A Panama-based airline holding company that runs Copa Airlines, the flag carrier of Panama, plus Copa Airlines Colombia. Copa's name comes from its original Spanish title, Compañía Panameña de Aviación, and it was founded in 1944 with help from Pan American World Airways, starting domestic flights in 1947. Today it flies to dozens of cities across the Americas from its hub at Tocumen International Airport in Panama City, nicknamed the "Hub of the Americas" for its fast connections between North and South America.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Copa Holdings' 2025 net income rose 10.4% to $671.6M as traffic growth offset lower fares
Copa Holdings returned its highest annual profit since before the pandemic. rose 5.0% to $3,617.8M and rose 11.9% to $16.28 as a 9.9% increase in passenger traffic offset a 5.2% lower average fare and fuel costs declined. The company enters 2026 with $1,338.2M in cash and against 85 Boeing 737 MAX orders through 2034.
Key takeaways
rose 10.4% to $671.6M and rose 9.9% to $775.6M, with at 21.4%, up 1.0 point, as the effective jet fuel price dropped 7.9%.
rose 5.0% to $3,617.8M; passenger traffic increased 9.9% but the passenger average fare declined 5.2%, leaving passenger revenue growth below volume.
Cargo and mail increased 15.1% to $115.7M after a second freighter operation was added late in the year.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Copa Holdings remains unhedged on fuel, carries variable-rate debt and peso/BRL revenue exposure, and uses short-term NDFs for BRL.
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The Company has no outstanding fuel hedge contracts and estimates a 10% fuel price rise would increase 2026 fuel expense by about $88.9 million.
A 100-basis-point rise in interest rates would lift variable-rate debt by roughly $9.1 million and raise the fair value of fixed-rate debt by $36.1 million.
Maintenance, materials and repairs expense rose 48.0% to $156.7M, driven by a in 2024 for future leased aircraft returns.
rose 15.4% to $1,150.4M and cash plus reached $1,338.2M at year-end.
The company remains unhedged on fuel; a 10% fuel price rise is estimated to add about $88.9M to 2026 expense.
What changed
The 51 Boeing 737 MAX orders ($2.3B through 2030) flagged in 2024 became 85 ($0.2B in 2026, $2.7B after) through 2034, widening the delivery horizon.
The Venezuela flight suspension noted in 2024 was not reported as a resolved item; risk factors still cite recent disruptions in Venezuela as a threat.
The joint business agreement with United Airlines and Avianca remained unapproved across all prior years and is still flagged for regulatory watch in 2025.
Fuel stayed unhedged throughout; the estimated cost of a 10% price rise was $81.9M for 2025 (2024 filing) and is $88.9M for 2026.
The 2024 material weakness in internal control over the frequent flyer program was remediated per the 2025 risk factors.
After a 0.3% dip in 2024, revenue returned to growth at 5.0% in 2025 on traffic recovery rather than fare increases.
What to watch
Track delivery pace and funding of the 85 Boeing 737 MAX orders ($2.7B beyond 2026) against $1,338.2M cash and .
Monitor the regulatory approval of the joint business agreement with United Airlines and Avianca and its codeshare effect.
Follow aircraft fuel expense given no hedges and the $88.9M estimated cost of a 10% 2026 fuel-price rise.
Watch passenger average fare after a 5.2% decline in 2025 offset 9.9% traffic growth.
Approximately 67.5% of and 84.2% of expenses are in U.S. dollars; the Brazilian real, Colombian peso, Mexican peso, and Chilean peso contributed 8.6%, 8.8%, 3.5%, and 3.0% of 2025 revenue.
The Company uses short-term non-delivery forward contracts on the Brazilian real, not designated for , and occasionally factors foreign-currency credit card .
Foreign-currency net asset exposure stood at $18.0 million at year-end 2025, up from $6.2 million in 2024, driven mainly by cash, , and .
Key risks include expansion execution, geopolitical and economic exposure in Latin America, fleet concentration on Boeing 737 MAX, and intense competition.
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Failure to execute expansion into new markets or increase frequencies could limit growth and strain management resources, requiring substantial cash for aircraft.
Operations are heavily dependent on economic and political stability in Panama and other Latin American countries, with recent disruptions in Venezuela and U.S. tariff uncertainty posing direct threats.
The company's reliance on Boeing 737 MAX aircraft exposes it to risks of delivery delays, regulatory groundings, and technical issues that could disrupt operations and increase costs.
Intense competition from both legacy carriers and low-cost point-to-point carriers threatens the , potentially bypassing the Panama hub and pressuring fares.
A in internal control over financial reporting related to the frequent flyer program was identified in 2024; management believes it has been remediated.
High fixed costs, fuel price volatility, and significant future capital commitments for 85 Boeing 737 MAX aircraft on order could strain liquidity and increase .
Copa Holdings is a leading Latin American airline operating a hub-and-spoke model from Panama City, serving 84 destinations across the Americas and Caribbean.
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Copa operates through two main subsidiaries: Copa Airlines, a full-service carrier, and AeroRepública, which runs the low-cost Wingo brand in Colombia and regionally.
The company's Panama City hub at Tocumen International Airport consolidates passenger traffic, enabling service to over 5,000 city pairs with a fleet of 125 Boeing 737 aircraft.
Passenger accounted for 94.8% of total revenues in 2025, with cargo operations contributing an additional 3.2%.
Copa maintains a strategic alliance with United Airlines involving and joint marketing, and has been a Star Alliance member since 2012.
The company has 85 firm orders for Boeing 737 MAX aircraft scheduled for delivery between 2026 and 2034 to modernize and expand its fleet.
Copa's competitive strengths include its strategically located hub, low operating costs ( ex-fuel of 5.76¢ in 2025), a modern fleet, and a strong reputation for on-time performance.
Net profit rose 10% to $671.6M on 5% revenue growth, driven by a 9.9% traffic increase that offset lower fares and was supported by reduced fuel costs.
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Total operating grew 5.0% to $3.6B, as a 9.9% increase in passenger traffic was partially offset by a 5.2% decline in passenger average fare.
Cargo and mail increased 15.1% to $115.7M, aided by the addition of a second freighter operation late in the year.
improved 0.8 pp to 22.6%, as a 7.9% drop in the effective jet fuel price and lower sales distribution costs helped offset a 7.8% capacity increase.
Maintenance, materials and repairs expense surged 48.0% to $156.7M, primarily due to a non-cash provision adjustment in 2024 related to future leased aircraft returns.
rose to $1,150.4M, and the company held $1,338.2M in cash and short-term investments, which it believes is adequate to meet 2026 requirements.
The company has firm orders for 85 Boeing 737 MAX aircraft for delivery between 2026 and 2034, with an estimated value of $0.2B in 2026 and $2.7B thereafter.