SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Report on Form 6-K dated for the month of May 2024
Copa Holdings, S.A.
(Translation of Registrant's Name Into English)
Boulevard Costa del Este, Avenida Principal y Avenida de la Rotonda
Urbanización Costa del Este
Complejo Business Park, Torre Norte
ParqueLefevre
Panama City, Panama
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-FXForm 40-F
(Indicate by check whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes
No
X
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b);82- ____)
Enclosure: 1Q24 Earnings Release


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
Copa Holdings, S.A.
(Registrant)
Date: 05/17/2024
By: /s/ José Montero
Name: José Montero
Title: CFO

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Copa Holdings Reports Financial Results for the First Quarter of 2024

Panama City, Panama --- May 15, 2024. Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2024 (1Q24). The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2023 (1Q23).

OPERATING AND FINANCIAL HIGHLIGHTS
•Copa Holdings reported a net profit of US$176.1 million for 1Q24 or US$4.19 per share, a US$18.3 million increase compared to 1Q23 on an adjusted basis. These results include a negative impact of approximately US$44.0 million related to the grounding of 21 of the Company's Boeing 737 MAX 9 aircraft in January and exclude any compensation received from Boeing.
•Copa Holdings reported an operating profit of US$216.0 million and an operating margin of 24.2%, an increase of 11.8% and 1.9 percentage points, respectively, compared to 1Q23.
•Passenger traffic for 1Q24, measured in terms of revenue passenger miles (RPMs), increased by 7.1% compared to 1Q23 while capacity, measured in available seat miles (ASMs), increased by 8.0%. As a result, the load factor for the quarter decreased by 0.7 percentage points to 86.0% compared to 1Q23.
•Total revenues for 1Q24 increased 3.0% to US$893.5 million driven by an increase in passenger traffic. During the quarter, compared to 1Q23, passenger yields decreased by 3.8% to 14.0 cents, and revenue per available seat mile (RASM) decreased by 4.6% to 12.5 cents.
•Operating cost per available seat mile (CASM) decreased by 6.9% from 10.2 cents in 1Q23 to 9.5 cents in 1Q24, mainly driven by a decrease of 13.9% in the price of jet fuel, a decrease in maintenance, materials and repairs costs, and lower sales and distribution costs.
•CASM excluding fuel (Ex-fuel CASM) decreased by 2.0% in the quarter to 6.1 cents, when compared to 1Q23. Excluding the negative impact on costs and capacity of the partial grounding of the Company's 737 MAX 9 fleet in January, Copa Holdings would have reported an Ex-fuel CASM of approximately 5.8 cents for the quarter.
•The Company ended the quarter with approximately US$1.1 billion in cash, short-term and long-term investments, which represent 32% of the last twelve months’ revenues.
•By the end of 1Q24, the Company had executed approximately US$40 million of the US$200 million share repurchase program approved by the Board of Directors.
•The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion, while our Adjusted Net Debt to EBITDA ratio ended at 0.5 times.
•During the quarter, the Company purchased from lessors two Boeing 737-800 NG aircraft, which were part of its current fleet as operating leases.
•The Company ended the quarter with a consolidated fleet of 106 aircraft – 67 Boeing 737-800s, 29 Boeing 737 MAX 9s, 9 Boeing 737-700s, and 1 Boeing 737-800 freighter.


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•During the first quarter, Cirium recognized Copa Airlines as the carrier with the highest on-time performance in Latin America. In fact, Copa Airlines’ on-time performance averaging above 90% for the quarter was the highest amongst all airlines in the Americas and one of the highest in the world.

Subsequent Events
•In April, the Company signed a confidential resolution with Boeing to cover the impact of the partial grounding of its Boeing 737 MAX 9 fleet in January. The value will be amortized through the depreciation and amortization line of our Income Statement.
•In May, the Company took delivery of two Boeing 737 MAX 9 aircraft, increasing its total fleet to 108 aircraft.
•Copa Holdings will make its second dividend payment of the year of US$1.61 per share on June 14, 2024, to all Class A and Class B shareholders on record as of May 31, 2024.

Consolidated Financial
& Operating Highlights		1Q241Q23Variance Vs 1Q234Q23Variance Vs 4Q23
Revenue Passengers Carried (000s)3,272 2,881 13.6 %3,310 (1.1)%
Revenue Passengers OnBoard (000s)4,790 4,295 11.5 %4,930 (2.8)%
RPMs (millions) 6,127 5,723 7.1 %6,263 (2.2)%
ASMs (millions) 7,121 6,596 8.0 %7,228 (1.5)%
Load Factor 86.0 %86.8 %-0.7 p.p86.7 %-0.6 p.p
Yield (US$ Cents) 14.0 14.6 (3.8)%14.0 0.3 %
PRASM (US$ Cents) 12.1 12.6 (4.6)%12.1 (0.4)%
RASM (US$ Cents) 12.5 13.1 (4.6)%12.6 (0.7)%
CASM (US$ Cents) 9.5 10.2 (6.9)%9.7 (1.6)%
CASM Excl. Fuel (US$ Cents) 6.1 6.2 (2.0)%6.0 1.0 %
Fuel Gallons Consumed (millions) 84.4 78.2 7.9 %85.6 (1.5)%
Avg. Price Per Fuel Gallon (US$)2.90 3.36 (13.9)%3.08 (5.8)%
Average Length of Haul (miles)1,873 1,987 (5.8)%1,892 (1.0)%
Average Stage Length (miles)1,246 1,281 (2.8)%1,229 1.4 %
Departures35,220 31,984 10.1 %36,207 (2.7)%
Block Hours112,164 104,626 7.2 %115,118 (2.6)%
Average Aircraft Utilization (hours)11.6 11.9 (2.1)%11.9 (2.6)%
Operating Revenues (US$ millions) 893.5 867.3 3.0 %912.8 (2.1)%
Operating Profit (Loss) (US$ millions)216.0 193.2 11.8 %214.3 0.8 %
Operating Margin 24.2 %22.3 %1.9 p.p23.5 %0.7 p.p
Net Profit (Loss) (US$ millions)176.1 121.5 44.9 %187.7 (6.2)%
Adjusted Net Profit (Loss) (US$ millions) (1)176.1 157.8 11.6 %184.3 (4.5)%
Basic EPS (US$)4.19 3.07 36.3 %4.45 (6.0)%
Adjusted Basic EPS (US$) (1)4.19 3.99 5.0 %4.37 (4.3)%
Shares for calculation of Basic EPS (000s) 42,052 39,565 6.3 %42,150 (0.2)%

(1)Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures

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MANAGEMENT’S COMMENTS ON THE 1Q24 RESULTS
Copa Holdings reported strong results for the first quarter of the year. Operating margin remained solid at 24.2% or 1.9 percentage points higher than in 1Q23, driven by a continued robust demand environment in the region and the Company's focus on maintaining low ex-fuel unit costs.
Operating revenues for 1Q24 increased 3.0% to US$893.5 million mainly driven by an increase in passenger traffic. Load factor for the quarter came in at 86.0% or 0.7 percentage points below 1Q23 on an 8.0% increase in capacity year over year, while yields came in at 14.0 cents or 3.8% lower than 1Q23. As a result, passenger revenues per ASM (PRASM) decreased 4.6% in the quarter to 12.1 cents and RASM decreased 4.6% to 12.5 cents, compared to 1Q23.
Operating expenses for 1Q24 increased by 0.5% to US$677.5 million mainly driven by the 8.0% increase in capacity, partially offset by lower fuel, maintenance, materials and repairs and sales and distribution costs. Aircraft fuel expenses decreased by 7.6% or $20.1 million compared to 1Q23, due to a 13.9% lower jet fuel price, partially offset by 7.9% more gallons consumed. Maintenance, materials and repairs expenses decreased by 36.4% mainly due to an adjustment in the provision related to leased aircraft and lower engine maintenance costs. And sales and distribution costs decreased by 9.6% due to higher penetration of direct sales and lower-cost travel agency channels. Consequently, cost per available seat mile (CASM) came in at 9.5 cents, a decrease of 6.9% compared to 1Q23, and costs excluding fuel (Ex-fuel CASM) came in at 6.1 cents, a 2.0% decrease when compared to the same period in 2023.
As a result, Copa Holdings reported an operating profit of US$216.0 million and a net profit of US$176.1 million for the quarter, an increase of US$22.8 million and US$18.3 million, respectively, when compared on an adjusted basis to 1Q23.
The Company continues to have a solid balance sheet as it closed the quarter with US$1.1 billion in cash, short-term and long-term investments, which represent 32% of the last twelve months’ revenues. Total debt at the end of 1Q24 amounted to US$1.7 billion, while our Adjusted Net Debt to EBITDA ratio continued at healthy levels at 0.5 times.
Copa Holdings’ first quarter results are the product of a solid and well-executed business model, which is built on operating the best and most convenient network for intra-Latin America travel from its Hub of the Americas® based on Panama’s advantageous geographic position, low unit costs, best on-time performance, and a strong balance sheet. Going forward, the Company expects to leverage its strong balance sheet, leading liquidity position, and low-cost base to continue strengthening its long-term competitive position by implementing initiatives that will further reinforce its network, product, and cost competitiveness.







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OUTLOOK FOR 2024
For 2024, the Company is reaffirming its full-year operating margin outlook of 21% to 23% on a capacity growth in the range of 10%.
Financial Outlook2024
Guidance		2023
Capacity – YOY ASM growth∼10%13.4%
Operating Margin21-23%23.5%
Factored into this outlook is a load factor of approximately 87%, unit revenues (RASM) of 12.0 cents, unit costs excluding fuel (Ex-Fuel CASM) in the range of 5.9 cents, and an all-in fuel price of US$2.85 per gallon.
CONSOLIDATED FIRST-QUARTER RESULTS
Operating revenue
Consolidated revenue for 1Q24 totaled US$893.5 million, a 3.0% or US$26.2 million increase from operating revenue of US$867.3 million in 1Q23, mainly driven by passenger revenue.
Passenger revenue totaled US$858.7 million, a 3.0% increase compared to the same period in 2023, mainly driven by a 7.1% year-over-year passenger traffic increase, partially offset by a 3.8% decrease in passenger yield and a 0.7 percentage point decrease in load factor. The first-quarter results are mostly comprised of flown passenger ticket revenue, passenger-related ancillary revenue, and unredeemed ticket revenue.
Cargo and mail revenue totaled US$21.9 million, a 5.8% decrease compared to the same period in 2023, due to lower cargo yields partially offset by higher volume.
Other operating revenue totaled US$12.8 million, a 28.4% increase year-over-year, mostly due to an increase in non-air ConnectMiles revenues.

Operating expenses
Consolidated operating costs for 1Q24 increased by 0.5% compared to 1Q23 to US$677.5 million, driven by higher capacity, offset by lower fuel, maintenance, materials and repairs costs, and sales and distribution costs.
Fuel totaled US$245.4 million, a decrease of US$20.1 million or 7.6% compared to the same period in 2023, due to a 13.9% lower effective fuel price, partially offset by a 7.9% increase in fuel gallons consumed.
Wages, salaries, benefits, and other employee expenses totaled US$114.3 million, an 11.4% increase compared to the same period in 2023, driven by an increase in operational staff to support the originally planned capacity growth and cost of living salary adjustments.
Passenger servicing totaled US$29.7 million, a 45.6% increase compared to the same period in 2023. Not including the costs related to the grounding of the MAX 9, passenger servicing costs would have increased by 15.8%, driven mostly by an 11.5% increase in onboard passengers, as well as an upgrade in the Company’s onboard product offering.
Airport facilities and handling charges totaled US$60.3 million, a 19.5% increase compared to the same period in 2023, mostly related to a 10.1% increase in departures, changes in the mix of routes and higher airport and handling fees in certain countries.
Sales and distribution totaled US$55.5 million, a 9.6% decrease compared to the same period in 2023, due to a reduction in the Company’s distribution costs as a result of higher penetration of both direct sales and lower-cost travel agency channels.

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Maintenance, materials, and repairs totaled US$25.6 million, a 36.4% decrease compared to the same period in 2023, mainly due to an adjustment in the provision related to leased aircraft return conditions of two leased airplanes that the Company purchased and lower engine maintenance costs, partially offset by higher costs related to materials consumption driven by an increase of 6.7% in flight hours.
Depreciation and amortization totaled US$83.4 million, a 14.7% increase compared to the same period in 2023, mostly related to additional aircraft and maintenance events amortization.
Flight operations totaled US$31.0 million, a 13.1% increase compared to the same period in 2023, driven by an increase of 7.2% in block hours and higher overflight rates in certain countries.
Other operating and administrative expenses totaled US$32.3 million, a 2.9% decrease compared to the same period in 2023, mainly due to a decrease in engine rental expenses.

Non-operating Income (Expense)
Consolidated non-operating income (expense) totaled a net US$(9.1) million in 1Q24.
Finance cost totaled US$(18.8) million, comprised of US$12.8 million related to loan interest expenses, US$4.1 million related to the discount rate associated with leased aircraft charges, and US$1.9 million in interest charges related to operating leases.
Finance income totaled US$13.7 million in proceeds from investments.
Gain (loss) on foreign currency fluctuations totaled US$(3.9) million, mainly driven by the depreciation of the Brazilian real and Argentine peso.
Other non-operating income (expense) totaled US$(0.1) million in 1Q24.


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About Copa Holdings
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information visit: www.copaair.com.

CONTACT: Copa Holdings S.A.
Investor Relations:
Ph: 011 507 304-2774
www.copaair.com (IR section)

This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates, and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve several business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings’ filed disclosure documents and are, therefore, subject to change without prior notice.
























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Copa Holdings, S. A. and Subsidiaries
Consolidated statement of profit or loss
(In US$ thousands)
%%
1Q241Q23Change 4Q23Change
Operating Revenues
Passenger revenue858,725 834,018 3.0 %875,257 (1.9 %)
Cargo and mail revenue21,910 23,252 (5.8 %)26,534 (17.4 %)
Other operating revenue12,831 9,995 28.4 %11,049 16.1 %
Total Operating Revenue893,467 867,264 3.0 %912,840 (2.1 %)
Operating Expenses
Fuel245,352 265,498 (7.6 %)264,166 (7.1 %)
Wages, salaries, benefits and other employees' expenses114,314 102,652 11.4 %119,669 (4.5 %)
Passenger servicing29,684 20,391 45.6 %24,148 22.9 %
Airport facilities and handling charges60,347 50,479 19.5 %59,010 2.3 %
Sales and distribution55,494 61,406 (9.6 %)55,111 0.7 %
Maintenance, materials and repairs25,627 40,296 (36.4 %)31,276 (18.1 %)
Depreciation and amortization83,365 72,677 14.7 %80,261 3.9 %
Flight operations31,029 27,424 13.1 %27,987 10.9 %
Other operating and administrative expenses32,270 33,228 (2.9 %)36,875 (12.5 %)
Total Operating Expense677,482 674,053 0.5 %698,504 (3.0 %)
Operating Profit/(Loss)215,985 193,212 11.8 %214,335 0.8 %
Non-operating Income (Expense):
Finance cost(18,840)(24,365)(22.7 %)(20,408)(7.7 %)
Finance income13,746 8,842 55.5 %14,289 (3.8 %)
Gain (loss) on foreign currency fluctuations(3,914)1,201 (425.8 %)(272)1339.3 %
Net change in fair value of derivatives(8)(37,933)(100.0 %)— — %
Other non-operating income (expense)(112)1,235 (109.1 %)3,126 (103.6 %)
Total Non-Operating Income/(Expense)(9,127)(51,020)(82.1 %)(3,264)179.6 %
Profit before taxes206,858 142,192 45.5 %211,071 (2.0 %)
Income tax expense(30,792)(20,671)49.0 %(23,378)31.7 %
Net Profit/(Loss)176,066 121,521 44.9 %187,693 (6.2 %)









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Copa Holdings, S. A. and Subsidiaries
Consolidated statement of financial position
(In US$ thousands)
March 2024December 2023
ASSETS
(Unaudited)
(Audited)
Cash and cash equivalents170,525 206,375 
Short-term investments630,640 708,809 
Total cash, cash equivalents and short-term investments801,165 915,184 
Accounts receivable, net192,486 156,720 
Accounts receivable from related parties2,433 2,527 
Expendable parts and supplies, net116,919 116,604 
Prepaid expenses55,495 44,635 
Prepaid income tax88 66 
Other current assets32,548 32,227 
399,968 352,780 
TOTAL CURRENT ASSETS1,201,133 1,267,963 
Long-term investments301,192 258,934 
Long-term prepaid expenses9,471 9,633 
Property and equipment, net3,286,848 3,238,632 
Right of use assets259,283 281,146 
Intangible, net88,312 87,986 
Net defined benefit assets5,373 5,346 
Deferred tax assets20,999 30,148 
Other Non-Current Assets16,722 17,048 
TOTAL NON-CURRENT ASSETS3,988,199 3,928,872 
TOTAL ASSETS5,189,332 5,196,836 
LIABILITIES
Loans and borrowings233,110 222,430 
Current portion of lease liability64,465 68,304 
Accounts payable204,237 182,303 
Accounts payable to related parties1,658 1,228 
Air traffic liability579,476 611,856 
Frequent flyer deferred revenue132,132 124,815 
Taxes Payable53,565 44,210 
Accrued expenses payable34,214 64,940 
Income tax payable16,365 26,741 
Other Current Liabilities1,468 1,403 
TOTAL CURRENT LIABILITIES1,320,689 1,348,229 
Loans and borrowings long-term1,198,017 1,240,261 
Lease Liability198,387 215,353 
Deferred tax Liabilities45,742 36,369 
Other long - term liabilities235,014 234,474 
TOTAL NON-CURRENT LIABILITIES1,677,161 1,726,457 
TOTAL LIABILITIES2,997,850 3,074,685 
EQUITY
Class A - 34,143,485 issued and 30,748,862 outstanding
23,238 23,201 
Class B - 10,938,1257,466 7,466 
Additional Paid-In Capital210,157 209,102 
Treasury Stock(244,311)(204,130)
Retained Earnings2,028,194 1,581,739 
Net profit176,066 514,098 
Other comprehensive loss(9,326)(9,326)
TOTAL EQUITY2,191,483 2,122,150 
TOTAL EQUITY LIABILITIES5,189,332 5,196,836 

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Copa Holdings, S. A. and Subsidiaries
Consolidated statement of cash flows
For the three months ended
(In US$ thousands)
202420232022
(Unaudited)
(Audited)
(Audited)
Cash flow from operating activities200,998 203,419 169,336 
Cash flow used in investing activities(78,334)(62,868)(120,515)
Cash flow used in financing activities(158,514)(20,661)(10,888)
Net (decrease) increase in cash and cash equivalents(35,850)119,890 37,933 
Cash and cash equivalents at January 1206,375 122,424 211,081 
Cash and cash equivalents at March 31$170,525 $242,314 $249,014 
Short-term investments630,640 773,493 771,074 
Long-term investments301,192 166,481 204,810 
Total cash and cash equivalents and investments at March 31$1,102,357 $1,182,288 $1,224,898 



















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Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non-IFRS financial measures: Adjusted Net Profit, Adjusted Basic EPS, and Operating CASM Excluding Fuel. This supplemental information is presented because we believe it is a useful indicator of our operating performance and is useful in comparing our performance with other companies in the airline industry. These measures should not be considered in isolation and should be considered together with comparable IFRS measures, in particular operating profit, and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:
Reconciliation of Adjusted Net Profit1Q241Q234Q23
Net Profit as Reported$176,066 $121,521 $187,693 
Net change in fair value of derivatives
$— $37,933 $— 
Net change in fair value of financial investments
$— $(1,655)$(3,372)
Adjusted Net Profit$176,066 $157,799 $184,321 
Reconciliation of Adjusted Basic EPS1Q241Q234Q23
Adjusted Net Profit$176,066 $157,799 $184,321 
Shares used for calculation of Basic EPS42,05239,56542,150
Adjusted Basic Earnings per share (Adjusted Basic EPS)$4.19 $3.99 $4.37 
Reconciliation of Operating Costs per ASM
Excluding Fuel (CASM Excl. Fuel)1Q241Q234Q23
Operating Costs per ASM as Reported (in US$ Cents)9.5 10.2 9.7 
Aircraft Fuel Cost per ASM (in US$ Cents)3.4 4.0 3.7 
Operating Costs per ASM excluding fuel (in US$ Cents)6.1 6.2 6.0 

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