Copa Holdings (CPA) Investor Day 2025 summary

Strategic Overview and Business Model

• Celebrating 20 years since NYSE listing, with a business model unchanged for 30 years but continuously improved, achieving a 6x increase in revenue and 10x increase in net income over 20 years.

• Four pillars: unique Panama hub, focus on underserved small city pairs, cost efficiency, and passenger-friendly product, leveraging Panama's geographic position to connect 85+ destinations in 32 countries.

• Maintains industry-leading double-digit operating margins in 18 of the last 20 years, consistently outperforming regional and global peers in unit costs and profitability.

• Business model centers on low unit costs, a passenger-friendly product, and a strong corporate culture with high employee retention and recognition programs.

• Latin American air traffic is projected to grow above GDP, supported by a young population and rising incomes, with international air service essential due to limited ground connectivity.

Growth Plans and Operational Excellence

• Flexibility in fleet planning allows rapid adjustment to demand, with 46 Boeing 737 MAX deliveries expected between 2026-2029, and built-in flexibility through aircraft retirements, lease expirations, and slide rights.

• Capacity growth is focused on increasing frequencies in existing markets and adding new destinations, with 90% of 2026 growth from frequency additions and full-year effects of 2025 growth.

• Tocumen International Airport expansion will add 10+ gates over the next three years, supporting operational growth for the next decade.

• Operational excellence is demonstrated by a decade as the most on-time airline in Latin America, high completion factors, and multiple service awards, with on-time performance consistently above 90%.

• Digital tools, in-house app development, and data analytics drive customer experience improvements, fuel efficiency, and operational reliability.

Financial Performance and Guidance

• EPS has grown at an 11.4% CAGR since 2005, with cash from operations at 11.8% CAGR, and dividend CAGR of 20.4% since 2006, with a policy of paying out 40% of prior year net income.

• 2025 guidance: 8% ASM growth, 22–23% operating margin, 87% load factor, CASM ex-fuel at $0.058.

• 2026 guidance: 11–13% ASM growth, CASM ex-fuel between $0.057–0.058, with only 10% of growth from new destinations.

• Targeting CASM ex-fuel of $0.056 by 2028, driven by densification, digitalization, and payment efficiencies.

• Projects a 6-8% CAGR in available seat miles (ASMs) through 2029, with continued focus on cost reduction and shareholder returns.