Copa Holdings posted another quarter of strong profitability and operational performance in the first quarter of 2026, demonstrating resilience against rising fuel prices and continued geopolitical uncertainty affecting the global airline industry.

The Panama-based airline group reported record net profit of $212 million, up 20.5% year-over-year, while operating margin improved to 24.6%, maintaining Copa’s position among the most profitable airlines globally. Revenue trends also remained healthy as passenger demand across Latin America continued to strengthen, supported by favorable currency movements and resilient leisure and business travel demand.

During the quarter, Copa increased capacity by 14% year-over-year while passenger traffic rose 15%, pushing load factor to 87.2%. Passenger yields improved 1.6%, and unit revenue (RASM) climbed 2.7% to $0.118. At the same time, the airline continued to manage costs tightly, with ex-fuel unit costs declining 1% despite overall cost pressure from fuel.

Management emphasized that the sharp increase in jet fuel prices became more pronounced toward the end of March, creating an estimated $20 million year-over-year impact during the quarter. Average jet fuel prices rose 7.5% from $2.54 to $2.73 per gallon, although the company warned that second-quarter fuel inflation would accelerate substantially, with projected year-over-year increases of 80% to 90%.

Even with that pressure, Copa said strong regional demand and industry-wide fare increases are helping offset higher fuel costs. CEO Pedro Heilbron noted that all regions in the airline’s network are currently performing well, describing the demand environment as unusually broad-based across Latin America.

The carrier expects second-quarter operating margins between 8% and 12%, reflecting both seasonal weakness and the sharp spike in fuel prices. However, management remains optimistic that higher fares and strong booking trends will allow the company to recover a substantial portion of fuel-related costs later in the year.

Copa also continued expanding its network and fleet. The airline resumed service to Valencia and Barquisimeto in Venezuela and plans to restart flights to Barcelona, Venezuela, in June. Combined with existing service to Caracas and Maracaibo, Copa will again serve five Venezuelan cities from its Panama hub. The airline now operates across 87 destinations in 32 countries.

Fleet growth also remains central to Copa’s long-term strategy. The airline took delivery of two Boeing 737 MAX 8 aircraft during the quarter and two additional aircraft in the second quarter. In April, Copa announced a major new order for 40 Boeing 737 MAX aircraft plus 20 options for delivery between 2030 and 2034, reinforcing its long-term expansion plans.

Executives stressed that the airline retains considerable flexibility in managing future growth through delivery options, lease expirations, and a large pool of unencumbered aircraft and spare engines. Copa ended the quarter with approximately $1.5 billion in cash and investments, equal to roughly 40% of trailing 12-month revenues, while maintaining a conservative adjusted net debt-to-EBITDA ratio of 0.7×.

Operational reliability remained another standout area. Copa achieved an on-time performance rate of 91.6% and a flight completion factor of 99.7%, among the best results in the industry.

Management also highlighted favorable macroeconomic conditions in Latin America, particularly the strengthening of several regional currencies against the U.S. dollar. Since Copa prices tickets primarily in dollars while generating substantial demand from South American markets, stronger local currencies have boosted purchasing power and supported travel demand.

While many airlines globally are beginning to trim capacity in response to surging fuel prices, Copa said it has not yet seen significant pullbacks among competitors in Latin America, aside from the ongoing effects of Spirit Airlines’ market exit. The company is, however, selectively reallocating capacity toward higher-yielding and more profitable routes as fuel costs rise.

Executives also expressed confidence in fuel supply availability despite global concerns tied to Middle East tensions and disruptions around the Strait of Hormuz. Copa sources most of its fuel from suppliers in the Americas, including the United States, Mexico, Colombia, and Venezuela, reducing direct exposure to supply chain disruptions in the Gulf region.

Looking ahead, Copa reiterated full-year capacity growth guidance of 11% to 13% and maintained expectations for load factors near 87% and stable ex-fuel unit costs. Management said the company’s low-cost structure, strong balance sheet, geographic position, and operational reliability leave it well positioned to navigate the current fuel environment while continuing to deliver industry-leading profitability.