Copa Holdings Reports Second-Quarter Financial Results
Rhea-AI Summary
Copa Holdings (NYSE: CPA) reported 2Q26 operating profit of US$91.7 million with an 8.7% operating margin, down 13.1 percentage points year over year, as fuel costs surged. Net profit was US$68.2 million, or US$1.67 per share, a 53.9% EPS decline versus 2Q25.
Total operating revenue rose 25.7% to US$1.06 billion, supported by 16.5% capacity growth, 8.7% higher passenger yields, and RASM up 7.9%. CASM increased 26.0% to 10.6 cents, driven by jet fuel, while Ex-fuel CASM was stable at 5.7 cents. Load factor was 86.7%.
Copa ended the quarter with about US$1.5 billion in cash and investments (39% of LTM revenues) and a 0.9x Net Debt-to-EBITDA ratio, operating a fleet of 131 aircraft after four 737 MAX 8 deliveries. The board ratified a US$1.71 per share dividend payable September 15, 2026. Copa Airlines also began offering Starlink onboard internet and plans full-fleet installation by first half 2027, and will move from six to eight connecting banks at its Hub of the Americas starting March 2027.
Positive
- Operating revenue +25.7% YoY to US$1.06 billion in 2Q26
- Passenger yields +8.7% YoY to 12.6 US$ cents
- RASM +7.9% YoY to 11.6 US$ cents
- Capacity (ASMs) +16.5% YoY with 86.7% load factor
- Ex-fuel CASM stable at 5.7 US$ cents (‑0.1% YoY)
- Strong liquidity ~US$1.54 billion cash and investments; 39% of LTM revenue
- Low leverage Net Debt-to-EBITDA ratio of 0.9x at 2Q26 end
- Ongoing shareholder returns with US$1.71 per share dividend declared
- Fleet expansion with four 737 MAX 8 deliveries, reaching 131 aircraft
- Operational reliability 90.6% on-time performance and 99.8% completion factor
Negative
- Operating margin down 13.1 p.p. YoY to 8.7% in 2Q26
- Net profit down 54.2% YoY to US$68.2 million in 2Q26
- EPS down 53.9% YoY to US$1.67 in 2Q26
- CASM up 26.0% YoY to 10.6 US$ cents, driven by fuel
- Fuel expense +110.0% YoY to US$449.6 million; price per gallon +84.8%
- Net margin down 11.2 p.p. YoY to 6.4% in 2Q26
- Operating profit halved YoY down 50.0% to US$91.7 million
News Explained
At June 30, investment spending exceeded six-month operating cash generation, while reported borrowings and lease liabilities totaled substantial obligations.
Copa Holdings'
The
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 08 | 2Q26 release schedule | Neutral | +1.7% | Scheduled the second-quarter earnings release and conference call for August 5 and August 6. |
| May 13 | 1Q26 earnings report | Positive | +17.9% | Reported higher EPS, strong margins, capacity growth, and a 1Q26 dividend. |
| Apr 14 | 1Q26 release schedule | Neutral | -0.2% | Scheduled the first-quarter earnings release and conference call for May 13 and May 14. |
| Feb 11 | 4Q25 earnings report | Positive | -0.1% | Reported fourth-quarter and full-year profit, margins, cash, and the 2026 dividend. |
| Jan 08 | 4Q25 release schedule | Neutral | +0.5% | Scheduled the fourth-quarter and full-year earnings release for February 11. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history was mixed: the prior reported-quarter result aligned with a positive reaction, while other earnings-related events showed limited directional alignment.
Key Terms
rasm technical
casm technical
net debt-to-ebitda financial
ifrs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
PANAMA CITY, Aug. 05, 2026 (GLOBE NEWSWIRE) -- 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 of8.7% , a 13.1 percentage point decrease year over year. - Net profit of US
$68.2 million or US$1.67 per share, a53.9% 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) increased7.9% to 11.6 cents compared to 2Q25, while capacity in ASMs increased by16.5% year over year. - Load factor of
86.7% , compared to87.3% 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 represent39% 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 of99.8% , 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).
Full 2Q26 Earnings Release available for download at:
ir.copaair.com/financial-information/quarterly-results
Conference Call and Webcast
The Company will hold its financial results conference call tomorrow at 11am ET (10am local). Details follow:
| Date: | August 6, 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 Holdings
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.
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 | |||||||||||||||||||||||
| 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$) | 4.28 | 2.32 | 84.8 | % | 2.73 | 56.8 | % | 3.51 | 2.43 | 44.8 | % | ||||||||||||
| Average Length of Haul (miles) | 1,918 | 1,905 | 0.7 | % | 1,893 | 1.3 | % | 1,906 | 1,912 | (0.4 | )% | ||||||||||||
| Average Stage Length (miles) | 1,255 | 1,231 | 2.0 | % | 1,260 | (0.4 | )% | 1,257 | 1,245 | 1.0 | % | ||||||||||||
| Departures | 44,301 | 38,985 | 13.6 | % | 43,033 | 2.9 | % | 87,334 | 76,814 | 13.7 | % | ||||||||||||
| Block Hours | 142,113 | 122,526 | 16.0 | % | 138,479 | 2.6 | % | 280,592 | 244,137 | 14.9 | % | ||||||||||||
| Average Aircraft Utilization (hours) | 12.1 | 11.9 | 1.4 | % | 12.2 | (1.0 | )% | 12.2 | 12.0 | 1.4 | % | ||||||||||||
| Copa Holdings, S. A. and Subsidiaries Consolidated statement of profit or loss (In US$ 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 | % | |||||||||||||
| 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 | ||||
| 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 | |||
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) | $ | 398,678 | $ | 342,606 | $ | 379,579 | |||||
| LTM EBITDA (in US$ thousands) | $ | 1,170,865 | $ | 1,117,132 | $ | 1,243,353 | |||||
| Net Debt to EBITDA | 0.9 | 0.6 | 0.7 | ||||||||
