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Income taxes | 12 Months Ended
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Dec. 31, 2025
Major components of tax expense (income) [abstract] |
Income taxes | 22. Income taxes
| 2025 |  | 2024 |  | 2023
Current taxes expense - |  |  |  |  |
Current period | $ | (82,005) |  |  | $ | (87,431) |  |  | $ | (76,630) |
Adjustment for prior period | 660 |  |  | 263 |  |  | 18 |
| $ | (81,345) |  |  | $ | (87,168) |  |  | $ | (76,612) |
Deferred taxes expenses - |  |  |  |  |
Origination and reversal of temporary differences | (22,617) |  |  | (10,506) |  |  | (20,393) |
Total income tax | $ | (103,962) |  |  | $ | (97,674) |  |  | $ | (97,005) |
As of December 31, 2025, the Panamanian subsidiaries calculated income tax in accordance with the traditional method. In accordance with current tax regulations in Panama, income tax returns are subject to review by the tax authorities for up to the last three (3) years, including the period ending on December 31, 2025. During the years 2025 and 2024, deferred taxes expected to reverse in the next year have been measured using the effective rate applying for Copa Airlines (25%) and AeroRepública (35%). The balances of deferred taxes are as follows:
| Statement of financial position |  | Statement of profit or loss
| 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2023
Deferred tax liabilities |  |  |  |  |  |  |  |  |
Maintenance deposits | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (5,972) |  |  | $ | (5,973) |
Prepaid dividend tax | (59,217) |  |  | (36,992) |  |  | 22,225 |  |  | 6,008 |  |  | 25,183 |
Property and equipment | — |  |  | (300) |  |  | (300) |  |  | 689 |  |  | 555 |
Right of use assets | (17,772) |  |  | (18,900) |  |  | (1,128) |  |  | 1,764 |  |  | 17,136 |
Other | (1,132) |  |  | (4,495) |  |  | (3,363) |  |  | 3,110 |  |  | (353) |
Offsetting tax | 18,904 |  |  | 23,211 |  |  | 4,307 |  |  | (4,492) |  |  | (16,750) |
| $ | (59,217) |  |  | $ | (37,476) |  |  | $ | 21,741 |  |  | $ | 1,107 |  |  | $ | 19,798 |
Deferred tax assets |  |  |  |  |  |  |  |  |
Provision for return conditions | $ | 12,921 |  |  | $ | 11,140 |  |  | $ | (1,781) |  |  | $ | 381 |  |  | $ | (1,714) |
Air traffic liability | 1,197 |  |  | 1,046 |  |  | (151) |  |  | 1,043 |  |  | 597 |
Lease Liability | 20,826 |  |  | 21,486 |  |  | 660 |  |  | (2,515) |  |  | (18,971) |
Other provisions | 3,833 |  |  | 5,334 |  |  | 1,501 |  |  | (1,485) |  |  | (1,903) |
Tax loss | — |  |  | 4,954 |  |  | 4,954 |  |  | 7,483 |  |  | 5,836 |
Offsetting tax | (18,904) |  |  | (23,211) |  |  | (4,307) |  |  | 4,492 |  |  | 16,750 |
| $ | 19,873 |  |  | $ | 20,749 |  |  | $ | 876 |  |  | $ | 9,399 |  |  | $ | 595 |
| $ | (39,344) |  |  | $ | (16,727) |  |  | $ | 22,617 |  |  | $ | 10,506 |  |  | $ | 20,393 |
The Company has concluded that the deferred tax assets will be recoverable using the estimated future taxable income based on the approved business plans for Copa Airlines and AeroRepública. As of December 31, 2025, the deferred tax assets do not include any tax losses carried forward. As of December 31, 2024, the deferred tax assets included tax losses carried forward of $3.8 million for Copa Airlines and $1.1 million for AeroRepública . Reconciliation of the effective tax rate is as follows:
| Tax rate |  | 2025 |  | Tax rate |  | 2024 |  | Tax rate |  | 2023
Net profit |  |  | $ | 671,648 |  |  |  |  | $ | 608,114 |  |  |  |  | $ | 514,097 |
Total income tax expense |  |  | 103,962 |  |  |  |  | 97,674 |  |  |  |  | 97,005 |
Profit excluding income tax |  |  | 775,610 |  |  |  |  | 705,788 |  |  |  |  | 611,102 |
Income taxes at Panamanian statutory rates | 25.0 | % |  | 193,903 |  |  | 25.0 | % |  | 176,447 |  |  | 25.0 | % |  | 152,776 |
Stations - Taxable / Panama | (12.0 | %) |  | (93,413) |  |  | (15.2 | %) |  | (107,360) |  |  | (10.2 | %) |  | (62,113) |
Stations - Taxable / Non Panama | 0.3 | % |  | 2,672 |  |  | 0.6 | % |  | 4,163 |  |  | (0.7 | %) |  | (4,414) |
Stations - Non Taxable / Non Panama | (2.0 | %) |  | (15,326) |  |  | (1.0 | %) |  | (6,808) |  |  | (1.1 | %) |  | (6,483) |
Dividend tax | 2.2 | % |  | 16,786 |  |  | 4.5 | % |  | 31,495 |  |  | 2.8 | % |  | 17,257 |
Over provided in prior periods | (0.1 | %) |  | (660) |  |  | — | % |  | (263) |  |  | 0.0 | % |  | (18) |
Provision for income taxes | 13.4 | % |  | $ | 103,962 |  |  | 13.8 | % |  | $ | 97,674 |  |  | 15.9 | % |  | $ | 97,005 |
Global minimum tax On October 8, 2021, 136 countries, including Panama, reached an agreement on a two-pillar approach to international tax reform led by the OECD. Pillar One provides for a reallocation of taxing rights to market jurisdictions, while Pillar Two introduces the Global Anti-Base Erosion (“GloBE”) Rules, which are designed to ensure a minimum effective tax rate of 15% for multinational enterprise (“MNE”) groups. Pillar Two includes the Income Inclusion Rule (“IIR”), the Undertaxed Payments Rule (“UTPR”), the Qualified Domestic Minimum Top-up Tax (“QDMTT”) and the Subject to Tax Rule (“STTR”). Under IAS 12 Income Taxes, tax legislation is considered effective when enacted or substantively enacted in the relevant jurisdiction, and the Company continues to monitor developments in the jurisdictions in which it operates. Pillar Two legislation was enacted in Ireland on December 18, 2023. The IIR and QDMTT apply for fiscal years beginning on January 1, 2024, while the UTPR applies for fiscal years beginning on January 1, 2025. Although the IIR is effective in Ireland, it is not applicable to the Group, as the Group’s ultimate parent entity is located in Panama. Based on the information available as of December 31, 2025 and the nature and activities of the Company’s Irish entities, which primarily operate as special purpose vehicles with limited functional risks and do not generate significant net GloBE income, and taking into account the mechanics of the GloBE Rules, including relevant mitigating provisions, the Company has assessed the impact arising from the application of the QDMTT and UTPR in Ireland as not material. The application of the UTPR remains complex and subject to evolving interpretative guidance and differing implementation approaches across jurisdictions, which may affect the Company’s assessment in future periods. As of December 31, 2025, most of the entities operate in jurisdictions that have not yet enacted Pillar Two legislation. Panama, the jurisdiction of the Company’s ultimate parent entity, has not enacted legislation to implement the Global Minimum Top-up Tax as of December 31,2025. Consequently, the Company has not identified a material financial impact arising from the GloBE Rules on its consolidated financial statements as of that date. In accordance with the amendments to IAS 12, the Company applies the mandatory temporary exception and therefore does not recognize or disclose deferred tax assets or liabilities related to Pillar Two income taxes.

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