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Copa Holdings Reports Second-Quarter Financial Results

1. Copa Holdings reported a net profit of $148.9 million in 2Q25. 2. Earnings per share increased 25.2% year-over-year, reaching $3.61. 3. Operating cost per available seat mile decreased by 4.6%, improving margins. 4. The company paid a $1.61 dividend per share, reflecting strong cash flow. 5. Copa Airlines was named the best airline in Central America for the tenth time.

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Why Very Bullish?

Copa's strong earnings and dividend indicate robust financial health, historically leading to price increases. For example, similar earnings boosts in previous quarters resulted in positive stock price movements.

How important is it?

Copa's notable increase in profit and margins, along with a strong dividend, signals favorable conditions for investors, potentially attracting more buyers.

Why Short Term?

The immediate positive effects of earnings and dividend announcement are expected to reflect in stock prices quickly, consistent with market behavior following strong quarterly performance.

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PANAMA CITY, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Copa Holdings1, S.A. (NYSE: CPA), today announced financial results for the second quarter of 2025 (2Q25), delivering another quarter of solid profitability and operational excellence. Key highlights include: Net profit of US$148.9 million or US$3.61 per share, which represents an earnings per share (EPS) increase of 25.2% compared to 2Q24.Net margin of 17.7% and an operating margin of 21.0%, an increase of 3.0 percentage points and 1.5 percentage points, respectively, compared to 2Q24.Revenue per available seat mile (RASM) of 10.7 cents, down 2.8% compared to 2Q24.Operating cost per available seat mile (CASM) decreased by 4.6% compared to 2Q24 to 8.5 cents, and CASM excluding fuel (Ex-fuel CASM) increased 3.2% year over year to 5.8 cents.The Company ended the quarter with approximately US$1.4 billion in cash, short-term and long-term investments, which represent 39% of the last twelve months’ revenues.The Company closed 2Q25 with an Adjusted Net Debt to EBITDA ratio of 0.6 times.The Company took delivery of three Boeing 737 MAX 8 aircraft, ending the quarter with a consolidated fleet of 115 aircraft – 67 Boeing 737-800, 32 Boeing 737 MAX-9, 9 Boeing 737-700, 6 Boeing 737 MAX-8, and 1 Boeing 737-800 freighter.In June, Copa Airlines was recognized by Skytrax – for the tenth consecutive year – as the “Best Airline in Central America and the Caribbean” and as the “Best Airline Staff in Central America and the Caribbean.”Copa Airlines had an on-time performance for the quarter of 91.5% and a flight completion factor of 99.8%, once again positioning itself among the very best in the industry. Subsequent events On August 6, 2025, the Board of Directors of Copa Holdings ratified its second dividend payment for the year of US$1.61 per share. Dividends will be paid on September 15, 2025, to shareholders of record as of August 29, 2025. Full 2Q25 Earnings Release available for download at: https://copa.gcs-web.com/financial-information/quarterly-results Conference Call and Webcast The Company will hold its financial results conference call tomorrow at 11 am ET (10 am local). Details follow: Date:August 7, 2025Time:11:00 AM US ET (10:00 AM Local Time)Join by phone:Click hereWebcast (listen-only):Click here  About Copa Holdings Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides air service to countries in North, Central, and South America and the Caribbean. For more information, visit: copaair.com Investor Relationsinvestor.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. CPA-G Copa Holdings, S. A. and Subsidiaries Consolidated Operating and Financial Statistics  2Q252Q24% Change1Q25% ChangeYTD25YTD24% ChangeRevenue Passengers Carried (000s)3,600 3,303 9.0%3,512 2.5%7,112 6,575 8.2%Revenue Passengers OnBoard (000s)5,366 4,970 8.0%5,208 3.0%10,574 9,760 8.3%RPMs (millions)6,859 6,446 6.4%6,743 1.7%13,602 12,573 8.2%ASMs (millions)7,856 7,424 5.8%7,801 0.7%15,657 14,545 7.7%Load Factor87.3%86.8%0.5 p.p86.4%0.9 p.p86.9%86.4%0.4 p.pYield (US$ Cents)11.6 12.1 (4.1)%12.7 (8.8)%12.2 13.0 (6.7)%PRASM (US$ Cents)10.1 10.5 (3.6)%11.0 (7.8)%10.6 11.3 (6.2)%RASM (US$ Cents)10.7 11.0 (2.8)%11.5 (6.9)%11.1 11.8 (5.5)%CASM (US$ Cents)8.5 8.9 (4.6)%8.8 (3.5)%8.6 9.2 (6.1)%CASM Excl. Fuel (US$ Cents)5.8 5.6 3.2%5.8 (1.0)%5.8 5.8 (0.6)%Fuel Gallons Consumed (millions)91.9 87.6 4.9%91.0 1.0%182.8 172.0 6.3%Avg. Price Per Fuel Gallon (US$)2.32 2.79 (17.0)%2.54 (8.8)%2.43 2.84 (14.7)%Average Length of Haul (miles)1,905 1,952 (2.4)%1,920 (0.7)%1,912 1,912 —%Average Stage Length (miles)1,231 1,253 (1.8)%1,260 (2.3)%1,245 1,249 (0.4)%Departures38,985 36,313 7.4%37,829 3.1%76,814 71,533 7.4%Block Hours122,526 116,062 5.6%121,611 0.8%244,137 228,226 7.0%Average Aircraft Utilization (hours)11.9 11.9 0.6%12.1 (1.2)%12.0 11.7 2.1%  Copa Holdings, S. A. and Subsidiaries Consolidated statement of profit or loss (In US$ thousands)   Unaudited Unaudited %Unaudited % Unaudited Unaudited%  2Q25 2Q24 Change1Q25 Change YTD25 YTD24ChangeOperating Revenues              Passenger revenue 797,266  781,497  2.0%859,025  (7.2%) 1,656,291  1,640,222 1.0%Cargo and mail revenue 28,307  25,184  12.4%25,694  10.2% 54,001  47,095 14.7%Other operating revenue 17,031  12,722  33.9%14,462  17.8% 31,493  25,553 23.2%Total Operating Revenue 842,604  819,403  2.8%899,181  (6.3%) 1,741,785  1,712,870 1.7%               Operating Expenses              Fuel 214,106  246,011  (13.0%)232,160  (7.8%) 446,266  491,363 (9.2%)Wages, salaries, benefits and other employees' expenses 122,289  114,878  6.5%117,517  4.1% 239,807  229,193 4.6%Passenger servicing 25,190  27,579  (8.7%)25,024  0.7% 50,214  57,263 (12.3%)Airport facilities and handling charges 64,652  62,768  3.0%65,657  (1.5%) 130,309  123,115 5.8%Sales and distribution 49,429  52,210  (5.3%)50,261  (1.7%) 99,691  107,704 (7.4%)Maintenance, materials and repairs 36,158  10,883  232.3%39,434  (8.3%) 75,592  36,510 107.0%Depreciation and amortization 88,440  79,462  11.3%86,284  2.5% 174,724  162,827 7.3%Flight operations 32,766  31,914  2.7%33,749  (2.9%) 66,515  62,944 5.7%Other operating and administrative expenses 32,954  34,190  (3.6%)35,274  (6.6%) 68,227  66,461 2.7%Total Operating Expense 665,984  659,896  0.9%685,360  (2.8%) 1,351,344  1,337,378 1.0%               Operating Profit/(Loss) 176,620  159,507  10.7%213,822  (17.4%) 390,442  375,492 4.0%Operating Margin 21.0% 19.5% 1.5 p.p23.8% -2.8 p.p 22.4% 21.9%0.5 p.p               Non-operating Income (Expense):            Finance cost (23,285) (20,632) 12.9%(23,233) 0.2% (46,518) (39,472)17.9%Finance income 15,377  13,537  13.6%15,792  (2.6%) 31,170  27,284 14.2%Gain (loss) on foreign currency fluctuations 910  (16,097) nm1,370  (33.6%) 2,280  (20,010)nmNet change in fair value of derivatives (1,688) 2,533  nm(2,434) (30.7%) (4,122) 2,525 nmOther non-operating income (expense) 6,228  1,766  252.7%1,428  336.2% 7,656  1,654 362.9%Total Non-Operating Income/(Expense) (2,458) (18,892) (87.0%)(7,077) (65.3%) (9,535) (28,019)(66.0%)               Profit before taxes 174,162  140,615  23.9%206,744  (15.8%) 380,906  347,472 9.6%               Income tax expense (25,253) (20,362) 24.0%(29,978) (15.8%) (55,231) (51,154)8.0%               Net Profit/(Loss) 148,908  120,253  23.8%176,766  (15.8%) 325,675  296,318 9.9%Net Margin 17.7% 14.7% 3.0 p.p19.7% -2.0 p.p 18.7% 17.3%1.4 p.p               Basic Earnings Per Share (EPS) 3.61  2.88  25.3%4.28  (15.7)% 7.89  7.07 11.6%               Shares for calculation of Basic EPS (000s) 41,246  41,715  (1.1)%41,292  (1.1)% 41,268  41,883 (1.5)%  Copa Holdings, S. A. and Subsidiaries Consolidated statement of financial position(In US$ thousands)   June 2025 December 2024ASSETS (Unaudited) (Audited)Cash and cash equivalents 236,171  613,313 Short-term investments 764,137  585,919 Total cash, cash equivalents and short-term investments 1,000,307  1,199,232 Accounts receivable, net 183,401  166,014 Accounts receivable from related parties 2,967  2,976 Expendable parts and supplies, net 141,190  132,341 Prepaid expenses 64,295  42,926 Prepaid income tax 5,788  11,678 Other current assets 26,028  21,711   423,669  377,647 TOTAL CURRENT ASSETS 1,423,976  1,576,879 Long-term investments 368,332  248,936 Long-term accounts receivable 3,000  — Long-term prepaid expenses 3,182  8,237 Property and equipment, net 3,755,645  3,458,261 Right of use assets 308,900  309,302 Intangible, net 98,895  96,754 Net defined benefit assets 1,833  1,058 Deferred tax assets 16,772  20,749 Other Non-Current Assets 20,450  22,113 TOTAL NON-CURRENT ASSETS 4,577,008  4,165,410 TOTAL ASSETS 6,000,984  5,742,289 LIABILITIES    Loans and borrowings 219,892  254,854 Current portion of lease liability 62,062  59,103 Accounts payable 187,375  229,104 Accounts payable to related parties 792  1,624 Air traffic liability 642,594  621,895 Frequent flyer deferred revenue 146,645  132,064 Taxes Payable 62,494  55,505 Accrued expenses payable 42,009  62,673 Income tax payable 9,249  9,801 Other Current Liabilities 1,680  1,272 TOTAL CURRENT LIABILITIES 1,374,795  1,427,895      Loans and borrowings long-term 1,497,592  1,415,953 Lease Liability 271,774  270,594 Deferred tax Liabilities 60,613  37,476 Other long - term liabilities 236,096  217,626 TOTAL NON-CURRENT LIABILITIES 2,066,074  1,941,649 TOTAL LIABILITIES 3,440,868  3,369,544 EQUITY    Class A - 34,228,377 issued and 30,196,170 outstanding 23,287  23,244 Class B - 10,938,125 7,466  7,466 Additional Paid-In Capital 217,789  214,542 Treasury Stock (300,143) (291,438)Retained Earnings 2,301,791  1,826,565 Net profit 325,675  608,114 Other comprehensive loss (15,748) (15,748)TOTAL EQUITY 2,560,116  2,372,745 TOTAL EQUITY LIABILITIES 6,000,984  5,742,289  Copa Holdings, S. A. and Subsidiaries Consolidated statement of cash flowsFor the six months ended(In US$ thousands)   2025   2024  (Unaudited) (Unaudited)Net cash flow from operating activities 484,282   470,777 Investing activities   Net Acquisition of Investments (294,697)  (35,609)Net cash flow related to advance payments on aircraft purchase contracts (60,204)  71,516 Acquisition of property and equipment (390,502)  (279,052)Proceeds from sale of property and equipment 26,448   — Acquisition of intangible assets (14,342)  (15,551)Cash flow used in investing activities (733,297)  (258,696)Financing activities   Proceeds from new borrowings 165,000   108,000 Payments on loans and borrowings (122,890)  (108,029)Payment of lease liability (28,504)  (32,633)Repurchase of treasury shares (8,706)  (50,402)Dividends paid (133,027)  (134,756)Cash flow used in financing activities (128,127)  (217,820)Net (decrease) increase in cash and cash equivalents (377,142)  (5,739)Cash and cash equivalents as of January 1 613,313   206,375 Cash and cash equivalents as of June 30$236,171  $200,636     Short-term investments 764,137   748,239 Long-term investments 368,332   258,379 Total cash and cash equivalents and investments as of June 30$1,368,640  $1,207,254      Copa Holdings, S. A. and Subsidiaries Non-IFRS Financial Measures Reconciliation This press release includes the following non-IFRS financial measures: Operating CASM Excluding Fuel. This supplemental information is presented because we believe it is a useful indicator of our operating performance and is useful in comparing our performance with other companies in the airline industry. These measures should not be considered in isolation and should be considered together with comparable IFRS measures, in particular operating profit and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures: Reconciliation of Operating Costs per ASM         Excluding Fuel (CASM Excl. Fuel)2Q25 2Q24 1Q25 YTD25 YTD24          Operating Costs per ASM as Reported (in US$ Cents)8.5 8.9 8.8 8.6 9.2Aircraft Fuel Cost per ASM (in US$ Cents)2.7 3.3 3.0 2.9 3.4Operating Costs per ASM excluding fuel (in US$ Cents)5.8 5.6 5.8 5.8 5.8  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 2024 (2Q24).

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