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Income taxes
 12 Months Ended
Dec. 31, 2025
Major components of tax expense (income) [abstract]  
Income taxes
22. Income taxes
202520242023
Current taxes expense -
Current period$(82,005)$(87,431)$(76,630)
Adjustment for prior period660 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
20252024202520242023
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 tax18,904 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 liability1,197 1,046 (151)1,043 597 
Lease Liability20,826 21,486 660 (2,515)(18,971)
Other provisions3,833 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 expense103,962 97,674 97,005 
Profit excluding income tax775,610 705,788 611,102 
Income taxes at Panamanian statutory rates25.0%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 Panama0.3%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 tax2.2%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 taxes13.4%$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.