Panama City, Panama --- May 15, 2024. Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2024 (1Q24). The terms “Copa Holdings” and the “Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2023 (1Q23).

•Copa Holdings reported a net profit of US$176.1 million for 1Q24 or US$4.19 per share, a US$18.3 million increase compared to 1Q23 on an adjusted basis. These results include a negative impact of approximately US$44.0 million related to the grounding of 21 of the Company's Boeing 737 MAX 9 aircraft in January and exclude any compensation received from Boeing.

•Copa Holdings reported an operating profit of US$216.0 million and an operating margin of 24.2%, an increase of 11.8% and 1.9 percentage points, respectively, compared to 1Q23.

•Passenger traffic for 1Q24, measured in terms of revenue passenger miles (RPMs), increased by 7.1% compared to 1Q23 while capacity, measured in available seat miles (ASMs), increased by 8.0%. As a result, the load factor for the quarter decreased by 0.7 percentage points to 86.0% compared to 1Q23.

•Total revenues for 1Q24 increased 3.0% to US$893.5 million driven by an increase in passenger traffic. During the quarter, compared to 1Q23, passenger yields decreased by 3.8% to 14.0 cents, and revenue per available seat mile (RASM) decreased by 4.6% to 12.5 cents.

•Operating cost per available seat mile (CASM) decreased by 6.9% from 10.2 cents in 1Q23 to 9.5 cents in 1Q24, mainly driven by a decrease of 13.9% in the price of jet fuel, a decrease in maintenance, materials and repairs costs, and lower sales and distribution costs.

•CASM excluding fuel (Ex-fuel CASM) decreased by 2.0% in the quarter to 6.1 cents, when compared to 1Q23. Excluding the negative impact on costs and capacity of the partial grounding of the Company's 737 MAX 9 fleet in January, Copa Holdings would have reported an Ex-fuel CASM of approximately 5.8 cents for the quarter.

•The Company ended the quarter with approximately US$1.1 billion in cash, short-term and long-term investments, which represent 32% of the last twelve months’ revenues.

•By the end of 1Q24, the Company had executed approximately US$40 million of the US$200 million share repurchase program approved by the Board of Directors.

•The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion, while our Adjusted Net Debt to EBITDA ratio ended at 0.5 times.

•During the quarter, the Company purchased from lessors two Boeing 737-800 NG aircraft, which were part of its current fleet as operating leases.

•The Company ended the quarter with a consolidated fleet of 106 aircraft – 67 Boeing 737-800s, 29 Boeing 737 MAX 9s, 9 Boeing 737-700s, and 1 Boeing 737-800 freighter.

•During the first quarter, Cirium recognized Copa Airlines as the carrier with the highest on-time performance in Latin America. In fact, Copa Airlines’ on-time performance averaging above 90% for the quarter was the highest amongst all airlines in the Americas and one of the highest in the world.

•In April, the Company signed a confidential resolution with Boeing to cover the impact of the partial grounding of its Boeing 737 MAX 9 fleet in January. The value will be amortized through the depreciation and amortization line of our Income Statement.

•In May, the Company took delivery of two Boeing 737 MAX 9 aircraft, increasing its total fleet to 108 aircraft.

•Copa Holdings will make its second dividend payment of the year of US$1.61 per share on June 14, 2024, to all Class A and Class B shareholders on record as of May 31, 2024.

(1)Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures

Copa Holdings reported strong results for the first quarter of the year. Operating margin remained solid at 24.2% or 1.9 percentage points higher than in 1Q23, driven by a continued robust demand environment in the region and the Company's focus on maintaining low ex-fuel unit costs.

Operating revenues for 1Q24 increased 3.0% to US$893.5 million mainly driven by an increase in passenger traffic. Load factor for the quarter came in at 86.0% or 0.7 percentage points below 1Q23 on an 8.0% increase in capacity year over year, while yields came in at 14.0 cents or 3.8% lower than 1Q23. As a result, passenger revenues per ASM (PRASM) decreased 4.6% in the quarter to 12.1 cents and RASM decreased 4.6% to 12.5 cents, compared to 1Q23.

Operating expenses for 1Q24 increased by 0.5% to US$677.5 million mainly driven by the 8.0% increase in capacity, partially offset by lower fuel, maintenance, materials and repairs and sales and distribution costs. Aircraft fuel expenses decreased by 7.6% or $20.1 million compared to 1Q23, due to a 13.9% lower jet fuel price, partially offset by 7.9% more gallons consumed. Maintenance, materials and repairs expenses decreased by 36.4% mainly due to an adjustment in the provision related to leased aircraft and lower engine maintenance costs. And sales and distribution costs decreased by 9.6% due to higher penetration of direct sales and lower-cost travel agency channels. Consequently, cost per available seat mile (CASM) came in at 9.5 cents, a decrease of 6.9% compared to 1Q23, and costs excluding fuel (Ex-fuel CASM) came in at 6.1 cents, a 2.0% decrease when compared to the same period in 2023.

As a result, Copa Holdings reported an operating profit of US$216.0 million and a net profit of US$176.1 million for the quarter, an increase of US$22.8 million and US$18.3 million, respectively, when compared on an adjusted basis to 1Q23.

The Company continues to have a solid balance sheet as it closed the quarter with US$1.1 billion in cash, short-term and long-term investments, which represent 32% of the last twelve months’ revenues. Total debt at the end of 1Q24 amounted to US$1.7 billion, while our Adjusted Net Debt to EBITDA ratio continued at healthy levels at 0.5 times.

Copa Holdings’ first quarter results are the product of a solid and well-executed business model, which is built on operating the best and most convenient network for intra-Latin America travel from its Hub of the Americas® based on Panama’s advantageous geographic position, low unit costs, best on-time performance, and a strong balance sheet. Going forward, the Company expects to leverage its strong balance sheet, leading liquidity position, and low-cost base to continue strengthening its long-term competitive position by implementing initiatives that will further reinforce its network, product, and cost competitiveness.

For 2024, the Company is reaffirming its full-year operating margin outlook of 21% to 23% on a capacity growth in the range of 10%.

Factored into this outlook is a load factor of approximately 87%, unit revenues (RASM) of 12.0 cents, unit costs excluding fuel (Ex-Fuel CASM) in the range of 5.9 cents, and an all-in fuel price of US$2.85 per gallon.

Consolidated revenue for 1Q24 totaled US$893.5 million, a 3.0% or US$26.2 million increase from operating revenue of US$867.3 million in 1Q23, mainly driven by passenger revenue.

Passenger revenue totaled US$858.7 million, a 3.0% increase compared to the same period in 2023, mainly driven by a 7.1% year-over-year passenger traffic increase, partially offset by a 3.8% decrease in passenger yield and a 0.7 percentage point decrease in load factor. The first-quarter results are mostly comprised of flown passenger ticket revenue, passenger-related ancillary revenue, and unredeemed ticket revenue.

Cargo and mail revenue totaled US$21.9 million, a 5.8% decrease compared to the same period in 2023, due to lower cargo yields partially offset by higher volume.

Other operating revenue totaled US$12.8 million, a 28.4% increase year-over-year, mostly due to an increase in non-air ConnectMiles revenues.

Consolidated operating costs for 1Q24 increased by 0.5% compared to 1Q23 to US$677.5 million, driven by higher capacity, offset by lower fuel, maintenance, materials and repairs costs, and sales and distribution costs.

Fuel totaled US$245.4 million, a decrease of US$20.1 million or 7.6% compared to the same period in 2023, due to a 13.9% lower effective fuel price, partially offset by a 7.9% increase in fuel gallons consumed.

Wages, salaries, benefits, and other employee expenses totaled US$114.3 million, an 11.4% increase compared to the same period in 2023, driven by an increase in operational staff to support the originally planned capacity growth and cost of living salary adjustments.

Passenger servicing totaled US$29.7 million, a 45.6% increase compared to the same period in 2023. Not including the costs related to the grounding of the MAX 9, passenger servicing costs would have increased by 15.8%, driven mostly by an 11.5% increase in onboard passengers, as well as an upgrade in the Company’s onboard product offering.

Airport facilities and handling charges totaled US$60.3 million, a 19.5% increase compared to the same period in 2023, mostly related to a 10.1% increase in departures, changes in the mix of routes and higher airport and handling fees in certain countries.

Sales and distribution totaled US$55.5 million, a 9.6% decrease compared to the same period in 2023, due to a reduction in the Company’s distribution costs as a result of higher penetration of both direct sales and lower-cost travel agency channels.

Maintenance, materials, and repairs totaled US$25.6 million, a 36.4% decrease compared to the same period in 2023, mainly due to an adjustment in the provision related to leased aircraft return conditions of two leased airplanes that the Company purchased and lower engine maintenance costs, partially offset by higher costs related to materials consumption driven by an increase of 6.7% in flight hours.

Depreciation and amortization totaled US$83.4 million, a 14.7% increase compared to the same period in 2023, mostly related to additional aircraft and maintenance events amortization.

Flight operations totaled US$31.0 million, a 13.1% increase compared to the same period in 2023, driven by an increase of 7.2% in block hours and higher overflight rates in certain countries.

Other operating and administrative expenses totaled US$32.3 million, a 2.9% decrease compared to the same period in 2023, mainly due to a decrease in engine rental expenses.

Consolidated non-operating income (expense) totaled a net US$(9.1) million in 1Q24.

Finance cost totaled US$(18.8) million, comprised of US$12.8 million related to loan interest expenses, US$4.1 million related to the discount rate associated with leased aircraft charges, and US$1.9 million in interest charges related to operating leases.

Finance income totaled US$13.7 million in proceeds from investments.

Gain (loss) on foreign currency fluctuations totaled US$(3.9) million, mainly driven by the depreciation of the Brazilian real and Argentine peso.

Other non-operating income (expense) totaled US$(0.1) million in 1Q24.

Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information visit: www.copaair.com.

CONTACT: Copa Holdings S.A.

Ph: 011 507 304-2774

www.copaair.com (IR section)

Copa Holdings, S. A. and Subsidiaries