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Copa Holdings S.A. (CPA)
NYSE:CPA
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Copa Holdings (CPA) AI Stock Analysis

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CPA

Copa Holdings

(NYSE:CPA)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
$170.00
▲(35.37% Upside)
Action:Reiterated
Date:05/20/26
The score is driven primarily by strong profitability and an attractive valuation (low P/E and high dividend yield). Offsetting these positives are weakened free-cash-flow conversion and near-term earnings risk from sharply higher jet fuel costs reflected in Q2 margin guidance, while technicals remain constructive but not deeply oversold.
Positive Factors
Robust profitability and margins
Sustained high operating and net margins demonstrate durable unit economics versus peers and reflect successful revenue management and cost controls. Strong profitability supports reinvestment, shareholder returns and resilience through industry cycles, improving long-term returns on capital.
Negative Factors
Sharp decline in free cash flow
A large drop in free cash flow reduces financial flexibility for debt paydown, capital spending and shareholder returns. If sustained, weak FCF conversion constrains ability to self-fund fleet deliveries and heightens sensitivity to cost shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust profitability and margins
Sustained high operating and net margins demonstrate durable unit economics versus peers and reflect successful revenue management and cost controls. Strong profitability supports reinvestment, shareholder returns and resilience through industry cycles, improving long-term returns on capital.
Read all positive factors

Copa Holdings Key Performance Indicators (KPIs)

Any
Any
Revenue Passenger Carried
Revenue Passenger Carried
Chart Insights
Data provided by:The Fly

Copa Holdings (CPA) vs. SPDR S&P 500 ETF (SPY)

Copa Holdings Business Overview & Revenue Model

Company Description
Copa Holdings, S.A., through its subsidiaries, provides airline passenger, and cargo and mail transportation services in North America, South America, Central America, and the Caribbean. As of December 31, 2025, it operated through a fleet of 125 ...
How the Company Makes Money
Copa Holdings makes money primarily by selling air transportation and related services through its airline operations. The largest revenue stream is passenger revenue generated from ticket sales across its route network; pricing and revenue are dr...

Copa Holdings Earnings Call Summary

Earnings Call Date:May 13, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial results (record net profit, double-digit capacity/traffic growth, high load factor, improved RASM, and industry-leading operating margin) alongside a robust balance sheet and continued fleet/network expansion. However, the company faces meaningful near-term headwinds from sharply higher and volatile jet fuel prices that raise Q2 margin risk (guidance of 8%–12% vs. Q1 at 24.6%) and only partial short-term pass-through of fuel costs. Management highlighted cost discipline and confidence in recovering a substantial portion of fuel cost by year end, but acknowledged uncertainty tied to fuel curves.
Positive Updates
Record Net Profit and EPS Growth
Reported record net profit of $212 million and EPS of $5.16, representing a 20.5% year-over-year increase in earnings per share; net margin was 20.2%, up 0.5 percentage points versus Q1 2025.
Negative Updates
Higher Jet Fuel Costs Impact
All-in jet fuel prices increased 7.5% year-over-year in the quarter (from $2.54 to $2.73 per gallon), driving CASM including fuel up 1.6% to 8.9¢ and causing an approximately $20 million year-over-year headwind in Q1.
Read all updates
Q1-2026 Updates
Negative
Record Net Profit and EPS Growth
Reported record net profit of $212 million and EPS of $5.16, representing a 20.5% year-over-year increase in earnings per share; net margin was 20.2%, up 0.5 percentage points versus Q1 2025.
Read all positive updates
Company Guidance
Guidance: For Q2 Copa expects an operating margin of 8%–12% with ASM growth of ~16% year‑over‑year; management projects a year‑over‑year increase in all‑in jet fuel of ~80%–90% for the quarter and expects to recover roughly 50% of that impact via higher revenues (about 40% of Q2 was already booked when fuel spiked). For the full year Copa reiterates capacity growth of 11%–13% (ASMs), a load factor of ~87%, unit cost excluding fuel of ~5.7¢, and—assuming current fuel curves and sustained yield improvements—expects to recover a substantial portion of the increased fuel expense, potentially up to 100% by year‑end, with full‑year operating margin and RASM to be reviewed as H2 visibility improves.

Copa Holdings Financial Statement Overview

Summary
Strong profitability and margins (TTM operating margin ~24% and net margin ~19%) and improved leverage support the score, but the sharp drop in TTM free cash flow (~$108M, down ~70.6%) and weak cash conversion versus earnings materially reduce financial flexibility.
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.77B3.62B3.45B3.46B2.97B1.51B
Gross Profit1.33B1.29B1.23B1.27B897.53M419.59M
EBITDA1.30B1.24B1.12B1.08B743.57M370.51M
Net Income707.35M671.65M608.11M514.10M348.05M43.84M
Balance Sheet
Total Assets6.89B6.58B5.74B5.20B4.69B4.25B
Cash, Cash Equivalents and Short-Term Investments1.33B1.34B1.20B915.18M934.75M1.02B
Total Debt2.42B2.56B2.00B1.75B1.68B1.60B
Total Liabilities4.02B3.81B3.37B3.07B3.20B2.95B
Stockholders Equity2.87B2.78B2.37B2.12B1.49B1.30B
Cash Flow
Free Cash Flow108.42M308.05M340.51M214.91M126.31M23.55M
Operating Cash Flow1.28B1.12B996.85M1.04B758.54M507.29M
Investing Cash Flow-1.16B-1.32B-343.14M-543.00M-552.15M-459.13M
Financing Cash Flow91.30M-36.06M-219.65M-394.03M-273.69M88.54M

Copa Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price125.58
Price Trends
50DMA
135.45
Positive
100DMA
128.86
Positive
200DMA
125.58
Positive
Market Momentum
MACD
4.68
Positive
RSI
52.18
Neutral
STOCH
30.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPA, the sentiment is Neutral. The current price of 125.58 is below the 20-day moving average (MA) of 148.55, below the 50-day MA of 135.45, and below the 200-day MA of 125.58, indicating a neutral trend. The MACD of 4.68 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 30.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPA.

Copa Holdings Risk Analysis

Copa Holdings disclosed 50 risk factors in its most recent earnings report. Copa Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Copa Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$6.06B8.7326.01%5.28%9.30%16.70%
70
Outperform
$3.84B9.3616.00%12.26%18.57%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
52
Neutral
$5.30B83.391.85%13.94%-79.71%
51
Neutral
$2.91B-57.61-3.25%3.31%82.72%
50
Neutral
$2.08B-3.05-33.13%-0.52%-138.22%
50
Neutral
$1.65B-4.78-88.57%-0.47%-632.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CPA
Copa Holdings
149.89
41.84
38.72%
ALK
Alaska Air
50.14
-4.04
-7.46%
ALGT
Allegiant Travel Company
114.65
56.06
95.68%
JBLU
JetBlue Airways
5.92
1.36
29.82%
SKYW
SkyWest
100.01
-13.60
-11.97%
ULCC
Frontier Group Holdings
7.70
3.34
76.61%

Copa Holdings Corporate Events

Copa Holdings Sets August Dates for Q2 2026 Earnings Release and Call
Jul 8, 2026
Copa Holdings announced on July 8, 2026, that it will release its second-quarter 2026 financial results after the U.S. market close on August 5, 2026. The earnings release will be posted on the company’s investor relations website, giving sh...
Copa Holdings Reports Double-Digit Traffic Growth and Higher Load Factor in May 2026
Jun 12, 2026
On June 11, 2026, Copa Holdings reported preliminary traffic figures showing robust growth in May 2026 versus May 2025, underscoring continued expansion in its airline operations. The company’s capacity, measured in available seat miles, ros...
Copa Holdings Delivers Strong Q1 2026 Results and Expands Boeing 737 MAX Fleet Plan
May 14, 2026
On May 13, 2026, Copa Holdings reported first‑quarter 2026 results showing net profit of US$212.5 million, or US$5.16 per share, with operating and net margins rising to 24.6% and 20.2% despite higher jet fuel prices. Revenue grew 17% to US$...
Copa Holdings Grows April Traffic 16.7% With Load Factor Holding Steady
May 13, 2026
On May 12, 2026, Copa Holdings reported its preliminary operating metrics for April 2026, showing a 16.7% year-on-year increase in available seat miles to 2.97 billion and an identical 16.7% rise in revenue passenger miles to 2.58 billion. The sys...
Copa Holdings Sets Mid-May Dates for First-Quarter 2026 Earnings Release and Call
Apr 14, 2026
Copa Holdings said on April 14, 2026, that it will release its first-quarter 2026 financial results on May 13, 2026, after the U.S. market close. The airline will follow with an earnings conference call and webcast on May 14, 2026, giving investor...
Copa Holdings Posts Double-Digit Traffic Growth and Higher Load Factor in March 2026
Apr 13, 2026
On April 13, 2026, Copa Holdings reported its preliminary traffic figures for March 2026, showing a solid year-on-year expansion in its airline operations. The company’s performance metrics indicate growing demand across its network in the A...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 20, 2026