Copa Holdings (CPA) Q2 2026 earnings summary

Executive summary

• Operating profit was $91.7 million with an 8.7% margin in Q2 2026, reflecting resilience amid an 85% increase in fuel costs year-over-year and a 13.1 percentage point margin decline.

• Net profit reached $68.2 million, or $1.67 per share, a 53.9% year-over-year decrease, with a net margin of 6.4%.

• Operating revenues rose 25.7% year-over-year to $1.1 billion, driven by 16.5% capacity growth and higher yields.

• Maintained strong liquidity with $1.5 billion in cash and investments (39% of LTM revenue).

• Industry-leading operational reliability with 90.6% on-time performance and 99.8% flight completion.

Financial highlights

• Passenger revenue increased 25.8% year-over-year to $1.0 billion; cargo and mail revenue up 20.8%.

• Operating expenses rose 46.8% year-over-year to $967.7 million, mainly due to a 110% increase in fuel costs.

• Ex-fuel CASM remained flat at $0.057 (5.7 cents); total CASM rose 26% to $0.106 due to higher fuel prices.

• RASM increased 7.9% to $0.116 (11.6 cents); yield up 8.7% to $0.126 (12.6 cents).

• Net margin declined to 6.4% from 17.7% year-over-year.

Outlook and guidance

• Updated 2026 operating margin guidance to 17%-19% with capacity growth of 14%-15%.

• Assumes load factor of 87%, RASM of $0.12 (12.0 cents), ex-fuel CASM of $0.0570 (5.7 cents), and all-in fuel price of $3.60 per gallon.

• Strong demand and booking trends expected to continue, with July load factor near 90% on 16% higher capacity.

• Q3 is about 75% booked, Q4 about 25% booked as of the call.