Copa’s chief executive expresses little concern about fuel shortages, noting his airline sources most of its fuel from refineries in Mexico and the USA.
Copa Airlines handily beat profit expectations in the first quarter as strong demand outpaced rising fuel costs.
The Panama-based carrier reported a $259 million operating profit, or 24.6% operating margin, during a period that chief executive Pedro Heilbron says affirms the “strength and resilience” of the airline’s business model.
“We’re very comfortable that we can adjust to the business environment as needed,” Heilbron says. “We never roll the dice without a parachute.”
Higher oil prices since the US-Israel war against Iran began at the end of February cost Copa roughly $20 million in additional fuel expenses in the first quarter. Its average fuel cost per gallon increased 7.5% year on year to $2.73.
Copa forecasts an 80-90% year on year increase in fuel expenses, to as much as $4.18 per gallon, in the second quarter, finance chief Peter Donkersloot says. The airline anticipates recapturing roughly half that increase through higher revenues.
But Copa is unconcerned about fuel supplies as most of its fuel comes from refineries in the USA or Mexico, where availability has not been constrained by the closure of the Strait of Hormuz, says Heilbron.
“There are still very, very many unknowns,” he adds of the fuel situation, noting Copa is not changing its strategy at this point.
Asked whether fuel prices have altered the competitive environment in Latin America, Heilbron says Copa has not seen any material changes except for capacity removed with the collapse of Spirit Airlines on 2 May.
Copa plans to increase its capacity in 2026. The airline’s available seat miles increased 14% in the first quarter, year on year, with passenger revenue miles up 15%. It expects its capacity will jump another 16% year on year in the second quarter and increase 11-13% for all of 2026, compared to 2025.
The airline added Salvador in Brazil and Puerto Plata in the Dominican Republic to its network in January, and will resume flights to three cities in Venezuela — Barcelona, Barquisimeto and Valencia — in June after a two year hiatus, Cirium Diio schedules show.
Heilbron describes the demand environment as “strong” with little or no variance by region.
Copa will take delivery of eight Boeing 737 Max 8s in 2026, Heilbron says. Four of those have already arrived, with the balance due by the end of the year.
The first aircraft from Copa’s order in April for 40 737 Max are to begin arriving in 2030.
“This new order … reinforces our long-term growth strategy and assures that Copa’s Hub of the Americas continues to lead well into the next decade,” says Heilbron.
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