Copa Holdings (NYSE: CPA) Q2 profit falls as fuel costs surge
Rhea-AI Filing Summary
Copa Holdings reported solid top-line growth in 2Q26 while profits contracted sharply due to much higher fuel costs. Operating revenue rose 25.7% year over year to about US$1.06 billion, driven by 16.5% capacity growth, higher yields and a 7.9% increase in unit revenues (RASM) to 11.6 cents.
Operating profit was US$91.7 million with an 8.7% margin, down 13.1 percentage points, and net profit was US$68.2 million, or US$1.67 per share, 53.9% lower than 2Q25. Average fuel price per gallon increased 84.8% to US$4.28, pushing CASM up to 10.6 cents, while Ex-Fuel CASM stayed at 5.7 cents. Liquidity remained strong with roughly US$1.5 billion in cash and investments, 39% of last-twelve-month revenue, and a Net Debt-to-EBITDA ratio of 0.9x. The fleet reached 131 aircraft, and the board ratified a US$1.71 per-share dividend. For 2026, the company guides to a 17–19% operating margin and 14–15% ASM capacity growth, and is rolling out Starlink Wi-Fi and expanding its Panama hub from six to eight banks.
Positive
- None.
Negative
- 2026 operating margin guided to 17–19%, down from 22.6% in 2025.
Filing Explained
Completed six-month cash flows show substantial aircraft investment alongside borrowings, dividends and share repurchases.
As a Form 6-K, this filing furnishes Copa Holdings’ interim information; its 2Q26 results are completed, while the 2026 margin and capacity figures remain guidance. The six-month cash flows show
The report labels a 2026 operating-margin range of
At
Key Figures
2Q26 Operating Revenue: US$1,059.3 million
2Q26 Operating Profit: US$91.7 million
2Q26 Net Profit: US$68.2 million
+5 more
8 metrics
2Q26 Operating Revenue
US$1,059.3 million
Total operating revenue for 2Q26, up 25.7% year over year
2Q26 Operating Profit
US$91.7 million
Operating profit for 2Q26 with an 8.7% operating margin
2Q26 Net Profit
US$68.2 million
Net profit for 2Q26, corresponding to a 6.4% net margin
Basic EPS 2Q26
US$1.67
Basic earnings per share in 2Q26, down 53.9% from 2Q25
Cash and Investments June 30, 2026
US$1.5 billion
Approximate cash, short- and long-term investments, 39% of LTM revenue
Net Debt-to-EBITDA
0.9x
Net Debt-to-EBITDA ratio at the end of 2Q26
2026 Capacity Growth Guidance
14–15% ASM growth
Expected 2026 capacity increase in available seat miles vs 2025
2026 Operating Margin Guidance
17–19%
Projected full-year 2026 operating margin compared to 22.6% in 2025
Key Terms
available seat mile (ASM), load factor, Net Debt-to-EBITDA ratio, revenue per available seat mile (RASM), +1 more
5 terms
available seat mile (ASM) financial
"Capacity in ASMs increased by 16.5% year over year."
load factor financial
"Load factor of 86.7%, compared to 87.3% in 2Q25."
Load factor is a measure of how efficiently a transportation service, such as a plane, train, or bus, fills its available seats or space over a period of time. It is calculated by dividing the actual number of passengers or usage by the total available capacity. A higher load factor indicates better utilization, which can lead to more profitable operations and is important for investors assessing the efficiency and profitability of transportation companies.
Net Debt-to-EBITDA ratio financial
"The Company ended 2Q26 with a Net Debt-to-EBITDA ratio of 0.9x."
The net debt-to-EBITDA ratio compares a company's total debt, after subtracting its cash reserves, to its earnings before interest, taxes, depreciation, and amortization (a measure of profitability). It shows how many years it would take for the company to pay off its debt using its current earnings. Investors use this ratio to assess a company's financial health and its ability to manage and repay debt.
revenue per available seat mile (RASM) financial
"RASM increased 7.9% to 11.6 cents compared to 2Q25."
Cost per available seat mile excluding fuel (Ex-Fuel CASM) financial
"Ex-Fuel CASM decreased 0.1% year over year to 5.7 cents."
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Copa Holdings (CPA) perform financially in 2Q26?
Copa Holdings generated US$1.06 billion in 2Q26 revenue, up 25.7% year over year, with operating profit of US$91.7 million and net profit of US$68.2 million. Operating margin fell to 8.7% and net margin to 6.4% amid significantly higher fuel costs.
How did higher fuel prices impact Copa Holdings (CPA) in 2Q26?
Average fuel price per gallon rose 84.8% to US$4.28, lifting fuel expense to US$449.6 million, up 110.0%. This pushed CASM to 10.6 cents and reduced operating margin from 21.7% in 2Q25 to 8.7% in 2Q26.
What is Copa Holdings' (CPA) liquidity and leverage position as of June 2026?
Copa ended 2Q26 with about US$1.5 billion in cash, short- and long-term investments, equal to 39% of last-twelve-month revenue. The company reported a Net Debt-to-EBITDA ratio of 0.9x, indicating a relatively conservative leverage profile.
What 2026 guidance did Copa Holdings (CPA) provide?
For 2026, Copa expects an operating margin of 17–19% and capacity growth in ASMs of 14–15% versus 2025. Assumptions include around 87% load factor, RASM of 12.0 cents, Ex-Fuel CASM near 5.7 cents and an all-in fuel price of US$3.60 per gallon.
What dividend did Copa Holdings (CPA) announce in this report?
The board ratified Copa’s third 2026 dividend of US$1.71 per share. The dividend is scheduled to be paid on September 15, 2026, to shareholders of record as of August 31, 2026, continuing the company’s pattern of cash returns.
What operational initiatives is Copa Holdings (CPA) undertaking?
Copa began operating aircraft with Starlink high-speed Wi-Fi, aiming to equip its entire fleet by 1H27, and plans to expand its Panama hub from six to eight connecting banks in March 2027, enhancing connectivity and aircraft utilization.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Report on Form 6-K dated for the month of August 2026
Copa Holdings, S.A.
(Translation of Registrant's Name Into English)
Boulevard Costa del Este, Avenida Principal y Avenida de la Rotonda
Urbanización Costa del Este
Complejo Business Park, Torre Norte
ParqueLefevre
Panama City, Panama
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
| Form 20-F | X | Form 40-F | |||||||||||||||
(Indicate by check whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
| Yes | No | X | ||||||||||||
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b);82- ____)
Enclosure: 2Q26 Earnings Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
Copa Holdings, S.A. (Registrant) | ||||||||
| Date: 8/7/2026 | ||||||||
| By: | /s/ Peter Donkersloot | |||||||
| Name: Peter Donkersloot Title: CFO | ||||||||
Exhibit 99.1
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:
| Date: | August 6, 2026 | ||||
| Time: | 11:00 AM US ET (10:00 AM Local Time) | ||||
| Join by phone: | https://register-conf.media-server.com/register/BI7731c79e95974416b07d2c80288ff022 | ||||
| Webcast (listen-only): | https://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.
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) | $ | 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 | ||||||||||||||
10