Panama flag carrier Copa Airlines’ management said there is “healthy” demand despite current economic uncertainty.
“We remain mindful of the uncertain economic environment,” said Copa Holdings CFO Peter Donkersloot during the company’s first quarter earnings call. “As of now, we see healthy passenger booking trends. But if this was to change, we are confident that we are in the best position to continue delivering industry-leading results.”
Later in the call, CEO Pedro Heilbron said the company “hasn’t seen any material change in the last few weeks” on US point-of-sale strength or regional differences amid the changing demand environment.
“We only have visibility two to three months in the future,” he continued. “So, what’s coming in the second half of the year is hard to tell at this point.”
The company recorded a net profit of $176.8 million, or $4.28 earnings per share, marking a $0.7 million increase compared to the same period a year prior.
Donkersloot disclosed during the call that the company exercised options for six additional 737 MAX 8 in the first quarter, increasing its total orderbook to 57 aircraft. The jets are expected to be delivered 2028.
Copa plans to retire one of its nine 737-700s during the second half of the year, meaning it expects to end the year with a total of 125 aircraft. The company expects 13 737 MAX deliveries this year and six 737 MAX 8 deliveries during 2026.
Despite tariffs potentially impacting American and Chinese carriers to introduce new aircraft, the company does not anticipate receiving deliveries earlier.
“We don't really see an opportunity to advance,” said Heilbron. “We would love to do so. The information we get from Boeing is that our deliveries are not really going to change – at least they're not going to be earlier. They might be a few weeks earlier – if Boeing has a little bit more available capacity – but nothing significant.”
Revenues were relatively flat, up 0.6% to $899.2 million. Operating expenses slightly outpaced revenue growth at 1.2%, though still landing below at $685.4 million. Operating profit was $213.8 million, down 1%, and its operating margin was 23.8%, down 0.4 percentage points.
Copa declared a dividend of $1.61 per share, paid on June 13 to shareholders as of May 30.
The company’s RASM was down 8.1% to 11.5 cents, while CASM was down 7.7% to 8.8 cents. CASM excluding fuel was down 4.3% to 5.8 cents.
Capacity was up 9.5% in the first quarter, while load factor was up 0.4 percentage points to 86.4%.
For the year ahead, the company increased its operating margin guidance to 21% to 23%. Capacity is expected to grow 7-8%. CASM excluding fuel is expected to be approximately $5.8.
The company ended the quarter with $1.3bn in cash and cash equivalents. Debt totalled $1.9bn and adjusted net debt to EBITDA was 0.5x at the end of the financial period.