter of 2023.
Copa Holdings exited the second quarter with cash and cash equivalents of $200.64 million compared with $170.52 million at the prior-quarter end. Total debt, including lease liabilities, was $1.8 billion compared with $1.7 billion at the first-quarter end.
CPA ended the second quarter with a consolidated fleet of 109 aircraft, which comprises 67 Boeing 737-800s, 32 Boeing 737 MAX 9s, nine Boeing 737-700s and one Boeing 737-800 freighter.
2024 Outlook
CPA’s management now expects consolidated capacity to grow 9% (prior view: 10%) year over year. RASM is now expected to be 11.5 cents (prior view: 12 cents).
The load factor is now expected to be 86.5% (prior view: 87%). Management anticipates an operating margin of 21%-23%.
Non-fuel unit costs are anticipated to be 5.9 cents. Fuel cost is expected to be $2.70 per gallon, down from prior guidance of $2.85.
Copa Holdings expects to end 2024 with 112 aircraft.
Zacks Rank
Currently, CPA carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.