Lori Ranson May 16, 2024
Credit: Boeing
Copa Airlines believes it can manage additional delays of Boeing aircraft in 2024 and still maintain its planned capacity growth of 10%.
The Panama-based airline now expects to take delivery of nine 737 MAX jets in 2024, down from projections earlier this year that 11 aircraft would join its fleet.
During a May 16 earnings discussion, Copa CFO Jose Montero said the company has received two 737-9s in May, and projects accepting delivery of one additional – 9 and six 737-8s by year-end for a total fleet of 115 aircraft.
Copa ended the 2024 first quarter (Q1) with a fleet of 106 aircraft – 68 737-800s, 29 737-9s and nine 737-700s. Those figures also include one 737-800 freighter and nine 737-800s operated by Copa’s Colombian LCC Wingo.
Continuing delays in aircraft deliveries resulted in Copa projecting capacity growth of 10% in 2024 versus earlier guidance of 12-14% growth.
The company’s CEO Pedro Heilbron said most of Copa’s capacity growth in 2024 stems from the effect of its 13.4% growth in 2023. He added that if some deliveries scheduled for later in the year get pushed into 2025, “it won’t have a significant effect on our ASM [available seat mile)] growth projected for 2024.”
Offering a view of Copa’s capacity growth for the longer term, Heilbron said the company’s ASMs would grow in the low-to mid-teens range for a number of years.
Copa posted a Q1 adjusted net profit of $176.1 million, an $18.3 million increase compared to Q1 2023. Q1 revenues grew by 3% to $893.5 million while expenses for the quarter notched up 0.5% to $677.5 million. The company expects to post an operating margin of 21-23% for the full year.
Lori covers North American and Latin airlines for Aviation Week and is also a Senior Analyst for CAPA – Centre for Aviation.