Copa Holdings' Margin Surges on Higher Passenger Demand
Copa Holdings (NYSE: CPA) -- operator of Latin American airline Copa Airlines -- recently reported third-quarter earnings that included strong year-over-year revenue growth and margin expansion. What was even more impressive was the fact that Copa put up those numbers in the face of hurricanes and an electrical failure at its primary hub in Panama City that significantly impacted the results. These events caused the airline to cancel more than 450 flights -- roughly 1.5% of its total for the quarter -- and cost the company an estimated $12 million in operating earnings. In spite of all that, the metrics that matter continue to look impressive for Copa.
The Latin American economic picture is looking more positive each quarter, with Copa still seeing increasing demand. Just as important, CEO Pedro Heilbron says the company is seeing "rational behavior" from its competitors in terms of fares and capacity growth. Based on these factors, the company expects appetite for air travel in the region to remain healthy into next year.
Image source: Copa Holdings
Source: Fool.com
Copa Holdings S.A. Stock
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