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Copa Holdings (CPA) Up 2.6% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Copa Holdings (CPA - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Copa Holdings due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Copa Holdings, S.A. before we dive into how investors and analysts have reacted as of late.
Copa Holdings Q1 Earnings Top Estimates
Copa Holdings 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.
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, reflecting strong regional demand.
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates review.
VGM Scores
Currently, Copa Holdings has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Copa Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Copa Holdings is part of the Zacks Transportation - Airline industry. Over the past month, Allegiant Travel (ALGT - Free Report) , a stock from the same industry, has gained 7%. The company reported its results for the quarter ended March 2026 more than a month ago.
Allegiant Travel reported revenues of $732.43 million in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.77 for the same period compares with $1.81 a year ago.
Allegiant Travel is expected to post a loss of $0.66 per share for the current quarter, representing a year-over-year change of -153.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -16.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Allegiant Travel. Also, the stock has a VGM Score of A.
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Copa Holdings (CPA) Up 2.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Copa Holdings (CPA - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Copa Holdings due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Copa Holdings, S.A. before we dive into how investors and analysts have reacted as of late.
Copa Holdings Q1 Earnings Top Estimates
Copa Holdings 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.
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, reflecting strong regional demand.
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates review.
VGM Scores
Currently, Copa Holdings has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Copa Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Copa Holdings is part of the Zacks Transportation - Airline industry. Over the past month, Allegiant Travel (ALGT - Free Report) , a stock from the same industry, has gained 7%. The company reported its results for the quarter ended March 2026 more than a month ago.
Allegiant Travel reported revenues of $732.43 million in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.77 for the same period compares with $1.81 a year ago.
Allegiant Travel is expected to post a loss of $0.66 per share for the current quarter, representing a year-over-year change of -153.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -16.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Allegiant Travel. Also, the stock has a VGM Score of A.