Market Capitalization $2.4 Billion. Sector: Industrials Sub-Industry: Airlines Source: S&P Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F August 7, 2016 HOLD HOLD RATING SINCE 07/31/2015 BUSINESS DESCRIPTION Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services in Latin America. It offers services within Colombia; and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala, and Costa Rica. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income NA EPS NA RETURN ON EQUITY (%) Ind Avg S&P 500 Q Q Q Sector: Industrials Sub-Industry: Airlines Source: S&P Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History BUY Volume in Millions HOLD COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History P/E COMPARISON RECOMMENDATION We rate () a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing nesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find nesses including disappointing return on equity, poor profit margins and deteriorating net income. n/m EPS ANALYSIS¹ ($) 7.17 Ind Avg S&P 500 HIGHLIGHTS After a year of stock price fluctuations, the net result is that 's price has not changed very much. Although its earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock. Q Q Q Q Q Q Q Q Q Q The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a debt-to-equity ratio, its quick ratio of 0.95 is somewhat and could be cause for future problems NA = not available NM = not meaningful Compustat fiscal year convention is used for all fundamental data items., with its decline in revenue, slightly underperformed the industry average of 6.1%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major ness within the corporation. Compared to other companies in the Airlines industry and the overall market, 's return on equity significantly trails that of both the industry average and the S&P 500. The gross profit margin for is currently extremely low, coming in at 13.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 11.02% trails that of the industry average. PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -30% 50% VLRS UNFAVORABLE 5% VA SKYW AVH EBITDA Margin (TTM) JBLU LFL HA FAVORABLE SAVE ALGT ALK 40% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $253.7 Million and $8 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -30% 50% UNFAVORABLE AVH -30% Earnings Yield (TTM) LFL FAVORABLE VLRS VA SAVE ALGT ALK JBLU SKYW HA 15% Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -20% and 41.9%. Companies with NA or NM values do not appear. INDUSTRY ANALYSIS The airline industry is comprised of companies engaged in air transportation of passengers and cargo. The major players can be classified in three broad categories: international, domestic, and regional carriers. Major airlines also provide aircraft maintenance, training, and repair services to other airlines. Customers can purchase individual seats or charter an entire aircraft for one way or round-trip travel. Some of the largest publically traded companies in this industry include Ryanair Holdings (RYAAY), Delta Air Lines (DAL), Southwest Airlines (LUV), United Continental Holdings (UAL), Alaska Air Group (ALK), JetBlue Airways (JBLU), and SkyWest (SKYW). National security risks and global terrorism are factors that affect industry operations. Rapid globalization, declining trade barriers and a growing mobile workforce are the primary drivers of industry growth. Mature markets such as Europe and North America offer little pricing power to companies. By increasing fees on services that used to be included in a ticket price, companies are supplementing revenue while competing on underlying ticket prices with the discount air carriers. One of the fees bringing in the largest revenue boost is from checked baggage. Other fees include charges for changing tickets, selecting specific seats, buying in-flight meals, bringing on a carry-on bag, pre-boarding with children, selecting seats with extra leg room, in-flight entertainment, Wi-Fi, and even a fee on some international flights to allow your baby to sit on your lap. International growth through acquisitions, joint ventures and alliances is the norm and is often crucial to the survival of airline companies as they link their flight booking systems to coordinate one-stop flight shopping. While more moderate of late, past fluctuations in fuel prices have added uncertainty to costs and profitability. Moreover, elevated fuel prices accelerate airplane retirements and accentuate the value of operating efficiencies that newer airplanes, like the Boeing Dreamliner. Growing realization of cargo s revenue potential is spurring passenger carriers to increase their focus on the cargo segment. In fact, some major Asian carriers already generate a majority of their revenues from cargo. Looking ahead, an improving US economy is tempered by unpredictable fuel prices and resultant surcharges that continue to inhibit profitability. Travelers may look at more economical transportation alternatives, like high gas mileage automobiles, which could lead to constriction of passenger revenue per available seat mile, a benchmark statistic for passenger airlines. PEER GROUP: Airlines Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) ,379 NM 2, ALK ALASKA AIR GROUP INC , , JBLU JETBLUE AIRWAYS CORP , , LFL LATAM AIRLINES GROUP SA ,883 NM 9, SAVE SPIRIT AIRLINES INC , , AVH AVIANCA HOLDINGS SA NM 4, VA VIRGIN AMERICA INC , , HA HAWAIIAN HOLDINGS INC , , ALGT ALLEGIANT TRAVEL CO , , VLRS CONTROLADORA VUELA COMPANI , , SKYW SKYWEST INC , , The peer group comparison is based on Major Airlines companies of comparable size. PAGE 2

3 COMPANY DESCRIPTION Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services in Latin America. It offers services within Colombia; and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala, and Costa Rica. The company offers approximately 360 daily scheduled flights among 73 destinations in 31 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 2015, it operated a fleet of 100 aircraft comprising 14 Boeing next generation aircraft, 63 Boeing next generation aircraft, and 23 Embraer 190 aircraft. The company has a strategic alliance with United Continental Holdings, Inc. Copa Holdings, S.A. was founded in 1947 and is based in Panama City, Panama. Boulevard Costa del Este Panama City PAN Phone: Employees: 9000 STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 1.0 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 10% of the stocks we rate. Total Return 1.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 20% of the companies we cover. Efficiency 2.0 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 30% of the companies we review. Price volatility 2.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 30% of the stocks we monitor. Solvency 3.5 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 60% of the companies we analyze. Income 4.0 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 70% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial FINANCIAL ANALYSIS 's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. COPA HOLDINGS SA has liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow Q3 FY E 2016(E) 5.10 E 2017(E) During the same period, stockholders' equity ("net worth") has decreased by 20.45% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future. INCOME STATEMENT Net Sales ($mil) EBITDA ($mil) EBIT ($mil) Net Income ($mil) STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) Total Assets ($mil) 3, , Total Debt ($mil) 1, , Equity ($mil) 1, , PROFITABILITY Gross Profit Margin 13.95% 15.42% EBITDA Margin 13.95% 15.41% Operating Margin 6.91% 9.13% Sales Turnover Return on Assets -6.12% 6.45% Return on Equity % 12.48% DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % NA NA Avg Daily Volume 576, ,455 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 7/31/2015. As of 8/4/2016, the stock was trading at a price of which is 2.0% below its 52-week high of $78.05 and 96.0% above its 52-week low of $ Year Chart BUY: $ HOLD: $75.53 $150 $100 $50 MOST RECENT RATINGS CHANGES Date Price Action From To 7/31/15 $75.53 Downgrade Buy Hold 8/4/14 $ No Change Buy Buy Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 8/4/2016) 39.87% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: VALUATION HOLD. This stock s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of The price-to-sales ratio is below the S&P 500 average, but well above the industry average. The valuation analysis reveals that, seems to be trading at a premium to investment alternatives within the industry. Price/Earnings NM Peers 7.17 Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. 's P/E is negative making this valuation measure meaningless. Price/Projected Earnings Peers Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. is trading at a significant premium to its peers. Price/Book 1.87 Peers 2.88 Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a significant discount to its peers. Price/Sales 1.51 Peers 1.01 Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a significant premium to its industry. DISCLAIMER: Price/CashFlow 8.07 Peers 4.73 Premium. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. is trading at a significant premium to its peers. Price to Earnings/Growth NA Peers 1.83 Neutral. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. Earnings Growth lower higher Peers Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, is expected to significantly trail its peers on the basis of its earnings growth rate. Sales Growth lower higher Peers 4.06 Lower. A sales growth rate that trails the industry implies that a company is losing market share. significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at PAGE 5