Panama City, Panama --- May 13, 2026. Copa Holdings1, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2026 (1Q26), reflecting continued industry-leading profitability, disciplined execution, and the resilience of its business model amid a higher jet fuel price environment. Key highlights include:
Net profit of US$212.5 million or US$5.16 per share, a 20.5% year-over-year increase in earnings per share.
Operating margin of 24.6% and net margin of 20.2%, increases of 0.8 and 0.5 percentage points, respectively, compared to 1Q25.
Capacity, measured in available seat miles (ASMs), grew by 14.0% year over year, and passenger traffic in RPMs increased by 15.0%. As a result, load factor increased by 0.8 percentage points to 87.2%.
Revenue per available seat mile (RASM) of 11.8 cents, an increase of 2.7% compared to 1Q25.
Operating cost per available seat mile (CASM) increased 1.6% year over year to 8.9 cents, while CASM excluding fuel (Ex-fuel CASM) decreased 1.0% to 5.8 cents.
The Company ended the quarter with approximately US$1.5 billion in cash, short-term and long-term investments, representing 40% of the last-twelve-months' revenues.
Adjusted Net Debt to EBITDA ratio ended 1Q26 at 0.7 times.
The Company repurchased US$45 million worth of shares during the quarter under the Company's current US$200 million repurchase authorization. This represents approximately 1% of total outstanding shares as of the end of the quarter.
In 1Q26, the Company took delivery of 2 Boeing 737-MAX 8 aircraft to end the quarter with a total fleet of 127 aircraft.
Copa Airlines had an on-time performance for the quarter of 91.6% and a flight completion factor of 99.7%, once again positioning itself among the very best in the industry.
Subsequent eventsOn May 13, 2026, the Board of Directors of Copa Holdings ratified its second dividend payment for the year of US$1.71 per share, payable on June 15, 2026, to shareholders of record as of May 29, 2026.
In April, at an event held in Panama, the Company publicly announced a Boeing 737 MAX aircraft order consisting of 40 firm orders and 20 purchase options. Deliveries are expected between 2030 and 2034, supporting long-term capacity growth while preserving flexibility within the Company's existing fleet plan.
During the second quarter, the Company took delivery of two additional Boeing 737 MAX 8 aircraft, increasing its total fleet to 129 aircraft.
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 first quarter of 2025 (1Q25).
Management's comments on 1Q26 resultsCopa Holdings reported another quarter of strong financial results and operational performance, reaffirming the strength and resilience of its business model, particularly as the industry entered a higher jet fuel price environment in March. In 1Q26, the Company once again delivered industry-leading profitability, with an operating margin of 24.6% and a net margin of 20.2%, while increasing earnings per share by 20.5% year over year.
These results reflect a strong and resilient demand environment across the region, continued discipline in lowering unit costs, a passenger-friendly product, and its relentless focus on operational excellence.
For the first quarter, operating revenues increased 17.0% year over year to US$1.1 billion, while capacity, measured in available seat miles (ASMs), grew 14.0%. Unit revenue (RASM) reached 11.8 cents, representing a 2.7% increase compared to 1Q25. Copa's revenue performance was driven by a 0.8 percentage-point increase in load factor to 87.2% and 1.6% higher yields, reflecting strong regional demand.
Operating expenses during the quarter increased 15.8% year over year to US$793.8 million, primarily driven by capacity growth and higher jet fuel prices. Cost per available seat mile excluding fuel (CASM Ex-fuel) declined 1.0% year over year to 5.8 cents, reflecting the Company's continued cost discipline, while CASM increased 1.6% year over year to 8.9 cents in 1Q26 due to the jet fuel price increase.
During the quarter, all-in jet fuel prices increased 7.5% year over year, from US$2.54 to US$2.73 per gallon. Although the average fuel price increase for the quarter was moderate, higher prices in the second half of March drove an approximately US$20 million year-over-year net impact on the Company's first-quarter results.
Copa Holdings continues to maintain a strong liquidity and balance-sheet position, ending the quarter with US$1.5 billion in cash, short-term and long-term investments, representing 40% of the last-twelve-months' revenues and an adjusted net debt-to-EBITDA ratio of 0.7 times. The Company also ended the quarter with 45 unencumbered aircraft and 15 unencumbered spare engines, providing significant financial flexibility.
The Company remains focused on leveraging its Hub of the Americas® to deliver the most comprehensive and convenient intra-Americas network. Continued strong demand trends, combined with structurally low unit costs, best-in-class operational performance, and a superior passenger-friendly product, position the Company well to navigate the current higher jet fuel price environment while sustaining industry-leading profitability and disciplined long-term growth.
Outlook for 2026The Company continues to see a robust demand environment across the region. In addition, Copa's effective business model and continued cost discipline positions the Company to sustain strong financial performance.
For 2Q26, the Company expects an operating margin between 8% to 12% with capacity growth in ASMs of 16% year over year. These results are impacted by a projected year-over-year increase in the all-in jet fuel price per gallon in the range of 80% to 90%, for which the Company expects to recover ~50% via higher revenues. This partial pass-through is a result of the already advanced booking levels.
The Company continues to expect full-year 2026 capacity growth, measured in ASMs, within the range of 11% to 13% year over year, a load factor of approximately 87%, and unit costs excluding fuel (Ex-Fuel CASM) of approximately 5.7 cents.
Based on the current fuel curve and assuming that recent yield improvements are sustainable, the Company expects to recover a substantial portion of its increased fuel price expenses for the full year, reaching up to 100% by the end of the year.
Conference Call and WebcastThe Company will hold its financial results conference call tomorrow at 11am ET (10am local). Details follow:
Date: May 14, 2026
Time: 11:00 AM US ET (10:00 AM Local Time)
Join by phone: Click here
Webcast (listen-only): ir.copaair.com/events-and-presentations
About Copa HoldingsCopa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information, visit: copaair.com.
Investor Relations
investor.relations@copaair.com
Cautionary statement regarding forward-looking statementsThis 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.
Consolidated Operating and Financial Statistics
1Q26 | 1Q25 | % Change | 4Q25 | % Change | |
Revenue Passengers Carried (000s) | 4,096 | 3,512 | 16.6 % | 3,935 | 4.1 % |
Revenue Passengers OnBoard (000s) | 6,007 | 5,208 | 15.3 % | 5,834 | 3.0 % |
RPMs (millions) | 7,755 | 6,743 | 15.0 % | 7,359 | 5.4 % |
ASMs (millions) | 8,892 | 7,801 | 14.0 % | 8,513 | 4.5 % |
Load Factor | 87.2 % | 86.4 % | 0.8 p.p | 86.4 % | 0.8 p.p |
Yield (US$ Cents) | 12.9 | 12.7 | 1.6 % | 12.4 | 4.3 % |
PRASM (US$ Cents) | 11.3 | 11.0 | 2.6 % | 10.7 | 5.2 % |
RASM (US$ Cents) | 11.8 | 11.5 | 2.7 % | 11.3 | 4.6 % |
CASM (US$ Cents) | 8.9 | 8.8 | 1.6 % | 8.8 | 0.9 % |
CASM Excl. Fuel (US$ Cents) | 5.8 | 5.8 | (1.0)% | 5.9 | (2.9)% |
Fuel Gallons Consumed (millions) | 102.7 | 91.0 | 12.9 % | 98.6 | 4.1 % |
Avg. Price Per Fuel Gallon (US$) | 2.73 | 2.54 | 7.5 % | 2.50 | 9.2 % |
Average Length of Haul (miles) | 1,893 | 1,920 | (1.4)% | 1,870 | 1.2 % |
Average Stage Length (miles) | 1,260 | 1,260 | - % | 1,236 | 1.9 % |
Departures | 43,033 | 37,829 | 13.8 % | 41,942 | 2.6 % |
Block Hours | 138,479 | 121,611 | 13.9 % | 133,488 | 3.7 % |
Average Aircraft Utilization (hours) | 12.2 | 12.1 | 1.3 % | 11.9 | 3.1 % |
Consolidated statement of profit or loss (In US$ thousands)
Unaudited | Unaudited | % | Unaudited | % | ||
1Q26 | 1Q25 | Change | 4Q25 | Change | ||
Operating Revenues | ||||||
Passenger revenue | 1,004,173 | 859,025 | 16.9% | 913,623 | 9.9% | |
Cargo and mail revenue | 29,760 | 25,694 | 15.8% | 32,036 | (7.1%) | |
Other operating revenue | 18,490 | 14,462 | 27.8% | 17,228 | 7.3% | |
Total Operating Revenue | 1,052,423 | 899,181 | 17.0% | 962,888 | 9.3% | |
Operating Expenses | ||||||
Fuel | 282,462 | 232,160 | 21.7% | 249,177 | 13.4% | |
Wages, salaries, benefits and other employees' expenses | 137,670 | 117,517 | 17.1% | 137,906 | (0.2%) | |
Passenger servicing | 28,135 | 25,024 | 12.4% | 27,523 | 2.2% | |
Airport facilities and handling charges | 79,184 | 65,657 | 20.6% | 68,996 | 14.8% | |
Sales and distribution | 54,812 | 50,261 | 9.1% | 55,604 | (1.4%) | |
Maintenance, materials and repairs | 46,612 | 39,434 | 18.2% | 46,075 | 1.2% | |
Depreciation and amortization | 100,726 | 86,284 | 16.7% | 97,385 | 3.4% | |
Flight operations | 41,104 | 33,749 | 21.8% | 38,413 | 7.0% | |
Other operating and administrative expenses | 23,083 | 35,274 | (34.6%) | 32,221 | (28.4%) | |
Total Operating Expense | 793,787 | 685,360 | 15.8% | 753,300 | 5.4% | |
Operating Profit/(Loss) | 258,636 | 213,822 | 21.0% | 209,588 | 23.4% | |
Operating Margin | 24.6 % | 23.8 % | 0.8 p.p | 21.8 % | 2.8 p.p | |
Non-operating Income (Expense): | ||||||
Finance cost | (25,837) | (23,233) | 11.2% | (27,478) | (6.0%) | |
Finance income | 16,083 | 15,792 | 1.8% | 16,545 | (2.8%) | |
Gain (loss) on foreign currency fluctuations | 1,518 | 1,370 | 10.8% | (6,021) | nm | |
Net change in fair value of derivatives | (1,066) | (2,434) | (56.2%) | 178 | nm | |
Other non-operating income (expense) | (2,279) | 1,428 | nm | (857) | 166.0% | |
Total Non-Operating Income/(Expense) | (11,581) | (7,077) | 63.6% | (17,633) | (34.3%) | |
Profit before taxes | 247,054 | 206,744 | 19.5% | 191,955 | 28.7% | |
Income tax expense | (34,588) | (29,978) | 15.4% | (19,332) | 78.9% | |
Net Profit/(Loss) | 212,467 | 176,766 | 20.2% | 172,623 | 23.1% | |
Net Margin | 20.2 % | 19.7 % | 0.5 p.p | 17.9 % | 2.3 p.p | |
EPS | ||||||
Basic Earnings Per Share (EPS) | 5.16 | 4.28 | 20.5% | 4.18 | 23.3% | |
Shares used for calculation: | ||||||
Shares for calculation of Basic EPS (000s) | 41,183 | 41,292 | -0.3% | 41,248 | -0.2% |
Consolidated statement of financial position (In US$ thousands)
March 2026 | December 2025 | |
ASSETS | (Unaudited) | (Audited) |
Cash and cash equivalents | 374,223 | 382,554 |
Short-term investments | 959,457 | 955,604 |
Total cash, cash equivalents and short-term investments | 1,333,680 | 1,338,159 |
Accounts receivable, net | 204,725 | 194,425 |
Accounts receivable from related parties | 3,019 | 3,217 |
Expendable parts and supplies, net | 152,247 | 148,127 |
Prepaid expenses | 89,588 | 55,209 |
Prepaid income tax | 4,836 | 6,172 |
Other current assets | 29,291 | 32,769 |
483,706 | 439,919 | |
TOTAL CURRENT ASSETS | 1,817,386 | 1,778,078 |
Long-term investments | 190,157 | 248,579 |
Long-term prepaid expenses | 5,991 | 5,434 |
Property and equipment, net | 4,461,063 | 4,120,055 |
Right of use assets | 279,918 | 296,761 |
Intangible, net | 104,477 | 104,071 |
Net defined benefit assets | 3,157 | 3,220 |
Deferred tax assets | 20,308 | 19,873 |
Other Non-Current Assets | 12,060 | 6,952 |
TOTAL NON-CURRENT ASSETS | 5,077,131 | 4,804,946 |
TOTAL ASSETS | 6,894,517 | 6,583,024 |
LIABILITIES | ||
Loans and borrowings | 218,254 | 172,885 |
Current portion of lease liability | 66,901 | 66,132 |
Accounts payable | 210,249 | 164,320 |
Accounts payable to related parties | 1,409 | 1,333 |
Air traffic liability | 750,546 | 737,616 |
Frequent flyer deferred revenue | 160,478 | 155,584 |
Taxes Payable | 81,360 | 62,931 |
Accrued expenses payable | 39,970 | 66,016 |
Income tax payable | 27,122 | 11,929 |
Other Current Liabilities | 9,111 | 1,361 |
TOTAL CURRENT LIABILITIES | 1,565,401 | 1,440,107 |
Loans and borrowings long-term | 1,890,520 | 1,807,556 |
Lease Liability | 241,670 | 258,383 |
Deferred tax Liabilities | 72,940 | 59,217 |
Other long-term liabilities | 250,445 | 242,337 |
TOTAL NON-CURRENT LIABILITIES | 2,455,575 | 2,367,494 |
TOTAL LIABILITIES | 4,020,976 | 3,807,600 |
EQUITY | ||
Class A - 34,257,137 issued and 29,861,335 outstanding | 23,316 | 23,290 |
Class B - 10,938,125 | 7,466 | 7,466 |
Additional Paid-In Capital | 221,661 | 220,190 |
Treasury Stock | (345,147) | (300,143) |
Retained Earnings | 2,769,716 | 2,168,911 |
Net profit | 212,467 | 671,648 |
Other comprehensive loss | (15,939) | (15,939) |
TOTAL EQUITY | 2,873,541 | 2,775,423 |
TOTAL EQUITY LIABILITIES | 6,894,517 | 6,583,024 |
Consolidated statement of cash flows For the three months ended
(In US$ thousands)
2026 | 2025 | |
(Unaudited) | (Unaudited) | |
Net cash flow from operating activities | 359,710 | 205,477 |
Investing activities | ||
Net Acquisition of Investments | 54,498 | (340,191) |
Net cash flow related to advance payments on aircraft purchase contracts | (245,026) | (115,130) |
Acquisition of property and equipment | (163,486) | (56,216) |
Proceeds from sale of property and equipment | 85 | - |
Acquisition of intangible assets | (5,559) | (6,515) |
Cash flow used in investing activities | (359,488) | (518,052) |
Financing activities | ||
Proceeds from new borrowings | 154,605 | - |
Payments on loans and borrowings | (31,543) | (51,863) |
Payment of lease liability | (16,033) | (14,007) |
Share repurchase | (45,004) | (3,555) |
Dividends paid | (70,578) | (66,493) |
Cash flow used in financing activities | (8,553) | (135,918) |
Net (decrease) in cash and cash equivalents | (8,331) | (448,493) |
Cash and cash equivalents as of January 1 | 382,554 | 613,313 |
Cash and cash equivalents as of March 31, | $ 374,223 | $ 164,820 |
Short-term investments | 959,457 | 751,525 |
Long-term investments | 190,157 | 425,821 |
Total cash and cash equivalents and investments as of March 31, | $ 1,523,837 | $ 1,342,166 |
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 Adjusted Net Debt to EBITDA. This supplemental information is presented because we believe it is a useful indicator of our operating performance and for 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) | 1Q26 | 1Q25 | 4Q25 |
Operating Costs per ASM as Reported (in US$ Cents) | 8.9 | 8.8 | 8.8 |
Aircraft Fuel Cost per ASM (in US$ Cents) | 3.2 | 3.0 | 2.9 |
Operating Costs per ASM excluding fuel (in US$ Cents) | 5.8 | 5.8 | 5.9 |
Reconciliation of Adjusted Net Debt to EBITDA | 1Q26 | 1Q25 | 4Q25 |
Net Debt | $ 893,509 | $ 592,934 | $ 718,218 |
LTM Operating Profit/(Loss) (in US$ thousands) | $ 863,774 | $ 750,788 | $ 818,960 |
LTM Depreciation and amortization (in US$ thousands) | $ 379,579 | $ 333,628 | $ 365,137 |
LTM EBITDA (in US$ thousands) | $ 1,243,353 | $ 1,084,417 | $ 1,184,096 |
Adjusted Net Debt to EBITDA | 0.7 | 0.5 | 0.6 |
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