2019 SUSTAINABILITY REPORT - Copa Airlines
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2019 SUSTAINABILITY
REPORT
SUSTAINABILITY REPORT COPA AIRLINES © 2019 Text Editing: TON!C Latam. Photography: All photographs that appear in this report belong to Copa Airlines. Scope: The purpose of this Report is to present to our different stakeholders the initiatives carried out by Copa Airlines, the progress achieved and challenges identified during 2019 in terms of Sustainability. For questions, doubts or suggestions regarding this report, please contact: comunicaciones@copaair.com Communication, Corporate Well-being and CSR Department Copa Airlines Torre N., Boulevard Costa del Este, Panama City, Panama +507 217-2672
SU S T A I N A B ILI T Y R E P O R T 2019
This digital version has some visual elements
that will help you navigate throughout the
document - the house icon will direct you to
the main index.
INDEX
A YEAR FILLED SUSTAINABILITY: SAFETY - OUR
5 WITH ACHIEVEMENT 20 TOGETHER, WE FLY HIGH! 43 COMMITMENT
WE ARE ETHICAL, WE ARE
7 FLYING HIGH IN 2020 24 COPA - GOVERNANCE 45 COMMITMENT
WE ARE COPA AIRLINES: MEMORABLE EXPERIENCES INSPIRING COMMUNITIES
9 ALWAYS ON-TIME! 28 FOR OUR PASSENGERS 51 TO REACH HIGHER
POSITIVE OUR TEAM - AT THE INTERNATIONAL
15 FINANCIAL RESULTS 34 HEART OF COPA 63 STANDARDS
On the other hand, the arrows located at the
bottom will take you to the previous chapter
(left arrow) or to the next chapter (right arrow).
In memory of the life of Mr. Ahmad Zamany, our Ex-Vice President of Technical Operations at Copa. We will remember him for being a visionary and passionate leader, who transformed us as both as a company and as human beings.
SU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
A YEAR
We are Copa Airlines:
always on-time!
Positive financial
results
FILLED WITH
Sustainability:
Together, we fly high!
We are ethical, we are
Copa - Governance
Memorable experiences
ACHIEVEMENT
for our passengers
Our team - At the
heart of Copa
Safety - our
commitment THANK YOU TO THOSE
A “greener” Copa WHO’VE MADE IT POSSIBLE
Inspiring communities
to reach higher
International
Standards
5
SU STAINABILITY REPORT 2019
OAG KAYAK.com
• Most Punctual Airline • Best Airline of the Year in
These accomplishments are not Tin the World Latin America
ours - they belong to the almost
10,000 Copa employees
A Year filled with achievement throughout the region, who, with
their commitment, have always
FLIGHTSTATS PANAMA IN
Flying high in 2020
taken us one step further. POSITIVE
• Most Punctual Airline in
We are Copa Airlines: • Nominated to Panama in
always on-time!
Latin America for the sixth
consecutive year Positive (Panamá en Positivo)
Positive financial
results
Sustainability:
Together, we fly high!
We are ethical, we are SKYTRAX 24 7 Wall St. Insightful
Copa - Governance
• Best Airline in Central America
Analysis and Commentary
Memorable experiences and the Caribbean
for our passengers • Best Airline Personnel in Central for U.S. and Global Equity
America and the Caribbean • Airline with fewer delays
Our team - At the
heart of Copa
Safety - our
commitment
A “greener” Copa APEX Official
Airline Ratings MONEY MAGAZINE
Inspiring communities • Recommended Latin American
to reach higher • "Five Star APEX 2020" Airline
airline for the second consecutive year
for its world class service
International
Standards
AMCHAM Learn more about
• Sustainable Leadership these recognitions here
6
SUS T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
FLYING
Positive financial
results
Sustainability:
Together, we fly high!
HIGH IN
We are ethical, we are
Copa - Governance
Memorable experiences
for our passengers
2020
Our team - At the
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
7
SU STAINABILITY REPORT 2019
OUR TEAM
ENVIRONMENT This year the results
showed the highest
THE SUSTAINABLE Since August 2018, when the solar
panels started operating, energy
percentage of
commitment in the
DEVELOPMENT
consumption has been
last 10 years: 85%,
reduced by 43%. which places us among the
GOALS WE TOUCH ON minus best in Latin America.
A Year filled with achievement 360 = 9,300
360 In 2019 we supported
tons trees
more than
Flying high in 2020 100 employees ON TIME!
in crisis situations. We closed with
We are Copa Airlines: a punctuality of
always on-time!
Positive financial
results
91.88%
an unprecedented event
Sustainability: COMMUNITY in the history of Copa,
Our PAC program,
Together, we fly high! “Collaborator Assistance and even in the region.
Program," was recognized as
We are ethical, we are Since its inception in October “Best Practice” in Amcham's
Copa - Governance 2014, ATA has graduated “Transformative Category 2019”.
a total of 51 technicians.
Memorable experiences We inaugurated the new
for our passengers Health Clinic and Lactation Room
With the 2019 Tech Ops Cup, in the Maintenance Hangar!
Our team - At the we have positively impacted
heart of Copa more than 10,000 children, PASSENGERS
3,500 patients, 4,500 young We signed the seven principles
Safety - our Panamanians and 7,500 families of women empowerment 99.82% of our flights
commitment in vulnerable conditions. of UN Women. had no cancellations.
987 passengers out
A “greener” Copa of every thousand
reach their connections.
Inspiring communities
to reach higher SAFETY This year we were able
to send electronic
notifications to inform
International 126 children participated This year we inaugurated 79% of our passengers of
Standards our Specialized Technical changes in flight itinerary,
in the “Viaje Inolvidable”
Maintenance Center! delays and cancellations.
(Unforgettable Journey).
5,723 hours of volunteer US$15 million invested.
work in Panama:
exceeding the goal of 4,500 We concentrate 90% of the ConnectMiles
hours per quarter. maintenance work in Panama.
We achieved during 2019
an income 7% above
Only 1,20 out of every
+19,000 total hours thousand suitcases arrives budget, thanks to the
of volunteer work. with some damage and 0,14 different alliances that we
suffers baggage looting. implemented throughout
the year.
8
SU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
WE ARE
Positive financial
results
Sustainability:
COPA
Together, we fly high!
We are ethical, we are
Copa - Governance
Memorable experiences
AIRLINES:
for our passengers
Our team - At the
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
ALWAYS ON TIME!
to reach higher
International
Standards
9
SU STAINABILITY REPORT 2019
For 71 years we have connected people and destinations across the Ameri-
can continent. We are motivated by the vision of taking our country higher,
strengthening our role as regional leaders in connectivity and logistics.
Day by day, our team makes it possible for distances to be shorter, which
is why we facilitate the transport of so many passengers, who for personal
A Year filled with achievement
or professional reasons, cross the skies of the continent.
Flying high in 2020
We are Copa Airlines:
always on-time!
Positive financial
results
In 2019,
Sustainability:
Together, we fly high!
We are ethical, we are
Copa - Governance
Memorable experiences we reached historic
for our passengers
punctuality figures, making
Our team - At the
heart of Copa us the most punctual airline
Safety - our in the world.
commitment
A “greener” Copa
Inspiring communities
to reach higher
We closed the year with
91,88%
International
Standards
in our punctuality indicator.
10SU STAINABILITY REPORT 2019
A Year filled with achievement Our vision is to be the leading airline in Latin
American aviation and the preferred
Flying high in 2020
connection for travelers from the continent
We are Copa Airlines:
always on-time!
through the Hub of the Americas. SEE MORE
Positive financial Therefore, we continuously work to expand profitably and continuing to strengthen our
results
Panama's connectivity to enhance its com- leadership position in aviation in the region,
Sustainability: mercial and tourist development. but also responsibly managing our impact on
Together, we fly high! the environment, supporting the growth of
We are ethical, we are To ensure that this vision becomes a reality, our human talent and contribute significantly
Copa - Governance we have set ourselves a sustainable develop- to the development of the country and the
ment path that not only involves growing communities in which we operate.
Memorable experiences
for our passengers
Our team - At the
heart of Copa
Safety - our 71 years of
commitment operations
A “greener” Copa
Inspiring communities
to reach higher 80 destinations
in 33 countries
International
Standards
Connecting people and
destinations in 1,330 airports
and across 192 countries
Signatories of
the Global Compact
11
since 2001SU STAINABILITY REPORT 2019
THE ROUTE TO SUCCESS:
Fly
OUR STRATEGIC to win
MANAGEMENT TOOL
"The Route to Success" is the name of our business strategy,
from here an action plan is derived that we review every year and
A Year filled with achievement in which we define our work pillars that indicate us way forward to
ensure that we are all working aligned towards the same objec-
Flying high in 2020 tives. Strengthening
our clients’
We are Copa Airlines: experience
always on-time!
Positive financial
results OUR VALUES IN ACTION
Sustainability:
Together, we fly high! Our first
commitment
We are ethical, we are
Copa - Governance is safety
Teamwork
Memorable experiences
for our passengers
We work as a team
and foster a positive
Our team - At the environment
heart of Copa
Safety - our
commitment
We anticipate and
A “greener” Copa exceed our client's Achieving
expectations competitive
Inspiring communities costs
to reach higher
International
Standards
We seek
continuous
improvement
We are honest
and upstanding
12
in all our actionsSU STAINABILITY REPORT 2019
2012
• We formally join Star Alliance’s
global network
1947 • COPA was born as Compañía
Panameña de Aviación, founded
by PANAM and Panamanian
investors. We started our operations
A Year filled with achievement with 3 Douglas c-4 aircraft.
Flying high in 2020
We are Copa Airlines: 2015 • We launched our own
always on-time!
loyalty program.
Positive financial • Order of 61 new Boeing 737,
results Max 8-9 and we received
1980 our 100th aircraft.
Sustainability:
• We withdrew from the
Together, we fly high!
domestic market to focus
We are ethical, we are on international flights.
Copa - Governance
Memorable experiences
for our passengers
Our team - At the 2018
• We received our first
heart of Copa
four Boeing 737 Max-9.
Safety - our • We were, once again, recognized
commitment
2005 as the region’s and the world’s
most punctual airline.
• Copa quotes in the
A “greener” Copa New York Stock Exchange.
• Acquisition of AeroRepublica
Inspiring communities and new Embraer 190 Aircraft.
to reach higher
International Maintenance Center.
Standards
• We were recognized as the WORLD’s
most punctual airline.
2011 • Expansion of the Hub
of the Americas to
2019 • We inaugurated our new Maintenance Center.
6 flight banks Know more about
Copa’s history here.
13SU STAINABILITY REPORT 2019
Boeing 737 MAX 9
Starting in 2019, our 737 MAX 9 will
fly to San Francisco, United States,
as the first route.
OUR FLEET • Copa Airlines has 6 of these aircraft.
16 seats in Business 24 seats in
We have one of the most modern fleets in the American continent. class Dreams Economy Extra
126 in the main cabin Technical details
In 2019, we were the first airline in the region to operate the On board entertainment
Boeing 737 MAX9 on long routes to South America and North
A Year filled with achievement America, however, the operation was temporarily suspended. Due
to this situation, the flights of this fleet were redistributed to the
Flying high in 2020
rest of our aircraft.
Boeing 737-800
We are Copa Airlines: 737 800A Model 737-800B Model
always on-time! • Copa Airlines has 32 of these aircraft. • Copa Airlines has 36 of these aircraft.
Positive financial
WE CONTINUE TO
STRENGTHEN OUR
16 seats in 16 seats in
144 in the main cabin 138 in the main cabin
results Business class Business class
Sustainability:
Together, we fly high!
DESTINATION NETWORK Technical details On board entertainment Technical details On board entertainment
We connect the continent, and we want to get closer and closer.
We are ethical, we are
Copa - Governance This year: rest of our aircraft.
Memorable experiences
for our passengers
We increased the daily flights
Our team - At the to Havana to eight.
heart of Copa
Boeing 737-700
Safety - our
• Copa Airlines has 28 of these aircraft. Boeing 737-700B
commitment • Copa Airlines Colombia has 1 of these aircraft. • Copa Airlines has 4 of these aircraft.
We added Suriname to our
A “greener” Copa extensive destination network, 12 seats in
112 in the main cabin
12 seats in
114 in the main cabin
Business class Business class
connecting it with 32 other
Inspiring communities countries on the continent.
to reach higher Technical details On board entertainment Technical details On board entertainment
International
Standards We opened new routes to
Barbados, Salvador de Bahia
and Fortaleza, in Brazil.
Embraer 190AR
We signed a new codeshare Embraer 190AR A Embraer 190AR B
• Copa Airlines has 12 of these aircraft. • Copa Airlines Colombia has 2 of these aircraft.
agreement with Air Europa.
10 seats in 12 seats in
84 in the main cabin 88 in the main cabin
Business class Business class
14
Technical details Technical detailsSU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
Positive financial
results
POSITIVE
Sustainability:
Together, we fly high!
We are ethical, we are
FINANCIAL
Copa - Governance
Memorable experiences
for our passengers
Our team - At the
RESULTS
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
15SU STAINABILITY REPORT 2019
A Year filled with achievement
Flying high in 2020
Even though this year we faced weaknesses in some South American
We are Copa Airlines: economies, mainly Argentina, and despite the operational suspension of
always on-time!
the Boeing 737MAX fleet, our financial results were quite positive, even
Positive financial consolidating themselves above the goal.
results
Sustainability:
This allowed us to meet our large financial commitments, including invest-
Together, we fly high! ments in fleet, maintenance, technology and future growth, ensuring the
sustainability and stability of the company in an increasingly competitive
We are ethical, we are
Copa - Governance
environment.
Memorable experiences This was also possible thanks to the fact that we maintain strategies to
for our passengers
efficiently manage our costs, which ensures that we are sustainable in the
Our team - At the long term.
heart of Copa
Safety - our
commitment Thus, we seek to implement
A “greener” Copa
initiatives to generate higher income
and protect our market share.
Inspiring communities
to reach higher
International
Standards
16SU STAINABILITY REPORT 2019
In 2019:
We implemented the GUI in 69 airports and 66 sales offices or CTOs, covering 92% of airports
and 95% of CTOs. The use of the GUI has positively impacted sales and the collection of addi-
tional revenue on seats and luggage.
A Year filled with achievement
We completed trials for the sale of preferred seats during the Web-Check in process, a step to
Flying high in 2020 continue generating additional revenue opportunities.
We are Copa Airlines:
always on-time!
Positive financial We made adjustments to current itineraries to optimize savings opportunities without affect-
results
ing income, achieving savings on hotel nights and parking costs that amount to 1.1 million
Sustainability: dollars.
Together, we fly high!
We are ethical, we are
Copa - Governance
We executed a project called SUB6, which seeks efficiencies to reduce our unit cost excluding
Memorable experiences
for our passengers fuel. Significant savings were achieved, through the generation of more than 100 savings
initiatives across the company, which will have a significant impact even in 2020.
Our team - At the
heart of Copa
Safety - our
commitment
A “greener” Copa Fuel is one of the items with the greatest impact on our company's costs, so significant efforts
have been made to reduce its consumption, also impacting our carbon footprint.
Inspiring communities
to reach higher
International
Standards
85.3% Unit
Rate: 1.3% Unit
Rate: 6.2%
of seats sold for each flight. above budget, with results it’s better below the goal due to the
17
than the goal n December and reduction in capacity given
better than the previous year in the the cancellations of flights in
three months of the quarter. our Boeing 737-MAX fleet.SU STAINABILITY REPORT 2019
Best low-cost airline in Latin America
A Year filled with achievement and the third best low-cost
airline in the world according to
Flying high in 2020
the 2019 KAYAK Travel Awards.
We are Copa Airlines:
always on-time!
Positive financial
results
AN ENGINE TO
Sustainability:
Together, we fly high!
BOOST TOURISM
We are ethical, we are
IN PANAMA.
Copa - Governance
The emergence of low-cost airlines more than 20 years
Memorable experiences ago prompted a strong transformation of the aviation
for our passengers 2019 was a very good year, landscape and their recent entry into the region is also
Our team - At the
the best of our having a major impact on the evolution of commercial
heart of Copa entire operation. aviation.
Safety - our
commitment Wingo is our low-cost brand launched in 2016, with the
aim of diversifying the commercial offer, serving a new
A “greener” Copa segment of travelers and responding to market
demands.
Inspiring communities
to reach higher
International
Standards
18SU STAINABILITY REPORT 2019
Three years ago we started
2019
operations with the first flight
we had 7% more
capacity versus 2018.
With all this additional capacity, we were able
A Year filled with achievement to increase the load factor of our aircraft by 87%,
around 2 percent points more than in 2018.
Flying high in 2020
This means that we managed to absorb all
We are Copa Airlines: that increased capacity in a very healthy way
always on-time!
and close 2019 as a profitable year, exceeding all
Positive financial the expectations of the company.
results
Sustainability:
Together, we fly high!
We are ethical, we are
Copa - Governance
We have bigger aircraft
Memorable experiences
In January, our fourth 737-800 aircraft
for our passengers (of 186 seats) arrived. This results in 32% more
capacity in 2020 versus 2019.
Our team - At the
heart of Copa
Safety - our
commitment
We incorporated the fifth aircraft 737-800. Based
A “greener” Copa in Panama, it will allow us to continue increasing
our presence in Colombia, whereto we already
Inspiring communities
to reach higher
have four flights: to Bogotá, Medellín, Cali,
Cartagena; and one to Cuba: Havana, which
International began operating in 2019.
Standards
We launched the option to change flights without
penalties to make the Wingo experience the best
for our passengers.
19SU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
SUSTAINABILITY:
Positive financial
results
TOGETHER,
Sustainability:
Together, we fly high!
We are ethical, we are
WE FLY
Copa - Governance
Memorable experiences
for our passengers
Our team - At the
HIGH
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
20SU STAINABILITY REPORT 2019
• Compliance
committee is responsible for reviewing the integrity of financial reports, the effectiveness of risk management systems, and compliance with laws, policies, and codes of ethics. Additionally, it is responsible for complaint and related
procedures anti-corruption measures
to accounting, • Ethics
auditing and transparency
and internal control matters. We have a compliance policy that establis
• Government relations and • Healthy competition
Ethical and regulatory requirements • Responsible marketing
responsible business • Economic and financial sustainability and communication
management • Sound corporate governance • Humanitarian support in catastrophes
• Regulatory changes • Responsible procurement
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
• Experience with service and products
always on-time! Customer
• Innovative and responsible products and services
Positive financial experience • Customer rights
results
Sustainability:
Together, we fly high!
Sustainability for Copa Airlines means managing
We are ethical, we are all our operations responsibly and efficiently, thus
Copa - Governance managing to offer the highest levels of service and
Memorable experiences
safety to our customers, guaranteeing the well-being
• Freedom of association and complaint mechanisms
for our passengers of our employees and maximizing our positive social Employee
• Employee training and development
impacts. development • Organizational culture and well-being
Our team - At the
heart of Copa and well-being • Corporate volunteering
We link each of the objectives of the sustainability
Safety - our strategy with those of the business, incorporating
commitment
them into processes and goals so that they become
part of the way in which we manage the company.
A “greener” Copa
Inspiring communities • Fleet development
to reach higher Operational • Employee health and well being
safety and • Privacy protection (consumers’ and data)
International efficiency • Process efficiency
Standards • Management of environmental impact
• Generation of local employment opportunities
Educational • Development of providers
strengthening • Educational strengthening of the community
• Local investment programs
21SU STAINABILITY REPORT 2019
to be followed in relation to non-compliance with the processes.
We support our Sustainability Strategy in
STRATEGIC PILLARS HOW WE DO IT? international standards:
• We expand our network adding new destinations and
A Year filled with achievement 17 Sustainable
seeking to optimize the routes where they are demanded.
Fly to win Development
• We operate our business with clients and suppliers in a
Flying high in 2020 responsible and ethical way. Goals
We are Copa Airlines:
always on-time!
• Our priority is to maintain maximum quality of service. 10 Principles of
Positive financial • We remain focused in satisfying our clients and earn their the UN Global
results loyalty by providing a combination of quality, competitive rates, Compact
Sustainability:
Strengthen punctuality, convenient flight schedules and a decrease in poorly
Together, we fly high! customer managed baggage.
experience • We fulfill the promise made to our clients with respect
We are ethical, we are and transparency.
Copa - Governance
• We provide accessible ways to communicate with us, 7 subjects of
Memorable experiences as well as how to evaluate our service. ISO 26000
for our passengers
Our team - At the
heart of Copa • We are committed to the well-being and development
of our employees and their families.
Safety - our • We continue promoting that our employees improve
commitment Team work
their operating and service indicators related to customer
satisfaction, by continuing our profits participation plan
A “greener” Copa
and recognition programs. This year we participated
Inspiring communities in CSR Week ("Semana de
to reach higher
la RSE") in Panama with the
• We are focused on keeping the company’s financial solidity.
International
Standards Achieve • We work on keeping our costs low by efficient aircraft
discussion "Reputation and
competitive costs use and employee productivity. Talent, variables that
• We conduct our business with efficiency while taking
care of the environment. boost business.”
22SU STAINABILITY REPORT 2019
FOCUSED ON
STRONG RELATIONSHIPS BUSINESS CONTINUITY
The relationship we build with our stakeholders is based on two Unforeseen events can cause the disruption of our business opera-
fundamental principles: integrity and honesty. Our goal is to maintain tions and can pose a danger to ensuring operations, growth and surviv-
A Year filled with achievement an open and transparent dialogue with them, identify opportunities al. For all these reasons, the strategic and tactical capacity of companies
and generate bonds of trust, which in turn helps us in making decisions. to plan and act in the event of incidents is essential in order to ensure
Flying high in 2020 “Business Continuity”. This capacity is known as “Business Continuity
Management” or BCM. We are responsible for implementing this vision
We are Copa Airlines: in our organizational DNA, so in 2019 we carried out some actions with
always on-time! this goal in mind:
Positive financial
results Employees
Sustainability:
Together, we fly high! Investors
We are ethical, we are
Copa - Governance We created an e-learning course for employees.
Memorable experiences
for our passengers Communities
Our team - At the
heart of Copa
Commercial We held the Business Continuity Week at Copa Airlines.
Safety - our Priority
commitment partners
Stakeholders Suppliers
A “greener” Copa
Inspiring communities
to reach higher We recognized those employees whose role
Clients Regulators
is fundamental in this purpose.
International
Standards
Trade unions We prepare for change with the Change Acceleration
Process methodology: thanks to which we will develop the
strategies and tools that serve to ensure the sustainability
of change in the organization and how to lead said change,
ensuring the team’s commitment.
23SU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
Positive financial
results
WE ARE ETHICAL,
Sustainability:
Together, we fly high!
We are ethical, we are
Copa - Governance
WE ARE COPA
Memorable experiences
for our passengers
Our team - At the
GOVERNANCE
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
24SU STAINABILITY REPORT 2019
Being Copa Airlines means the pride and commitment of
leaving your mark on each flight, in each decision, in each inter-
action, with each of our stakeholders. Our good governance
practices are set by the standards of the New York Stock
A Year filled with achievement Exchange, the principles of the Articles of Incorporation, the
guidelines of the US Securities and Exchange Commission and
Flying high in 2020 the guidelines of the National Securities Commission in Panama.
We are Copa Airlines: Our main governing body is the Board of Directors responsible
always on-time! for the supervision and control of the company's activity, with
Positive financial
exclusive competence over general policies and strategies. It is
results made up of eleven members of which four are independent.
Sustainability:
Together, we fly high!
We are ethical, we are
Copa - Governance
NAME ROLE
Memorable experiences
for our passengers General Director
Pedro Heilbron
Our team - At the
heart of Copa President and Director
Safety - our Álvaro Heilbron Director
commitment
Jaime Arias Director
A “greener” Copa
Ricardo Alberto Arias Director
Inspiring communities
to reach higher
Director
International
Standards John Gebo Director
José Castañeda Vélez Director
Roberto Artavia Loria Director
Andrew C. Levy Director
Josh Connor Director
25SU STAINABILITY REPORT 2019
-
Internal control is another of the basic pillars in the good governance model. This committee is responsible for
reviewing the integrity of financial reports, the effectiveness of risk management systems, and compliance with
laws, policies, and codes of ethics. Additionally, it is responsible for complaint procedures related to
accounting, auditing and internal control matters. We have a compliance policy that establishes the measures
THE AUDIT to be followed in relation to non-compliance with the processes.
COMMITTEE
Roberto Artavia, José Castañeda and Josh Connor, all non-executive and independent directors
A Year filled with achievement make up this committee, under the applicable rules of the New York Stock Exchange. The
Committee is chaired by Mr. Roberto Artavia.
Flying high in 2020
We are Copa Airlines:
always on-time! It is responsible for recommending criteria for the selection of new directors, supervising the evaluations of
the Board of Directors, its members and committees, and handling other matters that are specifically
Positive financial APPOINTMENTS delegated by the Board of Directors.
results One of the main responsibilities of the Board of AND CORPORATE
Directors is to analyze risks, including ethical, GOVERNANCE
Sustainability: social and environmental issues in the planning of COMMITTEE Ricardo Arias, Carlos A. Motta, Alvaro Heilbron and Roberto Artavia are the members of our
Together, we fly high! Appointment and Corporate Governance Committee, and Mr. Ricardo Arias is the President.
its activities, which, together with the search for
We are ethical, we are profitability, guarantees responsible projects and
Copa - Governance operations with the capacity to generate value in
Memorable experiences the long term.
for our passengers
To strengthen the Corporate Governance of the
Our team - At the
heart of Copa Company, the Board of Directors has four commit- Is responsible for the selection and evaluation process of all the company's management positions
tees, in charge of examining and monitoring areas (including the CEO). It also recommends the level of compensation and bonuses. Its members are
Safety - our
of special relevance: THE REMUNERATION non-executive directors of which, at least one, is an independent director.
commitment COMMITTEE
Stanley Motta, Jaime Arias and José Castañeda are the members of our Remuneration Committee,
A “greener” Copa
and Mr. Stanley Motta is the President.
Inspiring communities
to reach higher
International
Standards
Made up of experts in a specific area, it is structured according to the issues to be addressed. Its main
purpose is to advise the Board of Directors of the company on specific issues that may arise at specific
COMMITTEE OF
times. It consists of at least three members, although it varies according to needs.
INDEPENDENT
DIRECTORS
Roberto Artavia, José Castañeda and Josh Connor, all non-executive and independent directors
make up this committee, under the applicable rules of the New York Stock Exchange.
26SU STAINABILITY REPORT 2019
WE UPDATED OUR CODE
OF ETHICS AND BUSINESS CONDUCT
A Year filled with achievement
At Copa Airlines, we live our values in action and act in accordance
with our Code of Ethics and Business Conduct, a document that estab-
Flying high in 2020 lishes very clear principles and guidelines for the behaviors expected in
our company and by all of us who work directly or indirectly in it.
We are Copa Airlines:
always on-time!
In this new 2019 version, we updated nine subjects, including three with
Positive financial high impact for employees, our society and our company.
results
Sustainability:
Together, we fly high!
We are ethical, we are
Our employees participated
Copa - Governance
in an e-learning with which
Memorable experiences
for our passengers we took our ethical
Our team - At the commitment to all levels.
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
ETHICS COPA
International OFFICER ESCUCHA
Standards
The Committee and the Ethics Officer is responsible for It is a service that employees can use to report
ensuring compliance with this Code. The Ethics Officer any violation of laws, regulations and principles,
reports directly to the Executive President (CEO) and makes and do so with confidence and confidentiality.
periodic reports to the Copa Audit Committee regarding the
implementation and effectiveness of this Code, as well as
the policies and procedures put into practice to ensure
compliance with this.
27SUS T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
MEMORABLE
We are Copa Airlines:
always on-time!
Positive financial
results
EXPERIENCES
Sustainability:
Together, we fly high!
We are ethical, we are
FOR OUR
Copa - Governance
Memorable experiences
for our passengers
Our team - At the
PASSENGERS
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
28SU STAINABILITY REPORT 2019
We do better so that they prefer us,
that is why we take care of every detail
of the Copa experience.
A Year filled with achievement
Thus, we have strengthened our relationship with the millions of passen-
Flying high in 2020
gers who choose to fly with us. Punctuality is our main differentiator in
We are Copa Airlines:
the competitive aviation industry.
always on-time!
In 2019, we reached historical levels with an index of 91.88%, our airline
Positive financial
results
was recognized by different organizations as the most punctual in the
world.
Sustainability:
Together, we fly high!
We are ethical, we are Our highest promise of service is to
Copa - Governance
arrive on time and arrive safely!
Memorable experiences
for our passengers
Our team - At the
heart of Copa
Safety - our
99.82%
commitment of our flights had
no cancellations.
A “greener” Copa
This year we were able
Inspiring communities
to reach higher to send electronic
notifications to inform
987 passengers out of every thousand,
79%
International
Standards reach their connections.
of our passengers of
44.7%
is our NPS (Net Promoter
Score) - loyalty index of
our passengers. changes in flight itinerary,
delays and cancellations.
29SU STAINABILITY REPORT 2019
PRODUCTS AND SERVICES
OUR STRATEGY TO THAT MAKE A DIFFERENCE
STRENGTHEN OUR
CLIENTS' EXPERIENCE
Hub of the
Copa Courier
Americas
A Year filled with achievement
Flying high in 2020
We are Copa Airlines: Maintain the quality of our products
always on-time! and services, promoting satisfaction Club Copa Copa Cargo
Positive financial and loyalty in our clients.
results
Sustainability:
Together, we fly high!
We are ethical, we are
Meet our clients' expectations, Corporate
Copa - Governance Copa Show Pass
offering a safe and trustworthy Program
Memorable experiences service.
for our passengers
Our team - At the
heart of Copa
Safety - our
commitment Copa
PriceLock
Offer new tools to access our services. Conventions
A “greener” Copa
Inspiring communities
to reach higher
International
Standards Ensure competitiveness for the Hub Business Class,
Copa Vacations
of the Americas, reducing delays and Dreams
missed connections.
Learn more about
our services here.
30SU STAINABILITY REPORT 2019
WE RESPECT THE RIGHTS
Our commitment
OF OUR CLIENTS to the passenger
• All communications with our clients are subject to our transparency and Safe
truthfulness policy, which eliminates the fine print. This has allowed us to gain purchases
the trust of our clients. Likewise, our advertising activities are carried out in line SEE MORE
A Year filled with achievement
with Human Rights.
• To meet their requirements, we have different channels to channel our clients’ SEE MORE
Flying high in 2020 inquiries, claims and complaints. The team dedicated to attending to
communications from our clients uses a system that allows the management of
We are Copa Airlines: queues by agent and prioritization by type of client and situation, so that all
always on-time! clients are given attention in the shortest possible time, giving complete
answers and fair according to the situation that the client exposes.
Positive financial
results
• In addition, we carefully protect and make responsible use of our
Sustainability: clients' information, as specified in our Code of Ethics and Privacy
Together, we fly high! Policy. All information related to credit card purchases through the
website or the call center is only used to complete the specific
We are ethical, we are
Copa - Governance purchase for which the information was provided. We have no
claims related to issues of breach of confidentiality or leakage of
Memorable experiences customer data to third parties.
for our passengers
Our team - At the
heart of Copa
Safety - our
commitment
WE MEASURE THE
QUALITY OF OUR SERVICE
A “greener” Copa
We collect feedback data from more of our customers on a monthly basis
Inspiring communities to measure and improve our service. We have a dedicated voice of customer
to reach higher analysis team that collects these views on a daily basis using our customer
information sources, including:
International
Standards
Telephone Assistance Web Assistance Social Networks
Call Center in Panama Contact channel through We channel the requirements made
and Colombia. “Ask Ana”. via Twitter and Facebook.
31
Every day we work to improve our services for the benefit of our clients and we
carry out customer surveys after their trip ends.SU STAINABILITY REPORT 2019
IN 2019, WE JOIN • We were part of the Customer
Experience Week, an event that seeks
FORCES TO ALWAYS to reinforce the importance that such
loyalty represents for the sustainable
A Year filled with achievement
DO BETTER success of organizations.
Flying high in 2020
We are Copa Airlines:
always on-time!
Positive financial • We continue the implementation of CSS
results • To satisfy the nutritional, religious,
Airports and CSS Ventas in our stations,
ethnic, or other kind of need, we offer
Sustainability: which will allow Copa Airlines to offer
our clients a special in flight food
Together, we fly high! more efficient services to our
service.
passengers and friendlier tools for our
We are ethical, we are collaborators.
Copa - Governance
Memorable experiences
for our passengers
Our team - At the
heart of Copa
• We started a trial plan for the registration of our
Safety - our passengers at Tocumen International Airport in
• We implemented a trial plan to
commitment Panama. The main functions of these self-service
serve our clients through
kiosks are passenger, baggage check-in and
WhatsApp in Spanish.
A “greener” Copa boarding pass re-printing. The baggage check
function has a new technology that allows
Inspiring communities suitcases to be entered into the system quickly
to reach higher and easily.
International
Standards
• As Star Alliance members, we joined the
“Details Matters” campaign, an
• At the end of the year, we trained
initiative that seeks to focus on small
3,000 employees in the "Hearts,
details that make a big difference for
Minds and Hands" customer
passengers that fly in all member
service module.
airlines.
32SU STAINABILITY REPORT 2019
SEE MORE
CONNECTMILES
This is our frequent flyer program, which works with
a digital card, aligned with the company's efforts to
A Year filled with achievement reduce environmental impact.
Flying high in 2020
We are Copa Airlines: ALLIES
always on-time!
Positive financial We achieved during 2019
results
an income 7% above
Sustainability:
Together, we fly high! budget, thanks to the
We are ethical, we are different alliances that we
Copa - Governance
implemented throughout Banco Degusta
Memorable experiences
for our passengers the year. General Bac Promerica Panama:
in Costa Rica users earn miles when
Our team - At the and Guatemala, they make restaurant
heart of Copa reservations through
the page.
Safety - our
commitment
SEE MORE
A “greener” Copa
Inspiring communities
to reach higher
DONNATE MILES
International Donate Miles is a program through which our Con-
Standards
nectMiles members have the opportunity to share
their miles with the Obsequio de Vida and Make a
Wish foundations in Panama. The donated miles are
used to facilitate the movement of people with limit-
ed resources from Panama to any country in America
or outside the region (Copa destinations), where the
required medical attention is provided.
33SU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
Positive financial
results
Sustainability:
OUR TEAM
Together, we fly high!
We are ethical, we are
Copa - Governance
Memorable experiences
AT THE HEART
for our passengers
Our team - At the
heart of Copa
Safety - our
OF COPA
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
34SU STAINABILITY REPORT 2019
Our employees, year after year, make the experience of our passengers when flying with
us memorable, which makes possible for families to stay together, for people to enjoy the
wonders of the region, for communities to grow and develop, for businesses and profes-
sionals to prosper, and for human beings to benefit.
A Year filled with achievement
Always proud of the almost 10,000 people who make our mission possible, that
Flying high in 2020 is why we recognize the importance of each role, in any of the countries
where we operate.
We are Copa Airlines:
always on-time!
We know that we are united by a
Positive financial
results single route and that together we
Sustainability: all fly to the same destination.
Together, we fly high!
We are ethical, we are
Copa - Governance
7,803
Memorable experiences
for our passengers
Our team - At the
heart of Copa
Safety - our employees
commitment
A “greener” Copa
Inspiring communities
to reach higher
2,805 4,998
Female Male
International
Standards
113 women in Female Pilots: Women Aeronautical
management positions 23 Captain and 74 Co-pilots Technicians: 33 Aviation
Mechanics
SIPANAB: 2,028 UNPAC: 1,254
Employees in each of
35
the four unions SIELAS: 1,462 SITECMAP: 258SU STAINABILITY REPORT 2019
OUR STRATEGIC
WORK ENVIRONMENT AND
LINES
ORGANIZATIONAL COMMITMENT SURVEY
Every year we listen directly to our employees’ opinions in order to
A Year filled with achievement
continue working together to make our company the best place to
work.
Flying high in 2020
Maintain Copa as one of
the best places to work. This year, results showed the highest percentage of commitment in the
We are Copa Airlines: last 10 years:
always on-time!
Positive financial
results
Sustainability:
Together, we fly high!
We are ethical, we are
Copa - Governance
Establish concrete work
plans per area, based on
Memorable experiences the climate survey.
85%,
for our passengers Work Environment: Leadership:
Our team - At the
heart of Copa
which places us
among the best in
79% 68%
Safety - our Latin America.
commitment
A “greener” Copa Strengthen the
development of
Inspiring communities our leaders.
to reach higher
International
Standards
By 2020, we will continue working to strengthen ourselves as a compa-
ny, especially our leadership, focused on active listening and the
well-being of our people.
36SU STAINABILITY REPORT 2019
A Year filled with achievement
Flying high in 2020
In 2019, we adhered to the
We are Copa Airlines:
always on-time!
Women's Empowerment
Positive financial
Principles (WEP's), an initiative
results promoted by UN Women and the
Sustainability:
Together, we fly high!
Global Compact, which commits
We are ethical, we are
us to provide equal opportunities
Copa - Governance to our employees as part of our
Memorable experiences
for our passengers
business culture.
Our team - At the TOGETHER,
heart of Copa
FOR GENDER EQUALITY
Safety - our
commitment We make sure to comply with an equality policy and
we will continue to commit ourselves to reducing the
A “greener” Copa gender differential in executive and managerial posi-
tions.
Inspiring communities
to reach higher
Our gender equality practices are not limited to our
International
employees, but rather we seek to implement initiatives
We have the
Standards aimed at clients, suppliers and stakeholders to further UNDP Gender
strengthen our commitment to gender equality. Equality Seal
“SiGenero”!
37SU STAINABILITY REPORT 2019
COMPREHENSIVE
WELL-BEING FOR OUR TEAM
Employee Assistance Program: Integral
TECHNOLOGY AT THE SERVICE Wellbeing, Healthy Companies
A Year filled with achievement OF OUR TALENT AT COPA The Employee Assistance Program (PAC, for its acronym in Spanish) is part of
the comprehensive wellness plan and aims to provide a timely response to the
Flying high in 2020
needs of our employees in contingency situations such as accidents, financial
We are Copa Airlines:
crises, health problems or family and social problems, ensuring effective support
always on-time! that allows them to prevent, mitigate or offset the possible consequences of
contingency situations.
Positive financial
results
WE UNIFIED THE CENTER FOR The PAC is structured around four main pillars:
Sustainability: HUMAN RESOURCES SERVICES
Together, we fly high!
Now our employees have a new Human
We are ethical, we are Resources Services Center that allows
Copa - Governance them to manage their benefits on a single
Memorable experiences platform.
for our passengers
Our team - At the Comprehensive Family and Personal
heart of Copa Accidents
Health Socialization Finance
Safety - our
commitment
QUERYX7
A “greener” Copa
2019
Our new payroll management system will In
Inspiring communities
allow us to communicate in a timely
to reach higher manner with our employees about issues
related to their compensation.
International
Standards
we supported more than 100
employees in crisis situations.
Our PAC “Collaborator Assistance
Program” was recognized as “Best
Practice” in Amcham's “Transformative
38
Category 2019”.SU STAINABILITY REPORT 2019
OTHER ACTIONS
A Year filled with achievement Education Family
• Free Virtual Courses (MOOCs - Massive • Talks for parents.
Flying high in 2020 Open Online Courses).
• Family and sports day:
• Finance workshop. more than 3,400 attendees.
We are Copa Airlines:
always on-time! • Online library. • Despega tu Verano 2019.
Positive financial • Annual Corporate Training Plan.
results
Sustainability:
Together, we fly high!
We are ethical, we are
Copa - Governance Sports Others
Memorable experiences • Softball Tournaments and Friendship Cup 2019. • Tickets to cultural events, which
for our passengers we call the Copa Free Pass.
• Soccer League “I Am Copa” 2019.
Our team - At the • Discounts in a variety of shops
• Volleyball Business League.
heart of Copa and restaurants.
• Men's soccer team.
Safety - our • Free airline tickets.
commitment • Functional training classes at our
• Discounts in other airlines and in
work locations.
national and international hotels.
A “greener” Copa
• Savings fund.
Inspiring communities
• Discounts on shipping and cargo.
to reach higher
• Agreement with banking entities to
International facilitate access to their products and services.
Standards
• Benefits trade shows.
39SU STAINABILITY REPORT 2019
HEALTH
We have an Occupational Health Department responsible for
programs designed to improve the physical integrity of our
team. In addition, we continue with occupational health initia-
tives, which we have implemented to promote a healthy
lifestyle in our employees:
A Year filled with achievement
Flying high in 2020 Prevention We inaugurated the
We are Copa Airlines: • Vaccination and blood donation sessions. new Health Clinic and
always on-time! • HIV testing.
• Health fairs.
Lactation Room in the
Positive financial
results
• Cancer prevention conference. Maintenance Hangar!
Sustainability: • Promotion of active breaks.
Together, we fly high!
• Talks about occupational health services.
We are ethical, we are • Healthy circuits in the areas.
Copa - Governance
• Prevention and recovery program for alcohol and drug use.
Memorable experiences
for our passengers
Our team - At the
heart of Copa
Medical Testing
Safety - our • Laboratory tests and hearing screening.
commitment
• Basic medical tests.
A “greener” Copa
Inspiring communities
to reach higher
International
Priority attention
Standards • Emergency medical care.
• Chronic disease control medical care (diabetes / Hypertension and others), common disease care.
• Occupational / occupational medicine care.
• Nutritional assessment.
• Counseling.
• Staff physician to attend minor health issues.
• Physiotherapy service for all our employee who need to undergo physical therapy and
have a previous evaluation of an orthopedic.
40SU STAINABILITY REPORT 2019
COPA LEADERSHIP
Our leader’s main commitment is to promote their growth
through development opportunities that may allow them to
acquire professional and personal skills to improve constantly.
A Year filled with achievement
Flying high in 2020
THESE ARE COPA LEADERS
We are Copa Airlines: We offer training and development opportunities for our company’s leaders, such as the
always on-time!
“Dialogue among leaders” initiative, that allows colleagues to share experiences and
Positive financial good practices on a day-to-day basis and the mentoring program that provides an
results individual space for leaders to develop skills with other managers of the organization.
Sustainability:
Together, we fly high! In 2019 the initial phase of the “Learning Journey” for In flight Managers was completed
We are ethical, we are
and LIFT, a Leadership Training program for our pilots, was started.
Copa - Governance
Memorable experiences
for our passengers
Our team - At the
heart of Copa COFFEE WITH THE LEADERS EMERGING LEADERS
AND QUALITY CIRCLES
Safety - our During 2019 we held more than 132 “Coffee with 52 employees completed their training period in the
commitment
Leaders” meetings and more than 62 Quality Circles, Emerging Leaders Program (ELP), which lasts for two
A “greener” Copa
where our leaders had the opportunity to share with years.
their teams, listening to suggestions and ideas to
Inspiring communities improve our processes and work areas.
to reach higher
International
Standards
LEAD, INSPIRE, FACILITATE “TIME" TRAINING
AND TRANSFORM PROGRAM It seeks to strengthen the prioritization and productiv-
With this we seek to strengthen the leadership and ity skills of our leaders, to apply them in personal and
customer service skills of our captains. professional life.
41SU STAINABILITY REPORT 2019
PROMOTING THE
A Year filled with achievement DEVELOPMENT OF TWO-WAY LABOR
OUR PILOTS COMMUNICATION RIGHTS
Flying high in 2020
All of our pilots participate in training partici-
pate in our training programs on a regular basis Communication with our employees is essential
We are Copa Airlines: COMPENSATION
always on-time! at our training center. to be aligned in the fulfillment of our objec- STRATEGY
tives. It also allows us to obtain comments and Our compensation strategy is based on a
Positive financial detect areas for improvement. Here are some
results profit sharing program that aims to retain the
of the most important lines of communication: best human capital and align the interests of
Sustainability:
Together, we fly high! We have a Continuous employees and shareholders.
Training program for our
We are ethical, we are
pilots.
Copa - Governance
• Quarterly talks with our CEO. FREEDOM OF ASSOCIATION
Memorable experiences
for our passengers • YoSoyCopa app. At Copa we have a long history of union rela-
tions. 65% of Copa Airlines employees are
We celebrated the third • Self-service kiosks in cafeterias.
Our team - At the unionized. We have eight internal union orga-
heart of Copa graduation ceremony • Intranet We are Copa. nizations: four covering employees in Panama
for 30 new Copa
Safety - our • Newsletter Copa Al Día. and four covering employees in Colombia. In
Airlines captains.
commitment addition, our employees are members of
• Newsletter Up to Date with CSR.
other unions in the different countries in
A “greener” Copa • Quarterly internal magazine with which we operate. The agreements are
We also have the the most outstanding news. constantly reviewed and renewed.
Inspiring communities
to reach higher
100% virtual “Loud &
Clear” English
International Program for Pilots.
Standards
42SU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
Positive financial
results
Sustainability:
Together, we fly high!
We are ethical, we are
SAFETYOUR
Copa - Governance
Memorable experiences
for our passengers
Our team - At the
COMMITMENT
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
43SU S T A I N A B ILI T Y R E P O R T 2019
We have full confidence in our maintenance, training and safety programs, as well as in
the ability of our pilots to fly safely. We are closely monitoring our operation and making
sure our programs are adapted and kept up-to-date with best practices.
From our headquarters in Panama, we operate our System Operations Control Center: the
A Year filled with achievement synergistic, logistical and statistical core of our operations. A group of multidisciplinary
specialists works there who daily cover the needs of the flights that we operate
Flying high in 2020
annually, and attend to all the eventualities that a flight may face: from sched-
ules, to the redirection of passengers by other routes, to guaranteeing
We are Copa Airlines: that they reach their destination safe and on time.
always on-time!
Positive financial
results This year we inaugurated our
Sustainability:
Together, we fly high!
Specialized Technical
We are ethical, we are
Maintenance Center!
Copa - Governance Investment: US $15 million
Memorable experiences
for our passengers
This new hangar expands our capacity to serve four aircraft
Our team - At the simultaneously, concentrating 90% of maintenance work in
heart of Copa
Panama.
Safety - our
commitment
We launched an awareness
A “greener” Copa
campaign against theft and
Inspiring communities
to reach higher
looting, reinforcing our culture
of honesty and integrity.
International
Standards
99.68% Only 1.20
of our flights do not have delays or out of every thousand suitcases
cancellations due to technical arrives with some damage and
problems at the time of departure. 0.14 suffers baggage looting.
44SU S T A I N A B ILI T Y R E P O R T 2019
A Year filled with achievement
Flying high in 2020
We are Copa Airlines:
always on-time!
Positive financial
results
GREENER
Sustainability:
Together, we fly high!
We are ethical, we are
A
Copa - Governance
COPA
Memorable experiences
for our passengers
Our team - At the
heart of Copa
Safety - our
commitment
A “greener” Copa
Inspiring communities
to reach higher
International
Standards
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