NYSE:CPA Copa Q4 2024 Earnings Report $92.24 +0.49 (+0.53%) As of 01:17 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings HistoryForecast Copa EPS ResultsActual EPS$3.99Consensus EPS $3.84Beat/MissBeat by +$0.15One Year Ago EPSN/ACopa Revenue ResultsActual RevenueN/AExpected Revenue$880.65 millionBeat/MissN/AYoY Revenue GrowthN/ACopa Announcement DetailsQuarterQ4 2024Date2/12/2025TimeAfter Market ClosesConference Call DateThursday, February 13, 2025Conference Call Time11:00AM ETUpcoming EarningsCopa's Q1 2025 earnings is scheduled for Wednesday, May 7, 2025Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Annual Report (20-F)Earnings HistoryCompany ProfilePowered by Copa Q4 2024 Earnings Call TranscriptProvided by QuartrFebruary 13, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings Fourth Quarter Earnings Call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this call is being webcast and recorded on 02/13/2025. Operator00:00:26Now, I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin. Daniel TapiaDirector of Investor Relations at Copa Holdings00:00:34Thank you, Carmen, and welcome everyone to our fourth quarter and full year earnings call. Joining me today are Pedro Hedron, CEO of Copa Holdings and Peter Dankerslott, who was recently appointed as the company's CFO. First, Pedro will start by going over our fourth quarter and full year highlights. Afterwards, I will go over our financial highlights. Immediately after, we will open the call for questions from analysts. Daniel TapiaDirector of Investor Relations at Copa Holdings00:01:02Copa Holdings' financial reports have been prepared in accordance with international financial reporting standards. In today's call, we will discuss non IFRS financial measures. A reconciliation of the non IFRS to IFRS financial measures can be found in our earnings release, which has been posted on the company's website, copair.com. Our discussion today will also contain forward looking statements not limited to historical facts that reflect the company's current beliefs, expectations and or intentions regarding future events and results. These forward looking statements involve risks and uncertainties that could cause actual results to differ materially and are based on assumptions subject to change. Daniel TapiaDirector of Investor Relations at Copa Holdings00:01:49Many of these are discussed in our annual report filed with the SEC. Now, I'd like to turn the call over to our CEO, Mr. Pedro Hedron. Pedro HeilbronDirector & CEO at Copa Holdings00:01:58Thank you, Daniel. Good morning to all and thanks for participating in our fourth quarter and full year earnings call. Before I start, I want to welcome Peter Donkerslod into his new role as CFO. Peter has a strong record of leadership and strategic vision, having held key positions with full P and L responsibility in multiple countries across the continent for a large publicly traded company and for the last five years as Copa Head of HR, where he has been an integral part of our success coming out of the pandemic. His understanding of our operations and company culture combined with his strong financial acumen makes him uniquely qualified to lead our financial strategy as we continue to grow and evolve in a rapidly changing industry. Pedro HeilbronDirector & CEO at Copa Holdings00:02:53We're excited to have him step into this new role and look forward to the positive impact he will undoubtedly bring. Peter will officially join the finance team on March 10, following his transition from his current role in HR. Peter, I'll turn it over to you. Peter DonkerslootCFO at Copa Holdings00:03:12Thank you, Pedro, and thanks everybody for joining our call today. It has been a great honor to lead Copa's HR team for the last five years, and I'm truly excited to take on the role of CFO. As Pedro mentioned, in addition to my most recent experience leading the HR team, I've worked in many countries through the continent as General Manager as well as overseeing commercial operations, logistic, risk assessment and financial planning. As you can imagine, as a Panamanian, I'm very proud to be part of Copa's management team, especially given our track record of delivering product and connectivity our customers value combined with strong financial results and industry leading unit cost. I'm eager to lead our finance team in building on the strong foundations and continue to delivering value to our shareholders. Peter DonkerslootCFO at Copa Holdings00:04:03Back to Peter DonkerslootCFO at Copa Holdings00:04:04you, Pedro. Pedro HeilbronDirector & CEO at Copa Holdings00:04:05Thank you, Peter. I want to start by expressing my sincere appreciation to all of our co workers. Their dedication and hard work have been essential to Copa's leadership in Latin American aviation and strong financial results. To them as always my highest regards and admiration. Pedro HeilbronDirector & CEO at Copa Holdings00:04:26As detailed in our earnings release, we delivered another quarter and full year of solid financial performance, including strong operating margins. Despite facing several challenges throughout the year, such as the partial grounding of our seven thirty seven MAX nine fleet in January and the sudden cancellation of flights between Panama and Venezuela at the July, we were able to deliver an operating margin of 21.9% for the year. Our 2024 financial results are a testament to the disciplined execution of our business model, our focus on low unit cost, continued expansion of our leading hub of The Americas and a passenger friendly product including best on time performance. The combination of these factors has allowed us to deliver strong financial results on a consistent basis. Now, I'll go over the main highlights for the fourth quarter. Pedro HeilbronDirector & CEO at Copa Holdings00:05:33We increased capacity by 7.2% year over year. Unit revenues or RASM came in at $0.113 a 10.4% decrease compared to Q4 twenty twenty three, mainly driven by 10.8% year over year decrease in passenger yields. The yield reduction was mainly driven by weaker currencies in Latin America as well as increased industry capacity in the region. Unit revenues were also impacted by the ongoing effect of the rescheduling of flights due to the cancellation of the Panama Venezuela operations at the July. Unit cost excluding fuel or CASM X came in at $0.059 a 2.6% improvement compared to Q4 twenty twenty three, mainly driven by the increase of direct sales in both Copa dot com and our lower cost NDC travel agency channel. Pedro HeilbronDirector & CEO at Copa Holdings00:06:38Our operating margin for the quarter came in at 23.3%. As for the full year 2024, capacity increased by 8.6% year over year, in line with our last guidance. Unit revenues or RASM decreased by 8.2% compared to 2023 to $0.115 CASA mixed fuel came in at $0.058 3 percent below 2023. This is a milestone achievement for us as we delivered our full year CasaMex target one year earlier than stated in our twenty twenty three Investor Day. And as I mentioned in my opening remarks, we achieved a 21.9% operating margin for the year. Pedro HeilbronDirector & CEO at Copa Holdings00:07:31On the operational front, Copa was recently recognized by Cerium for the tenth time as the most on time airline in Latin America for 2024. Copa's on time performance of 88.2% was once again the highest of any carrier in The Americas and the third best in the world. Additionally, for 2024 Copa was recognized by SkyTrax for the ninth consecutive year as the best airline in Central America and The Caribbean. These awards belong to our more than 8,000 co workers, who day in and day out consistently deliver a world class travel experience for our customers. Turning over to our expectations for 2025. Pedro HeilbronDirector & CEO at Copa Holdings00:08:23In terms of demand, we're projecting a continuation of the current demand environment in the region. On the cost front, we expect to deliver consistent unit cost year over year maintaining our cost discipline. These two factors together lead us to once again expect to deliver strong margins for the year as well as continued growth as we anticipate growing our year over year capacity within a range of 7% to 8%. Daniel will provide more details regarding our full year guidance. To summarize, we delivered strong fourth quarter and full year 2024 financial results. Pedro HeilbronDirector & CEO at Copa Holdings00:09:08We continue to execute on our cost efficiencies, which remain key to our strategy going forward. We will keep growing our network, the most complete and convenient hub for travel in The Americas. We expect to deliver strong financial results in 2025. And as always, our team continues to deliver world leading operational results and a passenger friendly product. Now, I'll pass it over to Daniel, who will go over our financial highlights. Daniel TapiaDirector of Investor Relations at Copa Holdings00:09:40Thank you, Pedro. We reported a net profit for Q4 of $166,200,000 or $3.99 per share. For the full year, our net profit came in at $608,500,000 or $14.56 per share. In terms of operating income, we reported an operating profit for the quarter of $204,200,000 and an operating margin of 23.3%. Our operating profit for the full year came in at $753,400,000 and 21.9% of operating margin. Daniel TapiaDirector of Investor Relations at Copa Holdings00:10:21Turning now to our balance sheet. As of the end of the year, we had over $1,400,000,000 in cash short and long term investments, which represents 42% of the company's last twelve months revenues. In terms of debt, we ended the year with $2,000,000,000 in debt and lease liabilities and adjusted net debt to EBITDA ratio of 0.5 times. Our average cost of debt entirely related to aircraft financing remains highly competitive at an average rate of 3.5%. Approximately 65% of this debt is fixed rate. Daniel TapiaDirector of Investor Relations at Copa Holdings00:11:00Regarding our fleet, we received two additional seven MAX-8s in the fourth quarter to end the year with a total fleet of 112 aircraft. Looking ahead to 2025, we expect to receive 13 additional seven thirty seven MAX 8s starting with two in June and one additional Boeing seven thirty seven-eight hundred freighter. With these additions, we expect the year end fleet to reach 126 aircraft. As of now, we have secured an operating lease agreement for the additional freighter in financing for three of the Boeing seven thirty seven MAX eight deliveries via Joco financing. Turning now to the return of value to our shareholders, I'm pleased to announce that for 2025, the Board of Directors has approved a quarterly dividend payment of $1.61 per share to be paid in the month of March, June, September and December, subject to the board ratification each quarter. Daniel TapiaDirector of Investor Relations at Copa Holdings00:11:56I'd like to highlight that this maintains last year's dividend payout. The first quarterly payment will be made on March 14 to all shareholders of record as of February 28. Furthermore, during 2024, the company has repurchased $87,000,000 of its ongoing 200,000,000 share repurchase program, which represented approximately 2% of the total outstanding shares as of the end of twenty twenty four. '30 '7 million dollars of the $87,000,000 were executed in the fourth quarter. Finally, turning to our outlook. Daniel TapiaDirector of Investor Relations at Copa Holdings00:12:35Consistent with what Pedro shared, we can provide the following guidance for the full year 2025. We expect to increase our capacity in ASMs within a range of 7% to 8% year over year. And we expect to deliver an operating margin within a range of 20% to 22. We are basing our outlook on the following assumptions: load factor of approximately 86.5%, unit revenues of around $0.113 KASMEX fuel of approximately $0.058 and we're expecting an all in fuel price of $2.6 per gallon. Thank you. Daniel TapiaDirector of Investor Relations at Copa Holdings00:13:14And now we'll open the call for questions from Ashley. Operator00:13:18Thank you so much. Our first question is from Savi Syth with Raymond James. Please proceed. Savanthi SythManaging Director at Raymond James Financial00:13:49Hey, good morning, everyone, and congratulations, Peter. We look forward to working with you. Just if I might, on the suite details that you shared, it looks like the max still a little bit lower than you thought in August, but a little bit more. Is that kind of the color that Boeing is giving you? And then as you look to 2026, it looks like only six. Savanthi SythManaging Director at Raymond James Financial00:14:14So curious why the slower delivery expectation and general thoughts on how you're thinking about this capacity growth? Pedro HeilbronDirector & CEO at Copa Holdings00:14:24Right. So without making you call Boeing, So they explained the delivery schedule. We're actually okay with the schedule we're getting. So it's 13 aircraft this year, most in the second half of the year. So we'll get two in June and the other 11 in the second half of the year, but many will be in the fourth quarter and at least two of the aircraft are going to fly early in 2026. Pedro HeilbronDirector & CEO at Copa Holdings00:14:58So we could think it's 11 this year and eight in 2026 in terms of the when we're going to activate them. And we feel that's okay in terms of the opportunities we see for additional frequencies and new destinations, we're perfectly fine with that delivery schedule. Savanthi SythManaging Director at Raymond James Financial00:15:22That's helpful. And just maybe really a follow-up related to that. On the CapEx side, just is the thinking then still for this year mostly unchanged or does that move up? I think the last time it was I think that gross CapEx may be closer to $900,000,000 and cash CapEx of $350,000,000 and is that like a good way to think about next year as well? Daniel TapiaDirector of Investor Relations at Copa Holdings00:15:46Hi, it's Ali. Daniel here. So, yes, CapEx for this year, it's Pompeo chain could be a little bit lower between the $850,000,000 range. Cash CapEx, probably around $200,000,000 For next year, it's going to be lower given we have only six deliveries. So that's going to be approximately $450,000,000 next year. Savanthi SythManaging Director at Raymond James Financial00:16:09Very helpful. Thank you. Operator00:16:12Thank you. Our next question comes from the line of Duane Pfennigwerth with Evercore ISI. Please proceed. Duane PfennigwerthSenior Managing Director at Evercore ISI00:16:22Hi, good morning. I wonder if you could speak to the sequential trend in RASM relative to the fourth quarter decline and the prospects for an inflection in the back half of this year? Pedro HeilbronDirector & CEO at Copa Holdings00:16:40Okay. So as you know, we give yearly RASM guidance, not quarterly guidance. And but in general terms, our guidance and what we've seen, especially in the second half of twenty twenty four was the impact of currency weakness in our region in Brazil and a few other countries, but also additional capacity, industry capacity in general that includes our own growth and other lines in the market that are relevant to Copa, which are the ones we focus on. And we're assuming kind of the same trend to continue this year, maybe a slightly improvement in the first quarter, but overall pretty much the same trend. So you could say rightly so that there could be a positive inflection point in the second half of the year if everything goes the right way. Pedro HeilbronDirector & CEO at Copa Holdings00:17:48So we are guiding for kind of more of the same and not for a significant recuperation on currencies or strength of demand or capacity slowing down. So but if those things change, yes, the second half could be better. Duane PfennigwerthSenior Managing Director at Evercore ISI00:18:12Thank you. Operator00:18:13Thank you. One moment for our next question please. And it's from the line of Guillermo Mendez with JPMorgan. Please proceed. Guilherme MendesED - Equity Research Analyst at JP Morgan00:18:23Hey, thanks everyone and best wishes on to Peter on this new role. Pedro, you mentioned some several times about the, let's say, excessive capacity in some of the regions that you compete potentially impact yields in RASP into this year. Can you please provide more color on which regions or which routes exactly are you seeing more, let's say, overcapacity or tougher competitive environment? Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:18:50Right. So well, usually when we talk about our region, it's of course The Americas where we operate and it includes North America, Central, South And The Caribbean. And it changes obviously, there might be a country in particular, I guess, more capacity at a given time, but it usually comes from the whole region and it's hard to separate by specific countries. But what we have seen is that even though overall industry capacity has been growing somewhere between 510%, maybe in the 6% to 7% rate, which is similar to what our growth what was our growth in 2024. In some markets in particular, like for example, Brazil, Colombia, maybe a little bit in yes, Brazil and Colombia mostly, I would say, maybe Central America also. Pedro HeilbronDirector & CEO at Copa Holdings00:20:06We have seen a capacity growth more close to the 20% range. And that in some cases includes some of our own capacity, I must say. Guilherme MendesED - Equity Research Analyst at JP Morgan00:20:21Got it. Thank you. Operator00:20:24Thank you. Our next question comes from the line of Tom Fitzgerald with TD Cowen. Please proceed. Tom FitzgeraldVP - Equity Research at TD Cowen00:20:32Hi. Thanks so much for the time. Tom FitzgeraldVP - Equity Research at TD Cowen00:20:35Would you just mind updating us how you think about managing your inventory and revenue management broadly just given the FX volatility that we've seen in some of your major markets like Brazil or Mexico? Pedro HeilbronDirector & CEO at Copa Holdings00:20:50Well, it's the FX volatility we were exposed to last year was higher and the impact to the bottom line greater than what we had seen in a while. I believe the year before 2023 was almost nothing. And this year we're actually off to a better start. We have made up for some of the losses in 2024. It's mostly translational, sorry. Pedro HeilbronDirector & CEO at Copa Holdings00:21:26That was a hybrid of transactional and translational. So it's mostly translational, sorry for that again. And so it depends on our net asset value and our average net asset value. So some of the currencies have strengthened this first month of the year. So some we've made up, but it's very hard to predict. Pedro HeilbronDirector & CEO at Copa Holdings00:21:54We don't really and we I must say we price in dollars. We definitely we price in dollars, but it's sold in the local currency at the dollar exchange rate for that day. But our net asset get impacted in that translation. So we don't really plan for that and I don't think there's much we can do except for example in Brazil where we sell in installments, we do hedge half of our Brazilian sales. So of the loss that you see in our P and L, close to $5,000,000 shows up in a different line, because that's our hedge gain from our Brazilian currency hedge. Pedro HeilbronDirector & CEO at Copa Holdings00:22:45So the net impact is really closer to 28 for the year than 33. Tom FitzgeraldVP - Equity Research at TD Cowen00:22:53Okay. That's really helpful. Thanks so much for that color. And just as a follow-up, what are you hearing from some of your corporate clients and the multinationals in the region? Just how they're thinking about business travel and demand, just given all the noise around tariffs and geopolitics? Tom FitzgeraldVP - Equity Research at TD Cowen00:23:11Thanks again for the time. Pedro HeilbronDirector & CEO at Copa Holdings00:23:13Yes. We're very much in intra Latin America, U. S. To Latin America. And what we're seeing, I would say, is in terms of percent of business traffic and our corporate accounts, a flat pretty much right now year over year. Pedro HeilbronDirector & CEO at Copa Holdings00:23:35And we're expecting we're not expecting growth there. We think it's going to remain flat. I mean, there will be growth tied to our capacity, but not in share of revenue. So what we're hearing, it doesn't really change the picture in intra Latin America and U. S. Pedro HeilbronDirector & CEO at Copa Holdings00:23:55To Latin America traffic. Operator00:24:03Thank you. One moment for our next question please. And it's from Alberto Valerio with UBS. Please proceed. Alberto, your line is open. Alberto ValerioDirector - Equity Research at UBS Group00:24:21Can you hear me now? Pedro HeilbronDirector & CEO at Copa Holdings00:24:23Yes. Hi, Alberto. Yes, we hear you well. Alberto ValerioDirector - Equity Research at UBS Group00:24:27Hi. Thank you for taking my question. I had one on traffic, the guidance that you guys provide. You just released the traffic for January and become really strong. Remember that we had some issues on grounding last year. Alberto ValerioDirector - Equity Research at UBS Group00:24:44But looking forward, the seasonality base, look, the guidance was a little bit conservative. And on this assumption for the year, that is maybe January or January was one off stronger than usual for the month? Pedro HeilbronDirector & CEO at Copa Holdings00:25:09Yes. January, it's impacted by the max grounding in January 2024. So and it's a footnote in our traffic release, because of course that 20 something percent ASM growth, it's only because of that, the group grounding in January. But for the year, when we average out that for the whole year, we're guiding to 7% to 8% growth. That's based on the deliveries of the aircraft deliveries that we have scheduled for this year. Pedro HeilbronDirector & CEO at Copa Holdings00:25:43We are not expecting that to change much. And since most of the deliveries are at the end of the year, even if there were additional delays, the impact will be small in our ASM guidance for this year. Alberto ValerioDirector - Equity Research at UBS Group00:26:04Okay. And my second one is, I may, it's about the yields. You guys have been performed better than the peers lately. And I'm wondering why lately I'd say like in the past three years after that. And you mentioned that the mix did not change between The U. Alberto ValerioDirector - Equity Research at UBS Group00:26:23S. Travelers and the Latimer's travelers. But did change in this long space? We had for corporate more U. S. Alberto ValerioDirector - Equity Research at UBS Group00:26:34Travelers that you used to have before pandemic at this moment? Pedro HeilbronDirector & CEO at Copa Holdings00:26:39Yes. My answer I meant to say or to refer to the mix between business and leisure and VFR year over year from 2024 to 2025. We're not seeing a change there. From pre pandemic there have been changes and there is more U. S. Pedro HeilbronDirector & CEO at Copa Holdings00:27:03Traffic. You're right in that. And we did have a bump up in yields, which was significant right after the pandemic, when there was limited capacity and strong demand. Capacity has caught up with demand pretty much. So right now, we are kind of back right now we're back to 2019 yields in a way. Pedro HeilbronDirector & CEO at Copa Holdings00:27:31But of course our unit costs are much better. So we're delivering much better margins. And since the third quarter in twenty twenty two, we've been delivering margins over 20%, which is what we're guiding to for 2025 again. Alberto ValerioDirector - Equity Research at UBS Group00:27:56Fantastic. And welcome Peter. Operator00:28:01Thank you. One moment for our next question. It's from the line of Michael Linenberg with Deutsche Bank. Please proceed. Michael LinenbergManaging Director at Deutsche Bank00:28:09Oh, yes. Hey, good morning, everyone, and welcome aboard, Peter. I got to tell you, Pedro, you're probably one of the few airlines on this planet that you're seeing 2019 yields, but lower costs. So it's almost as if you're from another place. But with that said, I guess two questions here. Michael LinenbergManaging Director at Deutsche Bank00:28:32When I look at the schedule for Wingo in 2025, it seems like supply is actually running down a bit. And I'm not sure is Wengo what is one airplane is one airplane going into maintenance or something? Are you shrinking that fleet? Or are you just lowering the utilization given the fact that Colombia overall has been an oversupplied market? Pedro HeilbronDirector & CEO at Copa Holdings00:28:54Well, two things that have that are going on with Wingo. One is that they might be flying more they are actually flying a little bit more domestic capacity, which is shorter haul. So overall less ASMs and they do have some maintenance. So they will have some aircraft in maintenance, which they do during the low season and reduce their schedules. They adjust their schedules to compensate for maintenance aircraft. Pedro HeilbronDirector & CEO at Copa Holdings00:29:31So that's probably going on also, but they're getting a they're operating nine seven thirty seven-800s and they're getting a tenth seven thirty seven-eight hundred in the second half of the year. And their ASMs overall should be up there for that 10 aircraft and the utilization is not coming up is not coming down. Excuse me. Utilization should be highly I mean slightly up and but anyway, we of course, we don't delay we do not disclose specific Wingo information. And so you're probably looking at their published schedules. Pedro HeilbronDirector & CEO at Copa Holdings00:30:09Yes. The changes should just be that. So maybe low season cuts to cover for maintenance, but overall in the year, they will fly more, especially with the tenth aircraft they're getting in the second half of the year. Michael LinenbergManaging Director at Deutsche Bank00:30:24Okay. And then just I guess it drives a follow-up. Low season Colombia, what are those months? We're close to the Equator. I always get a little confused. Michael LinenbergManaging Director at Deutsche Bank00:30:34What would be the low season? Pedro HeilbronDirector & CEO at Copa Holdings00:30:38Like right now. Okay. Michael LinenbergManaging Director at Deutsche Bank00:30:42Okay. And Pedro HeilbronDirector & CEO at Copa Holdings00:30:44you have Easter that is April, good month. And then the second half of the year is usually better than the first half of the year. So there's less less low season in the second half of the year. Michael LinenbergManaging Director at Deutsche Bank00:31:01Okay. And then Wingo, I know you said you don't really provide results, but we know that again it's an oversupplied situation in that market, but we also know Wingo is a lower cost platform. So there may be an incentive even with additional the capacity in the region, there's other markets you can serve with Wingo that it may be there may be a natural incentive to grow Wingo given that it has maybe a better cost structure than Copa mainline. Is that accurate? Pedro HeilbronDirector & CEO at Copa Holdings00:31:29Well, it is accurate, not by a bunch by the way. Copa five point eight is pretty competitive. So not by a bunch. We haven't grown Wingo in two years. Because there is that overcapacity. Pedro HeilbronDirector & CEO at Copa Holdings00:31:47They're flowing by one plane and which is not significant. It's about 10% in the second half of the year. And just because of all the dynamics in the Colombian market, lower yields, overcapacity or new capacity and the fact that at Copa Holdings, we love bottom line profits, We just don't do crazy things. Michael LinenbergManaging Director at Deutsche Bank00:32:11Okay. Okay. And now my real follow-up because I know we got down that Wengo rabbit hole. Just on cargo, to see that you're adding another airplane, the tariff situation and global trade and all that notwithstanding, the fact is you must be very pleased with the one airplane willing to double the capacity. How should we think about cargo revenue? Michael LinenbergManaging Director at Deutsche Bank00:32:36Is that doubling over the next couple of years with the second airplane? And can you give us a sense of just like the margins or the profitability on cargo versus pure freighter, I guess I should say, versus your passenger business? Thanks for taking my questions. Pedro HeilbronDirector & CEO at Copa Holdings00:32:52Okay, yes, Mike. Well, a few things with cargo. We operate a single seven thirty seven boarding converted freighter. So it's a single claim. Still most of our cargo revenue comes from the bellies of the passenger fleet, of the passenger flight. Pedro HeilbronDirector & CEO at Copa Holdings00:33:08So most of the revenue comes from that. The cargo plane has been very successful. The margins are very high for the cargo plane, so much better than our last few planes flying the less profitable routes. But just one aircraft going to two, so it won't be a significant impact. Our current single freighter is flying over three hundred hours per month on average, which is a ton. Pedro HeilbronDirector & CEO at Copa Holdings00:33:38It's a lot for a single plane. So once we have the two planes, the average hours per plane will not be nearly as high and we'll have a more backup. So it will be profitable. The margins are good, but it's not going to be necessarily a significant impact because overall in the scheme of things is one aircraft out of 120 plus. Michael LinenbergManaging Director at Deutsche Bank00:34:06Okay. And is that one of your airplanes that's being converted or is that coming from the outside? Pedro HeilbronDirector & CEO at Copa Holdings00:34:12Actually, that's a good catch. It's coming from the outside. So because of what you said, there's a lot of availability, a lot of tanks were converted and there's not that much market right now. There is in our niche because our freighter is a niche operation, which produces cargo that we also distribute in our passenger flight. So we do have the demand, but there was availability. Pedro HeilbronDirector & CEO at Copa Holdings00:34:37So we're doing an operating lease of a freighter and that way we can keep our passenger aircraft, which we need because of the Boeing delays we all know about. Michael LinenbergManaging Director at Deutsche Bank00:34:49Great. Thanks. Sorry for the long questions, but really thank you very much. Operator00:34:54Thank you. Our next question is from the line of James Spies with Morgan Stanley. Please proceed. Jens SpiessAnalyst at Morgan Stanley00:35:02Yes, hello. Let me congrats on the appointment, Peter. Looking forward to working with you too and meeting you in person. Pedro, I have a question on the VFR in The U. S. Jens SpiessAnalyst at Morgan Stanley00:35:17We had a Mexican airline mentioning that they saw a bit of weakness since The U. S. The new administration came into office, something related to like immigration concerns. And I was wondering, obviously, you have a very different network, but if you're seeing anything along those lines along your booking curve? And also, yes, let me first start with that. Jens SpiessAnalyst at Morgan Stanley00:35:42Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:35:43No, we're not. We're not our U. S. Traffic. It has VFR and the VFR seasons, vacations, etcetera. Pedro HeilbronDirector & CEO at Copa Holdings00:35:51It also has year round leisure traffic. And actually, our U. S. Network is doing better than before. Jens SpiessAnalyst at Morgan Stanley00:36:00Okay, perfect. And just one follow-up. In terms of buybacks, I mean, considering where your leverage is and the cash you're generating, do you see any chance of accelerating a bit your buyback program, the pace? Pedro HeilbronDirector & CEO at Copa Holdings00:36:14So we have two ways we return value. We have a dividend policy, which it's usually 40% of the previous year's net income. This year, as we announced in the earnings release yesterday, we're keeping dividends at the same level as last year, which means that it won't be 40% of last year's net income, it will be 44%. And then we have a buyback program of which we also communicated that we have executed 87,000,000 out of the $200,000,000 that is approved. So we have another $113,000,000 available. Pedro HeilbronDirector & CEO at Copa Holdings00:37:01So what we do in terms of your question is that, we look at our dividend policy, we look at our available liquidity taking into account our CapEx needs given that we've had delays in Boeing deliveries. We have more liquidity than that we had that one we had projected what we had projected maybe a year or two years ago. So that's a reason for our buyback program, which is in place. And I expect that buyback program to be finalized or executed throughout this year. Jens SpiessAnalyst at Morgan Stanley00:37:44Okay, perfect. So the $200,000,000 would be complete this year. Does it have a limit, a time limit? Pedro HeilbronDirector & CEO at Copa Holdings00:37:53There's no time limit, no. Okay. No, there's not a time limit. Jens SpiessAnalyst at Morgan Stanley00:37:59All right, great. Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:38:01You bet. Operator00:38:03Thank you. Our next question comes from the line of Daniel McGinsey with Seaport Global. Please proceed. Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:38:11Hey guys, thanks for the time here. A couple of questions. First off, with respect to growth this year, can you share any perspective on the percent of growth tied to frequencies versus newer markets or just some of the thought process behind where that growth is going perhaps maybe to stronger economies in the region? Daniel TapiaDirector of Investor Relations at Copa Holdings00:38:30Hi, Dan. Daniel here. So, yes, so the 7% to 8% growth is around two thirds. It's going to be full year effect as Pedro alluded to and around another 20% is going to be frequencies and markets we fly today and then the rest is some gauge because we have a higher seat count and per aircraft and some new destinations of course. Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:38:57Okay. And second question here, I guess, Pedro, going back to the earnings overhangs that have been called out over the past year and today, I know you have been through a lot of cycles. And just sticking to what's public in the local news there with respect to the Panamanian and Venezuelan governments. First off, is the Panamanian government working with Venezuela for normalized relations at this point and again whatever is publicly available? And then just on FX, is it as simple as just letting it annualize or are there economic is there an economic growth dynamic that could offset some of that weakness faster than perhaps you would think? Pedro HeilbronDirector & CEO at Copa Holdings00:39:42Well, in terms of Venezuela, I'm not aware that there are any conversations to normalize relations. We would like to see that of course, but that's kind of like above our paycheck. And so no, I don't think there's anything going on right now. Hopefully before the year is over, it will be able to return to that very important market where we had service to five cities, 42 flights per week before the sudden cancellation at the July. So I'm hopeful that at some point, but there's no light at the end of the tunnel right now. Pedro HeilbronDirector & CEO at Copa Holdings00:40:24The FX question Alberto ValerioDirector - Equity Research at UBS Group00:40:26Yes, I just was asking go ahead. Pedro HeilbronDirector & CEO at Copa Holdings00:40:29Yes, can you repeat it? Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:40:31Yes, sorry. I was just asking if it's as simple as just letting it annualize before we see an improvement or whether there was economic growth dynamic that could offset some of that FX weakness? Pedro HeilbronDirector & CEO at Copa Holdings00:40:45Right. I mean it could it's something that's going to happen at the end of every quarter. So there could be a good guy at the end of this quarter depending on the currencies. But then at the end of the year we'll have the final number. Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:41:03I see. Okay. Thanks for the time guys. Operator00:41:07Thank you. And our last question, one moment please. Comes from Stephen Trent with Citi. Please proceed. Stephen TrentAnalyst at Citigroup00:41:17Good morning, gentlemen. Thank you very much for the time and Peter as well. Welcome and looking forward to working with you. Peter DonkerslootCFO at Copa Holdings00:41:25Thank you. Stephen TrentAnalyst at Citigroup00:41:27Kit, one or two for me. First, I was curious, when you guys think about your jet fuel, tariffs and expense, I know you don't service like Brazil domestic where jet fuel kerosene is super high, but do you have any sort of outlier markets where your jet fuel kerosene is sort of measurably more expensive than sort of the general level? Pedro HeilbronDirector & CEO at Copa Holdings00:41:53I think what's important, Stephen, is that we're not at a disadvantage anywhere. And there isn't like a market I mean, the one market that will be critical for us is our home market, our hub market here in Panama. But Panama is a competitive market due to geographic location. The logistics of Panama, we are a different shipment and point and there's a lot of storage capacity and oil companies. So we are not at a disadvantage where it's most important. Pedro HeilbronDirector & CEO at Copa Holdings00:42:39We're actually in a competitive market. So we're okay in that sense. Stephen TrentAnalyst at Citigroup00:42:45Great. Pedro, appreciate that. And maybe another kind of a follow-up to what Dan was asking. What do we think about sort of the geopolitical changes or political changes in The Americas? And one thing, people are kind of looking at are M and A and alliances and what have you. Stephen TrentAnalyst at Citigroup00:43:06And I know you and United Airlines have a very good one. Do you see any possibility to make any pivots here in terms of how much you could collaborate with them or maybe there are additional layers you could add to that today versus what you could have done over the previous four years perhaps? Pedro HeilbronDirector & CEO at Copa Holdings00:43:31Yes, we have as you mentioned, we have a very strong relationship with United that goes back twenty five years from the continental days. And I think it's pretty complete in that we co share, we have total reciprocity in our frequent flyer programs. We even at times can plan capacity additions like the San Francisco PTY service that United is going to start in May and it's going to connect their strong Asian network with Panama and from here we'll connect it with South America. So it's pretty it's not a JBA or anything like that, but we're very happy with the relationship. So I think that's really fine and in a good place. Pedro HeilbronDirector & CEO at Copa Holdings00:44:30In terms of some of the other stuff that's going on, we're always happy with where we are. We cooperate with European carriers. We cooperate with the Brazilian carriers. In that sense, we tend to do what's best for the business and in a very open minded way knowing that to cooperate is a two way street. And we try to make others better and same for ourselves, especially with airlines we do not compete against and that we can be complementary. Pedro HeilbronDirector & CEO at Copa Holdings00:45:08I don't know if I'm answering your question or I'm going against around circles, but you can be more specific if you want, Stephen. Stephen TrentAnalyst at Citigroup00:45:17No, no, that was great Pedro. Just sort of wanted to get the high level view on that. That was perfect. Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:45:24Thank you. Operator00:45:25Thank you. And this concludes our Q and A session. And I will turn it back to Pedro Hellbrunn for his final comments. Pedro HeilbronDirector & CEO at Copa Holdings00:45:34Okay. Thank you all. As always, thanks for participating in our quarterly call for your continued support. Peter will start March 10 and he'll be very available of course and he knows Copa very well. He's been with us five years and I know you will enjoy working with him. Pedro HeilbronDirector & CEO at Copa Holdings00:45:57And of course, Daniel, which did an excellent backup to Jose today. Thank you, Daniel. You know Daniel very well, so he's also available as I am myself. And maybe just to emphasize, as I've mentioned in previous calls, we've been preparing for years to be a more competitive carrier, to be able to compete with success under any manageable condition of course. And that's why we've been able to lower unit cost. Pedro HeilbronDirector & CEO at Copa Holdings00:46:34We've had total focus in lowering our unit cost and strengthening our network and having a product that is today a great advantage for coal power lines in this whole region. And that's why we've been able to deliver strong results. It's something that we're confident we can continue doing in 2025 and beyond. So thank you all and we're here and see you in the next call. Operator00:47:02And ladies and gentlemen, thank you for your participation. That concludes the presentation. You may now disconnect and have a wonderful day.Read moreParticipantsExecutivesDaniel TapiaDirector of Investor RelationsPedro HeilbronDirector & CEOPeter DonkerslootCFOAnalystsSavanthi SythManaging Director at Raymond James FinancialDuane PfennigwerthSenior Managing Director at Evercore ISIGuilherme MendesED - Equity Research Analyst at JP MorganTom FitzgeraldVP - Equity Research at TD CowenAlberto ValerioDirector - Equity Research at UBS GroupMichael LinenbergManaging Director at Deutsche BankJens SpiessAnalyst at Morgan StanleyDaniel McKenzieEquity Research Analyst at Seaport Research PartnersStephen TrentAnalyst at CitigroupPowered by Conference Call Audio Live Call not available Earnings Conference CallCopa Q4 202400:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsPress Release(8-K)Annual report(20-F) Copa Earnings HeadlinesCopa Holdings: This Is What A Margin Of Safety Looks LikeApril 30 at 5:06 AM | seekingalpha.comCopa Holdings: This Is What A Margin Of Safety Looks LikeApril 30 at 5:03 AM | seekingalpha.comWatch This Robotics Demo Before July 23rdJeff Brown, the tech legend who picked shares of Nvidia in 2016 before they jumped by more than 22,000%... Just did a demo of what Nvidia’s CEO said will be "the first multitrillion-dollar robotics industry."May 1, 2025 | Brownstone Research (Ad)Copa Holdings, S.A. Files Annual Report Form 20-F for Fiscal Year 2024April 29 at 9:11 AM | quiverquant.comCopa Holdings Files Annual Report Form 20-FApril 29 at 8:55 AM | globenewswire.comIs Barcelona v Real Madrid on TV? Kick-off time, channel and how to watch Copa del Rey finalApril 26, 2025 | msn.comSee More Copa Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Copa? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Copa and other key companies, straight to your email. Email Address About CopaCopa (NYSE:CPA), through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 375 daily scheduled flights to 82 destinations in 32 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 31, 2023, it operated a fleet of 106 aircraft comprising 76 Boeing 737-Next Generation aircraft, 29 Boeing 737 MAX 9 aircraft, and one Boeing 737-800 Boeing Converted Freighter. The company was founded in 1947 and is based in Panama City, Panama.View Copa ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Microsoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of EarningsAmazon's Earnings Will Make or Break the Stock's Comeback CrowdStrike Stock Nears Record High, Dip Ahead of Earnings?Alphabet Rebounds After Strong Earnings and Buyback AnnouncementMarkets Think Robinhood Earnings Could Send the Stock Up Upcoming Earnings Apollo Global Management (5/2/2025)The Cigna Group (5/2/2025)Chevron (5/2/2025)Eaton (5/2/2025)NatWest Group (5/2/2025)Shell (5/2/2025)Exxon Mobil (5/2/2025)Palantir Technologies (5/5/2025)Vertex Pharmaceuticals (5/5/2025)CRH (5/5/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings Fourth Quarter Earnings Call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this call is being webcast and recorded on 02/13/2025. Operator00:00:26Now, I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin. Daniel TapiaDirector of Investor Relations at Copa Holdings00:00:34Thank you, Carmen, and welcome everyone to our fourth quarter and full year earnings call. Joining me today are Pedro Hedron, CEO of Copa Holdings and Peter Dankerslott, who was recently appointed as the company's CFO. First, Pedro will start by going over our fourth quarter and full year highlights. Afterwards, I will go over our financial highlights. Immediately after, we will open the call for questions from analysts. Daniel TapiaDirector of Investor Relations at Copa Holdings00:01:02Copa Holdings' financial reports have been prepared in accordance with international financial reporting standards. In today's call, we will discuss non IFRS financial measures. A reconciliation of the non IFRS to IFRS financial measures can be found in our earnings release, which has been posted on the company's website, copair.com. Our discussion today will also contain forward looking statements not limited to historical facts that reflect the company's current beliefs, expectations and or intentions regarding future events and results. These forward looking statements involve risks and uncertainties that could cause actual results to differ materially and are based on assumptions subject to change. Daniel TapiaDirector of Investor Relations at Copa Holdings00:01:49Many of these are discussed in our annual report filed with the SEC. Now, I'd like to turn the call over to our CEO, Mr. Pedro Hedron. Pedro HeilbronDirector & CEO at Copa Holdings00:01:58Thank you, Daniel. Good morning to all and thanks for participating in our fourth quarter and full year earnings call. Before I start, I want to welcome Peter Donkerslod into his new role as CFO. Peter has a strong record of leadership and strategic vision, having held key positions with full P and L responsibility in multiple countries across the continent for a large publicly traded company and for the last five years as Copa Head of HR, where he has been an integral part of our success coming out of the pandemic. His understanding of our operations and company culture combined with his strong financial acumen makes him uniquely qualified to lead our financial strategy as we continue to grow and evolve in a rapidly changing industry. Pedro HeilbronDirector & CEO at Copa Holdings00:02:53We're excited to have him step into this new role and look forward to the positive impact he will undoubtedly bring. Peter will officially join the finance team on March 10, following his transition from his current role in HR. Peter, I'll turn it over to you. Peter DonkerslootCFO at Copa Holdings00:03:12Thank you, Pedro, and thanks everybody for joining our call today. It has been a great honor to lead Copa's HR team for the last five years, and I'm truly excited to take on the role of CFO. As Pedro mentioned, in addition to my most recent experience leading the HR team, I've worked in many countries through the continent as General Manager as well as overseeing commercial operations, logistic, risk assessment and financial planning. As you can imagine, as a Panamanian, I'm very proud to be part of Copa's management team, especially given our track record of delivering product and connectivity our customers value combined with strong financial results and industry leading unit cost. I'm eager to lead our finance team in building on the strong foundations and continue to delivering value to our shareholders. Peter DonkerslootCFO at Copa Holdings00:04:03Back to Peter DonkerslootCFO at Copa Holdings00:04:04you, Pedro. Pedro HeilbronDirector & CEO at Copa Holdings00:04:05Thank you, Peter. I want to start by expressing my sincere appreciation to all of our co workers. Their dedication and hard work have been essential to Copa's leadership in Latin American aviation and strong financial results. To them as always my highest regards and admiration. Pedro HeilbronDirector & CEO at Copa Holdings00:04:26As detailed in our earnings release, we delivered another quarter and full year of solid financial performance, including strong operating margins. Despite facing several challenges throughout the year, such as the partial grounding of our seven thirty seven MAX nine fleet in January and the sudden cancellation of flights between Panama and Venezuela at the July, we were able to deliver an operating margin of 21.9% for the year. Our 2024 financial results are a testament to the disciplined execution of our business model, our focus on low unit cost, continued expansion of our leading hub of The Americas and a passenger friendly product including best on time performance. The combination of these factors has allowed us to deliver strong financial results on a consistent basis. Now, I'll go over the main highlights for the fourth quarter. Pedro HeilbronDirector & CEO at Copa Holdings00:05:33We increased capacity by 7.2% year over year. Unit revenues or RASM came in at $0.113 a 10.4% decrease compared to Q4 twenty twenty three, mainly driven by 10.8% year over year decrease in passenger yields. The yield reduction was mainly driven by weaker currencies in Latin America as well as increased industry capacity in the region. Unit revenues were also impacted by the ongoing effect of the rescheduling of flights due to the cancellation of the Panama Venezuela operations at the July. Unit cost excluding fuel or CASM X came in at $0.059 a 2.6% improvement compared to Q4 twenty twenty three, mainly driven by the increase of direct sales in both Copa dot com and our lower cost NDC travel agency channel. Pedro HeilbronDirector & CEO at Copa Holdings00:06:38Our operating margin for the quarter came in at 23.3%. As for the full year 2024, capacity increased by 8.6% year over year, in line with our last guidance. Unit revenues or RASM decreased by 8.2% compared to 2023 to $0.115 CASA mixed fuel came in at $0.058 3 percent below 2023. This is a milestone achievement for us as we delivered our full year CasaMex target one year earlier than stated in our twenty twenty three Investor Day. And as I mentioned in my opening remarks, we achieved a 21.9% operating margin for the year. Pedro HeilbronDirector & CEO at Copa Holdings00:07:31On the operational front, Copa was recently recognized by Cerium for the tenth time as the most on time airline in Latin America for 2024. Copa's on time performance of 88.2% was once again the highest of any carrier in The Americas and the third best in the world. Additionally, for 2024 Copa was recognized by SkyTrax for the ninth consecutive year as the best airline in Central America and The Caribbean. These awards belong to our more than 8,000 co workers, who day in and day out consistently deliver a world class travel experience for our customers. Turning over to our expectations for 2025. Pedro HeilbronDirector & CEO at Copa Holdings00:08:23In terms of demand, we're projecting a continuation of the current demand environment in the region. On the cost front, we expect to deliver consistent unit cost year over year maintaining our cost discipline. These two factors together lead us to once again expect to deliver strong margins for the year as well as continued growth as we anticipate growing our year over year capacity within a range of 7% to 8%. Daniel will provide more details regarding our full year guidance. To summarize, we delivered strong fourth quarter and full year 2024 financial results. Pedro HeilbronDirector & CEO at Copa Holdings00:09:08We continue to execute on our cost efficiencies, which remain key to our strategy going forward. We will keep growing our network, the most complete and convenient hub for travel in The Americas. We expect to deliver strong financial results in 2025. And as always, our team continues to deliver world leading operational results and a passenger friendly product. Now, I'll pass it over to Daniel, who will go over our financial highlights. Daniel TapiaDirector of Investor Relations at Copa Holdings00:09:40Thank you, Pedro. We reported a net profit for Q4 of $166,200,000 or $3.99 per share. For the full year, our net profit came in at $608,500,000 or $14.56 per share. In terms of operating income, we reported an operating profit for the quarter of $204,200,000 and an operating margin of 23.3%. Our operating profit for the full year came in at $753,400,000 and 21.9% of operating margin. Daniel TapiaDirector of Investor Relations at Copa Holdings00:10:21Turning now to our balance sheet. As of the end of the year, we had over $1,400,000,000 in cash short and long term investments, which represents 42% of the company's last twelve months revenues. In terms of debt, we ended the year with $2,000,000,000 in debt and lease liabilities and adjusted net debt to EBITDA ratio of 0.5 times. Our average cost of debt entirely related to aircraft financing remains highly competitive at an average rate of 3.5%. Approximately 65% of this debt is fixed rate. Daniel TapiaDirector of Investor Relations at Copa Holdings00:11:00Regarding our fleet, we received two additional seven MAX-8s in the fourth quarter to end the year with a total fleet of 112 aircraft. Looking ahead to 2025, we expect to receive 13 additional seven thirty seven MAX 8s starting with two in June and one additional Boeing seven thirty seven-eight hundred freighter. With these additions, we expect the year end fleet to reach 126 aircraft. As of now, we have secured an operating lease agreement for the additional freighter in financing for three of the Boeing seven thirty seven MAX eight deliveries via Joco financing. Turning now to the return of value to our shareholders, I'm pleased to announce that for 2025, the Board of Directors has approved a quarterly dividend payment of $1.61 per share to be paid in the month of March, June, September and December, subject to the board ratification each quarter. Daniel TapiaDirector of Investor Relations at Copa Holdings00:11:56I'd like to highlight that this maintains last year's dividend payout. The first quarterly payment will be made on March 14 to all shareholders of record as of February 28. Furthermore, during 2024, the company has repurchased $87,000,000 of its ongoing 200,000,000 share repurchase program, which represented approximately 2% of the total outstanding shares as of the end of twenty twenty four. '30 '7 million dollars of the $87,000,000 were executed in the fourth quarter. Finally, turning to our outlook. Daniel TapiaDirector of Investor Relations at Copa Holdings00:12:35Consistent with what Pedro shared, we can provide the following guidance for the full year 2025. We expect to increase our capacity in ASMs within a range of 7% to 8% year over year. And we expect to deliver an operating margin within a range of 20% to 22. We are basing our outlook on the following assumptions: load factor of approximately 86.5%, unit revenues of around $0.113 KASMEX fuel of approximately $0.058 and we're expecting an all in fuel price of $2.6 per gallon. Thank you. Daniel TapiaDirector of Investor Relations at Copa Holdings00:13:14And now we'll open the call for questions from Ashley. Operator00:13:18Thank you so much. Our first question is from Savi Syth with Raymond James. Please proceed. Savanthi SythManaging Director at Raymond James Financial00:13:49Hey, good morning, everyone, and congratulations, Peter. We look forward to working with you. Just if I might, on the suite details that you shared, it looks like the max still a little bit lower than you thought in August, but a little bit more. Is that kind of the color that Boeing is giving you? And then as you look to 2026, it looks like only six. Savanthi SythManaging Director at Raymond James Financial00:14:14So curious why the slower delivery expectation and general thoughts on how you're thinking about this capacity growth? Pedro HeilbronDirector & CEO at Copa Holdings00:14:24Right. So without making you call Boeing, So they explained the delivery schedule. We're actually okay with the schedule we're getting. So it's 13 aircraft this year, most in the second half of the year. So we'll get two in June and the other 11 in the second half of the year, but many will be in the fourth quarter and at least two of the aircraft are going to fly early in 2026. Pedro HeilbronDirector & CEO at Copa Holdings00:14:58So we could think it's 11 this year and eight in 2026 in terms of the when we're going to activate them. And we feel that's okay in terms of the opportunities we see for additional frequencies and new destinations, we're perfectly fine with that delivery schedule. Savanthi SythManaging Director at Raymond James Financial00:15:22That's helpful. And just maybe really a follow-up related to that. On the CapEx side, just is the thinking then still for this year mostly unchanged or does that move up? I think the last time it was I think that gross CapEx may be closer to $900,000,000 and cash CapEx of $350,000,000 and is that like a good way to think about next year as well? Daniel TapiaDirector of Investor Relations at Copa Holdings00:15:46Hi, it's Ali. Daniel here. So, yes, CapEx for this year, it's Pompeo chain could be a little bit lower between the $850,000,000 range. Cash CapEx, probably around $200,000,000 For next year, it's going to be lower given we have only six deliveries. So that's going to be approximately $450,000,000 next year. Savanthi SythManaging Director at Raymond James Financial00:16:09Very helpful. Thank you. Operator00:16:12Thank you. Our next question comes from the line of Duane Pfennigwerth with Evercore ISI. Please proceed. Duane PfennigwerthSenior Managing Director at Evercore ISI00:16:22Hi, good morning. I wonder if you could speak to the sequential trend in RASM relative to the fourth quarter decline and the prospects for an inflection in the back half of this year? Pedro HeilbronDirector & CEO at Copa Holdings00:16:40Okay. So as you know, we give yearly RASM guidance, not quarterly guidance. And but in general terms, our guidance and what we've seen, especially in the second half of twenty twenty four was the impact of currency weakness in our region in Brazil and a few other countries, but also additional capacity, industry capacity in general that includes our own growth and other lines in the market that are relevant to Copa, which are the ones we focus on. And we're assuming kind of the same trend to continue this year, maybe a slightly improvement in the first quarter, but overall pretty much the same trend. So you could say rightly so that there could be a positive inflection point in the second half of the year if everything goes the right way. Pedro HeilbronDirector & CEO at Copa Holdings00:17:48So we are guiding for kind of more of the same and not for a significant recuperation on currencies or strength of demand or capacity slowing down. So but if those things change, yes, the second half could be better. Duane PfennigwerthSenior Managing Director at Evercore ISI00:18:12Thank you. Operator00:18:13Thank you. One moment for our next question please. And it's from the line of Guillermo Mendez with JPMorgan. Please proceed. Guilherme MendesED - Equity Research Analyst at JP Morgan00:18:23Hey, thanks everyone and best wishes on to Peter on this new role. Pedro, you mentioned some several times about the, let's say, excessive capacity in some of the regions that you compete potentially impact yields in RASP into this year. Can you please provide more color on which regions or which routes exactly are you seeing more, let's say, overcapacity or tougher competitive environment? Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:18:50Right. So well, usually when we talk about our region, it's of course The Americas where we operate and it includes North America, Central, South And The Caribbean. And it changes obviously, there might be a country in particular, I guess, more capacity at a given time, but it usually comes from the whole region and it's hard to separate by specific countries. But what we have seen is that even though overall industry capacity has been growing somewhere between 510%, maybe in the 6% to 7% rate, which is similar to what our growth what was our growth in 2024. In some markets in particular, like for example, Brazil, Colombia, maybe a little bit in yes, Brazil and Colombia mostly, I would say, maybe Central America also. Pedro HeilbronDirector & CEO at Copa Holdings00:20:06We have seen a capacity growth more close to the 20% range. And that in some cases includes some of our own capacity, I must say. Guilherme MendesED - Equity Research Analyst at JP Morgan00:20:21Got it. Thank you. Operator00:20:24Thank you. Our next question comes from the line of Tom Fitzgerald with TD Cowen. Please proceed. Tom FitzgeraldVP - Equity Research at TD Cowen00:20:32Hi. Thanks so much for the time. Tom FitzgeraldVP - Equity Research at TD Cowen00:20:35Would you just mind updating us how you think about managing your inventory and revenue management broadly just given the FX volatility that we've seen in some of your major markets like Brazil or Mexico? Pedro HeilbronDirector & CEO at Copa Holdings00:20:50Well, it's the FX volatility we were exposed to last year was higher and the impact to the bottom line greater than what we had seen in a while. I believe the year before 2023 was almost nothing. And this year we're actually off to a better start. We have made up for some of the losses in 2024. It's mostly translational, sorry. Pedro HeilbronDirector & CEO at Copa Holdings00:21:26That was a hybrid of transactional and translational. So it's mostly translational, sorry for that again. And so it depends on our net asset value and our average net asset value. So some of the currencies have strengthened this first month of the year. So some we've made up, but it's very hard to predict. Pedro HeilbronDirector & CEO at Copa Holdings00:21:54We don't really and we I must say we price in dollars. We definitely we price in dollars, but it's sold in the local currency at the dollar exchange rate for that day. But our net asset get impacted in that translation. So we don't really plan for that and I don't think there's much we can do except for example in Brazil where we sell in installments, we do hedge half of our Brazilian sales. So of the loss that you see in our P and L, close to $5,000,000 shows up in a different line, because that's our hedge gain from our Brazilian currency hedge. Pedro HeilbronDirector & CEO at Copa Holdings00:22:45So the net impact is really closer to 28 for the year than 33. Tom FitzgeraldVP - Equity Research at TD Cowen00:22:53Okay. That's really helpful. Thanks so much for that color. And just as a follow-up, what are you hearing from some of your corporate clients and the multinationals in the region? Just how they're thinking about business travel and demand, just given all the noise around tariffs and geopolitics? Tom FitzgeraldVP - Equity Research at TD Cowen00:23:11Thanks again for the time. Pedro HeilbronDirector & CEO at Copa Holdings00:23:13Yes. We're very much in intra Latin America, U. S. To Latin America. And what we're seeing, I would say, is in terms of percent of business traffic and our corporate accounts, a flat pretty much right now year over year. Pedro HeilbronDirector & CEO at Copa Holdings00:23:35And we're expecting we're not expecting growth there. We think it's going to remain flat. I mean, there will be growth tied to our capacity, but not in share of revenue. So what we're hearing, it doesn't really change the picture in intra Latin America and U. S. Pedro HeilbronDirector & CEO at Copa Holdings00:23:55To Latin America traffic. Operator00:24:03Thank you. One moment for our next question please. And it's from Alberto Valerio with UBS. Please proceed. Alberto, your line is open. Alberto ValerioDirector - Equity Research at UBS Group00:24:21Can you hear me now? Pedro HeilbronDirector & CEO at Copa Holdings00:24:23Yes. Hi, Alberto. Yes, we hear you well. Alberto ValerioDirector - Equity Research at UBS Group00:24:27Hi. Thank you for taking my question. I had one on traffic, the guidance that you guys provide. You just released the traffic for January and become really strong. Remember that we had some issues on grounding last year. Alberto ValerioDirector - Equity Research at UBS Group00:24:44But looking forward, the seasonality base, look, the guidance was a little bit conservative. And on this assumption for the year, that is maybe January or January was one off stronger than usual for the month? Pedro HeilbronDirector & CEO at Copa Holdings00:25:09Yes. January, it's impacted by the max grounding in January 2024. So and it's a footnote in our traffic release, because of course that 20 something percent ASM growth, it's only because of that, the group grounding in January. But for the year, when we average out that for the whole year, we're guiding to 7% to 8% growth. That's based on the deliveries of the aircraft deliveries that we have scheduled for this year. Pedro HeilbronDirector & CEO at Copa Holdings00:25:43We are not expecting that to change much. And since most of the deliveries are at the end of the year, even if there were additional delays, the impact will be small in our ASM guidance for this year. Alberto ValerioDirector - Equity Research at UBS Group00:26:04Okay. And my second one is, I may, it's about the yields. You guys have been performed better than the peers lately. And I'm wondering why lately I'd say like in the past three years after that. And you mentioned that the mix did not change between The U. Alberto ValerioDirector - Equity Research at UBS Group00:26:23S. Travelers and the Latimer's travelers. But did change in this long space? We had for corporate more U. S. Alberto ValerioDirector - Equity Research at UBS Group00:26:34Travelers that you used to have before pandemic at this moment? Pedro HeilbronDirector & CEO at Copa Holdings00:26:39Yes. My answer I meant to say or to refer to the mix between business and leisure and VFR year over year from 2024 to 2025. We're not seeing a change there. From pre pandemic there have been changes and there is more U. S. Pedro HeilbronDirector & CEO at Copa Holdings00:27:03Traffic. You're right in that. And we did have a bump up in yields, which was significant right after the pandemic, when there was limited capacity and strong demand. Capacity has caught up with demand pretty much. So right now, we are kind of back right now we're back to 2019 yields in a way. Pedro HeilbronDirector & CEO at Copa Holdings00:27:31But of course our unit costs are much better. So we're delivering much better margins. And since the third quarter in twenty twenty two, we've been delivering margins over 20%, which is what we're guiding to for 2025 again. Alberto ValerioDirector - Equity Research at UBS Group00:27:56Fantastic. And welcome Peter. Operator00:28:01Thank you. One moment for our next question. It's from the line of Michael Linenberg with Deutsche Bank. Please proceed. Michael LinenbergManaging Director at Deutsche Bank00:28:09Oh, yes. Hey, good morning, everyone, and welcome aboard, Peter. I got to tell you, Pedro, you're probably one of the few airlines on this planet that you're seeing 2019 yields, but lower costs. So it's almost as if you're from another place. But with that said, I guess two questions here. Michael LinenbergManaging Director at Deutsche Bank00:28:32When I look at the schedule for Wingo in 2025, it seems like supply is actually running down a bit. And I'm not sure is Wengo what is one airplane is one airplane going into maintenance or something? Are you shrinking that fleet? Or are you just lowering the utilization given the fact that Colombia overall has been an oversupplied market? Pedro HeilbronDirector & CEO at Copa Holdings00:28:54Well, two things that have that are going on with Wingo. One is that they might be flying more they are actually flying a little bit more domestic capacity, which is shorter haul. So overall less ASMs and they do have some maintenance. So they will have some aircraft in maintenance, which they do during the low season and reduce their schedules. They adjust their schedules to compensate for maintenance aircraft. Pedro HeilbronDirector & CEO at Copa Holdings00:29:31So that's probably going on also, but they're getting a they're operating nine seven thirty seven-800s and they're getting a tenth seven thirty seven-eight hundred in the second half of the year. And their ASMs overall should be up there for that 10 aircraft and the utilization is not coming up is not coming down. Excuse me. Utilization should be highly I mean slightly up and but anyway, we of course, we don't delay we do not disclose specific Wingo information. And so you're probably looking at their published schedules. Pedro HeilbronDirector & CEO at Copa Holdings00:30:09Yes. The changes should just be that. So maybe low season cuts to cover for maintenance, but overall in the year, they will fly more, especially with the tenth aircraft they're getting in the second half of the year. Michael LinenbergManaging Director at Deutsche Bank00:30:24Okay. And then just I guess it drives a follow-up. Low season Colombia, what are those months? We're close to the Equator. I always get a little confused. Michael LinenbergManaging Director at Deutsche Bank00:30:34What would be the low season? Pedro HeilbronDirector & CEO at Copa Holdings00:30:38Like right now. Okay. Michael LinenbergManaging Director at Deutsche Bank00:30:42Okay. And Pedro HeilbronDirector & CEO at Copa Holdings00:30:44you have Easter that is April, good month. And then the second half of the year is usually better than the first half of the year. So there's less less low season in the second half of the year. Michael LinenbergManaging Director at Deutsche Bank00:31:01Okay. And then Wingo, I know you said you don't really provide results, but we know that again it's an oversupplied situation in that market, but we also know Wingo is a lower cost platform. So there may be an incentive even with additional the capacity in the region, there's other markets you can serve with Wingo that it may be there may be a natural incentive to grow Wingo given that it has maybe a better cost structure than Copa mainline. Is that accurate? Pedro HeilbronDirector & CEO at Copa Holdings00:31:29Well, it is accurate, not by a bunch by the way. Copa five point eight is pretty competitive. So not by a bunch. We haven't grown Wingo in two years. Because there is that overcapacity. Pedro HeilbronDirector & CEO at Copa Holdings00:31:47They're flowing by one plane and which is not significant. It's about 10% in the second half of the year. And just because of all the dynamics in the Colombian market, lower yields, overcapacity or new capacity and the fact that at Copa Holdings, we love bottom line profits, We just don't do crazy things. Michael LinenbergManaging Director at Deutsche Bank00:32:11Okay. Okay. And now my real follow-up because I know we got down that Wengo rabbit hole. Just on cargo, to see that you're adding another airplane, the tariff situation and global trade and all that notwithstanding, the fact is you must be very pleased with the one airplane willing to double the capacity. How should we think about cargo revenue? Michael LinenbergManaging Director at Deutsche Bank00:32:36Is that doubling over the next couple of years with the second airplane? And can you give us a sense of just like the margins or the profitability on cargo versus pure freighter, I guess I should say, versus your passenger business? Thanks for taking my questions. Pedro HeilbronDirector & CEO at Copa Holdings00:32:52Okay, yes, Mike. Well, a few things with cargo. We operate a single seven thirty seven boarding converted freighter. So it's a single claim. Still most of our cargo revenue comes from the bellies of the passenger fleet, of the passenger flight. Pedro HeilbronDirector & CEO at Copa Holdings00:33:08So most of the revenue comes from that. The cargo plane has been very successful. The margins are very high for the cargo plane, so much better than our last few planes flying the less profitable routes. But just one aircraft going to two, so it won't be a significant impact. Our current single freighter is flying over three hundred hours per month on average, which is a ton. Pedro HeilbronDirector & CEO at Copa Holdings00:33:38It's a lot for a single plane. So once we have the two planes, the average hours per plane will not be nearly as high and we'll have a more backup. So it will be profitable. The margins are good, but it's not going to be necessarily a significant impact because overall in the scheme of things is one aircraft out of 120 plus. Michael LinenbergManaging Director at Deutsche Bank00:34:06Okay. And is that one of your airplanes that's being converted or is that coming from the outside? Pedro HeilbronDirector & CEO at Copa Holdings00:34:12Actually, that's a good catch. It's coming from the outside. So because of what you said, there's a lot of availability, a lot of tanks were converted and there's not that much market right now. There is in our niche because our freighter is a niche operation, which produces cargo that we also distribute in our passenger flight. So we do have the demand, but there was availability. Pedro HeilbronDirector & CEO at Copa Holdings00:34:37So we're doing an operating lease of a freighter and that way we can keep our passenger aircraft, which we need because of the Boeing delays we all know about. Michael LinenbergManaging Director at Deutsche Bank00:34:49Great. Thanks. Sorry for the long questions, but really thank you very much. Operator00:34:54Thank you. Our next question is from the line of James Spies with Morgan Stanley. Please proceed. Jens SpiessAnalyst at Morgan Stanley00:35:02Yes, hello. Let me congrats on the appointment, Peter. Looking forward to working with you too and meeting you in person. Pedro, I have a question on the VFR in The U. S. Jens SpiessAnalyst at Morgan Stanley00:35:17We had a Mexican airline mentioning that they saw a bit of weakness since The U. S. The new administration came into office, something related to like immigration concerns. And I was wondering, obviously, you have a very different network, but if you're seeing anything along those lines along your booking curve? And also, yes, let me first start with that. Jens SpiessAnalyst at Morgan Stanley00:35:42Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:35:43No, we're not. We're not our U. S. Traffic. It has VFR and the VFR seasons, vacations, etcetera. Pedro HeilbronDirector & CEO at Copa Holdings00:35:51It also has year round leisure traffic. And actually, our U. S. Network is doing better than before. Jens SpiessAnalyst at Morgan Stanley00:36:00Okay, perfect. And just one follow-up. In terms of buybacks, I mean, considering where your leverage is and the cash you're generating, do you see any chance of accelerating a bit your buyback program, the pace? Pedro HeilbronDirector & CEO at Copa Holdings00:36:14So we have two ways we return value. We have a dividend policy, which it's usually 40% of the previous year's net income. This year, as we announced in the earnings release yesterday, we're keeping dividends at the same level as last year, which means that it won't be 40% of last year's net income, it will be 44%. And then we have a buyback program of which we also communicated that we have executed 87,000,000 out of the $200,000,000 that is approved. So we have another $113,000,000 available. Pedro HeilbronDirector & CEO at Copa Holdings00:37:01So what we do in terms of your question is that, we look at our dividend policy, we look at our available liquidity taking into account our CapEx needs given that we've had delays in Boeing deliveries. We have more liquidity than that we had that one we had projected what we had projected maybe a year or two years ago. So that's a reason for our buyback program, which is in place. And I expect that buyback program to be finalized or executed throughout this year. Jens SpiessAnalyst at Morgan Stanley00:37:44Okay, perfect. So the $200,000,000 would be complete this year. Does it have a limit, a time limit? Pedro HeilbronDirector & CEO at Copa Holdings00:37:53There's no time limit, no. Okay. No, there's not a time limit. Jens SpiessAnalyst at Morgan Stanley00:37:59All right, great. Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:38:01You bet. Operator00:38:03Thank you. Our next question comes from the line of Daniel McGinsey with Seaport Global. Please proceed. Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:38:11Hey guys, thanks for the time here. A couple of questions. First off, with respect to growth this year, can you share any perspective on the percent of growth tied to frequencies versus newer markets or just some of the thought process behind where that growth is going perhaps maybe to stronger economies in the region? Daniel TapiaDirector of Investor Relations at Copa Holdings00:38:30Hi, Dan. Daniel here. So, yes, so the 7% to 8% growth is around two thirds. It's going to be full year effect as Pedro alluded to and around another 20% is going to be frequencies and markets we fly today and then the rest is some gauge because we have a higher seat count and per aircraft and some new destinations of course. Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:38:57Okay. And second question here, I guess, Pedro, going back to the earnings overhangs that have been called out over the past year and today, I know you have been through a lot of cycles. And just sticking to what's public in the local news there with respect to the Panamanian and Venezuelan governments. First off, is the Panamanian government working with Venezuela for normalized relations at this point and again whatever is publicly available? And then just on FX, is it as simple as just letting it annualize or are there economic is there an economic growth dynamic that could offset some of that weakness faster than perhaps you would think? Pedro HeilbronDirector & CEO at Copa Holdings00:39:42Well, in terms of Venezuela, I'm not aware that there are any conversations to normalize relations. We would like to see that of course, but that's kind of like above our paycheck. And so no, I don't think there's anything going on right now. Hopefully before the year is over, it will be able to return to that very important market where we had service to five cities, 42 flights per week before the sudden cancellation at the July. So I'm hopeful that at some point, but there's no light at the end of the tunnel right now. Pedro HeilbronDirector & CEO at Copa Holdings00:40:24The FX question Alberto ValerioDirector - Equity Research at UBS Group00:40:26Yes, I just was asking go ahead. Pedro HeilbronDirector & CEO at Copa Holdings00:40:29Yes, can you repeat it? Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:40:31Yes, sorry. I was just asking if it's as simple as just letting it annualize before we see an improvement or whether there was economic growth dynamic that could offset some of that FX weakness? Pedro HeilbronDirector & CEO at Copa Holdings00:40:45Right. I mean it could it's something that's going to happen at the end of every quarter. So there could be a good guy at the end of this quarter depending on the currencies. But then at the end of the year we'll have the final number. Daniel McKenzieEquity Research Analyst at Seaport Research Partners00:41:03I see. Okay. Thanks for the time guys. Operator00:41:07Thank you. And our last question, one moment please. Comes from Stephen Trent with Citi. Please proceed. Stephen TrentAnalyst at Citigroup00:41:17Good morning, gentlemen. Thank you very much for the time and Peter as well. Welcome and looking forward to working with you. Peter DonkerslootCFO at Copa Holdings00:41:25Thank you. Stephen TrentAnalyst at Citigroup00:41:27Kit, one or two for me. First, I was curious, when you guys think about your jet fuel, tariffs and expense, I know you don't service like Brazil domestic where jet fuel kerosene is super high, but do you have any sort of outlier markets where your jet fuel kerosene is sort of measurably more expensive than sort of the general level? Pedro HeilbronDirector & CEO at Copa Holdings00:41:53I think what's important, Stephen, is that we're not at a disadvantage anywhere. And there isn't like a market I mean, the one market that will be critical for us is our home market, our hub market here in Panama. But Panama is a competitive market due to geographic location. The logistics of Panama, we are a different shipment and point and there's a lot of storage capacity and oil companies. So we are not at a disadvantage where it's most important. Pedro HeilbronDirector & CEO at Copa Holdings00:42:39We're actually in a competitive market. So we're okay in that sense. Stephen TrentAnalyst at Citigroup00:42:45Great. Pedro, appreciate that. And maybe another kind of a follow-up to what Dan was asking. What do we think about sort of the geopolitical changes or political changes in The Americas? And one thing, people are kind of looking at are M and A and alliances and what have you. Stephen TrentAnalyst at Citigroup00:43:06And I know you and United Airlines have a very good one. Do you see any possibility to make any pivots here in terms of how much you could collaborate with them or maybe there are additional layers you could add to that today versus what you could have done over the previous four years perhaps? Pedro HeilbronDirector & CEO at Copa Holdings00:43:31Yes, we have as you mentioned, we have a very strong relationship with United that goes back twenty five years from the continental days. And I think it's pretty complete in that we co share, we have total reciprocity in our frequent flyer programs. We even at times can plan capacity additions like the San Francisco PTY service that United is going to start in May and it's going to connect their strong Asian network with Panama and from here we'll connect it with South America. So it's pretty it's not a JBA or anything like that, but we're very happy with the relationship. So I think that's really fine and in a good place. Pedro HeilbronDirector & CEO at Copa Holdings00:44:30In terms of some of the other stuff that's going on, we're always happy with where we are. We cooperate with European carriers. We cooperate with the Brazilian carriers. In that sense, we tend to do what's best for the business and in a very open minded way knowing that to cooperate is a two way street. And we try to make others better and same for ourselves, especially with airlines we do not compete against and that we can be complementary. Pedro HeilbronDirector & CEO at Copa Holdings00:45:08I don't know if I'm answering your question or I'm going against around circles, but you can be more specific if you want, Stephen. Stephen TrentAnalyst at Citigroup00:45:17No, no, that was great Pedro. Just sort of wanted to get the high level view on that. That was perfect. Thank you. Pedro HeilbronDirector & CEO at Copa Holdings00:45:24Thank you. Operator00:45:25Thank you. And this concludes our Q and A session. And I will turn it back to Pedro Hellbrunn for his final comments. Pedro HeilbronDirector & CEO at Copa Holdings00:45:34Okay. Thank you all. As always, thanks for participating in our quarterly call for your continued support. Peter will start March 10 and he'll be very available of course and he knows Copa very well. He's been with us five years and I know you will enjoy working with him. Pedro HeilbronDirector & CEO at Copa Holdings00:45:57And of course, Daniel, which did an excellent backup to Jose today. Thank you, Daniel. You know Daniel very well, so he's also available as I am myself. And maybe just to emphasize, as I've mentioned in previous calls, we've been preparing for years to be a more competitive carrier, to be able to compete with success under any manageable condition of course. And that's why we've been able to lower unit cost. Pedro HeilbronDirector & CEO at Copa Holdings00:46:34We've had total focus in lowering our unit cost and strengthening our network and having a product that is today a great advantage for coal power lines in this whole region. And that's why we've been able to deliver strong results. It's something that we're confident we can continue doing in 2025 and beyond. So thank you all and we're here and see you in the next call. Operator00:47:02And ladies and gentlemen, thank you for your participation. That concludes the presentation. You may now disconnect and have a wonderful day.Read moreParticipantsExecutivesDaniel TapiaDirector of Investor RelationsPedro HeilbronDirector & CEOPeter DonkerslootCFOAnalystsSavanthi SythManaging Director at Raymond James FinancialDuane PfennigwerthSenior Managing Director at Evercore ISIGuilherme MendesED - Equity Research Analyst at JP MorganTom FitzgeraldVP - Equity Research at TD CowenAlberto ValerioDirector - Equity Research at UBS GroupMichael LinenbergManaging Director at Deutsche BankJens SpiessAnalyst at Morgan StanleyDaniel McKenzieEquity Research Analyst at Seaport Research PartnersStephen TrentAnalyst at CitigroupPowered by