CPA - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings First Quarter Earnings Call. [Operator Instructions] As a reminder, this call is being webcast and recorded on May 16, 2024.

Now I'll turn the conference over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Daniel Tapia

welcome, our and call. quarter Varun, you, everyone, first to earnings Thank

us CEO CFO. Montero, Heilbron, are Copa Joining Pedro Jose of today Holdings; and our

Pedro analysts. Immediately after, quarter will our open who going for start we discuss followed questions call from will results. by Jose, First, first financial our the will by highlights, over

financial financial Reporting today's call, IFRS we Copa Holdings' prepared can been non-IFRS In have measures reconciliation in accordance the discuss company's in Standards. release, non-IFRS measures. copaair.com. found financial reports with A of International posted our Financial has which be will website, on to earnings the been

results. Our discussion risks and forward-looking that historical current to to the based statements could today limited uncertainties company's of to subject results our assumptions cause SEC. are also change. with and annual will are beliefs, and expectations statements Many regarding differ these the These not that report in filed on intentions materially reflect forward-looking involve facts and/or actual contain events discussed future

the to Mr. CEO, Heilbron. I'd Pedro like our to call over Now turn

Pedro Heilbron

to and Thank Good morning our earnings all, you, in thanks for first Daniel. quarter participating call.

begin, I to our the to highest and Latin of for them, always, extend would my To as all have to efforts admiration. sincere my company. regards at their gratitude commitment and continuous forefront the like coworkers Their dedication we Copa Before kept American aviation.

continued Despite environment headwind while low once These facing region Once our deliver demand we again, January capacity significant operating able fuel unit fleet, results. XXX costs. a to by were industry-leading ability driven margins a of the were financial pleased more our partial X maintain a ex results year-over-year. MAX robust we're strong report in and with to in growing grounding to

quarter, X.X% year-over-year, compared came factor XX%. revenue the at to QX while grew came or $X.XX, RASM same in the period the at highlights compared traffic lower $X.XXX, for in at 'XX. Passenger decrease XXXX. Among the yields X.X% Load came X.X% in to for quarter passenger main in unit a

X.X% driven costs costs. mainly 'XX, by lower decreased aircraft Unit and compared fuel, QX distribution maintenance to by

fuel, came to in X% ex XXXX. compared a decrease QX or Unit Excluding at cost CASM $X.XXX,

margin As percentage at than of for XXXX. in XX.X%, the Operating quarter X.X first result, in points the came higher a quarter

On Copa on-time the the was as airline recognized Cerium highest in front, operational Latin of during any the earnings quarter, performance America. by again

In of the fact, performance, the and highest in on-time amongst any Copa's the above highest QX XX% averaging Americas the was in carrier world.

deliver coworkers to success. would our day recognize I in who opportunity are contributions X,XXX and to than our customers. day travel to take experience to like more key this our out a Their world-class

plan. now Turning network to our growth

Brazil start As to U.S, in to glad healthy in Tulum in we solid levels, at and our destinations that comment in new previous and expect X call, Anapolis I'm expect Durham the to a Raleigh have month. start. mentioned these bookings routes Mexico. in early next we coming we are

these as most destinations destinations in solidifying hub the additions, serve in countries, America. we'll with XX the position Latin our With international XX leadership

rest the for of expectations our the to now Turning year.

presentation. provide the as see year, the our region. to includes continue guidance are we will you operating the which Jose We detail demand an a yesterday, more reaffirming for during our to in environment margin published in release of And earnings healthy within XX% XX%. saw range his

delivered results. we quarter first summarize, To industry-leading financial

for intra-America XX this our to travel. strengthening on to We'll deliver cost most complete summer, and strategy. convenient network, the execution destinations hub continue further grow our We by

operational continues as deliver always, healthy our to a in see the XXXX. world-leading to results. once to expect region continue operating demand margins in environment and again strong team We deliver And

making the best us is And the hub in Latin America, our ever. and of airline deliver. region Panama as hub Finally, the a Americas positioned solid to our best relevant in is our business in model consistently as connecting

more to in it financial our I'll results go over Jose, Now will who over detail. turn

Jose Montero

morning, team deliver passengers. for service for in by their first us thanks Pedro Good I all efforts Pedro. to great you, our everyone, world-class being quarter Thank and will to over results. with today. to our like start going acknowledging our I'd join

$XX a any in QX operating January XXXX. came XX% for to yields at operating grounding the the profit $XXX.X $X.X to grounding. net from XXX Boeing to MAX came We Load the Boeing profit compensation million of reported X of and compared impact related or decrease the a $X.XX X% of the decreased margin share. seat an include the negative period of company's passenger These higher a XX.X%. X.X for available same or XX quarter, in XXXX, aircraft percentage of factor X.X% and the of in while We $X.XX. billion Capacity exclude quarter per miles, point of million $XXX in than results due to quarterly reported and approximately million by at

unit costs lower in result, excluding $X.XXX or year-over-year. a our in Corporate by than as revenues NDC at a we decreased prices, costs lower $X.XXX, CASM, lower driven strategy. in finally, driven mainly came fuel, X% unit aircraft and lower QX XXXX, maintenance came CASM lower XXXX. or $X.XXX Connect continue jet And to X.X% decrease of our versus quarter distribution first X.X% fuel As the by at Mainly or deploying

company cost MAX capacity impact reported an CASM XXX the fuel fleet approximately of quarter. of for the $X.XX January, and ex X Excluding the grounding partial on would our have the in negative of

I'm time discussing liquidity. going and some sheet spend to our now balance

close to had As billion. of the end assets first we of $X.X the of quarter,

range to short- our the cash, of of adjusted in lease comprised ratio around quarter which an X.X%, cost in solely our debt the debt-to-EBITDA we ended with debt is months' to of XX that being to of in continues X.Xx. terms debt, billion debt over XX% of $X.X debt, with ended pleased liabilities last represents net average which in revenues. aircraft-related fixed. and of came XX% with $X.X I'm the quarter And billion report with and As currently be we of our investments, and long-term

comprised a fleet XXX-XXXs. XXX freighter of XXX-XXX one the figures total XXX Turning the and Wingo. now XXX-XXXs, These include X quarter Xs fleet. first nine to aircrafts of MAX and our by XXX-XXXs We XX with XX operated ended

leases. part quarter owned ongoing During and as initiatives, fleet this the of we of of management transaction, of XX% XXX-XXX quarter, and With their our Boeing the aircraft. first purchased aircraft leased our we two ended our XX% operating being with

of As one X to to XXX XXX MAX MAX receive and X our so X total we year, received May, in the have with XXX to scale additional MAX the far X XXX year delivery and for we MAX current the expect remainder aircraft, additional end of additional a two Xs aircraft.

deliveries. have secured Financing all these for We Jolco XXXX already

confidential signed agreement to with Boeing we April, January the related grounding. In a

years. Following over accounting expect our X the that coming depreciation in standards, the line through the income IFRS compensation statement we will amount be amortized

Turning now payment to return shareholders of shareholders. the to $X.XX to will per share I'm year of that XX. XX a its June announce our second on of of pleased dividend as to company for May value make the record all

share $XX executed million the QX, program. repurchase its company during approximately of Additionally,

and we outlook, a range margin our to As XX% of are operating to XX%. XX% guidance our of the full range capacity year growth in reaffirming

range of all-in following on we assumptions: be price revenues an basing $X.XX; gallon. in factor fuel the $X.XX per unit of our are approximately of to of are the load CASM-Ex were expecting $X.XX XX%, outlook and We range fuel the in

Thank with you. your of we'll open call the And some that, to questions.

Operator

[Operator the first line of Raymond Instructions] question James. comes Our from Syth of Savi

Savanthi Syth

bit. that unit if basing was a revenue little talk you're could you ticked the on, guidance wondering about I of it's kind down here your

drove RASM you're Just wondering quarter progression the that thinking about what of the kind next and how over few year-over-year

Jose Montero

that, our $X.XX high performance still compared been strong. is start I'll our First in of It's levels Savi, say the first, that early other outlook have on to Yes, at. that And you know to very it's addition year. I in what, periods very we've RASM to or

our So the second in still down we to lot water for to year a limited in half general visibility competitive come There's on And are of bridge. of environment. a still. is the the terms,

for out that. So we're looking

it's of sales. an in seen like more little have We've increase a -- increase seen item. we Additionally, or a a kind bit an of technical direct

slight more on the tickets surcharge come recovering we're a indirectly. sold And yields are direct not in that related sales that have to so in, there's as reduction

little a that of as it's well. bit So

is And full the I have in to the is guidance year to our still for XX% very, XX% close range, which the by for saying performance that strong year. very

I don't add know, something to Ped, do you there. want

Pedro Heilbron

important margin performance. control very we're which cost over control also something gives we us our better our ex because better is also, And that's Yes. lowering unit guidance, and

Savanthi Syth

expecting is for -- I your Is better that, point. are and you Valid on Pedro. Or comment that you about, $X.XXX what this you of and target follow-up kind than in were coming Jose kind pull a then on was forward that is just this of -- thinking of reflected a were and what guess thinking? cost XXXX? unit in talking

Jose Montero

I -- think guided it's in of next year. our multiyear with that target we our to on X.X% what reaching line by target

that. for for and And our confident very we're track XXXX. on with we're target So comfortable X.X

Operator

of of comes question next Our Duane from the Pfennigwerth line Evercore.

Duane Pfennigwerth

maybe in unit just On strong quarter. you obviously, improvement beyond the grounding. Can of factors first that us X, are X normalized what But of the Very can remind help driving results, maybe in like there's especially quarter, you X, reduction. first cost are? the what just unit kind some us the remind the unit noise considering cost, maybe drivers cost

Jose Montero

continues -- that to distribution. in Yes, It a Duane, would say great a that great to CASM great #X story. question. continues item our the be reduction being And I contributor is there's

our line they a and very expected, to increase it some leases -- being that I that, say to of more continue conditions. been under would great lowering in And sort this cost maintenance and associated cost we're benefits and will lease maintenance maturing year of to it's that last last transactions also some so And slight issues. maintenance, had we of we related as a -- of signed with that and the execution engine the contributor getting quarters, the to the some control we some good return component our the expect our as we've a over that buying year two, is of continue we extensions performed base. Number with lease being several

item another note. think is I that's So of that

aircraft. of XXX-XXX of forward, that the a are Going remember portion we process in our densifying

be to also sometime in that XXXX. concluded expect We

a also that to as CASM well. going our So be will forward contributor

as cetera, are there inflationary pressures now more such are as of efficiencies our record track our take good our so about a is that and tariff headwinds charges, we after away these course, very that us airport pandemic. of control, to are for There et that difficult fees costs certain cost in Of lines user and well. airspace, But has achieved. forward. cost far improvements we in very, And going have confident very and essence, the performance been

Pedro Heilbron

when under also we our we overhead keep -- very cost whole also And tight control.

a So as there's there. also capacity, we benefit grow

Duane Pfennigwerth

then the that As results it's But range? to Because see all on equal, how and that just year. second in time approach this now, this the the XX% at margins EBIT considering pressure quarter, right I raise the downward in that you range if guidance said, game I in the upward there's point agree else half. conceptually, to full outlook on a March were put hard And or to you you that guess do in XX% at does left pressure lot year year? of the we just the play here

Pedro Heilbron

in dice. now. early to that's we're you the of our We're the year, work the be outlook. roll half in And for in our And well right of our what doing hard we conservative results as It's Yes. always course, upper and pretty said. very projections, never

Operator

of comes Bank next of from America. Our Rogério the Araújo line question of

RogÃ©rio AraÃºjo

couple I here. a have

noticed we Copa was for quarter. airline one, some the that kind Latin of mismatch yields first reported. on The America And U.S. a in weakness this what

afterwards. addressable in on would of I of you markets great. could any between Copa those make and airlines second the and U.S. the markets And addressable demand little noticing this difference those clarify that bit in address different please If a can question are the -- trend be you in differences

Pedro Heilbron

intra-Latin markets U.S. not maybe Rogerio. America. U.S. Latin those intra- in extremely Thanks, strong U.S. markets. airlines those leisure playing very we America. important we're the us. in and the difference in we're We're huge much play bigger strong Caribbean Actually, say would but to I Latin not are markets. America is us. to those Mexico Right. U.S. in -- to that stronger in is to Plus are hardly leisure for The and

Besides already have communicated. markets quite unit we And So downward differences. have we adjustment -- our remain revenues, which the strong. in adjustment

RogÃ©rio AraÃºjo

is there aircraft that question owned And on now purchases are happen? cash what will visit second in if do of the the my company a many ultimately did the this And [leisure] And for keeps this think are future, Can Copa Copa trend How encumber. is you continue rising. clear. aircraft the Pretty two to Okay. EBITDA regarding -- conversion here? by right increase quarter. that

So you that's anything it. share be could about But I'm interested why great. would

Jose Montero

two be terms capital bought and we in believe selective were aircraft during great operating a is to to the Rogerio, of NG Yes. We leases deploying own. that quarter, XXX expecting of the we that are opportunistic under way. or our asset

to And with us. find if negotiations a is we so deal or we've can that in convenient see been the lessors different for

of of XX% of fleet aircraft, I have the in you are my our unencumbered think terms In are on prepared fully are aircraft our encumber, around almost we of -- -- of our number mentioned in remarks, that total It's XXX of around give aircraft I on -- fleet. to our under that company. by aircraft the of XX the by unencumbered. that are And terms owned fully just aircraft

So yes, we bit strong have that position a a it's our in of of terms fleet. quite

Operator

the from Becker of Cowen. comes of question Helane line next TD Our

Helane Becker

guess I Does thinking guys you're I off are delivery of that Jose, really year you because Boeing conservative, respect I with the too bought but said, include expecting had that ending one to many you're was X aircraft. what with question not you appreciate the XXX lease? delays. you from

Jose Montero

were we base. bought No, lease already no. The no, tool the in that off

from we've received which already X Boeing we're X. getting of are So X MAX new deliveries these that

sure, of took X delivery So X yesterday. MAX we

have MAX that receive X And then the will year XXX we of next need. end Max and the for with the X, you latest to -- X So another that coming week. the remainder the year, we XXX carriers

Helane Becker

And I demand. with helpful. I your the with to respect -- guess That's was had question Okay. other to respect

demand think ago since an Panama last the well. How so within either as Panama which was in XX% South decade. as or factor, does higher or back for look quarter the years load You're than X seeing forecasting the I year the X you're and to relative it's it for much

Pedro Heilbron

very helping Yes. a for Panama Panama is growing It's before, at than healthy in example, that's rate, O&D And tourism stronger traffic. the double-digit definitely. and

Of our is course, connectivity through of the we here. our main market hope provide Americas the

capacity West way markets though guiding in up load connecting in and down lot in So new general other our airlines, still robust very a from bigger and from East markets are even and there's us most a remain high we're and terms, of to a factor.

strength of tells that the So about the market. something

Operator

the Our next question Alberto of comes Valerio of UBS. from line

Alberto Valerio

for Congrats the our strong. on quick results, side. Two ones really

consider I tax for methodology pay on Should Panama? of And what tax. connections to the have We increase quarter. one future? if is you the see rate you a an And tax rate. remind in could First we this note slight don't extra for X%. guys this us the

or the and if this [X.XX] just guidance, if worsening should a further if in drops. cautious is second moment, the on or But way you The you that that about keeping as keep huge scenario fuel see you should stable wondering keep We noticed see we at the margins for fuel price. the quarter one fuel plan it future, you the the decrease guidance? price is of

Jose Montero

All right.

That's, XXXX could tax financially. range for blended think, way purposes, to So should I about it rate for you the of year best think Alberto, your I assume a in full model that our planning the be in XX%.

assumption? our sorry, fuel I repeat second Was to it question? -- you the related think can price

Alberto Valerio

from fuel The keep noticed results, that but... the price quarter on you same fourth guidance, you Yes. the the

Jose Montero

put fuel and we in it curve, that our the the into forward price we We simply guidance. see just use

to to So and a view necessarily where don't We going is fuel predictors prices. on don't take we be? fuel it want be of

in we therefore, that looked throughout that were the full at year, in the it it our way the year we is will but So vary price curve. guidance. it we And preparing definitely, the saw that's

as that course, first the quarter. includes price realized well during Of the

Operator

of question Deutsche of comes Linenberg Bank. the next from line Our Michael

Michael Linenberg

to sheet of the got take And back was follow-up off balance got maybe through and take, I is question. I put guess, look lease line, the maybe them and a XXXs way question, this quarter, millions sense Jose, in, whether to at the you're lease. sheet? on this this answered When off that it's take whatever this the the them contemplating will transactions the continue to airplanes year put additional you them decided that you on balance to that when and the maintenance year I sort benefit dollars want or you through Rogerio's to go what on just of we

Jose Montero

say way a of a that one, quarters from couple a year. going throughout of better maintenance it further related CASM I there, that there the expect on transactions perspective lease conditions. model the some would create, of be extensions there reasons number is could But But we I yes, performed line that would throughout guys be and kind let's well, also CASM that going in return say, periods flattish to the X everything -- prior forward. the good best year. There's growth there basis Yes. we CASM that there's and CASM goes that to say, the is there. the of to movement have a are

in the you some and well. with is and that -- as also that maintenance recall, all as in well the as through the guy engine LEAP so good And line. And a there -- XXXX we the it XXXX. of that had, to so through related it's last versus that also there's then say, let's that line to another the P&L flows also And in maintenance creates, component maintenance items year,

lease of by maybe are the is and I [indiscernible] to the other a maintenance would and transactions half like. probably of benefit say about lease things. it's the half extensions and that the and mix So related represented

Michael Linenberg

your my Great. of then November us full XXXX what question, you were obviously helpful. before second is This door fleet the And plan That's when when you look at contemplating plug. the in super for just year. telling were we of sort

we're X XX and to to are airplanes out even at get even what of not XX we're going other it, XX your was rough millions we're Where and plan I'm the were for You we it what's What from of on I went we hundreds guess, then carriers now sure Boeing. was get call are when of that coming was dollars, in, gross CapEx X, X, we going CapEx? and news gross to now where and hearing and XXXX number? at now based the

Jose Montero

now, Right million. $XXX plan, fleet the for capital with our gross around estimate CapEx is this

With was of plan, original in the billion, excess yes. fleet it $X

Michael Linenberg

Wonderful.

of no, let lots finish So to you going I'm dry But powder. Pedro, sorry.

Pedro Heilbron

is, great. going but I from most to I'll growth year this to is of XXXX. growth no, your in comments. the effect going related what that But year add ASM our our of rather full it's growth our question CapEx is hear of the no, was maybe not it or to come No,

So have following won't the some even year significant a year, projected delayed growth for it in get our our into XXXX. the later if of deliveries effect ASM on

Jose Montero

deliveries the of of capacity guide the why to And already reason year. a assuming these impactful as set same We the at that's delays XX%. were kind on the stayed

Operator

comes question Monsivais the next of Our of [indiscernible]. line from Pablo

Pablo Monsivais

of question just environment pick want CapEx that XXXX. on to over where there's saying What the that. is I I competitive guidance moving? get make other heard And U.S. sure your landscape, your competitive million, a carriers two number thoughts and overcapacity. Latin to are is are capacity are questions, more but to putting carriers make is to American some the for the the $XXX I on brain want it Just sure one Mike's was and related

Pedro Heilbron

Yes.

of will in So grew our region, we them. name been that's them, Xx own. of I at main coming than the and all capacity a have growing out competitors at a our lot Xx pandemic, times, pace and faster the probably But

previous -- have past they it this growth. slow down to in lapped up caught growth have as also we they and expect -- the expect year. So But their year-over-year also I

theirs, far, high so our I'm load about but factors ours remain high. not remain And sure

market am managed. -- airlines forward. able hoping capacity. been absorb The So in to I'm deliver region least has our to And are be the will And rational well the results. expecting, going strong everybody at growth that wants financial I capacity

so market means far, very usually has they're the that responded with So being rational well. capacity. But

Operator

the next McKenzie Daniel from line Global. of question comes of Seaport Our

Daniel McKenzie

the perspective. quarter Congrats investor on a focused stellar of a the longer-term and They're on of here. questions I've first first results. from the got revenue one growth really couple is on segmentation. just really And investor sort longer-term

share growth, respect I'm with overall longer term? And sustainable how so you are could growth? rate just how to right separately, about then you And the percent And if of wondering is thinking growth what the you is just the a perspective. revenue don't segmentation And are out similar how and perhaps it break corporate, revenue? question It's U.S. from to that's premium know not really defining here. I airlines just

Pedro Heilbron

Okay. it give Dan, a let me shot.

the we So a growth above planning XX%, I an growth -- not to right deliveries sustain fine the were expected, that. but what we than that with we you're We more mean, seeing confident we rate ASM XX%. did all we're get grow are above now, can

that. And growing We next XX%. with over have no year, we at should issues be

between number we that years, overall but at demand the cetera. low in range we the terms mid-teens, market the of good -- teens or a won't growing XX% see can You somewhere destinations, for see and XX%, of stay et opportunities in to in growing us probably new

The is for run opportunity we growth. But we in really, of way we just number faster. maintain grow really have to that So the actually can confident such flexible a the we're always way a this we that medium long pretty we to always ASM can adjust either the airline, remain term, years are, way. healthy

means the we We of it, usually doing cover but have downside.

of the it always if our of a So slow and to down. Board things we also. to We've we've done cover were flexibility downside lot the That's of mentality done effectively. have kind

flexibility is important plan. in that So our

high-quality segment as in calls. And became after previous became have leisure segmentation, revenue explained of we many the a pandemic, terms in ways. it In

relatives the the Our our range is XX% and visiting friends around in is and leisure -- to range. The business in today, XX% XX% quarter. the is XX% depending on

range. So higher But leisure little fare. a of than leisure that of There's that's the a different before. bit again, more segment kind is is

Daniel McKenzie

terrific. back to was That then I And an Yes. earlier going guess question.

for to XX% versus current those in cycle. outperformance given the the your What behind cost sort cycle in today historically. XX% versus margin that the So of structure pent-up XX% last are investors as top is. is understand XX% as to from just margins to trying X the So things that simple perspective? leisure? the it again, Or high-value your demand, Is structural it perhaps nature, more are where

So really, down should business. longer-term about just to gets think the question the investors kind how of

Pedro Heilbron

and me company a it Right. That's of little briefly bit one question, is have improvement. continuous interesting company. about as values And our changed an a how to a we as talk allows

So always better ways looking things. for we're of doing

we So better unit today costs. Copa, the if example, we compare pre-pandemic for to the have Copa

pays for that pricing. Today, on fares and sell management much and like. don't the except the distribute costs directly we more the can GBS them and basic passenger customers, to saving significant revenue offer better it, we as have We can

we now. against So say, not we we don't -- destinations right flying somewhere But were to X know, XX network. were before. instead, have airline we're we around I I model. We're flying have that to streamlined still like, pre-pandemic our not are There's any a lot destinations flying that we other would more XX competitive and between also business

is It more XX flying than which what we're we month, XXXX. be X flew to by next places. So will in more

better better better network, cost, unit So technology, stronger pricing. better,

us today digital was example, Our before third-party for mostly technology, developed and it owned all is by company.

So better we have cost. and technology better

effective on we're I we're I more going, keep airline we're efficient. and more We're better more a competitive. So but could guess and

have competition. more also We

we we're to would better arms happen. deliver our be crossed So could be with the margins sit what to able not see to had to We delivering. just

Daniel McKenzie

wonderful. that for answer, Pedro. comprehensive That's Right. Thanks

Pedro Heilbron

sorry I'm the for Yes. advertising.

Operator

the line of Guilherme comes Our Mendes next of question JPMorgan. from

Guilherme Mendes

is My first one allocation. capital on

on is the excess for capital that Colombia forward, into the long-term forward? And And going We live in competitive And consider we of buybacks? last you post think and Wingo is the how one X see actually but continue Colombia. allocation is any in optimal if it's leverage to you, second if should going about how this performing if of should the know market profitability could small distributed coming and could growth environment how I level be airlines an leverage for year? and to there's capital we dividends share down.

Jose Montero

capital I in say, certainly terms is leverage. our of Guilherme, allocation, first, So a strong very, would very right yes, balance sheet now

So to have think it's a high aircraft point. of we And we mindful coming. lot a that have be I

put of expenditures to So next capital that X.X a years. going lot into we have are be business back in the over the

XX Our in that put year. our next XX-F around we or fleet plan coming XXXX has airplanes

year, that almost policy vis-a-vis being distribute active in the that of growth the So -- been dividend that we to bit we've we return This is of will back is as Board it the to we is the to value shareholders. the put very last have quite we year successful, a two shareholders. into our business over next our essentially, decided business have double -- our continues years. Number and several

and of worth and -- our shares in as So QX. we put during $XX million first also we complemented back that quarter results, out we've bought

So it's a everything. mix of

say I'd putting it's our First, the back followed it value company the to for of and shareholders. then return into by growth

Pedro Heilbron

market. goes very always very wave, competitive Colombia -- of it's through it It's In a competitive. terms [indiscernible], but its Colombia,

XX% than domestic terms -- Colombia around airlines failed when Colombia close In X in that questions, one today is specific higher XX% your before were is operating. the of capacity to of

in XXX-XXXs. aircraft. I'm is entrant keeping year, operated maybe without capacity started, think, the from performing we're Wingo, that plus year the So late X X they're X Colombia, X operating But aircraft, And even flat better one those not last year higher. performing I incumbents. Wingo airlines, this includes capacity at That airline XX% they is sure. last the growth well, about new

have So a just we an don't ambitious plan. market general. It's in very difficult

So what results and a in doing under control with and healthy we're that's kind Wingo. would level, capacity keep Colombia we rather of and with

Operator

from the line Citi. of comes question And our Singh last of Jay

Unknown Analyst

Trent. ex Singh Jay is dialing the at and question going My forward. CASM looking to we likely that pushed Stephen market, It's levels inflationary is, first U.S. for see XXXX continue pressures in above

executing for side cost low year? on and next a CASM terms where you As Copa, the of realizing maintaining in such

Jose Montero

general, that we, significant last going Yes. not have over some inflation has period our in the fees Jay, rooms States. for handling And hotel through a putting has airport that been pressure United inflation CASM. as those are on course, the seeing been it the crews years. U.S., some several as cognizant U.S. we in in of the But the prevalent been America, all of the in has of Latin in U.S., fees, are been look, in

have airlines. And therefore, we own U.S. do addition pursuing our as just not in as some mentioned, the to So pressure to very ways active better that, of Pedro in we've much been operations. had as

there same U.S., U.S. swim for a we So mean many, and over we've lot in specification, many lanes we pandemic us level after of cetera. But reductions in inflation to in going some the not just been at carriers. et seeing are decisions maintenance, albeit very active costs strategy, in order I fleet distribution the overhead, seeking are the done competitive. as the and we'd be forward. -- efficiencies made that and have that

Unknown Analyst

question is, Boeing delivery you to XX% second the delays? And guide capacity my able how of are inside the maintain

Jose Montero

our spite for in we the assumes Yes. year just of question year. how the our that year that scenario You we -- aircraft the current as from the it's for the if Pedro portion Boeing full guidance simply of effect the XX% your large we're put in have that capacity the I mentioned remainder it of growth XXXX XXXX is of XXXX. throughout XX% Yes, correctly, capacity or understand for is before, And the maintaining deliveries the delays.

So aircraft be subject were have the in much they not -- up of the do and to in that course to aircraft delayed impact that an much XXXX of XXXX. later until that come not if year really

and on the see we in is So let are XX%, number -- and know. it that there future, the changes right we'll we'll we'll the market now have

Operator

for Heilbron like remarks. closing back now concludes it the Pedro to question-and-answer turn session. This I would to

Pedro Heilbron

Okay. Thank sir. you,

you for for I And call. concludes thank continued you as you always, So first Thank This great you participating. a our your hope XXXX all. have thank support. quarter day. earnings

Operator

the gentlemen, participation. for you conclude presentation. This and thank does your Ladies

and a You day. may disconnect, wonderful have

Copa (CPA) 16 May 242024 Q1 Earnings call transcript