Is Copa Holdings' Q3 Earnings Performance a Reason to Buy Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
0mins
Should l Buy LTM?
Source: NASDAQ.COM
Financial Performance: Copa Holdings reported a third-quarter 2025 EPS of $4.20, exceeding estimates, with revenues of $913.1 million reflecting a 6.8% year-over-year increase despite missing expectations slightly. Net profit rose 18.7% to $173.4 million, supported by strong operational metrics and fleet expansion.
Capacity and Demand Growth: The company anticipates an 8% growth in consolidated capacity for 2025, with a projected 11-13% increase for 2026. The load factor for the current year is expected to be 87%, indicating strong demand in the airline market.
Cost Challenges: Operating expenses increased by 2.9% year-over-year, driven by rising labor and distribution costs, which may impact future profitability and margin resilience despite capacity growth.
Investment Outlook: While Copa Holdings has shown strong performance, potential investors are advised to be cautious due to ongoing cost pressures. Existing shareholders may consider maintaining their positions, as the long-term prospects remain solid, reflected in a Zacks Rank #3 (Hold).
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Analyst Views on LTM
Wall Street analysts forecast LTM stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 61.230
Low
58.50
Averages
59.25
High
60.00
Current: 61.230
Low
58.50
Averages
59.25
High
60.00
About LTM
LATAM Airlines Group SA is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the Air transportation business and the Coalition and loyalty program Multiplus. It Air transportation segment corresponds to the route network for air transport. Its segment of Coalition and loyalty program called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. The Company operates a fleet of over 329 aircrafts. Its passenger aircrafts include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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