Copa Holdings, S.A.

Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings' fourth quarter earnings call. During the presentation, all participants will be in listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, you will have to press star 11 on your touchtone phone. As a reminder, this call is being webcast and recorded on February 12, 2026. Now I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Thank you, Marvin, and welcome everyone to our fourth quarter and full year earnings call. Joining me today are Mr. Pedro Hebron, CEO of Copa Holdings, and Peter Dunkersluth, our CFO. First, Pedro will go to our fourth quarter and full year highlights, followed by Peter, who will discuss our financial results in more detail. Immediately after, we will open the call for questions from analysts. As a reminder, COPPA holding financial reports have been prepared in accordance with international financial reporting standards. In today's call, we will discuss certain non-IFRS financial measures. A reconciliation of these measures to comparable IFRS measures can be found in our earnings release, which is available on our website. 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. Now I'd like to turn the call over to our CEO, Mr. Pedro Herrera.

Thank you, Daniel. Good morning and thank you for joining us for our fourth quarter earnings call. Before we begin, I want to recognize our more than 8,000 coworkers. Their hard work and commitment are fundamental to COPPA's strong operational performance and continued leadership in our industry. To them, as always, my sincere appreciation and respect. We delivered another quarter and full year of strong financial and operational results, reaffirming the strength of our business model and the structural advantage of operating the best position and most efficient hub for international travel in the Americas. Our results reflect strong demand trends across the region, continued discipline in our cost execution, and our relentless focus on operational excellence. As a testament to our operational performance, in January, Copa Airlines was recognized by Sirium for the 11th time as the most on-time airline in Latin America in 2025, with an on-time performance of 90.75%, the highest of any carrier in the Americas and the second best in the world. Once again, I want to recognize our Copa team. Without their commitment and dedication, it will not be possible to consistently deliver this level of excellence, which our customers expect from us. Now I'll go over our fourth quarter highlights. We increased capacity by 9.9% year over year, while passenger traffic increased by 10.1%. As a result, our load factor increased 0.2 percentage points to 86.4%. RASM came in at 11.3 cents, flat versus 4.24. We reported CASM of 8.8 cents and an ex-fuel CASM of 5.9 cents, a 1.6% and 0.7% year-over-year increase, respectively. Excluding a $7.2 million non-cash adjustment to the provision for future lease return obligations, extra cash for the quarter would have been $0.058. Operating margin came in at 21.8%. Excluding the non-cash maintenance adjustment, we would have reported an operating margin of 22.5%. Turning now to the main highlight for the full year 2025. Capacity in ASMs grew 7.8% year over year, while passenger traffic measured in RPMs increased by 8.6%. As a result, our load factor increased 0.7 percentage points to 87%. Unit revenues, or RASM, decreased 2.6% to 11.2 cents Unit costs for CASAM decreased 3.6% to 8.6 cents, and CASAM excluding fuel decreased 0.7% to 5.8 cents. And as mentioned before, we delivered full-year operating margin of 22.6%. Turning now to our network, between December and January, we started service from our Hub of the Americas in Panama, to Los Cabos, Mexico, Puerto Plata and Santiago in the Dominican Republic, Maracaibo in Venezuela, and Salvador Bahia in Brazil, further strengthening our position as the most complete and convenient connecting hub for travel within the Americas. Regarding our fleet, during the quarter we took delivery of four Boeing 737 Mach 8 aircraft and ended the year with a total of Earlier this year, Boeing updated the fleet delivery schedule for 2026, and we now anticipate adding eight Boeing 737 MAX 8s this year, and now expect to end the year with a total fleet of 133 aircraft. We continue to see a strong demand environment across our networks as we enter 2026. Booking trends remain solid, supported by healthy travel activities throughout the region, which allow us to leverage the advantages of our hub of the Americas. The current demand environment gives us confidence in our growth plan and reinforces the foundation for another year of strong margins in 2026. Consistent with the guidance shared in our earnings release, we expect to grow capacity in the range of 11 to 13 percent in the year. As detailed in December at our investor day, approximately half of the growth is the full year impact of capacity added in 2025, with an additional 40% coming from added frequencies in existing markets, and the remaining 10% from new destinations. To summarize, we delivered strong fourth quarter and full year results for 2025, Copa was recognized for the 11th time by Serium as the most on-time airline in Latin America and second best in the world. We continue to improve our already low and competitive cost structure, which remains a core pillar of our business model. We continue expanding our network, adding frequencies and new cities to our hub of the Americas. and we're well-positioned to deliver another year of profitable growth and strong margins in 2026. Now I'll turn the call over to Peter who will walk us through the financials in more detail.