Copa Airlines once again posted a strong set of results for Q1 2026 with margin performance among the best in the industry.

Operating margin came in at 24.6%, up from 23.8% in the same quarter last year. Revenue per available seat mile (RASM) was up 2.7% year-on-year (YoY) while total cost per available seat mile (CASM) was up 1.6%. Ex-fuel CASM declined by 1.0% compared to last year.

Stronger currencies in Latin America were a tailwind for revenue performance given that Copa Airlines generates a “higher percent of [its] traffic down south than in the other direction” according to Pedro Heilbron, Executive Chairman and CEO of Copa Holdings.

Operational performance was also industry-leading with 91.6% on-time performance and a 99.7% completion factor.

Higher fuel prices will, nevertheless, be a headwind going into the second quarter. Operating margin is expected to fall in the range of 8-12%. While that might still beat many airlines, the midpoint of the range is an eleven-point drop compared to 2Q25’s 21.0% operating margin.

Given that approximately 40% of Q2 was already sold prior to the rise in fuel prices, the airline expects to recapture 50% of higher fuel expenses in the second quarter. Recapture is projected to reach 100% by the end of the year.

Copa Airlines maintained its capacity guidance for full-year 2026 at 11-13% growth over 2025.

Industry-leading margin performance

The airline has delivered a remarkably consistent run of industry-leading operating margins with only one quarter since 2024 coming in under 20% (and even that was still 19.5%).

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