Copa Q2 2025 Earnings Report

Copa EPS Results

• Actual EPS: $3.61
• Consensus EPS: $3.25
• Beat/Miss: Beat by +$0.36
• One Year Ago EPS: $2.88

Copa Revenue Results

• Actual Revenue: $842.60 million
• Expected Revenue: $833.12 million
• Beat/Miss: Beat by +$9.48 million
• YoY Revenue Growth: +2.80%

Copa Announcement Details

• Quarter: Q2 2025
• Date: 8/6/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 11:00AM ET

Copa (NYSE:CPA), through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 375 daily scheduled flights to 82 destinations in 32 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 31, 2023, it operated a fleet of 106 aircraft comprising 76 Boeing 737-Next Generation aircraft, 29 Boeing 737 MAX 9 aircraft, and one Boeing 737-800 Boeing Converted Freighter. The company was founded in 1947 and is based in Panama City, Panama.

Copa Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Copa reported 21% operating margin and $149 M net profit, up 25% in EPS to $3.61 per share.
• Negative Sentiment: Passenger yields fell 4.1% and RASM declined 2.8%, signaling revenue pressure in a competitive market.
• Positive Sentiment: Ended Q2 with $1.4 B cash and 42 unencumbered aircraft, keeping net debt/EBITDA at a conservative 0.6× for financial flexibility.
• Positive Sentiment: Added 3 Boeing 737 MAX 8 deliveries, on track for a 125-aircraft fleet by year-end and announced eight new or returning destinations.
• Positive Sentiment: Reaffirmed 2025 guidance of 21–23% operating margin and 7–8% ASM growth, backed by healthy demand and cost discipline.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by. Welcome to the Copas Holdings Second Quarter Earnings Call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this call is being webcast and recorded, 08/07/2025.

[Operator]

I will now turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

[Daniel Tapia, Director - IR at Copa Holdings]

Thank you, James, and welcome everyone to our second quarter earnings call. Joining me today are Pedro Heldron, CEO of Copa Holdings and Peter Dunkershoek, our CFO. Pedro will begin with an overview of our second quarter highlights, followed by Peter, who will walk us through the financial results. After that, we'll open the call for questions from analysts. Copa Holdings financial reports have been prepared in accordance with International Financial Reporting Standards.

[Daniel Tapia, Director - IR at Copa Holdings]

In today's call, we will discuss non IFRS financial measures, which are reconciled to IFRS measures in our earnings release available on our website, copaair.com. Our discussion today will also contain forward looking statements, not limited to historical facts that reflect the company's current beliefs, expectations and or intentions regarding future events and results. These forward looking statements involve risks and uncertainties that could cause actual results to differ materially and are based on assumptions subject to change. Many of these are discussed in our annual report filed with the SEC. With that, I'll turn the call over to our CEO, Mr. Pedro Hegron.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Thank you, Daniel. Good morning, everyone, and thank you for joining us. I'd like to begin by recognizing the outstanding efforts of our entire team. Their dedication and professionalism continue to be key behind Copa's success and our ability to deliver strong results quarter after quarter. We're pleased to report another strong quarter with a 21% operating margin and a 17.7% net margin, both among the best in the industry.

[Pedro Heilbron, Director & CEO at Copa Holdings]

These results underscore the strength and resilience of our business model, which combined with Copa's disciplined execution and cost leadership enable us to consistently deliver industry leading margins and solid financial results. Now, I'll go over the key highlights for the quarter. Capacity increased by 5.8% year over year. Load factor reached 87.3%, an increase of 0.5 percentage points compared to Q2 twenty twenty four. Passenger yields came in 4.1% lower year over year.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Unit revenues or RASM declined 2.8% to $0.01 $07 Unit cost or CASM decreased 4.6% to $0.85 while CASM excluding fuel increased 3.2% to $0.58 Operationally, Copa earnings once again delivered a world leading on time performance of 91.5% and a flight completion factor of 99.8%. Furthermore, Copa was recently recognized by Skytrax for the tenth consecutive year as the Best Airline in Central America and The Caribbean and received the award for Best Airline Staff in Central America and The Caribbean. I would like to take this opportunity to congratulate our more than 8,500 dedicated coworkers whose commitment to excellence enables us to consistently deliver a world class travel experience to our passengers. In terms of our network, we continue to expand our hub of The Americas in Panama with new service to San Diego, California and we restarted flights to Caracas. Further, we recently announced plans to start service at the end of the year to Los Cabos, Mexico and Puerto Plata, Dominican Republic as well as restart flights to Santiago De Caballeros, also in The Dominican Republic and Salvador Bahia in Brazil.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Together with our earlier announcements of service to Saltan to Cuman in Argentina in September, this brings to eight the total number of new and returning destinations announced so far this year, further strengthening our position as the most complete and convenient connecting hub for travel in The Americas. Going forward, we continue to see a healthy demand environment and remain focused on our competitive advantages, the best geographic position with our hub of The Americas in Panama, low unit cost and a strong balance sheet and a passenger friendly product with the best on time performance. These pillars continue to drive our ability to consistently deliver industry leading results. With that, I'll turn the call over to Peter, who will go over our financials in more detail.

[Peter Donkersloot, CFO at Copa Holdings]

Thank you, Pedro. Good morning, everyone, and thank you for joining our call today. I'd like to begin by echoing Pedro's appreciation for our team's continued commitment to delivering industry leading results. For the second quarter, we delivered a net profit of $149,000,000 or $3.61 per share, a 25% year over year increase in earnings per share. Operating income reached $177,000,000 and an industry leading operating margin of 21%, highlighting our ability to consistently generate strong profitability.

[Peter Donkersloot, CFO at Copa Holdings]

On the cost side, CASM decreased 4.6% year over year to $0.85 driven primarily by a 17% reduction in the average fuel price per gallon. CASM ex fuel came in at $0.58 an increase of 3.2% compared to the second quarter twenty twenty four, that consistent with our target for the year. This increase was mainly due to the non recurrent benefit recorded in the second quarter twenty twenty four in the maintenance materials and repair cost line associated with the return conditions of nine aircraft lease extensions. This was partially offset by the decline in sales and distribution expense driven by the continued successful execution of our NDC strategy and a reduction in passenger servicing costs, which reflects the year over year impact of the MAX nine grounding in 2024. On the balance sheet front, we ended the quarter with $1,400,000,000 in cash, short term and long term investments, representing 39% of last twelve month revenue.

[Peter Donkersloot, CFO at Copa Holdings]

This figure excludes over $600,000,000 in pre delivery deposits for future aircraft. Additionally, we currently have 42 unencumbered aircraft, accounting for more than a third of our fleet, further reinforcing our financial flexibility. Total debt stood at $2,100,000,000 entirely related to aircraft financing. Our adjusted net debt to EBITDA ratio remained at an under three leading 0.6 times and our average cost of debt continues to be highly competitive at 3.5%. With regards to the return of value to our shareholders, I'm pleased to announce that the company will make its third dividend payment of the year of $1.61 per share on September 15 to all shareholders of record as of August 29.

[Peter Donkersloot, CFO at Copa Holdings]

Regarding our fleet, during the quarter, we took delivery of three Boeing seven thirty seven MAX eight aircraft, bringing our total fleet to 115 aircraft. We remain on track to end twenty twenty five with a fleet of 125 aircraft and I'm pleased to share that we have secured financing for all of our 2025 deliveries. As for our 2025 outlook, we are reaffirming our full year operating margin guidance of 21% to 23% supported by a healthy demand environment and continued cost discipline. We also maintain our expectation for capacity growth in ASMs in the range of seven to 8% year over year. Our outlook is based on the following assumptions: load factor of approximately 87%, RASM of approximately zero one one two dollars ex fuel CASM of approximately $0.58 and an all in fuel price of $2.45 per gallon.

[Peter Donkersloot, CFO at Copa Holdings]

To finalize, we remain confident that our proven business model, robust balance sheet and disciplined execution give us a solid foundation to continue delivering consistent growth, strong financial results and industry leading margins. Thank you and we'll now open the call for questions from the analysts.

[Operator]

Thank you, and at this time, we will conduct a question and answer session. Our first question comes from Savi Syth from Raymond James. Go

[Savanthi Syth, Managing Director at Raymond James Financial]

ahead, Savi. Hey, good morning. Good morning, everyone.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Good morning, Sabi.

[Savanthi Syth, Managing Director at Raymond James Financial]

Hey, Pedro. I I I know you mentioned healthy demand environment, but I was wondering if you could talk a little bit about, you know, what you're seeing in some of your biggest point of sale markets and if there's any demand trends that stand out, good or bad, in any of the kind of particular markets or even passenger segments?

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes. Hi, Savi. In terms of if we think of load factors, we're increasing our load factor guidance and most markets have strong demand or at least steady demand. In some cases, yields are slightly down. Industry capacity in our region for the second half of the year, and industry includes all of us, of course, is growing in the high single digits.

[Pedro Heilbron, Director & CEO at Copa Holdings]

But we're still keeping up with load factors. And again, as mentioned, increasing our guidance there. And that applies to most all of the markets we're serving.

[Savanthi Syth, Managing Director at Raymond James Financial]

Got it. That's helpful. And don't know if this is for Peter or for you Pedro, but curious, you know, if you could share what you're seeing from Boeing. It seems like the aircraft are coming on time or early and just any early thoughts into kind of 2026 capacity.

[Pedro Heilbron, Director & CEO at Copa Holdings]

So far, our deliveries this year have been early. Every plane has come a week or two before what was projected or scheduled. Of course, everything is delayed if we go back to the original date, but they're delivering on time this year. Next year and we received, as Peter mentioned, three aircraft so far. So the other 10 are going to come in the last five months of the year.

[Pedro Heilbron, Director & CEO at Copa Holdings]

And next year, we have six deliveries, which will happen earlier, most are in the first half of the year. So we should expect that the bulk of the ASMs that we're going to have this year are going to have a full year a greater full year impact in 2026, plus the six additional planes next year. So capacity, we're not guiding for 2026 yet, but it would be trending a little bit higher than this year.

[Savanthi Syth, Managing Director at Raymond James Financial]

That's helpful. Thank you.

[Operator]

Thank you. Our next question comes from the line of Duane Pfennigwerth from Evercore ISI.

[Duane Pfennigwerth, Senior Managing Director - Equities at Evercore]

Hey, good morning. Maybe you could just remind us on FX, what the impacts are from a top line perspective, from a yield perspective and from a CASM perspective when we get a slightly weaker dollar? Maybe you could just remind us of that and any trends to call out in local currencies that you're seeing?

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes. So most of the major currencies in South America and in Latin America, including Mexico too, are up year over year and also up in the last six months and since the last quarter. You could call it weakness of the U. S. Dollar or it doesn't really matter much.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Most of our sales are south to north, so originate in the South. So we tend to benefit when the currencies in Latin America are stronger like the case now. But it's not a significant difference year over year. I mean, they're slightly up. So it's good, that's positive, but I wouldn't say that it's significant enough to make a huge difference.

[Peter Donkersloot, CFO at Copa Holdings]

And I would add on the cost side, of our costs are in US dollar based. Have our base, our main cost base in Panama, where we have fuel and all our salaries in U. S. Dollar based or most of our salaries in U. S.

[Peter Donkersloot, CFO at Copa Holdings]

Dollar based. So that won't necessarily affect us on the FX side and cost.

[Duane Pfennigwerth, Senior Managing Director - Equities at Evercore]

Got it. And then just for my follow-up, it's been a while since we've talked about it, but maybe just an update on airport capacity at PTY, any infrastructure projects that may be going on? And is there sufficient runway to support your growth plans 2026, 2027 and beyond? What's the next kind of marker we should be looking at there? Thank you.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes, definitely. The effort actually is right now working on an expansion plan, which includes work on both runways, repair work, but one runway will be extended, zero, three left. It also includes improvement to the taxiways and between ten and twelve additional gates to the new T2. This should all happen in the next three to four years. There's already a, let's say, pre work or pre plan by an international consultant.

[Pedro Heilbron, Director & CEO at Copa Holdings]

They have the funds earmarked for this project and are working closely with the airlines and civil aviation. So we see this moving ahead and it's going to give the airport, I think, another ten years at least of runway.

[Duane Pfennigwerth, Senior Managing Director - Equities at Evercore]

Okay. Thank you. Congrats on the strong results.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Thank you, Daniel.

[Operator]

Our next question comes from Guillaume Mendez from JPMorgan. Your line is open.

[Guilherme Mendes, Executive Director - Equity Research at JP Morgan]

Hey, everybody. Pedro, Peter, Daniel, thanks for taking my question. The first one is looking into 2026. Assuming that the industry continues to grow, let's say, by mid to high single digits into next year, is it fair to assume that yields can remain pretty much where they are right now? And the second point to Peter, it's on the buybacks.

[Guilherme Mendes, Executive Director - Equity Research at JP Morgan]

If you can update us on how much you have executed in the second quarter of the year and how much is left out of the $200,000,000 Thank you.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes. So I'll take your first question. So far, demand has been holding up and even though capacity has grown quite a bit in the last few years. But I should also mention that our yields in RASM has come down. It was lower it's been lower in 2025 versus 2024, and it was lower in 2024 than in 2023.

[Pedro Heilbron, Director & CEO at Copa Holdings]

So we've seen yields come down as demand has grown in our region. But at the same time, we have lowered our unit costs and made up for most of that. So we've been preparing for a long time, since ten years ago and also and especially after the pandemic to deliver strong results in a lower yield environment. And that's why we've been so focused on efficiencies, on costs. We have accomplished many of our goals and we're not stopping there.

[Pedro Heilbron, Director & CEO at Copa Holdings]

So we're confident that we can be successful even on, let's say, flat yields like we're seeing right now or even lower yields?

[Peter Donkersloot, CFO at Copa Holdings]

Hello, Guillermo. This is Peter here. So on the buybacks, as you stated, the board has approved a $200,000,000 program and we have executed to date around half of that program, including around $10,000,000 that we have executed year to date.

[Guilherme Mendes, Executive Director - Equity Research at JP Morgan]

Okay, very clear. Thank you both.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Thank you.

[Operator]

Our next question comes from Jens Sless from Morgan Stanley.

[Jens Spiess, Vice President at Morgan Stanley]

Hello. Thank you for taking my questions and congrats on the solid results. I just wanted to ask on your cargo business, which is doing continuing to do quite well. How do you see things going forward? Do you see any like slowdown in volumes due to like the higher like tariffs in general like tensions across the region? Or in reality, do you have visibility into that business or is it very limited like how much in advance basically you have visibility? Thank you.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yeah, well a few things. Yeah, we do not have visibility in the long term. It's pretty much short term. But I would also mention, yes, has been very strong in Q2 and the first half of the year. Most of our cargo moves in the belly of our passenger aircraft.

[Pedro Heilbron, Director & CEO at Copa Holdings]

So let's call it a slow risk cargo. It's not a bet we're making a very low risk and it's making the best of all of our capacity. We also operate one cargo aircraft, which is done very, very well, a seven thirty seven-eight 100 freighter. So we're bringing a second one this month. By the end of this month, we'll have a second seven thirty seven-eight 100 freighter.

[Pedro Heilbron, Director & CEO at Copa Holdings]

This one will be leased and operating leased. So that will also contribute to more cargo volume. But again, it will still be mostly moved in the belly of our passenger aircraft.

[Jens Spiess, Vice President at Morgan Stanley]

Okay, perfect. And just assuming that demand remains healthy, how much should we expect in terms of an increase in cargo with the new freighter? Thank you.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Not nothing, nothing really. It's just a single seven thirty seven-eight 100 freighter. So the change will not be significant. It's a bump off, but it will not it should not move the needle in a significant way.

[Jens Spiess, Vice President at Morgan Stanley]

Got it. All right. Thank you.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Thank you.

[Operator]

Our next question comes from Regiro Arjero from Bank of America.

[Rogerio Araujo, Director at Bank of America]

Yes. Hi, guys. Good morning. Congratulations on the results. I have a couple here.

[Rogerio Araujo, Director at Bank of America]

Number one, on fuel price, you were guiding one of the assumptions for the guidance is 2.45 per gallon. We estimate this implies a price around 4% higher than the current curve indicates. Does that make sense? Is the jet fuel price assuming in the guidance somewhat conservative? In other words, if it remains as it is, could there be upside risks to the margin guidance?

[Rogerio Araujo, Director at Bank of America]

That's number one. And number two, moving now to the second half of the year, could you provide an early view on the expected trend on CASM ex fuel looking ahead into 2026? And you've told that you've talked already about capacity and potential RASM. Any relevant expected change in margin levels or any trend you're seeing? Anything you could share with us would be great. Thank you.

[Peter Donkersloot, CFO at Copa Holdings]

Okay. Hello, Rohir. This is Peter here. I would start saying that the fuel curve that we embedded in our guidance is something that we don't update every day. So when we build our guidance, the fuel was around the two forty five that we embedded in our guidance.

[Peter Donkersloot, CFO at Copa Holdings]

Today, it might be slightly lower, but we don't update our fuel curve every day and to the best of our knowledge, that's the one we use to build our guidance. On the CASM ex fuels and cabins that we're seeing for the second half, I would say that we remain committed with a five eighty for the full year and we don't see any seasonality of the CASM ex fuel, it should be much pretty much flat across the fourth quarter, the fourth quarters. So we don't see a lot of seasonality and we still don't provide any guidance for the CASM ex fuel on 2026, but I can tell you that we're working on a lot of initiatives to as it's part of our DNA to always be very cost driven and focus on our costs to make sure we maintain our absolute and our competitive advantage on an absolute terms and on a relative terms on having a low CASM ex fuel. And on the RASM, I can actually tell you that we've been continuously seeing the similar trend that started in the second half of last year and we expect our RASM for the second half of this year to be similar to the second half of last year.

[Peter Donkersloot, CFO at Copa Holdings]

We see the trend to maintain similar with some markets behaving a little better, some markets are averaging around in the same neighborhood of second half last year. And that will be flat year on year and in line with our guidance of 11.2.

[Rogerio Araujo, Director at Bank of America]

Fair enough, very clear. Thank you so much.

[Operator]

Our next question comes from Michael Linenberg from Deutsche Bank.

[Michael Linenberg, MD & Senior Company Research Analyst at Deutsche Bank]

Oh, yes. Hey, good morning, everyone, and nice job this quarter. I want to go back to Savi's question just about demand strength and weakness across regions. We heard one of your competitors talk about Central America to The U. S.

[Michael Linenberg, MD & Senior Company Research Analyst at Deutsche Bank]

Being pretty weak. And I know it's not a market that you've historically been all that big in, but when I think about all the routes, all The U. S. Destinations you're adding to Panama, I'm sure, the utility of Central American passengers, of that hub is going up. But also domestic Colombia, because it looks like that the domestic Colombia market is doing much better now.

[Michael Linenberg, MD & Senior Company Research Analyst at Deutsche Bank]

So sort of how that features into Wingo's results. So Pedro, if you could go into a little bit more detail or color on that, that would be great.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes. So hi, Mike. So we don't share a lot of specifics, but I can comment on the two markets that you're mentioning. So Central America to U. S.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Received a lot of capacity in the past, let's say, the past two years, there's been a lot of growth in that market. Then we have the other issues, the immigration, visa issues on top. Luckily, it's not a huge market for us. We don't try nonstop Central America, U. S.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Connect through Panama, which is a little bit south of Central America. So it's not huge. But yes, Central America is one of our weaker markets right now. I would validate that. But again, not the most important market for us in that sense, especially at Flow.

[Pedro Heilbron, Director & CEO at Copa Holdings]

We're very strong Central America to South America and we're very strong Central America to The Caribbean. But to The U. That's not our number one strength. And yes, domestic Colombia is doing well and that has favored Wingo, no doubt.

[Michael Linenberg, MD & Senior Company Research Analyst at Deutsche Bank]

Great. And then just my second question Pedro, when I think about your positioning where you fly, there's not a lot of premium product offering. There may be one or two other carriers. I mean, sort of stand head and shoulders above your most of your competition. And to sort of borrow from Delta, they look at premium plus ancillary and they view that as their competitive mode.

[Michael Linenberg, MD & Senior Company Research Analyst at Deutsche Bank]

I think we're approaching 60% of their revenue falls into that premium ancillary bucket. As you build out cargo and you have a very meaningful premium product, you have lie flat on your MAX Where is the premium ancillary percentage today even in rough numbers? And where was that maybe five years ago? And aspirationally, where do you think you can take that? Because I truly believe that when we think about competitive moats, economic moats that premium plus ancillary is something where you can shine. Thanks for taking my question.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes. Thank you, Mike. You're totally right. We a premium product advantage in our network, definitely. And I'm talking mostly of this intra regional, intra Latin America narrow body network where we compete and where we have a leadership position, we now have also a premium product advantage, which we're learning to monetize.

[Pedro Heilbron, Director & CEO at Copa Holdings]

I mean, it's we're doing much better in ancillary revenues, in premium ancillary revenues like upgrade, for example, our frequent flyer program, seats premium economy, which we also have a nice premium economy across our fleet. And so every year, we're doing better than the previous year. We don't share specifics, but this year we're doing quite well and we see a lot of upside exactly in what you're saying for the reasons you're mentioning.

[Michael Linenberg, MD & Senior Company Research Analyst at Deutsche Bank]

Great. Thanks for taking my questions.

[Peter Donkersloot, CFO at Copa Holdings]

Thank you, Mike.

[Operator]

Our next question comes from Alberto Valero from UBS.

[Alberto Valerio, Executive Director at UBS Group]

Hi. Good morning, afternoon, Peter, Pedro. Thank you for taking my question. I would like if you can talk a little bit about competition. You mentioned that some tough markets and others a little bit better.

[Alberto Valerio, Executive Director at UBS Group]

Last time we spoke, we were talking about Argentina, maybe some new routes there. Brazil now, we shall do in chapter 11. LATAM with moderate growth. If you could talk a little bit about competition and the last one about Volaris, the partnership, the co chair with Volaris, if you can provide some update how you have been doing? Thank you very much.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Okay. Thank you, Alberto. So I won't mention other airlines. We don't give them free advertising for sure. But there has been a lot of capacity in our region, new capacity in the last two years, especially in the last two years and including 2025.

[Pedro Heilbron, Director & CEO at Copa Holdings]

As I mentioned, in the second half of the year, industry capacity is going to be up by about 9%. That includes Copa. Some NERLYNX, which I won't mention, have grown quite a bit. One in particular has grown a lot in our kind of markets in the intra Latin America region, and we've dealt with that successfully. Our load factors are up, and even though yields are slightly down as we have shared throughout the presentation and in the earnings release, we have also lowered our unit cost.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Of course, there's a good guy from fuel this year also. So we have a very well focused business model with the strongest product and better cost. So we're in an excellent position to continue competing successfully. In terms of culture with Volaris, well, Mexico is, of course, one of the largest I think it's like the third largest aviation market in all of The Americas, including The U. S, a very important market for us.

[Pedro Heilbron, Director & CEO at Copa Holdings]

We did not have a partner in Mexico. We now do with Volaris. It's a culture that will be will continue being developed and expanded. And we hope it's going to be very beneficial for both airlines. In our case, tying that very significant Mexican market to our network and then giving Volaris a Mexico feed from our very strong South American, Central American and Caribbean network.

[Alberto Valerio, Executive Director at UBS Group]

Perfect. Thank you very much.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Thank you.

[Operator]

Our final question comes from Tom Fitzgerald from TD Cohen.

[Tom Fitzgerald, VP - Equity Research at TD Cowen]

Thanks for the time. Just kind of going back to Mike's question, how do you view the role of technology or the role that technology can play in your revenue journey and like whether like dynamic pricing or better data analysis? Appreciate any color there.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes. So a few things there. Since the pandemic, we have invested quite a bit in digital technology. A lot of it actually homemade, which also not only gives us the right digital technologies we need, but also at much better cost, not on a per passenger or per booking basis, like our Internet booking engine, which now is where most of our sales come through, is Copa owned, homemade, our app, which is right now in some international contests competing as one of the five top apps in the world, going against really, really top airlines for the number one place that's also homemade. And that's allowing us to better develop our ancillary revenues.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Now in terms of, let's say, more sophisticated technologies that will allow for dynamic pricing, We work with third party providers. We work with some of the best third party providers. And I would say that we're in the in our infancy in terms of dynamic pricing and everything AI is going to provide for pricing in the future and revenue management. So we're not super developed there, but we're going that way, always in a very cost conscious, ROI focused way, which is the COPPA way.

[Tom Fitzgerald, VP - Equity Research at TD Cowen]

I appreciate that, Pedro. That's really helpful color. And then just as a follow-up, would you mind reminding us where you are in your seat densification journey? Thanks again for the time and congrats on the nice results.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Yes, thank you. Yes, we are not as advanced as where we should have been right now, and that's because of the delivery delays, which have made us postpone a little bit. But we have, I think, year to go out of our full fleet of 115 or so aircraft, we have 30 aircraft pending to take to 156 seats. So we have 30 aircraft pending in our densification project. And I should highlight that our densification project is not sacrificing any of the Comfort product advantages we have.

[Pedro Heilbron, Director & CEO at Copa Holdings]

We're maintaining a full, comfortable, real, real business class with real business class seats of 16 passenger. We're maintaining our four rows of premium economy with 34 pitch and then the rest of the cabin with very comfortable seats, recline, headrest, the whole thing. So we're not sacrificing that.

[Operator]

I am showing no further questions at this time. I would now like to turn it back to Pedro Hellbran for closing remarks.

[Pedro Heilbron, Director & CEO at Copa Holdings]

Okay. Thank you. Thank you, operator, and thank you, James. Thank you all for your questions and for participating in this call. We appreciate your continued interest and support as always.

[Pedro Heilbron, Director & CEO at Copa Holdings]

And hopefully very soon, we're going to be confirming an Investor Day date. It's going to be early, hopefully very early December in New York City. So stay tuned and have a great day.

[Operator]

Thank you for participating in today's conference. This does conclude the program. You may now disconnect.

Participants

Executives

• Daniel Tapia, Director - IR
• Pedro Heilbron, Director & CEO
• Peter Donkersloot, CFO

Analysts

• Savanthi Syth, Managing Director at Raymond James Financial
• Duane Pfennigwerth, Senior Managing Director - Equities at Evercore
• Guilherme Mendes, Executive Director - Equity Research at JP Morgan
• Jens Spiess, Vice President at Morgan Stanley
• Rogerio Araujo, Director at Bank of America
• Michael Linenberg, MD & Senior Company Research Analyst at Deutsche Bank
• Alberto Valerio, Executive Director at UBS Group
• Tom Fitzgerald, VP - Equity Research at TD Cowen