Copa's 2011 profit up 29% as capacity rises 22%

Copa Airlines 737-800. Courtesy, Boeing

Copa Holdings, parent of Panama's Copa Airlines and Copa Airlines Colombia (formerly Aero Republica), reported 2011 net income of $310.4 million, up 28.8% over a $241.1 million net profit in 2010.

The fast-growing airline company boosted consolidated 2011 capacity 21.9% year-over-year to 13.35 billion ASMs, and plans to increase capacity by another 22% in 2012. Traffic in 2011 grew 21.2% to 10.2 billion RPMs. Load factor was 76.4%, down 0.5 point.

Yield rose 7.8% to 17.1 cents while operating margin lifted 0.5 point to an impressive 21%. Owing to rising fuel prices, profit margin is expected to dip to 18%-20% in 2012.

Full-year 2011 revenue jumped 29.3% compared to 2010 to $1.83 billion while expenses heightened 28.4% to $1.45 billion, including a 54.3% rise in aircraft fuel costs to $546.9 million. Operating profit in 2011 was $384.7 million, up 32.8%.

Copa Airlines took delivery of two Boeing 737-800s during the 2011 fourth quarter. Copa Holdings ended the year with a consolidated fleet of 73 aircraft comprising 20 Boeing 737-700s, 27 737-800s and 26 Embraer E-190s.