CPA Notes

Q1 EPS Release and Conf Call (5/8/08)

• EPS $0.91 versus $1.12 last year – operating margin 17.5% versus 25% last year

  • Maintaining position among most profitable airlines in the industry

• $21.7m in additional fuel costs - $35.1% increase in jet fuel

• Q1 revenue $295.9m up 21.9% - Revenue per available seat mile up 9.6% to 14.2 cents

• Revenue passenger miles up 13.5% and available seat miles up 11.2%

• Cash, investments and committed credit lines $357.1m (33% of last 12 months revenue)

• 4/11 took delivery of 12^th Embraer 190 aircraft – fleet now 38 with average of 3.9 years

  • Including Aero Republica, fleet of 51

• Annual dividend of $0.37 payable June 16

• Continental to be able to sell its previously restricted shares

  • CAL sold roughly 87% of their holdings 5/16 @ 35.75

  • CAL used to be 49% shareholder. Still expect to have close relationship and contracts still in place through at least 2015

• Total debt $836.1m, mostly aircraft and equipment financing

• Aero Republica’s international capacity more than doubled and is 14.9% of total capacity

• Will take delivery of 5 additional aircraft this year for total of 43, Aero Republica will finish with 13 for consolidated total of 56

• Added Port of Spain, Trinidad & Tobago as the 41^st destination

• Economy in Panama region continueing to do quite well – Panama economy expected to be fastest growing economy in Latin America

Broker reports 5/8/08

• CSFB – Expansion into higher yielding international flights a positive

• Company revised operating margin from 17-19% to 15-17%

• MER – In April 2005, Copa purchased Aero Republica, Columbia’s second largest carrier

• Aero Republica expected to record loss in first half of 2008 and turn profitable in second half – expect profitability for full year

• Aero Republica transitioning from MD 80’s to E0190’s – completion mid 2009. Increases fuel efficiency.