Copa Holdings, S.A. (NYSE:CPA) Q2 2023 Earnings Call Transcript

Duane Pfennigwerth: Hi, thanks for taking the follow-up. I appreciate it. I just wanted to ask you about kind of this relationship between fuel prices and fares and what you see competitively. I mean the timing may have been a little bit off here, but as I remember back in the day, you had a tremendous ability to offset higher fuel and there was a fair bit of fuel surcharge in the mechanism for your competitive fares, could you just touch on or remind us the fuel surcharge mechanism and if the same is true today relative to the past? Thanks.

Pedro Heilbron: Yes, so we no longer do fuel surcharges as such, and we are not in a fuel environment or a fuel price environment like we were back in 2007 if I can recall when fuel surcharges were necessary, but we have price – the fuel increases in the past successfully that goes into fair, not in a fuel surcharge, that’s what happened in 2022 during – especially during the second half of ’22. And we’ll see where fuel goes right now and then we’ll try to price it in as much as we can, it depends on competitors also and what they do, of course, we’re always very competitive. There is more capacity than there was in 2022. As I mentioned before, capacity is pretty much back to pre-pandemic levels for all airlines, so that might play into all of this. So that’s why in the guidance – in the detail of the guidance. Jose shared, we’re not getting ahead of ourselves and it’s kind of how we see it right now, but we always try to do better of course.

Duane Pfennigwerth: Yes. Okay, thanks for the thoughts.

Pedro Heilbron: Thank you, Duane.

Operator: I’d like to turn the conference back to Pedro Heilbron for closing remarks.

Pedro Heilbron: Okay. Thank you. So thank you all. This concludes our second quarter earnings call. Thanks for participating and as always thanks for your continued support. Have a great day. And we’ll see you in the next one. Thank you.

Operator: Ladies and gentlemen, thank you for your participation. This concludes the presentation. You may now disconnect and have a wonderful day.