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Copa Holdings' Q1 Earnings & Revenues Top Estimates, Improve Year/Year
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Key Takeaways
CPA delivered Q1 2026 EPS of $5.16 and revenue of $1.05B, topping estimates and rising Y/Y.
CPA guides Q2 margin 8%-12% with ASM 16% as jet fuel 80%-90%, 50% offset by revenue.
For 2026, CPA expects capacity to grow 11-13% year over year and expects to end 2026 with 133 aircraft.
Copa Holdings, S.A. (CPA - Free Report) reported impressive first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year.
Quarterly earnings of $5.16 outpaced the Zacks Consensus Estimate of $4.43 and improved 20.5% year over year. Revenues of $1.05 billion beat the Zacks Consensus Estimate of $1.03 billion and inched up 17% year over year, due to a 15.3% increase in onboard passengers.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Passenger revenues (which contributed 95.4% to the top line) grew 16.9% year over year to $1.00 billion. The upside was owing to a 15% increase in revenue passenger miles and 1.6% higher yields. Cargo and mail revenues of $29.76 million grew 15.8% year over year, owing to higher cargo volumes. Other operating revenues of $18.49 million improved 27.8% year over year, owing to an increase in ConnectMiles revenues from non-air partners.
Quarterly results reflect a solid and persistent demand environment across the region, constant discipline in lowering unit costs, a passenger-friendly product and its relentless focus on operational excellence.
CPA’s Other Financial Details
On a consolidated basis, Copa Holdings’ traffic (measured in revenue passenger miles) grew 15%, and capacity (measured in available seat miles) increased 14% from the year-ago quarter. Since traffic growth outpaced capacity expansion, the load factor (percentage of seats filled by passengers) increased 0.8 percentage points to 87.2% in the reported quarter.
Passenger revenue per available seat mile rose 2.6% year over year to 11.3 cents. Revenue per available seat mile (RASM) rose 2.7% year over year to 11.8 cents.
Cost per available seat mile excluding fuel (CASM ex-fuel) fell 1% year over year to 5.8 cents, reflecting CPA’s continued cost discipline, while CASM rose 1.6% year over year to 8.9 cents in the first quarter owing to higher fuel prices.
The average fuel price per gallon increased 7.5% year over year to $2.73. While the average fuel price increase for the reported quarter was moderate, higher prices in the second half of March led to a nearly $20 million year-over-year net impact on the company’s first-quarter results.
Operating expenses increased 15.8% year over year to $793.8 million in the first quarter, owing to capacity growth, higher maintenance-related costs and an increase in the average price of jet fuel. Expenses on wages, salaries, benefits and other employee expenses rose 17.1% year over year. Sales and distribution costs increased 9.1% year over year. Passenger servicing costs grew 12.4% from the year-ago quarter. Airport facilities and handling charges grew 20.6% year over year. Expenses on fuel/fuel costs rose 21.7% year over year.
CPA repurchased shares worth $45 million during the reported quarter, under the existing $200 million repurchase authorization.
Copa Holdings exited the first quarter with cash and cash equivalents of $374.22 million compared with $382.55 million at the prior-quarter end.
In the first quarter of 2026, CPA took delivery of two Boeing 737-MAX 8 aircraft and ended the quarter with a total fleet of 127 aircraft. During the second quarter of 2026 (so far), CPA took delivery of two additional Boeing 737 MAX 8 aircraft, increasing its total fleet to 129 aircraft.
CPA’s Outlook
For the second quarter of 2026, Copa Holdings anticipates an operating margin in the range of 8% to 12%, with capacity growth in ASMs of 16% year over year. These results are affected by a projected year-over-year increase in the all-in jet fuel price per gallon in the range of 80% to 90%, for which the company anticipates recovering almost 50% through higher revenues. This partial pass-through is a result of the already advanced booking levels.
For 2026, CPA’s management continues to expect consolidated capacity to be up 11%-13% year over year. The load factor for the current year is expected to be 87%. Non-fuel unit costs are anticipated to be 5.7 cents. CPA anticipates to recover a substantial portion of its increased fuel price expenses for the full year, reaching up to 100% by the end of the year.
Copa Holdings expects to end 2026 with 133 aircraft and 2027 with 144 aircraft.
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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Copa Holdings' Q1 Earnings & Revenues Top Estimates, Improve Year/Year
Key Takeaways
Copa Holdings, S.A. (CPA - Free Report) reported impressive first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year.
Quarterly earnings of $5.16 outpaced the Zacks Consensus Estimate of $4.43 and improved 20.5% year over year. Revenues of $1.05 billion beat the Zacks Consensus Estimate of $1.03 billion and inched up 17% year over year, due to a 15.3% increase in onboard passengers.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Copa Holdings, S.A. price-consensus-eps-surprise-chart | Copa Holdings, S.A. Quote
Passenger revenues (which contributed 95.4% to the top line) grew 16.9% year over year to $1.00 billion. The upside was owing to a 15% increase in revenue passenger miles and 1.6% higher yields. Cargo and mail revenues of $29.76 million grew 15.8% year over year, owing to higher cargo volumes. Other operating revenues of $18.49 million improved 27.8% year over year, owing to an increase in ConnectMiles revenues from non-air partners.
Quarterly results reflect a solid and persistent demand environment across the region, constant discipline in lowering unit costs, a passenger-friendly product and its relentless focus on operational excellence.
CPA’s Other Financial Details
On a consolidated basis, Copa Holdings’ traffic (measured in revenue passenger miles) grew 15%, and capacity (measured in available seat miles) increased 14% from the year-ago quarter. Since traffic growth outpaced capacity expansion, the load factor (percentage of seats filled by passengers) increased 0.8 percentage points to 87.2% in the reported quarter.
Passenger revenue per available seat mile rose 2.6% year over year to 11.3 cents. Revenue per available seat mile (RASM) rose 2.7% year over year to 11.8 cents.
Cost per available seat mile excluding fuel (CASM ex-fuel) fell 1% year over year to 5.8 cents, reflecting CPA’s continued cost discipline, while CASM rose 1.6% year over year to 8.9 cents in the first quarter owing to higher fuel prices.
The average fuel price per gallon increased 7.5% year over year to $2.73. While the average fuel price increase for the reported quarter was moderate, higher prices in the second half of March led to a nearly $20 million year-over-year net impact on the company’s first-quarter results.
Operating expenses increased 15.8% year over year to $793.8 million in the first quarter, owing to capacity growth, higher maintenance-related costs and an increase in the average price of jet fuel. Expenses on wages, salaries, benefits and other employee expenses rose 17.1% year over year. Sales and distribution costs increased 9.1% year over year. Passenger servicing costs grew 12.4% from the year-ago quarter. Airport facilities and handling charges grew 20.6% year over year. Expenses on fuel/fuel costs rose 21.7% year over year.
CPA repurchased shares worth $45 million during the reported quarter, under the existing $200 million repurchase authorization.
Copa Holdings exited the first quarter with cash and cash equivalents of $374.22 million compared with $382.55 million at the prior-quarter end.
In the first quarter of 2026, CPA took delivery of two Boeing 737-MAX 8 aircraft and ended the quarter with a total fleet of 127 aircraft. During the second quarter of 2026 (so far), CPA took delivery of two additional Boeing 737 MAX 8 aircraft, increasing its total fleet to 129 aircraft.
CPA’s Outlook
For the second quarter of 2026, Copa Holdings anticipates an operating margin in the range of 8% to 12%, with capacity growth in ASMs of 16% year over year. These results are affected by a projected year-over-year increase in the all-in jet fuel price per gallon in the range of 80% to 90%, for which the company anticipates recovering almost 50% through higher revenues. This partial pass-through is a result of the already advanced booking levels.
For 2026, CPA’s management continues to expect consolidated capacity to be up 11%-13% year over year. The load factor for the current year is expected to be 87%. Non-fuel unit costs are anticipated to be 5.7 cents. CPA anticipates to recover a substantial portion of its increased fuel price expenses for the full year, reaching up to 100% by the end of the year.
Copa Holdings expects to end 2026 with 133 aircraft and 2027 with 144 aircraft.
CPA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.