Copa Holdings (NYSE: CPA) grows Q1 2026 profit and keeps leverage low
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Copa Holdings reported strong first-quarter 2026 results, combining double‑digit growth with very high profitability. Operating revenue rose 17.0% to about US$1.1 billion, while net profit reached US$212.5 million, lifting basic EPS 20.5% year over year to US$5.16.
Operating margin was 24.6% and net margin 20.2%, helped by a 14.0% increase in capacity and 15.0% higher traffic, which pushed load factor to 87.2%. Unit revenue (RASM) increased 2.7%, and CASM excluding fuel edged down 1.0%, offsetting a 7.5% rise in jet fuel prices.
The company ended the quarter with about US$1.5 billion in cash and investments and an adjusted net debt‑to‑EBITDA ratio of 0.7 times, indicating a solid balance sheet. Management is guiding to 16% capacity growth and an 8%–12% operating margin in 2Q26, and has ordered 40 Boeing 737 MAX aircraft plus 20 options to support long‑term growth.
Positive
- Strong, profitable growth: 1Q26 operating revenue grew 17.0% to approximately US$1.1 billion, while net profit reached US$212.5 million with a 24.6% operating margin and 20.2% net margin.
- Solid balance sheet: Cash, short- and long-term investments totaled about US$1.5 billion (40% of last-twelve-month revenues), and adjusted net debt to EBITDA was a low 0.7 times.
- Strategic fleet expansion: A Boeing 737 MAX order of 40 firm aircraft plus 20 purchase options, with deliveries from 2030 to 2034, supports long-term capacity growth and fleet flexibility.
Negative
- None.
Insights
Copa delivers high-margin growth with a strong balance sheet despite higher fuel.
Copa Holdings combined 17% revenue growth with a 24.6% operating margin in 1Q26, which is unusually strong for an airline. Capacity grew 14.0% while traffic rose 15.0%, lifting load factor to 87.2% and supporting a 2.7% increase in RASM.
Cost performance was disciplined. CASM rose only 1.6% despite a 7.5% increase in jet fuel prices and higher activity, while CASM Ex‑fuel slipped 1.0% to 5.8 cents. Management estimates the fuel spike in late March had roughly a US$20 million negative impact on quarterly results.
Leverage remains low, with adjusted net debt of US$893.5 million and an adjusted net debt‑to‑EBITDA ratio of 0.7 times. For 2Q26, guidance of an 8%–12% operating margin reflects a projected 80%–90% jump in fuel prices; management expects to recover about half via higher revenue given advanced bookings.
Key Figures
Total operating revenue: US$1,052.4M
Net profit: US$212.5M
Basic EPS: US$5.16
+5 more
8 metrics
Total operating revenue
US$1,052.4M
1Q26 consolidated operating revenue, +17.0% year over year
Net profit
US$212.5M
1Q26 net profit, +20.2% year over year
Basic EPS
US$5.16
1Q26 basic earnings per share, +20.5% vs 1Q25
Operating margin
24.6%
1Q26 operating margin on US$1.05B revenue
Cash and investments
US$1.5B
Cash, short- and long-term investments at 1Q26 end; 40% of LTM revenue
Adjusted net debt/EBITDA
0.7x
Adjusted net debt to LTM EBITDA as of 1Q26
Capacity growth
14.0%
Year-over-year increase in ASMs in 1Q26
Average fuel price
US$2.73/gal
All-in jet fuel price in 1Q26, +7.5% year over year
Key Terms
available seat miles (ASMs), revenue passenger miles (RPMs), load factor, CASM excluding fuel (Ex-fuel CASM), +1 more
5 terms
available seat miles (ASMs) financial
"Capacity, measured in available seat miles (ASMs), grew by 14.0% year over year"
Available seat miles (ASMs) measure an airline’s passenger-carrying capacity by multiplying the number of seats available on each flight by the distance those seats are flown. Investors use ASMs to gauge how much travel capacity an airline is offering—similar to counting how many bus seats are available and how far each bus goes—to compare growth, efficiency and how well an airline fills that capacity when combined with passenger demand metrics.
revenue passenger miles (RPMs) financial
"passenger traffic in RPMs increased by 15.0%"
Revenue passenger miles (RPMs) measure the total distance traveled by paying airline passengers, calculated by multiplying each passenger by the miles they fly and adding them up. Think of it like tracking the total miles driven by all paying riders in a taxi fleet. Investors watch RPMs because they show actual travel demand and help estimate future ticket revenue, capacity use, and how well an airline fills its flights.
load factor financial
"As a result, load factor increased by 0.8 percentage points to 87.2%."
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.
CASM excluding fuel (Ex-fuel CASM) financial
"CASM excluding fuel (Ex-fuel CASM) decreased 1.0% to 5.8 cents."
Adjusted Net Debt to EBITDA financial
"Adjusted Net Debt to EBITDA ratio ended 1Q26 at 0.7 times."
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 May 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: 1Q26 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: 5/14/2026 | ||||||||
| By: | /s/ Peter Donkersloot | |||||||
| Name: Peter Donkersloot Title: CFO | ||||||||
Copa Holdings Reports First-Quarter Financial Results
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 events
•On 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).
1
Management’s comments on 1Q26 results
Copa 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.
2
Outlook for 2026
The 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 Webcast
The 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: | https://register-conf.media-server.com/register/BI11f5627c03894b02a01637f339decd59 | ||||
| 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 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.
3
Copa Holdings, S. A. and Subsidiaries
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$) | 2.73 | 2.54 | 7.5 | % | 2.50 | 9.2 | % | ||||||||||
| Average Length of Haul (miles) | 1,893 | 1,920 | (1.4) | % | 1,870 | 1.2 | % | ||||||||||
| Average Stage Length (miles) | 1,260 | 1,260 | — | % | 1,236 | 1.9 | % | ||||||||||
| Departures | 43,033 | 37,829 | 13.8 | % | 41,942 | 2.6 | % | ||||||||||
| Block Hours | 138,479 | 121,611 | 13.9 | % | 133,488 | 3.7 | % | ||||||||||
| Average Aircraft Utilization (hours) | 12.2 | 12.1 | 1.3 | % | 11.9 | 3.1 | % | ||||||||||
4
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of profit or loss
(In US$ 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 | % | |||||||||||||||||||||||||
5
Operating revenue
Consolidated revenue for 1Q26 totaled US$1.1 billion, a 17.0% increase compared to 1Q25 on 14.0% capacity growth, measured in ASMs.
Passenger revenue totaled US$1,004.2 million, an increase of 16.9% year-over-year, driven by a 15.0% increase in RPMs and a 1.6% increase in passenger yield.
Cargo and mail revenue totaled US$29.8 million, an increase of 15.8%, due to higher cargo volumes.
Other operating revenue totaled US$18.5 million, a 27.8% increase compared to 1Q25, mostly due to an increase in ConnectMiles revenues from non-air partners.
Operating expenses
Consolidated operating costs for 1Q26 totaled US$793.8 million, a 15.8% increase year-over-year, primarily due to capacity growth and higher fuel costs.
Fuel totaled US$282.5 million, an increase of US$50.3 million or 21.7%, driven by a 12.9% increase in gallons consumed and a 7.5% higher average fuel price.
Wages, salaries, benefits, and other employee expenses totaled US$137.7 million, up 17.1%, mostly reflecting additional operational staff to support capacity growth and performance-based variable compensation.
Passenger servicing totaled US$28.1 million, an increase of 12.4%, driven by a 15.3% increase in onboard passengers.
Airport facilities and handling charges totaled US$79.2 million, a 20.6% year-over-year increase, mainly driven by increased departures and higher fees in certain airports as well as the impact of currency exchange.
Sales and distribution totaled US$54.8 million, a 9.1% increase mostly due to higher sales driven by capacity growth and higher yields, partially offset by higher penetration of both direct sales and lower-cost NDC travel agency channels.
Maintenance, materials, and repairs totaled US$46.6 million, an 18.2% increase compared to 1Q25, mainly driven by an increase in flight hours, as well as the timing of events related to component repairs and materials consumption.
Depreciation and amortization totaled US$100.7 million, a 16.7% year-over-year increase, due to higher amortization of aircraft and maintenance events.
Flight operations totaled US$41.1 million, a 21.8% year-over-year increase, mainly driven by a 13.9% increase in block hours, route mix, and higher overflight rates in certain countries, including the impact of currency exchange rates.
Other operating and administrative expenses totaled US$23.1 million, a 34.6% decrease compared to the same period in 2025, mainly due to realized gains from engine exchange transactions.
Non-operating Income (Expense)
Consolidated non-operating income (expense) totaled US$(11.6) million in 1Q26.
Finance cost totaled US$(25.8) million, comprised of US$17.9 million related to loan interest expenses, US$4.4 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$16.1 million, related to proceeds from investments.
6
Gain (loss) on foreign currency fluctuations totaled US$1.5 million, mainly driven by the appreciation of the Brazilian real.
Net change in fair value of derivatives totaled US$(1.1) million, due to mark-to-market losses on hedge positions related to the Brazilian real.
Other non-operating income (expense) totaled US$(2.3) million in 1Q26, due to an unrealized mark-to-market loss related to changes in the value of financial investments.
7
Copa Holdings, S. A. and Subsidiaries
Consolidated statement of financial position
(In US$ 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 | ||||||||||||
8
Copa Holdings, S. A. and Subsidiaries
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 | ||||||||||
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 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 | ||||||||||||||
10
FAQ
How did Copa Holdings (CPA) perform financially in 1Q26?
Copa Holdings posted strong 1Q26 results, with operating revenue of about US$1.1 billion, up 17.0% year over year. Net profit reached US$212.5 million, and basic EPS rose 20.5% to US$5.16, reflecting high margins and efficient operations.
What were Copa Holdings’ key profitability metrics for 1Q26?
Profitability remained high in 1Q26, with an operating margin of 24.6% and a net margin of 20.2%. These levels, combined with double-digit revenue growth, underscore the resilience of Copa’s hub model even amid higher jet fuel prices.
How did fuel costs impact Copa Holdings’ 1Q26 results?
All-in jet fuel prices increased 7.5% year over year to US$2.73 per gallon, contributing to a 21.7% rise in fuel expense. Management estimates higher prices, especially late in March, reduced first-quarter results by roughly US$20 million compared with the prior year.
What is Copa Holdings’ balance sheet and liquidity position after 1Q26?
Copa ended 1Q26 with about US$1.5 billion in cash, short-term and long-term investments, equal to 40% of last-twelve-month revenues. Adjusted net debt stood at US$893.5 million, resulting in a conservative adjusted net debt-to-EBITDA ratio of 0.7 times.
What guidance did Copa Holdings give for 2Q26 and full-year 2026?
For 2Q26, Copa expects an operating margin between 8% and 12% with 16% ASM growth, pressured by an 80%–90% jump in fuel costs. For 2026, it targets 11%–13% ASM growth, about 87% load factor, and Ex-fuel CASM near 5.7 cents.
What fleet and dividend actions did Copa Holdings announce around 1Q26?
Copa took delivery of two Boeing 737 MAX 8 jets in 1Q26, ending the quarter with 127 aircraft, and added two more in 2Q26. The board ratified a second 2026 dividend of US$1.71 per share, payable June 15, 2026, to shareholders of record on May 29, 2026.