A.Operating Results You should read the following discussion in conjunction with our consolidated financial statements and the related notes and the other financial information included elsewhere in this annual report. Discussions of year-over-year comparisons between 2024 and 2023 that are not included in this Form 20-F can be found in Part I, Item 5, Operating and Financial Review and Prospects” of our Form 20-F for the fiscal year ended December 31, 2024. We are a leading Latin American provider of airline passenger and cargo service through our two principal operating subsidiaries, Copa Airlines and AeroRepública. Copa Airlines operates from its strategically located position in the Republic of Panama, and AeroRepública operates a low-cost business model within Colombia and various cities in the region. Copa currently offers approximately 436 daily scheduled flights among 84 destinations in 32 countries in North, Central and South America and the Caribbean from its Panama City hub. Copa provides passengers with access to flights to more than 200 other destinations through code-share arrangements with our Star Alliance partners and other carriers including Air France, KLM, Iberia, Air Europa, Emirates, Gol, Azul and Volaris. Through its Panama City hub, Copa Airlines is able to consolidate passenger traffic from multiple points to serve each destination effectively. As of December 31, 2025, Copa Airlines and Wingo operate a modern fleet of 125 Boeing 737 aircraft. To meet growing capacity requirements, we have firm orders, including purchase and lease commitments. As of December 31, 2025, the Company has firm orders to purchase 85 Boeing 737 MAX aircraft to be delivered between 2026 and 2034. Factors Affecting Our Results of Operations Fuel In 2025, the average price of WTI crude oil, a benchmark widely used for crude oil prices that is measured in barrels and quoted in U.S. dollars, decreased by 14.6% from $76.6 per barrel to $65.4 per barrel. In 2025, we did not hedge any of our fuel needs. For 2026 although we have not hedged any part of our anticipated fuel needs, we continue to evaluate various hedging strategies and may enter into hedging agreements in the future, as any substantial and prolonged increase in the price of jet fuel will likely materially and negatively affect our business, financial condition and results of operation. In the past, we have managed to offset some of the increases in fuel prices with higher load factors, fuel surcharges and fare increases. In addition, our relatively young, winglet-equipped fleet and robust fuel conservation measures also help us mitigate the impact of higher fuel prices. Additionally, global geopolitical events, such as the conflict between Russia and Ukraine beginning in February 2022, the ongoing political instability in Venezuela, or the conflict in the Middle-East, have contributed to fluctuations in fuel costs, which may negatively impact our business operations. Due to the evolving nature of such events, we are unable to predict the extent of the impact on our business. Regional Economic Environment Our historical financial results have been, and we expect them to continue to be, materially affected by the general level of economic activity and growth of per capita disposable income in North, South and Central America and the Caribbean, which have a material impact on discretionary and leisure travel (drivers of our passenger revenue) and the volume of trade between countries in the region (the principal driver of our cargo revenue). In Colombia, real GDP, at constant prices, increased 2.5% in 2025. Average inflation of consumer prices in Colombia was approximately 4.9% in 2025, according to the IMF. According to data from The Preliminary Overview of the Economies of Latin America and the Caribbean, an annual United Nations publication prepared by the Economic Development Division, the economy of Latin America (including the Caribbean) is estimated to increase by 2.3% in 2026. Preliminary figures, according to the IMF, for 2025 43 Table of Contents indicate that the Panamanian economy increased by 4.0% (versus 2.7% increase in 2024). Headline deflation in Panama was 0.1% compared to 0.8% inflation in 2024. Revenues We derive our revenues primarily from passenger transportation, which represented 94.8% of our revenues for the year ended December 31, 2025. In addition, 3.2% of our total revenues are derived from cargo and 2.0% from other activities. We recognize passenger revenue from tickets when transportation is provided rather than when a ticket is sold. Passenger revenues reflect the capacity of our aircraft on the routes we fly, load factor and yield. Our capacity is measured in terms of available seat miles, or “ASMs”, which represents the number of seats available on our aircraft multiplied by the number of miles the seats are flown. Our usage is measured in terms of RPMs, which is the number of revenue passengers multiplied by the miles these passengers fly. Load factor, or the percentage of our capacity that is actually used by paying customers, is calculated by dividing RPMs by ASMs. Yield is the average amount that one passenger pays to fly one mile. We use a combination of approaches, taking into account yields, flight load factors and effects on load factors of connecting traffic, depending on the characteristics of the markets served, to arrive at a strategy for achieving the best possible revenue per available seat mile, balancing the average fare charged against the corresponding effect on our load factors. We recognize cargo revenue when transportation is provided. Historically our other revenue consists primarily of commissions earned on tickets sold for flights on other airlines, special charges, non-air frequent flyer program revenue and services provided to other airlines. Overall demand for our passenger and cargo services is highly dependent on the regional economic environment in which we operate, including the GDP of the countries we serve and the disposable income of the residents of those countries. Approximately 25% of our passengers travel at least in part for business reasons, and the growth of intraregional trade greatly affects that portion of our business. The remaining 75% of our passengers are tourists or travelers visiting friends and family. The following table sets forth our capacity, load factor and yields for the periods indicated. 2025 2024 2023 Capacity (in available seat miles, in millions) 32,408 30,077 27,700 Load factor 87.0 % 86.3 % 86.8 % Yield (in cents) 12.16 12.68 13.79 Seasonality Generally, revenues and profitability of our flights peak during the northern hemisphere’s summer season in July and August and again during the December and January holiday season. Given our high proportion of fixed costs, this seasonality is likely to cause our results of operations to vary from quarter to quarter. Operating Expenses The main components of our operating expenses are aircraft fuel, wages, salaries, benefits and other employees’ expenses, sales and distribution and airport facilities and handling charges. A common measure of per unit costs in the airline industry is cost per available seat mile, or “CASM”, which is generally defined as operating expenses divided by ASMs. Fuel. The price we pay for aircraft fuel varies significantly from country to country primarily due to local taxes. While we purchase aircraft fuel at most of the airports to which we fly, we attempt to negotiate fueling contracts with companies that have a multinational presence in order to benefit from volume purchases. During 2025, as a result of the location of its hub, Copa purchased 54% of its aircraft fuel in Panama. Copa has 23 suppliers of aircraft fuel across its network. In some cases, we tanker fuel in order to minimize our cost, by fueling in airports where fuel prices are lowest. Our aircraft fuel expenses are variable and fluctuate based on global oil prices. 44 Table of Contents Aircraft Fuel Data 2025 2024 2023 Average price per gallon of jet fuel into plane (excluding hedge) (in U.S. dollars) $ 2.45 $ 2.66 $ 3.02 Gallons consumed (in millions) 377.5 354.5 327.6 Available seat miles (in millions) 32,408 30,077 27,700 Gallons per ASM (in hundredths) 1.16 1.18 1.18 Wages, salaries and other employees’ expenses. Salary and benefit expenses have historically increased at the rate of inflation and by the growth in the number of our employees. In some cases, we have adjusted the salaries of our employees to correspond to changes in the cost of living in the countries where these employees work. We do not increase salaries based on seniority. Our profit-sharing variable compensation program reflects our belief that our employees will remain dedicated to our success if they have a stake in that success. We typically make accruals each month for the expected annual bonuses, which are reconciled to actual payments at their dispersal within the first half of the following year. The bonus payments are approved by our compensation committee. Passenger servicing. Our passenger servicing expenses consist of catering, in-flight entertainment and liability insurance among others. These expenses are generally directly related to the number of passengers we carry or the number of flights we operate. Airport facilities and handling charges. Our airport facility and handling charges consist of take-off/landing charges, aircraft parking charges, baggage handling, and airport security charges. These charges are mainly driven by the number of flights we operate. Sales and distribution. Our sales and distribution expenses are driven mainly by passenger revenues, indirect channel penetration performance, agreed commission rates, and from payments to global distribution systems “GDS”, such as Amadeus and Sabre. Our commission expenses consist primarily of payments for ticket sales made by travel agents and commissions paid to credit card companies, depending on the country. During the last few years, we have reduced our commission expense per available seat mile primarily by increasing the proportion of our sales made through direct channels. We expect this trend to continue as more of our customers become accustomed to purchasing through our website at www.copaair.com, mobile app, and call centers. While increasing direct sales may increase the commissions we pay to credit card companies, we expect that the savings from the corresponding reduction in travel agency commissions will more than offset this increase. In recent years, base commissions paid to travel agents have decreased significantly. At the same time, we have encouraged travel agencies to move from standard base commissions to incentive compensation based on sales volume and fare types. In addition, the GDS or reservation systems tend to raise their rates periodically, but we expect that if we are successful in encouraging our customers to purchase tickets through our direct sales channels, including the direct NDC channel for travel agencies, these costs will continue to decrease as a percentage of our operating costs. A portion of our reservations and sales expenses is also comprised of our licensing payments for the SHARES reservation and check-in management software we use, which is not expected to change significantly from period to period; as well as other suppliers. Maintenance, materials and repairs. Our maintenance, materials and repairs expenses consist of aircraft repair expenses and charges related to the line maintenance of our aircraft, including maintenance materials, and aircraft return costs. As the age of our fleet increases and our warranties expire, our maintenance expenses will increase. We conduct line and heavy maintenance internally and outsource some of the heavy maintenance to independent third-party contractors. Depreciation, amortization and impairment. These expenses correspond primarily to the depreciation of aircraft owned by the company, engines, maintenance components, other related flight equipment and the depreciation of the right of use on leased assets. Flight operations. These expenses are related to the charges that the countries which we overfly levy on our aircraft as overflight charges. These fees are generally related to the number of flights we operate. Other operating and administrative expenses. Other expenses include cargo and courier expenses, overhead expenditures and miscellaneous expenses. Also includes the expense for contract services, variable lease payments, short term and low value leases. 45 Table of Contents Taxes We pay taxes in the Republic of Panama and in other countries in which we operate, based on regulations in effect in each respective country. Our revenues come principally from foreign operations, and according to the Panamanian Fiscal Code income from these foreign operations are not subject to income tax in Panama. The Panamanian Fiscal Code for the airline industry states that tax is based on net income earned for traffic whose origin or final destination is the Republic of Panama. The applicable tax rate is currently 25%. Dividends from our Panamanian subsidiaries, including Copa, are separately subject to a 10% percent withholding tax on the portion attributable to Panamanian sourced income and a 5% withholding tax on the portion attributable to foreign sourced income. Additionally, a 7% value added tax is levied on tickets issued in Panama for travel commencing in Panama and going abroad, irrespective of where such tickets were ordered. We received notifications from the tax authorities in Panama and Colombia: •In February 2020, the Company received two notifications from the Panamanian tax authority in connection with a tax audit initiated in 2019. The notifications relate to potentially significant adjustments to dividend tax for fiscal years 2012 through 2016 and income tax for fiscal year 2016. The Company filed an administrative appeal in accordance with the first legal stage under Panamanian law. Under Panamanian law, the statute of limitations is three years for income tax and fifteen years for dividend tax. •In Colombia, the Company received two notifications in March 2016 and November 2020. The notification received in March 2016 was resolved in favor of the Company. The remaining notification, which relates to income tax, was responded to within the applicable legal term by the Company and remains under review by the tax authority. The Company, together with its tax advisors, has assessed these matters and concluded that it is not probable that an outflow of resources embodying economic benefits will be required to settle them, as the Company has sufficient technical arguments to support its tax positions. We are also subject to local tax regulations in each of the other jurisdictions where we operate, the great majority of which are related to the taxation of our income. In some of the countries to which we fly, we do not pay any income taxes because we do not generate income under the laws of those countries either because they do not have income taxes or due to bilateral treaties or other arrangements those countries have with Panama. In the remaining countries, we pay income tax at rates ranging from 7% to 35% of our income attributable to those countries. Different countries calculate our income in different ways, but they are typically derived from our sales in the applicable country multiplied by our net margin or by a presumed net margin set by the relevant tax legislation. The determination of our taxable income in several countries is based on a combination of revenues sourced to each particular country and the allocation of expenses to that particular country. The methodology for multinational transportation company sourcing of revenue and expense is not always specifically prescribed in the relevant tax regulations, and therefore is subject to interpretation by both ourselves and the respective tax authorities. Additionally, in some countries, the applicability of certain regulations governing non-income taxes and the determination of our filing status are also subject to interpretation. We cannot estimate the amount, if any, of the potential tax liabilities that might result if the allocations, interpretations and filing positions we use in preparing our income tax returns were challenged by the tax authorities of one or more countries. If taxes were to increase, our financial performance and results of operations could be materially and adversely affected. Due to the competitive revenue environment, many increases in fees and taxes have been absorbed by the airline industry rather than being passed on to the passenger. Any such increases in our fees and taxes may reduce demand for air travel and thus our revenues. Under a reciprocal exemption confirmed by a bilateral agreement between Panama and the United States, we are exempt from the U.S. source transportation income tax derived from the international operation of aircraft. Our income tax expense totaled approximately $104.0 million in 2025, $97.7 million in 2024 and $97.0 million in 2023. 46 Table of Contents Results of Operation The following table shows each of the line items in our statement of profit or loss for the periods indicated as a percentage of our total operating revenues for that period: 2025 2024 2023 Operating revenues: Passenger revenue 94.8 % 95.6 % 95.9 % Cargo and mail revenue 3.2 % 2.9 % 2.8 % Other operating revenue 2.0 % 1.5 % 1.3 % Total operating revenues 100.0 % 100.0 % 100.0 % Operating expenses: Fuel 25.8 % 27.5 % 28.8 % Wages, salaries, benefits and other employees expenses 13.9 % 13.7 % 12.6 % Passenger servicing 2.9 % 3.2 % 2.6 % Airport facilities and handling charges 7.5 % 7.3 % 6.4 % Sales and distribution 5.8 % 6.0 % 6.6 % Maintenance, materials and repairs 4.3 % 3.1 % 3.8 % Depreciation, amortization and impairment 10.1 % 9.6 % 8.9 % Impairment of non financial assets — % — % — % Flight operations 3.9 % 3.8 % 3.2 % Other operating and administrative expenses 3.3 % 4.0 % 3.8 % Total operating expenses 77.4 % 78.2 % 76.6 % Operating income 22.6 % 21.8 % 23.4 % Non-operating income (expense): Finance cost (2.7) % (2.5) % (4.6) % Finance income 1.7 % 1.7 % 1.5 % Gain (loss) on foreign currency fluctuations (0.1) % (1.0) % 0.1 % Net change in fair value of derivatives (0.1) % 0.1 % (2.8) % Other non-operating income (expense) — % 0.2 % 0.2 % Total non-operating income (expense) (1.2) % (1.4) % (5.7) % Profit before income taxes 21.4 % 20.5 % 17.7 % Income taxes (2.9) % (2.8) % (2.8) % Net profit 18.6 % 17.6 % 14.9 % Year 2025 Compared to Year 2024 Our consolidated net profit in 2025 totaled $671.6 million, compared to a net profit of $608.1 million in 2024. In addition, we had consolidated operating profit of $819.0 million in 2025, compared to an operating profit of $753.0 million in 2024. Our consolidated operating margin in 2025 was 22.6%, an increase of 0.8 percentage points versus 2024. These results were driven by passenger demand increase, offset by lower passenger average fares. Operating revenue Our consolidated revenue totaled $3.6 billion in 2025, a 5.0% increase over operating revenue of $3.4 billion in 2024, mainly due to a 9.9% increase in passenger traffic, offset by a decrease of 5.2% in passenger average fare. Passenger revenue. Passenger revenue totaled $3.4 billion in 2025, a 4.2% increase over passenger revenue of $3.3 billion in 2024. This was driven by a 9.9% increase in passengers, offset by a decrease of 5.2% in passenger average fare. 47 Table of Contents Cargo and mail revenue. Cargo and mail revenue totaled $115.7 million in 2025, a 15.1% increase from cargo and mail revenue of $100.5 million in 2024, related to higher cargo volumes aided by the addition of a second freighter operation in service during the latter part of the year. Other operating revenue. Other operating revenue totaled $70.9 million in 2025, a 35.4% increase from other revenue of $52.3 million in 2024 driven by an increase in frequent flyer program partnership revenues. Operating expenses Our consolidated operating expenses totaled $2.8 billion in 2025, a 3.9% increase over operating expenses of $2.7 billion in 2024. This is mainly as a result of 7.8% increase of ASMs versus 2024, offset by lower fuel costs and sales and distribution expenses. An overview of the major variances in operating expenses on a consolidated basis follows: Fuel. Aircraft fuel totaled $932.3 million in 2025, a 1.8% decrease from aircraft fuel of $949.3 million in 2024, mainly due to a 7.9% lower effective fuel price, offset by a 7.5% increase in block hours. Wages, salaries and other employees’ expenses. Salaries and benefits totaled $502.0 million in 2025, a 6.7% increase over salaries and benefits of $470.6 million in 2024, mainly as a result of an increased headcount to support additional capacity, as well as cost of living salary adjustments. Passenger servicing. Passenger servicing totaled $105.2 million in 2025 compared to $109.2 million in 2024. This represented a 3.7% decrease mainly driven by the year-over-year effect of expenses related to the grounding of the MAX 9 grounding in 2024, partially offset by a 9.9% increase in onboard passengers. Airport facilities and handling charges. Airport facilities and handling charges totaled $270.0 million in 2025, a 6.8% increase over $252.8 million in 2024. This increase was driven mainly by a 8.6% increase in departures, partially offset by changes in route mix. Sales and Distribution. Sales and distribution totaled $208.3 million in 2025, an 0.1% increase compared to $208.0 million in 2024, driven mainly by higher sales, offset by a reduction in our distribution costs due to higher penetration of both direct sales and lower-cost NDC travel agency channels. Maintenance, materials and repairs. Maintenance, materials and repairs totaled $156.7 million in 2025, a 48.0% increase over $105.9 million in 2024. This increase was primarily a result of a non-cash adjustment in the company’s provision in 2024 related to the future return of leased aircraft, and by 7.6% more flight hours in 2025 versus 2024. Depreciation, amortization and impairment. Depreciation totaled $365.1 million in 2025, an 10.4% increase over $330.7 million in 2024, mainly related to additional aircraft and more maintenance events. Flight operations. Flight operations amounted to $141.3 million in 2025, an 9.1% increase compared to $129.5 million in 2024, mainly due to 7.5% more block hours and higher overflight rates. Other operating and administrative expenses. Other expenses totaled $117.9 million in 2025, a 14.0% decrease from $137.1 million in 2024, mostly related to a realized gain related to engine exchange transactions. Total Non-operating Income (Expense) Non-operating expense totaled $43.4 million in 2025, as compared to non-operating expense of $47.2 million in 2024 primarily reflecting the appreciation of the Brazilian real and Colombian peso against the U.S. dollar during the year 2025. Finance cost. Finance cost totaled $98.4 million in 2025 mainly comprised of the loan interest and commission expenses, discount rate utilized for the calculation of leased aircraft charges, interest charges related to operating leases and other interest charges. This represents a 16.5% increase over finance cost of $84.5 million in 2024. Finance income. Finance income totaled $62.6 million in 2025, an 6.3% increase over finance income of $58.9 million in 2024 related to proceeds from investments. 48 Table of Contents Gain (loss) in foreign currency fluctuations. Loss in foreign currency fluctuations totaled $4.6 million in 2025, a decrease over a loss in foreign currency fluctuations of $34.0 million in 2024. The year-over-year improvement was mainly attributable to the strengthening of the Brazilian real and Colombian peso against the U.S. dollar during 2025. Net change in fair value of derivatives. Net fair value of derivatives totaled $4.3 million loss in 2025, a 196.9% decrease over $4.5 million gain in 2024, mostly driven by the unrealized mark-to-market loss of hedge transactions related to the Brazilian real throughout the year 2025. Other non-operating income (expense). Other non-operating expense totaled $1.4 million income in 2025, compared to $7.9 million income in 2024 mainly due to changes in the value of financial investments. B.Liquidity and Capital Resources Our cash, cash equivalents, and short-term investments at December 31, 2025, increased by $138.9 million compared to December 31, 2024, to $1,338.2 million. As part of our financing policy, we expect to meet our liquidity needs with cash from operations, cash on hand and the utilization of committed credit facilities, if needed. As of the date hereof, our current unrestricted cash exceeds our forecasted cash requirements to carry out operations, including payment of debt service, for fiscal year 2026. Our cash, cash equivalent and short-term investment position represented 37.0% of our revenues for the year ended December 31, 2025, and 20.3% of our total assets and 48.2% of our total equity as of December 31, 2025, which we believe provides us with an adequate liquidity position. In recent years, we have been able to meet our working capital requirements through cash from our operations. In 2025, we experienced an operational net cash increase of $153.6 million compared with the previous year. Our ability to meet our liquidity needs in the future is subject to numerous risks and uncertainties, including the levels of cash refunds of customer deposits, the results of contract negotiations with suppliers and whether we take delivery of aircraft pursuant to existing commitments as well as the terms on which we do so and the terms of any related financing available to us. Our capital expenditures, which consist primarily of aircraft purchases, are funded through a combination of our cash from operations and long-term financing. From time to time, we finance pre-delivery payments related to our aircraft with short or medium-term financing in the form of commercial bank loans and/or bonds privately placed with commercial banks, as well as resorting to a deferred pre-delivery schedule from the aircraft manufacturer. Copa Holdings, S.A., through its subsidiaries, has aggregate uncommitted unsecured credit facilities of $160.0 million as of December 31, 2025. Operating Activities We rely primarily on cash flows from operations to provide working capital for current and future operations. Our net cash flows provided by operating activities for the year ended December 31, 2025, were a net operating cash inflow of $1,150.4 million, an increase of $153.6 million compared to a net operating cash inflow of $996.8 million in 2024. Our principal source of cash is receipts from ticket sales to customers, which for the year ended December 31, 2025, increased by $277 million over receipts in the year 2024. Investing Activities Net cash flow used in investing activities was $1,318.5 million in 2025 compared to a net cash flow used in investing activities of $343.1 million in 2024. During 2025, we made capital expenditures of $922.2 million, which consisted of expenditures related to the acquisition of property and equipment and net of advance payments and reimbursements on aircraft purchase contracts, related to the arrival of twelve Boeing 737 MAX during 2025, compared to $465.9 million in 2024. In 2025, the Company had $365.5 million from net proceeds of investments compared to $139.9 million from net proceeds of investments in 2024. Also, in 2025, we had proceeds from the sale of property and equipment of $0.2 million, compared to $13.0 million in 2024. We also had expenditures of $30.9 million in acquisition of intangible assets in 2025 compared to $30.2 million in 2024. Financing Activities Net cash flow used in financing activities was $36.1 million in 2025 compared to net cash flow used in financing activities of $219.6 million in 2024. During 2025, $552.2 million of proceeds from borrowings were offset by the 49 Table of Contents repayment of $254.6 million in debt, $265.9 million in dividends paid, $8.7 million in repurchase of treasury shares and $59.1 million in payment of lease liability. Over the years, we have financed the acquisition of Boeing 737-Next Generation aircraft through syndicated loans provided by international financial institutions with the support of guarantees issued by the Export-Import Bank of the United States, or “Ex-Im”, with repayment profiles of 12 years. The Ex-Im guarantees support 80%-85% of the net purchase price and are secured with a first priority mortgage on the aircraft in favor of a security trustee on behalf of Ex-Im. The documentation for each loan follows standard market forms for this type of financing, including standard events of default. Our Ex-Im supported financings amortize on a quarterly basis, are denominated in dollars and can bear interest at a floating rate linked to SOFR or be set at a fixed rate. As of December 31, 2025, the Company had $336.1 million (2024: $376.7 million) of long-term fixed rate debt of outstanding indebtedness that is owed to financial institutions under financing arrangements guaranteed by the Export-Import Bank of the United States. At December 31, 2025, the total amount outstanding under our Ex-Im-supported financings totaled $336.1 million. Since 2014, we have financed our aircraft through a mix of Japanese Operating Leases with Call Options, or “JOLCO”, and sale-leasebacks. JOLCO is a Japanese-sourced lease transaction that provides for 100% financing and is typically used to finance new aircraft and has a minimum lease term of 9 years. In a JOLCO, the aircraft is purchased by a Japanese equity investor. The Japanese equity investor funds approximately 30% of the acquisition cost of the aircraft and becomes the owner of the aircraft via a Special Purpose Entity. A Japanese bank or an international bank with onshore lending capabilities provides the balance of the aircraft purchase price via a senior secured mortgage loan. JOLCOs have a call option, which lessees often expect the lessor to exercise. Under IFRS, these transactions are accounted for as a financial lease. We have financed 11 Boeing 737 Next Generation and 34 Boeing 737 MAX aircraft since 2014 through JOLCO financing. As of December 31, 2025, JOLCO financed debt outstanding totaled approximately $1.6 billion. Capital resources. We finance our aircraft through long-term debt and operating lease financings. Although we expect to finance future aircraft deliveries with a combination of similar debt arrangements and financing leases, we may not be able to secure such financing on attractive terms. To the extent we cannot secure financing, we may be required to modify our aircraft acquisition plans or incur higher than anticipated financing costs. We expect to meet our operating obligations as they become due through available cash and internally generated funds, supplemented as necessary by short-term or medium-term credit lines. As of December 31, 2025, we have firm orders to purchase 85 Boeing 737 MAX aircraft to be delivered between 2026 and 2034. The aircraft under these contracts have an approximate value of $0.2 billion in 2026, $0.5 billion in 2027, $0.9 billion in 2028, $0.4 billion in 2029, and $2.7 billion thereafter, based on contractual obligations net of discounts and pre-delivery payments, including estimated amounts for contractual price escalation. We meet our pre-delivery deposit requirements for our Boeing 737 MAX aircraft by using cash from operations, or by using short or medium-term borrowing facilities for deposits required between three years and six months prior to delivery. The Company maintained letters of credit with several banks with a value of $27.0 million as of December 31, 2025 (compared to 2024: $20.6 million, as of December 31, 2024). These letters of credit are pledged mainly for operating lessors, maintenance providers and airport operators. The Company has aggregate unsecured credit facilities of $160.0 million (2024: 175.0 million). These credit facilities are in place for contingency and working capital purposes. As of December 31, 2025, the Company does not have any outstanding borrowings under these credit facilities. C.Research and Development, Patents and Licenses, etc. We believe that the Copa brand has strong value and indicates superior service and value in the Latin American travel industry. We have registered the trademarks “Copa”, “Copa Airlines”, “Wingo” and “Hub of the Americas” with the trademark offices in Panama, the United States, and the majority of the countries in which we operate. We license certain brands, logos and trade uniforms under the trademark license agreement with UAL related to our alliance. We will have the right to continue to use our current logos on our aircraft for up to five years after the end of the alliance agreement term. “Copa Colombia”, “Copa Airlines Colombia”, “Wingo” and “Hub of the Americas” are registered names and trademarks in Colombia, Panama, Ecuador, Venezuela, Mexico, Dominican Republic, and Guatemala. 50 Table of Contents We operate many software products under licenses from our vendors, including our passenger services system, booking engine, revenue management software and our cargo management system. Under our agreements with Boeing, we also use a large amount of Boeing’s proprietary information to maintain our aircraft. The loss of these software systems or technical support information from our vendors could negatively affect our business. D.Trend Information Global geopolitical events, such as the conflict between Russia and Ukraine beginning in February 2022 and the conflict in the Middle-East beginning in October 2023, have led to fluctuations in fuel costs which may negatively impact our business operations. Due to the evolving nature of such events, we are unable to predict the extent of the impact on our business. While we do not expect that the conflict will be directly material to us, collateral effects of the geopolitical instability, such as the imposition of sanctions against Russia and Russia’s response to such sanctions, could adversely affect the global economy or domestic markets where we operate. Further instability in Venezuela may result in disruptions to our service or in reduced demand for air travel in Venezuela and neighboring countries. Also, global macroeconomic conditions, such as inflation and recession, in key markets where we operate can negatively impact our business and we cannot predict the severity or duration of such conditions or their effect. E.Critical Accounting Estimates For a comprehensive discussion of our significant accounting policies and related judgments and estimates, refer to the Notes 3 and 4 to our consolidated financial statements, which have been prepared in accordance with IFRS Accounting Standards.