Copa Airlines looks at U.S. loyalty opportunities, ‘fundamentals’ not ‘flashy’ seats and technology
Copa Airlines is making a big push to attract U.S. customers.
The Panama-based airline, which just launched a major expansion in North America, told TPG it’s considering launching a new co-branded credit card in the U.S. as it looks to make a bigger splash in the market.
Don’t be surprised if the airline’s ConnectMiles loyalty program gains a major credit card transfer partner soon, a move that could give travelers new ways to convert credit card points into Star Alliance redemptions. It’s part of the airline’s larger effort to increase loyalty while staying true to its larger pursuit: flying passengers through its Panama City “Hub of the Americas,” where travelers can reach more Western Hemisphere destinations than most people can name.
“We’re just sticking to our model. It’s working,” Marco Ocando, Copa’s senior director of marketing, corporate communications and loyalty, told TPG in an exclusive interview. “A lot of airlines are trying to copy what we’re doing. Some airlines are failing to do that.”
Focus on “fundamentals”
Copa’s connectivity across the Americas has long been its calling card.
While few global travelers would rank the airline among the world’s most premium, that’s partly by design: Within the airline’s C-suite, executives have made it clear that offering a luxury experience on par with United’s Polaris cabins is far less important to Copa’s success than maintaining its historically strong operating performance.
On time and under budget
In 2024, the airline had the highest on-time performance of any airline in Latin America, according to Cirium. Over the years, Copa has built an enviable profit record.
That combination has convinced executives that the airline’s strongest path forward is no Blindly following the premium wave that has swept the airline industry in recent years – many airlines have added higher-end seats and fancier lounges.
“We’re not in that game,” Ocando said, offering a poignant sports metaphor. “This is about a team focused on fundamentals. Not flashy dunks or anything like that.”
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Connect America
For Copa, those “essentials” include an extensive route map that, as of this fall, features nonstop service to at least 86 cities from its Tocumen International Airport (PTY) hub.
Think of how Delta filters connecting passengers through Atlanta or American Airlines through Charlotte. Copa does the same thing, but through its de facto gateway between North and South America.
If you live on either continent, chances are Copa will get you to your destination in just one stop. Whether you want to ski in the Andes, visit Peru’s majestic Machu Picchu or taste wine in Mendoza, Argentina, there’s a one-stop itinerary for you, whether you’re traveling from New York or Raleigh, North Carolina.
“We connect secondary to secondary. We connect relatively small to smaller,” Copa Holdings and Copa Airlines CEO Pedro Heilbron told TPG at the airline’s headquarters. “It’s a network that makes it easier to connect.”
Convenient transfers…and stopovers
Emphasis on “easy”.
Because of the way the Panama City hub is set up, connecting flights is very convenient compared to other major airports around the world.
Travelers passing through PTY do not need to clear immigration or undergo additional security checks; it feels as easy as connecting within the United States
On the other hand, there is a popular option for travelers looking to experience Panama beyond the airport.
Copa allows travelers passing through their home city to stay between one and seven days on their itinerary at no extra cost—a way to cruise the Panama Canal on the way to Buenos Aires, Argentina, or wander the historic cobblestone Casco Viejo district before heading to Lima, Peru.
A deeper loyalty drive
If there’s one area where Copa sees significant opportunity for growth and development, it’s likely around its ConnectMiles loyalty program, especially as top competitors have turned their loyalty programs into cash cows.
Executives told TPG they are actively exploring ways to reimagine the 10-year-old program, which now has nearly 5 million members.
“We have more opportunities to create more opportunities to earn and redeem,” said Robert Carey, executive vice president of Copa.
New co-branded credit card coming soon?
One of those opportunities may come in the form of a new co-branded credit card for U.S. customers.
Copa executives acknowledged that the airline is in talks to launch a U.S. credit card in the near future.
“This is obviously a huge market with some potential,” Carey said.
The move has proven profitable for many other international airlines. Not to mention, Copa sees this as a way to increase the loyalty of its U.S. customer base.
Copa considers switching credit card transfers to ConnectMiles
Notably, Copa also confirmed it is in talks to partner on a major transferable credit card rewards program.
Today, it is not possible to transfer points or miles from flexible credit cards from issuers such as American Express, Capital One, Chase and Citi to Copa for ConnectMiles redemption.
But that may soon change.
“In fact,” Ocando said, “as we speak, we are exploring opportunities to do that in the United States.”
This will be an interesting development for points and miles-savvy travelers.
As many U.S. airlines have raised redemption thresholds for award travel in recent years, international airline loyalty programs have also offered some of the best value redemptions — whether it’s Air France and KLM’s Flying Blue or Avianca’s LifeMiles.
That presents an opportunity for Copa, which still sets mileage prices through a fixed, predictable award chart rather than through dynamic pricing like many U.S. airlines.
Direct credit card transfers to Copa’s ConnectMiles can open up a range of redemption sweet spots on partner flights across its Star Alliance partner network.
Combined with the airline’s focus on new benefits, loyalty is expected to be one of the biggest ways the airline will change in the coming years.
“People are looking for alternatives to these [programs] It’s so complicated,” Ocando said.
Focus on the future
Clearly, many of Copa’s future plans hinge on deepening loyalty and driving connectivity through the Panama hub.
That doesn’t mean the airline is ignoring the global aviation industry’s move toward premiumization.
We should note: Copa does offer a lie-flat product on the Boeing 737 MAX 9 it operates on its longest routes, including the West Coast.
Meanwhile, the airline told TPG it is exploring inflight Wi-Fi for its aircraft, an inflight amenity that is increasingly important to passengers.
“It’s just a matter of time [until the amenity is available on Copa flights],” confirmed Heilbrunn.
Copa also operates six lounges, including a beautiful outpost at its headquarters in Panama City.
At the same time, leaders believe these and upcoming products will never be as central to an airline’s success as its network and operations.
Copa is betting that transparency will keep its center and its formula flying high.
“The way we’ve always done things has been about numbers. What’s this about? [really makes] Feel. “It’s not the flashiest, newest, biggest, coolest…anything,” Heilbron said. “We try to be very pragmatic about things. We don’t fall in love with something.”
