Copa Holdings, parent of Panama's Copa Airlines and Colombia's AeroRepublica, reported second-quarter net income of $22.9 million, up 51.3% over $15.1 million earned in the year-ago quarter, on a 39.4% jump in revenues to $191.5 million attributable in large part to Copa's acquisition of AeroRepublica last year that also contributed to hefty increases in traffic and capacity (ATWOnline, March 9, 2005).The results continue a string of positive quarters for the company, which produced rising profits in both 2004 and 2005 and record quarterly income in the first quarter (ATWOnline, May 18). They are all the more impressive considering that AeroRepublica lost $7.1 million in the most recent quarter.

"Our Copa segment continues to strengthen," CEO Pedro Heilbron said. He added that AeroRepublica's results, hurt by high fuel prices and "excessive capacity," will improve with seven Embraer 190s set to be delivered over the remainder of 2006 and 2007. "We believe [the second quarter] was the low point," he said. "We expect a much stronger second half."

The Colombian carrier soon will unveil a "new image" to better reflect its connection to Copa, he noted. In addition, daily Bogota-Panama City flights launched Aug. 3 will create new opportunities to link the two networks.

Operating income for the quarter rose 40.3% to $28.5 million as yield increased 9% to 15.8 cents, the fifth consecutive quarter of yield growth, and RASM lifted 8.1% to 11.7 cents. "We expect yields to remain healthy and steady," Heilbron said. Load factor improved 0.5 point to 69.7% as RPMs jumped 29.9% to 1.14 billion and capacity grew 29% to 1.63 billion ASMs. CASM rose 8% to 10 cents but CASM excluding fuel was unchanged at 6.7 cents.

Copa's network continues to grow, with Manaus, Santiago de los Caballeros, Maracaibo, San Pedro Sula and Montevideo added in the past five weeks to bring to 35 the number of destinations served. It said yesterday that it will launch five-times-weekly Panama City-Rio de Janeiro flights aboard 737NGs from Nov. 15.

"We continue to be well positioned for another year of strong results," CFO Victor Vial said. He raised full-year RASM guidance from 11.4 to 11.8 cents.