Copa Holdings, S.A. (NYSE:CPA) is an airline company that started operations in 1947, and ever since, has been one of the leading airlines in the world. Based out of Panama City, Panama, Copa Airlines employs over 8,000 people, most of which come from the home state of Panama. Within the past year, Copa Holdings has gone through somewhat of a rough patch, but this shouldn't make you shy away.
The company offers over 320 flights daily to destinations in over 30 countries within Central, South, and North America. Since this airline company is located in such a condensed area in Central America, they can provide the best destination to destination service in ways that the competitors cannot.
The stock for this airline company has been all over the place within the past 52-week period. The high in that period reached $114.54 per share and the low was $40.39. So there is definitely some disparity here as to why someone would invest in a stock that has been similar to a roller coaster, but the stock has rebounded slightly since the start of 2016.
Even though the shares have been rebounding, there is a reason why the stock plummeted since the summer of 2015. The Venezuelan government has refused to pay $519 million to Copa, which is equivalent to half of the companies cash. The Venezuelan economy is dampened by complex foreign exchange controls that they will not take other countries' money. Ever since this withholding of Venezuela, Copa has declined flights to and from Venezuela as they try to move on from this debacle.
In fact, the company has been growing every year since it started in 1947. During the 1980s, Copa discontinued domestic flights and focused mainly on international. They bought themselves their first Boeing 747 and the rest is history. Expansion continued into the 90s when Copa Airlines started services in Argentina, Colombia, Chile, Ecuador, Peru and Mexico and all over Latin America. During the 2000s, Copa Airlines saw expansion into the United States, specifically Los Angeles. Their services were in other big cities like New York, Rio de Janeiro, Washington D.C. and even saw their IPO in December of 2005.
Quality is Key
Ever since 2001, Copa Holdings has been recognized by prestigious organizations for its hard work and continual development. In 2013, they were recognized as the "Best Airline in South America" and in 2014, was recognized as the "Top on-time airline in Latin America.
When you are traveling around the world, or even from one country to another, you want to be in the safest, best hands possible. This is where Copa Holdings come into play. From the actual pilots and flight attendants, to the CEO of the company, everyone gets noticed for providing the best service in Central and South America.
Buy Now at a Low Price
Considering where this stock was in the summer of 2015, the price of the stock in today's market is a bargain to say the least. Copa was trading as high as $160 per share and plummeted to as low as $39 per share. Considering the stock is trading at around $65 per share, there is a lot of room for improvement. This stock really has the potential to grow exponentially during the summer months. A big reason for this is the big boom in traveling during the summer months. People in America love traveling to the Central and Southern America for vacations with their family and friends, so there is a potential for volumes of people to travel with Copa Airlines.
Now Copa Holdings doesn't provide their service all over the United States, but they will start to pop-up all over the U.S. because of their overall great quality service. President Obama was the first president in nearly 88 years to visit the island of Cuba. This visit will open up market opportunities for different types of industries, including the airline industry. Copa Holdings is a great airline to share that opportunity with as the U.S. hopes to expand themselves. The President said this is not an overnight process, but a long-term one.
Copa Holdings is not a short-term solution to your stock portfolio. Copa can, however, be a long-term solution. The emergence of Cuba in the public market could play a huge role in the expansion of Copa Holdings Inc.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in CPA over the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.