Financial Data and Key Metrics Changes - The company reported a net profit of $172.6 million for Q4 2025, representing a 5.3% increase in earnings per share compared to Q4 2024, with earnings per share at $4.18 [11] - Operating profit for the quarter was $209.6 million, resulting in an operating margin of 21.8% [11] - For the full year 2025, the net profit reached $671.6 million, or $16.28 per share, an 11.9% year-over-year increase [14] - Operating income for the full year was $819 million, an 8.8% increase year-over-year, with operating margins at 22.6% [14] Business Line Data and Key Metrics Changes - Capacity increased by 9.9% year-over-year in Q4, while passenger traffic rose by 10.1%, leading to a load factor increase of 0.2 percentage points to 86.4% [5] - For the full year, capacity in ASMs grew by 7.8%, and passenger traffic in RPMs increased by 8.6%, resulting in a load factor increase of 0.7 percentage points to 87% [6] Market Data and Key Metrics Changes - The company noted strong demand trends across the region, supported by healthy travel activity, which allows leveraging the advantages of its Hub of the Americas [8] - The company is experiencing improved demand and better yields due to stronger local currencies in South America [26] Company Strategy and Development Direction - The company plans to grow capacity by 11%-13% in 2026, with approximately half of this growth attributed to the full-year impact of capacity added in 2025 [8][18] - The company continues to expand its network, adding frequencies and new cities to its Hub of the Americas, reinforcing its competitive position [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth plan and the current demand environment, which supports expectations for strong margins in 2026 [8] - The company anticipates an operating margin within the range of 22%-24% for 2026, based on a load factor of approximately 87% and unit revenues of around 11.2 cents [18] Other Important Information - The company has a total cash, short-term, and long-term investments of $1.6 billion, representing 44% of last 12-month revenues [15] - The board of directors approved a quarterly dividend payment of $1.71 per share for 2026, with the first payment scheduled for March 13 [16] Q&A Session Summary Question: Impact of developments in Venezuela on demand - The company resumed flights to Venezuela and plans to gradually add capacity throughout 2026 [21] Question: Wi-Fi service provider selection - The company has chosen a provider for Wi-Fi service, with details to be announced in April [22] Question: Effects of stronger local currencies on demand - The company is seeing improved demand and better yields due to stronger currencies in South America [26] Question: Guidance on RASM despite increased capacity - Management explained that the guidance for flat RASM considers the full-year effect of growth in 2025 and additional frequencies in existing markets [30] Question: CASM ex-fuel guidance - Management indicated confidence in achieving a CASM ex-fuel of approximately 5.7 cents, supported by various cost-saving initiatives [34] Question: Buyback program status - The company has executed approximately half of the $200 million buyback program approved by the board [91] Question: Potential impact of Brazilian law on costs - Management noted that the suspension of law 400 in Brazil could lead to significant cost savings for the airline [95]

Core Insights - Copa Holdings reported revenue of $962.89 million for Q4 2025, a year-over-year increase of 9.8% and an EPS of $4.18 compared to $3.99 a year ago, but fell short of the Zacks Consensus Estimate of $967.63 million by 0.49% [1] - The company experienced an EPS surprise of -5.93%, with the consensus EPS estimate being $4.44 [1] Financial Performance Metrics - Load Factor was reported at 86.4%, slightly below the average estimate of 86.6% [4] - PRASM (Passenger revenue per ASM) was 10.7 cents, compared to the estimated 10.76 cents [4] - Yield was reported at 12.4 cents, against an estimate of 12.46 cents [4] - Average Price Per Fuel Gallon was $2.50, slightly above the estimate of $2.49 [4] - ASMs (Available seat miles) totaled 8.51 billion, compared to the estimated 8.53 billion [4] - CASM Excluding Fuel was 5.9 cents, close to the estimate of 5.92 cents [4] - CASM was reported at 8.8 cents, against an estimate of 8.83 cents [4] - RPMs (Revenue passenger miles) were 7.36 billion, slightly below the estimate of 7.37 billion [4] - RASM was reported at 11.3 cents, compared to the estimated 11.36 cents [4] - Fuel Gallons Consumed was 98.60 million gallons, below the estimate of 99.70 million gallons [4] - The total number of aircraft was 125, exceeding the estimate of 124 [4] - Operating Revenues from Passenger revenue were $913.62 million, compared to the average estimate of $917.82 million, reflecting a year-over-year change of +9.7% [4] Stock Performance - Shares of Copa Holdings have returned +17.8% over the past month, while the Zacks S&P 500 composite experienced a -0.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Copa Holdings reported quarterly earnings of $4.18 per share, missing the Zacks Consensus Estimate of $4.44 per share, but showing an increase from $3.99 per share a year ago, indicating a -5.93% earnings surprise [1] Financial Performance - The company posted revenues of $962.89 million for the quarter ended December 2025, which was 0.49% below the Zacks Consensus Estimate, compared to $877.05 million in the same quarter last year [2] - Over the last four quarters, Copa Holdings has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance - Copa Holdings shares have increased by approximately 27% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.4% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $4.95 for the coming quarter and $18.02 for the current fiscal year, alongside expected revenues of $998.71 million and $4.03 billion respectively [7] - The Zacks Rank for Copa Holdings is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Transportation - Airline industry, to which Copa Holdings belongs, is currently in the top 10% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Core Insights - Copa Holdings reported strong financial results for the fourth quarter and full year 2025, showcasing industry-leading profitability and operational excellence [1][5][10]. Fourth Quarter 2025 Highlights - Net profit reached US$172.6 million, or US$4.18 per share, marking a 5.3% year-over-year increase in earnings per share [5][11]. - Operating margin was 21.8% and net margin was 17.9%, reflecting a decrease of 1.4 and 1.0 percentage points compared to 4Q24 [5][11]. - Capacity, measured in available seat miles (ASMs), grew by 9.9% year-over-year [5][8]. - Revenue per available seat mile (RASM) was 11.3 cents, a decrease of 0.3% compared to 4Q24 [5][8]. - Operating cost per available seat mile (CASM) increased by 1.6% to 8.8 cents, while CASM excluding fuel rose by 0.7% to 5.9 cents [5][8]. - The company ended the quarter with approximately US$1.6 billion in cash and investments, representing 44% of the last twelve months' revenues [5][11]. Full Year 2025 Highlights - Net profit for the year was US$671.6 million, or US$16.28 per share, an 11.9% year-over-year increase [5][11]. - Operating margin improved to 22.6% and net margin to 18.6%, up 0.8 and 1.0 percentage points respectively compared to 2024 [5][11]. - Capacity grew by 7.8% year-over-year [5][8]. - RASM for the year was 11.2 cents, down 2.6% compared to 2024 [5][8]. - CASM decreased by 3.6% to 8.6 cents, while CASM excluding fuel decreased by 0.7% to 5.8 cents [5][8]. Operational Performance - Copa Airlines achieved an on-time performance of 89.0% for the quarter and 90.75% for the year, recognized as the most on-time airline in Latin America [5][11]. - The company took delivery of four Boeing 737 MAX 8 aircraft in 4Q25, ending the year with a total fleet of 125 aircraft [5][11]. Future Developments - The Board of Directors approved a quarterly dividend payment of US$1.71 per share for 2026, with the first payment scheduled for March 13, 2026 [5][11]. - The company announced plans to offer onboard Wi-Fi starting in October 2026 [5][11].

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Copa Holdings (CPA) - Copa Holdings currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Over the past week, CPA shares have increased by 12.97%, outperforming the Zacks Transportation - Airline industry, which rose by 5.76% [5] - In a longer timeframe, CPA's shares have risen by 17.75% over the past month, compared to the industry's 6.3% [5] - For the past quarter, CPA shares have gained 24.29%, and over the last year, they have increased by 71.11%, while the S&P 500 has only moved 1.86% and 15.7%, respectively [6] Trading Volume - The average 20-day trading volume for CPA is 372,078 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions show 1 upward revision and 2 downward revisions for the full year, with the consensus estimate increasing from $16.74 to $16.75 over the past 60 days [9] - For the next fiscal year, there has been 1 upward revision with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Copa Holdings is identified as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]

Copa Holdings - Copa Holdings, S.A. reported robust traffic numbers for January 2026, driven by high passenger volumes and upbeat air travel demand [1] - Revenue passenger miles (RPM) improved by 13.3% year over year in January 2026, indicating strong demand [2][7] - Available seat miles increased by 11.9% year over year, reflecting the company's efforts to match rising demand [2][7] - The load factor rose to 87.5% from 86.4% in January 2025, as traffic growth outpaced capacity expansion [2][7] Ryanair Holdings - Ryanair Holdings reported a 2% year-over-year increase in passengers transported, totaling 12.7 million in January 2026 [4] - The load factor for Ryanair remained stable at 91% in January 2026, indicating consistent demand for its services [4] - Ryanair's traffic grew by 9% to 183.7 million passengers in fiscal 2024, positioning it as the world's leading low-fare airline [5] - The airline expects its fiscal 2026 traffic to increase by 4% to 208 million passengers, up from a prior estimate of 207 million, due to strong demand and earlier Boeing deliveries [6]

Core Viewpoint - Copa Holdings, S.A. is expected to report strong quarterly earnings with an EPS of $4.40 and revenue of approximately $965.49 million, reflecting significant year-over-year growth driven by increased air-travel demand and expanded capacity [1][2]. Financial Performance - The anticipated EPS of $4.40 represents a 10.3% increase from the same quarter last year [2][6]. - Revenue is projected to reach $965.49 million, marking a 10.1% rise year-over-year [2][6]. Analyst Sentiment - There has been a slight downward revision of 0.6% in the consensus EPS estimate over the past 30 days, indicating cautious optimism among analysts [3]. - Despite rising operating costs, the Zacks Consensus Estimate for CPA's EPS has been revised upward by 1 cent over the past 60 days, reflecting positive sentiment [4][6]. Cost Challenges - Copa Holdings faces challenges with rising operating costs, expected to increase by 12.1% due to higher wages and airport charges [4]. Valuation Metrics - The company has a P/E ratio of 9.48 and a price-to-sales ratio of 1.79, suggesting a reasonable market valuation [5]. - A debt-to-equity ratio of 0.81 indicates a balanced approach to financing, while a current ratio of 1.06 shows the company's ability to meet short-term liabilities [5].

Core Viewpoint - Copa Holdings reported a significant increase in passenger traffic and capacity for January 2026, indicating strong demand recovery in the airline sector [1]. Group 1: Passenger Traffic Statistics - In January 2026, Copa Holdings' available seat miles (ASMs) reached 3,104.4 million, an increase of 11.9% compared to January 2025, which had 2,774.6 million ASMs [1]. - Revenue passenger miles (RPMs) for January 2026 were 2,716.0 million, reflecting a 13.3% increase from 2,396.2 million RPMs in January 2025 [1]. - The load factor for January 2026 was 87.5%, which is 1.1 percentage points higher than the 86.4% recorded in January 2025 [1]. Group 2: Company Overview - Copa Holdings is a prominent provider of passenger and cargo services in Latin America, serving countries across North, Central, and South America, as well as the Caribbean [2]. - The company operates through its subsidiaries, enhancing its service offerings in the region [2].

Core Viewpoint - Copa Holdings (CPA) is expected to report fourth-quarter 2025 results on February 11, with earnings per share (EPS) estimated at $4.40 and revenues at $965.49 million, indicating year-over-year growth of 10.3% and 10.1% respectively [1][2]. Financial Performance Estimates - The Zacks Consensus Estimate for CPA's revenues in 2025 is projected at $3.62 billion, reflecting a 5.1% year-over-year increase, while the EPS for 2025 is estimated at $16.71, indicating a growth of approximately 14.8% [2][3]. - In the trailing four quarters, CPA has consistently beaten earnings estimates, with an average surprise of 8.2% [4]. Earnings Whispers and Predictions - The current Earnings ESP for CPA is +1.06%, but the Zacks Rank is 4 (Sell), suggesting that an earnings beat is not anticipated for the fourth quarter [5]. - Factors contributing to the expected performance include increased air-travel demand and a projected 8% year-over-year growth in consolidated capacity for 2025, with an operating margin expected between 22-23% [6][7]. Revenue Breakdown - Passenger revenues are estimated to reach $900.3 million in the fourth quarter, up 8.9% from the previous year, while cargo and mail segment revenues are expected to increase by 18.1% to $34.2 million [8]. - Operating costs are projected to rise by 12.1% in the fourth quarter, driven by a 10.5% increase in wages and a 10.3% rise in airport facilities and handling charges [9].

Core Viewpoint - Copa Holdings (CPA) is expected to report a year-over-year increase in earnings and revenues for the quarter ended December 2025, with earnings projected at $4.40 per share, reflecting a +10.3% change, and revenues anticipated at $965.49 million, up 10.1% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for February 11, and the stock price may rise if the actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 0.62% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Copa Holdings is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.06% [12]. - Despite the positive Earnings ESP, the stock holds a Zacks Rank of 4, making it challenging to predict a definitive earnings beat [12]. Historical Performance - Copa Holdings has a history of beating consensus EPS estimates, having surpassed expectations in the last four quarters, including a +4.22% surprise in the most recent quarter [13][14]. Industry Context - In the broader airline industry, Frontier Group Holdings is expected to report a significant year-over-year decline in earnings of -60.9%, with an EPS estimate of $0.09 and revenues down 2.9% to $972.68 million [18][19]. - Frontier Group's consensus EPS estimate has been revised down by 12.8% over the last 30 days, and it currently has an Earnings ESP of -27.30% combined with a Zacks Rank of 4, indicating difficulty in predicting an earnings beat [19][20].