Copa Airlines: Past and Future Growth

March 1st, 2013

Agenda 1. Performance of recent years 2. Future plans

Agenda 1. Performance of recent years 2. Future plans

2012: A year of important achievements


24% capacity growth




5 new destinations




More frequencies




13 new generation B737-800’s




On time performance near to 90%




Entry into Star Alliance




Transition from OnePass to MileagePlus

Business Model Based on 4 Fundamental Strengths Best Geographic Location

Connectivity

World Class Product

Right Infrastructure

On-time Performance Index 95% 90%

90.7% 87.6%

90.5%

87.7%

89.2%

85% 80% 75% 70% 2008

2009

2010

2011

2012

Panama´s privileged position has allowed it to become a major center of business and trade in the Americas

The most complete Network in Latin America TORONTO CHICAGO

NUEVA YORK - JFK WASHINGTON D.C

LAS VEGAS LOS ANGELES

ORLANDO MIAMI NASSAU

HABANA

MONTERREY CANCUN MEXICO GUADALAJARA GUATEMALA

MONTEGO BAYSULA SAN PEDRO

PUNTA KINGSTON SANTIAGO CANA SAN JUAN

TEGUCIGALPA SAN SALVADOR SAN ANDRES MANAGUA LIBERIA SAN JOSE

64 destinations

PORT AU SANTO ARUBA PRINCE DOMINGO CURAÇAO MARACAIBO SMR BARRANQUILLA CARTAGENA CARACAS CUCUTA VALENCIA BUCARAMANGA MEDELLI PEREIRA N BOGOTA CALI

ST MAARTEN

PORT OF SPAIN

LETICIA

GUAYAQUIL

MANAUS

IQUITOS

RECIFE LIMA

in

BRASILIA

29 countries

SANTA CRUZ BELO HORIZONTE

SAO PAULO ASUNCION

SANTIAGO

CORDOBA BUENOS AIRES

Network January 2013

MONTEVIDEO

PORTO ALEGRE

RIO DE JANEIRO

Panama has the highest connectivity of the Americas Thanks to the Hub of the Americas, Panama has the best connectivity in the Americas– relative to its GDP.

Source: IATA Briefing: Economic benefits from air transport in Panama, 2011

Tocumen Airport grows together with Panama Hub of the Americas – North Terminal Expansion


Investment of US$100 million by Panamanian Government




Added 12 new jet bridges




New taxiways, ramp and support areas




Enables planned growth for next 35 years

Tocumen Airport grows together with Panama Hub of the Americas – Future Expansion


Investment of ~US$779 Million




20 additional jet bridges




Independent Check-in, immigration, customs and baggage claim




New Control Tower




Aircraft parking area

Airport Infrastructure is a Significant Advantage The Hub of the Americas offers non-stop service to over twice the number of destinations as competing hubs

Source: OAG Max – January 2013

In the last two years we added 14 destinations to our network








June 2011 ―

Toronto, Canadá (4x per week)

―

Porto Alegre, Brasil (4x per week)

―

Brasilia, Brasil (4x per week)

―

Nassau, Bahamas (4x per week)

December 2011 ’

Chicago – E.E..U.U. (Daily)

’

Cúcuta, Colombia (4x per week)

’

Asunción, Paraguay (4x per week)

’

Monterrey, México (4x per week)

’

Montego Bay, Jamaica (2x per week)

June 2012 ―

Liberia, Costa Rica (2x per week)

―

Recife, Brasil (4x per week)

―

Las Vegas, E.E.U.U. (4x per week)

―

Willemstad, Curaçao (4x per week)

―

Iquitos, Perú (2x per week)

Growing opportunities with the six-bank hub structure The Hub of the Americas offers better schedules and more connecting options

ARR IVA LS

ES TUR R A DEP

NEW

1 06:20

07:00

NEW

ARR IVA LS

13:54

07:30

14:48

08:00 08:08

ES TUR R A DEP

4 15:16

ARR IVA LS

2 08:40

ARR IVA LS

16:02 16:38

RES RTU A P DE

09:08

17:46

09:52 10:00

ES TUR R A DEP

5 18:16

ARR IVA LS

3 10:46

ARR IVA LS

19:02 19:38

ES UR ART P E D

11:16

ES UR ART P E D

6 20:22

12:12

20:50

21:38

Attractive location for Multinational companies Multinational companies in Panama

Over 80 multinational companies have chosen Panama as base for their operations, taking advantage of its favorable legislation, strategic location and connectivity.

Source: Ministry of Commerce and Industries – September 2012

World-class on-time performance High performance even with rapid growth On-time performance Index*

95% 90.7%

90.5% 89.2%

90%

87.6%

87.7%

85%

80%

75%

70% 2008

2009

2010

2011

*On-time performance: defined as an arrival within 14 minutes of scheduled arrival at gate.

2012

Proud member of Star Alliance

Our entry into Star Alliance enhances the travel experience with the highest standards of attention and quality:  Leading global airline network  Faster connections  Ability to earn miles on all member airlines  Access to more than 1,000 VIP Lounges and over 1,330 destinations in 194 countries

Agenda 1. Performance of recent years 2. Future plans

Latam Growth Forecasts


Passenger traffic growth of ~7% per year for the next 20 years




Among fastest growing regions worldwide




Market growth and competitive advantages are allowing Copa to expand at an above average rate Source: Boeing Forecast

Copa plans to continue expanding its services throughout the Americas 7x day 6x day Bogotá San José

La Habana Miami

5x day

4x day

3x day

2x day

Daily

Non Daily

Cancún Guatemala Lima Medellín Santo Domingo

Cali México Orlando Santiago (CL) Sao Paulo

Buenos Aires Caracas Cartagena Guayaquil Los Ángeles

Barranquilla Nueva York Rio de Janeiro San Salvador Washington D.C.

Aruba Asuncion Belo Horizonte Boston Brasilia

Bucaramanga Cúcuta Curaçao Guadalajara Iquitos

Managua

Chicago

Kingston

Punta Cana Quito

Cordoba Las Vegas

Liberia Montego Bay

San Juan

Manaos

Monterrey

Maracaibo Montevideo Pereira Porto Alegre Puerto España

Nassau Port au Prince Recife San Andres St. Marteen

San Pedro Sula Santiago de los Caballeros

Toronto

Santa Cruz Tegucigalpa Valencia New Destinations for 2011

Source: OAG Max – January 2013

New Destinations for 2012

New Destinations for 2013

Over 30 cities that are underserved

* Operations started in 2011 ** Operations started in July 2012

*** Operations will start in July 2013

Boston: New destination as of July 2013

Boston - an important academic, economic and cultural destination - will be the eighth U.S. city served by Copa with a direct flight from the Hub of the Americas.

Order Book Supports Growth Strategy




49 aircraft to fund future growth –

33 firm, 16 options




Deliveries between 2013–2018




First airline in region with Sky Interior




Additional 2% fuel burn improvement

Growth plan incorporates flexible and modern fleet

Type of Aircraft

2011

2012

2013

2014

2015

Capacity: 94 pax Range: 2,200nm

26

26

26

26

26

Capacity: 124 pax

20

18

18

18

18

27

39

46

50

58

73

83

90

94

102

EMBRAER-190

Range: 3,000nm BOEING 737-700

BOEING 737-800

Capacity: 160 pax Range: 3,000nm

*Fleet´s average age = 5.23 years

* Source: Internal information , February, 2013

Key figures for 2012




Number of destinations:

64




Number of aircfraft:

83




Passengers per year:




Total Sales:

USD 2.3 billions




Number of employees:

7,842

Source: Internal data, December 2012

10 millions

2013 Outlook




Healthy economic conditions




Strong capacity growth




Strong demand environment




Competitive unit costs




Another year of strong financial results

THANK YOU