Copa Airlines is making a big push to attract U.S. customers.
Fresh off a big expansion in North America, the Panama-based carrier tells TPG it’s mulling a new cobranded credit card in the U.S. as it looks to make an even bigger splash in the market.
And don’t be surprised if the airline’s ConnectMiles loyalty program soon gains a major credit card transfer partner — a move that could offer travelers new ways to turn their credit card points into Star Alliance redemptions. It’s part of a larger push by the airline to up its loyalty game, all while staying true to its larger quest: funneling passengers through its Panama City “Hub of the Americas,” where travelers can connect to more Western Hemisphere destinations than most can name.
“We just stick to our formula. It’s worked,” Marco Ocando, Copa’s senior director of marketing, corporate communications and loyalty, said in an exclusive interview with TPG. “Many airlines have tried to replicate what we do. Some are in the process of failing at doing that.”
Focusing on the ‘fundamentals’
Copa’s connectivity across the Americas has long been its calling card.
While few global travelers would list the carrier among the world’s most premium, that’s partially by design: Inside the airline’s C-suite, executives have made it clear that offering a luxury experience on par with United Airlines’ Polaris cabin is far less vital to Copa’s success than maintaining its historically strong operational performance.
On time and under budget
In 2024, the airline turned in the best on-time rate of any carrier in Latin America, per Cirium. And through the years, Copa has produced an enviable track record for profitability.
That combination has executives convinced that the airline’s strongest path forward is to not blindly follow the premium wave that’s swept over the airline industry in recent years — one that’s seen a wide range of carriers add higher-end seats and swankier lounges.
“We don’t participate in that game,” Ocando said, offering a poignant sports metaphor. “It’s about the team that is focused on the fundamentals. Not flashy dunks or things like that.”
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Connecting the Americas
For Copa, those “fundamentals” instead include an expansive route map that, as of this fall, featured nonstop service to at least 86 cities from its Tocumen International Airport (PTY) hub.
Think about how Delta Air Lines filters connecting passengers through Atlanta or American Airlines through Charlotte. Copa does the same but via its de facto gateway between North and South America.
If you live on either continent, there’s a good chance Copa can get you to your destination with just one stop. Whether you’re hoping to ski in the Andes, tour Peru’s magnificent Machu Picchu or sip wine in Mendoza, Argentina, a one-stop itinerary is an option, whether you’re flying from New York or Raleigh, North Carolina.
“We connect secondary with secondary. We connect relatively small with small,” Pedro Heilbron, CEO of Copa Holdings and Copa Airlines, said while speaking to TPG from the carrier’s headquarters. “It’s a network that makes it easier to be connected.”
Easy connections … and stopovers
Emphasis on “easy.”
Because of the way Copa’s Panama City hub is set up, connections are a breeze compared to other major global airports.
Travelers passing through PTY don’t have to clear immigration or go through additional security; it feels as simple as a domestic connection in the U.S.
On the flip side, there’s a popular alternative for travelers hoping to get a taste of Panama beyond the airport.
Copa allows travelers passing through its home city to build a stopover of between one and seven days into their itinerary at no added cost — a way to tour the Panama Canal on your way to Buenos Aires, Argentina, or stroll the historic cobblestone Casco Viejo district before proceeding onward to Lima, Peru.
A deeper loyalty push
If there’s one area where Copa sees a major opportunity to grow and evolve, it likely surrounds its ConnectMiles loyalty program — especially as top competitors have turned their loyalty programs into cash cows.
Executives tell TPG that they’re actively exploring ways to reimagine the 10-year-old program, now nearing 5 million members.
“There’s a lot more opportunities for us to create more earn and redemption opportunities,” said Robert Carey, Copa’s executive vice president.
New cobranded credit card on the horizon?
One of those opportunities could come to U.S. customers in the form of a new cobranded credit card.
Copa executives acknowledged the airline is in talks to launch a U.S. credit card in the near future.
“That’s clearly a large market with some potential,” Carey said.
It’s a move that’s proved lucrative for plenty of other international airlines. Not to mention, it’s one Copa sees as a way to drive loyalty with its U.S. customer base.
Copa eyes credit card transfers to ConnectMiles
Significantly, Copa also confirmed it’s in talks to partner with a major transferable credit card rewards program.
Today, there’s no way to transfer flexible credit card points or miles from issuers like American Express, Capital One, Chase and Citi to Copa for a ConnectMiles redemption.
But that could soon change.
“As a matter of fact,” Ocando said, “We’re exploring, as we speak, in the U.S., opportunities to do that.”
It would be an intriguing development for points- and miles-savvy travelers.
In recent years, as many U.S. airlines have hiked redemption thresholds for award travel, international carriers’ loyalty programs have offered some of the highest-value redemptions — whether it’s Air France and KLM’s Flying Blue or Avianca’s LifeMiles.
That opens an opportunity for Copa, which still sets its miles prices via a fixed, predictable award chart instead of via dynamic pricing like many U.S. airlines.
And direct credit card transfers to Copa’s ConnectMiles could open a range of redemption sweet spots on partner flights across its network of Star Alliance partners.
Combined with new benefits the airline is eyeing, expect to see loyalty be one of the biggest avenues for change at the airline in the coming years.
“People are looking for alternatives different to those [programs] that are too complex,” Ocando said.
An eye on the future
Clearly, a lot of Copa’s future plans hinge on deepening loyalty and driving connectivity through its Panama hub.
That doesn’t mean the airline is ignoring the global airline industry’s march toward premium.
We should note: Copa does offer a lie-flat product on its Boeing 737 MAX 9s that operate its longest routes, including to the West Coast.
Meanwhile, the airline tells TPG it’s exploring onboard Wi-Fi for its planes, an inflight amenity that’s increasingly important to passengers.
“It’s just a matter of time [until the amenity is available on Copa flights],” Heilbron confirmed.
Copa also operates a half dozen lounges, including a beautiful outpost at its home base in Panama City.
At the same time, leaders argue these products — and those to come — will always be less core to the airline’s success than its network and operation.
And Copa is betting that clarity will keep its hub, and its formula, flying high.
“The way we’ve always done things is it’s about the numbers. It’s about what [really makes] sense. It’s not about the flashiest, newest, largest, coolest … whatever,” Heilbron said. “We’re trying to be very pragmatic about things. Not falling in love with stuff.”
