Copa Q2 Earnings Call Highlights

Copa Holdings 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.

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.

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. 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 vie...