Copa Airlines detailed its costs in 1Q2019 with 1% reduction in costs

    Copa Airlines reported (08-May-2019) a 1.4% year-on-year reduction in operating expenses in 1Q2019, with unit cost (CASK) standing at USD 8.7 cents, or USD 6.1 excluding fuel. Cost details as follows:

    • Fuel cost: Reduced by 2.2% due to an 1.4% increase in fuel consumed as a result of additional capacity, offset by a 3.5% lower average price of fuel. Average fuel cost per gallon was USD2.09;
    • Wages: Increase by 2.7% mainly driven by an increase in headcount to support current operations and future capacity growth and the full year effect of salary adjustments;
    • Passenger services: Increase a 0.4% primarily due to passenger traffic increase;
    • Airport facilities and handling: Increased 1.8% primarily due to an increase in operations and passenger traffic;
    • Sales and distribution: Reduced by 1.2% mainly due to timing of marketing expenses;
    • Maintenance: Reduced by 8.8% as a result of a one-time maintenance event related to an aircraft lease return in 1Q2018;
    • Depreciation and amortisation: Reduced by 1.1% due to the impairment of its Embraer fleet;
    • Flight operations: Reduced by 6.5% mainly as a result of timing of accruals made in 1Q2018;
    • Other: Reduced by 7.4% mainly as a result of savings and timing in overhead expenses during 1Q2019. [more – original PR]