CPA · Copa Holdings, S.A.

Copa Holdings delivered robust Q1 2026 results with net profit rising 20.2% to US$212.5 million and EPS up 20.5% to US$5.16, fueled by 17.0% revenue growth to US$1.05 billion amid 14.0% capacity expansion and a 0.8 pp load factor improvement to 87.2%. Passenger revenue, comprising the bulk at US$1,004.2 million, benefited from 15.0% RPM growth and 1.6% higher yields, reflecting resilient regional demand. Operating margin expanded 0.8 pp to 24.6%, supported by a 1.0% decline in ex-fuel CASM to 5.8 cents despite 1.6% CASM rise to 8.9 cents from 7.5% higher jet fuel at US$2.73/gallon, which added a US$20 million YoY headwind. Management highlighted operational excellence with 91.6% on-time performance and 99.7% completion, alongside cost discipline. Balance sheet strength persists with US$1.5 billion liquidity (40% of LTM revenue) and 0.7x net debt/EBITDA. Capital returns advanced via US$45 million buyback (1% shares) and a ratified US$1.71/share dividend. Fleet grew to 127 aircraft, with two more deliveries in Q2 reaching 129, and a new 40-firm Boeing 737 MAX order (plus 20 options) for 2030-2034 supports long-term growth. Outlook remains positive: Q2 operating margin 8-12% despite 80-90% fuel price surge (50% revenue recovery), and full-year ASM growth 11-13%, 87% load factor, 5.7 cents ex-fuel CASM, with full fuel recovery expected by year-end.