PANAMA CITY, Panama – Copa Holdings, SA today announced financial results for the second quarter of 2016 (2Q16). The terms “Copa Holdings” or “the Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS).

OPERATING AND FINANCIAL HIGHLIGHTS

• Copa Holdings reported net income of US$54.5 million for 2Q16, or diluted earnings per share (EPS) of US$1.29. Excluding special items, Copa Holdings would have reported an adjusted net income of $21.5 million, or $0.51 per share, a 47.6% decrease over adjusted net income of US$41.0 million or US$0.93 per share for 2Q15.

• Operating income for 2Q16 came in at US$34.2 million, a 30.5% decrease over operating income of US$49.2 million in 2Q15. Operating margin for the period came in at 6.9%, compared to 9.1% in 2Q15, as a result of lower unit revenues partially offset by lower unit costs.

• Operating results for the quarter were affected by realized fuel hedge losses of US$21.2 million, compared to US$21.3 million in 2Q15. Excluding these realized fuel hedge losses, operating margin for the quarter would have been 11.2% for 2Q16, and 13.1% for 2Q15.

• For 2Q16, passenger traffic (RPMs) increased 6.2% on a 0.4% capacity contraction. As a result, consolidated load factor came in at 78.3%, or 4.9 percentage points above 2Q15.

• Total revenues decreased 8.2% to US$494.4 million, as Yield per passenger mile decreased 14.0% to 11.3 cents. Operating revenue per available seat mile (RASM) decreased 7.7% to 9.3 cents.

• Operating cost per available seat mile (CASM) decreased 5.5%, from 9.1 cents in 2Q15 to 8.6 cents in 2Q16, mainly due to lower jet fuel costs. CASM excluding fuel increased 1% to 6.3 cents.

• Cash, short-term and long-term investments ended 2Q16 at US$764.7 million, an increase of US$40.8 million versus 1Q16, which represents 36% of the last twelve months’ revenues.

• Copa Holdings took delivery of one Boeing 737-800 aircraft, ending the quarter with a consolidated fleet of 101 aircraft.

• In June, Copa Airlines inaugurated service to two new destinations, Chiclayo in Perú and Holguín, our third city in Cuba.

• For 2Q16, Copa Holdings reported consolidated on-time performance of 86.5% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.

SUBSEQUENT EVENTS

• On July 1st Copa Airlines inaugurated its third new destination for 2016, Rosario, Argentina.

• Copa Holdings will pay its third quarter dividend of US$0.51 per share on September 15, 2016, on all outstanding Class A and Class B shares, to stockholders of record as of August 31, 2016.

Consolidated Financial & Operating Highlights 2Q16 2Q15 % Change 1Q16 % Change

Revenue Passengers Carried (‘000) 2,020 1,868 8.1% 2,120 -4.7%
RPMs (mm) 4,178 3,933 6.2% 4,307 -3.0%
ASMs (mm) 5,335 5,359 -0.4% 5,566 -4.1%
Load Factor 78.3% 73.4% 4.9 p.p. 77.4% 0.9 p.p.
Yield 11.3 13.2 -14.0% 12.5 -9.3%
PRASM (US$ Cents) 8.9 9.7 -8.2% 9.7 -8.2%
RASM (US$ Cents) 9.3 10.0 -7.7% 10.0 -7.4%
CASM (US$ Cents) 8.6 9.1 -5.5% 8.3 3.7%
CASM Excl. Fuel (US$ Cents) 6.3 6.2 1.0% 6.2 2.1%
Breakeven Load Factor 66.6% 61.9% 4.7 p.p. 56.5% 10.1 p.p.
Adjusted Breakeven Load Factor (1) 73.7% 60.2% 13.5 p.p. 65.0% 8.7 p.p.
Fuel Gallons Consumed (Millions) 69.4 67.9 2.1% 71.7 -3.3%
Avg. Price Per Fuel Gallon (US$ Dollars) 1.81 2.30 -21.3% 1.68 7.4%
Average Length of Haul (Miles) 2,068 2,105 -1.8% 2,031 1.8%
Average Stage Length (Miles) 1,194 1,243 -3.9% 1,223 -2.3%
Departures 30,313 30,094 0.7% 31,518 -3.8%
Block Hours 95,171 95,694 -0.5% 97,632 -2.5%
Average Aircraft Utilization (Hours) 10.4 10.8 -3.5% 10.7 -2.8%
Operating Revenues (US$ mm) 494.4 538.4 -8.2% 557.1 -11.2%
Operating Income (US$ mm) 34.2 49.2 -30.5% 94.1 -63.7%
Operating Margin 6.9% 9.1% -2.2 p.p. 16.9% -10.0 p.p.
Net Income (US$ mm) 54.5 64.1 -14.9% 115.5 -52.8%
Adjusted Net Income (US$ mm) (1) 21.5 41.0 -47.6% 69.9 -69.3%
EPS – Basic and Diluted (US$) 1.29 1.46 -11.1% 2.74 -52.8%
Adjusted EPS – Basic and Diluted (US$) (1) 0.51 0.93 -45.2% 1.66 -69.3%
# of Shares – Basic and Diluted (‘000) 42,117 44,038 -4.4% 42,109 0.0%

(1)Adjusted Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 2Q16, 2Q15, and 1Q16 exclude non-cash charges/gains associated with mark-to-market of fuel hedges, and also exclude charges/gains related to the Venezuelan currency.

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