What are the early thoughts on 2028 deliveries, considering some discussions are happening now?

2028 deliveries will be higher, marking the end of Boeing delays. The company has significant flexibility with 6 lease expirations, 5 additional 700s that can be let go, and over 40 unencumbered aircraft, allowing adjustment based on demand. “For 2028, the number -- again, we haven't shared that yet. It will be higher because it's like almost the end of the road for all the Boeing delays, delivery delays that we had in the last 4 years.”

What is the expected variation in unit revenue growth between Q3 and Q4, given the full-year guidance?

RASM is expected to be plus 10% in H2, fairly consistent across Q3 and Q4, with broadly similar year-over-year variation between the two quarters. “Yes. Duane, at this point, we're seeing plus 10% on RASM in H2. I would say it's fairly consistent across Q3, Q4. In terms of year-over-year variation, it's broadly similar between the 2. So I think nothing really of note in either quarter that varies.”

What drove the upward revision in capacity guidance, and what are the CapEx and charging intentions for Starlink?

Capacity guidance increased due to Boeing delivering aircraft on time (some even early), increased aircraft utilization, and strong demand. Starlink CapEx was prepaid and is in the books. The business model offers complimentary access for business class, preferred members, and Starlink subscribers, with other passengers paying. “So the combination of those factors allow us to increase our capacity guidance. And of course, the demand is there. We have strong demand. So we're really happy to be able to guide to higher ASM capacity.”

CPA

Copa Holdings (CPA) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 6, 2026

Source: earnings call transcript

Executive summary

Copa Holdings Q2 FY26 — Strong Demand and Hub Expansion Drive Profitable Growth

Copa Holdings delivered resilient Q2 FY26 results, navigating significantly higher fuel costs with strong demand and operational excellence. The company is expanding its Hub of the Americas to 8 connecting banks by March 2027, enhancing network connectivity and aircraft utilization. Management remains confident in its ability to sustain profitable growth and shareholder value, supported by a robust balance sheet and continued strong booking trends.

Highlights

Operating profit of $91.7 million and 8.7% margin despite 85% fuel cost increase.
Capacity grew 16.5% in ASMs with solid 86.7% load factor, supported by strong demand.
Industry-leading operational reliability with 90.6% on-time performance and 99.8% flight completion.
Strong balance sheet with $1.5 billion in cash and investments, representing 39% of LTM revenue.
Transition to 8 connecting banks by March 2027 to improve connectivity and aircraft utilization.

Concerns

Operating margin declined to 8.7% from 21.7% in Q2 2025 due to an 85% increase in all-in fuel cost.
World Cup temporarily affected travel patterns in June, reducing Q2 RASM by approximately $0.001.
Q2 EBIT margin landed at the lower end of guidance (8-12%) primarily due to RASM impact from the World Cup.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Operating Margin	17% to 19% high materiality	FY26 · 2026	High
Full-year 2026 Capacity Growth (ASMs)	14% to 15% high materiality	FY26 · 2026	High
Full-year 2026 Load Factor	approximately 87% medium materiality	FY26 · 2026	High
Full-year 2026 RASM	$0.12 medium materiality	FY26 · 2026	High
Full-year 2026 Ex-Fuel CASM	$0.057 medium materiality	FY26 · 2026	High
Full-year 2026 All-in Fuel Price per Gallon	$3.60 medium materiality	FY26 · 2026	High
Q3 Dividend Payment per Share	$1.71 medium materiality	Q3 · 2026	High
2027 Net Aircraft Deliveries	10 aircraft medium materiality	FY27 · 2027	High
2027 Gross Aircraft Deliveries	12 aircraft medium materiality	FY27 · 2027	High
2028 Aircraft Deliveries	higher medium materiality	FY28 · 2028	Medium

CPA operating KPIs by quarter

CPA operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Load factor	87.2% Capacity increased 14% year-over-year, while passenger traffic increased 15%, resulting in a 0.8 percentage point increase in load factor to 87.2%. Source: earnings call transcript	86.7% Load factor was 86.7% compared to 87.3% in Q2 2025. Source: earnings call transcript	-0.5 pt
Fleet	127 During the quarter, we took delivery of 2 Boeing 737-MAX 8, ending Q1 with 127 aircraft. Source: earnings call transcript	131 Finally, on the fleet side, we took delivery of 4 Boeing 737-MAX 8 aircraft during the quarter, ending the period with a fleet of 131 aircraft. Source: earnings call transcript	+3.1%
Aircraft deliveries Boeing 737-MAX 8	2 During the quarter, we took delivery of 2 Boeing 737-MAX 8, ending Q1 with 127 aircraft. Source: earnings call transcript	4 Finally, on the fleet side, we took delivery of 4 Boeing 737-MAX 8 aircraft during the quarter, ending the period with a fleet of 131 aircraft. Source: earnings call transcript	+100%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Porlamar, Isla de Margarita, Venezuela Addition of new leisure destination to network

Service to start in November. This brings Copa to 88 destinations in 32 countries.

Risks & headwinds

Elevated and Volatile Fuel Prices Q2 FY26 and remainder of FY26

Q2 all-in fuel cost increased 85% year-over-year to $4.28 per gallon; full-year outlook assumes $3.60 per gallon.

Mitigation:Strong demand and higher yields enabled recovery of approximately 40% of the year-over-year increase in fuel expenses; continuous focus on cost discipline (Ex-Fuel CASM flat YoY).

World Cup Impact on Travel Patterns Q2 FY26 (specifically June)

Reduced Q2 RASM by approximately $0.001; June load factors 2.3 percentage points lower year-over-year.

Mitigation:Temporary impact; strong demand trends seen throughout the network going forward, with July load factor nearly 90%.

What to watch in Q3 FY26

New Destination Announcement

before end of August

Current 88 destinations

Target 89th destination announced

Why it matters

Indicates continued network expansion and strengthening of the Hub of the Americas.

And yes, we expect to announce at least one more destination for year-end. That should come probably before the end of the month. Before the end of August, I think we'll be announcing what would be our 89th destination to be implemented in December.

Find out whether CPA delivers this. Inve re-checks your case every morning.

Q&A highlights

How much of Q3 and Q4 was booked prior to fare increases, and what are the current booking levels?

For Q3, less than 20% was booked pre-war/pre-fare increases, and almost nothing for Q4. Currently, Q3 is about 75% booked and Q4 is about 25% booked.

“Right now, we're about 75% booked for Q3 and about 25% sold for Q4.”

asked by Savanthi Syth · answered by Robert Carey

2 min read 5 chapters

Detailed narrative

Hub of the Americas Expansion

Copa Holdings announced a strategic transition from 6 to 8 connecting banks at its Hub of the Americas in Panama, effective March 2027. This expansion aims to significantly improve connectivity across its network, offer greater travel options for passengers, and optimize aircraft utilization.

The move is also expected to strengthen Panama's position as a leading hub for intra-Americas travel, leveraging the airport's existing infrastructure and planned future investments.

Starlink Onboard Internet Rollout

The company launched Starlink onboard internet in July, becoming the first airline in Latin America to offer high-speed connectivity. The rollout across the entire fleet is anticipated to be completed by the first half of 2027. The business model includes complimentary access for business class passengers, preferred members, and Starlink subscribers, with other passengers paying for the service.

The associated capital expenditure was prepaid and is already reflected in the company's books.

Fleet Flexibility and Growth

Copa maintains significant flexibility in its fleet plan, utilizing delivery options, slide rights, lease expirations, and a substantial base of over 40 unencumbered aircraft. This flexibility allows the company to adjust its growth pace based on market conditions. For 2027, Copa expects 12 aircraft deliveries, with a net addition of 10 after retiring two 700s.

Deliveries for 2028 are projected to be higher, marking the end of Boeing's delivery delays.

Fuel Price Impact and Recovery

Despite an 85% year-over-year increase in all-in fuel costs to $4.28 per gallon in Q2 FY26, Copa demonstrated resilience. The company recovered approximately 40% of the fuel expense increase through strong demand and higher yields, even with 40% of Q2 bookings sold before the fuel price surge.

Management noted that pre-war average fares in the region were below 2019 levels, suggesting room for sustained yields even if fuel prices ease.

Strong Demand and Network Performance

Booking trends remain strong across Copa's network, supporting expectations for high load factors and solid financial performance. July traffic numbers showed a load factor of nearly 90% on a 16% year-over-year capacity increase, achieved in a higher yield environment. Demand is robust across all regions, with Brazil and North America showing slightly stronger performance, contributing to the company's positive outlook for the second half of the year.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.