Copa Holdings Reports Second-Quarter Financial Results

Rhea-AI Summary

Copa Holdings (NYSE:CPA) reported strong second-quarter 2025 financial results, delivering a net profit of $148.9 million or $3.61 per share, representing a 25.2% EPS increase year-over-year. The company achieved a net margin of 17.7% and an operating margin of 21.0%, improving by 3.0 and 1.5 percentage points respectively from 2Q24.

The airline maintained robust operational metrics with a 91.5% on-time performance and 99.8% flight completion factor. Copa's fleet expanded to 115 aircraft after receiving three Boeing 737 MAX 8 aircraft. The company's strong financial position is reflected in its $1.4 billion cash position and low leverage with an Adjusted Net Debt to EBITDA ratio of 0.6x. The Board approved a dividend payment of $1.61 per share, payable September 15, 2025.

Positive

• None.

Negative

• RASM declined 2.8% compared to 2Q24
• Ex-fuel CASM increased 3.2% year-over-year

Insights

Financial Analyst

Copa Holdings delivered impressive Q2 results with 25.2% EPS growth and strong margins despite lower unit revenue, demonstrating exceptional operational efficiency.

Copa Holdings' Q2 2025 results reveal a company firing on all cylinders with a net profit of $148.9 million and earnings per share of $3.61, representing a remarkable 25.2% year-over-year EPS increase. The airline achieved this growth while maintaining industry-leading operational metrics and strengthening its balance sheet.

The company's profitability metrics tell a compelling story. Copa achieved a net margin of 17.7% and an operating margin of 21.0% – improvements of 3.0 and 1.5 percentage points respectively compared to Q2 2024. These margins are exceptional for the airline industry, where high fixed costs typically compress profitability.

Cost control appears to be a key driver of Copa's performance. The company reduced its operating cost per available seat mile (CASM) by 4.6% year-over-year to 8.5 cents, offsetting a 2.8% decline in revenue per available seat mile (RASM). This cost discipline is particularly noteworthy given that non-fuel CASM increased by 3.2%, suggesting significant efficiency gains in fuel consumption or favorable fuel price dynamics.

Copa's balance sheet strength is equally impressive, ending the quarter with approximately $1.4 billion in cash and investments – representing 39% of trailing twelve-month revenues. With an Adjusted Net Debt to EBITDA ratio of just 0.6x, the company maintains substantial financial flexibility for fleet growth, shareholder returns, or navigating potential headwinds.

The airline's operational excellence continues to be recognized, with a 91.5% on-time performance and 99.8% flight completion factor. These metrics, along with its tenth consecutive Skytrax recognition, reinforce Copa's premium positioning in its Central American and Caribbean markets.

The $1.61 per share dividend announcement further signals management's confidence in sustained cash generation. With three new Boeing 737 MAX 8 aircraft delivered during the quarter, Copa continues to modernize its fleet while maintaining disciplined growth.

PANAMA CITY, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Copa Holdings¹, S.A. (NYSE: CPA), today announced financial results for the second quarter of 2025 (2Q25), delivering another quarter of solid profitability and operational excellence. Key highlights include:

• Net profit of US$148.9 million or US$3.61 per share, which represents an earnings per share (EPS) increase of 25.2% compared to 2Q24.
• Net margin of 17.7% and an operating margin of 21.0%, an increase of 3.0 percentage points and 1.5 percentage points, respectively, compared to 2Q24.
• Revenue per available seat mile (RASM) of 10.7 cents, down 2.8% compared to 2Q24.
• Operating cost per available seat mile (CASM) decreased by 4.6% compared to 2Q24 to 8.5 cents, and CASM excluding fuel (Ex-fuel CASM) increased 3.2% year over year to 5.8 cents.
• The Company ended the quarter with approximately US$1.4 billion in cash, short-term and long-term investments, which represent 39% of the last twelve months’ revenues.
• The Company closed 2Q25 with an Adjusted Net Debt to EBITDA ratio of 0.6 times.
• The Company took delivery of three Boeing 737 MAX 8 aircraft, ending the quarter with a consolidated fleet of 115 aircraft – 67 Boeing 737-800, 32 Boeing 737 MAX-9, 9 Boeing 737-700, 6 Boeing 737 MAX-8, and 1 Boeing 737-800 freighter.
• In June, Copa Airlines was recognized by Skytrax – for the tenth consecutive year – as the “Best Airline in Central America and the Caribbean” and as the “Best Airline Staff in Central America and the Caribbean.”
• Copa Airlines had an on-time performance for the quarter of 91.5% and a flight completion factor of 99.8%, once again positioning itself among the very best in the industry.
  

Subsequent events

• On August 6, 2025, the Board of Directors of Copa Holdings ratified its second dividend payment for the year of US$1.61 per share. Dividends will be paid on September 15, 2025, to shareholders of record as of August 29, 2025.
  

Full 2Q25 Earnings Release available for download at:

https://copa.gcs-web.com/financial-information/quarterly-results

Conference Call and Webcast

The Company will hold its financial results conference call tomorrow at 11 am ET (10 am local). Details follow:

Date:	August 7, 2025
Time:	11:00 AM US ET (10:00 AM Local Time)
Join by phone:	Click here
Webcast (listen-only):	Click here

About Copa Holdings

Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides air 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 statements

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.

CPA-G

Copa Holdings, S. A. and Subsidiaries
Consolidated Operating and Financial Statistics

	2Q25		2Q24		% Change		1Q25		% Change		YTD25		YTD24		% Change
Revenue Passengers Carried (000s)	3,600		3,303		9.0	%	3,512		2.5	%	7,112		6,575		8.2	%
Revenue Passengers OnBoard (000s)	5,366		4,970		8.0	%	5,208		3.0	%	10,574		9,760		8.3	%
RPMs (millions)	6,859		6,446		6.4	%	6,743		1.7	%	13,602		12,573		8.2	%
ASMs (millions)	7,856		7,424		5.8	%	7,801		0.7	%	15,657		14,545		7.7	%
Load Factor	87.3	%	86.8	%	0.5 p.p		86.4	%	0.9 p.p		86.9	%	86.4	%	0.4 p.p
Yield (US$ Cents)	11.6		12.1		(4.1)	%	12.7		(8.8)	%	12.2		13.0		(6.7)	%
PRASM (US$ Cents)	10.1		10.5		(3.6)	%	11.0		(7.8)	%	10.6		11.3		(6.2)	%
RASM (US$ Cents)	10.7		11.0		(2.8)	%	11.5		(6.9)	%	11.1		11.8		(5.5)	%
CASM (US$ Cents)	8.5		8.9		(4.6)	%	8.8		(3.5)	%	8.6		9.2		(6.1)	%
CASM Excl. Fuel (US$ Cents)	5.8		5.6		3.2	%	5.8		(1.0)	%	5.8		5.8		(0.6)	%
Fuel Gallons Consumed (millions)	91.9		87.6		4.9	%	91.0		1.0	%	182.8		172.0		6.3	%
Avg. Price Per Fuel Gallon (US$)	2.32		2.79		(17.0)	%	2.54		(8.8)	%	2.43		2.84		(14.7)	%
Average Length of Haul (miles)	1,905		1,952		(2.4)	%	1,920		(0.7)	%	1,912		1,912		—	%
Average Stage Length (miles)	1,231		1,253		(1.8)	%	1,260		(2.3)	%	1,245		1,249		(0.4)	%
Departures	38,985		36,313		7.4	%	37,829		3.1	%	76,814		71,533		7.4	%
Block Hours	122,526		116,062		5.6	%	121,611		0.8	%	244,137		228,226		7.0	%
Average Aircraft Utilization (hours)	11.9		11.9		0.6	%	12.1		(1.2)	%	12.0		11.7		2.1	%

Copa Holdings, S. A. and Subsidiaries
Consolidated statement of profit or loss
(In US$ thousands)

		Unaudited			Unaudited			%		Unaudited			%			Unaudited			Unaudited		%
		2Q25			2Q24			Change		1Q25			Change			YTD25			YTD24		Change
Operating Revenues
Passenger revenue		797,266			781,497			2.0	%	859,025			(7.2	%)		1,656,291			1,640,222		1.0	%
Cargo and mail revenue		28,307			25,184			12.4	%	25,694			10.2	%		54,001			47,095		14.7	%
Other operating revenue		17,031			12,722			33.9	%	14,462			17.8	%		31,493			25,553		23.2	%
Total Operating Revenue		842,604			819,403			2.8	%	899,181			(6.3	%)		1,741,785			1,712,870		1.7	%
Operating Expenses
Fuel		214,106			246,011			(13.0	%)	232,160			(7.8	%)		446,266			491,363		(9.2	%)
Wages, salaries, benefits and other employees' expenses		122,289			114,878			6.5	%	117,517			4.1	%		239,807			229,193		4.6	%
Passenger servicing		25,190			27,579			(8.7	%)	25,024			0.7	%		50,214			57,263		(12.3	%)
Airport facilities and handling charges		64,652			62,768			3.0	%	65,657			(1.5	%)		130,309			123,115		5.8	%
Sales and distribution		49,429			52,210			(5.3	%)	50,261			(1.7	%)		99,691			107,704		(7.4	%)
Maintenance, materials and repairs		36,158			10,883			232.3	%	39,434			(8.3	%)		75,592			36,510		107.0	%
Depreciation and amortization		88,440			79,462			11.3	%	86,284			2.5	%		174,724			162,827		7.3	%
Flight operations		32,766			31,914			2.7	%	33,749			(2.9	%)		66,515			62,944		5.7	%
Other operating and administrative expenses		32,954			34,190			(3.6	%)	35,274			(6.6	%)		68,227			66,461		2.7	%
Total Operating Expense		665,984			659,896			0.9	%	685,360			(2.8	%)		1,351,344			1,337,378		1.0	%
Operating Profit/(Loss)		176,620			159,507			10.7	%	213,822			(17.4	%)		390,442			375,492		4.0	%
Operating Margin		21.0	%		19.5	%		1.5 p.p		23.8	%		-2.8 p.p			22.4	%		21.9	%	0.5 p.p
Non-operating Income (Expense):
Finance cost		(23,285	)		(20,632	)		12.9	%	(23,233	)		0.2	%		(46,518	)		(39,472	)	17.9	%
Finance income		15,377			13,537			13.6	%	15,792			(2.6	%)		31,170			27,284		14.2	%
Gain (loss) on foreign currency fluctuations		910			(16,097	)		nm		1,370			(33.6	%)		2,280			(20,010	)	nm
Net change in fair value of derivatives		(1,688	)		2,533			nm		(2,434	)		(30.7	%)		(4,122	)		2,525		nm
Other non-operating income (expense)		6,228			1,766			252.7	%	1,428			336.2	%		7,656			1,654		362.9	%
Total Non-Operating Income/(Expense)		(2,458	)		(18,892	)		(87.0	%)	(7,077	)		(65.3	%)		(9,535	)		(28,019	)	(66.0	%)
Profit before taxes		174,162			140,615			23.9	%	206,744			(15.8	%)		380,906			347,472		9.6	%
Income tax expense		(25,253	)		(20,362	)		24.0	%	(29,978	)		(15.8	%)		(55,231	)		(51,154	)	8.0	%
Net Profit/(Loss)		148,908			120,253			23.8	%	176,766			(15.8	%)		325,675			296,318		9.9	%
Net Margin		17.7	%		14.7	%		3.0 p.p		19.7	%		-2.0 p.p			18.7	%		17.3	%	1.4 p.p
Basic Earnings Per Share (EPS)		3.61			2.88			25.3	%	4.28			(15.7)	%		7.89			7.07		11.6	%
Shares for calculation of Basic EPS (000s)		41,246			41,715			(1.1)	%	41,292			(1.1)	%		41,268			41,883		(1.5)	%

Copa Holdings, S. A. and Subsidiaries
Consolidated statement of financial position
(In US$ thousands)

		June 2025			December 2024
ASSETS		(Unaudited)			(Audited)
Cash and cash equivalents		236,171			613,313
Short-term investments		764,137			585,919
Total cash, cash equivalents and short-term investments		1,000,307			1,199,232
Accounts receivable, net		183,401			166,014
Accounts receivable from related parties		2,967			2,976
Expendable parts and supplies, net		141,190			132,341
Prepaid expenses		64,295			42,926
Prepaid income tax		5,788			11,678
Other current assets		26,028			21,711
		423,669			377,647
TOTAL CURRENT ASSETS		1,423,976			1,576,879
Long-term investments		368,332			248,936
Long-term accounts receivable		3,000			—
Long-term prepaid expenses		3,182			8,237
Property and equipment, net		3,755,645			3,458,261
Right of use assets		308,900			309,302
Intangible, net		98,895			96,754
Net defined benefit assets		1,833			1,058
Deferred tax assets		16,772			20,749
Other Non-Current Assets		20,450			22,113
TOTAL NON-CURRENT ASSETS		4,577,008			4,165,410
TOTAL ASSETS		6,000,984			5,742,289
LIABILITIES
Loans and borrowings		219,892			254,854
Current portion of lease liability		62,062			59,103
Accounts payable		187,375			229,104
Accounts payable to related parties		792			1,624
Air traffic liability		642,594			621,895
Frequent flyer deferred revenue		146,645			132,064
Taxes Payable		62,494			55,505
Accrued expenses payable		42,009			62,673
Income tax payable		9,249			9,801
Other Current Liabilities		1,680			1,272
TOTAL CURRENT LIABILITIES		1,374,795			1,427,895
Loans and borrowings long-term		1,497,592			1,415,953
Lease Liability		271,774			270,594
Deferred tax Liabilities		60,613			37,476
Other long - term liabilities		236,096			217,626
TOTAL NON-CURRENT LIABILITIES		2,066,074			1,941,649
TOTAL LIABILITIES		3,440,868			3,369,544
EQUITY
Class A - 34,228,377 issued and 30,196,170 outstanding		23,287			23,244
Class B - 10,938,125		7,466			7,466
Additional Paid-In Capital		217,789			214,542
Treasury Stock		(300,143	)		(291,438	)
Retained Earnings		2,301,791			1,826,565
Net profit		325,675			608,114
Other comprehensive loss		(15,748	)		(15,748	)
TOTAL EQUITY		2,560,116			2,372,745
TOTAL EQUITY LIABILITIES		6,000,984			5,742,289

Copa Holdings, S. A. and Subsidiaries
Consolidated statement of cash flows
For the six months ended
(In US$ thousands)

		2025				2024
	(Unaudited)				(Unaudited)
Net cash flow from operating activities		484,282				470,777
Investing activities
Net Acquisition of Investments		(294,697	)			(35,609	)
Net cash flow related to advance payments on aircraft purchase contracts		(60,204	)			71,516
Acquisition of property and equipment		(390,502	)			(279,052	)
Proceeds from sale of property and equipment		26,448				—
Acquisition of intangible assets		(14,342	)			(15,551	)
Cash flow used in investing activities		(733,297	)			(258,696	)
Financing activities
Proceeds from new borrowings		165,000				108,000
Payments on loans and borrowings		(122,890	)			(108,029	)
Payment of lease liability		(28,504	)			(32,633	)
Repurchase of treasury shares		(8,706	)			(50,402	)
Dividends paid		(133,027	)			(134,756	)
Cash flow used in financing activities		(128,127	)			(217,820	)
Net (decrease) increase in cash and cash equivalents		(377,142	)			(5,739	)
Cash and cash equivalents as of January 1		613,313				206,375
Cash and cash equivalents as of June 30	$	236,171			$	200,636
Short-term investments		764,137				748,239
Long-term investments		368,332				258,379
Total cash and cash equivalents and investments as of June 30	$	1,368,640			$	1,207,254

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. 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)	2Q25		2Q24		1Q25		YTD25		YTD24
Operating Costs per ASM as Reported (in US$ Cents)	8.5		8.9		8.8		8.6		9.2
Aircraft Fuel Cost per ASM (in US$ Cents)	2.7		3.3		3.0		2.9		3.4
Operating Costs per ASM excluding fuel (in US$ Cents)	5.8		5.6		5.8		5.8		5.8

 

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 2024 (2Q24).

FAQ

What was Copa Holdings (CPA) earnings per share in Q2 2025?

Copa Holdings reported earnings of $3.61 per share in Q2 2025, representing a 25.2% increase compared to Q2 2024.

How much cash does Copa Holdings (CPA) have in Q2 2025?

Copa Holdings ended Q2 2025 with approximately $1.4 billion in cash, short-term and long-term investments, representing 39% of last twelve months' revenues.

What is Copa Holdings' (CPA) dividend payment for Q2 2025?

Copa Holdings announced a dividend payment of $1.61 per share, payable on September 15, 2025, to shareholders of record as of August 29, 2025.

How many aircraft does Copa Holdings (CPA) operate in 2025?

Copa Holdings operates a consolidated fleet of 115 aircraft, including 67 Boeing 737-800, 32 Boeing 737 MAX-9, 9 Boeing 737-700, 6 Boeing 737 MAX-8, and 1 Boeing 737-800 freighter.

What was Copa Holdings' (CPA) operating margin in Q2 2025?

Copa Holdings achieved an operating margin of 21.0% in Q2 2025, representing an increase of 1.5 percentage points compared to Q2 2024.