Copa Holdings Reports Second-Quarter Financial Results
Panama City, Panama --- August 5, 2026. Copa Holdings1, S.A. (NYSE: CPA), today announced financial results for the second quarter (2Q26), reflecting the resilience of the Company's business model and disciplined execution amid a significantly higher jet fuel price environment. Key highlights include
•Operating profit of US$91.7 million and an operating margin of 8.7%, a 13.1 percentage point decrease year over year.
•Net profit of US$68.2 million or US$1.67 per share, a 53.9% year‑over‑year decrease in earnings per share.
•Operating revenue increased 25.7% year over year.
•Passenger yields increased 8.7% year over year to 12.6 cents, and revenue per available seat mile (RASM) increased 7.9% to 11.6 cents compared to 2Q25, while capacity in ASMs increased by 16.5% year over year.
•Load factor of 86.7%, compared to 87.3% in 2Q25.
•Operating cost per available seat mile excluding fuel (Ex-Fuel CASM) decreased 0.1% year over year to 5.7 cents.
•The Company ended the quarter with approximately US$1.5 billion in cash, short-term and long-term investments, which represent 39% of the last twelve-month revenues.
•The Company ended 2Q26 with a Net Debt-to-EBITDA ratio of 0.9x.
•During the quarter, the Company took delivery of 4 Boeing 737-MAX 8 aircraft to end the quarter with a total fleet of 131 aircraft.
•Copa Airlines had an on-time performance for the quarter of 90.6% and a flight completion factor of 99.8%, once again positioning the airline among the best in the industry.
Subsequent events
•On August 5, 2026, the Board of Directors of Copa Holdings ratified its third dividend payment for the year of US$1.71 per share. Dividends will be paid on September 15, 2026, to shareholders on record as of August 31, 2026.
•On July 4, 2026, Copa Airlines operated its first flight equipped with Starlink onboard internet, becoming the first airline in Latin America to offer high-speed Starlink connectivity. The Company expects to complete the installation of Starlink Wi-Fi across its entire fleet by the first half of 2027.
•In July, Copa Airlines published schedules reflecting its transition from six to eight connecting banks at its Hub of the Americas® in Panama City. This new bank structure, starting in March 2027, will provide passengers with greater flight options and improved connectivity while increasing aircraft utilization and better use of airport facilities, thereby further consolidating the leadership position of the Hub of the Americas® in the region.
1 The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The financial information presented in this release, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the second quarter of 2025 (2Q25).
1
Management’s comments on 2Q26 results
Copa Holdings’ second quarter results demonstrate the resilience of its business model in a significantly higher jet fuel price environment. Despite an 84.8% year-over-year increase in average fuel prices, the Company delivered an operating profit of US$91.7 million and an operating margin of 8.7%, while maintaining a very strong liquidity position. The quarter also highlights the strength of air travel demand across the Company’s network, with revenues increasing 25.7%, driven by 16.5% capacity growth and a 7.9% year-over-year increase in unit revenues (RASM) to 11.6 cents.
For the second quarter, passenger yields increased 8.7% year over year, and load factor reached 86.7%. While demand across the network remained strong, travel patterns were temporarily affected by the World Cup during June. This resulted in a lower June load factor and an estimated 0.1-cent impact on quarterly RASM.
Cost per available seat mile excluding fuel (CASM Ex-Fuel) decreased 0.1% year over year to 5.7 cents, reflecting the Company’s continued cost discipline, while total CASM increased 26.0% to 10.6 cents as a result of significantly higher fuel prices.
Despite having approximately 40% of its second-quarter bookings already sold prior to the increase in fuel prices, strong demand and higher yields enabled the Company to recover approximately 40% of the year-over-year increase in fuel expenses during the quarter.
Copa Holdings continues to maintain a strong liquidity and balance sheet position, ending the quarter with approximately US$1.5 billion in cash, short-term and long-term investments, representing 39% of the last-twelve-month revenues, and a Net Debt-to-EBITDA ratio of 0.9 times. During the quarter, the Company took delivery of four Boeing 737 MAX 8 aircraft, ending the period with a fleet of 131 aircraft.
Copa Airlines once again showed industry-leading operational reliability, delivering for the quarter an on-time performance of 90.6% and a completion factor of 99.8%, among the very best in the world.
The Company remains focused on leveraging its Hub of the Americas® to deliver the most comprehensive and convenient intra-Americas network. The recently announced transition from six to eight connecting banks, starting in March 2027, will increase connectivity, improve aircraft utilization, and provide passengers with more travel options, further strengthening Panama’s position as the leading hub for intra-Americas travel. Together with the ongoing rollout of Starlink across the fleet, which recently made Copa the first airline in Latin America to offer Starlink high-speed Wi-Fi, these initiatives further enhance the Company's competitive advantages and passenger experience.
Copa’s proven business model, built on the strategic geographic position of Panama, structurally low unit costs, a passenger-friendly product, including the continent’s best on-time performance, and a strong balance sheet, positions the Company well to navigate the current fuel price environment and continue generating profitable growth and long-term shareholder value.
2
Outlook for 2026
While fuel prices remain elevated and volatile relative to prior-year levels, underlying demand across the network continues to be strong. Based on demand trends and current fuel cost projections, the Company is updating its full-year 2026 outlook and now expects an operating margin in the range of 17% to 19% and a capacity increase in ASMs within the range of 14% to 15% compared to 2025.
Financial Outlook
2026 Guidance
2025
Capacity – YOY ASM growth
14-15%
7.8%
Operating Margin
17-19%
22.6%
Factored in this outlook is a load factor of approximately 87%, unit revenues (RASM) of 12.0 cents, unit costs excluding fuel (Ex-Fuel CASM) of approximately 5.7 cents, and an all-in fuel price of US$3.60 per gallon.
Conference Call and Webcast
The Company will hold its financial results conference call tomorrow at 11am ET (10am local). Details follow:
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to over 30 countries in North, Central, and South America and the Caribbean. For more information, visit: www.copaair.com.
This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates, and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve several business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings’ filed disclosure documents and are, therefore, subject to change without prior notice.
3
Copa Holdings, S. A. and Subsidiaries
Consolidated Operating and Financial Statistics
2Q26
2Q25
% Change
1Q26
% Change
YTD26
YTD25
% Change
Revenue Passengers Carried (000s)
4,138
3,600
14.9
%
4,096
1.0
%
8,234
7,112
15.8
%
Revenue Passengers OnBoard (000s)
6,176
5,366
15.1
%
6,014
2.7
%
12,190
10,574
15.3
%
RPMs (millions)
7,936
6,859
15.7
%
7,755
2.3
%
15,691
13,602
15.4
%
ASMs (millions)
9,150
7,856
16.5
%
8,892
2.9
%
18,042
15,657
15.2
%
Load Factor
86.7
%
87.3
%
-0.6 p.p
87.2
%
-0.5 p.p
87.0
%
86.9
%
0.1 p.p
Yield (US$ Cents)
12.6
11.6
8.7
%
12.9
(2.4)
%
12.8
12.2
5.0
%
PRASM (US$ Cents)
11.0
10.1
8.0
%
11.3
(3.0)
%
11.1
10.6
5.1
%
RASM (US$ Cents)
11.6
10.7
7.9
%
11.8
(2.2)
%
11.7
11.1
5.2
%
CASM (US$ Cents)
10.6
8.4
26.0
%
8.9
18.5
%
9.8
8.6
13.7
%
CASM Excl. Fuel (US$ Cents)
5.7
5.7
(0.1)
%
5.8
(1.5)
%
5.7
5.7
(0.6)
%
Fuel Gallons Consumed (millions)
105.0
91.9
14.2
%
102.7
2.3
%
207.6
182.8
13.6
%
Avg. Price Per Fuel Gallon (US$)
4.28
2.32
84.8
%
2.73
56.8
%
3.51
2.43
44.8
%
Average Length of Haul (miles)
1,918
1,905
0.7
%
1,893
1.3
%
1,906
1,912
(0.4)
%
Average Stage Length (miles)
1,255
1,231
2.0
%
1,260
(0.4)
%
1,257
1,245
1.0
%
Departures
44,301
38,985
13.6
%
43,033
2.9
%
87,334
76,814
13.7
%
Block Hours
142,113
122,526
16.0
%
138,479
2.6
%
280,592
244,137
14.9
%
Average Aircraft Utilization (hours)
12.1
11.9
1.4
%
12.2
(1.0)
%
12.2
12.0
1.4
%
4
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of profit or loss
(In US$ thousands)
Unaudited
Unaudited
%
Unaudited
%
Unaudited
Unaudited
%
2Q26
2Q25
Change
1Q26
Change
YTD26
YTD25
Change
Operating Revenues
Passenger revenue
1,002,609
797,266
25.8
%
1,004,173
(0.2
%)
2,006,782
1,656,291
21.2
%
Cargo and mail revenue
34,183
28,307
20.8
%
29,760
14.9
%
63,944
54,001
18.4
%
Other operating revenue
22,541
17,031
32.4
%
18,490
21.9
%
41,031
31,493
30.3
%
Total Operating Revenue
1,059,334
842,604
25.7
%
1,052,423
0.7
%
2,111,757
1,741,785
21.2
%
Operating Expenses
Fuel
449,552
214,106
110.0
%
282,462
59.2
%
732,013
446,266
64.0
%
Wages, salaries, benefits and other employees' expenses
131,364
122,289
7.4
%
137,670
(4.6
%)
269,034
239,807
12.2
%
Passenger servicing
29,028
25,190
15.2
%
28,135
3.2
%
57,162
50,214
13.8
%
Airport facilities and handling charges
77,315
64,652
19.6
%
79,184
(2.4
%)
156,499
130,309
20.1
%
Sales and distribution
57,388
49,429
16.1
%
54,812
4.7
%
112,200
99,691
12.5
%
Maintenance, materials and repairs
42,071
36,158
16.4
%
46,612
(9.7
%)
88,682
75,592
17.3
%
Depreciation and amortization
107,539
88,440
21.6
%
100,726
6.8
%
208,266
174,724
19.2
%
Flight operations
42,825
32,766
30.7
%
41,104
4.2
%
83,930
66,515
26.2
%
Other operating and administrative expenses
30,593
26,329
16.2
%
23,083
32.5
%
53,676
61,602
(12.9
%)
Total Operating Expense
967,676
659,359
46.8
%
793,787
21.9
%
1,761,463
1,344,719
31.0
%
Operating Profit/(Loss)
91,658
183,245
(50.0
%)
258,636
(64.6
%)
350,294
397,067
(11.8
%)
Operating Margin
8.7
%
21.7
%
-13.1 p.p
24.6
%
-15.9 p.p
16.6%
22.8%
-6.2 p.p
Non-operating Income (Expense):
Finance cost
(28,179)
(23,285)
21.0
%
(25,837)
9.1
%
(54,017)
(46,518)
16.1
%
Finance income
16,533
15,377
7.5
%
16,083
2.8
%
32,616
31,170
4.6
%
Gain (loss) on foreign currency fluctuations
(858)
910
nm
1,518
nm
660
2,280
(71.0
%)
Net change in fair value of derivatives
(1,040)
(1,688)
(38.4
%)
(1,066)
(2.5
%)
(2,106)
(4,122)
(48.9
%)
Other non-operating income (expense)
(832)
(397)
109.6
%
(2,279)
(63.5
%)
(3,111)
1,031
nm
Total Non-Operating Income/(Expense)
(14,377)
(9,083)
58.3
%
(11,581)
24.1
%
(25,958)
(16,160)
60.6
%
Profit before taxes
77,282
174,162
(55.6
%)
247,054
(68.7
%)
324,336
380,906
(14.9
%)
Income tax expense
(9,107)
(25,253)
(63.9
%)
(34,588)
(73.7
%)
(43,694)
(55,231)
(20.9
%)
Net Profit/(Loss)
68,175
148,908
(54.2
%)
212,467
(67.9
%)
280,642
325,675
(13.8
%)
Net Margin
6.4
%
17.7
%
-11.2 p.p
20.2
%
-13.8 p.p
13.3%
18.7%
-5.4 p.p
EPS
Basic Earnings Per Share (EPS)
1.67
3.61
-53.9
%
5.16
-67.7
%
6.84
7.89
-13.4
%
Shares for calculation of Basic EPS (000s)
40,905
41,246
-0.8
%
41,183
-0.7
%
41,043
41,269
-0.5
%
5
Operating revenue
Consolidated revenue for 2Q26 totaled US$1.1 billion, a 25.7% increase compared to 2Q25, driven by capacity growth and higher unit revenues.
Passenger revenue totaled US$1.0 billion, an increase of 25.8% year-over-year, as a result of a 15.7% increase in RPMs and an 8.7% increase in passenger yield.
Cargo and mail revenue totaled US$34.2 million, up 20.8%, due to higher cargo volumes, which includes the full-year effect of a second freighter.
Other operating revenue totaled US$22.5 million, a 32.4% increase compared to 2Q25, mostly due to an increase in ConnectMiles revenues from non-air partners.
Operating expenses
Consolidated operating costs for 2Q26 totaled US$967.7 million, a 46.8% increase year over year, primarily due to higher fuel expenses.
Fuel totaled US$449.6 million, an increase of 110.0%, driven by an 84.8% higher average fuel price and a 14.2% increase in gallons consumed. Fuel represented approximately 46% of operating expenses during the quarter, compared to approximately 32% in 2Q25.
Wages, salaries, benefits, and other employee expenses totaled US$131.4 million, up 7.4% mostly reflecting additional operational staff to support capacity growth, partially offset by an adjustment in variable compensation.
Passenger servicing totaled US$29.0 million, up 15.2%, driven by a 15.1% increase in onboard passengers.
Airport facilities and handling charges totaled US$77.3 million, a 19.6% year-over-year increase, mainly driven by increased departures, higher fees in certain airports and the appreciation of certain Latin American currencies.
Sales and distribution totaled US$57.4 million, a 16.1% increase mostly due to higher sales, partially offset by a reduction in the Company’s distribution costs as a result of higher penetration of both direct sales and lower-cost NDC travel agency channels.
Maintenance, materials, and repairs totaled US$42.1 million, a 16.4% increase compared to 2Q25, mainly driven by a 15.7% increase in flight hours.
Depreciation and amortization totaled US$107.5 million, a 21.6% year-over-year increase, due to new aircraft and higher amortization of airframe and engine maintenance events.
Flight operations totaled US$42.8 million, a 30.7% year-over-year increase, mainly driven by a 16.0% increase in block hours, higher overflight rates in certain countries, the appreciation of certain Latin American currencies, and the year-over-year effect of the reversal of provisions in 2Q25.
Other operating and administrative expenses totaled US$30.6 million, a 16.2% increase compared to the same period in 2025, driven by higher capacity.
6
Non-operating Income (Expense)
Consolidated non-operating income (expense) totaled US$(14.4) million in 2Q26.
Finance cost totaled US$(28.2) million, comprised of US$20.5 million related to loan interest expenses, US$4.2 million in interest charges related to operating leases, and US$3.5 million related to the discount rate utilized for the calculation of leased aircraft charges.
Finance income totaled US$16.5 million, related to proceeds from investments.
Gain (loss) on foreign currency fluctuations totaled US$(0.9) million, driven by the devaluation of certain currencies, partially offset by the appreciation of the Brazilian real and the Colombian peso during the quarter.
Net change in fair value of derivatives totaled US$(1.0) million, due to mark-to-market losses on hedge positions related to the Brazilian real.
Other non-operating income (expense) totaled US$(0.8) million in 2Q26.
7
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of financial position
(In US$ thousands)
June 2026
December 2025
ASSETS
(Unaudited)
(Audited)
Cash and cash equivalents
266,825
382,554
Short-term investments
996,411
955,604
Total cash, cash equivalents and short-term investments
1,263,236
1,338,159
Accounts receivable, net
217,862
194,425
Accounts receivable from related parties
3,495
3,217
Expendable parts and supplies, net
155,225
148,127
Prepaid expenses
84,268
55,209
Prepaid income tax
7,530
6,172
Other current assets
30,615
32,769
498,994
439,919
TOTAL CURRENT ASSETS
1,762,231
1,778,078
Long-term investments
280,188
248,579
Long-term prepaid expenses
5,748
5,434
Property and equipment, net
4,687,049
4,120,055
Right of use assets
263,880
296,761
Intangible, net
104,418
104,071
Net defined benefit assets
3,806
3,220
Deferred tax assets
21,074
19,873
Other Non-Current Assets
9,101
6,952
TOTAL NON-CURRENT ASSETS
5,375,264
4,804,946
TOTAL ASSETS
7,137,495
6,583,024
LIABILITIES
Loans and borrowings
202,245
172,885
Current portion of lease liability
68,349
66,132
Accounts payable
207,122
164,320
Accounts payable to related parties
1,279
1,333
Air traffic liability
875,027
737,616
Frequent flyer deferred revenue
167,970
155,584
Taxes Payable
80,132
62,931
Accrued expenses payable
46,298
66,016
Income tax payable
5,340
11,929
Other Current Liabilities
3,067
1,361
TOTAL CURRENT LIABILITIES
1,656,829
1,440,107
Loans and borrowings long-term
2,069,350
1,807,556
Lease Liability
224,871
258,383
Deferred tax Liabilities
58,279
59,217
Other long - term liabilities
255,189
242,337
TOTAL NON-CURRENT LIABILITIES
2,607,689
2,367,494
TOTAL LIABILITIES
4,264,518
3,807,600
EQUITY
Class A - 34,288,050 issued and 29,881,298 outstanding
23,329
23,290
Class B - 10,938,125
7,466
7,466
Additional Paid-In Capital
222,940
220,190
Treasury Stock
(345,147)
(300,143)
Retained Earnings
2,699,685
2,168,911
Net profit
280,642
671,648
Other comprehensive loss
(15,939)
(15,939)
TOTAL EQUITY
2,872,977
2,775,423
TOTAL EQUITY LIABILITIES
7,137,495
6,583,024
8
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of cash flows
For the six months ended
(In US$ thousands)
2026
2025
(Unaudited)
(Unaudited)
Net cash flow from operating activities
617,897
484,282
Investing activities
Net Acquisition of Investments
(71,640)
(294,697)
Net cash flow related to advance payments on aircraft purchase contracts
(340,399)
(60,204)
Acquisition of property and equipment
(375,769)
(390,502)
Proceeds from sale of property and equipment
118
26,448
Acquisition of intangible assets
(11,823)
(14,342)
Net cash flow used in investing activities
(799,513)
(733,297)
Financing activities
Proceeds from new borrowings
377,005
165,000
Payments on loans and borrowings
(93,082)
(122,890)
Payment of lease liability
(32,371)
(28,504)
Share repurchase
(45,004)
(8,706)
Dividends paid
(140,661)
(133,027)
Net cash flow from/(used in) financing activities
65,887
(128,127)
Net (decrease) in cash and cash equivalents
(115,729)
(377,142)
Cash and cash equivalents as of January 1
382,554
613,313
Cash and cash equivalents as of June 30,
$
266,825
$
236,171
Short-term investments
996,411
764,137
Long-term investments
280,188
368,332
Total cash and cash equivalents and investments as of June 30,
$
1,543,424
$
1,368,640
7
Copa Holdings, S. A. and Subsidiaries
Non-IFRS Financial Measures Reconciliation
This press release includes the following non-IFRS financial measures: Operating CASM Excluding Fuel and Net Debt to EBITDA. This supplemental information is presented because we believe it is a useful indicator of our operating performance and is useful in comparing our performance with other companies in the airline industry. These measures should not be considered in isolation and should be considered together with comparable IFRS measures, in particular operating profit, and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:
Reconciliation of Operating Costs per ASM
Excluding Fuel (CASM Excl. Fuel)
2Q26
2Q25
1Q26
YTD26
YTD25
Operating Costs per ASM as Reported (in US$ Cents)
10.6
8.4
8.9
9.8
8.6
Aircraft Fuel Cost per ASM (in US$ Cents)
4.9
2.7
3.2
4.1
2.9
Operating Costs per ASM excluding fuel (in US$ Cents)
5.7
5.7
5.8
5.7
5.7
Reconciliation of Net Debt to EBITDA
2Q26
2Q25
1Q26
Net Debt
$
1,021,390
$
682,680
$
893,509
LTM Operating Profit/(Loss) (in US$ thousands)
$
772,187
$
774,526
$
863,774
LTM Depreciation and amortization (in US$ thousands)
