Copa Holdings Flying High Again On Market Recoveries And Internal Improvements

Economic troubles in key commodity-driven markets like Brazil, Colombia, and Venezuela certainly hurt Copa Holdings (NYSE:CPA) in the recent past, as the shares dropped around 75% from their peak in early 2014 to their low in the fall of 2015 and accompanied a 20% drop in revenue driven by weaker yields. Since those 2015 lows, though, investors have come back to these shares in a big way - the shares are within 15% of their prior peak (and up more than 50% so far this year) as yields have started to recover and the company has been expanding capacity.

There are a lot of positives that I see with Copa. The challenges in 2014-2016 forced the company's management to take a more critical look at their operations, and I believe efforts to control costs, improve revenue yield, and re-emphasize profitable expansion will pay off down the road. What's more, the company remains well-placed in a critical hub location (Panama's Tocumen airport) and continues to focus on low-traffic routes that don't lend themselves to profitable direct competition. Add in numerous future expansion opportunities and the recovery potential of Brazil and Colombia, and I believe Copa can look forward to strong growth for a number of years.

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Copa Holdings Flying High Again On Market Recoveries And Internal Improvements