CPA

It has been about a month since the last earnings report for Copa Holdings (CPA). Shares have lost about 8.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Copa Holdings due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Copa Holdings, S.A. before we dive into how investors and analysts have reacted as of late. Copa Holdings, S.A. reported second-quarter 2026 earnings of $1.67 per share, down 53.9% year over year. The figure missed the Zacks Consensus Estimate of $1.88 by 11.2%, mainly due to a sharp increase in jet fuel costs. Quarterly revenues rose 25.7% year over year to $1.06 billion but missed the consensus mark of $1.07 billion by 0.6%. Passenger yields increased 8.7%, while revenue per available seat mile rose 7.9% year over year. Passenger revenues, which accounted for 94.6% of the top line, increased 25.8% year over year to $1.00 billion. The upside was owing to a 15.7% increase in revenue passenger miles and an 8.7% increase in passenger yield. The improvement reflected higher traffic and stronger pricing across the network. Cargo and mail revenues climbed 20.8% year over year to $34.18 million, owing to higher cargo volumes, which includes the full-year effect of a second freighter. Other operating revenues rose 32.4% year over year to $22.54 million, mainly owing to an increase in ConnectMiles revenues from non-air partners. Revenue passenger miles, a measure of traffic, increased 15.7% year over year. Available seat miles, which measure capacity, rose at a faster rate of 16.5%. As capacity growth outpaced traffic, load factor declined 0.6 percentage points from the year-ago reported quarter to 86.7%. Copa Holdings carried 4.14 million revenue passengers, up 14.9% year over year, while onboard passengers increased 15.1% year over year to 6.18 million. Passenger revenue per available seat mile rose 8% year over year to 11.0 cents. Revenue per available seat mile (RASM) rose 7.9% year over year to 11.6 cents. Operating expenses surged 46.8% year over year to $967.68 million. Fuel expense more than doubled to $449.55 million as the average price per gallon jumped 84.8% year over year to $4.28 and consumption increased 14.2%. The cost escalation reduced operating profit by 50% year over year to $91.66 million. Operating margin contracted 13.1 percentage points to 8.7%, while net margin fell 11.2 percentage points to 6.4%. Cost per available seat mile, or CASM, increased 26% year over year to 10.6 cents because of the fuel-price spike. Excluding fuel, CASM edged down 0.1% year over year to 5.7 cents, reflecting disciplined control over the airline’s underlying cost base. Wages, salaries, benefits and other employee expenses rose 7.4% year over year to $131.36 million. Depreciation and amortization increased 21.6% year over year, flight operations costs climbed 30.7%, and airport facilities and handling charges rose 19.6%. Copa Holdings ended June with $1.54 billion in cash, short-term investments and long-term investments. The total represented 39% of revenues over the trailing 12 months, while net debt to EBITDA stood at 0.9 times. Net cash flow from operating activities totaled $617.90 million for the first six months of 2026. Investing activities used $799.51 million, including advance payments on aircraft purchase contracts and property and equipment spending. The company took delivery of four Boeing 737 MAX 8 aircraft during the quarter and ended June with a fleet of 131 aircraft. Copa Holdings posted an on-time performance of 90.6% and a flight completion factor of 99.8%. The company operated its first aircraft equipped with Starlink Internet on July 4, 2026, and expects fleetwide installation by the first half of 2027. The airline also plans to shift from six to eight connecting banks at its Panama City hub beginning in March 2027. Copa Holdings’ board ratified a dividend payment of $1.71 per share for the third time in 2026.The dividend is scheduled for payment on Sept. 15, 2026, to shareholders of record as of Aug. 31. The payment follows $140.66 million in dividends paid during the first half of 2026. CPA also used $45.00 million for share repurchases over the same period. Demand across the network continues to be strong, despite fuel prices being high and volatile as compared to prior-year levels. Based on demand trends and current fuel cost projections, Copa Holdings is updating its full-year 2026 outlook and now expects an operating margin in the range of 17% to 19% (prior view: 8% to 12%) and a capacity increase in ASMs within the range of 14% to 15% (prior view: 16%).Top of Form For 2026, CPA’s management expects unit revenues (RASM) of 12 cents and a fuel price of $3.60 per gallon. The load factor for the current year is expected to be 87%. Non-fuel unit costs are anticipated to be 5.7 cents. Copa Holdings expects to end 2026 with 132 (prior view: 133) aircraft and 2027 with 142 (prior view: 144) aircraft. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -12.39% due to these changes. At this time, Copa Holdings has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Copa Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11 a.m. ET Director of Investor Relations - Daniel Tapia Executive Chairman and Chief Executive Officer - Pedro Heilbron Executive Vice President - Robert Carey Chief Financial Officer - Peter Donkersloot Ponce Operator: Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings Second Quarter Earnings Call. During the presentation, all participants will be in listen only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, you will have to press *11 on your touch tone phone. As a reminder, this call is being webcast and recorded on 08/06/2026. Now I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin. Daniel Tapia: Thank you, Alia, and welcome everyone to our second quarter earnings call. Joining me today are Mr. Pedro Heilbron, executive chairman and CEO of Copa Holdings, Mr. Robert Carey, executive vice president and Peter Donkersloot Ponce, our CFO. Pedro will begin with an overview of the core of the quarter, Robert will then discuss commercial performance and operational highlights. Peter will conclude with a review of our financial results and outlook. Immediately after, we will open the call for questions from analysts. As a reminder, Copa, Holdings financial reports have been prepared in accordance with International Financial Reporting Standards. In today's call, we will discuss certain non IFRS financial measures. A reconciliation of these measures to comparable IFRS measures can be found in our earnings release. Is available on our website. Our discussion today will also contain forward looking statements. Not limited to historical facts that reflect the company's current beliefs, expectations, and or intentions regarding future events and results. These forward looking statements involve risks and uncertainties that could cause actual results to differ materially are based on assumptions subject to change. Many of these are discussed in our annual report filed with the SEC. Now I will turn I would like to turn the call over to our Chairman and CEO, Mr. Pedro Heilbron. Pedro Heilbron: Thank you, Daniel. Good morning, and thank you all for joining us for our second quarter earnings call. Before we begin, I would like to recognize and thank our more than 9 thousand coworkers. Thanks for their commitment, professionalism, and disciplined execution, our team continued to deliver strong financial results while maintaining exceptional operational reliability and outstanding service to our passengers. They are the foundation of Copa's success and have my admiration and appreciation. Our second quarter results demonstrate the resilience of our business model in a significantly higher fuel price environment. And reinforce our ability to continue generating profitable growth through different market cycles. During the quarter, we delivered an operating profit of $91.7 million and an operating margin of 8.7 percent. These results were affected by an increase of 85 percent in the all in fuel cost, compared to Q2 25. With approximately 40 percent of our bookings sold before the TRIO cost increase. In the quarter, we grew capacity 16.5 percent measured in ASMs, while maintaining solid load factors. Our capacity additions in 2026 after years which aircraft delivery delays slowed our growth, allow us to further consolidate our Hub of The Americas advantage especially in an environment of strong passenger demand across our network. Looking ahead, booking trends remain strong. Which support our expectations for another year of high load factors and solid financial performance. As part of our continuous efforts to strengthen the Hub of the Americas, we recently set in place our transition from 6 to 8 connecting banks beginning in March 2027. This decision will improve connectivity throughout our network provide greater travel options for our passengers, increase aircraft utilization, optimize the use of airport infrastructure, and further strengthen Panama's position as the leading hub for intra America's travel. Combined with our structurally low unit cost, best in class operational reliability, strong balance sheet, and the unique advantages of our Hub of the Americas, we remain confident in our ability to successfully execute our growth plans and continue delivering value to our shareholders. With that, I will turn the call over to Robert who will discuss the quarter's commercial and operational highlights. Robert Carey: Thank you, Pedro, and good morning, everyone. Before I start, I would also like to thank our coworkers across the organization for their continued dedication and outstanding execution throughout the quarter. I have now been here 2 years and Copa's culture is clearly 1 of our strengths. Let me begin by reviewing some of the quarter's key commercial and operational highlights. Operating revenues increased 25.7 percent year over year to $1.1 billion Passenger yields increased 8.7 percent compared to Q2 25. Unit revenue or RASM increased 7.9 percent to 11.6 cents while capacity measured in ASMs increased 16.5 percent year over year. Load factor was 86.7 percent. Compared to 87.3 percent in Q2 25. Revenue performance for the quarter was partially impacted by the World Cup. Which temporarily affected travel patterns during June. As a result, June load factors were 2.3 percentage points lower year over year. Putting modest pressure on unit revenues. We estimate that the World Cup reduced second quarter RASM by approximately 0.1 cents. Despite this headwind, we delivered another quarter of solid revenue performance and continue to see strong demand trends throughout our network going forward. Demonstrating this strong demand we published our July traffic numbers this week, reporting a load factor of nearly 90 percent on a year over year capacity increase of 16 percent. Furthermore, this load factor 1 of our highest ever came in a higher yield environment. As you can see from our full year guidance, we are expecting these strong load factors to continue. On the operational side, we delivered industry leading results. During the quarter, Copa Airlines delivered an on time performance of 90.6 percent. And a flight completion factor of 99.8 percent. These results position Copa Airlines among the very best airlines globally, for operational reliability and represent a key differentiator of our passenger value proposition. Turning to the network. Recently, we announced the addition of Porlamar, in Isla Margarita, Venezuela. A popular leisure destination which will start in November. With this addition, Copa will serve 88 destinations in 32 countries throughout The Americas. Further strengthening the breadth and convenience of our network and reinforcing the leadership position of our Hub of the Americas. We also recently achieved an important milestone in enhancing our passenger experience with the launch of Starlink onboard Internet. In July, Copa operated its first Starlink equipped flight. Becoming the first airline in Latin America. To offer high speed Starlink connectivity. We expect the rollout of StarLink Wi Fi across our fleet to be completed in the first half of 27. Finally, on the fleet side, we took delivery of 4 Boeing 37 MAX 8 aircraft during the quarter. Ending the period with a fleet of 131 aircraft. For the remainder of the year, we expect to receive 1 additional 37. As always, we maintain significant flexibility in our fleet plan. Through delivery options, flight rights, lease expirations, and a substantial base of unencumbered aircraft. Which allows us to adjust the pace of growth if market conditions warrant. To conclude, demand trends and booking patterns remain strong. With that, I will turn the call over to Peter, who will review our results and outlook in more detail. Peter Donkersloot Ponce: Thank you, Robert, and good morning. I will also like to start by recognizing our team's continued dedication delivering industry leading results. Their commitment remains essential to our strong operational and financial performance. In the second quarter, we reported an operating profit of $91.7 million resulting in an operating margin of 8.7 percent. Compared to 21.7 percent in the second quarter of 25. Net profit totaled $68.2 million or $1.67 per share. And a net margin of 6.4 percent. Unit cost, excluding fuel or ex-fuel CASM, remained flat. Year over year. To 5.7 cents. Reflecting our continuous focus on cost discipline. Including fuel CASM increased 26 percent to 10.6 cents. A result of significantly higher fuel prices. During the quarter, average all in jet fuel price increased 85 percent year over year. From $2.32 to $4.28 per gallon. Despite having approximately 40 percent of our second quarter bookings already sold before the increase in fuel prices, strong demand higher yields enable us to recover approximately 40 percent of the year over year increase in fuel expenses during the quarter. Our fuel recovery calculation compares the year over year increase in revenues attributable to higher RASM with a year over year increase in fuel expenses resulting from higher all in fuel prices. Both calculated using 2026 capacity levels. Turning to our balance sheet and liquidity. We ended the quarter with approximately $1.5 billion in cash short term and long term investments. Representing 39 percent of last 12 months revenue. Our balance sheet remains among the strongest in the airline industry and continues to be a key competitive advantage. Total debt, including lease liabilities, stood at approximately 2.7 billion at quarter end. All of it related to aircraft financing. Our average cost of debt is currently 3.7 percent and we ended the quarter with a net debt-to-EBITDA ratio of 0.9x. Our financial strength continues to provide substantial flexibility as we continue to execute our long term strategy. Turning now to shareholder returns. I am pleased to announce our Board of Directors ratified the company's third quarterly dividend payment of $1.71 per share The dividend will be paid on September 15 to all shareholders of record as of August 31. Looking ahead, while fuel prices remain elevated and volatile relative to prior year levels, Underlying demand trends across our network continue to be strong. Based on these demand strengths, and current fuel cost projections, we are updating our full year outlook and now expect an operating margin for 2026 to be in the range of 17 to 19 percent. With a capacity growth of between 14 to 15 percent. This outlook assumes approximately a load factor of 87 percent a RASM of 12 cents, ex-fuel CASM of 5.7 cents, and an all in fuel price per gallon of $3.60. To summarize, demand and revenue trends remain strong across our network. We are maintaining industry leading cost discipline Our balance sheet remains among the strongest in the industry. And our proven business model continues to position us well to navigate the current fuel environment while delivering profitable growth and long term shareholder value. Thank you, and we will now open the call for questions from the analysts. Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Please stand by while we compile the Q and A roster. Our first question comes from the line of Savanthi Syth from Raymond James. Your line is now open. Savanthi Syth: Hey. Good morning. Pedro Heilbron: Good morning. Savanthi Syth: I was kind of curious. I think, Pedro, I think you mentioned or that the third the second quarter was 40 percent booked. Heading into prior to all the kind of fare increases. I was curious how much of the third quarter was booked prior to the fare increases? And as you kind of look out, how much of the third and the fourth quarter are in the books today? Pedro Heilbron: Okay. So in Q3, was pre war, of course. We had about 20%, a little bit below 20% booked for Q3. And, of course, much less for Q4. Almost nothing for Q4. And today? Adria, how much is the [Inaudible] Robert Carey: And then, Savi, your question was what is the outlook right now for Q3 or what is the booking level for Q3 and Q4? Savanthi Syth: Correct? that is correct. Robert Carey: Yeah. Yeah. Right now, we are about 75% booked for Q3. And about 25% sold for Q4. Savanthi Syth: Perfect. And if I might, just curious. I saw that it is kind of slight changes in the delivery schedule here, for 26, 27. Any early thoughts on how you are thinking about deliveries in 2028 as I am guessing some of those discussions are happening now? Pedro Heilbron: Yeah. We publish up to 2027. If I am not mistaken, and we are getting 12 aircraft in 2027. And as always, we have some flexibility. We are going to let go 7 hundred. That come up for their 20 year checks. So we will not do those 20 year checks. We will let 7 hundreds go. So net will be 10 aircraft. Joining Copa Holdings in 2027. We still have another 7 hundreds, which we can let go. We can park at any time. We can harvest the engine. So we also have that flexibility. But we are expecting a strong 2027. Of course, we are not guiding to 2027 yet. But we are very comfortable with the aircraft. We are we are having delivered next year, and we think we need them all. For 2028, the number again, we have not shared yet. It will be higher because it is like almost the end of the road for all the Boeing delays delivery delays that we had in the last 4 years. And However, we also have a number of lease expirations. We have 6 lease expirations plus the 7 hundred. So we have, like, 11 aircraft that we could let go easily. In 2028 depending on demand. And plus we have our unencumbered aircraft, which is over 40. So we have lots of flexibility. Again, we think we are going to need most of our 2028 deliveries We will share that information towards the end of the year. But we have lots of flexibility. I appreciate that preliminary color. Thanks, Fred. Operator: Thank you. Our next question comes from the line of Duane Pfennigwerth of Evercore ISI. Your line is now open. Duane Pfennigwerth: Hey. Thank you. As you think about the full year unit revenue guidance up 7 percent-ish on 15 percent capacity growth, so low 20s revenue growth. Just wondering if you can give some color on the balance of the back half, which do you expect a big variation between third quarter unit revenue growth and the fourth quarter? Or is your expectation that they would look pretty similar at this point? Pedro Heilbron: I will let Robert answer that question. But I will say that I think the number 1 thing that is very important is that we are seeing strong demand right now. And so that makes us very comfortable with our projections, of course, that as of today. And but I will let Robert share some of the specifics. Robert Carey: Yeah. Morning, Dwayne. At this point, we are seeing, plus 10 percent on RASM in h 2. I would say it is fairly consistent across Q3, Q4. In terms of year over year variation, it is broadly somewhere between the 2. So I think nothing really of note in either quarter. That varies. Duane Pfennigwerth: Great. Thank you. that is very clear. And then just on the trajectory of a non op net interest expense, anything to call out in that trajectory into the back half of the year? And thanks for taking the questions. Peter Donkersloot Ponce: Hello, Duane. How are you? This is Peter. I would say that it is pretty stable that net interest expense that we are going to see across the across the year, nothing to highlight and as we receive more aircraft we have little bit more financing cost, but it is a embedded in our seed plan and pretty much straightforward. To calculate it. Okay. Thank you. Operator: Thank you. Our next question comes from the line of Guilherme Mendes of JPMorgan. Your line is now open. Guilherme Mendes: Yes. Thank you. Good morning, all Pedro, Peter. Robert, and Daniel. Thanks for taking my question. I have 2. The first is on the capacity guidance. So the upward revision, that we saw this quarter, if you can share some details on what is behind it, it is just a matter of receiving more aircraft earlier than expected or anything else in terms of utilization maybe. And the second point is on the Starlink announcement. If you do not mind sharing some additional details on what is the expected CapEx or costs associated with implementing the StarLink and if you intend to charge for it, if it will be somehow a loyalty lever. Thank you. Pedro Heilbron: Yes. Thank you, Guilherme. In terms of the increased ASM guidance, as I heard correctly. I would say a few things. 1, that we were conservative or careful with our original guidance not being 100 percent sure on the Boeing delivery dates. As the year has gone through, not only is Boeing delivering on time, but actually at least 1 aircraft, we got ahead-- 1 aircraft we got ahead by a month. Another a few other aircraft came in a few weeks before. And so we have been able to deploy those aircraft much faster during the year. Plus, we have increased utilization. So we are also getting additional aircraft hours and ASM through utilization. So the combination of those factors allow us to increase our capacity guidance. And of course, the demand is there. We have strong demand. So we are really happy to be able to guide to higher ASM capacity. In terms of StarLink, I will let Robert complement the answer. But the CapEx was done many months ago. Already in the books and in the guidance. it is there. And, I do not know if you wanna share something else, Robert. Robert Carey: Yeah. On the business model, first, I mean, we are excited to be the first airline in Latin America to be offering this. The business model complementary access is gonna be there for business class passengers, all of our preferred member gold platinum, and presidential members, as well as Starlink subscribers. And then other passengers are gonna pay for the service. that is the business model we set up. Pedro Heilbron: Yeah. And on the CapEx, I will just add that it was prepaid as Pedro said. And would just start depreciating from depreciation once the service is installed. For the cash purposes, it is already sitting on our PP&E. Guilherme Mendes: Amazing. Super clear. Thank you all. Operator: Thank you. Thank you. Our next question comes from the line of Filipe Ferreira Nielsen of Citi. Your line is now open. Filipe Ferreira Nielsen: Hey. Hello, everyone. Thanks for taking my question. So I have 1 follow-up regarding the delivery schedule, and this is related to CapEx. Just wondering how this, changes your view on CapEx for the year. How are you expecting CapEx to behave considering that you are receiving aircraft earlier? And, my second question is related to the fuel and competitive behavior. Like just wanted to hear a little bit about how this competition behaving to the fuel drops you are guiding to lower fuel in the back half of the year. And everybody else is also guiding for that. Just wondering how pricing and competition is behaving in this environment. Thank you. Peter Donkersloot Ponce: Hello, Filipe. How are you? This is Peter. I will address your first question regarding CapEx. And, yeah, we are seeing CapEx right now between $700 and $750. So basically, $50 million less than what we guided at the beginning of the year, and this is basically most of it is because there was we are expecting now 1 less delivery that moved a couple weeks from December to January. Basically, that is what is guiding that difference. And then I will let Robert talk about and Pedro talk about the competition. Pedro Heilbron: Part. Yeah. So I do not wanna, of course, talk much about pricing and competition. it is a delicate subject. But so far, what we see is a lot of discipline. Triggered by the fuel prices, of course. As fuel prices, come down, we will see what happens. We are comfortable with our guidance. And I must say, I think it is important to mention that pre-war, pre the high fuel prices, average fares, at least in our region and network, were actually below Average yields were below 2019. And that is without taking into consideration inflation. So we are comfortable that the yields can be sustained as oil comes down. If not at a 100 percent, but enough for a positive effect going forward. I do not know if you guys yeah. No. I think you covered it. Filipe Ferreira Nielsen: Great. This is very clear. Thank you. Operator: Thank you. Our next question comes from the line of Rogério Araújo of Bank of America. Your line is now open. Rogério Araújo: Hi. Thank you very much. I have a question on the second-quarter guidance. You said the margin guidance at 8 percent to 12%. My question is, what were the main uncertainties embedded in that range? And how did those factors ultimately play out such that results landed within the guidance but toward the lower end? If you could explore what was the drivers behind the guidance and what has happened during the quarter. Thank you so much. Pedro Heilbron: You are talking about the RASM guidance. Right? Actually, the EBIT margin guidance for the second quarter. Okay. EBIT. Yeah. So we ended up we had guided for an 8% to 12% range, given the uncertainty related to the war, to fuel prices, and even to how demand was gonna respond to higher prices. So we gave a wider range than what we usually give. We ended up within that range. On the lower side of it. Mostly due to RASM that is our unit costs were within-- actually, we were at target. Robert Carey: A 100 percent in target. So was mostly coming from RASM. Fuel was also pretty much in the range we said which was between 80, 90 percent year over year. So the difference was RASM. Pedro Heilbron: I will let Robert add to it, but I will say that it was kind of very early,, maybe mid quarter when we spoke. And that is where it ended up. I mean, I do not think the there is a lot of magic to it. it is just what happened. Robert, I do not know if you wanna add to that. Robert Carey: Yeah. I think you covered most of it, Pedro. I mean, Morning, Rogério. The only thing I would say, you know, as we highlighted, the World Cup did impact us a bit more than expected in June. And that is the most notable factor we call out in what drove them being a bit on the lower side than we expected. And there is everything else is kind of small factors, and I think the only other thing is you know, as Pedro highlighted, we had a wide range. It was still pretty early on, and we were trying to understand everything going on with the new fuel environment. And so nothing else of note to call out. Pedro Heilbron: Yeah. And, Rogério, I would I would also mention that, of course, we are we are guiding to very high margins for the year. Which means that we are guiding for very strong margins in the second half of the year. And especially as fuel eases. I mean fuel still quite high because of crack. Even more so than WTI and Brent. The crack spread is very high. And we are still guiding to very strong margins for the second half of the year. And for the whole year. Rogério Araújo: that is very clear. Thank you so much. Pedro Heilbron: Hi, operator. We are ready for our next question. I think we lost the operator. Yeah. I think the next call was coming the next question was coming for Jens? Jens, can you hear us? Oh, can you hear me now? Yeah. We can hear you now. Michael Linenberg: Yeah. Sorry. My microphone was on mute. Operator: Our next question comes from Michael Linenberg of Deutsche Bank. Your line is now open. Michael Linenberg: Oh, hey. Good morning, everyone. I guess 2 here. Just the step up in the growth rate for the year, the capacity growth rate? I know Pedro, you talked-- you and Robert have both pointed to the stronger, better than healthy demand. As we think about what is driving that or the sort of the elements of the increased ASMs, how much of that is just an annualization of your growth from call it over the last 6 to 12 months. As well as, maybe increased utilization or stage length And should we anticipate any additional new markets to be announced beyond Porlamar? Pedro Heilbron: Okay. So let's get that let's get that information. So about 50%, half of the growth is full year effect from what was implemented last year. And then maybe a small percent, 10% would be new destinations. And the others the rest is new frequencies, traditional additional frequencies. And, yes, we expect we expect to announce at least 1 more destination for year-end. That should come probably before the end of the month, before the end of August. I think we will be announcing what would be our 89th destination. To be implemented in December. Okay. Great. Michael Linenberg: And then just my second question, just regarding the hub for next year going from 6 to 8 connecting banks. Pedro, I can recall a time when I think it was either 1 to 2 or 2 to 3. So you have made some huge advances here with respect to the Panama City hub. The question is, where are you on where are you from a infrastructure perspective? You know, going from 6 to 8, will you have tapped out all of all of the gates? Will you have to hard stand airplanes? How should we think about just the facility and its ability to accommodate those 8 connecting banks. You know, how much more runway does that give you before you would have to maybe sink shovels into the ground and build out the concourses. Thanks. Thanks for taking my questions. Pedro Heilbron: Yeah. Thank you, Mike. I will let Robert answer. Robert Carey: Hey, Mike. Good morning. So I think look-- hey, good morning. I did take it from 6 to 8 banks. Quite the growth story. Look. I think in terms of facilities, this you know, obviously, this helps us in freeing up capacity. We are not at the limit yet in the sixth bank. Structure, but we were starting to near the limits of it. This obviously creates more capacity for growth over the coming years and eases need for additional infrastructure. Plus, we have the internal benefits. You know, we get better utilization. On the aircraft as well as a lot of more options for our customers, which is what is most exciting. You know, I think in terms of the airport infrastructure then when it changes, you know, there is still a number of investment plans here at the airport over the coming you know, 5 to call it, 5-year horizon. Which will help with gates, which will help with runway capacity, etcetera, as well as just some other projects that are ongoing here. So the combination of those 2, you know, pretty similar to, I think, what we talked about back in the investor day, give us pretty good runway going forward into the next, you know, call it, 5, 10 years. To keep growing comfortably. Michael Linenberg: Robert, to go from 6 to 8 percent, does that at all change your connection rates and or does it make it less likely that you would want to take on the max 10, which I know is gonna be certified soon? And I know that you have the ability to you know, exchange you know, orders for max eights and nines into the tens. Does that at all change that calculus? Robert Carey: No. I mean, I think connectivity gives more options. And roughly, the connectivity for the passenger in terms of time of connection. I think, you know, there is some that go down a little, some that go up a little. So the on hold, the average stays broadly the same. In aircraft, it is-- aircraft decisions, no. I think, you know, no change. And we are evaluating the different fleet types that exist in for our new order. Pedro Heilbron: Yeah. What Mike, what the 8-bank will do and Robert mentioned most of it. I know he mentioned that utilization is gonna improve. And then they are gonna be better scheduled for passengers. Also, the airport assets are gonna be better utilized. So it is also great for the airport, which is great for all. So we see it as a as a very, very positive development. Robert Carey: Absolutely. Michael Linenberg: Great. But the RASM improver and a and a CASM detractor is kind of how I should think about it. Well, that is that is music for our ears. Exactly. it is like thank you. Operator: Thank you. Our next question comes from Jens Spiess of Morgan Stanley. Your line is now open. We will move to our next question from Alberto Valerio of EBS. Oh, sorry. You here, Jens? Jens Spiess: Yeah. Yeah. Sorry. Okay. Sorry. I was on mute. Yeah. Hi, everybody. So I only have 2 basically small modeling questions. 1 is on the buyback program, the 200 million I think you mentioned before that you had executed half of it, I think back on the envelope, we are getting to you executing around 35 million this quarter. So how much more or less do you have left? Is it around 65 million Is it correct? And secondly, on the 02/2027 deliveries, I think you were expecting to get 12 deliveries. You mentioned that 1 will be shifting from this year to next year. So are you still-- are you now expecting to receive 13 aircraft? And more or less throughout the year, how will you be receiving them? Is it more front or back loaded? Thank you. Peter Donkersloot Ponce: Hello, Jens. How are you? This is Peter. On the buyback program, just to clarify, we have executed $45 million year to date. And we have around $60 million left. For the program to be executed. And, of course, as we always said, whenever we finish, we will we will request the authorization to have an additional program. We always like to have the program open. And then on the delivery schedule, I will tell you to have small movements. Pedro Heilbron: As we get closer to delivery, deliveries are updated, we have movement And most of the movements we clarify are about a week. They are where delivery is expected in December, and then they move to January. It does not change the ASMs counts for at least this year does not change at all because we did not have that plane flying this year, so it does not change. And then the next year, we also have some deliveries moving from 2027 to 28, but it is also those December deliveries that are moving to January 2028. So, again, nothing material. it is just the regular update that as we get closer to the delivery dates. I do not know if you wanna add something. Robert Carey: The only thing the other part, Jens, is yeah. Look 12 next year are pretty evenly spaced throughout the year. Jens Spiess: Perfect. Alright. Alright. Thank you. Operator: Thank you. Our next question comes from Alberto Valerio of UBS. Your line is now open. Alberto Valerio: Thank you. Good morning, gentlemen. Thanks for taking my questions. I have 1 on your side. Oil price come up. Your cost come up, like, 85 percent per gallon. You could pass through a part of it, and you look like you keep this pass-through to the remain of the year. If you could detail or give some explanation where this demand is coming from. If it is strong around your network, South America, North America, Central, or if there is any specific point? Then the other point is about what a word was used before. It looked like airlines were leaving some profitability on the table. If you can tell us how resilient this is? Thank you very much. Pedro Heilbron: Thank you. I will start, and then I will let Robert complement my answer and maybe add some color. But we see strength throughout our network. There is not really 1 region that is that is doing much better or that is weak compared to the rest. Of course, we always we are always going to have certain markets are going to be on the on the top end. And then some that are going to be in between and maybe lower. But actually, every market is very healthy, and we are getting demand from our whole network. So that is, I would say, a very positive development which is not always the case. And the diversity of our network is always an asset. And I guess it is a greater asset now that everything is doing well. I am now I will end it. Robert Carey: I am not going to add to that. Yeah. Robert, but I think the only thing you know, as Pedro said, across the board, it is pretty consistent that all the markets are reacting you know, are showing positive demand signs and pretty evenly kind of the yield increases coming through. And so I think that is a very positive sign to where things stand. No. You know, I think this there is some, you know, Brazil, North America are slightly stronger, but it is kind of, you know, on the margin. Everything is doing very well. Pedro Heilbron: And, To answer your other question? We are we are we are pretty much positive on how sustainable the price increases are going to be. Because, as I mentioned before that before the oil crisis, our yields, our average yields in the region, were below 2019, and that is not even taking into account inflation. So as fuel comes down, even if there are some adjustments and some pricing comes down, we believe there will remain a positive impact And you know, I should also say that we had a record quarter in the in the first quarter of this year. So going back to that, it is perfectly fine, but if there is and that was with the kind of lower than 2019 yields. We still had a record quarter. So if something is left which we are pretty sure there will be something left on the price increases, if fuel comes down. it is just gonna be net positive over an already strong base. So we are very positive about this. Alberto Valerio: it is very clear. Look forward to it. Thank you very much. Operator: Thank you. This concludes the question and answer session. I would now like to turn it back to Pedro Heilbron, chairman and CEO, for closing remarks. Pedro Heilbron: Okay. Thank you. Thank you, operator. And thank you all for participating in our earnings call and our Q2 earnings call. Also, thank you for your continued support As you know, you have a committed Copa team on this side. Always working hard to make the results better. And with a very, very positive attitude about how this year. We think it is going to turn out. So, again, thank you, and have a great day. Operator: Ladies and gentlemen, thank you for participating. You may now disconnect. Before you buy stock in Copa, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Copa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Copa. The Motley Fool has a disclosure policy. Copa (CPA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Copa Holdings stock has delivered a 128.4% total return over the past five years, yet current valuation checks still suggest the shares lean cheap rather than stretched. With the company reporting solid recent operating performance and the market already rewarding the stock, investors are weighing how much value may still be on the table. Over five years, Copa Holdings has returned 128.4%. This means the stock has already rewarded long term holders and set a higher bar for future upside to look attractive at today's levels. Recent traffic growth and fleet expansion can support expectations for future revenue, while higher jet fuel costs remain a key risk that may pressure margins if pricing does not keep pace. The company screens as undervalued across its broader checks, with a high 6 out of 6 valuation score that points to a stock the market may not be fully pricing in. The issue now is whether Copa Holdings' current share price still offers a margin of safety after this multi year run. Find out why Copa Holdings' 27.0% return over the last year is lagging behind its peers. P/E is a useful yardstick for Copa Holdings because earnings are a key focus for investors in established airlines. On this measure, Copa Holdings trades on a P/E of 9.3x, which sits below the wider Airlines industry average of about 12.0x and also below the peer group average near 15.8x. That places the stock at a discount to many listed airline stocks on current earnings. A tailored fair P/E ratio for Copa Holdings that factors in its business profile and risk sits higher at about 20.5x. Compared with the current 9.3x, this is a wide gap that points to the market applying a cautious earnings multiple. Despite the recent reports of strong quarterly profits and solid traffic statistics, the P/E still indicates that the stock is priced below what this framework suggests for its earnings power. On the P/E multiple, Copa Holdings stock currently screens as undervalued relative to both industry peers and its own modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives take Copa Holdings' valuation puzzle a step further by spelling out the specific earnings, margin and growth paths that would need to hold for the stock to look meaningfully cheaper or more expensive than today's price, and they sit on the company's Community page. Rather than relying on a single multiple or model output, each narrative sets out the assumptions behind its fair value so you can compare them with actual results as they are reported. One of the top community narratives on Copa Holdings: 6% undervalued Read one of the top narratives on Copa Holdings Do you think there's more to the story for Copa Holdings? Head over to our Community to see what others are saying! Copa Holdings still screens as undervalued on earnings multiples, even after a strong five year return profile. The key question now is whether the current discount reflects an overly cautious market or fairly prices the risks around fuel costs, competition and future margins. For investors, the crux is simple: the opportunity rests on Copa Holdings maintaining solid profitability so the P/E gap can close, while the bear case is that the lower multiple is justified if those operational pressures bite harder than expected. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CPA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Copa Holdings, S.A.? Here are five stocks we like better. Fuel costs pressured profitability: Copa reported $91.7 million in operating profit and an 8.7% margin, down from 21.7% a year earlier, as average jet fuel prices surged 85%. Revenue nevertheless climbed 25.7% to $1.1 billion, supported by stronger yields and demand. Management raised its growth outlook: Copa now expects 2026 capacity to increase 14%–15% and projects a 17%–19% operating margin, citing strong bookings, nearly 90% July load factors and anticipated second-half RASM growth of about 10%. Expansion and shareholder returns continue: The airline ended the quarter with 131 aircraft, plans new Venezuela service and additional hub connectivity, and is rolling out Starlink across its fleet. The board approved a $1.71 quarterly dividend, while $45 million of share repurchases has been completed year to date. Copa Holdings May Be the Airline Stock Built to Break Out Copa (NYSE:CPA) reported second-quarter operating profit of $91.7 million and an operating margin of 8.7%, as sharply higher fuel costs weighed on results despite continued demand strength and a 16.5% increase in capacity. Net profit totaled $68.2 million, or $1.67 per share, while net margin was 6.4%, according to CFO Peter Donkersloot. The company said its results reflected an 85% year-over-year increase in average all-in jet fuel prices, which rose to $4.28 per gallon from $2.32 per gallon in the second quarter of 2025. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 5 High-Yield Stocks With Analyst Support and Room to Run “Our second quarter results demonstrate the resilience of our business model in a significantly higher fuel price environment,” Executive Chairman and CEO Pedro Heilbron said. He added that the company continues to expect high load factors and solid financial performance for the full year as booking trends remain strong. Operating revenue rose 25.7% from a year earlier to $1.1 billion. Passenger yields increased 8.7%, while revenue per available seat mile, or RASM, rose 7.9% to $0.116. Load factor was 86.7%, compared with 87.3% a year earlier. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High MarketBeat Week in Review – 05/18 - 05/22 Executive Vice President Robert Carey said the FIFA World Cup temporarily affected travel patterns during June. June load factor declined 2.3 percentage points year over year, creating modest pressure on unit revenue. Copa estimated that the event reduced second-quarter RASM by about $0.001. Fuel costs were the principal factor behind the decline in profitability from the prior-year period. Operating margin was down from 21.7% in the second quarter of 2025. Donkersloot said roughly 40% of second-quarter bookings had already been sold before fuel prices increased, limiting the company’s ability to immediately pass the higher costs through to fares. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Still, stronger demand and higher yields enabled Copa to recover about 40% of the year-over-year increase in fuel expense during the quarter, according to the company. Excluding fuel, cost per available seat mile remained flat at $0.057. Including fuel, unit cost increased 26% to $0.106. Copa raised its full-year capacity outlook and now expects available seat miles to grow between 14% and 15% in 2026. The company projects a full-year operating margin of 17% to 19%, assuming a load factor of about 87%, RASM of $0.12, ex-fuel CASM of $0.0570, and an all-in fuel price of $3.60 per gallon. Carey said the company was seeing approximately 10% RASM growth in the second half, with broadly similar year-over-year performance expected in the third and fourth quarters. As of the call, Copa was about 75% booked for the third quarter and about 25% sold for the fourth quarter. July traffic figures supported management’s view of strong underlying demand. Copa reported a nearly 90% load factor during the month, one of its highest ever, while capacity increased 16% year over year. Carey said that load factor was achieved in a higher-yield environment. During the analyst question-and-answer session, Heilbron said demand was healthy across Copa’s network rather than concentrated in a single region. He said Brazil and North America were somewhat stronger, but characterized differences across markets as marginal. Heilbron also said the company believes some of the fare increases associated with elevated fuel prices can be sustained even if fuel costs decline. He noted that average yields in Copa’s region and network had been below 2019 levels before the increase in fuel prices, without accounting for inflation. Copa took delivery of four Boeing 737 MAX 8 aircraft during the quarter, ending the period with a fleet of 131 aircraft. The company expects one additional MAX 8 delivery during the remainder of 2026. Management attributed the higher capacity forecast partly to aircraft deliveries arriving on time or slightly ahead of schedule, faster deployment of those aircraft and increased utilization. The company expects 12 aircraft deliveries in 2027, offset by the planned retirement of two Boeing 737-700 aircraft undergoing 20-year maintenance checks. Copa also plans to launch service to Porlamar, Isla Margarita, Venezuela, in November. The addition will bring the company’s network to 88 destinations in 32 countries across the Americas. Heilbron said Copa expects to announce an 89th destination before the end of August, with service planned to begin in December. Beginning in March 2027, Copa will transition its Panama City hub from six to eight connecting banks. Management said the change is intended to improve connectivity, increase aircraft utilization and make more efficient use of airport infrastructure. Carey said the revised structure should create additional capacity for growth while keeping average connection times broadly unchanged. The company also began operating Starlink-equipped flights in July, becoming the first airline in Latin America to offer the high-speed internet service, according to Copa. The airline expects the fleetwide rollout to be completed in the first half of 2027. Business-class travelers, preferred members at the Gold, Platinum and Presidential levels, and Starlink subscribers will receive complimentary access, while other passengers will pay for the service. Copa ended the quarter with approximately $1.5 billion in cash and investments, equal to 39% of trailing 12-month revenue. Total debt, including lease liabilities, was about $2.7 billion, all related to aircraft financing. The company reported an average debt cost of 3.7% and a net debt-to-EBITDA ratio of 0.9 times. The board ratified a quarterly dividend of $1.71 per share, payable Sept. 15 to shareholders of record as of Aug. 31. Donkersloot also said Copa had executed $45 million of its authorized share repurchase program year to date, with about $60 million remaining under the current authorization. Copa Holdings, SA (NYSE:CPA) is a Panama‐based aviation holding company that provides passenger and cargo air transportation across the Americas and the Caribbean. Through its principal subsidiary, Copa Airlines, the company operates a modern fleet of Boeing 737 aircraft, offering scheduled flights that connect passengers through its Tocumen International Airport hub in Panama City. The company also offers dedicated cargo services under the Copa Cargo brand, leveraging belly hold capacity on its passenger flights to transport freight throughout its network. The roots of Copa Holdings trace back to 1947, when Compañía Panameña de Aviación began operations as the flag carrier of Panama. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Copa Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Operating Profit: $91.7 million, with an operating margin of 8.7%. Operating Revenues: Increased 25.7% year-over-year to $1.1 billion. Net Profit: Totaled $68.2 million, or $1.67 per share, with a net margin of 6.4%. Unit Revenue (RASM): Increased 7.9% to $0.116. Passenger Yields: Increased 8.7% compared to Q2 2025. Load Factor: 86.7%, compared to 87.3% in Q2 2025. Capacity (ASMs): Increased 16.5% year-over-year. Unit Cost (CASM): Including fuel, increased 26% to $0.106; ex-fuel CASM remained flat year-over-year at $0.057. Fuel Costs: Average all-in jet fuel prices increased 85% year-over-year from $2.32 to $4.28 per gallon. Cash and Investments: Approximately $1.5 billion, representing 39% of last 12 months revenue. Total Debt: Approximately $2.7 billion, with a net debt to EBITDA ratio of 0.9x. Dividend: Board ratified a quarterly dividend payment of $1.71 per share. Fleet: Took delivery of four Boeing 737 MAX 8 aircraft, ending the period with a fleet of 131 aircraft. Full-Year 2026 Outlook: Operating margin expected in the range of 17%-19%, with capacity growth of 14%-15%, load factor of 87%, RASM of $0.12, ex-fuel CASM of $0.0570, and an all-in fuel price per gallon of $3.60. Warning! GuruFocus has detected 8 Warning Sign with KOP. Is CPA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Copa Holdings SA (NYSE:CPA) delivered a solid operating profit of $91.7 million and an operating margin of 8.7% despite a significant 85% increase in all-in fuel costs year-over-year. The company reported strong revenue growth, with operating revenues up 25.7% year-over-year to $1.1 billion, driven by an 8.7% increase in passenger yields and a 7.9% rise in unit revenue (RASM). Copa Holdings SA (NYSE:CPA) maintained industry-leading operational reliability, with an on-time performance of 90.6% and a flight completion factor of 99.8% during the quarter. The company is expanding its network and enhancing its product offering, including the addition of Porlamar, Venezuela, and the launch of Starlink onboard internet, becoming the first airline in Latin America to offer this service. Copa Holdings SA (NYSE:CPA) has a strong balance sheet with approximately $1.5 billion in cash and investments, a low net debt-to-EBITDA ratio of 0.9x, and a low average cost of debt of 3.7%, providing significant financial flexibility. The company raised its full-year 2026 capacity growth guidance to 14%-15% and expects an operating margin of 17%-19%, reflecting strong demand and confidence in its growth strategy. Copa Holdings SA (NYSE:CPA) is transitioning its hub from six to eight connecting banks in March 2027, which will improve connectivity, increase aircraft utilization, and optimize airport infrastructure use. The company continues to return value to shareholders, with the board ratifying a quarterly dividend of $1.71 per share. Copa Holdings SA (NYSE:CPA) experienced a significant increase in fuel costs, with all-in jet fuel prices rising 85% year-over-year to $4.28 per gallon, which pressured operating margins. The company's operating margin declined sharply to 8.7% in Q2 2026 from 21.7% in Q2 2025, due to the higher fuel price environment. The World Cup temporarily affected travel patterns in June, reducing load factors by 2.3 percentage points year-over-year and impacting unit revenues by approximately $0.001. Copa Holdings SA (NYSE:CPA) had approximately 40% of its Q2 bookings sold before the fuel price increase, limiting its ability to fully recover higher fuel costs during the quarter. The company faces ongoing uncertainty and volatility in fuel prices, which could impact future financial performance and margins. Copa Holdings SA (NYSE:CPA) is experiencing aircraft delivery schedule changes, with some deliveries shifting by a few weeks, which could affect capacity planning and capital expenditure timing. The company's unit cost including fuel (CASM) increased 26% year-over-year to $0.106, reflecting the significant impact of higher fuel prices on overall costs. Q: How much of the third and fourth quarters were booked before the fare increases, and what are current booking levels?A: Pedro Heilbron (CEO) noted that about 20% of Q3 was booked pre-increase, with almost nothing for Q4. Robert Carey (EVP) added that currently, the company is approximately 75% booked for Q3 and 25% sold for Q4, indicating strong forward demand. Q: What is the outlook for unit revenue (RASM) growth in the second half of the year, and are there any significant variations expected between Q3 and Q4?A: Robert Carey (EVP) stated that the company is seeing a +10% RASM increase in H2, which is fairly consistent across both Q3 and Q4. He noted there are no notable variations between the two quarters, supporting the company's full-year guidance. Q: What drove the upward revision in capacity guidance for 2026, and what are the details behind the Starlink rollout?A: Pedro Heilbron (CEO) explained that the capacity increase is due to Boeing delivering aircraft on time or even ahead of schedule, combined with increased aircraft utilization. Regarding Starlink, Robert Carey (EVP) stated it will be complimentary for business class, elite members, and Starlink subscribers, while other passengers will pay. Peter Donkersloot (CFO) added that the CapEx was prepaid and is already in the books. Q: How is the competitive environment reacting to the high fuel prices, and how sustainable are the recent yield increases?A: Pedro Heilbron (CEO) observed a lot of pricing discipline in the market, triggered by high fuel costs. He noted that pre-crisis yields were below 2019 levels, and even if prices adjust as fuel comes down, he believes a positive impact will remain. He expressed confidence that the price increases are sustainable and will be a net positive over an already strong base. Q: What were the main factors that caused Q2 operating margin to land at the lower end of the guided range?A: Pedro Heilbron (CEO) explained that the wide guidance range was due to uncertainty around the war, fuel prices, and demand response. The results came in at the lower end primarily due to RASM, as unit costs were on target. Robert Carey (EVP) added that the World Cup impacted June load factors more than expected, which was the most notable factor pressuring RASM. Q: What is the breakdown of the 2026 capacity growth, and can we expect any new destination announcements?A: Pedro Heilbron (CEO) stated that about 50% of the growth is the full-year effect from routes implemented last year, 10% will be new destinations, and the rest is additional frequencies. He confirmed that at least one more destination will be announced before the end of August, which would be the 89th destination, to be implemented in December. Q: How will the transition from six to eight connecting banks affect the hub's infrastructure and future fleet decisions?A: Robert Carey (EVP) said the move frees up capacity and eases the need for additional infrastructure, with airport investment plans over the next five years providing runway for growth. He noted that connectivity options will increase, but the average connection time will stay broadly the same. He also stated that this transition does not change the calculus on fleet type decisions, such as the MAX 10. Q: What is the status of the share buyback program, and how will aircraft delivery schedule changes affect CapEx?A: Peter Donkersloot (CFO) clarified that $45 million has been executed year-to-date, with around $60 million left on the current program. On CapEx, he guided to $700-$750 million for the year, about $50 million less than initially guided, due to one delivery moving from December to January. He noted that delivery schedule movements are minor and do not materially affect ASM counts. Q: Where is the strong demand coming from across the network, and how resilient are the yield increases?A: Pedro Heilbron (CEO) stated that demand is strong throughout the entire network, with no single region significantly outperforming or underperforming. Robert Carey (EVP) added that Brazil and North America are slightly stronger, but overall, all markets are showing positive demand signs. The executives expressed confidence in the sustainability of the yield increases, noting that pre-crisis yields were below 2019 levels. Q: What is the expected trajectory for net interest expense in the back half of the year?A: Peter Donkersloot (CFO) stated that net interest expense is expected to remain pretty stable across the year. While there will be slightly more financing costs as new aircraft are received, this is already embedded in the fleet plan and is straightforward to calculate. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Copa Holdings, S.A. (CPA)reported second-quarter 2026 earnings of $1.67 per share, down 53.9% year over year. The figure missed the Zacks Consensus Estimate of $1.88 by 11.2%, mainly due to a sharp increase in jet fuel costs. Quarterly revenues rose 25.7% year over year to $1.06 billion but missed the consensus mark of $1.07 billion by 0.6%. Passenger yields increased 8.7%, while revenue per available seat mile rose 7.9% year over year. Copa Holdings, S.A. price-consensus-eps-surprise-chart | Copa Holdings, S.A. Quote Passenger revenues, which accounted for 94.6% of the top line, increased 25.8% year over year to $1.00 billion. The upside was owing to a 15.7% increase in revenue passenger miles and an 8.7% increase in passenger yield. The improvement reflected higher traffic and stronger pricing across the network. Cargo and mail revenues climbed 20.8% year over year to $34.18 million, owing to higher cargo volumes, which includes the full-year effect of a second freighter. Other operating revenues rose 32.4% year over year to $22.54 million, mainly owing to an increase in ConnectMiles revenues from non-air partners. Revenue passenger miles, a measure of traffic, increased 15.7% year over year. Available seat miles, which measure capacity, rose at a faster rate of 16.5%. As capacity growth outpaced traffic, load factor declined 0.6 percentage points from the year-ago reported quarter to 86.7%. Copa Holdings carried 4.14 million revenue passengers, up 14.9% year over year, while onboard passengers increased 15.1% year over year to 6.18 million. Passenger revenue per available seat mile rose 8% year over year to 11.0 cents. Revenue per available seat mile (RASM) rose 7.9% year over year to 11.6 cents. Operating expenses surged 46.8% year over year to $967.68 million. Fuel expense more than doubled to $449.55 million as the average price per gallon jumped 84.8% year over year to $4.28 and consumption increased 14.2%. The cost escalation reduced operating profit by 50% year over year to $91.66 million. Operating margin contracted 13.1 percentage points to 8.7%, while net margin fell 11.2 percentage points to 6.4%. Cost per available seat mile, or CASM, increased 26% year over year to 10.6 cents because of the fuel-price spike. Excluding fuel, CASM edged down 0.1% year over year to 5.7 cents, reflecting disciplined control over the airline’s underlying cost base. Wages, salaries, benefits and other employee expenses rose 7.4% year over year to $131.36 million. Depreciation and amortization increased 21.6% year over year, flight operations costs climbed 30.7%, and airport facilities and handling charges rose 19.6%. Copa Holdings ended June with $1.54 billion in cash, short-term investments and long-term investments. The total represented 39% of revenues over the trailing 12 months, while net debt to EBITDA stood at 0.9 times. Net cash flow from operating activities totaled $617.90 million for the first six months of 2026. Investing activities used $799.51 million, including advance payments on aircraft purchase contracts and property and equipment spending. The company took delivery of four Boeing 737 MAX 8 aircraft during the quarter and ended June with a fleet of 131 aircraft. Copa Holdings posted an on-time performance of 90.6% and a flight completion factor of 99.8%. The company operated its first aircraft equipped with Starlink Internet on July 4, 2026, and expects fleetwide installation by the first half of 2027. The airline also plans to shift from six to eight connecting banks at its Panama City hub beginning in March 2027. Copa Holdings’ board ratified a dividend payment of $1.71 per share for the third time in 2026.The dividend is scheduled for payment on Sept. 15, 2026, to shareholders of record as of Aug. 31. The payment follows $140.66 million in dividends paid during the first half of 2026. CPA also used $45.00 million for share repurchases over the same period. Demand across the network continues to be strong, despite fuel prices being high and volatile as compared to prior-year levels. Based on demand trends and current fuel cost projections, Copa Holdings is updating its full-year 2026 outlook and now expects an operating margin in the range of 17% to 19% (prior view: 8% to 12%) and a capacity increase in ASMs within the range of 14% to 15% (prior view: 16%).Top of Form For 2026, CPA’s management expects unit revenues (RASM) of 12 cents and a fuel price of $3.60 per gallon. The load factor for the current year is expected to be 87%. Non-fuel unit costs are anticipated to be 5.7 cents. Copa Holdings expects to end 2026 with 132 (prior view: 133) aircraft and 2027 with 142 (prior view: 144) aircraft. Currently, Copa Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delta Air Lines (DAL) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability. Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand. United Airlines Holdings, Inc. (UAL)reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%. Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Copa Holdings (CPA) came out with quarterly earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.88 per share. This compares to earnings of $3.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.17%. A quarter ago, it was expected that this holding company for Panama's national airline would post earnings of $4.43 per share when it actually produced earnings of $5.16, delivering a surprise of +16.48%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Copa Holdings, which belongs to the Zacks Transportation - Airline industry, posted revenues of $1.06 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $842.6 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Copa Holdings shares have added about 21.6% since the beginning of the year versus the S&P 500's gain of 13%. While Copa Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Copa Holdings was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.52 on $1.13 billion in revenues for the coming quarter and $16.60 on $4.39 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Air Canada (ACDVF), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -79.1%. The consensus EPS estimate for the quarter has been revised 48.2% higher over the last 30 days to the current level. Air Canada's revenues are expected to be $4.39 billion, up 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered an 8.7% operating margin despite an 85% year-over-year increase in all-in fuel costs, demonstrating business model resilience. Achieved 25.7% revenue growth driven by strong passenger demand across the entire network, with no single region underperforming. Recovered approximately 40% of the fuel cost increase through higher yields and robust demand, despite 40% of bookings being sold prior to the price spike. Maintained industry-leading operational reliability with a 90.6% on-time performance and a 99.8% flight completion factor. Strategic capacity growth of 16.5% in ASMs was enabled by the stabilization of Boeing delivery schedules and improved aircraft utilization. Consolidated the 'Hub of the Americas' advantage by transitioning from 6 to 8 connecting banks to optimize infrastructure and increase travel options. Maintained a structurally low unit cost with ex-fuel CASM remaining flat at 5.7 cents, reflecting disciplined cost management. Updated full-year 2026 operating margin guidance to 17-19%, assuming a load factor of 87% and an all-in fuel price of $3.60 per gallon. Expects strong demand to continue through H2 2026, with current bookings for Q3 already at approximately 75%. Planned transition to an 8-bank connecting structure in March 2027 is expected to drive higher aircraft utilization and network connectivity. Anticipates completing the fleet-wide rollout of high-speed Starlink Wi-Fi by the first half of 2027 to enhance the passenger value proposition. Maintains fleet flexibility for 2028 with options to retire older 700-series aircraft or adjust delivery paces based on market conditions. The World Cup in June temporarily disrupted travel patterns, reducing second-quarter RASM by approximately 0.1 cents. Announced the addition of Porlamar, Venezuela, as the 88th destination, with an 89th destination expected to be announced by late August. Capital expenditures for Starlink were prepaid and are already reflected in the balance sheet, with depreciation beginning upon service installation. Board ratified a third quarterly dividend of $1.71 per share, supported by a strong cash position representing 39% of last 12 months' revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management reported Q3 is 75% booked and Q4 is 25% booked, with RASM expected to be up approximately 10% in the second half of the year. Management believes yields will remain resilient even if fuel prices decrease, noting that pre-crisis yields were historically low relative to 2019 levels. Copa expects 12 aircraft deliveries in 2027, with a net increase of 10 after retiring older 700-series aircraft to avoid expensive 20-year checks. Significant flexibility exists for 2028 via 11 potential aircraft exits (lease expirations and retirements) to buffer against demand shifts. The move from 6 to 8 banks is designed to alleviate infrastructure pressure as the hub nears capacity limits while improving passenger connection options. The transition is expected to be a 'RASM improver' through better scheduling and a 'CASM detractor' by increasing asset utilization. Connectivity will be complimentary for business class and top-tier loyalty members, while other passengers will pay for access. Implementation CapEx was already accounted for in previous guidance and is currently sitting in PP&E on the balance sheet.

Copa Holdings (CPA) reported $1.06 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 25.7%. EPS of $1.67 for the same period compares to $3.61 a year ago. The reported revenue represents a surprise of -0.58% over the Zacks Consensus Estimate of $1.07 billion. With the consensus EPS estimate being $1.88, the EPS surprise was -11.17%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Copa Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Load Factor: 86.7% versus the five-analyst average estimate of 87.2%. PRASM (Passenger revenue per ASM): 11 cents versus the four-analyst average estimate of 11.22 cents. Yield: 12.6 cents compared to the 12.72 cents average estimate based on four analysts. Avg. Price Per Fuel Gallon: $4.28 compared to the $4.22 average estimate based on four analysts. ASMs (Available seat miles): 9.15 billion versus the four-analyst average estimate of 9.13 billion. CASM Excl. Fuel: 5.7 cents versus the four-analyst average estimate of 5.73 cents. CASM: 10.6 cents versus the four-analyst average estimate of 10.59 cents. RPMs (Revenue passengers miles): 7.94 billion compared to the 7.96 billion average estimate based on four analysts. RASM: 11.6 cents versus 12.44 cents estimated by four analysts on average. Fuel Gallons Consumed: 105.00 Mgal compared to the 105.23 Mgal average estimate based on three analysts. Total Number of Aircraft: 131 compared to the 130 average estimate based on two analysts. Operating Revenues- Passenger revenue: $1 billion versus the five-analyst average estimate of $1.02 billion. The reported number represents a year-over-year change of +25.8%. View all Key Company Metrics for Copa Holdings here>>> Shares of Copa Holdings have returned -1.8% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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 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). 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: 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 [email protected] 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 SubsidiariesNon-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: