Copa Holdings, S.A., parent company of Copa Airlines and Aero Republica, today announced financial results for the second quarter of 2009 (2Q09). The terms “Copa Holdings” or “the Company” refer to the consolidated entity, whose operating subsidiaries are Copa Airlines and Aero Republica. The following financial and operating information, unless otherwise indicated, is presented in accordance with U.S. GAAP. Unless otherwise stated, all comparisons with prior periods refer to the second quarter of 2008 (2Q08).

OPERATING AND FINANCIAL HIGHLIGHTS

—Copa Holdings reported net income of US$55.2 million for 2Q09, or diluted earnings per share (EPS) of US$1.26, an increase of 81.3% as compared to net income of US$30.4 million or diluted EPS of US$0.70 in 2Q08.

—Excluding special items, which for 2Q09 included a US$27.1 million non-cash gain associated with the mark-to-market of fuel hedge contracts, Copa Holdings would have reported an adjusted net income of US$28.1 million, or diluted EPS of $0.64, compared to an adjusted net income of US$24.8 million or EPS of US$0.57 for 2Q08. See the accompanying reconciliation of non-GAAP financial information to GAAP financial information included in the financial tables section of this earnings release.

—Passenger traffic for the months of May and June were negatively affected as a result of the H1N1 flu crisis, which resulted in lower overall demand for intra-Latin America travel, especially to and from Mexico. The Company estimates that the H1N1 flu crisis reduced consolidated passenger revenue by approximately US$12 million.

—Operating income for 2Q09 came in at US$36.8 million, despite a US$12.8 million realized fuel hedge loss, representing an increase of 17.8% as compared to operating income of US$31.2 million for 2Q08, which included a US$7.5 million fuel hedge gain. Operating margin increased from 10.5% to 13.2%.

—In 2Q09, total revenues reached US$277.6 million, representing a 6.8% decline, on a 16.5% capacity expansion. Yield per passenger mile decreased 13.3% to 15.6 cents and operating revenue per available seat mile (RASM) decreased 20.0% to 11.4 cents.

—Revenue passenger miles (RPMs) increased 7.5% from 1.56 billion in 2Q08 to 1.68 billion in 2Q09, and available seat miles (ASMs) increased 16.5% from 2.09 billion in 2Q08 to 2.44 billion in 2Q09, with the Copa Airlines segment increasing 18.1% year-over-year and Aero Republica increasing 8.9%. Consolidated load factor decreased 5.7 percentage points to 68.7%. Break-even load factor for 2Q09 decreased 6.7 percentage points to 59.7% from 66.4% in 2Q08.

—Operating cost per available seat mile (CASM) decreased 22.5%, from 12.7 cents in 2Q08 to 9.9 cents in 2Q09. CASM, excluding fuel costs, decreased 9.1% from 7.8 cents in 2Q08 to 7.1 cents in 2Q09.

—Cash, short term and long term investments ended the quarter at US$394.3 million, representing 31% of the last twelve months’ revenues.

—Copa Holdings ended the quarter with a consolidated fleet of 58 aircraft. Copa Airlines fleet consisted of 43 aircraft, including 28 Boeing 737 Next Generation and 15 Embraer-190’s. Aero Republica’s fleet consisted of 15 aircraft, including 11 Embraer-190’s and four MD-80’s.

—For 2Q09, Copa Airlines reported on-time performance of approximately 90% and a flight-completion factor of 99.5%, maintaining its position among the best in the industry.

RECENT DEVELOPMENTS

—On July 16, Copa Airlines and Boeing announced an order for 13 Boeing 737-800 aircraft, plus options for an additional 8. At Boeing list prices, the new order will represent a total investment of approximately US$1 billion. Deliveries of the 13 newly ordered aircraft will begin in 2012 and end in 2015, with the 8 additional options available for delivery between 2015 and 2017.

—On July 23, Copa Holdings announced it has obtained final loan guarantee commitments from the Export-Import Bank of the United States (EX-IM Bank) to support the purchase and financing of two Boeing 737-800 Next Generation aircraft scheduled for delivery in 2009, as well as preliminary commitments for 10 additional aircraft scheduled for delivery between 2010 and 2012.

  Consolidated Financial &
  Operating Highlights       2Q09   2Q08   % Change   1Q08   % Change

  RPMs (millions)          1,676   1,559     7.5%  1,807     -7.3%
  ASMs (mm)              2,438   2,093     16.5%  2,430     0.3%
  Load Factor             68.7%  74.5%  -5.7 p.p.  74.4%  -5.6 p.p.
  Yield                 15.6   18.0   -13.3%  16.2     -3.7%
  PRASM (cents)            10.7   13.4   -20.0%  12.1   -11.0%
  RASM (cents)            11.4   14.2   -20.0%  12.7   -10.4%
  CASM (cents)              9.9   12.7   -22.5%    9.9     0.1%
  Adjusted CASM (cents) (1)    9.9   12.7   -22.5%    9.9     0.1%
  CASM Excl. Fuel (cents)      7.1   7.8     -9.1%    6.8     3.0%
  Breakeven Load Factor (2)    59.7%  66.4%  -6.7 p.p.  57.5%  2.2 p.p.
  Operating Revenues (US$ mm)  277.6   297.9     -6.8%  308.8   -10.1%
  EBITDAR (US$ mm) (1)        91.2   66.7     36.6%  111.4   -18.2%
  Adjusted EBITDAR (US$ mm)
    (1)(2)                64.1   61.1     5.0%  95.3   -32.7%
  EBITDAR Margin (1)        32.8%  22.4%  10.4 p.p.  36.1%  -3.3 p.p.
  Adjusted EBITDAR Margin
    (1)(2)                23.1%  20.5%  2.6 p.p.  30.9%  -7.8 p.p.
  Operating Income (US$ mm)    36.8   31.2     17.8%  68.9   -46.7%
  Adjusted Operating Income
    (US$ mm)(1)            36.8   31.2     17.8%  68.9   -46.7%
  Operating Margin         13.2%  10.5%  2.8 p.p.  22.3%  -9.1 p.p.
  Adjusted Operating Margin
    (1)                  13.2%  10.5%  2.8 p.p.  22.3%  -9.1 p.p.
  Net Income (US$ mm)        55.2   30.4     81.3%  71.6   -23.0%
  Adjusted Net Income (US$ mm)
    (2)                  28.1   24.8     13.5%  55.5   -49.3%
  EPS - Basic (US$)          1.27   0.70     80.7%  1.67   -23.7%
  Adjusted EPS - Basic (US$)
    (2)                  0.65   0.58     12.6%  1.29   -49.8%
  EPS - Diluted (US$)        1.26   0.70     80.4%  1.65   -23.4%
  Adjusted EPS - Diluted (US$)
    (2)                  0.64   0.57     12.8%  1.28   -49.6%
  Weighted Avg. # of Shares -
    Basic (000)            43,338 43,195     0.3%  42,908     1.0%
  Weighted Avg. # of Shares -
    Diluted (000)          43,685 43,465     0.5%  43,464     0.5%

(1) EBITDAR means earnings before interest, taxes, depreciation, amortization and rent.

(2) Break-even load factor, adjusted EBITDAR, Adjusted EBITDAR margin, Adjusted Net Income and Adjusted EPS (Basic and Diluted) exclude non-cash charges/gains associated with the mark-to-market of fuel hedges.

Note: A reconciliation of non-GAAP financial to the comparable US GAAP measures appears at the end of this press release.