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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2017 shares
Document Information [Line Items]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	CPA
Entity Registrant Name	COPA HOLDINGS, S.A.
Entity Central Index Key	0001345105
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Class A common stock [member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	31,185,641
Class B common stock [member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	10,938,125

Consolidated statement of financial position - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 238,792	$ 331,687
Investments	705,108	483,002
Accounts receivable	115,641	114,143
Expendable parts and supplies	81,825	74,502
Prepaid expenses	45,421	58,407
Other currents assets	11,701	7,650
Total current assets	1,198,488	1,069,391
Non - current assets
Investments	65,953	953
Accounts receivable	2,444	1,957
Prepaid expenses	26,130	26,398
Property and equipment	2,825,904	2,623,682
Net pension asset	3,185	8,826
Intangible assets	81,115	69,502
Deferred tax assets	18,572	18,339
Other non - current assets	31,140	27,065
Total non - current assets	3,054,443	2,776,722
Total assets	4,252,931	3,846,113
Current liabilities
Current maturities of long - term debt	298,462	222,718
Trade, other payables and financial liabilities	130,590	120,437
Air traffic liability	470,693	396,237
Frequent flyer deferred revenue	13,186	9,044
Taxes and interest payable	81,440	68,483
Accrued expenses payable	60,321	44,362
Income tax payable	3,700	1,401
Total current liabilities	1,058,392	862,682
Non - current liabilities
Long - term debt	876,119	961,414
Frequent flyer deferred revenue	33,115	26,324
Other long - term liabilities	123,182	108,448
Deferred tax liabilities	50,628	44,974
Total non - current liabilities	1,083,044	1,141,160
Total liabilities	2,141,436	2,003,842
Equity
Additional paid in capital	72,945	64,986
Treasury stock	(136,388)	(136,388)
Retained earnings	2,150,322	1,887,091
Accumulated other comprehensive loss	(3,888)	(1,872)
Total equity	2,111,495	1,842,271
Commitments and contingencies	0	0
Total liabilities and equity	4,252,931	3,846,113
Class A common stock [member]
Equity
Common stock	21,038	20,988
Total equity	21,038	20,988
Class B common stock [member]
Equity
Common stock	7,466	7,466
Total equity	$ 7,466	$ 7,466

Consolidated statement of financial position (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Class A common stock [member]
Common stock, shares issued	33,776,480	33,743,286
Common stock, shares outstanding	31,185,641	31,112,356
Class B common stock [member]
Common stock, shares issued	10,938,125	10,938,125
Common stock, shares outstanding	10,938,125	10,938,125
Common stock, no par value

Consolidated statement of profit or loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating revenue
Passenger revenue	$ 2,462,419	$ 2,155,167	$ 2,185,465
Cargo and mail revenue	55,290	53,989	56,738
Other operating revenue	9,847	12,696	11,507
Total operating revenue	2,527,556	2,221,852	2,253,710
Operating expenses
Fuel	572,746	528,996	603,760
Wages, salaries, benefits and other employees' expenses	415,147	370,190	373,631
Passenger servicing	99,447	86,329	84,327
Airport facilities and handling charges	171,040	159,771	148,078
Sales and distribution	200,413	193,984	188,961
Maintenance, materials and repairs	124,709	121,781	111,178
Depreciation and amortization	164,345	159,278	134,888
Flight operations	101,647	88,188	86,461
Aircraft rentals and other rentals	134,539	138,885	142,177
Cargo and courier expenses	7,375	6,099	6,471
Other Operating and administrative expenses	96,087	92,215	105,484
Total operating expenses	2,087,495	1,945,716	1,985,416
Operating profit	440,061	276,136	268,294
Non-operating income (expense)
Finance cost	(35,223)	(37,024)	(33,155)
Finance income	17,939	13,000	25,947
(Loss) Gain on foreign currency fluctuations	(5,218)	13,043	(440,097)
Net change in fair value of derivatives	2,801	111,642	(11,572)
Other non-operating expense	(2,337)	(3,982)	(1,632)
Total non - operating income (expense)	(22,038)	96,679	(460,509)
Profit (loss) before taxes	418,023	372,815	(192,215)
Income tax expense	(48,000)	(38,271)	(32,759)
Net profit (loss)	$ 370,023	$ 334,544	$ (224,974)
Earnings (loss) per share
Basic and diluted	$ 8.72	$ 7.90	$ (5.13)

Consolidated statement of comprehensive income (loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of comprehensive income [abstract]
Net profit (loss)	$ 370,023	$ 334,544	$ (224,974)
Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods -
Net change in fair value of derivative instrument			1,206
Other comprehensive income (loss) to be reclassified to profit or loss			1,206
Other comprehensive loss not to be reclassified to profit or loss in subsequent periods -
Remeasurement of actuarial loss, net of amortization	(2,016)	(1,104)	(2,212)
Other comprehensive loss not to be reclassified to profit or loss	(2,016)	(1,104)	(2,212)
Other comprehensive loss for the year, net of tax	(2,016)	(1,104)	(1,006)
Total comprehensive income (loss) for the year	$ 368,007	$ 333,440	$ (225,980)

Consolidated statement of changes in equity - USD ($) $ in Thousands	Total	Additional paid in capital [member]	Treasury stock [member]	Retained earnings [member]	Accumulated other comprehensive income (loss) [member]	Class A common stock [member]	Class B common stock [member]
Beginning balance at Dec. 31, 2014	$ 2,075,108	$ 53,486	$ (18,426)	$ 2,011,485	$ 238	$ 20,859	$ 7,466
Beginning balance, shares at Dec. 31, 2014						33,050,298	10,938,125
Net income (loss)	(224,974)			(224,974)
Other comprehensive income	(1,006)				(1,006)
Issuance of stock for employee awards		(65)				$ 65
Issuance of stock for employee awards, shares						94,704
Share-based compensation expense	4,034	4,034
Repurchase of treasury shares	(117,962)		(117,962)
Repurchase of treasury shares, shares						(2,127,900)
Dividends paid	(147,592)			(147,592)
Other	(186)			(186)
Ending balance at Dec. 31, 2015	1,587,422	57,455	(136,388)	1,638,733	(768)	$ 20,924	$ 7,466
Ending balance, shares at Dec. 31, 2015						31,017,102	10,938,125
Net income (loss)	334,544			334,544
Other comprehensive income	(1,104)				(1,104)
Issuance of stock for employee awards		(64)				$ 64
Issuance of stock for employee awards, shares						94,208
Share-based compensation expense	7,539	7,539
Dividends paid	(86,116)			(86,116)
Other	(14)	56		(70)
Other, shares						1,046
Ending balance at Dec. 31, 2016	1,842,271	64,986	(136,388)	1,887,091	(1,872)	$ 20,988	$ 7,466
Ending balance, shares at Dec. 31, 2016						31,112,356	10,938,125
Net income (loss)	370,023			370,023
Other comprehensive income	(2,016)				(2,016)
Issuance of stock for employee awards		(42)				$ 42
Issuance of stock for employee awards, shares						62,224
Share-based compensation expense	7,422	7,422
Dividends paid	(106,792)			(106,792)
Share options exercised	587	579				$ 8
Share options exercised, shares						11,061
Ending balance at Dec. 31, 2017	$ 2,111,495	$ 72,945	$ (136,388)	$ 2,150,322	$ (3,888)	$ 21,038	$ 7,466
Ending balance, shares at Dec. 31, 2017						31,185,641	10,938,125

Consolidated statement of cash flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net profit (loss)	$ 370,023	$ 334,544	$ (224,974)
Adjustments for:
Income tax expense	48,000	38,271	32,759
Finance cost	35,223	37,024	33,155
Finance income	(17,939)	(13,000)	(25,947)
Depreciation, amortization and impairment	164,345	159,194	134,888
Loss (gain) on sale of property and equipment	(2)	604	1,896
Disposal of assets	3,318	4,139	3,344
Impairment of accounts receivable	879	1,511	(71)
Allowance for obsolescence of expendable parts and supplies	182	87	63
Derivative instruments mark to market	(2,801)	(111,642)	11,572
Share-based compensation expense	7,422	7,539	4,034
Net foreign exchange differences	38,017	35,525	435,983
Change in:
Accounts receivable	(3,534)	(9,967)	17,471
Accounts receivable from related parties	181	143	(317)
Other current assets	25,770	(14,745)	4,398
Restricted cash		64,228	(11,803)
Other assets	(1,012)	10,202	14,628
Accounts payable	20,943	16,387	(31,913)
Accounts payable from related parties	4,199	3,076	(1,801)
Air traffic liability	74,456	44,127	(55,902)
Frequent flyer deferred revenue	10,933	16,484	18,884
Other liability	20,883	30,117	2,598
Cash from operating activities	799,486	653,848	362,945
Income tax paid	(51,077)	(33,364)	(39,168)
Interest paid	(35,312)	(37,420)	(31,668)
Interest received	14,235	11,526	24,754
Net cash from operating activities	727,332	594,590	316,863
Investing activities
Acquisition of investments	(854,119)	(553,037)	(383,005)
Proceeds from redemption of investments	567,007	485,944	435,110
Advance payments on aircraft purchase contracts and other	(191,315)	(47,479)	(83,064)
Reimbursement of advance payments on aircraft purchase contracts	28,888	29,150	161,169
Acquisition of property and equipment	(109,945)	(88,345)	(81,788)
Proceeds from sale of property and equipment	6	8,332	3,380
Acquisition of intangible assets	(18,681)	(14,474)	(19,418)
Net cash (used in) from investing activities	(578,159)	(179,909)	32,384
Financing activities
Proceeds from new borrowings	147,798	164,400	130,000
Payments on loans, borrowings and finance leases	(246,349)	(326,965)	(221,912)
Dividends paid	(106,792)	(86,116)	(147,592)
Proceeds from exercise of share options	587	56
Repurchase of treasury shares			(117,962)
Net cash used in financing activities	(204,756)	(248,625)	(357,466)
Net (decrease) increase in cash and cash equivalents	(55,583)	166,056	(8,219)
Cash and cash equivalent at Beginning value	331,687	204,715	221,443
Effect of exchange rate change on cash	(37,312)	(39,084)	(8,509)
Cash and cash equivalent at Ending balance	$ 238,792	$ 331,687	$ 204,715

Corporate information

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Corporate information

1.	Corporate information

Copa Holdings, S. A. (“the Company”) was incorporated according to the laws of the Republic of Panama on May 6, 1988 with an indefinite duration. The Company is a public company listed in the New York Stock Exchange (NYSE) under the symbol CPA since December 14, 2005. The address of its registered office is Boulevard Costa del Este, Avenida Principal y Avenida de la Rotonda, Urbanización Costa del Este, Complejo Business Park, Torre Norte, Parque Lefevre, Panama City, Republic of Panama.

These consolidated financial statements comprise the Company and its subsidiaries: Compañía Panameña de Aviación, S. A. (“Copa Airlines”), Oval Financial Leasing, Ltd. (“OVAL”), AeroRepública, S. A. (“Copa Colombia”):

•

Copa Airlines: the Company’s core operation is incorporated according to the laws of the Republic of Panama and provides international air transportation for passengers, cargo and mail, operating from its Panama City hub in the Republic of Panama.

•

Copa Colombia: is a Colombian air carrier, incorporated according to the laws of the Republic of Colombia which provides domestic and international air transportation for passengers, cargo, and mail.

In October 2016, Copa Colombia officially launched “Wingo” a new low-cost business model. Wingo operates administratively and functionally under Copa Colombia, with an independent structure for its commercialization, distribution systems and customer service. Wingo began operations on December 1st, 2016, currently flights to 14 destinations, 6 domestic and 8 international, in 8 countries in South, Central America and the Caribbean.

•

OVAL: incorporated according to the laws of the British Virgin Islands, it controls the special-purpose entities that have a beneficial interest in the majority of the Company’s fleet, which is leased to either Copa Airlines or Copa Colombia.

The Company currently offers approximately 347 daily scheduled flights to 75 destinations in 31 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub. Additionally, the Company provides passengers with access to flights to more than 200 international destinations through codeshare agreements. The Company is part of Star Alliance, the leading global airline network since June 2012.

The Company has a broad commercial alliance with United Continental Holdings, Inc. (“United”), which was renewed during May 2016, for another five years. This Alliance includes an extensive and expanding code-sharing and technology cooperation. The Company participated in United’s Mileage Plus frequent flyer loyalty program until June 30, 2015.

On July 1, 2015, Copa Airlines started its new loyalty program “ConnectMiles”, designed to strengthen the relationship with its frequent flyers and provide exclusive attention. The program maintains the mile accumulation and redemption model that Copa Airlines’s passengers have enjoyed in recent years in United’s Mileage Plus frequent flyer loyalty program. ConnectMiles members are eligible to earn and redeem miles to any of Star Alliance’s 1,300 (unaudited) destinations in 190 countries within 28 airlines members (unaudited).

As of December 31, 2017, the Company operates a fleet of 100 aircraft with an average age of 8.00 years, and consists of 66 Boeing 737-800 Next Generation aircraft, 14 Boeing 737-700 Next Generation aircraft and 20 Embraer E190 aircraft.

The consolidated financial statements for the year ended December 31, 2017 have been authorized for issuance by the Company’s Chief Executive Officer and Chief Financial Officer on April 18, 2018.

Basis of preparation

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Basis of preparation

2.	Basis of preparation

Statement of compliance

The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

As used in these notes to consolidated financial statements, the terms “the Company”, “we”, “us”, “our”, and similar terms refer to Copa Holdings, S. A. and, unless the context indicates otherwise, its consolidated subsidiaries.

Basis of measurement

The consolidated financial statements have been prepared on a historical cost basis, except for the following:

•

available-for-sale financial assets, derivative instruments, certain classes of property, plant and equipment and investment property – measured at fair value

•

assets held for sale – measured at fair value less cost of disposal, and

•

defined benefit pension plans – plan assets measured at fair value.

Functional and presentation currency

These consolidated financial statements are presented in United States dollars (U.S. dollars “$”), which is the Company’s functional currency and the legal tender of the Republic of Panama. The Republic of Panama does not issue its own paper currency; instead, the U.S. dollar is used as legal currency.

All values are rounded to the nearest thousand in U.S. dollars ($000), except when otherwise indicated.

Significant accounting policies

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Significant accounting policies

3.	Significant accounting policies

(a)

Basis of consolidation

These consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Control is achieved when the Company is exposed to, or has right to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls the investee, when it has:

•

power over the investee

•

exposure, or rights to, variable returns from its involvement with the investee, and

•

the ability to use its power over the investee to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary.

The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany balances, transactions, and dividends are eliminated in full.

The following are the significant subsidiaries included in these financial statements:


Name	Country of Incorporation	Ownership interest
Name	Country of Incorporation	2017			2016
Copa Airlines	Panama		99	%		99	%
Copa Colombia	Colombia		99	%		99	%
Oval	British Virgin Islands		100	%		100	%

(b)

Current versus non-current classification

The Company presents assets and liabilities in the statement of financial position based on current/non-current classification.

An asset is current when it is:

•

expected to be realized or intended to be sold or consumed in the normal operating cycle

•

expected to be realized within twelve months after the reporting period, or

•

cash or cash equivalent, unless restricted.

All other assets are classified as non-current.

A liability is current when:

•

it is expected to be settled in the normal operating cycle

•

it is due to be settled within twelve months after the reporting period, or

•

there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

(c)

Foreign currencies

The Company’s consolidated financial statements are presented in U.S. dollars, which is the Company’s functional currency. The Company determines the functional currency for each entity, and the items included in the financial statements of each entity are measured using that functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company at the respective functional currency spot rates on the date when the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot exchange rate at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

Foreign exchange gains and losses are included in the exchange rate difference line in the consolidated statement of profit or loss for the year.

(d)

Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties. The following specific recognition criteria must also be met before revenue is recognized:

Passenger revenue

Passenger revenue is recognized when transportation is provided rather than when a ticket is sold. The amount of passenger ticket sales, not yet recognized as revenue, is reflected under “Air traffic liability” in the consolidated statement of financial position. The Company performs a monthly liability evaluation, and a provision is recognized for tickets that are expected not to be used or redeemed. A year after the sales is made, all unredeemed sales are transferred from “Air Traffic liability” and recognized as revenue, and the provision is reversed.

A significant portion of the Company’s ticket sales are processed through major credit card companies, resulting in accounts receivable that are generally short-term in duration and typically collected prior to when revenue is recognized. The Company believes that the credit risk associated with these receivables is minimal.

The Company is required to charge certain taxes and fees on its passenger tickets. These taxes and fees include transportation taxes, airport passenger facility charges, and arrival and departure taxes. These taxes and fees are legal assessments on the customer. Since the Company has a legal obligation to act as a collection agent with respect to these taxes and fees, we do not include such amounts in passenger revenue. The Company records a liability when these amounts are collected and derecognizes the liability when payments are made to the applicable government agency or operating carrier.

Cargo and mail revenue

Cargo and mail revenue is recognized when the Company provides and completes the shipping services as requested by the client and the risks on the merchandise and goods are transferred.

Other operating revenue

Other operating revenue is primarily comprised of commissions earned on tickets sold for flights on other airlines, special charges, charter flights, and other services provided to other airlines and are recognized when the transportation or service is provided.

Frequent flyer program

On July 1, 2015, the Company launched its frequent flyer program, whose objective is to reward customer loyalty through the earning of miles whenever the programs members make certain flights. The miles or points earned can be exchanged for flights on Copa or any of other Star Alliance partners’ airlines.

When a passenger elects to receive Copa’s frequent flyer miles in connection with a flight, the Company recognizes a portion of the tickets sale as revenue when the air transportation is provided and recognizes a deferred liability (Frequent flyer deferred revenue) for the portion of the ticket sale representing the value of the related miles as a multiple-deliverable revenue arrangement, in accordance with International Financial Reporting Interpretation Committee (IFRIC) 13: Customer loyalty programs. To determine the amount of revenue to be deferred, the Company estimates and allocates the fair value of the miles that were essentially sold along with the airfare, based on a weighted average ticket value, which incorporates the expected redemption of miles including factors such as redemption pattern, cabin class, loyalty status and geographic region.

Furthermore, the Company estimates miles earned by members which will not be redeemed for an award before they expire (breakage). A statistical model that estimates the percentages of points that will not be redeemed before expiration is used to estimate breakage. The breakage and the fair value of the miles are reviewed annually.

The Company calculates the short and long-term portion of the frequent flyer deferred revenue, using a model that includes estimates based on the members´ redemption rates projected by management due to clients’ behavior.

Currently, when a member of another carrier frequent flyer program redeems miles on a Copa Airlines or Copa Colombia flights, those carriers pay to the Company a per mile rate. The rates paid by them depend on the class of service, the flight length, and the availability of the reward.

In addition, the Company sells miles to non-airline businesses with which it has marketing agreements. The main contracts to sell miles are related to co-branded credit card relationships with major banks in the region. The Company determined the selling prices of miles according to a negotiated rate.

Prior to July 1, 2015, the Company participated in United Airlines (“United”) Mileage Plus frequent flyer program. Under the terms of the Company’s frequent flyer agreement with United, Mileage Plus members received Mileage Plus frequent flyer mileage credits for traveling on the Company’s flights. Copa paid United a per mile rate for each mileage credit granted by United at the time of Copa’s flight.

The amounts paid to United were recognized by the Company as a reduction to “Passenger revenue” in the consolidated statement of profit or loss. Upon payment the Company did not have any further obligation with respect to the mileage credits.

(e)

Cash and cash equivalents

Cash and cash equivalents in the statement of financial position, comprise cash on hand and in banks, money market accounts, and time deposits with original maturities of three months or less from the date of purchase.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash net of outstanding bank overdrafts, if any. The Company has elected to present the statement of cash flows using the indirect method.

(f)

Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

The Company’s financial assets include cash and cash equivalents, short and long-term investments and accounts receivable.

(i)

Initial recognition and derecognition

Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, receivables, held to maturity investments, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial assets are recognized initially at fair value plus directly attributable transaction costs, except in the case of financial assets at fair value through profit and loss.

A financial asset is derecognized when:

•

the rights to receive cash flows from the asset have expired, or

•

the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement, and either (a) the Company has transferred substantially all of the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all of the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

(ii)

Measurement

The subsequent measurement of financial assets depends on their classification as described below (see also note 4, Fair value measurement for financial assets):

•

Held to maturity investments

The Company invests in short-term deposits with original maturities of more than three months but less than one year. Additionally, the Company invests in long-term deposits with maturities greater than one year. These investments are classified as short and long-term investments, respectively, in the accompanying consolidated statement of financial position. All of these investments are classified as held-to-maturity securities and are subsequently measured at amortized cost using the Effective Interest Rate (EIR) method, less impairment, since the Company has determined that it has the intent and ability to hold the securities to maturity.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the consolidated statement of profit or loss. Restricted cash and cash equivalents are classified within short-term and long-term investments and are held as collateral for letters of credit.

•

Receivables

Accounts receivable are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These financial instruments, which generally have 30 days terms, are initially recognized and carried at the original invoice amount since recognition of interest under the amortized cost would be immaterial less a provision for impairment. Losses arising from impairment are recognized under “Other operating expenses” in the consolidated statement of profit or loss.

The Company records its best estimate of the provision for impairment of receivables, based on several factors, including varying customer classifications, agreed upon credit terms, and the aging of the individual debt.

When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.

The Company considers that there is evidence of impairment if any of the following indicators are present:

•

the debtor is in a state of permanent disability

•

the Company has exhausted all legal and/or administrative recourse

•

where the account exceeds one year without decreases

•

when there are not documents that establishing the debt.

(iii)

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legally enforceable right to set off the recognized amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the ordinary course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Non-derivative financial liabilities

(i)

Initial recognition and derecognition

The Company’s financial liabilities include trade and other payables and loans and borrowings.

Financial liabilities are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs.

Financial liabilities are derecognized when the obligation under the liability is discharged, cancelled, or expire. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statement of profit or loss.

(ii)

Measurement

The measurement of financial liabilities depends on their classification as described below:

•

Debt

All borrowings and loans are initially recognized at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included under finance cost in the consolidated statement of profit or loss.

•

Other financial liabilities

Other financial liabilities are initially recognized at fair value, including directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the EIR method.

Gains and losses are recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as through the amortization process.

Derivative financial instruments and hedging activities

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair value.

Derivatives are carried as financial assets when the fair value results in a right to the Company and as financial liabilities when the fair value results in an obligation. The accounting for changes in value depends on whether the derivative is designated as a hedging instrument, and if so, the classification of the hedge. The fair values of various derivative instruments used for hedging purposes are shown in note 28.7.

For hedge accounting purposes, hedges are classified into:

•

fair value hedges

•

cash flow hedges

•

hedges of a net investment in a foreign operation.

The Company designated certain derivatives as cash flow hedges.

At the inception of a hedge relationship, the Company formally designates and documents the relationship between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions.

The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions, as expected, are highly effective in offsetting changes in fair values or cash flows of hedged items.

Any gain or loss on the hedging instrument relating to the effective portion of a cash flow hedge is recognized in the consolidated statement of comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated statement of profit or loss.

Amounts recognized as other comprehensive income are transferred to the statement of profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as other comprehensive income are transferred to the initial carrying amount of the non-financial asset or liability.

As of December 31, 2017 and 2016, the Company does not have financial instruments designated under hedge accounting.

(g)

Impairment

Impairment of financial assets

The Company assesses at the end of each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. An impairment exists if one or more events that have occurred since the initial recognition of the asset (an incurred “loss event”) have an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Evidence of impairment may include indicators that the debtors or the group of debtors are experiencing financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization, and observable data indicating that there is a measurable decrease in the estimated future cash flows.

•

Impairment of financial assets carried at amortized cost

For financial assets carried at amortized cost, the Company first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment.

The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original EIR.

The carrying amount of the asset is reduced and the loss recorded in the consolidated statement of profit or loss.

Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset or its cash-generating unit (CGU) may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s or CGU’s recoverable amount. The recoverable amount is the higher of an asset’s or its CGU’s fair value less costs to sell and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

Impairment losses of continuing operations, including impairment on inventories, are recognized in the consolidated statement of profit or loss in those expense categories consistent with the function of the impaired asset.

For assets, excluding goodwill, an assessment is made at each reporting date to determine whether there is any indication that previously recognized impairment losses no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount.

A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or loss.

(h)

Expendable parts and supplies

Expendable parts and supplies for flight equipment are carried at the lower of the average acquisition cost or replacement cost, and are expensed when used in operations. The replacement cost is the estimated purchase price in the ordinary course of business.

(i)

Passenger traffic commissions

Passenger traffic commissions are recognized as expense when transportation is provided and the related revenue is recognized. Passenger traffic commissions paid but not yet recognized as expense are included under “Prepaid expenses” in the accompanying consolidated statement of financial position.

(j)

Property and equipment

Property and equipment comprise mainly airframe, engines, and other related flight equipment. All property and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

Major maintenance events, including major engine overhauls, are capitalized and depreciated over the period until the next major maintenance event. All other replacement spares and costs relating to maintenance of fleet assets are charged to the consolidated statement of profit or loss on consumption or as incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets and considering the following values:


	Estimate useful	Residual
Property and equipment	life (years)	Value
Flight equipment -
Airframe and engines	27		15	%
Aircraft components (rotable parts)	27		15	%
Major maintenance events	1-8		—
Ramp and miscellaneous -
Ground equipment	10		—
Furniture, fixture, equipment and other	5-10		—
Leasehold improvements	Lesser of remaining lease term and estimated useful life of the leasehold improvement		—

An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized.

The costs of major maintenance events for leased aircraft (including operating leases) are capitalized and depreciated over the shorter of the scheduled usage period to the next major inspection event or the remaining life of lease term (as appropriate).

The residual values, useful lives, and methods of depreciation of property and equipment are reviewed at each financial year-end and adjusted prospectively, if appropriate.

During 2017, as result of the annual review of the useful life, the Company concluded that aircraft components are now expected to remain in operations for 27 years from the purchase date.

During 2016, as result of the annual review of the useful life, the Company concluded that airframe and engines are now expected to remain in operations for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years (see note 13).

The land owned by the Company is recognized at cost less any accumulated impairment.

(k)

Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether the fulfillment of the agreement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in the arrangement.

A reassessment is made after inception of the lease only if one of the following applies:

•

there is a change in contractual terms, other than a renewal or extension of the arrangement;

•

a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term;

•

there is a change in the determination of whether fulfillment is dependent on a specified asset; or

•

there is a substantial change to the asset.

Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment. When a renewal option is exercised or extension granted, lease accounting shall commence or cease at the date of renewal or extension.

The Company as lessor

(i)

Operating leases

When assets are leased under operating leases, the asset is included in the consolidated statement of financial position according to its nature. Revenue from operating leases is recognized over the lease term on a straight-line basis.

Initial direct costs incurred by the Company in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as the related lease income.

The Company as lessee

(ii)

Operating leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases.

Operating lease payments are recognized as an expense in the consolidated statement of profit or loss on a straight-line basis over the lease term.

(iii)

Finance leases

Leases where the lessor substantially transfers all the risks and benefits of ownership of the leased item are classified as finance leases.

The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance cost and the reduction of the outstanding liability.

The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability; these are recognized as finance costs in the consolidated statement of profit or loss.

Sale and leaseback transactions

The Company enters into transactions whereby aircraft are sold and subsequently leased back. The Company has not entered into sale and leaseback transactions that resulted in finance leases.

If a sale and leaseback transaction results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss is recognized immediately. If the sale price is below fair value any profit is recognized immediately. If the transaction is not at fair value, any resulting loss that is compensated for by future lease payments at below market rate is deferred and amortized over the lease term.

(l)

Intangible assets

Goodwill

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed of the acquired subsidiary at the date of acquisition.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s CGU or group of CGU’s that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

Other intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and the expenditure is reflected in the consolidated statement of profit or loss in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over their useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the consolidated statement of profit or loss as the expense category that is consistent with the function of the intangible assets.

Intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually, either individually or at the CGU level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains and losses arising from the derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the consolidated statement of profit or loss when the asset is derecognized.

The Company’s intangible assets and the policies applied are summarized as follows:

•

Licenses and software rights

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized using the straight-line method over their estimated useful lives (from three to eight years).

Costs associated with developing or maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the production of identifiable and unique software products controlled by the Company and that are estimated to generate economic benefits exceeding costs beyond one year, are recognized as intangible assets. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. These costs are amortized using the straight-line method over their estimated useful lives (from five to fifteen years).

Computer software development costs recognized as assets are amortized on a straight-line basis over their estimated useful lives, which range between three and five years.

Licenses and software rights acquired by the Company have finite useful lives and are amortized on a straight-line basis over the term of the contract and the amortization is recognized in the consolidated statement of profit or loss.

(m)

Taxes

Income tax expense

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except when related to the items recognized directly in equity or in other comprehensive income (“OCI”).

Current income tax

The Company pays taxes in the Republic of Panama and in other countries in which it operates, based on regulations in effect in each respective country.

Revenue arise principally from foreign operations, and according to the Panamanian Tax Code, these foreign operations are not subject to income tax in Panama.

The Panamanian tax code for the airline industry states that tax is based on net income earned for traffic with origin or final destination in the Republic of Panama. The applicable tax rate is currently 25.0%. Dividends from the Panamanian subsidiaries, are separately subject to a 10% withholding tax on the portion attributable to Panamanian sourced income and a 5% withholding tax on the portion attributable to foreign sourced income.

The Company is also subject to local tax regulations in each of the other jurisdictions where it operates, the great majority of which are related to income taxes.

Current income tax assets and liabilities are measured at the amount expected to be paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions when appropriate.

Deferred tax

Deferred tax is calculated using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized, except:

•

when the deferred tax asset relating to the deductible temporary difference arises from initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss.

•

in respect of deductible temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

•

when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss.

•

in respect of taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

(n)

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction, or production of any qualifying asset, that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the cost of the asset during that period of time.

Other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(o)

Provisions

Provisions for costs, including restitution, restructuring and legal claims and assessments are recognized when:

•

the Company has a present legal or constructive obligation as a result of past events;

•

it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

•

the amount of obligation can be reliably estimated.

For certain operating leases, the Company is contractually obliged to return the aircraft in a defined condition. The Company accrues a provision for restitution costs related to aircraft held under operating leases throughout the duration of the lease.

Restitution costs are based on the net present value of the estimated costs of returning the aircraft and are recognized in the consolidated statement of profit or loss under “Maintenance, materials and repairs”. These costs are reviewed annually and adjusted as appropriate.

(p)

Employee benefits

Defined benefit plan

The Company sponsors a defined benefit plan, which requires contributions to be made to a separately administered fund.

The calculation of the defined benefit obligation is performed annually by a qualified actuary using the projected unit credit actuarial cost method (PUC).

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets and the effect of the asset ceiling (if any), are recognized immediately in other comprehensive income. The Company determines the net interest by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation in the consolidated statement of profit or loss.

Share-based payments

Employees (including senior executives) of the Company receive compensation in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (equity-settled transactions).

The cost of equity-settled transactions is recognized, together with a corresponding increase in additional paid in capital in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. Expense or credit for a period represents the movement in cumulative expense recognized as of the beginning and end of that period and is recognized under “Salaries and benefits” expense in the consolidated statement of profit or loss (note 25).

Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without realistic possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy.

Significant accounting judgments, estimates and assumptions

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Significant accounting judgments, estimates and assumptions

4.	Significant accounting judgments, estimates and assumptions

The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities in future periods.

Judgments

In the process of applying the Company’s accounting policies, management has made judgments, which have the most significant effect on the amounts recognized in the consolidated financial statements in the following area:

•

Leases

The Company enters into lease contracts on some of the aircraft it operates. The Company assesses, based on the terms and conditions of the arrangements, whether or not substantially all risks and rewards of ownership of the aircraft it leases have been transferred/retained by the lessor to determine the appropriate accounting classification of the contracts as an operating or finance leases.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

The Company based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the Company’s control. Such changes are reflected in the assumptions when they occur.

•

Impairment of non-financial assets

Impairment exists when the carrying amount of an asset or CGU exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes (see note 16).

•

Property and equipment

The Company’s management has determined that the residual value of the airframe, engines, and components (rotable parts) owned is 15% of the cost of the asset, so the depreciation of flight equipment is made accordingly. Annually, management reviews the useful life and residual value of each of these assets (see note 13).

•

Provision for return condition

The Company records a maintenance provision to accrue for the cost that will be incurred in order to return certain aircraft to their lessor in the agreed-upon condition. The methodology applied to calculate the provision requires management to make assumptions, including the future maintenance costs, discount rate, related inflation rates and aircraft utilization.

Any difference in the actual maintenance cost incurred and the amount of the provision is recorded in maintenance expenses in the period. The effect of any changes in estimates, including those mentioned above, is also recognized in maintenance expenses for the period (see note 21).

•

Share-based payments

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility, and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in note 25.

•

Revenue recognition – expired tickets

The Company recognizes estimated fare revenue for tickets that are expected to expire based on departure date (unused tickets), based on historical data and experience. Estimating the expected expiration rate requires management’s judgment, among other things, the historical data and experience is an indication of the future customer behavior.

•

Multiple deliverable revenue arrangements - Frequent flyer program

The Company recognizes a portion of the proceeds from the sale of tickets as frequent-flyer deferred revenue, reflecting the value of the related miles earned by the passenger in a multiple element revenue arrangement. Pursuant to IFRIC 13, the Company estimates the fair value of the miles sold along with the ticketed flight using a blended calculation of rates charged when miles are sold to other partners and the average value of a mile flown by a customer. Also, the Company estimates and reduces the liability for the value of miles earned but expected to expire unused, based on historical experience.

•

Taxes

The Company believes that tax positions taken are reasonable. However, in the event of an audit by the tax authorities, they may challenge the positions taken by the Company, resulting in additional taxes and interest liabilities.

The tax positions involve considerable judgment by management and are reviewed and adjusted to account for changes in circumstances, such as lapsing of applicable statutes of limitations, conclusion of tax audits, additional exposures based on identification of new issues, or court decisions affecting a particular tax issue. Actual results may differ from estimates (see note 22).

•

Fair value measurement

The Company measures financial instruments such as derivatives at fair value at the date of each statement of financial position. Fair values of financial instruments measured at amortized cost are disclosed in note 28.7.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

•

in the principal market for the asset or liability, or

•

in the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole (see note 28.7 for further disclosures):

i)	Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

ii)

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

iii)

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Changes in disclosures

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Changes in disclosures

5.	Changes in disclosures

5.1

Adoption of new and amended standards and interpretations

The Company applied for the first time certain amendments to the standards, which are effective for annual periods beginning on or after January 1, 2017. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.

•

Amendments to IAS 7 Statement of cash flows: disclosure initiative

The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). The Company has provided the information for the current period in note 18.

•

Other standards

The following amendments effective for annual periods beginning on or after January 1, 2017, had no impact on the company’s financial statements:

Annual Improvements Cycle - 2014-2016: IFRS 12 ’Disclosure of interests in other entities’ regarding clarification of the scope of the standard.

Amendments to IAS 12 Income Taxes: recognition of deferred tax assets for unrealized losses

5.2

Change in accounts classifications

Consolidated statement of financial position

As disclosed in the table below, certain retrospective corrections have been made to the December 31, 2016 consolidated statement of financial position to conform to the 2017 presentation. The movement between current and non-current liabilities corresponds to the classification to non-current liabilities of a portion of the provision for maintenance. This provision include the accrual of formal agreements with third parties for operational maintenance events, the Company has determined that a part of this provision is not going to be settled within 12 months after the reporting period.

Additionally, the Company is adjusting the presentation of the prepaid income tax, previously presented within taxes and interest payables.

The following table reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position:


	As previosly reported		Reclasification			2016 (Adjusted)
Current liabilities
Taxes and interest payable	$	47,389	$	21,094		$	68,483
Accrued expenses payable	$	80,116	$	(35,754	)	$	44,362
Income tax payable	$	22,495	$	(21,094	)	$	1,401

Non-current liabilities
Other long-term liabilities	$	72,694	$	35,754		$	108,448

Consolidated statement of profit or loss

The Company has historically presented its IFRS consolidated statement of profit or loss “by nature and function on a ‘mixed basis” as permitted by IAS 1. During February 2017, the Company introduced a new business, planning and financial consolidation accounting system, with the objective of improving and giving greater uniformity to the structure and presentation of the consolidated financial statements. While the Company continues to present its consolidated income statement “by nature and function on a ‘mixed basis”, a new chart of accounts was implemented resulting in the reclassification of certain lines in the consolidated financial statements, as well as certain new financial statement line items. In the accompanying consolidated statements, prior periods have been retrospectively reclassified giving effect to the new classifications. The Company does not believe these reclassifications significantly affect its previously reported financial statements, nor do they have any significant impact on previously reported Key Performance Indicators (KPIs) or debt covenant compliance. There was also no impact on the Company’s basic or diluted earnings per share and no impact on the total operating, investing or financing cash flows for the years ended December 31, 2016 and 2015.

The following tables discloses both previously reported and as adjusted amounts of the consolidated statements of profit or loss:


	2016

	(Adjusted)
Operating revenue
Passenger revenue	$	2,155,167
Cargo and mail revenue		53,989
Other operating revenue		12,696

		2,221,852
Operating expenses
Fuel		528,996
Wages, salaries, benefits and other employees’ expenses		370,190
Passenger servicing		86,329
Airport facilities and handling charges		159,771
Sales and distribution		193,984

Maintenance, materials and repairs		121,781
Depreciation and amortization		159,278
Flight operations		88,188
Aircraft rentals and other rentals		138,885

Cargo and courier expenses		6,099
Other Operating and administrative expenses		92,215

		1,945,716

Operating profit		276,136
Non-operating income (expense)
Finance cost		(37,024	)
Finance income		13,000
(Loss) Gain on foreign currency fluctuations		13,043
Net change in fair value of derivatives		111,642
Other non-operating expense		(3,982	)


		96,679

Profit (loss) before taxes		372,815
Income tax expense		(38,271	)

Net profit (loss)	$	334,544

	2016
	(Previously reported)
Operating revenue
Passenger revenue	$	2,133,186
Cargo, mail and other		88,663


		2,221,849
Operating expenses
Aircraft fuel		527,918
Salaries and benefits		293,044
Passenger servicing		259,524

Commissions		83,981
Reservations and sales		99,918
Maintenance, material and repairs		122,873
Depreciation, amortization and impairment		159,278
Flight operations		127,777
Aircraft rentals		120,841
Landing fees and other rentals		55,498

Other		94,584

		1,945,236

Operating profit		276,613
Non-operating income (expense)
Finance cost		(37,024	)
Finance income		13,000
Exchange rate difference, net		13,043
Mark to market derivative income (expense)		111,642
Other income		2,888
Other expense		(7,347	)

		96,202

Profit (loss) before taxes		372,815
Income tax expense		(38,271	)

Net profit (loss)	$	334,544


	2015

	(Adjusted)
Operating revenue
Passenger revenue	$	2,185,465
Cargo and mail revenue		56,738
Other operating revenue		11,507

		2,253,710
Operating expenses
Fuel		603,760
Wages, salaries, benefits and other employees’ expenses		373,631
Passenger servicing		84,327
Airport facilities and handling charges		148,078
Sales and distribution		188,961

Maintenance, materials and repairs		111,178
Depreciation and amortization		134,888
Flight operations		86,461
Aircraft rentals and other rentals		142,177

Cargo and courier expenses		6,471
Other Operating and administrative expenses		105,484

		1,985,416

Operating profit		268,294
Non-operating income (expense)
Finance cost		(33,155	)
Finance income		25,947
(Loss) Gain on foreign currency fluctuations		(440,097	)
Net change in fair value of derivatives		(11,572	)
Other non-operating expense		(1,632	)


		(460,509	)

Profit (loss) before taxes		(192,215	)
Income tax expense		(32,759	)

Net profit (loss)	$	(224,974	)

	2015
	(Previously reported)
Operating revenue
Passenger revenue	$	2,166,727
Cargo, mail and other		83,335


		2,250,062
Operating expenses
Aircraft fuel		602,777
Salaries and benefits		289,512
Passenger servicing		258,302

Commissions		88,557
Reservations and sales		88,051
Maintenance, material and repairs		111,181
Depreciation, amortization and impairment		134,888
Flight operations		130,930
Aircraft rentals		122,217
Landing fees and other rentals		56,703

Other		100,856

		1,983,974

Operating profit		266,088
Non-operating income (expense)
Finance cost		(33,155	)
Finance income		25,947
Exchange rate difference, net		(440,097	)
Mark to market derivative income (expense)		(11,572	)
Other income		7,025
Other expense		(6,451	)

		(458,303	)

Profit (loss) before taxes		(192,215	)
Income tax expense		(32,759	)

Net profit (loss)	$	(224,974	)

New standards and interpretations not yet adopted

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

New standards and interpretations not yet adopted

6.	New standards and interpretations not yet adopted

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

As part of the implementation of IFRS 9 Financial instruments, IFRS 15 Revenue from contracts with customers and IFRS 16 Leases, the Company has actively participated in a specialized airline industry accounting group, which is comprise of by various airline members, accounting firms and the staff of the International Air Transport Association (IATA). The objective of this group is to discuss the nature and volume of implementation questions to adopt uniform accounting policies about these new standards within the airline industry.

IFRS 15 Revenue from contracts with customers

The new standard provides a framework that replaces existing revenue recognition guidance in IFRS. Entities will apply a five-step model to determine when to recognize revenue, and at what amount.

During April 2016, the IASB issued an amendment to this standard, introducing some clarification and guidance to identifying performance obligations, accounting for licenses of intellectual property and the principal versus agent assessment.

The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled.

Depending on whether certain criteria are met, revenue is recognized:

•

over time, in a manner that depicts the entity’s performance; or

•

at a point in time, when control of the goods or services is transferred to the customer.

The Company plans to adopt IFRS 15 in its consolidated financial statements for the annual period beginning on January 1, 2018, using the full retrospective approach. The comparative results included in the 2018 financial statements will be restated with an adjustment to the opening equity at December 31, 2016.

The Company´s decision to adopt retrospectively was the result of a number of factors considering the time, effort and cost involved in doing so when compared to the benefits to users of the consolidated financial statements.

The Company has carried out an evaluation and implementation process, culminating at the end of the 2017 period. The Company’s analysis has resulted in a number of impacts on its consolidated financial statements, due to changes mainly related to the revenue recognition of passenger services.

The following are the causes of the impacts related to the process of adoption of the new standard:

•

Ancillary services: considerations about these contracts are at what level and when revenues take place. This was evaluated under the performance obligations criteria, including services such as excess baggage fees, exchange fees, upgrades fees and other fees. The main change is the recognition of revenue from the sales date to the departure date, the moment when the performance obligations are fulfilled. Under the new standard these deliverables are considered a single performance obligation, which will not exist without the main performance obligation, the travel service that is fulfilled at departure date.

•

Loyalty program contract: considerations about loyalty point valuations, related to co-brand contracts. Multiple deliverable in this contract relate to points earn by the passenger and marketing related to the credit card with the financial entities were changed from a residual method to a method which allocates consideration based upon the relative selling price of the deliverables. The relative selling price of the deliverables is determined based upon the estimated standalone selling prices of each deliverable in the arrangement. Due to this assessment, the value applied to miles earned under the co-brand agreements will be adjusted, changing the amount of revenue recognized from the inceptions of these contracts.

•

Denied board compensation: considerations about whether this performance obligation should be recognized as an operational expense or be allocated against the revenue. This impact consist in the reclassification of this type of performance obligation from the operational expense to contra revenue.

•

Classification of revenue streams: certain revenues that are currently presented as passenger revenue will be reclassified to other revenue. We expect that these revenues will be reclassified between passenger revenue, other revenue and operational expenses after the adoption. This reclassification occurs due to the analysis and classification of each contract according to each associated performance obligations. Some of this concepts include charter flights, publicity and fees related to cobrand agreements.

The impact of the adoption of the new standard on the Company’s equity, as at January 1, 2018, is based on assessments undertaken to date and is summarized below. The actual impacts of adopting the standard, at January 1, 2018, may be subject to changes arising from further reasonable and supportable information being made available to the Company during 2018.

For the period 2017, the Company’s consolidated statement of financial position and the consolidated statement of profit or loss presents the following impacts due to the adoption of the new standard:


	2017			Transition impact			2017 under IFRS15
ASSETS
Current assets	$	1,198,488						1,198,488
Non - current assets		3,054,443						3,054,443

Total assets	$	4,252,931			—			4,252,931

LIABILITIES AND EQUITY
Current liabilities
Air traffic liability	$	470,693			6,475			477,168
Frequent flyer deferred revenue		13,186			4,011			17,197
Income tax payable		3,700			(820	)		2,880
Other current liabilities		570,813						570,813

		1,058,392			9,666			1,068,058
Non - current liabilities
Frequent flyer deferred revenue		33,115						33,115
Other non - current liabilities		1,049,929						1,049,929

		1,083,044			—			1,083,044

Total liabilities		2,141,436			9,666			2,151,102

Equity
Issued capital		28,496						28,496
Additional paid in capital		72,953						72,953
Treasury stock		(136,388	)					(136,388	)
Retained earnings		1,780,299			(4,524	)		1,775,775
Net income		370,023			(5,142	)		364,881
Accumulated other comprehensive loss		(3,888	)					(3,888	)

Total equity		2,111,495			(9,666	)		2,101,829

Total liabilities and equity	$	4,252,931			—			4,252,931

Operating revenue
Passenger revenue	$	2,462,419			(18,442	)		2,443,977
Cargo and mail revenue		55,290						55,290
Other operating revenue		9,847			12,672			22,519

		2,527,556			(5,770	)		2,521,786
Operating expenses
Other operating expenses		1,887,082						1,887,082
Sales and distribution		200,413			(157	)		200,256

		2,087,495			(157	)		2,087,338

Operating profit		440,061			(5,613	)		434,448
Non - operating income (expense)		(22,038	)					(22,038	)

		(22,038	)		—			(22,038	)

Profit (loss) before taxes		418,023			(5,613	)		412,410
Income tax expense		(48,000	)		471			(47,529	)

Net profit (loss)		370,023			(5,142	)		364,881

The main components of the adjustment, for the period, are as follows:

•

An increase of $6.4 million and $4.0 million in Air traffic liability and Frequent flyer deferred revenue, due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date, and the change in the amount deferred for mileages credits due to sales from co-brand partner agreements resulting from the change from the residual method to the relative selling price method, respectively.

•

A decrease of $4.5 million in retained earnings due to the impacts of the 2016 period.

•

A decrease of $18.4 million in Passenger revenue by: $2.8 million due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date; $15.4 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights; and $0.2 million due the reclassification of denied board compensation from the Sales and distribution operating expenses to Passenger revenue.

•

An increase of $12.7 million in Other operating revenue by: a decrease of $2.7 million due to the change in the amount deferred for mileages credits due to sales from co-brand partner agreements resulting from the change from the residual method to the relative selling price method; and an increase of $15.4 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights.

•

A decrease of $0.4 million in Income tax expense, and Income tax payable as a result of the transitions impacts.

For the period 2016, the Company’s consolidated statement of financial position and the consolidated statement of profit or loss presents the following impacts due to the adoption of the new standard:


	2016			Transition impact			2016 under IFRS15
ASSETS
Current assets	$	1,069,391						1,069,391
Non - current assets		2,776,722						2,776,722

Total assets	$	3,846,113			—			3,846,113

LIABILITIES AND EQUITY
Current liabilities
Air traffic liability	$	396,237			3,559			399,796
Frequent flyer deferred revenue		9,044			1,314			10,358
Income tax payable		22,495			(349	)		22,146
Other current liabilities		470,660						470,660

		898,436			4,524			902,960
Non - current liabilities
Frequent flyer deferred revenue		26,324						26,324
Other non - current liabilities		1,079,082						1,079,082

		1,105,406			—			1,105,406

Total liabilities		2,003,842			4,524			2,008,366

Equity
Issued capital		28,454						28,454
Additional paid in capital		64,986						64,986
Treasury stock		(136,388	)					(136,388	)
Retained earnings		1,552,547			(2,354	)		1,550,193
Net income		334,544			(2,170	)		332,374
Accumulated other comprehensive loss		(1,872	)					(1,872	)

Total equity		1,842,271			(4,524	)		1,837,747

Total liabilities and equity	$	3,846,113			—			3,846,113

Operating revenue
Passenger revenue	$	2,155,167			(6,666	)		2,148,501
Cargo and mail revenue		53,989						53,989
Other operating revenue		12,696			4,000			16,696

		2,221,852			(2,666	)		2,219,186
Operating expenses
Other operating expenses		1,751,732						1,751,732
Sales and distribution		193,984			(147	)		193,837

		1,945,716			(147	)		1,945,569

Operating profit		276,136			(2,519	)		273,617
Non - operating income (expense)		96,679						96,679

		96,679			—			96,679

Profit (loss) before taxes		372,815			(2,519	)		370,296
Income tax expense		(38,271	)		349			(37,922	)

Net profit (loss)		334,544			(2,170	)		332,374

The main components of the adjustment, for the period 2016, are as follows:

•

An increase of $3.6 million, and $1.3 million in Air traffic liability and Frequent flyer deferred revenue, due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date, and the change in the amount deferred for mileages credits due to sales from co-brand partner agreements resulting from the change from the residual method to the relative selling price method product, respectively.

•

A decrease of $2.4 million in retained earnings by: $2.2 million due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date; and $0.2 million due to the change in the amount deferred for mileages credits due to sales from co-brand partner agreements resulting from the change from the residual method to the relative selling price method. This effect is the product of the impact of the 2015 period.

•

A decrease of $6.7 million in Passenger revenue by: $1.4 million due to the change in the timing of revenue recognition related to exchange fee and other ancillary, from the sales date, to the departure date; $5.1 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights; and $0.2 million due the reclassification of denied board compensation from the Sales and distribution operating expenses to Passenger revenue.

•

An increase of $4.0 million in Other operating revenue by: an increase of $5.1 million due to the reclassification between Passenger revenue and Other operating revenue of the revenue related to the sale and transfer of miles and cobrand agreements from our frequent flyer program, the sale of advertising space, and charter flights; and a decrease of $1.1 million due to the change in the amount deferred for mileages credits due to sales from co-brand partner agreements resulting from the change from the residual method to the relative selling price method.

•

A decrease of $0.3 million in Income tax expense, and Income tax payable as a result of the transitions impacts.

The presentation and disclosure requirements in IFRS 15 are more detailed than under current IFRS.

IFRS 9 Financial Instruments

The new standard includes revised guidance on the classification and measurement of financial assets, including impairment, and supplements the new hedge accounting principles published in 2013. IFRS 9 contains three main classification categories for financial assets measured at: amortized cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss (FVTPL). Otherwise, the new standard retains almost all of the existing requirements for financial liabilities in IAS 39 Financial Instruments: Recognition and Measurement.

The Company plans to adopt the new standard on the required effective date and will not restate comparative information. The Company will take advantage of the exemption allowing it not to restate comparative information for prior periods with respect to classification and measurement (including impairment) changes.

During 2017, the Company has performed an assessment of all three aspects of IFRS 9: classification and measurement, impairment and hedge accounting. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Company during 2018, when the Company will adopt this standard.

•

Classification and measurement

The Company does not expect a significant impact on its consolidated statement of financial position on applying the classification and measurement requirements of IFRS 9, trade receivables and investments are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Company analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the criteria for amortized cost measurement under IFRS 9 therefore; reclassification for these instruments is not required.

There will be no impact on the Company’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the Company as of December 31, 2017 does not have any such liabilities.

•

Impairment

The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is the case under IAS 39. The Company will apply the simplified approach and record lifetime expected losses on all trade receivables. The Company does not expect a material increase in the provision for impairment of accounts receivable due the application this method.

•

Hedge accounting

As of December 31, 2017, the Company does not have financial instruments designated under hedge accounting.

•

Other

The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Company’s disclosures about its financial instruments particularly in the year of the adoption of the new standard.

Amendments to IFRS 9 Financial instruments

This amendment was issue in October, 2017 and confirm when a financial liability measured at amortized cost is modified without this resulting in de-recognition, a gain or loss should be recognized immediately in profit or loss.

The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. This means that the difference cannot be spread over the remaining life of the instrument which may be a change in practice from IAS 39.

The Amendment is mandatory for annual reporting periods beginning on or after January 1, 2019, with earlier application permitted. The Amendment is required to be applied retrospectively.

The Amendment provides specific transition provisions if it is only applied in 2019 rather than in 2018 with the remainder of IFRS 9:

•

The Company must revoke its application of the fair value option if, as a result of the Amendment, an accounting mismatch no longer exists, and may newly designate a financial asset or liability to be measured at fair value though profit or loss if a new accounting mismatch is created.

•

Restatement of prior periods is not required and is only permitted if such restatement is possible without the use of hindsight.

•

Additional disclosures must be made to describe the effect of applying the Amendment and any changes to the use of the fair value option.

During 2018, the Company will assess the impact on its consolidated financial statements resulting from the application of this amendment.

IFRS 16 Leases

This standard was issued in January 2016 and sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 eliminates the classification of leases as either operating leases or finance leases for a lessee. Instead all leases are treated in a similar way to finance leases under IAS 17 Leases.

The lessee is required to recognize the present values of future lease payments and showing them either as lease assets (right-of-use assets “ROU”) or together with property, plant and equipment, and also recognizing a financial liability representing its obligation to make future lease payments. Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the ROU. IFRS 16 does not require a company to recognize assets and liabilities for (a) short-term leases (i.e. leases of 12 months or less), and (b) leases of low-value assets.

As a lessee, the Company can either apply the standard using a:

•

retrospective approach; or

•

modified retrospective approach with optional practical expedients.

As a lessor, the Company´s accounting under IFRS 16 is substantially unchanged from today’s accounting under IAS 17.

The new standard is effective for annual periods beginning on or after January 1, 2019, early adoption is permitted for entities that apply IFRS 15. The Company is evaluating some implementation topics, including, but not limited to:

•

assessment of the maintenance obligation as part of the ROU of the leased aircraft

•

assessment of the lease term

•

contracts in the airports, hub and non-hub, about if there is genuine right of substitution of the airport

•

determination of the discount rate in the calculation of ROU.

The Company is assessing the potential impact on its consolidated financial statements but has not yet completed its detailed assessment. The actual impact of applying IFRS 16 on its initial application will depend of future economic conditions, including the Company’s borrowing rate at January 1, 2019, the composition of the Company’s lease portfolio at that date, the latest assessment about the exercise of renewal options, among others.

The most significant impact identified is that the Company will recognize new assets and liabilities for its aircraft under operating leases. As of December 31, 2017, the Company’s future minimum lease payments under non-cancellable aircraft operating leases amount to $400.8 million on an undiscounted basis (see note 14). No significant impact is expected for the Company’s finance leases.

In the case of operating leases of facilities as real estate, airport and terminals, sales offices, and general offices, the Company is assessing which of these contracts meet the definition of a lease within the scope of IFRS 16.

In 2018, the Company will continue to assess the potential effect of IFRS 16 on its consolidated financial statements and covenant compliance, and expects to disclose quantitative information before adoption. The Company intends to apply the retrospective transition approach and will restate comparative amounts for the year prior to first adoption.

IFRIC 23 Uncertainty over income tax treatments

This IFRIC was issue in June, 2017 and clarifies how the recognition and measurement requirements of IAS 12 Income taxes, are applied where there is uncertainty over income tax treatments.

The IFRIC had clarified previously that IAS 12, not IAS 37 ‘Provisions, contingent liabilities and contingent assets’, applies to accounting for uncertain income tax treatments. IFRIC 23 explains how to recognize and measure deferred and current income tax assets and liabilities where there is uncertainty over a tax treatment.

An uncertain tax treatment is any tax treatment applied by an entity where there is uncertainty over whether that treatment will be accepted by the tax authority. For example, a decision to claim a deduction for a specific expense or not to include a specific item of income in a tax return is an uncertain tax treatment if its acceptability is uncertain under tax law. IFRIC 23 applies to all aspects of income tax accounting where there is an uncertainty regarding the treatment of an item, including taxable profit or loss, the tax bases of assets and liabilities, tax losses and credits and tax rates.

The Interpretation is applicable for annual reporting periods beginning on or after January 1, 2019; it provides a choice of two transition approaches:

•

full retrospective using IAS 8, only if the application is possible without the use of hindsight; or

•

modified retrospective with the cumulative effect of the initial application recognized as an adjustment to equity on the date of initial application. In this approach, comparative information is not restated.

During 2018, the Company will continue to assess the possible impact, if any, on its consolidated financial statements resulting from the application of this amendment.

Amendments to IFRS 2 Share-based payments

This amendment address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled.

The amendment is effective for annual periods beginning on or after January 1, 2018. Based on the actual share-based payment plans, the Company does not expect any impact.

Amendments to IFRS 4 Insurance contracts

The amended standard will give all companies that issue insurance contracts the option to recognize in other comprehensive income, rather than in profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is issued; and give companies whose activities are predominantly connected with insurance an optional temporary exemption from applying IFRS 9 until 2021. The entities that defer the application of IFRS 9 will continue to apply the existing standard IAS 39.

The amendment is effective for annual periods beginning on or after January 1, 2018, and will not be relevant to the Company.

Amendment to IAS 40 Investment property

These amendments clarify when an entity should transfer property into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use.

The amendment is effective for annual periods beginning on or after January 1, 2018, and is not expected to be relevant to the Company, since does not have any investment property.

Annual Improvements Cycle 2014–2016

These amendments impact two standards:

•

IFRS 1,’ First-time adoption of IFRS’, regarding the deletion of short-term exemptions for first-time adopters regarding IFRS 7, IAS 19, and IFRS 10 effective January, 1 2018.

•

IAS 28,’Investments in associates and joint ventures’ regarding measuring an associate or joint venture at fair value effective January, 1 2018.

The amendments are not expected to be relevant to the Company.

Amendment to IAS 28 - Investments in Associates and Joint Ventures

This Amendment was issue in October, 2017 and clarify that companies account for long-term interests in an associate or joint venture to which the equity method is not applied using IFRS 9.

The Amendment is mandatory for annual reporting periods beginning on or after January 1, 2019, and is not expected to be relevant to the Company.

IFRS 17 Insurance Contracts

In May 2017, the IASB issued IFRS 17 Insurance Contracts (IFRS 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (IFRS 4) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and reinsurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features.

IFRS 17 is effective for reporting periods beginning on or after January 1, 2021 with comparative figures required. Early application is permitted; provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. This standard is not applicable to the Company.

IFRIC 22 Foreign currency transactions and advance consideration

This IFRIC addresses foreign currency transactions or parts of transactions where there is a consideration that is denominated or priced in a foreign currency. The interpretation provides guidance for when a single payment/receipt is made as well as for situations where multiple payments/receipts are made. The guidance aims to reduce diversity in practice.

The amendment is effective for annual periods beginning on or after January 1, 2018, since the Company’s current practice is in line with the Interpretation, the Company does not expect any effect on its consolidated financial statements.

Segment reporting

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Segment reporting

7.	Segment reporting

The Company’s business activities are conducted as one operating segment – Air transportation, the reporting results of which are regularly reviewed by management for purposes of analyzing its performance and making decisions about resource allocations. Information concerning operating revenue by geographic area for the period ended December 31 is as follows (in millions):


	2017		2016		2015
North America	$	610.0	$	638.9	$	559.6
Panama		413.5		371.6		374.2
Central America and the Caribbean		275.3		273.6		289.0
Brazil		363.7		245.4		290.6
Colombia		197.9		146.1		174.2
Others South America		667.2		546.2		566.1

	$	2,527.6	$	2,221.8	$	2,253.7

The Company attributes revenue to the geographic areas based on point of sales. Our tangible assets and capital expenditures consist primarily of flight and related ground support equipment, which is mobile across geographic markets and, therefore, has not been allocated.

Cash and cash equivalents

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Cash and cash equivalents

8.	Cash and cash equivalents


	2017		2016
Checking and saving accounts	$	145,283	$	173,943
Time deposits of no more than ninety days		30,000		57,500
Overnight deposits		63,157		99,933
Cash on hand		352		311

	$	238,792	$	331,687

As of December 31, 2017 and 2016, the Company’s cash and cash equivalents are free of restriction or charges that could limit its availability.

Time deposits earned interest based on rates determined by the banks in which the instruments are held, ranging between 1.49% and 1.58% for U.S. dollars investments until December 2017 (2016: between 0.42% and 1.00%).

Investments

12 Months Ended

Dec. 31, 2017

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Investments

9.	Investments


	2017		2016
Short-term
Time deposits between 90 and 365 days	$	705,108	$	483,002

	$	705,108	$	483,002

Long-term
Time deposits of more than 365 days	$	65,953	$	953

	$	65,953	$	953

Time deposits earned interest based on rates determined by the banks in which the instruments are held. The use of the time deposits depends on the cash requirements of the Company and bear interest at rates ranging between 1.37% and 3.75% for investments denominated in U.S. dollars (2016: between 1.00% and 3.75%).

During 2017, the Company acquired time deposits denominated in U.S. dollars with a contractual maturity of more than 365 days and bear interest at rates ranging between 3.20% and 3.75%.

Accounts receivable

12 Months Ended

Dec. 31, 2017

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Accounts receivable

10.

Accounts receivable


	2017			2016
Credit cards	$	64,420		$	65,052
Travel agencies and airlines clearing house		36,640			36,318
Cargo, mail and other travel agencies		6,798			9,278
Trade receivables due from related parties		318			499
Government		6,216			1,957
Other		7,366			6,735

		121,758			119,839
Provision for impairment		(3,673	)		(3,739	)

	$	118,085		$	116,100

Current		115,641			114,143
Non-current		2,444			1,957

	$	118,085		$	116,100

See detail of trade receivables due from related parties in note 23.

As of December 31, 2017, the Company maintained a non-current account receivable with a government institution in the amount of $2.4 million (2016: $1.9 million).

The maturity of the portfolio at each year-end is as follows:


	2017		2016
Neither past due nor impaired	$	115,685	$	110,524
Past due 1 to 30 days		1,286		711
Past due 31 to 60 days		617		914
More than 60 days		497		3,951

		118,085		116,100
Impaired		3,673		3,739

Total accounts receivable	$	121,758	$	119,839

Neither past due nor impaired accounts receivable are those that do not show delays in their payments, according to the payment date agreed with the customer.

Movements in the provision for impairment of receivables are as follows:


	2017			2016			2015
Balance at beginning of year	$	(3,739	)	$	(2,997	)	$	(3,691	)
(Additions) reversals		(879	)		(1,511	)		71
Write-offs		945			769			623

Balance at end of year	$	(3,673	)	$	(3,739	)	$	(2,997	)

Expendable parts and supplies

12 Months Ended

Dec. 31, 2017

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Expendable parts and supplies

11.

Expendable parts and supplies


	2017			2016
Material for repair and maintenance	$	79,424		$	71,876
Other inventories		3,058			3,101

		82,482			74,977
Allowance for obsolescence		(657	)		(475	)

	$	81,825		$	74,502

Expendable parts and supplies recognized as an expense in the accompanying consolidated statement of profit or loss under “Maintenance, materials and repairs” amount to $ 28.1 million, $24.7 million and $27.2 million, for the years ended December 31, 2017, 2016 and 2015, respectively.

Prepaid expenses

12 Months Ended

Dec. 31, 2017

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Prepaid expenses

12.

Prepaid expenses


	2017		2016
Prepaid taxes	$	38,672	$	39,153
Prepaid commissions		5,297		4,649
Prepaid rent		7,479		6,707
Prepaid insurance		207		772
Prepaid other		19,896		33,524

	$	71,551	$	84,805

Current		45,421		58,407
Non-current		26,130		26,398

	$	71,551	$	84,805

Prepaid taxes include $12.5 million of tax advance of VAT and withholdings taxes (2016: $12.7 million). The non-current portion of prepaid expenses corresponds to $12.9 million (2016: $14.8 million) of advance payments of taxes which are credited to future payments from tax dividends in Panama and $13.2 million in tax credits (2016: $11.5 million).

“Prepaid other” mainly includes operating expenses related to management of fuel and maintenance services. As of December 31, 2017, “Prepaid other” includes $4.0 million (2016: $20.0 million) paid in advance to GE Engines Services, LLC, for the purpose of future maintenance services related to aircraft engines.

Property and equipment

12 Months Ended

Dec. 31, 2017

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Property and equipment

13.

Property and equipment


	Land		Flight equipment			Purchase deposits for flight equipment			Ramp and miscellaneous			Furniture, fixtures, equipment a and other			Leasehold improvements			Construction in progress			Total
Cost -
Balance at January 1, 2015	$	6,301	$	2,707,019		$	321,175		$	39,740		$	25,308		$	28,580		$	7,716		$	3,135,839
Transfer of pre-delivery payments		—		161,169			(161,169	)		—			—			—			—			—
Additions		—		178,582			83,064			2,827			2,269			3,190			9,751			279,683
Disposals		—		(16,773	)		—			(25	)		(864	)		(881	)		(2,343	)		(20,886	)
Reclassifications		—		364			—			495			(766	)		4,977			(5,070	)		—

Balance at December 31, 2015	$	6,301	$	3,030,361		$	243,070		$	43,037		$	25,947		$	35,866		$	10,054		$	3,394,636
Transfer of pre-delivery payments		—		27,585			(27,585	)		—			—			—			—			—
Additions		—		94,348			34,680			3,026			1,878			73			7,435			141,440
Disposals		—		(36,812	)		—			(604	)		(1,226	)		(98	)		—			(38,740	)
Adjustments		—		100			—			—			2,363			—			—			2,463
Reclassifications		—		(340	)		—			(289	)		645			9,140			(10,896	)		(1,740	)

Balance at December 31, 2016	$	6,301	$	3,115,242		$	250,165		$	45,170		$	29,607		$	44,981		$	6,593		$	3,498,059
Transfer of pre-delivery payments		—		28,674			(28,674	)		—			—			—			—			—
Additions		—		158,557			192,196			1,461			3,392			1,614			5,246			362466
Disposals		—		(54,114	)		(54	)		(228	)		(711	)		—			—			(55,107	)
Reclassifications		—		3,870			—			1,950			(4,764	)		3448			(6,061	)		(1,557	)

Balance at December 31, 2017	$	6,301	$	3,252,229		$	413,633		$	48,353		$	27,524		$	50,043		$	5,778		$	3,803,861
Accumulated depreciation -
Balance at January 1, 2015	$	—	$	(567,341	)	$	—		$	(26,560	)	$	(18,197	)	$	(18,405	)	$	—		$	(630,503	)
Depreciation for the year		—		(117,385	)		—			(3,214	)		(2,774	)		(4,229	)		—			(127,602	)
Disposals		—		13,341			—			23			581			177			—			14,122
Reclassifications		—		(39	)		—			1,202			(1,501	)		338			—			—

Balance at December 31, 2015	$	—	$	(671,424	)	$	—		$	(28,549	)	$	(21,891	)	$	(22,119	)	$	—		$	(743,983	)
Depreciation for the year		—		(132,802	)		—			(3,724	)		(2,284	)		(4,246	)		—			(143,056	)
Disposals		—		13,587			—			524			1,220			12			—			15,343
Adjustments		—		(14	)		—			—			(2,667	)		—			—			(2,681	)
Reclassifications		—		(99	)		—			(116	)		41			174			—			—

Balance at December 31, 2016	$	—	$	(790,752	)	$	—		$	(31,865	)	$	(25,581	)	$	(26,179	)	$	—		$	(874,377	)
Depreciation for the year		—		(145,209	)		—			(3,811	)		(2,192	)		(4,505	)		—			(155,717	)
Disposals		—		51,233			—			200			704			—			—			52,137
Reclassifications		—		(1,335	)		—			(1,540	)		4,110			(1,235	)		—			—

Balance at December 31, 2017	$	—	$	(886,063	)	$	—		$	(37,016	)	$	(22,959	)	$	(31,919	)	$	—		$	(977,957	)
Carrying amounts -
At December 31, 2015	$	6,301	$	2,358,937		$	243,070		$	14,488		$	4,056		$	13,747		$	10,054		$	2,650,653

At December 31, 2016	$	6,301	$	2,324,490		$	250,165		$	13,305		$	4,026		$	18,802		$	6,593		$	2,623,682

At December 31, 2017	$	6,301	$	2,366,166		$	413,633		$	11,337		$	4,565		$	18,124		$	5,778		$	2,825,904

Flight equipment comprises aircraft, engines, aircraft components and, major maintenance.

The amount of $192.2 million corresponds to the advance payments on aircraft purchase contracts during 2017 (2016: $34.7 million), which include $1.8 million of borrowing costs capitalized during the year ended December 31, 2017 (2016 and 2015: Nil). The rate used to determine the amount of borrowing costs eligible for capitalization was 2.14%, which is the interest rate of the specific borrowing (see note 18). As of December 31, 2017, the carrying amount of the asset acquired under finance leases is $535.5 million (2016: $463.4 million).

Aircraft with a carrying value of $1.7 billion are pledged as collateral for the obligation of the special purpose entities as of December 31, 2017 and 2016.

As of December 31, 2017 and 2016, construction in progress mainly comprises remodeling projects for airport facilities and offices, and the construction of the new hangar.

During 2016, as a result of the annual review of the useful life, the Company concluded that airframe and engines are now expected to remain in operation for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years. The effects of these changes on actual and expected depreciation expense of the current fleet, included in the operational expenses in the consolidated statement of profit or loss, amounts to $11.8 million per year.

Leases

12 Months Ended

Dec. 31, 2017

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Leases

14.

Leases

Finance leases

The Company entered into finance leases of aircraft through Japanese Operating Leases with Call Option (JOLCO) arrangements. These arrangements establish semi-annual payments of obligations, and have a minimum lease term of 10 years, with a purchase option at the end of the lease.

As of December 31, 2017, the scheduled future minimum lease payments required under finance leases are as follows:


	Future minimum lease payments		Interest		Present value of minimum lease payments
Up to one year	$	46,274	$	16,180	$	45,416
One to five years		186,344		54,830		169,383
Over five years		388,005		26,924		310,388

Total minimum lease payments	$	620,623	$	97,934	$	525,187

As of December 31, 2016, the scheduled future minimum lease payments required under finance leases are as follows:


	Future minimum lease payments		Interest		Present value of minimum lease payments
Up to one year	$	39,016	$	14,524	$	38,407
One to five years		152,880		48,979		139,322
Over five years		366,131		32,727		288,638

Total minimum lease payments	$	558,027	$	96,230	$	466,367

Assets acquired under finance leases are classified under property and equipment, and the finance leases are classified as long-term debt (see note 18).

During the years ended 2017 and 2016, the Company’s non-cash investing and financing transactions include the acquisition of new aircraft that are financed using a JOLCO structure in the amounts of $89.0 million and $46.0 million, respectively.

Operating leases

As of December 31, 2017, the scheduled future minimum lease payments required under aircraft and non-aircraft operating leases that have initial non-cancellable lease terms in excess of one year are as follows:


	Aircraft		Others
Up to one year	$	111,568	$	14,988
One to five years		270,310		74,943
More than five years		18,957		17,509

Total minimum lease payments	$	400,835	$	107,440

Total lease expense amount to $134.5 million for the year ended December, 31 2017 (2016: $138.8 million and 2015: $142.2 million) included under “Aircraft rentals and other rentals” in the accompanying consolidated statement of profit or loss.

The Company leases some of the aircraft it operates under long-term lease agreements with an average duration of 10 years. Aircraft under operating leases may be renewed in accordance with management’s business plan.

Other leased assets include real estate, airport and terminal facilities, sales offices, maintenance facilities, and general offices. Most lease agreements include renewal options; a few have escalation clauses, but no purchase options.

Because the lease renewals are not considered to be reasonably assured, the lease payments that would be due during the renewal periods are not included in the determination of lease expenses until the leases are renewed. Leasehold improvements are amortized over the contractually committed lease term, which does not include the renewal periods.

Since 2015, the Company is the lessor of two aircraft, as part of the strategy of fleet management, in order to optimize the use of aircraft in relation to the routes scheduled for that year. Each lease is scheduled to expire in 2020. The carrying amount of the two aircraft under operating leases is up to $37.0 million (2015: $41.6 million).

Total lease income amounts to $3.5 million for the year ended December 31, 2017 (2016: $3.5 million and 2015: $1.9 million), included under “Other operating revenue” in the accompanying consolidated statement of profit or loss.

As of December 31, 2017, future minimum lease receivables under non-cancellable leases are as follows:


	2017		2016
Up to one year	$	3,480	$	3,480
One to five years		5,075		8,555

Total minimum lease rental payments	$	8,555	$	12,035

Net pension assets

12 Months Ended

Dec. 31, 2017

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Net pension assets

15.

Net pension assets


	2017			2016
Pension assets	$	23,794		$	25,946

Post-employment benefits		(19,997	)		(16,498	)
Other employee benefits		(612	)		(622	)

Total employee benefits liability	$	(20,609	)	$	(17,120	)

Net pension asset	$	3,185		$	8,826

In accordance with Panamanian law, the Company contributes to the following defined benefit plans:

Seniority premium plan: it covers all employees eligible for the seniority premium as provided by the Company. Employees are fully vested in their benefit upon leaving the Company. The benefits consist of 1.92% of eligible earnings accumulated for each year of service.

Indemnity plan: it covers all employees eligible for the indemnity plan as provided by the Company. The benefits consist of 6.54% of eligible earnings accumulated for each year of service.

The actuarial liability is recognized for the legal obligation under the formal terms of the plan, and for the implied projections as required under IAS 19R. These actuarial projections do not constitute a legal obligation for the Company.

The following table summarizes the components of net benefit expense included under “Wages, salaries, benefits and other employees ‘expenses” in the accompanying consolidated statement of profit or loss:


	Defined benefit obligation			Fair value of assets		Defined benefit assets (liability)
Year ended December 31,2017
Current service cost		(1,767	)		—		(1,767	)
Interest cost on net benefit obligation		(568	)		778		210

Net benefit expense	$	(2,335	)	$	778	$	(1,557	)


	Defined benefit obligation			Fair value of assets		Defined benefit assets (liability)
Year ended December 31,2016
Current service cost		(1,724	)		—		(1,724	)
Interest cost on net benefit obligation		(516	)		689		173

Net benefit expense	$	(2,240	)	$	689	$	(1,551	)


	Defined benefit obligation			Fair value of assets		Defined benefit assets (liability)
Year ended December 31,2015
Current service cost		(1,638	)		—		(1,638	)
Interest cost on net benefit obligation		(422	)		532		110

Net benefit expense	$	(2,060	)	$	532	$	(1,528	)

The following table shows reconciliation from the opening balance to the closing balances for net pension asset and its components:


	Defined benefit obligation			Fair value of assets			Other employee benefits liability			Defined benefit assets (liability)
At January 1, 2015	$	(12,778	)	$	18,559		$	(3,259	)	$	2,522
Current service cost		(1,638	)		—			—			(1,638	)
Interest cost		(422	)		532			—			110
Return on plan assets greater (less)					—						—
than discount rate		—			701						701
Experience (gain) loss		(809	)		—			—			(809	)
Invesment return		—			105			—			105
Gross benefits paid		—			(599	)		—			(599	)
Assumption changes		222			—			—			222
Employer contributions		—			3,749			—			3,749
Benefits paid		957			(774	)		—			183
Adjustments		—			—			1,504			1,504

At December 31, 2015	$	(14,468	)	$	22,273		$	(1,755	)	$	6,050
Current service cost		(1,724	)		—			—			(1,724	)
Interest (cost) income		(516	)		689			—			173
Return on plan assets greater (less) than discount rate		—			518						518
Experience gain (loss)		(1,052	)		—			—			(1,052	)
Invesment return		—			27			—			27
Gross benefits paid		—			(513	)		—			(513	)
Assumption changes		(67	)		—			—			(67	)
Employer contributions		—			3,970			—			3,970
Benefits paid		1,329			(1,018	)		(75	)		236
Adjustments		—			—			1,208			1,208

As of December 31, 2016	$	(16,498	)	$	25,946		$	(622	)	$	8,826
Current service cost		(1,767	)		—			—			(1,767	)
Interest (cost) income		(568	)		778			—			210
than discount rate		—			(21	)		—			(21	)
Experience gain (loss)		(2,033	)		—			—			(2,033	)
Invesment return		—			88			—			88
Gross benefits paid		—			(440	)		—			(440	)
Assumption changes		(226	)		—			—			(226	)
Employer contributions		—			(1,677	)		—			(1,677	)
Benefits paid		1,095			(880	)		—			215
Adjustments		—			—			10			10

As of December 31, 2017	$	(19,997	)	$	23,794		$	(612	)	$	3,185

As of December 31, 2017 and 2016, plan assets are comprised totally by fixed term deposits. As of December 31, 2017 employer contributions is a net amount of regular contributions by $3.5 million and retirement of interest earned by $5.2 million.

For the year ended December 31, 2017 actuarial loss of $2.0 million (2016: $1.1 million and 2015:$2.2 million) where recognized in other comprehensive income

The following were the principal actuarial assumptions at the reporting date:


	2017			2016			2015
Economic assumptions -
Discount rate		3.15	%		3.37	%		3.45	%
Compensation - salary increase		4	%		4	%		4	%
Demographic assumptions -
Mortality		RP - 2000 no collar
Termination		13% all ages
Retirement
Males		62 years
Females		57 years

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amount shown below:


	December, 31 2017						December, 31 2016						December, 31 2015
	Increase			Decrease			Increase			Decrease			Increase			Decrease
Discount rate (0.5% movement)	$	(506	)	$	537		$	(410	)	$	434		$	(366	)	$	388
Salary rate (0.5% movement)		99			(89	)		122			(117	)		114			(109	)

The following payments are expected contributions to the defined benefit plan in future years:


	2017		2016
Up to one year	$	3,424	$	2,823
One to five years		10,794		9,195
Over five years		11,401		9,453

Total expected payments	$	25,619	$	21,471

Intangible assets

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Intangible assets

16.

Intangible assets


			Other intangibles assets
	Goodwill		License and software rights			Intangible in process			Total
Cost -
Balance at January 1, 2015	$	20,380	$	37,663		$	24,474		$	82,517
Additions		—		121			19,297			19,418
Disposals		—		(65	)		—			(65	)
Reclassifications		—		26,090			(26,090	)		—

Balance at December 31, 2015		20,380		63,809			17,681			101,870
Additions		—		73			14,401			14,474
Disposals		—		(1,546	)		—			(1,546	)
Impairment loss		—		—			(5,931	)		(5,931	)
Reclassifications		—		11,813			(10,073	)		1,740

Balance at December 31, 2016		20,380		74,149			16,078			110,607
Additions		—		1,783			16,898			18,681
Disposals		—		(4,891	)		—			(4,891	)
Reclassifications		—		3,642			(2,085	)		1,557

Balance at December 31, 2017		20,380		74,683			30,891			125,954
Amortization -
Balance at January 1, 2015	$	—	$	(25,222	)	$	—		$	(25,222	)
Amortization for the year		—		(7,287	)		—			(7,287	)
Disposals		—		65			—			65

Balance at December 31, 2015		—		(32,444	)		—			(32,444	)
Amortization for the year		—		(10,207	)		—			(10,207	)
Disposals		—		1,546			—			1,546

Balance at December 31, 2016		—		(41,105	)		—			(41,105	)
Amortization for the year		—		(8,628	)		—			(8,628	)
Disposals		—		4,894			—			4,894

Balance at December 31, 2017		—		(44,839	)		—			(44,839	)
Carrying amounts -
At December 31, 2015	$	20,380	$	31,365		$	17,681		$	69,426

At December 31, 2016	$	20,380	$	33,044		$	16,078		$	69,502

At December 31, 2017	$	20,380	$	29,844		$	30,891		$	81,115

Goodwill

The Company performed its annual impairment test in September 2017 and the recoverable amount was estimated at $4.4 billion (2016: $3.5 billion), an amount far in excess of the $20.4 million of goodwill recorded.

The cash flows beyond the five-year period are extrapolated using a 3.1% growth rate. It was concluded that no impairment charge is necessary since the estimated recoverable amount of the CGU exceed its carrying value by approximately 92%.

Key assumptions used in value in use calculations

The calculations of value in use of the CGU are sensitive to the following main assumptions:

•

Revenue – the Company calculated the projected passenger revenue based on the current beliefs, expectations, and projections about future events and financial trends affecting its business.

•

Cash flows - determination of the terminal value is based on the present value of the Company’s cash flows in perpetuity. When estimating the cash flows for use in the residual value calculation, it is essential to clearly define the normalized cash flows level, the appropriate discount rate for the degree of risk inherent in that return stream, and a constant future growth rate for the related cash flows. To estimate the value, the Gordon Growth Model was used.

•

Discount rates – The selected pre-tax rate of 12.92% represents the current market assessment of the risks specific to the CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segment and is derived from its pre-tax weighted average cost of capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company’s investors. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service. Segment-specific risk is incorporated by applying individual beta factors. The beta factors are evaluated annually based on publicly available market data.

Sensitivity to changes in assumptions

•

The Company estimated that a reduction to 11.5% or an increase to 13.5% in the discount rate would not cause the carrying amounts to exceed the recoverable amount.

Other intangible assets

Intangible assets in process

During 2016, the Company evaluated the recoverability of the development cost generated in a project in process related to some systems; as a result of this evaluation, the Company recognized an impairment of $5.9 million of incurred cost that will no longer generate probable future economic benefits.

Intangible assets in process as of December 31, 2017 and 2016 mainly comprise improvements to the tickets reservation system, and other operational system.

During 2016, the Company capitalized an $11.8 million of a new operating and administrative systems and other program for ConnectMiles.

Other assets

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Other assets

17.

Other assets


	2017		2016
Current -
Interest receivable	$	10,443	$	6,741
Other		1,258		909

		11,701		7,650

Non-current -
Guarantee deposits		14,568		10,401
Deposits for litigation		12,390		12,482
Other		4,182		4,182

		31,140		27,065

	$	42,841	$	34,715

Guarantee deposits are mainly amounts paid to fuel suppliers, as required at the inception of the agreements (see note 23).

Deposit for litigation is cash deposited into the escrow account until the related dispute is settled (see note 21).

Debt

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Debt

18.

Debt


	2017
	Due through		Effective rates ranged		Carrying Amount
Long-term fixed rate debt		2025		1.81% to 5.58%	$	626,150
Long-term variable rate debt		2027		1.54% to 3.04%		420,634
Loans payables		2018		2.33% to 2.58%		127,797

						1,174,581
Current maturities						(298,462	)

Long-term debt					$	876,119


	2016
	Due through		Effective rates ranged		Carrying Amount
Long-term fixed rate debt		2025		1.81% to 5.58%	$	702,454
Long-term variable rate debt		2026		0.90% to 2.23%		398,178
Loans payables		2017		1.88% to 1.98%		83,500

						1,184,132
Current maturities						(222,718	)

Long-term debt					$	961,414

Maturities of long-term debt for the next five years are as follows:


Year ending December 31, 2018		298,462
2019		167,191
2020		118,376
2021		96,070
2022		89,144
Thereafter		405,338

	$	1,174,581

As of December 31, 2017, long-term fixed rate debt included $394.2 million (2016: $416.3 million) and long-term variable debt included $128.4 million corresponding to finance leases (2016: $45.4 million) (see note 14).

As of December 31, 2017 the Company had $372.0 million (2016: $446.5 million) of outstanding indebtedness that is owed to financial institutions under financing arrangements guaranteed by the Export-Import Bank of the United States. The Export-Import Bank guarantees support 80% of the net purchase price of the aircraft and are secured with a first priority mortgage on the aircraft in favor of a security trustee on behalf of Export-Import Bank.

The Company’s Export-Import Bank supported financings are amortized on a quarterly basis, are denominated in U.S. dollars, and originally bear interest at a floating rate linked to LIBOR. The Export-Import Bank guaranteed facilities typically offer an option to fix the applicable interest rate. The Company has exercised this option with respect to $231.9 million as of December 31, 2017 (2016: $286.1 million).

In the past, the Company has extended the maturity of some of its aircraft financing to 15 years through the use of a “Stretched Overall Amortization and Repayment” (SOAR), structure which provides serial draw-downs, calculated to result in a 100% loan accreting to a recourse balloon at the maturity of the Export-Import Bank guaranteed loan. The Company currently has 4 aircraft finance under SOAR structure which had an outstanding balance of $28.3 million as of December 31, 2017 (2016: $24.8 million).

As of December 31, 2017, the loan payable in the amount of $127.8 million (2016: $83.5 million) resulted from the use of the lines of credits (see note 27 for information regarding financial covenants related to the Company’s financial agreement).

The detail of finance cost and income is as follows:


	2017			2016			2015
Finance income -
Interest income on short-term bank deposits	$	1,499		$	675		$	3,662
Interest income on investment		16,440			12,325			22,285

	$	17,939		$	13,000		$	25,947

Finance cost -
Interests expense on bank loans	$	(32,599	)	$	(32,647	)	$	(30,866	)
Interest on factoring		(2,624	)		(4,377	)		(2,289	)

	$	(35,223	)	$	(37,024	)	$	(33,155	)

Changes in liabilities arising from financing activities:


								Non-cash
	2016		Cash flows			New debt		transactions		2017
Debt
Obligations under finance leases	$	461,797	$	(28,107	)	$	—	$	89,000	$	522,690
Debt		722,335		(218,242	)		147,798		—		651,891

Total liabilities from
financing activities	$	1,184,132	$	(246,349	)	$	147,798	$	89,000	$	1,174,581

During 2017, the Company’s non-cash investing and financing transactions are comprised of $89.0 million related to the acquisition of new aircraft that are financed using the JOLCO structure (see note 14).

Trade, other payables and financial liabilities

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Trade, other payables and financial liabilities

19.

Trade, other payables and financial liabilities


	2017		2016
Account payables	$	116,554	$	104,176
Account payables to related parties		12,880		8,681

		129,434		112,857
Other payables and financial liabilities - Fuel derivative instruments		—		2,801
Others		1,156		4,779

		1,156		7,580

	$	130,590	$	120,437

See details of the account due to related parties in note 23.

The Company used to engage on fuel derivative instruments, with the purpose of covering the risk of potential sudden and significant increases in jet fuel prices. However, the use of these instruments does not satisfy the requirement for hedge accounting. There are no fuel derivative instruments outstanding at December, 2017 (see note 28.1).

Accrued expenses payable

12 Months Ended

Dec. 31, 2017

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Accrued expenses payable

20.

Accrued expenses payable


	2017		2016
Accruals and estimations	$	9,059	$	5,849
Labor related provisions		44,188		31,785
Liability for social security contributions		6,432		5,700
Other		642		1,028

	$	60,321	$	44,362

As of December 31, 2017 accruals and estimations include the estimated balance of the current portion of the provision for return condition of $4.9 million (2016: $2.3 million) (see note 21).

As of December 31, 2017, accruals and estimations include the estimated balance of the current portion of the provision for maintenance of $4.2 million (2016: $3.5 million) (see note 21).

Labor related provisions include a profit-sharing program for both management and non-management personnel. For members of management, profit-sharing is based on a combination of the Company’s performance as a whole and the achievement of individual goals. Profit-sharing for non-management employees is based solely on the Company’s performance. The accrual at year-end represents the amount expensed for the current year, which is expected to be settled within 12 months.

Other long-term liabilities

12 Months Ended

Dec. 31, 2017

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Other long-term liabilities

21.

Other long-term liabilities


	Provision for litigations			Provision for return condition			Other long- term liabilities			Total
Balance at January 1, 2017	$	14,318		$	58,299		$	41,651		$	114,268
Increases		1,021			33,060			463			34,544
Used		—			(5,824	)		(3,325	)		(9,149	)
Reclassification		—			—			(7,235	)		(7,235	)
Effect of movements in exchange rates		(187	)		—			—			(187	)

Balance at December 31, 2017	$	15,152		$	85,535		$	31,554		$	132,241

Current		—			4,897			4,162			9,059
Non-current		15,152			80,638			27,392			123,182

	$	15,152		$	85,535		$	31,554		$	132,241

Provision for litigation

Provisions for litigation in process and expected payments related to labor legal cases.

The Company is the plaintiff in an action in October 2003 against Empresa Brasileira de Infraestrutura Aeroportuária (“INFRAERO”), Brazil’s airport operator, the legality of the Additional Airport Tariffs (Adicional das Tarifas Aeroportuárias, or ATAERO), which is a 50% surcharge imposed on all airlines which fly to Brazil. Similar suits have been filed against INFRAERO by other major airline carriers. In this case, the court of first instance ruled in favor of INFRAERO and the Company has appealed the judgment. While the litigation is still pending, the Company continues to pay the ATAERO amounts due into an escrow account and as of December 31, 2017, the aggregate amount in such account totaled $12.4 million (2016: $12.5 million).

In the event that the Company receives a final unfavorable judgment it will be required to release the escrowed fund to INFRAERO and will not be able to recover such amounts. The Company does not, however, expect the release of such amounts to have a material impact on its financial results since these amounts already had been expensed.

Provision for return condition

For operating leases, the Company is contractually obliged to return aircraft in an agreed-upon condition. The Company accrues for restitution costs related to aircraft held under operating leases throughout the duration of the lease. As of December 31, 2017 and 2016, the Company presented the estimated balance of the current portion of this provision as “Accrued expenses payable” in the consolidated statement of financial position (see note 20).

Other long-term liabilities

Other long-term liabilities include principally the provision for maintenance which mainly include the accrual of formal agreements with third parties for operational maintenance events. The cost of these agreements are billed by power by the hour and charged to the consolidated statement of profit or loss. As of December 31, 2017, the provision for maintenance amount to $28.9 million and the Company has presented the estimated balance of the current portion of this provision as “Accrued expenses payable” in the consolidated statement of financial position (see note 20).

Other long-term liabilities also include the provision for the non-compete agreement created for payment to senior management related to covenants not to compete with the Company in the future (relative to the $3.1 million trust fund). This provision is accounted for as “Other long-term employee benefits” under IAS 19R Employee benefits. The accrued amount is revalued annually using the projected benefit method as required by IAS 19R.

Income taxes

12 Months Ended

Dec. 31, 2017

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Income taxes

22.

Income taxes


	2017			2016			2015
Current taxes expense -
Current period	$	(43,034	)	$	(31,666	)	$	(30,435	)
Adjustment for prior period		455			(127	)		(1,228	)

	$	(42,579	)	$	(31,793	)	$	(31,663	)
Deferred taxes expenses -		—			—			—
Origination and reversal of temporary differences		(5,421	)		(6,478	)		(1,096	)

Total income tax expense	$	(48,000	)	$	(38,271	)	$	(32,759	)

During the year 2016 the deferred tax balances have been re-measured as a result of the change in Colombia’s income tax rate, 37% for short term position and 33% for long term position according to the law N°1819 published on December 29, 2016. Deferred tax expected to reverse in the year 2018, has been measured using the effective rate that will apply in Colombia for the period (37%).

The balances of deferred taxes are as follows:


	Statement						Statement of
	of financial position						profit or loss
	2017			2016			2017			2016			2015
Deferred tax liabilities
Maintenance deposits	$	(26,586	)	$	(23,790	)	$	2,796		$	2,286		$	5,866
Prepaid dividend tax		(14,103	)		(12,432	)		1,671			5,300			—
Property and equipment		(8,312	)		(7,867	)		445			(1,599	)		3,579
Other		(3,876	)		(6,013	)		(2,137	)		(10,147	)		11,692
Set off tax		2,249			5,128			2,879			16,269			(24,568	)

	$	(50,628	)	$	(44,974	)	$	5,654		$	12,109		$	(3,431	)
Deferred tax assets
Provision for return conditions	$	7,332		$	7,606		$	274		$	4,417		$	(11,203	)
Air traffic liability		1,281			1,015			(266	)		305			1,076
Fuel derivative		—			107			107			4,403			94
Other provisions		4,859			4,587			(272	)		(3,059	)		4,716
Tax loss		7,349			10,152			2,803			4,572			(14,724	)
Set off tax		(2,249	)		(5,128	)		(2,879	)		(16,269	)		24,568

	$	18,572		$	18,339		$	(233	)	$	(5,631	)	$	4,527

	$	(32,056	)	$	(26,635	)	$	5,421		$	6,478		$	1,096

At December 31, 2017 the deferred tax assets include an amount of $7.3 million ($10.1 million at December, 2016) which relates to carried forward tax losses of Copa Colombia. During 2017, the subsidiary generated a tax profit. The Company has concluded that the deferred assets will be recoverable using the estimated future taxable income based on the approved business plans for the subsidiary. The Company expects to use the remaining tax losses within the next three to five years, however, these tax losses can be carried forward indefinitely.

The aggregate amount of temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized, is $397.9 million as of December 31, 2017 (2016: $237.1 million).

Reconciliation of the effective tax rate is as follows:


	Tax rate			2017			Tax rate			2016			Tax rate			2015
Net income (loss)				$	370,023					$	334,544					$	(224,974	)
Total income tax expense					48,000						38,271						32,759

Profit (loss) excluding income tax					418,023						372,815						(192,215	)

Income taxes at Panamanian statutory rates		25.0	%		104,506			25.0	%		93,204			25.0	%		(48,054	)
Panamanian gross tax election		—			—			0.0	%		—			—			—
Effect of tax rates in non - panamanian jurisdictions		0.6	%		2,626			(2.6	%)		(9,729	)		(11.4	%)		21,986
Exemption in non - taxable countries		(14.0	%)		(58,677	)		(12.2	%)		(45,330	)		(30.0	%)		57,599
Adjustment for prior period		(0.1	%)		(455	)		0.03	%		127			(0.6	%)		1,228

Provision for income taxes		11.5	%	$	48,000			10.2	%	$	38,271			(17.0	%)	$	32,759

Accounts and transactions with related parties

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Accounts and transactions with related parties

23.

Accounts and transactions with related parties


	2017		2016
Account receivable -
Panama Air Cargo Terminal	$	254	$	—
Editora del Caribe, S.A.		32		15
Petroleos Delta, S.A.		19		5
Banco General, S.A.		12		—
Assa Compañía de Seguros, S.A.		1		479

	$	318	$	499

Account payable -
Petróleos Delta, S.A.	$	10,371	$	7,504
Assa Compañía de Seguros, S.A.		1,431		687
Desarrollos Inmobiliarios del Este, S.A.		650		421
Motta International, S.A.		81		25
Panama Air Cargo Terminal		200		—
Cable Onda, S.A.		112		21
Galindo, Arias & López		31		16
Global Brands, S.A.		4		7

	$	12,880	$	8,681

Transactions with related parties for the year ended December 31 are as follows:


Related party	Transaction	Amount of transaction 2017			Amount of transaction 2016			Amount of transaction 2015
Petróleos Delta, S.A.	Purchase of jet fuel		290,172			229,899			248,944
ASSA Compañía de Seguros, S.A.	Insurance		8,527			7,128			9,170
Desarrollo Inmobiliario del Este, S.A.	Property leasing		3,625			3,795			2,982
Profuturo Administradora de Fondos de Pensión y Cesantía	Payments		2,386			3,238			—
Motta International	Purchase		1,632			1,646			1,290
Cable Onda, S.A.	Communications		1,448			1,625			—
GBM International, Inc.	Technological support		273			272			533
Galindo, Arias & López	Legal services		373			341			271
Global Brands, S.A.	Purchase		79			67			47
Panama Air Cargo Terminal	Handling		4,869			—			—
Lubricantes Delta, S.A.	Fuel accesories		—			63			—
Editora del Caribe, S.A.	Advertising		4			(162	)		22
Banco General, S.A.	Interest income	$	(2,986	)	$	(1,284	)	$	(1,301	)

Banco General, S.A.: The Company’s controlling shareholders have a vote and a decision within the board of directors of BG Financial Group, which is the controlling company of Banco General. Likewise, Banco General, S. A. owns ProFuturo Administradora de Fondos de Pensión y Cesantía S.A., which manage the Company’s reserves for pension purposes.

Petróleos Delta, S.A.: Since 2005, the fuel company entered into a contract with the Company to meet its jet fuel needs. The contract’s term is two years, and the last contract subscribed was on June, 2016.

As of December 31, 2017, the Company maintained guarantee deposits with Petróleos Delta, S.A. in the amount of $11.8 million (2016: $7 million), recorded as “Other non-current assets” in the consolidated statement of financial position. While the Company’s controlling shareholders do not hold a controlling equity interest in Petróleos Delta, S. A., various members of the Company’s Board of Directors are also board members of Petróleos Delta, S. A.

ASSA Compañía de Seguros, S. A.: An insurance company controlled by the Company’s controlling shareholders that provide substantially all of the Company’s insurance policies.

Desarrollo Inmobiliario del Este, S. A.: The Company leases five floors consisting of approximately 121,686 square feet of the building from Desarrollo Inmobiliario, an entity controlled by the same group of investors that controls Corporación de Inversiones Aéreas, S. A. (“CIASA”). CIASA owns 100% of the class B shares of the Company.

Motta Internacional, S.A. & Global Brands, S. A.: The Company purchases most of the alcohol and other beverages served on its aircraft from Motta Internacional, S. A. and Global Brands, S. A., both of which are controlled by the Company’s controlling shareholders.

GBM International, Inc.: Provides systems integration and computer services, as well as technical services and enterprise management. A member of the Company’s Board of Directors is shareholder of GBM International, Inc.

Galindo, Arias & López: Certain partners of Galindo, Arias & López (a law firm) are indirect shareholders of CIASA and serve on the Company’s Board of Directors.

Editora del Caribe, S.A.: this Panamanian publisher is responsible for publishing the official journal of Copa Airlines “Panorama of the Americas”. A member of the Company’s Board of Directors is shareholder of Editora del Caribe, S. A.

Cable Onda, S.A.: The Company is responsible for providing television and internet broadcasting services in Panama. A member of the Company’s Board of Directors is shareholder of Cable Onda, S. A.

Panama Air Cargo Terminal: Provides cargo and courier services in Panama, an entity controlled by the same group of investors that controls CIASA.

Compensation of key management personnel

Key management personnel compensation is as follows:


	2017		2016		2015
Short-term employee benefits	$	5,133	$	3,763	$	3,570
Post-employment pension		99		72		68
Share-based payments		5,524		5,799		3,023

	$	10,756	$	9,634	$	6,661

The Company has not set aside any additional funds for future payments to executive officers, other than one pursuant to a non-compete agreement for $3.1 million established in 2006 (see note 21).

Equity

12 Months Ended

Dec. 31, 2017

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Equity

24.

Equity

Common stock

The authorized capital stock consists of 80 million shares of common stock without par value, divided into Class A shares, Class B shares, and Class C shares. As of December 31, 2017, the Company had 33,776,480 Class A shares issued (2016: 33,743,286) and 31,185,641 shares outstanding (2016: 31,112,356), 10,938,125 Class B shares issued and outstanding (2016: 10,938,125), and no Class C shares outstanding. Class A and Class B shares have the same economic rights and privileges, including the right to receive dividends.

•

Class A shares

The holders of the Class A shares are not entitled to vote at our shareholders’ meetings, except in connection with the following specific matters: (i) a transformation of the Company into another corporate type; (ii) a merger, consolidation, or spin-off of the Company, (iii) a change of corporate purpose; (iv) voluntarily delisting Class A shares from the NYSE; (v) and any amendment to the foregoing special voting provisions adversely affecting the rights and privileges of the Class A shares.

•

Class B shares

Every holder of Class B shares is entitled to one vote per share on all matters for which shareholders are entitled to vote. The Class B shares may only be held by Panamanians, and upon registration of any transfer of a Class B share to a holder that does not certify that it is Panamanian, such Class B share shall automatically convert into a Class A share.

Transferees of Class B shares will be required to deliver to the Company a written certification of their status as Panamanian as a condition to registering the transfer to them of Class B shares.

•

Class C shares

The Independent Directors Committee of the Board of Directors, or the Board of Directors as a whole if applicable, is authorized to issue Class C shares to the Class B holders pro rata in proportion to such Class B holders’ ownership of Copa Holdings. The Class C shares will have no economic value and will not be transferable except to Class B holders, but will possess such voting rights as the Independent Directors Committee shall deem necessary to ensure the effective control of the Company by Panamanians.

The Class C shares will be redeemable by the Company at such time as the Independent Directors Committee determines that such a triggering event shall no longer be in effect. The Class C shares will not be entitled to any dividends or any other economic rights.

Class A shares are listed on the NYSE under the symbol “CPA.” The Class B shares and Class C shares will not be listed on any stock exchange unless the Board of Directors determines that it is in the best interest of the Company to list the Class B shares on the Panama Stock Exchange.

Dividends

The payment of dividends on shares is subject to the discretion of the Board of Directors. Under Panamanian law, the Company may pay dividends only out of retained earnings and capital surplus. The Articles of Incorporation provides that all dividends declared by the Board of Directors will be paid equally with respect to all of the Class A and Class B shares.

In February 2016, the Board of Directors of the Company approved to change the dividend policy to base the calculation of the payment of yearly dividends to shareholders in an amount of up to 40% of the prior year’s annual consolidated underlying net income, distributed in equal quarterly installments upon board ratifications.

In 2017, the Company paid quarterly dividends in the amount of $0.51 per share for the first and second quarters and $0.75 per share for the third and fourth quarter (2016: $0.51 per share).

Treasury stock

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable cost net of any tax effects, is recognized as a deduction from equity and presented separately in the balance sheet. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is presented within share premium.

Since treasury stock is not considered outstanding for share count purposes, it is excluded from average common shares outstanding for basic and diluted earnings per share.

In November 2014, the Board of Directors of the Company approved a $250 million share repurchase program. Purchases will be made from time to time, subject to market and economic conditions, applicable legal requirements, and other relevant factors.

In the first quarter of 2015, the Company repurchased 167,650 shares for a total amount of $17.9 million.

During September 2015, the Company entered into an Accelerated Share Repurchase (“ASR”) with Citibank for a period of approximately three months for a total amount of $100 million. On December 15, 2015, the Bank delivered to the Company 1,960,250 shares, recognized at the settlement price of $51.01 per share.

Share-based payments

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Share-based payments

25.

Share-based payments

The Company has established equity compensation plans under which it administers restricted stock, stock options, and certain other equity-based awards to attract, retain, and motivate executive officers, certain key employees, and non-employee directors to compensate them for their contributions to the growth and profitability of the Company. Shares delivered under this award program may be sourced from treasury stock, or authorized unissued shares.

The Company’s equity compensation plans are accounted for under IFRS 2 Share-Based Payment (“IFRS 2”). IFRS 2 requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award or at fair value of the award at each reporting date, depending on the type of award granted. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the award, which is usually the vesting period.

The total compensation cost recognized for non-vested stock and options awards amounts to $7.4 million, $7.5 million, and $4.0 million in 2017, 2016, and 2015, respectively, and was recorded as a component of “Wages, salaries, benefits and other employees’ expenses” within operating expenses.

Non-vested Stock

The Company approved a non-vested stock bonus award for certain executive officers of the Company.

A summary of the terms and conditions, properly approved by the Compensation Committee of our Board of Directors, relating to the grants of the non-vested stock award under the equity compensation plan is as follows:


Grant date	Number of instruments		Vesting conditions	Contractual life
February, 2013		19,786	15% first three anniversaries	5 years
			25% fourth and 30% fifth anniversary
February, 2015		13,709	One-third every anniversary	3 years
April, 2015		4,915	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
June, 2015		10,920	One-third every anniversary	3 years
June, 2015		4,912	Third anniversary	3 years
June, 2015		6,750	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
December, 2015		429	Third anniversary	3 years
February, 2016		19,012	One-third every anniversary	3 years
February, 2016		147,000	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
February, 2016		63,000	Fifth anniversary	5 years
May, 2016		7,899	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
May, 2016		4,739	One-third every anniversary	3 years
June, 2016		25,280	One-third every anniversary	3 years
June, 2016		7,925	Third anniversary	3 years
September, 2016		6,668	Third anniversary	3 years
September, 2016		5,005	One-third every anniversary	3 years
February, 2017		22,012	One-third every anniversary	3 years
June, 2017		11,980	One-third every anniversary	3 years
June, 2017		2,237	Third anniversary	3 years

Non-vested stock awards were measured at their fair value on the grant date. For the 2017 grants, the fair value of these non-vested stock awards amounts to $107.29 per share (2016: $59.94, $63.3 and $59.94).

A summary of the non-vested stock award activity under the plan as of December 31, 2017 and 2016 with changes during these years is as follows (in number of shares):


	2017			2016			2015
Non-vested as of January 1		333,183			139,962			199,786
Granted		36,229			291,872			36,291
Vested		(62,224	)		(94,208	)		(94,704	)
Forfeited		(3,035	)		(4,443	)		(1,411	)

Non-vested as of December 31		304,153			333,183			139,962

The Company uses the accelerated attribution method to recognize the compensation cost for awards with graded vesting periods. The Company estimates that the remaining compensation cost, not yet recognized for the non-vested stock awards, amounts to $9.3 million (2016: $13.1 million), with a weighted average remaining contractual life of 2.1 years (2016: 2.8 years). Additionally, the Company estimates that the 2018 compensation cost related to these plans amounts to $4.9 million.

Stock options

In March 2007, Copa Holdings granted 35,657 equity stock options to certain named executive officers, which vested over three (3) years in yearly installments equal to one-third of the awarded stock on each of the three anniversaries of the grant date. The exercise price of the options amounts to $53.1, which was the market price of the Company’s stock at the grant date. The stock options have a contractual term of 10 years.

The weighted-average fair value of the stock options at the grant date amounts to $22.3 and was estimated using the Black-Scholes option-pricing model assuming an expected dividend yield of 0.58%, expected volatility of approximately 37.80% based on historical volatility, weighted average risk-free interest rate of 4.59%, and an expected term of 6 years calculated under the simplified method.

A summary of the options award activity under the plan as of December 31, 2017 and 2016 and changes during the year is as follows (in number of shares):


	2017			2016			2015
Outstanding as of January 1		19,894			20,940			20,940
Exercised		(11,061	)		(1,046	)		—
Forfeited		(8,833	)		—			—

Outstanding as of December 31		—			19,894			20,940

The Company uses the accelerated method to recognize the compensation cost for stock options. There is no additional compensation cost to be recognized for stock options. This option award expired on March 2017.

The Company plans to make additional equity-based awards under the plan from time to time, including additional non-vested stock and stock option awards. The Company anticipates that future employee non-vested stock and stock option awards granted pursuant to the plan will generally vest over a three to five year period and the stock options will carry a ten-year term.

Earnings (loss) per share

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Earnings (loss) per share

26.

Earnings (loss) per share

Basic earnings per share amounts are calculated by dividing the net profit (loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of shares outstanding during the year, increased by the number of non-vested dividend participating share-based payment awards outstanding during the period.

Diluted earnings per share amounts are calculated by dividing the net profit (loss) attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares, when the effect of their inclusion is dilutive (decreases earnings per share or increases loss per share).

The computation of the income (loss) and share data used in the basic and diluted earnings per share is as follows:


	2017		2016		2015
Basic earnings (loss) per share -
Net income (loss)	$	370,023	$	334,544	$	(224,974	)
Weighted-average shares outstanding		42,111		42,036		43,716
Non-vested dividend participating awards		308		322		145

		42,419		42,358		43,861

		8.72		7.90		(5.13	)


	2017		2016		2015
Diluted earnings (loss) per share -
Net income (loss)	$	370,023	$	334,544	$	(224,974	)
Weighted-average shares outstanding used for basic earnings per share		42,419		42,358		43,861
Share options on issue		—		5		8

		42,419		42,363		43,869

		8.72		7.90		(5.13	)

Commitments and contingencies

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Commitments and contingencies

27.

Commitments and contingencies

Purchase contracts

As of December 31, 2017, the Company has subscribed two (2) purchase contracts with Boeing. The first contract entails two (2) firm orders of Boeing 737 Next Generation aircraft, which will be delivered in 2018, while the second contract entails seventy-one (71) firm orders of Boeing 737 MAX aircraft, which will be delivered between 2018 and 2025.

The firm orders have an approximate value of $9.5 billion based on aircraft list prices, including estimated amounts for contractual price escalation and pre-delivery deposits.

Covenants

As a result of the various aircraft financing contracts entered into by the Company, the Company is required to comply with certain financial covenants. These covenants, among other things, require the Company to maintain earnings before income taxes, depreciation, amortization, and restructuring, or rent cost (“EBITDAR”) to a fixed charge ratio of at least 2.5 times, a minimum tangible net worth of $160 million, an EBITDAR to a finance charge expense ratio of at least 2.0 times, a total liability plus operating leases minus operating cash to tangible net worth ratio of less than 5.5, a long-term obligations to an EBITDAR ratio of less than 6.0, a minimum unrestricted cash balance of $50 million, and a minimum of $75 million in available cash, cash equivalents, and short-term investments.

As of December 31, 2017 and 2016, the Company was in compliance with all required covenants.

Labor unions

Approximately 62% of the Company’s 9,045 employees are unionized. There are currently nine (9) union organizations, five (5) covering employees in Panama and four (4) covering employees in Colombia. The Company traditionally had good relations with its employees and with all the unions and expects to continue to enjoy good relations with its employees and the unions in the future.

The five (5) unions covering employees in Panama include the pilots’ union (UNPAC); the flight attendants’ union (SIPANAB); the mechanics’ union (SITECMAP); the passenger service agents’ union (UGETRACO), and the industry union (SIELAS), which represents ground personnel, messengers, drivers, passenger service agents, counter agents, and other non-executive administrative staff.

Copa entered into collective bargaining agreements with the pilot’s union in July 2017, the industry union in December 2017, the mechanics’ union during the late first quarter 2018 and the flight attendants’ union during the early third quarter of 2018.

Collective bargaining agreements in Panama typically have terms of four years.

The four (4) unions covering employees in Colombia are: the pilots’ union (ACDAC), the flight attendants’ union (ACAV), the industry union (SINTRATAC), and the Mechanics Union (ACMA).

Copa entered into collective bargaining with ACDAC and ACAV in January 2018; both of which are expected to end towards the end of the first quarter of 2018. Additionally, SINTRATAC and Copa entered into collective bargaining agreement in December 2017 for terms of four years until December 2021. Negotiations with ACMA were resolved by arbitration on December 31, 2015, extending the validation every 6 months from this date, until June 30, 2017. As of December 31, 2017, ACMA has not presented a new bill of petition.

Typically, collective bargaining agreements in Colombia have terms of two to three years. Although Copa Colombia usually settles many of its collective bargaining agreement negotiations through arbitration proceedings, it has traditionally experienced good relations with its unions.

In addition to unions in Panama and Colombia, the Company’s employees in Brazil are covered by industry union agreements that cover all airline industry employees in the country; employees in Uruguay are covered by an industry union, and airport employees in Argentina are affiliated to an industry union (UPADEP).

Lines of credit for working capital and letters of credit

The Company maintained letters of credit with several banks with a value of $25.5 million as of December 31, 2017 (2016: $26.6 million). These letters of credit are pledged mainly for operating lessors, maintenance providers and airport operators.

Copa Airlines has lines of credit for a total of $212.3 million, in which it has committed lines of credit totaling $20.0 million, including one line of credit for $15 million and one overdraft line of credit of $5 million with Banco General. Copa Airlines also has uncommitted lines of credit for a total of $192.3 million, including one line of credit of $100.0 million with Bladex, one line of credit of $77.3 million with Citibank, and one line of credit of $15 million with Banco Nacional de Panama. These lines of credit have been put in place to bridge liquidity gaps and for other potential contingencies.

As of December 31, 2017, the Company has a balance of $127.8 million from lines of credit (2016: $83.5 million).

Tax audit

In March 2016, the Company received notifications from the tax authorities in Colombia and Brazil. The Company, along with its tax advisors, has concluded that it is not probable that an outflow of resources embodying economic benefits will be required to settle them, especially considering that the Company has enough arguments to support its position and also taking into consideration that both cases are in the preliminary stages.

Financial instruments - Risk management and fair value

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Financial instruments - Risk management and fair value

28.

Financial instruments - Risk management and fair value

In the normal course of its operations, the Company is exposed to a variety of financial risks: market risk (especially cash flow, currency, commodity prices and interest rate risk), credit risks and liquidity risk. The Company has established risk management policies to minimize potential adverse effects on the Company’s financial performance:

28.1

Fuel price risk

The Company has risks that are common in its industry, which it mitigates through derivatives contracts. The main risk associated with the industry is the variation in fuel prices, which the Company mitigates through derivatives instruments contracts.

The Company periodically enters into transactions for derivative financial instruments, namely, fuel derivative instruments, with the purpose of providing for short to mid-term hedging (generally three to eighteen months) against sudden and significant increases in jet fuel prices, while simultaneously ensuring that the Company is not at competitive disadvantage in the event of a substantial decrease in jet fuel prices. The Company does not hold or issue derivative financial instruments for trading purposes.

The Company’s derivative contracts did not qualify as hedges for financial reporting purposes. Accordingly, changes in fair value of such derivative contracts, which amounted to gains of $2.8 million (2016: gains of $111.6 million and loss of $11.6 million in 2015), were recorded as a component of “Net change in fair value of derivatives” in the accompanying consolidated statement of profit or loss.

The Company’s derivative contracts matured in December 2017 (2016: $2.8 million), the fair value of derivative was recorded in “Trade, other payables and financial liabilities” in the consolidated statement of financial position. The Company’s purchases of jet fuel are made primarily from one supplier (see note 19).

Financial derivative instruments expose the Company to credit loss in the event of nonperformance by the counterparties to the agreements. However, the Company does not expect any failure of the counterparties to meet their obligations, as the Company’s policy to manage credit risk is to engage in business with counterparties that are financially stable and experienced in energy risk management. The amount of such credit exposure is generally the unrealized gain, if any, of such contracts.

Fuel price risk is estimated as a hypothetical 10% increase in the December 31, 2017 cost per gallon of fuel. Based on projected 2018 fuel consumption, such an increase would result in an increase to aircraft fuel expense of approximately $60.9 million in 2018 (unaudited).

28.2

Market risk

Foreign currency risk

Foreign exchange risk is originated when the Company performs transactions and maintains monetary assets and liabilities in currencies that are different from the functional currency of the Company. Assets and liabilities in foreign currency are translated using with the exchange rates at the end of the period, except for non-monetary assets and liabilities that are translated at the equivalent cost of the U.S. dollar at the acquisition date and maintained at the historical rate. The results of foreign operations are translated using the average exchange rates that were in place during the period. Gains and losses deriving from exchange rates are included within “(Loss) Gain on foreign currency fluctuations” in the consolidated statement of profit or loss.

The majority of the obligations are denominated in U.S. dollars. Since Panama uses the U.S. dollar as legal tender, the majority of the Company’s operating expenses are also denominated in U.S. dollars, approximately 43.7% of revenues and 59.8% of expenses, respectively. A significant part of our revenue is denominated in foreign currencies, including the Brazilian real, Colombian peso and Argentinian peso, which represented 16.5%, 11.4% and 7.8%, respectively (2016: 10.1%, 11.8% and 6.8% respectively).

Generally, the Company’s exposure to most of these foreign currencies, with the exception of the Venezuelan bolivar, is limited to the period of up to two weeks between the completion of a sale and the conversion to U.S. dollar.

Foreign companies operating in Venezuela, including airlines, have experienced increasing delays for approvals by the Venezuelan government to repatriate funds. To reduce the cash exposure in Venezuela, the Company processes its passenger tickets mainly in U.S. dollars, constantly monitors sales and adjusts capacity.

During 2015, the Company used Sistema Complementario de Administracion de divisas (“SICAD”) rate of VEF 13.50 per U.S. dollar. As of December 31, 2015, the Company decided that in view of the lack of repatriation the SICAD rate could no longer be considered available in practice, this combined with the deterioration of the Venezuelan economy. Instead, the Company has chosen to use Sistema Marginal de Divisas (“SIMADI”) exchange rate of VEF198.7 per U.S. dollar to translate all the financial assets and liabilities at the 2015 year-end, which is considered a better reflection of the Bolivar given the current economic reality of that country.

This rate was applied to all funds in Venezuela, resulting in a foreign currency translation loss of $430.2 million as of December 31, 2015.

On March 9, 2016, the Venezuelan government published in official gazette The Exchange Agreement No. 35 where is indicated the elimination of the SICAD and the preferential exchange rate of VEF 13.50 per U.S. dollar for aeronautical operations. The SICAD was replace by Sistema de tipo de cambio complementario flotante de Mercado (DICOM), which consists of a system of floating exchange rate according to market conditions. As of December 31, 2017, the exchange rate to translate all the financial assets and liabilities in Venezuela, according to DICOM, is VEF 3,345.0 (2016: VEF 673.7) per U.S. dollar.

The following chart summarizes the Company’s foreign currency risk exposure (assets and liabilities denominated in foreign currency) as of December 31:


	2017		2016
Assets
Cash and cash equivalents	$	25,189	$	51,718
Investments		277		276
Accounts receivable, net		75,769		69,460
Prepaid expenses		32,045		34,635
Other assets		29,459		35,343

Total assets	$	162,739	$	191,432
Liabilities
Accounts payable		37,186		32,098
Taxes payable		50,922		55,060
Other liabilities		25,471		40,342

Total liabilities	$	113,579	$	127,500

Net position	$	49,160	$	63,932

From time to time the, Company enters into factoring agreements on receivables outstanding on credit card sales in certain countries.

28.3

Credit risk

Credit risk originates from cash and cash equivalents, deposits in banks, investments in financial instruments and accounts receivables. It is the risk that the counterparty is not being capable of fulfilling its contractual obligations, causing financial losses to the Company.

To mitigate the credit risk arising from deposits in banks and investments in financial instruments, the Company only conducts business with financial institutions that have an investment grade above BBB-from Fitch or Standard & Poor’s, with strength and liquidity indicators aligning with or above the market average.

Regarding credit risk originating from commercial accounts receivable, the Company does not consider it significant since most of the accounts receivable can be easily converted into cash, usually in periods no longer than one month. Accounts receivable from cargo agencies are more likely to be exposed to credit risk, but this is mitigated with the established policies to make sure that the credit sales are to clients with good credit history. Specific credit limits and payment terms have been established according to periodic analysis of the client’s payment capacity.

A considerable amount of the Company’s tickets sales are processed through major credit cards, resulting in accounts receivable that are generally short-term and usually collected before revenue is recognized. The Company considers that the credit risk associated with these accounts receivable is controllable based on the industry’s trends and strong policies and procedures established and followed by the Company.

28.4

Interest rate and cash flow risk

The income and operating cash flows of the Company are substantially independent of changes in interest rates, because the Company does not have significant assets that generate interest except for surplus cash and cash equivalents and short and long-term investments.

Interest rate risk is originates mainly from long-term debts related to aircraft acquisition. These long-term lease payments at variable interest rates expose the Company to cash flow risk. To mitigate the effect of variable cash flows associated to contracted rates and transform them into fixed rates, the Company entered into one Interest Rates Swap contract to hedge against market rates fluctuations.

As of December 31, 2017 and 2016, fixed interest rates range from 1.81% to 5.58%, and the main floating rate is LIBOR.

The Company’s earnings are affected by changes in interest rates due to the impact of those changes on interest expenses from variable-rate debt instruments and operating leases, and on interest income generated from cash and investment balances. If the interest rate average is 10% more in 2018 than in 2017, the interest expense would increase by approximately $1.4 million and the fair value of the debt would decrease by approximately $1.3 million. If interest rates average 10% less in 2018 than in 2017, the interest income from marketable securities would decrease by approximately $1.4 million and the fair value of the debt would increase by approximately $1.3 million. These amounts are determined by considering the impact of the hypothetical interest rates on the variable-rate debt and marketable securities equivalent balances at December 31, 2017.

28.5

Liquidity risk

The Company’s policy requires having sufficient cash to fulfill its obligations. The Company maintains sufficient cash on hand and in banks or cash equivalents that are highly liquid. The Company also has credit lines in financial institutions that allow it to withstand potential cash shortages to fulfill its short-term commitments (see note 27).

The table below summarizes the Company’s financial liabilities according to their maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the impact of discounting is not significant.

December 31, 2017


	Note	Carrying amount		Contractual cash flow		Less than twelve months		Between 1 and 4 years		More than 4 years
Non-derivative financial liabilities
Debt	18	$	1,174,581	$	1,313,191	$	329,284	$	549,726	$	434,181
Account payable	19		116,554		116,554		116,554		—		—
Account payable to related parties	19		12,880		12,880		12,880		—		—

		$	1,304,015	$	1,442,625	$	458,718	$	549,726	$	434,181

December 31, 2016


	Note	Carrying amount		Contractual cash flow		Less than twelve months		Between 1 and 4 years		More than 4 years
Non-derivative financial liabilities
Debt	18	$	1,184,132	$	1,334,816	$	252,680	$	616,031	$	466,105
Account payable	19		104,174		104,174		104,174		—		—
Account payable to related parties	19		8,681		8,681		8,681		—		—

			1,296,987		1,447,671		365,535		616,031		466,105
Derivative financial liabilities
Fuel derivative instrument	19		2,801		2,801		2,801		—		—

		$	2,801	$	2,801	$	2,801	$	—	$	—

28.6

Equity risk management

The Company’s objectives when managing equity are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal equity structure to reduce the cost of capital.

Consistent with others in the industry, the Company monitors equity on the basis of the gearing ratio. This ratio is calculated as net debt divided by total equity. Net debt is calculated as total borrowings (including current and non-current borrowings as shown in the consolidated statement of financial position), less cash and cash equivalents and short-term investments. Total capitalization is calculated as equity as shown in the consolidated statement of financial position plus net debt.

The Company’s gearing ratio (unaudited) is a follows:


	2017			2016
Total debt (note 18)	$	1,174,581		$	1,184,132
Less: non-restricted cash and cash equivalents and short-term investments		(943,900	)		(814,689	)

Net debt		230,681			369,443
Total equity		2,111,495			1,842,271

Total capitalization		2,342,176			2,211,714

Gearing ratio		9.8	%		16.7	%

28.7

Fair value measurement

The following table shows the carrying amount and fair values of financial assets and financial liabilities as of December 31:


		Carrying amount				Fair Value
	Note	2017		2016		2017		2016
Financial assets
Cash and cash equivalents	8	$	238,792	$	331,687	$	238,792	$	331,687
Short-term investments	9		705,108		483,002		705,108		483,002
Account receivable	10		118,085		116,100		118,085		116,100
Long-term investments	9		65,953		953		65,953		953
Financial liabilities
Debt	18		1,174,581		1,184,132		1,053,070		1,062,952
Account payable	19		129,434		112,857		129,434		112,857
Fuel derivative instruments	19		—		2,801		—		2,801

The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

•

Cash and cash equivalents, short-term investments approximate their carrying amounts largely due to the short-term maturities of these instruments.

•

Accounts receivable are evaluated by the Company based on parameters such as interest rates, and risk characteristics. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

•

Debt obligations, financial assets, and financial liabilities are estimated by discounting future cash flows using the Company’s current incremental borrowing for a similar liability.

The following chart summarizes the Company’s financial instruments measured at fair value, classified according to the valuation method:


	Fair value measurement as of reporting date
	2016		Level 1		Level 2		Level 3
Liabilities
Fuel derivatives		2,801		—		2,801		—

Total liabilities	$	2,801	$	—	$	2,801	$	—

Subsequent events

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Subsequent events

29.

Subsequent events

Stock Grants

During the first quarter of 2018, the Compensation Committee of the Company’s Board of Directors approved three awards. Awards under these plans will grant approximately 39,761 shares of non-vested stock, which will vest over a period of three to five years. The Company estimates the fair value of these awards to be approximately $5.4 million and the 2018 compensation cost for these plans will be $2.5 million.

Venezuela’s exchange rate

On January 26, 2018, the Venezuelan government published in official gazette the Exchange Agreement No. 39 where is indicated the elimination of the Sistema de divisas protegidas (DIPRO) which were the preferential exchange rate of VEF 10 per U.S. dollar for importation of medicine and foods. The new model unifies the exchange rate that will manage through the DICOM and also include change to the way of auctions are held.

The new regulation establishes that the exchange rate resulting from the auctions carried out through the DICOM is the one that will be used as a reference for all foreign currency settlement operations, both in the public and private sectors. In its first auction on February 5, 2018, the Venezuela’s Central Bank reports the new DICOM exchange rate of VEF 25,000.0 per U.S. dollar. The Company does not expect a significant impact on its consolidated financial statement on applying the new exchange rate since the operations, assets and liabilities in VEF are not material.

Temporarily cancelation of all flights to Venezuela

On April 5, 2018, the government of Venezuela announced that it was temporarily suspending economic, financial and commercial relations with Panama, including certain companies and Panamanian citizens, for a period of 90 days. This announcement includes the operations of Copa Airlines in Venezuela. Copa Airlines has cancelled all of its flights between Panama and Venezuela for the next 90 days, effective immediately. For the year ended December 31, 2017, revenue from Copa Airlines’ flights to Venezuela, including connecting traffic, represented about 5% of consolidated revenues and direct flights between Panama and Venezuela. While it is too early to predict the ultimate impact of these restrictions, the Company does not expect any such cancellations to have other effects on Company’ consolidated operations.

Significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Basis of consolidation

(a)

Basis of consolidation

•

power over the investee

•

exposure, or rights to, variable returns from its involvement with the investee, and

•

the ability to use its power over the investee to affect its returns.

The following are the significant subsidiaries included in these financial statements:


Name	Country of Incorporation	Ownership interest
Name	Country of Incorporation	2017			2016
Copa Airlines	Panama		99	%		99	%
Copa Colombia	Colombia		99	%		99	%
Oval	British Virgin Islands		100	%		100	%

Current versus non-current classification

(b)

Current versus non-current classification

The Company presents assets and liabilities in the statement of financial position based on current/non-current classification.

An asset is current when it is:

•

expected to be realized or intended to be sold or consumed in the normal operating cycle

•

expected to be realized within twelve months after the reporting period, or

•

cash or cash equivalent, unless restricted.

All other assets are classified as non-current.

A liability is current when:

•

it is expected to be settled in the normal operating cycle

•

it is due to be settled within twelve months after the reporting period, or

•

there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Foreign currencies

(c)

Foreign currencies

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company at the respective functional currency spot rates on the date when the transaction first qualifies for recognition.

Foreign exchange gains and losses are included in the exchange rate difference line in the consolidated statement of profit or loss for the year.

Revenue recognition

(d)

Revenue recognition

Passenger revenue

Cargo and mail revenue

Cargo and mail revenue is recognized when the Company provides and completes the shipping services as requested by the client and the risks on the merchandise and goods are transferred.

Other operating revenue

Frequent flyer program

Cash and cash equivalents

(e)

Cash and cash equivalents

Financial instruments

(f)

Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

The Company’s financial assets include cash and cash equivalents, short and long-term investments and accounts receivable.

(i)

Initial recognition and derecognition

A financial asset is derecognized when:

•

the rights to receive cash flows from the asset have expired, or

•

(ii)

Measurement

The subsequent measurement of financial assets depends on their classification as described below (see also note 4, Fair value measurement for financial assets):

•

Held to maturity investments

•

Receivables

The Company considers that there is evidence of impairment if any of the following indicators are present:

•

the debtor is in a state of permanent disability

•

the Company has exhausted all legal and/or administrative recourse

•

where the account exceeds one year without decreases

•

when there are not documents that establishing the debt.

(iii)

Offsetting of financial instruments

Non-derivative financial liabilities

(i)

Initial recognition and derecognition

The Company’s financial liabilities include trade and other payables and loans and borrowings.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs.

(ii)

Measurement

The measurement of financial liabilities depends on their classification as described below:

•

Debt

•

Other financial liabilities

Gains and losses are recognized in the consolidated statement of profit or loss when the liabilities are derecognized as well as through the amortization process.

Derivative financial instruments and hedging activities

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair value.

For hedge accounting purposes, hedges are classified into:

•

fair value hedges

•

cash flow hedges

•

hedges of a net investment in a foreign operation.

The Company designated certain derivatives as cash flow hedges.

As of December 31, 2017 and 2016, the Company does not have financial instruments designated under hedge accounting.

Impairment

(g)

Impairment

Impairment of financial assets

•

Impairment of financial assets carried at amortized cost

The carrying amount of the asset is reduced and the loss recorded in the consolidated statement of profit or loss.

Impairment of non-financial assets

Expendable parts and supplies

(h)

Expendable parts and supplies

Passenger traffic commissions

(i)

Passenger traffic commissions

Property and equipment

(j)

Property and equipment


	Estimate useful	Residual
Property and equipment	life (years)	Value
Flight equipment -
Airframe and engines	27		15	%
Aircraft components (rotable parts)	27		15	%
Major maintenance events	1-8		—
Ramp and miscellaneous -
Ground equipment	10		—
Furniture, fixture, equipment and other	5-10		—
Leasehold improvements	Lesser of remaining lease term and estimated useful life of the leasehold improvement		—

The residual values, useful lives, and methods of depreciation of property and equipment are reviewed at each financial year-end and adjusted prospectively, if appropriate.

During 2017, as result of the annual review of the useful life, the Company concluded that aircraft components are now expected to remain in operations for 27 years from the purchase date.

The land owned by the Company is recognized at cost less any accumulated impairment.

Leases

(k)

Leases

A reassessment is made after inception of the lease only if one of the following applies:

•

there is a change in contractual terms, other than a renewal or extension of the arrangement;

•

a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term;

•

there is a change in the determination of whether fulfillment is dependent on a specified asset; or

•

there is a substantial change to the asset.

The Company as lessor

(i)

Operating leases

The Company as lessee

(ii)

Operating leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases.

Operating lease payments are recognized as an expense in the consolidated statement of profit or loss on a straight-line basis over the lease term.

(iii)

Finance leases

Leases where the lessor substantially transfers all the risks and benefits of ownership of the leased item are classified as finance leases.

Sale and leaseback transactions

The Company enters into transactions whereby aircraft are sold and subsequently leased back. The Company has not entered into sale and leaseback transactions that resulted in finance leases.

Intangible assets

(l)

Intangible assets

Goodwill

Other intangible assets

The useful lives of intangible assets are assessed as either finite or indefinite.

The Company’s intangible assets and the policies applied are summarized as follows:

•

Licenses and software rights

Computer software development costs recognized as assets are amortized on a straight-line basis over their estimated useful lives, which range between three and five years.

Taxes

(m)

Taxes

Income tax expense

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except when related to the items recognized directly in equity or in other comprehensive income (“OCI”).

Current income tax

The Company pays taxes in the Republic of Panama and in other countries in which it operates, based on regulations in effect in each respective country.

Revenue arise principally from foreign operations, and according to the Panamanian Tax Code, these foreign operations are not subject to income tax in Panama.

The Company is also subject to local tax regulations in each of the other jurisdictions where it operates, the great majority of which are related to income taxes.

Deferred tax

•

Deferred tax liabilities are recognized for all taxable temporary differences, except:

•

Borrowing costs

(n)

Borrowing costs

Other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

Provisions

(o)

Provisions

Provisions for costs, including restitution, restructuring and legal claims and assessments are recognized when:

•

the Company has a present legal or constructive obligation as a result of past events;

•

it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

•

the amount of obligation can be reliably estimated.

Employee benefits

(p)

Employee benefits

Defined benefit plan

The Company sponsors a defined benefit plan, which requires contributions to be made to a separately administered fund.

The calculation of the defined benefit obligation is performed annually by a qualified actuary using the projected unit credit actuarial cost method (PUC).

Share-based payments

Termination benefits

Significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Significant Subsidiaries

The following are the significant subsidiaries included in these financial statements:


Name	Country of Incorporation	Ownership interest
Name	Country of Incorporation	2017			2016
Copa Airlines	Panama		99	%		99	%
Copa Colombia	Colombia		99	%		99	%
Oval	British Virgin Islands		100	%		100	%

Estimated Useful Lives of Assets and Considering Residual Value

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets and considering the following values:


	Estimate useful	Residual
Property and equipment	life (years)	Value
Flight equipment -
Airframe and engines	27		15	%
Aircraft components (rotable parts)	27		15	%
Major maintenance events	1-8		—
Ramp and miscellaneous -
Ground equipment	10		—
Furniture, fixture, equipment and other	5-10		—
Leasehold improvements	Lesser of remaining lease term and estimated useful life of the leasehold improvement		—

Changes in disclosures (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Reconciliation of Changes in Presentation in Prior Years

The following table reconcile the changes in presentation in prior years for comparative effects on the consolidated statement of financial position:


	As previosly reported		Reclasification			2016 (Adjusted)
Current liabilities
Taxes and interest payable	$	47,389	$	21,094		$	68,483
Accrued expenses payable	$	80,116	$	(35,754	)	$	44,362
Income tax payable	$	22,495	$	(21,094	)	$	1,401

Non-current liabilities
Other long-term liabilities	$	72,694	$	35,754		$	108,448

The following tables discloses both previously reported and as adjusted amounts of the consolidated statements of profit or loss:


	2016

	(Adjusted)
Operating revenue
Passenger revenue	$	2,155,167
Cargo and mail revenue		53,989
Other operating revenue		12,696

		2,221,852
Operating expenses
Fuel		528,996
Wages, salaries, benefits and other employees’ expenses		370,190
Passenger servicing		86,329
Airport facilities and handling charges		159,771
Sales and distribution		193,984

Maintenance, materials and repairs		121,781
Depreciation and amortization		159,278
Flight operations		88,188
Aircraft rentals and other rentals		138,885

Cargo and courier expenses		6,099
Other Operating and administrative expenses		92,215

		1,945,716

Operating profit		276,136
Non-operating income (expense)
Finance cost		(37,024	)
Finance income		13,000
(Loss) Gain on foreign currency fluctuations		13,043
Net change in fair value of derivatives		111,642
Other non-operating expense		(3,982	)


		96,679

Profit (loss) before taxes		372,815
Income tax expense		(38,271	)

Net profit (loss)	$	334,544

	2016
	(Previously reported)
Operating revenue
Passenger revenue	$	2,133,186
Cargo, mail and other		88,663


		2,221,849
Operating expenses
Aircraft fuel		527,918
Salaries and benefits		293,044
Passenger servicing		259,524

Commissions		83,981
Reservations and sales		99,918
Maintenance, material and repairs		122,873
Depreciation, amortization and impairment		159,278
Flight operations		127,777
Aircraft rentals		120,841
Landing fees and other rentals		55,498

Other		94,584

		1,945,236

Operating profit		276,613
Non-operating income (expense)
Finance cost		(37,024	)
Finance income		13,000
Exchange rate difference, net		13,043
Mark to market derivative income (expense)		111,642
Other income		2,888
Other expense		(7,347	)

		96,202

Profit (loss) before taxes		372,815
Income tax expense		(38,271	)

Net profit (loss)	$	334,544


	2015

	(Adjusted)
Operating revenue
Passenger revenue	$	2,185,465
Cargo and mail revenue		56,738
Other operating revenue		11,507

		2,253,710
Operating expenses
Fuel		603,760
Wages, salaries, benefits and other employees’ expenses		373,631
Passenger servicing		84,327
Airport facilities and handling charges		148,078
Sales and distribution		188,961

Maintenance, materials and repairs		111,178
Depreciation and amortization		134,888
Flight operations		86,461
Aircraft rentals and other rentals		142,177

Cargo and courier expenses		6,471
Other Operating and administrative expenses		105,484

		1,985,416

Operating profit		268,294
Non-operating income (expense)
Finance cost		(33,155	)
Finance income		25,947
(Loss) Gain on foreign currency fluctuations		(440,097	)
Net change in fair value of derivatives		(11,572	)
Other non-operating expense		(1,632	)


		(460,509	)

Profit (loss) before taxes		(192,215	)
Income tax expense		(32,759	)

Net profit (loss)	$	(224,974	)

	2015
	(Previously reported)
Operating revenue
Passenger revenue	$	2,166,727
Cargo, mail and other		83,335


		2,250,062
Operating expenses
Aircraft fuel		602,777
Salaries and benefits		289,512
Passenger servicing		258,302

Commissions		88,557
Reservations and sales		88,051
Maintenance, material and repairs		111,181
Depreciation, amortization and impairment		134,888
Flight operations		130,930
Aircraft rentals		122,217
Landing fees and other rentals		56,703

Other		100,856

		1,983,974

Operating profit		266,088
Non-operating income (expense)
Finance cost		(33,155	)
Finance income		25,947
Exchange rate difference, net		(440,097	)
Mark to market derivative income (expense)		(11,572	)
Other income		7,025
Other expense		(6,451	)

		(458,303	)

Profit (loss) before taxes		(192,215	)
Income tax expense		(32,759	)

Net profit (loss)	$	(224,974	)

New standards and interpretations not yet adopted (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Impacts Due to the Adoption of New Standard

The Company’s consolidated statement of financial position and the consolidated statement of profit or loss presents the following impacts due to the adoption of the new standard:


	2017			Transition impact			2017 under IFRS15
ASSETS
Current assets	$	1,198,488						1,198,488
Non - current assets		3,054,443						3,054,443

Total assets	$	4,252,931			—			4,252,931

LIABILITIES AND EQUITY
Current liabilities
Air traffic liability	$	470,693			6,475			477,168
Frequent flyer deferred revenue		13,186			4,011			17,197
Income tax payable		3,700			(820	)		2,880
Other current liabilities		570,813						570,813

		1,058,392			9,666			1,068,058
Non - current liabilities
Frequent flyer deferred revenue		33,115						33,115
Other non - current liabilities		1,049,929						1,049,929

		1,083,044			—			1,083,044

Total liabilities		2,141,436			9,666			2,151,102

Equity
Issued capital		28,496						28,496
Additional paid in capital		72,953						72,953
Treasury stock		(136,388	)					(136,388	)
Retained earnings		1,780,299			(4,524	)		1,775,775
Net income		370,023			(5,142	)		364,881
Accumulated other comprehensive loss		(3,888	)					(3,888	)

Total equity		2,111,495			(9,666	)		2,101,829

Total liabilities and equity	$	4,252,931			—			4,252,931

Operating revenue
Passenger revenue	$	2,462,419			(18,442	)		2,443,977
Cargo and mail revenue		55,290						55,290
Other operating revenue		9,847			12,672			22,519

		2,527,556			(5,770	)		2,521,786
Operating expenses
Other operating expenses		1,887,082						1,887,082
Sales and distribution		200,413			(157	)		200,256

		2,087,495			(157	)		2,087,338

Operating profit		440,061			(5,613	)		434,448
Non - operating income (expense)		(22,038	)					(22,038	)

		(22,038	)		—			(22,038	)

Profit (loss) before taxes		418,023			(5,613	)		412,410
Income tax expense		(48,000	)		471			(47,529	)

Net profit (loss)		370,023			(5,142	)		364,881


	2016			Transition impact			2016 under IFRS15
ASSETS
Current assets	$	1,069,391						1,069,391
Non - current assets		2,776,722						2,776,722

Total assets	$	3,846,113			—			3,846,113

LIABILITIES AND EQUITY
Current liabilities
Air traffic liability	$	396,237			3,559			399,796
Frequent flyer deferred revenue		9,044			1,314			10,358
Income tax payable		22,495			(349	)		22,146
Other current liabilities		470,660						470,660

		898,436			4,524			902,960
Non - current liabilities
Frequent flyer deferred revenue		26,324						26,324
Other non - current liabilities		1,079,082						1,079,082

		1,105,406			—			1,105,406

Total liabilities		2,003,842			4,524			2,008,366

Equity
Issued capital		28,454						28,454
Additional paid in capital		64,986						64,986
Treasury stock		(136,388	)					(136,388	)
Retained earnings		1,552,547			(2,354	)		1,550,193
Net income		334,544			(2,170	)		332,374
Accumulated other comprehensive loss		(1,872	)					(1,872	)

Total equity		1,842,271			(4,524	)		1,837,747

Total liabilities and equity	$	3,846,113			—			3,846,113

Operating revenue
Passenger revenue	$	2,155,167			(6,666	)		2,148,501
Cargo and mail revenue		53,989						53,989
Other operating revenue		12,696			4,000			16,696

		2,221,852			(2,666	)		2,219,186
Operating expenses
Other operating expenses		1,751,732						1,751,732
Sales and distribution		193,984			(147	)		193,837

		1,945,716			(147	)		1,945,569

Operating profit		276,136			(2,519	)		273,617
Non - operating income (expense)		96,679						96,679

		96,679			—			96,679

Profit (loss) before taxes		372,815			(2,519	)		370,296
Income tax expense		(38,271	)		349			(37,922	)

Net profit (loss)		334,544			(2,170	)		332,374

Segment reporting (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Operating Revenue by Principal Geographic Area

Information concerning operating revenue by geographic area for the period ended December 31 is as follows (in millions):


	2017		2016		2015
North America	$	610.0	$	638.9	$	559.6
Panama		413.5		371.6		374.2
Central America and the Caribbean		275.3		273.6		289.0
Brazil		363.7		245.4		290.6
Colombia		197.9		146.1		174.2
Others South America		667.2		546.2		566.1

	$	2,527.6	$	2,221.8	$	2,253.7

Cash and cash equivalents (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Cash and Cash Equivalents


	2017		2016
Checking and saving accounts	$	145,283	$	173,943
Time deposits of no more than ninety days		30,000		57,500
Overnight deposits		63,157		99,933
Cash on hand		352		311

	$	238,792	$	331,687

Investments (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Information About Investments


	2017		2016
Short-term
Time deposits between 90 and 365 days	$	705,108	$	483,002

	$	705,108	$	483,002

Long-term
Time deposits of more than 365 days	$	65,953	$	953

	$	65,953	$	953

Accounts receivable (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Disclosure of Accounts Receivable


	2017			2016
Credit cards	$	64,420		$	65,052
Travel agencies and airlines clearing house		36,640			36,318
Cargo, mail and other travel agencies		6,798			9,278
Trade receivables due from related parties		318			499
Government		6,216			1,957
Other		7,366			6,735

		121,758			119,839
Provision for impairment		(3,673	)		(3,739	)

	$	118,085		$	116,100

Current		115,641			114,143
Non-current		2,444			1,957

	$	118,085		$	116,100

Maturity of Portfolio of Accounts Receivable

The maturity of the portfolio at each year-end is as follows:


	2017		2016
Neither past due nor impaired	$	115,685	$	110,524
Past due 1 to 30 days		1,286		711
Past due 31 to 60 days		617		914
More than 60 days		497		3,951

		118,085		116,100
Impaired		3,673		3,739

Total accounts receivable	$	121,758	$	119,839

Provision for Impairment of Receivables

Movements in the provision for impairment of receivables are as follows:


	2017			2016			2015
Balance at beginning of year	$	(3,739	)	$	(2,997	)	$	(3,691	)
(Additions) reversals		(879	)		(1,511	)		71
Write-offs		945			769			623

Balance at end of year	$	(3,673	)	$	(3,739	)	$	(2,997	)

Expendable parts and supplies (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Disclosure of Expendable Parts and Supplies


	2017			2016
Material for repair and maintenance	$	79,424		$	71,876
Other inventories		3,058			3,101

		82,482			74,977
Allowance for obsolescence		(657	)		(475	)

	$	81,825		$	74,502

Prepaid expenses (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Detailed Information about Prepaid Expenses


	2017		2016
Prepaid taxes	$	38,672	$	39,153
Prepaid commissions		5,297		4,649
Prepaid rent		7,479		6,707
Prepaid insurance		207		772
Prepaid other		19,896		33,524

	$	71,551	$	84,805

Current		45,421		58,407
Non-current		26,130		26,398

	$	71,551	$	84,805

Property and equipment (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Property and Equipment


	Land		Flight equipment			Purchase deposits for flight equipment			Ramp and miscellaneous			Furniture, fixtures, equipment a and other			Leasehold improvements			Construction in progress			Total
Cost -
Balance at January 1, 2015	$	6,301	$	2,707,019		$	321,175		$	39,740		$	25,308		$	28,580		$	7,716		$	3,135,839
Transfer of pre-delivery payments		—		161,169			(161,169	)		—			—			—			—			—
Additions		—		178,582			83,064			2,827			2,269			3,190			9,751			279,683
Disposals		—		(16,773	)		—			(25	)		(864	)		(881	)		(2,343	)		(20,886	)
Reclassifications		—		364			—			495			(766	)		4,977			(5,070	)		—

Balance at December 31, 2015	$	6,301	$	3,030,361		$	243,070		$	43,037		$	25,947		$	35,866		$	10,054		$	3,394,636
Transfer of pre-delivery payments		—		27,585			(27,585	)		—			—			—			—			—
Additions		—		94,348			34,680			3,026			1,878			73			7,435			141,440
Disposals		—		(36,812	)		—			(604	)		(1,226	)		(98	)		—			(38,740	)
Adjustments		—		100			—			—			2,363			—			—			2,463
Reclassifications		—		(340	)		—			(289	)		645			9,140			(10,896	)		(1,740	)

Balance at December 31, 2016	$	6,301	$	3,115,242		$	250,165		$	45,170		$	29,607		$	44,981		$	6,593		$	3,498,059
Transfer of pre-delivery payments		—		28,674			(28,674	)		—			—			—			—			—
Additions		—		158,557			192,196			1,461			3,392			1,614			5,246			362466
Disposals		—		(54,114	)		(54	)		(228	)		(711	)		—			—			(55,107	)
Reclassifications		—		3,870			—			1,950			(4,764	)		3448			(6,061	)		(1,557	)

Balance at December 31, 2017	$	6,301	$	3,252,229		$	413,633		$	48,353		$	27,524		$	50,043		$	5,778		$	3,803,861
Accumulated depreciation -
Balance at January 1, 2015	$	—	$	(567,341	)	$	—		$	(26,560	)	$	(18,197	)	$	(18,405	)	$	—		$	(630,503	)
Depreciation for the year		—		(117,385	)		—			(3,214	)		(2,774	)		(4,229	)		—			(127,602	)
Disposals		—		13,341			—			23			581			177			—			14,122
Reclassifications		—		(39	)		—			1,202			(1,501	)		338			—			—

Balance at December 31, 2015	$	—	$	(671,424	)	$	—		$	(28,549	)	$	(21,891	)	$	(22,119	)	$	—		$	(743,983	)
Depreciation for the year		—		(132,802	)		—			(3,724	)		(2,284	)		(4,246	)		—			(143,056	)
Disposals		—		13,587			—			524			1,220			12			—			15,343
Adjustments		—		(14	)		—			—			(2,667	)		—			—			(2,681	)
Reclassifications		—		(99	)		—			(116	)		41			174			—			—

Balance at December 31, 2016	$	—	$	(790,752	)	$	—		$	(31,865	)	$	(25,581	)	$	(26,179	)	$	—		$	(874,377	)
Depreciation for the year		—		(145,209	)		—			(3,811	)		(2,192	)		(4,505	)		—			(155,717	)
Disposals		—		51,233			—			200			704			—			—			52,137
Reclassifications		—		(1,335	)		—			(1,540	)		4,110			(1,235	)		—			—

Balance at December 31, 2017	$	—	$	(886,063	)	$	—		$	(37,016	)	$	(22,959	)	$	(31,919	)	$	—		$	(977,957	)
Carrying amounts -
At December 31, 2015	$	6,301	$	2,358,937		$	243,070		$	14,488		$	4,056		$	13,747		$	10,054		$	2,650,653

At December 31, 2016	$	6,301	$	2,324,490		$	250,165		$	13,305		$	4,026		$	18,802		$	6,593		$	2,623,682

At December 31, 2017	$	6,301	$	2,366,166		$	413,633		$	11,337		$	4,565		$	18,124		$	5,778		$	2,825,904

Leases (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Future Minimum Lease Payments Required under Finance Leases

As of December 31, 2017, the scheduled future minimum lease payments required under finance leases are as follows:


	Future minimum lease payments		Interest		Present value of minimum lease payments
Up to one year	$	46,274	$	16,180	$	45,416
One to five years		186,344		54,830		169,383
Over five years		388,005		26,924		310,388

Total minimum lease payments	$	620,623	$	97,934	$	525,187

As of December 31, 2016, the scheduled future minimum lease payments required under finance leases are as follows:


	Future minimum lease payments		Interest		Present value of minimum lease payments
Up to one year	$	39,016	$	14,524	$	38,407
One to five years		152,880		48,979		139,322
Over five years		366,131		32,727		288,638

Total minimum lease payments	$	558,027	$	96,230	$	466,367

Schedule of Future Minimum Lease Payments Required under Aircraft and Non-aircraft Operating Leases


	Aircraft		Others
Up to one year	$	111,568	$	14,988
One to five years		270,310		74,943
More than five years		18,957		17,509

Total minimum lease payments	$	400,835	$	107,440

Schedule of Future Minimum Lease Receivables under Non-cancellable Leases

As of December 31, 2017, future minimum lease receivables under non-cancellable leases are as follows:


	2017		2016
Up to one year	$	3,480	$	3,480
One to five years		5,075		8,555

Total minimum lease rental payments	$	8,555	$	12,035

Net pension assets (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Net Pension Asset


	2017			2016
Pension assets	$	23,794		$	25,946

Post-employment benefits		(19,997	)		(16,498	)
Other employee benefits		(612	)		(622	)

Total employee benefits liability	$	(20,609	)	$	(17,120	)

Net pension asset	$	3,185		$	8,826

Summary of Components of Net Benefit Expense


	Defined benefit obligation			Fair value of assets		Defined benefit assets (liability)
Year ended December 31,2017
Current service cost		(1,767	)		—		(1,767	)
Interest cost on net benefit obligation		(568	)		778		210

Net benefit expense	$	(2,335	)	$	778	$	(1,557	)


	Defined benefit obligation			Fair value of assets		Defined benefit assets (liability)
Year ended December 31,2016
Current service cost		(1,724	)		—		(1,724	)
Interest cost on net benefit obligation		(516	)		689		173

Net benefit expense	$	(2,240	)	$	689	$	(1,551	)


	Defined benefit obligation			Fair value of assets		Defined benefit assets (liability)
Year ended December 31,2015
Current service cost		(1,638	)		—		(1,638	)
Interest cost on net benefit obligation		(422	)		532		110

Net benefit expense	$	(2,060	)	$	532	$	(1,528	)

Summary of Reconciliation of Net Pension Asset

The following table shows reconciliation from the opening balance to the closing balances for net pension asset and its components:


	Defined benefit obligation			Fair value of assets			Other employee benefits liability			Defined benefit assets (liability)
At January 1, 2015	$	(12,778	)	$	18,559		$	(3,259	)	$	2,522
Current service cost		(1,638	)		—			—			(1,638	)
Interest cost		(422	)		532			—			110
Return on plan assets greater (less)					—						—
than discount rate		—			701						701
Experience (gain) loss		(809	)		—			—			(809	)
Invesment return		—			105			—			105
Gross benefits paid		—			(599	)		—			(599	)
Assumption changes		222			—			—			222
Employer contributions		—			3,749			—			3,749
Benefits paid		957			(774	)		—			183
Adjustments		—			—			1,504			1,504

At December 31, 2015	$	(14,468	)	$	22,273		$	(1,755	)	$	6,050
Current service cost		(1,724	)		—			—			(1,724	)
Interest (cost) income		(516	)		689			—			173
Return on plan assets greater (less) than discount rate		—			518						518
Experience gain (loss)		(1,052	)		—			—			(1,052	)
Invesment return		—			27			—			27
Gross benefits paid		—			(513	)		—			(513	)
Assumption changes		(67	)		—			—			(67	)
Employer contributions		—			3,970			—			3,970
Benefits paid		1,329			(1,018	)		(75	)		236
Adjustments		—			—			1,208			1,208

As of December 31, 2016	$	(16,498	)	$	25,946		$	(622	)	$	8,826
Current service cost		(1,767	)		—			—			(1,767	)
Interest (cost) income		(568	)		778			—			210
than discount rate		—			(21	)		—			(21	)
Experience gain (loss)		(2,033	)		—			—			(2,033	)
Invesment return		—			88			—			88
Gross benefits paid		—			(440	)		—			(440	)
Assumption changes		(226	)		—			—			(226	)
Employer contributions		—			(1,677	)		—			(1,677	)
Benefits paid		1,095			(880	)		—			215
Adjustments		—			—			10			10

As of December 31, 2017	$	(19,997	)	$	23,794		$	(612	)	$	3,185

Summary of Sensitivity Analysis for Actuarial Assumptions

The following were the principal actuarial assumptions at the reporting date:


	2017			2016			2015
Economic assumptions -
Discount rate		3.15	%		3.37	%		3.45	%
Compensation - salary increase		4	%		4	%		4	%
Demographic assumptions -
Mortality		RP - 2000 no collar
Termination		13% all ages
Retirement
Males		62 years
Females		57 years

Summary of Additional Information about Sensitivity Analysis for Actuarial Assumptions


	December, 31 2017						December, 31 2016						December, 31 2015
	Increase			Decrease			Increase			Decrease			Increase			Decrease
Discount rate (0.5% movement)	$	(506	)	$	537		$	(410	)	$	434		$	(366	)	$	388
Salary rate (0.5% movement)		99			(89	)		122			(117	)		114			(109	)

Summary of Expected Contribution Payments to Defined Benefit Plan

The following payments are expected contributions to the defined benefit plan in future years:


	2017		2016
Up to one year	$	3,424	$	2,823
One to five years		10,794		9,195
Over five years		11,401		9,453

Total expected payments	$	25,619	$	21,471

Intangible assets (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Reconciliation of Changes in Intangible Assets and Goodwill


			Other intangibles assets
	Goodwill		License and software rights			Intangible in process			Total
Cost -
Balance at January 1, 2015	$	20,380	$	37,663		$	24,474		$	82,517
Additions		—		121			19,297			19,418
Disposals		—		(65	)		—			(65	)
Reclassifications		—		26,090			(26,090	)		—

Balance at December 31, 2015		20,380		63,809			17,681			101,870
Additions		—		73			14,401			14,474
Disposals		—		(1,546	)		—			(1,546	)
Impairment loss		—		—			(5,931	)		(5,931	)
Reclassifications		—		11,813			(10,073	)		1,740

Balance at December 31, 2016		20,380		74,149			16,078			110,607
Additions		—		1,783			16,898			18,681
Disposals		—		(4,891	)		—			(4,891	)
Reclassifications		—		3,642			(2,085	)		1,557

Balance at December 31, 2017		20,380		74,683			30,891			125,954
Amortization -
Balance at January 1, 2015	$	—	$	(25,222	)	$	—		$	(25,222	)
Amortization for the year		—		(7,287	)		—			(7,287	)
Disposals		—		65			—			65

Balance at December 31, 2015		—		(32,444	)		—			(32,444	)
Amortization for the year		—		(10,207	)		—			(10,207	)
Disposals		—		1,546			—			1,546

Balance at December 31, 2016		—		(41,105	)		—			(41,105	)
Amortization for the year		—		(8,628	)		—			(8,628	)
Disposals		—		4,894			—			4,894

Balance at December 31, 2017		—		(44,839	)		—			(44,839	)
Carrying amounts -
At December 31, 2015	$	20,380	$	31,365		$	17,681		$	69,426

At December 31, 2016	$	20,380	$	33,044		$	16,078		$	69,502

At December 31, 2017	$	20,380	$	29,844		$	30,891		$	81,115

Other assets (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Other Assets


	2017		2016
Current -
Interest receivable	$	10,443	$	6,741
Other		1,258		909

		11,701		7,650

Non-current -
Guarantee deposits		14,568		10,401
Deposits for litigation		12,390		12,482
Other		4,182		4,182

		31,140		27,065

	$	42,841	$	34,715

Debt (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Debt


	2017
	Due through		Effective rates ranged		Carrying Amount
Long-term fixed rate debt		2025		1.81% to 5.58%	$	626,150
Long-term variable rate debt		2027		1.54% to 3.04%		420,634
Loans payables		2018		2.33% to 2.58%		127,797

						1,174,581
Current maturities						(298,462	)

Long-term debt					$	876,119


	2016
	Due through		Effective rates ranged		Carrying Amount
Long-term fixed rate debt		2025		1.81% to 5.58%	$	702,454
Long-term variable rate debt		2026		0.90% to 2.23%		398,178
Loans payables		2017		1.88% to 1.98%		83,500

						1,184,132
Current maturities						(222,718	)

Long-term debt					$	961,414

Summary of Maturities of Long-term Debt

Maturities of long-term debt for the next five years are as follows:


Year ending December 31, 2018		298,462
2019		167,191
2020		118,376
2021		96,070
2022		89,144
Thereafter		405,338

	$	1,174,581

Summary of Finance Cost and Income

The detail of finance cost and income is as follows:


	2017			2016			2015
Finance income -
Interest income on short-term bank deposits	$	1,499		$	675		$	3,662
Interest income on investment		16,440			12,325			22,285

	$	17,939		$	13,000		$	25,947

Finance cost -
Interests expense on bank loans	$	(32,599	)	$	(32,647	)	$	(30,866	)
Interest on factoring		(2,624	)		(4,377	)		(2,289	)

	$	(35,223	)	$	(37,024	)	$	(33,155	)

Changes in Liabilities Arising from Financing Activities

Changes in liabilities arising from financing activities:


								Non-cash
	2016		Cash flows			New debt		transactions		2017
Debt
Obligations under finance leases	$	461,797	$	(28,107	)	$	—	$	89,000	$	522,690
Debt		722,335		(218,242	)		147,798		—		651,891

Total liabilities from
financing activities	$	1,184,132	$	(246,349	)	$	147,798	$	89,000	$	1,174,581

Trade, other payables and financial liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Trade, Other Payables and Financial Liabilities


	2017		2016
Account payables	$	116,554	$	104,176
Account payables to related parties		12,880		8,681

		129,434		112,857
Other payables and financial liabilities - Fuel derivative instruments		—		2,801
Others		1,156		4,779

		1,156		7,580

	$	130,590	$	120,437

Accrued expenses payable (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Accrued Expenses Payable


	2017		2016
Accruals and estimations	$	9,059	$	5,849
Labor related provisions		44,188		31,785
Liability for social security contributions		6,432		5,700
Other		642		1,028

	$	60,321	$	44,362

Other long-term liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Other Long-term Liabilities


	Provision for litigations			Provision for return condition			Other long- term liabilities			Total
Balance at January 1, 2017	$	14,318		$	58,299		$	41,651		$	114,268
Increases		1,021			33,060			463			34,544
Used		—			(5,824	)		(3,325	)		(9,149	)
Reclassification		—			—			(7,235	)		(7,235	)
Effect of movements in exchange rates		(187	)		—			—			(187	)

Balance at December 31, 2017	$	15,152		$	85,535		$	31,554		$	132,241

Current		—			4,897			4,162			9,059
Non-current		15,152			80,638			27,392			123,182

	$	15,152		$	85,535		$	31,554		$	132,241

Income taxes (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Income Tax Expense


	2017			2016			2015
Current taxes expense -
Current period	$	(43,034	)	$	(31,666	)	$	(30,435	)
Adjustment for prior period		455			(127	)		(1,228	)

	$	(42,579	)	$	(31,793	)	$	(31,663	)
Deferred taxes expenses -		—			—			—
Origination and reversal of temporary differences		(5,421	)		(6,478	)		(1,096	)

Total income tax expense	$	(48,000	)	$	(38,271	)	$	(32,759	)

Summary of Balances of Deferred Taxes

The balances of deferred taxes are as follows:


	Statement						Statement of
	of financial position						profit or loss
	2017			2016			2017			2016			2015
Deferred tax liabilities
Maintenance deposits	$	(26,586	)	$	(23,790	)	$	2,796		$	2,286		$	5,866
Prepaid dividend tax		(14,103	)		(12,432	)		1,671			5,300			—
Property and equipment		(8,312	)		(7,867	)		445			(1,599	)		3,579
Other		(3,876	)		(6,013	)		(2,137	)		(10,147	)		11,692
Set off tax		2,249			5,128			2,879			16,269			(24,568	)

	$	(50,628	)	$	(44,974	)	$	5,654		$	12,109		$	(3,431	)
Deferred tax assets
Provision for return conditions	$	7,332		$	7,606		$	274		$	4,417		$	(11,203	)
Air traffic liability		1,281			1,015			(266	)		305			1,076
Fuel derivative		—			107			107			4,403			94
Other provisions		4,859			4,587			(272	)		(3,059	)		4,716
Tax loss		7,349			10,152			2,803			4,572			(14,724	)
Set off tax		(2,249	)		(5,128	)		(2,879	)		(16,269	)		24,568

	$	18,572		$	18,339		$	(233	)	$	(5,631	)	$	4,527

	$	(32,056	)	$	(26,635	)	$	5,421		$	6,478		$	1,096

Summary of Reconciliation of Effective Tax Rate

Reconciliation of the effective tax rate is as follows:


	Tax rate			2017			Tax rate			2016			Tax rate			2015
Net income (loss)				$	370,023					$	334,544					$	(224,974	)
Total income tax expense					48,000						38,271						32,759

Profit (loss) excluding income tax					418,023						372,815						(192,215	)

Income taxes at Panamanian statutory rates		25.0	%		104,506			25.0	%		93,204			25.0	%		(48,054	)
Panamanian gross tax election		—			—			0.0	%		—			—			—
Effect of tax rates in non - panamanian jurisdictions		0.6	%		2,626			(2.6	%)		(9,729	)		(11.4	%)		21,986
Exemption in non - taxable countries		(14.0	%)		(58,677	)		(12.2	%)		(45,330	)		(30.0	%)		57,599
Adjustment for prior period		(0.1	%)		(455	)		0.03	%		127			(0.6	%)		1,228

Provision for income taxes		11.5	%	$	48,000			10.2	%	$	38,271			(17.0	%)	$	32,759

Accounts and transactions with related parties (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Accounts and Transactions with Related Parties


	2017		2016
Account receivable -
Panama Air Cargo Terminal	$	254	$	—
Editora del Caribe, S.A.		32		15
Petroleos Delta, S.A.		19		5
Banco General, S.A.		12		—
Assa Compañía de Seguros, S.A.		1		479

	$	318	$	499

Account payable -
Petróleos Delta, S.A.	$	10,371	$	7,504
Assa Compañía de Seguros, S.A.		1,431		687
Desarrollos Inmobiliarios del Este, S.A.		650		421
Motta International, S.A.		81		25
Panama Air Cargo Terminal		200		—
Cable Onda, S.A.		112		21
Galindo, Arias & López		31		16
Global Brands, S.A.		4		7

	$	12,880	$	8,681

Summary of Related Party Transactions

Transactions with related parties for the year ended December 31 are as follows:


Related party	Transaction	Amount of transaction 2017			Amount of transaction 2016			Amount of transaction 2015
Petróleos Delta, S.A.	Purchase of jet fuel		290,172			229,899			248,944
ASSA Compañía de Seguros, S.A.	Insurance		8,527			7,128			9,170
Desarrollo Inmobiliario del Este, S.A.	Property leasing		3,625			3,795			2,982
Profuturo Administradora de Fondos de Pensión y Cesantía	Payments		2,386			3,238			—
Motta International	Purchase		1,632			1,646			1,290
Cable Onda, S.A.	Communications		1,448			1,625			—
GBM International, Inc.	Technological support		273			272			533
Galindo, Arias & López	Legal services		373			341			271
Global Brands, S.A.	Purchase		79			67			47
Panama Air Cargo Terminal	Handling		4,869			—			—
Lubricantes Delta, S.A.	Fuel accesories		—			63			—
Editora del Caribe, S.A.	Advertising		4			(162	)		22
Banco General, S.A.	Interest income	$	(2,986	)	$	(1,284	)	$	(1,301	)

Summary of Key Management Personnel Compensation

Key management personnel compensation is as follows:


	2017		2016		2015
Short-term employee benefits	$	5,133	$	3,763	$	3,570
Post-employment pension		99		72		68
Share-based payments		5,524		5,799		3,023

	$	10,756	$	9,634	$	6,661

Share-based payments (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Terms and Conditions, Relating to the Grants of the Non-vested Stock Award under the Equity Compensation Plan


Grant date	Number of instruments		Vesting conditions	Contractual life
February, 2013		19,786	15% first three anniversaries	5 years
			25% fourth and 30% fifth anniversary
February, 2015		13,709	One-third every anniversary	3 years
April, 2015		4,915	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
June, 2015		10,920	One-third every anniversary	3 years
June, 2015		4,912	Third anniversary	3 years
June, 2015		6,750	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
December, 2015		429	Third anniversary	3 years
February, 2016		19,012	One-third every anniversary	3 years
February, 2016		147,000	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
February, 2016		63,000	Fifth anniversary	5 years
May, 2016		7,899	15% first three anniversaries	5 years
			25% fourth anniversary 30% fifth anniversary
May, 2016		4,739	One-third every anniversary	3 years
June, 2016		25,280	One-third every anniversary	3 years
June, 2016		7,925	Third anniversary	3 years
September, 2016		6,668	Third anniversary	3 years
September, 2016		5,005	One-third every anniversary	3 years
February, 2017		22,012	One-third every anniversary	3 years
June, 2017		11,980	One-third every anniversary	3 years
June, 2017		2,237	Third anniversary	3 years

Summary of Non-vested Stock Award Activity

A summary of the non-vested stock award activity under the plan as of December 31, 2017 and 2016 with changes during these years is as follows (in number of shares):


	2017			2016			2015
Non-vested as of January 1		333,183			139,962			199,786
Granted		36,229			291,872			36,291
Vested		(62,224	)		(94,208	)		(94,704	)
Forfeited		(3,035	)		(4,443	)		(1,411	)

Non-vested as of December 31		304,153			333,183			139,962

Summary of Options Award Activity

A summary of the options award activity under the plan as of December 31, 2017 and 2016 and changes during the year is as follows (in number of shares):


	2017			2016			2015
Outstanding as of January 1		19,894			20,940			20,940
Exercised		(11,061	)		(1,046	)		—
Forfeited		(8,833	)		—			—

Outstanding as of December 31		—			19,894			20,940

Earnings (loss) per share (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Computation of the Income (Loss) and Share Data Used in the Basic and Diluted Earnings Per Share

The computation of the income (loss) and share data used in the basic and diluted earnings per share is as follows:


	2017		2016		2015
Basic earnings (loss) per share -
Net income (loss)	$	370,023	$	334,544	$	(224,974	)
Weighted-average shares outstanding		42,111		42,036		43,716
Non-vested dividend participating awards		308		322		145

		42,419		42,358		43,861

		8.72		7.90		(5.13	)


	2017		2016		2015
Diluted earnings (loss) per share -
Net income (loss)	$	370,023	$	334,544	$	(224,974	)
Weighted-average shares outstanding used for basic earnings per share		42,419		42,358		43,861
Share options on issue		—		5		8

		42,419		42,363		43,869

		8.72		7.90		(5.13	)

Financial instruments - Risk management and fair value (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Foreign Currency Risk Exposure

The following chart summarizes the Company’s foreign currency risk exposure (assets and liabilities denominated in foreign currency) as of December 31:


	2017		2016
Assets
Cash and cash equivalents	$	25,189	$	51,718
Investments		277		276
Accounts receivable, net		75,769		69,460
Prepaid expenses		32,045		34,635
Other assets		29,459		35,343

Total assets	$	162,739	$	191,432
Liabilities
Accounts payable		37,186		32,098
Taxes payable		50,922		55,060
Other liabilities		25,471		40,342

Total liabilities	$	113,579	$	127,500

Net position	$	49,160	$	63,932

Summary of Financial Liabilities According to Maturity Date

December 31, 2017


	Note	Carrying amount		Contractual cash flow		Less than twelve months		Between 1 and 4 years		More than 4 years
Non-derivative financial liabilities
Debt	18	$	1,174,581	$	1,313,191	$	329,284	$	549,726	$	434,181
Account payable	19		116,554		116,554		116,554		—		—
Account payable to related parties	19		12,880		12,880		12,880		—		—

		$	1,304,015	$	1,442,625	$	458,718	$	549,726	$	434,181

December 31, 2016


	Note	Carrying amount		Contractual cash flow		Less than twelve months		Between 1 and 4 years		More than 4 years
Non-derivative financial liabilities
Debt	18	$	1,184,132	$	1,334,816	$	252,680	$	616,031	$	466,105
Account payable	19		104,174		104,174		104,174		—		—
Account payable to related parties	19		8,681		8,681		8,681		—		—

			1,296,987		1,447,671		365,535		616,031		466,105
Derivative financial liabilities
Fuel derivative instrument	19		2,801		2,801		2,801		—		—

		$	2,801	$	2,801	$	2,801	$	—	$	—

Summary of Gearing Ratio

The Company’s gearing ratio (unaudited) is a follows:


	2017			2016
Total debt (note 18)	$	1,174,581		$	1,184,132
Less: non-restricted cash and cash equivalents and short-term investments		(943,900	)		(814,689	)

Net debt		230,681			369,443
Total equity		2,111,495			1,842,271

Total capitalization		2,342,176			2,211,714

Gearing ratio		9.8	%		16.7	%

Summary of Carrying Amount and Fair Values of Financial Assets and Financial Liabilities

The following table shows the carrying amount and fair values of financial assets and financial liabilities as of December 31:


		Carrying amount				Fair Value
	Note	2017		2016		2017		2016
Financial assets
Cash and cash equivalents	8	$	238,792	$	331,687	$	238,792	$	331,687
Short-term investments	9		705,108		483,002		705,108		483,002
Account receivable	10		118,085		116,100		118,085		116,100
Long-term investments	9		65,953		953		65,953		953
Financial liabilities
Debt	18		1,174,581		1,184,132		1,053,070		1,062,952
Account payable	19		129,434		112,857		129,434		112,857
Fuel derivative instruments	19		—		2,801		—		2,801

Summary of Financial Instruments Measured at Fair Value

The following chart summarizes the Company’s financial instruments measured at fair value, classified according to the valuation method:


	Fair value measurement as of reporting date
	2016		Level 1		Level 2		Level 3
Liabilities
Fuel derivatives		2,801		—		2,801		—

Total liabilities	$	2,801	$	—	$	2,801	$	—

Corporate Information - Additional Information (Detail)	1 Months Ended	12 Months Ended
Corporate Information - Additional Information (Detail)	May 31, 2016	Dec. 31, 2017 Destinations Country Aircraft Flights	Dec. 01, 2016 County Destinations	Jul. 01, 2015 Destinations Country Airlines
Parent company information [line items]
Commercial alliance with United Airlines - Renewal extension period	5 years
Number of aircraft \| Aircraft		100
Aircraft average useful life		8 years
Aerorepublica, S. A. ("Copa Colombia") [member]
Parent company information [line items]
Number of destinations			14
Aerorepublica, S. A. ("Copa Colombia") [member] \| Domestic [member]
Parent company information [line items]
Number of countries \| County			6
Aerorepublica, S. A. ("Copa Colombia") [member] \| International [member]
Parent company information [line items]
Number of countries \| County			8
Aerorepublica, S. A. ("Copa Colombia") [member] \| South, Central America and Caribbean [member]
Parent company information [line items]
Number of countries \| County			8
Compania Panamena de Aviacion, S. A. - Copa Airlines [member]
Parent company information [line items]
Number of countries \| Country		31
Number of daily scheduled flights \| Flights		347
Compania Panamena de Aviacion, S. A. - Copa Airlines [member] \| International [member]
Parent company information [line items]
Number of destinations		200
Compania Panamena de Aviacion, S. A. - Copa Airlines [member] \| North, Central and South America and the Caribbean [Member]
Parent company information [line items]
Number of destinations		75
ConnectMiles [member] \| Star Alliance Airlines [member]
Parent company information [line items]
Number of destinations				1,300
Number of countries \| Country				190
ConnectMiles [member] \| Star Alliance Airlines [member] \| Bottom of range [member]
Parent company information [line items]
Number of airlines \| Airlines				28

Significant Accounting Policies - Schedule of Significant Subsidiaries (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Panama [member] \| Copa Airlines [member]
Disclosure of information about unconsolidated subsidiaries [line items]
Ownership interest	99.00%	99.00%
Colombia [member] \| Copa Colombia [member]
Disclosure of information about unconsolidated subsidiaries [line items]
Ownership interest	99.00%	99.00%
British Virgin Islands [member] \| Oval [member]
Disclosure of information about unconsolidated subsidiaries [line items]
Ownership interest	100.00%	100.00%

Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of summary of significant accounting policies [line items]
Impairment loss	$ 0	$ 0	$ 0
Useful lives of property and equipment	The Company concluded that airframe and engines are now expected to remain in operation for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years.
Applicable tax rate	25.00%	25.00%	25.00%
Panama [member]
Disclosure of summary of significant accounting policies [line items]
Applicable tax rate	25.00%
Dividends Tax Rate, Panamanian source income	10.00%
Dividends Tax Rate, foreign source income	5.00%
Bottom of range [member] \| Computer software licenses [member]
Disclosure of summary of significant accounting policies [line items]
Estimated useful lives	3 years
Bottom of range [member] \| Software development [member]
Disclosure of summary of significant accounting policies [line items]
Estimated useful lives	5 years
Bottom of range [member] \| Computer software development [member]
Disclosure of summary of significant accounting policies [line items]
Estimated useful lives	3 years
Top of range [member] \| Computer software licenses [member]
Disclosure of summary of significant accounting policies [line items]
Estimated useful lives	8 years
Top of range [member] \| Software development [member]
Disclosure of summary of significant accounting policies [line items]
Estimated useful lives	15 years
Top of range [member] \| Computer software development [member]
Disclosure of summary of significant accounting policies [line items]
Estimated useful lives	5 years

Significant Accounting Policies - Estimated Useful Lives of Assets and Considering Residual Value (Detail)	12 Months Ended
	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Residual Value	15.00%
Airframe and engines [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life (years)	27 years
Residual Value	15.00%
Aircraft components (rotable parts) [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life (years)	27 years
Residual Value	15.00%
Major maintenance events [member] \| Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life (years)	1 year
Major maintenance events [member] \| Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life (years)	8 years
Ground equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life (years)	10 years
Furniture, fixture, equipment and other [member] \| Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life (years)	5 years
Furniture, fixture, equipment and other [member] \| Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life (years)	10 years
Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives	Lesser of remaining lease term and estimated useful life of the leasehold improvement

Significant Accounting Judgments, Estimates and Assumptions - Additional Information (Detail)	Dec. 31, 2017
Disclosure of voluntary change in accounting policy [abstract]
Salvage value assets rate	15.00%

Changes in Disclosures - Summary of Reconciliation of Changes in Presentation in Prior Years (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current liabilities
Taxes and interest payable	$ 81,440	$ 68,483
Accrued expenses payable	60,321	44,362
Income tax payable	3,700	1,401
Non-current liabilities
Other long-term liabilities	123,182	108,448
Operating revenue
Passenger revenue	2,462,419	2,155,167	$ 2,185,465
Cargo and mail revenue	55,290	53,989	56,738
Other operating revenue	9,847	12,696	11,507
Total operating revenue	2,527,556	2,221,852	2,253,710
Operating expenses
Fuel	572,746	528,996	603,760
Wages, salaries, benefits and other employees' expenses	415,147	370,190	373,631
Passenger servicing	99,447	86,329	84,327
Airport facilities and handling charges	171,040	159,771	148,078
Sales and distribution	200,413	193,984	188,961
Maintenance, material and repairs	124,709	121,781	111,178
Depreciation and amortization	164,345	159,278	134,888
Flight operations	101,647	88,188	86,461
Aircraft rentals	134,539	138,885	142,177
Cargo and courier expenses	7,375	6,099	6,471
Other Operating and administrative expenses	96,087	92,215	105,484
Total operating expenses	2,087,495	1,945,716	1,985,416
Operating profit	440,061	276,136	268,294
Non-operating income (expense)
Finance cost	(35,223)	(37,024)	(33,155)
Finance income	17,939	13,000	25,947
(Loss) Gain on foreign currency fluctuations	(5,218)	13,043	(440,097)
Net change in fair value of derivatives	2,801	111,642	(11,572)
Other non-operatingexpense	(2,337)	(3,982)	(1,632)
Total non - operating income (expense)	(22,038)	96,679	(460,509)
Profit (loss) before taxes	418,023	372,815	(192,215)
Income tax expense	(48,000)	(38,271)	(32,759)
Net profit (loss)	$ 370,023	334,544	(224,974)
Reclasification [Member]
Current liabilities
Taxes and interest payable		21,094
Accrued expenses payable		(35,754)
Income tax payable		(21,094)
Non-current liabilities
Other long-term liabilities		35,754
As previously reported [Member]
Current liabilities
Taxes and interest payable		47,389
Accrued expenses payable		80,116
Income tax payable		22,495
Non-current liabilities
Other long-term liabilities		72,694
Operating revenue
Passenger revenue		2,133,186	2,166,727
Cargo and mail revenue		88,663	83,335
Total operating revenue		2,221,849	2,250,062
Operating expenses
Aircraft fuel		527,918	602,777
Salaries and benefits		293,044	289,512
Passenger servicing		259,524	258,302
Commissions		83,981	88,557
Reservations and sales		99,918	88,051
Maintenance, material and repairs		122,873	111,181
Depreciation, amortization and impairment		159,278	134,888
Flight operations		127,777	130,930
Aircraft rentals		120,841	122,217
Landing fees and other rentals		55,498	56,703
Other		94,584	100,856
Total operating expenses		1,945,236	1,983,974
Operating profit		276,613	266,088
Non-operating income (expense)
Finance cost		(37,024)	(33,155)
Finance income		13,000	25,947
Exchange rate difference, net		13,043	(440,097)
Mark to market derivative income (expense)		111,642	(11,572)
Other income		2,888	7,025
Other expense		(7,347)	(6,451)
Total non - operating income (expense)		96,202	(458,303)
Profit (loss) before taxes		372,815	(192,215)
Income tax expense		(38,271)	(32,759)
Net profit (loss)		$ 334,544	$ (224,974)

New Standards and Interpretations Not Yet Adopted - Summary of Impacts Due to the Adoption of New Standard In Consolidated Statement of Financial Position (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Current assets	$ 1,198,488	$ 1,069,391
Non - current assets	3,054,443	2,776,722
Total assets	4,252,931	3,846,113
Current liabilities
Air traffic liability	470,693	396,237
Frequent flyer deferred revenue	13,186	9,044
Income tax payable	3,700	1,401
Other current liabilities	130,590	120,437
Total current liabilities	1,058,392	862,682
Non - current liabilities
Frequent flyer deferred revenue	33,115	26,324
Other non - current liabilities	123,182	108,448
Total non - current liabilities	1,083,044	1,141,160
Total liabilities	2,141,436	2,003,842
Equity
Additional paid in capital	72,945	64,986
Treasury stock	(136,388)	(136,388)
Retained earnings	2,150,322	1,887,091
Net income	370,023	334,544	$ (224,974)
Accumulated other comprehensive loss	(3,888)	(1,872)
Total equity	2,111,495	1,842,271	$ 1,587,422	$ 2,075,108
Total liabilities and equity	4,252,931	3,846,113
Previously stated [member]
ASSETS
Current assets	1,198,488	1,069,391
Non - current assets	3,054,443	2,776,722
Total assets	4,252,931	3,846,113
Current liabilities
Air traffic liability	470,693	396,237
Frequent flyer deferred revenue	13,186	9,044
Income tax payable	3,700	22,495
Other current liabilities	570,813	470,660
Total current liabilities	1,058,392	898,436
Non - current liabilities
Frequent flyer deferred revenue	33,115	26,324
Other non - current liabilities	1,049,929	1,079,082
Total non - current liabilities	1,083,044	1,105,406
Total liabilities	2,141,436	2,003,842
Equity
Issued capital	28,496	28,454
Additional paid in capital	72,953	64,986
Treasury stock	(136,388)	(136,388)
Retained earnings	1,780,299	1,552,547
Net income	370,023	334,544
Accumulated other comprehensive loss	(3,888)	(1,872)
Total equity	2,111,495	1,842,271
Total liabilities and equity	4,252,931	3,846,113
Transition impact [member]
Current liabilities
Air traffic liability	6,475	3,559
Frequent flyer deferred revenue	4,011	1,314
Income tax payable	(820)	(349)
Total current liabilities	9,666	4,524
Non - current liabilities
Total liabilities	9,666	4,524
Equity
Retained earnings	(4,524)	(2,354)
Net income	(5,142)	(2,170)
Total equity	(9,666)	(4,524)
IFRS15 [member]
ASSETS
Current assets	1,198,488	1,069,391
Non - current assets	3,054,443	2,776,722
Total assets	4,252,931	3,846,113
Current liabilities
Air traffic liability	477,168	399,796
Frequent flyer deferred revenue	17,197	10,358
Income tax payable	2,880	22,146
Other current liabilities	570,813	470,660
Total current liabilities	1,068,058	902,960
Non - current liabilities
Frequent flyer deferred revenue	33,115	26,324
Other non - current liabilities	1,049,929	1,079,082
Total non - current liabilities	1,083,044	1,105,406
Total liabilities	2,151,102	2,008,366
Equity
Issued capital	28,496	28,454
Additional paid in capital	72,953	64,986
Treasury stock	(136,388)	(136,388)
Retained earnings	1,775,775	1,550,193
Net income	364,881	332,374
Accumulated other comprehensive loss	(3,888)	(1,872)
Total equity	2,101,829	1,837,747
Total liabilities and equity	$ 4,252,931	$ 3,846,113

New Standards and Interpretations Not Yet Adopted - Summary of Impacts Due to the Adoption of New Standard In Consolidated Statement of Profit or Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating revenue
Passenger revenue	$ 2,462,419	$ 2,155,167	$ 2,185,465
Cargo and mail revenue	55,290	53,989	56,738
Other operating revenue	9,847	12,696	11,507
Total operating revenue	2,527,556	2,221,852	2,253,710
Operating expenses
Sales and distribution	200,413	193,984	188,961
Total operating expenses	2,087,495	1,945,716	1,985,416
Operating profit	440,061	276,136	268,294
Non - operating income (expense)	(2,337)	(3,982)	(1,632)
Total non - operating income (expense)	(22,038)	96,679	(460,509)
Profit (loss) before taxes	418,023	372,815	(192,215)
Income tax expense	(48,000)	(38,271)	(32,759)
Net profit (loss)	370,023	334,544	$ (224,974)
Previously stated [member]
Operating revenue
Passenger revenue	2,462,419	2,155,167
Cargo and mail revenue	55,290	53,989
Other operating revenue	9,847	12,696
Total operating revenue	2,527,556	2,221,852
Operating expenses
Other operating expenses	1,887,082	1,751,732
Sales and distribution	200,413	193,984
Total operating expenses	2,087,495	1,945,716
Operating profit	440,061	276,136
Non - operating income (expense)	(22,038)	96,679
Total non - operating income (expense)	(22,038)	96,679
Profit (loss) before taxes	418,023	372,815
Income tax expense	(48,000)	(38,271)
Net profit (loss)	370,023	334,544
Transition impact [member]
Operating revenue
Passenger revenue	(18,442)	(6,666)
Other operating revenue	12,672	4,000
Total operating revenue	(5,770)	(2,666)
Operating expenses
Sales and distribution	(157)	(147)
Total operating expenses	(157)	(147)
Operating profit	(5,613)	(2,519)
Profit (loss) before taxes	(5,613)	(2,519)
Income tax expense	471	349
Net profit (loss)	(5,142)	(2,170)
IFRS15 [member]
Operating revenue
Passenger revenue	2,443,977	2,148,501
Cargo and mail revenue	55,290	53,989
Other operating revenue	22,519	16,696
Total operating revenue	2,521,786	2,219,186
Operating expenses
Other operating expenses	1,887,082	1,751,732
Sales and distribution	200,256	193,837
Total operating expenses	2,087,338	1,945,569
Operating profit	434,448	273,617
Non - operating income (expense)	(22,038)	96,679
Total non - operating income (expense)	(22,038)	96,679
Profit (loss) before taxes	412,410	370,296
Income tax expense	(47,529)	(37,922)
Net profit (loss)	$ 364,881	$ 332,374

New Standards and Interpretations Not Yet Adopted - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of disaggregation of revenue from contracts with customers [line items]
Air traffic liability	$ 470,693	$ 396,237
Frequent flyer deferred revenue	13,186	9,044
Retained earnings	2,150,322	1,887,091
Passenger revenue	2,462,419	2,155,167	$ 2,185,465
Other operating revenue	9,847	12,696	11,507
Income tax expense	48,000	38,271	$ 32,759
Aircraft [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Future minimum lease payments	400,835
Transition impact [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Air traffic liability	6,475	3,559
Frequent flyer deferred revenue	4,011	1,314
Retained earnings	(4,524)	(2,354)
Passenger revenue	(18,442)	(6,666)
Other operating revenue	12,672	4,000
Income tax expense	(471)	(349)
Transition impact [member] \| Retained earnings [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Change in the timing of revenue recognition		(2,200)
Change in the amount deferred for mileages credits		(200)
Transition impact [member] \| Other operating revenues [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Reclassification between Passenger revenue and Other operating revenue	15,400	5,100
Change in the amount deferred for mileages credits	(2,700)	(1,100)
Transition impact [member] \| Passenger revenue [member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Change in the timing of revenue recognition	(2,800)	(1,400)
Reclassification between Passenger revenue and Other operating revenue	(15,400)	(5,100)
Reclassification of denied board compensation from the Sales and distribution operating expenses to Passenger revenue	$ (200)	$ (200)

Segment Reporting - Additional Information (Detail)	12 Months Ended
Segment Reporting - Additional Information (Detail)	Dec. 31, 2017 Segment
Disclosure of operating segments [abstract]
Number of operating segment	1

Segment Reporting - Operating Revenue by Principal Geographic Area (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of geographical areas [line items]
Total operating revenue	$ 2,527,556	$ 2,221,852	$ 2,253,710
North America [member]
Disclosure of geographical areas [line items]
Total operating revenue	609,954	638,854	559,613
Panama [member]
Disclosure of geographical areas [line items]
Total operating revenue	413,495	371,645	374,219
Central America and Caribbean [member]
Disclosure of geographical areas [line items]
Total operating revenue	275,341	273,610	289,009
Brazil [member]
Disclosure of geographical areas [line items]
Total operating revenue	363,774	245,375	290,613
Colombia [member]
Disclosure of geographical areas [line items]
Total operating revenue	197,819	146,138	174,206
Others South America [member]
Disclosure of geographical areas [line items]
Total operating revenue	$ 667,173	$ 546,230	$ 566,050

- Definition

The income arising in the course of an entity's ordinary activities. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2017-01-01
-Paragraph 28
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2017-03-01&anchor=para_28_a&doctype=Standard
-URIDate 2017-03-09

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2017-01-01
-Paragraph 23
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2017-03-01&anchor=para_23_a&doctype=Standard
-URIDate 2017-03-09

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2017-01-01
-Paragraph 32
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2017-03-01&anchor=para_32&doctype=Standard
-URIDate 2017-03-09

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2017-01-01
-Paragraph 33
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2017-03-01&anchor=para_33_a&doctype=Standard
-URIDate 2017-03-09

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2017-01-01
-Paragraph 34
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=8&date=2017-03-01&anchor=para_34&doctype=Standard
-URIDate 2017-03-09

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2017-01-01
-Paragraph 82
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2017-03-01&anchor=para_82_a&doctype=Standard
-URIDate 2017-03-09

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2017-01-01
-Paragraph 103
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2017-03-01&anchor=para_103&doctype=Standard
-URIDate 2017-03-09

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Note Expiry date 2018-01-01
-Name IAS
-Number 18
-IssueDate 2017-01-01
-Paragraph 35
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=18&date=2017-03-02&anchor=para_35_b&doctype=Standard&book=B
-URIDate 2017-03-09

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2017-01-01
-Paragraph 102
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2017-03-01&anchor=para_102&doctype=Standard
-URIDate 2017-03-09

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2017-01-01
-Paragraph B12
-Subparagraph b
-Clause v
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=12&date=2017-03-01&anchor=para_B12_b_v&doctype=Appendix&seq=2
-URIDate 2017-03-09

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2017-01-01
-Paragraph B10
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=12&date=2017-03-01&anchor=para_B10_b&doctype=Appendix&seq=2
-URIDate 2017-03-09

+ Details

Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash and cash equivalents [abstract]
Checking and saving accounts	$ 145,283	$ 173,943
Time deposits of no more than ninety days	30,000	57,500
Overnight deposits	63,157	99,933
Cash on hand	352	311
Cash and cash equivalents	$ 238,792	$ 331,687	$ 204,715	$ 221,443

Cash and Cash Equivalents - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Bottom of range [member]
Disclosure of cash and cash equivalents [line items]
Time deposits interest rate	1.49%	0.42%
Top of range [member]
Disclosure of cash and cash equivalents [line items]
Time deposits interest rate	1.58%	1.00%

Investments - Schedule of Information About Investments (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Short-term
Investments short term	$ 705,108	$ 483,002
Long-term
Investments long term	65,953	953
Time deposits between 90 and 365 days [member]
Short-term
Time deposits between 90 and 365 days	705,108	483,002
Time deposits of more than 365 days [member]
Long-term
Time deposits of more than 365 days	$ 65,953	$ 953

Investments - Additional Information (Detail)	12 Months Ended
Investments - Additional Information (Detail)	Dec. 31, 2017	Dec. 31, 2016
Bottom of range [member]
Disclosure of detailed information about investment property [line items]
Interest rates on time deposits	1.37%	1.00%
Bottom of range [member] \| United States of America, Dollars
Disclosure of detailed information about investment property [line items]
Interest rate on long term time deposit	3.20%
Top of range [member]
Disclosure of detailed information about investment property [line items]
Interest rates on time deposits	3.75%	3.75%
Top of range [member] \| United States of America, Dollars
Disclosure of detailed information about investment property [line items]
Interest rate on long term time deposit	3.75%

Accounts Receivable - Disclosure of Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of accounts receivables [abstract]
Credit cards	$ 64,420	$ 65,052
Travel agencies and airlines clearing house	36,640	36,318
Cargo, mail and other travel agencies	6,798	9,278
Trade receivables due from related parties	318	499
Government	6,216	1,957
Other	7,366	6,735
Total accounts receivable	121,758	119,839
Provision for impairment	(3,673)	(3,739)	$ (2,997)	$ (3,691)
Trade and other receivables	118,085	116,100
Trade and other receivables current and non - current
Current	115,641	114,143
Non - current	2,444	1,957
Trade and other receivables	$ 118,085	$ 116,100

Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of accounts receivables [abstract]
Non - current account receivable	$ 2,444	$ 1,957

Accounts Receivable - Maturity of Portfolio of Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of accounts receivables [line items]
Trade and other receivables	$ 121,758	$ 119,839
Financial assets neither past due nor impaired [member]
Disclosure of accounts receivables [line items]
Trade and other receivables	115,685	110,524
Financial assets not impaired [member]
Disclosure of accounts receivables [line items]
Trade and other receivables	118,085	116,100
Financial assets not impaired [member] \| Past due 1 to 30 days [member]
Disclosure of accounts receivables [line items]
Trade and other receivables	1,286	711
Financial assets not impaired [member] \| Past due 31 to 60 days [member]
Disclosure of accounts receivables [line items]
Trade and other receivables	617	914
Financial assets not impaired [member] \| More than 60 days [member]
Disclosure of accounts receivables [line items]
Trade and other receivables	497	3,951
Impaired [member]
Disclosure of accounts receivables [line items]
Trade and other receivables	$ 3,673	$ 3,739

Accounts Receivable - Provision for Impairment of Receivables (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of accounts receivables [abstract]
Beginning balance	$ (3,739)	$ (2,997)	$ (3,691)
(Additions) reversals	(879)	(1,511)	71
Write-offs	945	769	623
Ending balance	$ (3,673)	$ (3,739)	$ (2,997)

Expendable Parts and Supplies - Disclosure of Expendable Parts and Supplies (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Classes of current inventories [abstract]
Material for repair and maintenance	$ 79,424	$ 71,876
Other inventories	3,058	3,101
Expendable parts and supplies, gross	82,482	74,977
Allowance for obsolescence	(657)	(475)
Expendable parts and supplies	$ 81,825	$ 74,502

Expendable Parts and Supplies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Classes of current inventories [abstract]
Expendable parts and supplies expense	$ 28.1	$ 24.7	$ 27.2

Prepaid Expenses - Detailed Information about Prepaid Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current prepayments [abstract]
Prepaid taxes	$ 38,672	$ 39,153
Prepaid commissions	5,297	4,649
Prepaid rent	7,479	6,707
Prepaid insurance	207	772
Prepaid other	19,896	33,524
Total prepaid expenses	71,551	84,805
Current	45,421	58,407
Non-current	26,130	26,398
Prepaid expenses	$ 71,551	$ 84,805

Prepaid Expenses - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Prepaid expenses [line items]
Tax advance of VAT and withholdings taxes	$ 12,500	$ 12,700
Advance payments of taxes	12,900	14,800
Tax credits	13,200	11,500
Prepaid other	19,896	33,524
GE Engines Services, LLC [member]
Prepaid expenses [line items]
Prepaid other	$ 4,000	$ 20,000

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	$ 2,623,682	$ 2,650,653
Adjustments	2	(604)	$ (1,896)
Ending balance	2,825,904	2,623,682	2,650,653
Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	3,498,059	3,394,636	3,135,839
Additions	362,466	141,440	279,683
Disposals	(55,107)	(38,740)	(20,886)
Adjustments		2,463
Reclassifications	(1,557)	(1,740)
Ending balance	3,803,861	3,498,059	3,394,636
Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	(874,377)	(743,983)	(630,503)
Depreciation for the year	(155,717)	(143,056)	(127,602)
Disposals	52,137	15,343	14,122
Adjustments		(2,681)
Ending balance	(977,957)	(874,377)	(743,983)
Land [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	6,301	6,301
Ending balance	6,301	6,301	6,301
Land [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	6,301	6,301	6,301
Ending balance	6,301	6,301	6,301
Flight equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	2,324,490	2,358,937
Ending balance	2,366,166	2,324,490	2,358,937
Flight equipment [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	3,115,242	3,030,361	2,707,019
Transfer of pre-delivery payments	28,674	27,585	161,169
Additions	158,557	94,348	178,582
Disposals	(54,114)	(36,812)	(16,773)
Adjustments		100
Reclassifications	3,870	(340)	364
Ending balance	3,252,229	3,115,242	3,030,361
Flight equipment [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	(790,752)	(671,424)	(567,341)
Depreciation for the year	(145,209)	(132,802)	(117,385)
Disposals	51,233	13,587	13,341
Adjustments		(14)
Reclassifications	(1,335)	(99)	(39)
Ending balance	(886,063)	(790,752)	(671,424)
Purchase deposits for flight equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	250,165	243,070
Ending balance	413,633	250,165	243,070
Purchase deposits for flight equipment [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	250,165	243,070	321,175
Transfer of pre-delivery payments	(28,674)	(27,585)	(161,169)
Additions	192,196	34,680	83,064
Disposals	(54)
Ending balance	413,633	250,165	243,070
Ramp and miscellaneous [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	13,305	14,488
Ending balance	11,337	13,305	14,488
Ramp and miscellaneous [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	45,170	43,037	39,740
Additions	1,461	3,026	2,827
Disposals	(228)	(604)	(25)
Reclassifications	1,950	(289)	495
Ending balance	48,353	45,170	43,037
Ramp and miscellaneous [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	(31,865)	(28,549)	(26,560)
Depreciation for the year	(3,811)	(3,724)	(3,214)
Disposals	200	524	23
Reclassifications	(1,540)	(116)	1,202
Ending balance	(37,016)	(31,865)	(28,549)
Furniture, fixture, equipment a and other [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	4,026	4,056
Ending balance	4,565	4,026	4,056
Furniture, fixture, equipment a and other [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	29,607	25,947	25,308
Additions	3,392	1,878	2,269
Disposals	(711)	(1,226)	(864)
Adjustments		2,363
Reclassifications	(4,764)	645	(766)
Ending balance	27,524	29,607	25,947
Furniture, fixture, equipment a and other [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	(25,581)	(21,891)	(18,197)
Depreciation for the year	(2,192)	(2,284)	(2,774)
Disposals	704	1,220	581
Adjustments		(2,667)
Reclassifications	4,110	41	(1,501)
Ending balance	(22,959)	(25,581)	(21,891)
Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	18,802	13,747
Ending balance	18,124	18,802	13,747
Leasehold improvements [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	44,981	35,866	28,580
Additions	1,614	73	3,190
Disposals		(98)	(881)
Reclassifications	3,448	9,140	4,977
Ending balance	50,043	44,981	35,866
Leasehold improvements [member] \| Accumulated depreciation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	(26,179)	(22,119)	(18,405)
Depreciation for the year	(4,505)	(4,246)	(4,229)
Disposals		12	177
Reclassifications	(1,235)	174	338
Ending balance	(31,919)	(26,179)	(22,119)
Construction in progress [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	6,593	10,054
Ending balance	5,778	6,593	10,054
Construction in progress [member] \| Gross carrying amount [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance	6,593	10,054	7,716
Additions	5,246	7,435	9,751
Disposals			(2,343)
Reclassifications	(6,061)	(10,896)	(5,070)
Ending balance	$ 5,778	$ 6,593	$ 10,054

Property Plan and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Borrowing costs capitalized	$ 1.8	$ 0.0
Capitalized borrowing rate	2.14%
Carrying amount of asset acquired under finance leases	$ 535.5	463.4
Useful lives of property and equipment	The Company concluded that airframe and engines are now expected to remain in operation for 27 years from the purchase date. As consequence the expected useful life of the fleet decreased by 3 years.
Effects of changes on actual and expected depreciation expense	$ 11.8
Aircraft [member]
Disclosure of detailed information about property, plant and equipment [line items]
Advance payments on aircraft purchase contracts	192.2	$ 34.7
Carrying value pledged as collateral obligation	$ 1,700.0

Leases - Additional Information (Detail) $ in Millions	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Dec. 31, 2017 USD ($) Aircraft	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Disclosure of finance lease and operating lease by lessee [abstract]
Minimum lease term of finance leases arrangements	10 years
Acquisition of new aircraft as non-cash investing and financing transactions	$ 89.0	$ 46.0
Total lease expense	$ 134.5	138.8	$ 142.2
Average term of aircraft operating leases	10 years
Number of aircraft under lessor \| Aircraft	2
Carrying amount of aircraft under operating lease	$ 37.0	41.6
Scheduled expiration date of lease	2020
Total lease income amounts	$ 3.5	$ 3.5	$ 1.9

Leases - Schedule of Future Minimum Lease Payments Required under Finance Leases (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of finance lease by lessee [line items]
Future minimum lease payments	$ 620,623	$ 558,027
Interest	97,934	96,230
Present value of minimum lease payments	525,187	466,367
Up to one year [member]
Disclosure of finance lease by lessee [line items]
Future minimum lease payments	46,274	39,016
Interest	16,180	14,524
Present value of minimum lease payments	45,416	38,407
One to five years [member]
Disclosure of finance lease by lessee [line items]
Future minimum lease payments	186,344	152,880
Interest	54,830	48,979
Present value of minimum lease payments	169,383	139,322
Over five years [member]
Disclosure of finance lease by lessee [line items]
Future minimum lease payments	388,005	366,131
Interest	26,924	32,727
Present value of minimum lease payments	$ 310,388	$ 288,638

Leases - Schedule of Future Minimum Lease Payments Required under Aircraft and Non-aircraft Operating Leases (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Aircraft [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	$ 400,835
Aircraft [member] \| Up to one year [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	111,568
Aircraft [member] \| One to five years [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	270,310
Aircraft [member] \| Over five years [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	18,957
Others [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	107,440
Others [member] \| Up to one year [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	14,988
Others [member] \| One to five years [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	74,943
Others [member] \| Over five years [member]
Disclosure of operating lease by lessee [line items]
Future minimum lease payments	$ 17,509

Leases - Schedule of Future Minimum Lease Receivables under Non-cancellable Leases (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of finance lease and operating lease by lessor [line items]
Future minimum lease receivables under non -cancelable leases	$ 8,555	$ 12,035
Up to one year [member]
Disclosure of finance lease and operating lease by lessor [line items]
Future minimum lease receivables under non -cancelable leases	3,480	3,480
One to five years [member]
Disclosure of finance lease and operating lease by lessor [line items]
Future minimum lease receivables under non -cancelable leases	$ 5,075	$ 8,555

Net Pension Assets - Summary of Net Pension Asset (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of net defined benefit asset (liability) [line items]
Pension assets	$ 23,794	$ 25,946
Employee benefits liability	(20,609)	(17,120)
Net pension asset	3,185	8,826
Post employment benefits [member]
Disclosure of net defined benefit asset (liability) [line items]
Employee benefits liability	(19,997)	(16,498)
Other employee benefits [member]
Disclosure of net defined benefit asset (liability) [line items]
Employee benefits liability	$ (612)	$ (622)

Net Pension Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of net defined benefit asset (liability) [line items]
Employer contributions	$ 3.5
Retirement of interest earned	5.2
Actuarial loss recognized in other comprehensive income	$ 2.0	$ 1.1	$ 2.2
Seniority premium plan [member]
Disclosure of net defined benefit asset (liability) [line items]
Percentage of eligible earnings accumulated as benefit	1.92%
Indemnity plan [member]
Disclosure of net defined benefit asset (liability) [line items]
Percentage of eligible earnings accumulated as benefit	6.54%

Net Pension Assets - Summary of Components of Net Benefit Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of net defined benefit asset (liability) [line items]
Current service cost	$ (1,767)	$ (1,724)	$ (1,638)
Interest cost on net benefit obligation	210	173	110
Net benefit expense	(1,557)	(1,551)	(1,528)
Defined benefit obligation [member]
Disclosure of net defined benefit asset (liability) [line items]
Current service cost	(1,767)	(1,724)	(1,638)
Interest cost on net benefit obligation	(568)	(516)	(422)
Net benefit expense	(2,335)	(2,240)	(2,060)
Fair value of assets [member]
Disclosure of net defined benefit asset (liability) [line items]
Interest cost on net benefit obligation	778	689	532
Net benefit expense	$ 778	$ 689	$ 532

Net Pension Assets - Summary of Reconciliation of Net Pension Asset (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of net defined benefit asset (liability) [line items]
Beginning balance	$ 8,826	$ 6,050	$ 2,522
Current service cost	(1,767)	(1,724)	(1,638)
Interest (cost) income	210	173	110
Return on plan assets greater (less) than discount rate	(21)	518	701
Experience (gain) loss	(2,033)	(1,052)	(809)
Invesment return	88	27	105
Gross benefits paid	(440)	(513)	(599)
Assumption changes	(226)	(67)	222
Employer contributions	(1,677)	3,970	3,749
Benefits paid	215	236	183
Adjustments	10	1,208	1,504
Ending balance	3,185	8,826	6,050
Defined benefit obligation [member]
Disclosure of net defined benefit asset (liability) [line items]
Beginning balance	(16,498)	(14,468)	(12,778)
Current service cost	(1,767)	(1,724)	(1,638)
Interest (cost) income	(568)	(516)	(422)
Experience (gain) loss	(2,033)	(1,052)	(809)
Assumption changes	(226)	(67)	222
Benefits paid	1,095	1,329	957
Ending balance	(19,997)	(16,498)	(14,468)
Fair value of assets [member]
Disclosure of net defined benefit asset (liability) [line items]
Beginning balance	25,946	22,273	18,559
Interest (cost) income	778	689	532
Return on plan assets greater (less) than discount rate	(21)	518	701
Invesment return	88	27	105
Gross benefits paid	(440)	(513)	(599)
Employer contributions	(1,677)	3,970	3,749
Benefits paid	(880)	(1,018)	(774)
Ending balance	23,794	25,946	22,273
Other employee benefits liability [member]
Disclosure of net defined benefit asset (liability) [line items]
Beginning balance	(622)	(1,755)	(3,259)
Benefits paid		(75)
Adjustments	10	1,208	1,504
Ending balance	$ (612)	$ (622)	$ (1,755)

Net Pension Assets - Summary of Sensitivity Analysis for Actuarial Assumptions (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Discount rate [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Actuarial assumption rate	3.15%	3.37%	3.45%
Salary rate (0.5% movement) [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Actuarial assumption rate	4.00%	4.00%	4.00%
Mortality [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Demographic assumptions, Mortality	RP - 2000 no collar	RP - 2000 no collar	RP - 2000 no collar
Termination [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Actuarial assumption rate	13.00%	13.00%	13.00%
Male [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Retirement age	62	62	62
Female [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Retirement age	57	57	57

Net Pension Assets - Summary of Additional Information about Sensitivity Analysis for Actuarial Assumptions (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Discount rate (0.5% movement) [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Increase	$ (506)	$ (410)	$ (366)
Decrease	537	434	388
Salary rate (0.5% movement) [member]
Disclosure of sensitivity analysis for actuarial assumptions [line items]
Increase	99	122	114
Decrease	$ (89)	$ (117)	$ (109)

Net Pension Assets - Summary of Expected Contribution Payments to Defined Benefit Plan (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of defined benefit plans [line items]
Total expected payments	$ 25,619	$ 21,471
Up to one year [member]
Disclosure of defined benefit plans [line items]
Total expected payments	3,424	2,823
More than one year but less than five years [member]
Disclosure of defined benefit plans [line items]
Total expected payments	10,794	9,195
Over five years [member]
Disclosure of defined benefit plans [line items]
Total expected payments	$ 11,401	$ 9,453

Intangible Assets - Summary of Reconciliation of Changes in Intangible Assets and Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	$ 69,502	$ 69,426
Impairment loss		5,900
Ending balance	81,115	69,502	$ 69,426
Gross carrying amount [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	110,607	101,870	82,517
Additions	18,681	14,474	19,418
Disposals	(4,891)	(1,546)	(65)
Impairment loss		(5,931)
Reclassifications	1,557	1,740
Ending balance	125,954	110,607	101,870
Amortization of Intangible Assets [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	(41,105)	(32,444)	(25,222)
Amortization for the year	(8,628)	(10,207)	(7,287)
Disposals	4,894	1,546	65
Ending balance	(44,839)	(41,105)	(32,444)
Goodwill [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	20,380	20,380
Ending balance	20,380	20,380	20,380
Goodwill [Member] \| Gross carrying amount [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	20,380	20,380	20,380
Ending balance	20,380	20,380	20,380
License and Software Rights [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	33,044	31,365
Ending balance	29,844	33,044	31,365
License and Software Rights [Member] \| Gross carrying amount [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	74,149	63,809	37,663
Additions	1,783	73	121
Disposals	(4,891)	(1,546)	(65)
Reclassifications	3,642	11,813	26,090
Ending balance	74,683	74,149	63,809
License and Software Rights [Member] \| Amortization of Intangible Assets [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	(41,105)	(32,444)	(25,222)
Amortization for the year	(8,628)	(10,207)	(7,287)
Disposals	4,894	1,546	65
Ending balance	(44,839)	(41,105)	(32,444)
Intangible in Process [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	16,078	17,681
Ending balance	30,891	16,078	17,681
Intangible in Process [Member] \| Gross carrying amount [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Beginning balance	16,078	17,681	24,474
Additions	16,898	14,401	19,297
Impairment loss		(5,931)
Reclassifications	(2,085)	(10,073)	(26,090)
Ending balance	$ 30,891	$ 16,078	$ 17,681

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Discount rates	12.92%
Decrease in discount rate	11.50%
Increase in discount rate	13.50%
Impairment loss		$ 5,900
Intangible assets	$ 81,115	69,502	$ 69,426
Goodwill [Member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Estimated recoverable amount	4,400,000	3,500,000
Carrying amount	$ 20,400
Percentage of growth rate	3.10%
Estimated recoverable amount of CGU exceed its carrying value by	92.00%
Intangible assets	$ 20,380	20,380	$ 20,380
Capitalised development expenditure [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets		$ 11,800

Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets [abstract]
Interest receivable	$ 10,443	$ 6,741
Other	1,258	909
Other currents assets	11,701	7,650
Guarantee deposits	14,568	10,401
Deposits for litigation	12,390	12,482
Other assets	4,182	4,182
Other non - current assets	31,140	27,065
Other current and non-current assets	$ 42,841	$ 34,715

Debt - Summary of Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	$ 1,174,581	$ 1,184,132
Current maturities	(298,462)	(222,718)
Long-term debt	876,119	961,414
Borrowing due through 2025 [member] \| Fixed interest rate [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	626,150	702,454
Borrowing due through 2027 [member] \| Floating interest rate [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	420,634	398,178
Borrowing due through 2017 [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities		$ 83,500
Borrowing due through 2018 [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	$ 127,797
Bottom of range [member] \| Borrowing due through 2025 [member] \| Fixed interest rate [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings	1.81%	1.81%
Bottom of range [member] \| Borrowing due through 2027 [member] \| Floating interest rate [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings	1.54%	0.90%
Bottom of range [member] \| Borrowing due through 2017 [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings		1.88%
Bottom of range [member] \| Borrowing due through 2018 [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings	2.33%
Top of range [member] \| Borrowing due through 2025 [member] \| Fixed interest rate [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings	5.58%	5.58%
Top of range [member] \| Borrowing due through 2027 [member] \| Floating interest rate [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings	3.04%	2.23%
Top of range [member] \| Borrowing due through 2017 [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings		1.98%
Top of range [member] \| Borrowing due through 2018 [member]
Disclosure of detailed information about borrowings [line items]
Effective interest rates of borrowings	2.58%

Debt - Summary of Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about borrowings [line items]
Long-term debt maturity	$ 1,174,581	$ 1,184,132
2018 [member]
Disclosure of detailed information about borrowings [line items]
Long-term debt maturity	298,462
2019 [member]
Disclosure of detailed information about borrowings [line items]
Long-term debt maturity	167,191
2020 [member]
Disclosure of detailed information about borrowings [line items]
Long-term debt maturity	118,376
2021 [member]
Disclosure of detailed information about borrowings [line items]
Long-term debt maturity	96,070
2022 [member]
Disclosure of detailed information about borrowings [line items]
Long-term debt maturity	89,144
Thereafter [member]
Disclosure of detailed information about borrowings [line items]
Long-term debt maturity	$ 405,338

Debt - Additional Information (Detail) $ in Thousands	12 Months Ended
Debt - Additional Information (Detail) $ in Thousands	Dec. 31, 2017 USD ($) Aircraft	Dec. 31, 2016 USD ($)
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	$ 1,174,581	$ 1,184,132
Support from Export-Import Bank for net purchase price of aircraft	80.00%
Aircraft financing maturity period	15 years
Loan accreting percentage	100.00%
Number of aircraft finance with SOAR structure \| Aircraft	4
Finance with SOAR structure	$ 28,300	24,800
Non-cash investing and finacing transactions	89,000
Export-Import Bank of United States [Member]
Disclosure of detailed information about borrowings [line items]
Outstanding indebtedness	372,000	446,500
Borrowing on which fixed applicable interest rate is exercised	231,900	286,100
Borrowing due through 2018 [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	127,797
Borrowing due through 2017 [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities		83,500
Finance lease [member] \| Fixed interest rate [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	394,200	416,300
Finance lease [member] \| Floating interest rate [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	$ 128,400	$ 45,400

Debt - Summary of Finance Cost and Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about borrowings [line items]
Finance income	$ 17,939	$ 13,000	$ 25,947
Finance cost	(35,223)	(37,024)	(33,155)
Interest income on short-term bank deposits [member]
Disclosure of detailed information about borrowings [line items]
Finance income	1,499	675	3,662
Interest income on investment [member]
Disclosure of detailed information about borrowings [line items]
Finance income	16,440	12,325	22,285
Interests expense on bank loans [member]
Disclosure of detailed information about borrowings [line items]
Finance cost	(32,599)	(32,647)	(30,866)
Interest on factoring [member]
Disclosure of detailed information about borrowings [line items]
Finance cost	$ (2,624)	$ (4,377)	$ (2,289)

Debt - Changes in Liabilities Arising from Financing Activities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	$ 1,184,132
Payments on loans, borrowings and finance leases	(246,349)	$ (326,965)	$ (221,912)
Proceeds from new borrowings	147,798	164,400	$ 130,000
Non-cash transactions	89,000
Debt including current maturities	1,174,581	1,184,132
Obligations under finance leases [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	461,797
Payments on loans, borrowings and finance leases	(28,107)
Non-cash transactions	89,000
Debt including current maturities	522,690	461,797
Debt [member]
Disclosure of detailed information about borrowings [line items]
Debt including current maturities	722,335
Payments on loans, borrowings and finance leases	(218,242)
Proceeds from new borrowings	147,798
Debt including current maturities	$ 651,891	$ 722,335

Trade, Other Payables and Financial Liabilities - Summary of Trade, Other Payables and Financial Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Trade and other payables [line items]
Account payables	$ 116,554	$ 104,176
Account payables to related parties	12,880	8,681
Trade payable	129,434	112,857
Other payables and financial liabilities	1,156	7,580
Trade, other payables and financial liabilities	130,590	120,437
Fuel derivative instruments [member]
Trade and other payables [line items]
Other payables and financial liabilities		2,801
Others [member]
Trade and other payables [line items]
Other payables and financial liabilities	$ 1,156	$ 4,779

Accrued Expenses Payable - Summary of Accrued Expenses Payable (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accrued expenses [abstract]
Accruals and estimations	$ 9,059	$ 5,849
Labor related provisions	44,188	31,785
Liability for social security contributions	6,432	5,700
Other	642	1,028
Accrued expenses payable	$ 60,321	$ 44,362

Accrued Expenses Payable - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accrued expenses [abstract]
Current portion of provision for return condition	$ 4.9	$ 2.3
Current portion of provision for maintenance	$ 4.2	$ 3.5
Accrual expense settlement period	12 months

Other Long-term Liabilities - Summary of Other Long-term Liabilities (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Disclosure Of Other Long-term Liabilities [Line Items]
Beginning balance	$ 114,268
Increases	34,544
Used	(9,149)
Reclassification	(7,235)
Effect of movements in exchange rates	(187)
Ending balance	132,241
Current and non - current
Current	9,059
Non-current	123,182
Ending balance	132,241
Provision for litigations [member]
Disclosure Of Other Long-term Liabilities [Line Items]
Beginning balance	14,318
Increases	1,021
Effect of movements in exchange rates	(187)
Ending balance	15,152
Current and non - current
Non-current	15,152
Ending balance	15,152
Provision for return condition [member]
Disclosure Of Other Long-term Liabilities [Line Items]
Beginning balance	58,299
Increases	33,060
Used	(5,824)
Ending balance	85,535
Current and non - current
Current	4,897
Non-current	80,638
Ending balance	85,535
Other long term liabilities [member]
Disclosure Of Other Long-term Liabilities [Line Items]
Beginning balance	41,651
Increases	463
Used	(3,325)
Reclassification	(7,235)
Ending balance	31,554
Current and non - current
Current	4,162
Non-current	27,392
Ending balance	$ 31,554

Other Long-term Liabilities - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Non-current liabilities [abstract]
Amount in escrow account	$ 12.4	$ 12.5
Provision for maintenance	28.9
Trust fund	$ 3.1

Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current taxes expense
Current period	$ (43,034)	$ (31,666)	$ (30,435)
Adjustment for prior period	455	(127)	(1,228)
Current taxes expense, total	(42,579)	(31,793)	(31,663)
Deferred taxes expenses
Origination and reversal of temporary differences	(5,421)	(6,478)	(1,096)
Total income tax expense	$ (48,000)	$ (38,271)	$ (32,759)

- Definition

The aggregate amount included in the determination of profit (loss) for the period in respect of current tax and deferred tax that relate to continuing operations. [Refer: Continuing operations [member]; Current tax expense (income); Deferred tax expense (income)]

+ References + Details

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Tax rate	25.00%	25.00%	25.00%
Deferred tax assets	$ 18,572	$ 18,339
Temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized	$ 397,900	237,100
Colombia [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Effective rate	37.00%
Short term position [member] \| Colombia [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Tax rate	37.00%
Long term position [member] \| Colombia [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Tax rate	33.00%
Carried forward tax losses of Copa Colombia [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	$ 7,300	$ 10,100

Income Taxes - Summary of Balances of Deferred Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax liabilities
Maintenance deposits	$ (26,586)	$ (23,790)
Prepaid dividend tax	(14,103)	(12,432)
Property and equipment	(8,312)	(7,867)
Other	(3,876)	(6,013)
Set off tax	2,249	5,128
Deferred tax liabilities	(50,628)	(44,974)
Deferred tax assets
Provision for return conditions	7,332	7,606
Air traffic liability	1,281	1,015
Fuel derivative		107
Other provisions	4,859	4,587
Tax Loss	7,349	10,152
Set off tax	(2,249)	(5,128)
Deferred tax assets	18,572	18,339
Total deferred taxes	(32,056)	(26,635)
Deferred tax liabilities
Maintenance deposits	2,796	2,286	$ 5,866
Prepaid dividend tax	1,671	5,300
Property and equipment	445	(1,599)	3,579
Other	(2,137)	(10,147)	11,692
Set off tax	2,879	16,269	(24,568)
Deferred tax liabilities	5,654	12,109	(3,431)
Deferred tax assets
Provision for return conditions	274	4,417	(11,203)
Air traffic liability	(266)	305	1,076
Fuel derivative	107	4,403	94
Other provisions	(272)	(3,059)	4,716
Tax Loss	2,803	4,572	(14,724)
Set off tax	(2,879)	(16,269)	24,568
Deferred tax assets	(233)	(5,631)	4,527
Origination and reversal of temporary differences	$ 5,421	$ 6,478	$ 1,096

Income Taxes - Summary of Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of effective tax rate [abstract]
Income taxes at Panamanian statutory rates	25.00%	25.00%	25.00%
Effect of tax rates in non - panamanian jurisdictions	0.60%	(2.60%)	(11.40%)
Exemption in non - taxable countries	(14.00%)	(12.20%)	(30.00%)
Adjustment for prior period	(0.10%)	0.03%	(0.60%)
Provision for income taxes	11.50%	10.20%	(17.00%)
Net income (loss)	$ 370,023	$ 334,544	$ (224,974)
Total income tax expense	48,000	38,271	32,759
Profit (loss) excluding income tax	418,023	372,815	(192,215)
Income taxes at Panamanian statutory rates	104,506	93,204	(48,054)
Effect of tax rates in non - panamanian jurisdictions	2,626	(9,729)	21,986
Exemption in non - taxable countries	(58,677)	(45,330)	57,599
Adjustment for prior period	(455)	127	1,228
Provision for income taxes	$ 48,000	$ 38,271	$ 32,759

Accounts and Transactions with Related Parties - Summary of Accounts and Transactions with Related Parties (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of transactions between related parties [line items]
Account receivable	$ 318	$ 499
Account payable	12,880	8,681
Panama Air Cargo Terminal [member]
Disclosure of transactions between related parties [line items]
Account receivable	254
Account payable	200
Editora del Caribe, S. A. [member]
Disclosure of transactions between related parties [line items]
Account receivable	32	15
Petroleos Delta, S. A. [member]
Disclosure of transactions between related parties [line items]
Account receivable	19	5
Account payable	10,371	7,504
Banco General, S. A. [member]
Disclosure of transactions between related parties [line items]
Account receivable	12
ASSA Compania de Seguros, S. A. [member]
Disclosure of transactions between related parties [line items]
Account receivable	1	479
Account payable	1,431	687
Desarrollo Inmobiliario del Este, S. A. [member]
Disclosure of transactions between related parties [line items]
Account payable	650	421
Motta International, S.A. [member]
Disclosure of transactions between related parties [line items]
Account payable	81	25
Cable Onda [member]
Disclosure of transactions between related parties [line items]
Account payable	112	21
Galindo, Arias and Lopez [member]
Disclosure of transactions between related parties [line items]
Account payable	31	16
Others [member]
Disclosure of transactions between related parties [line items]
Account payable	$ 4	$ 7

Accounts and Transactions with Related Parties - Summary of Related Party Transactions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Petroleos Delta, S. A. [member] \| Purchase of jet fuel [member]
Disclosure of transactions between related parties [line items]
Related party	$ 290,172	$ 229,899	$ 248,944
ASSA Compania de Seguros, S. A. [member] \| Insurance [member]
Disclosure of transactions between related parties [line items]
Related party	8,527	7,128	9,170
Desarrollo Inmobiliario del Este, S. A. [member] \| Property leasing [member]
Disclosure of transactions between related parties [line items]
Related party	3,625	3,795	2,982
Profuturo Administradora de Fondos de Pension y Cesantia [member] \| Payments [member]
Disclosure of transactions between related parties [line items]
Related party	2,386	3,238
Motta International [member] \| Purchase [member]
Disclosure of transactions between related parties [line items]
Related party	1,632	1,646	1,290
Cable Onda, S. A. [member] \| Communications [member]
Disclosure of transactions between related parties [line items]
Related party	1,448	1,625
GBM International, Inc. [member] \| Technological support [member]
Disclosure of transactions between related parties [line items]
Related party	273	272	533
Galindo, Arias and Lopez [member] \| Legal services [member]
Disclosure of transactions between related parties [line items]
Related party	373	341	271
Global Brands Panama, S. A. [member] \| Purchase [member]
Disclosure of transactions between related parties [line items]
Related party	79	67	47
Panama Air Cargo Terminal [member] \| Handling [member]
Disclosure of transactions between related parties [line items]
Related party	4,869
Lubricantes Delta, S. A. [member] \| Fuel accessories [member]
Disclosure of transactions between related parties [line items]
Related party		63
Editora del Caribe, S. A. [member] \| Advertising [member]
Disclosure of transactions between related parties [line items]
Related party	4	(162)	22
Banco General, S. A. [member] \| Interest income [member]
Disclosure of transactions between related parties [line items]
Related party	$ (2,986)	$ (1,284)	$ (1,301)

Accounts and Transactions with Related Parties - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) ft²	Dec. 31, 2016 USD ($)
Desarrollo Inmobiliario del Este, S. A. [member] \| Desarrollo Inmobiliario [member]
Disclosure of transactions between related parties [line items]
Approximate area of building \| ft²	121,686
Number of lease floor	Five
Corporacion de Inversiones Areas, S. A [member] \| Desarrollo Inmobiliario [member] \| Class B shares [member]
Disclosure of transactions between related parties [line items]
Percentage of ownership	100.00%
Executive officers [member]
Disclosure of transactions between related parties [line items]
Future payments pursuant to a non-compete agreement	$ 3.1
Petroleos Delta, S. A. [member]
Disclosure of transactions between related parties [line items]
Contract agreement term	Two years
Guarantee deposits	$ 11.8	$ 7.0
The last contract subscribed	June, 2016

Accounts and Transactions with Related Parties - Summary of Key Management Personnel Compensation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of transactions between related parties [abstract]
Short-term employee benefits	$ 5,133	$ 3,763	$ 3,570
Post-employment pension	99	72	68
Share-based payments	5,524	5,799	3,023
Total	$ 10,756	$ 9,634	$ 6,661

Equity - Additional Information (Detail) - USD ($)		1 Months Ended			3 Months Ended					12 Months Ended
Equity - Additional Information (Detail) - USD ($)	Dec. 31, 2015	Feb. 28, 2016	Sep. 30, 2015	Nov. 30, 2014	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2014
Disclosure of equity [line items]
Dividend payable annual percentage		40.00%
Dividends payable per share					$ 0.75	$ 0.75	$ 0.51	$ 0.51		$ 0.51
Treasury stock [member]
Disclosure of equity [line items]
Share repurchase program authorized amount				$ 250,000,000
Number of shares repurchase program									167,650
Share repurchase program period value									$ 17,900,000
Accelerated Share Repurchase [member] \| Citibank one [member]
Disclosure of equity [line items]
Number of shares repurchase program	1,960,250
Share repurchase program period value			$ 100,000,000
Stock repurchase program maturity period			3 months
Share repurchase program settlement amount per share	$ 51.01
Class A common stock [member]
Disclosure of equity [line items]
Common stock, shares authorised					80,000,000
Common stock, shares issued					33,776,480					33,743,286
Common stock, shares outstanding	31,017,102				31,185,641					31,112,356	33,050,298
Class B common stock [member]
Disclosure of equity [line items]
Common stock, shares authorised					80,000,000
Common stock, shares issued					10,938,125					10,938,125
Common stock, shares outstanding	10,938,125				10,938,125					10,938,125	10,938,125
Class C common stock [member]
Disclosure of equity [line items]
Common stock, shares authorised					80,000,000
Common stock, shares outstanding					0					0

Share-based Payments - Additional Information (Detail)							1 Months Ended	12 Months Ended
Share-based Payments - Additional Information (Detail)	Jun. 30, 2017 $ / shares	Feb. 28, 2017 $ / shares	Sep. 30, 2016 $ / shares	Jun. 30, 2016 $ / shares	May 31, 2016 $ / shares	Feb. 29, 2016 $ / shares	Mar. 31, 2007 yr shares $ / shares	Dec. 31, 2017 USD ($) yr	Dec. 31, 2016 USD ($) yr	Dec. 31, 2015 USD ($)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share-based compensation expense								$ 7,400,000	$ 7,500,000	$ 4,000,000
Fair value of non-vested stock awards \| $ / shares	$ 107.29	$ 107.29	$ 59.94	$ 59.94	$ 63.30	$ 59.94
Estimated compensation cost for next year								$ 9,300,000	$ 13,100,000
Weighted average remaining contractual life \| yr								2.1	2.8
Additional compensation cost recognized								$ 0
Share option expiration period								Mar. 31, 2017
Vesting period								3 years
Expected term								10 years
2017 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Estimated compensation cost for next year								$ 4,900,000
Stock Options [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Weighted average remaining contractual life \| yr							10
Equity stock options granted \| shares							35,657
Exercise price of the options \| $ / shares							$ 53.1
Weighted-average fair value of the stock options at the grant date \| $ / shares							$ 22.3
Expected dividend yield							0.58%
Expected volatility							37.80%
Weighted average risk-free interest rate							4.59%
Expected term \| yr							6

Share-based Payments - Summary of Terms and Conditions, Relating to the Grants of the Non-vested Stock Award under the Equity Compensation Plan (Detail)	12 Months Ended
	Dec. 31, 2017 shares
February, 2013 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	19,786
Vesting conditions	15% first three anniversaries, 25% fourth anniversary, 30% fifth anniversary
Contractual life	5 years
February, 2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	13,709
Vesting conditions	One-third every anniversary
Contractual life	3 years
April, 2015 [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	4,915
Vesting conditions	15% first three anniversaries, 25% fourth anniversary, 30% fifth anniversary
Contractual life	5 years
June, 2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	10,920
Vesting conditions	One-third every anniversary
Contractual life	3 years
June, 2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	4,912
Vesting conditions	Third anniversary
Contractual life	3 years
June 2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	6,750
Vesting conditions	15% first three anniversaries, 25% fourth anniversary, 30% fifth anniversary
Contractual life	5 years
December, 2015 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	429
Vesting conditions	Third anniversary
Contractual life	3 years
February, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	19,012
Vesting conditions	One-third every anniversary
Contractual life	3 years
February, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	147,000
Vesting conditions	15% first three anniversaries, 25% fourth anniversary, 30% fifth anniversary
Contractual life	5 years
February, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	63,000
Vesting conditions	Fifth anniversary
Contractual life	5 years
May, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	7,899
Vesting conditions	15% first three anniversaries, 25% fourth anniversary, 30% fifth anniversary
Contractual life	5 years
May, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	4,739
Vesting conditions	One-third every anniversary
Contractual life	3 years
June, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	25,280
Vesting conditions	One-third every anniversary
Contractual life	3 years
June, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	7,925
Vesting conditions	Third anniversary
Contractual life	3 years
Sept, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	6,668
Vesting conditions	Third anniversary
Contractual life	3 years
Sept, 2016 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	5,005
Vesting conditions	One-third every anniversary
Contractual life	3 years
February, 2017 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	22,012
Vesting conditions	One-third every anniversary
Contractual life	3 years
June, 2017 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	11,980
Vesting conditions	One-third every anniversary
Contractual life	3 years
June, 2017 [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of instruments	2,237
Vesting conditions	Third anniversary
Contractual life	3 years

Share-based Payments - Summary of non-vested stock award activity (Detail) - Non-Vested [Member]	12 Months Ended
	Dec. 31, 2017 shares	Dec. 31, 2016 shares	Dec. 31, 2015 shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding at January 1	333,183	139,962	199,786
Granted	36,229	291,872	36,291
Vested	(62,224)	(94,208)	(94,704)
Forfeited	(3,035)	(4,443)	(1,411)
Outstanding at December 31	304,153	333,183	139,962

Share-based payments - Summary of Options Award Activity (Detail) - Stock Options [member]	12 Months Ended
	Dec. 31, 2017 shares	Dec. 31, 2016 shares	Dec. 31, 2015
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding at January 1	19,894	20,940	20,940
Exercised	(11,061)	(1,046)
Forfeited	(8,833)
Outstanding at December 31		19,894	20,940

Earnings Per Share - Schedule of Computation of the Income (Loss) and Share Data Used in the Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic earnings (loss) per share-
Net income (loss)	$ 370,023	$ 334,544	$ (224,974)
Weighted-average shares outstanding	42,111	42,036	43,716
Non-vested dividend participating awards	308	322	145
Weighted-average shares outstanding used for basic earnings per share	42,419	42,358	43,861
Basic earnings (loss) per share from continuing operations	$ 8.72	$ 7.90	$ (5.13)
Diluted earnings (loss) per share-
Net income (loss)	$ 370,023	$ 334,544	$ (224,974)
Weighted-average shares outstanding used for basic earnings per share	42,419	42,358	43,861
Share options on issue		5	8
Adjusted weighted average number of ordinary shares outstanding, Total	42,419	42,363	43,869
Diluted earnings (loss) per share from continuing operations	$ 8.72	$ 7.90	$ (5.13)

Commitments and Contingencies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 USD ($) Contract Order Organization	Dec. 31, 2016 USD ($)
Purchase contracts [member]
Commitments and contingencies [line items]
Number of purchase contracts subscribed \| Contract	2
Firm order value	$ 9,500,000,000
Purchase contracts [member] \| Up to one year [member]
Commitments and contingencies [line items]
Number of firm orders in purchase contract \| Order	2
Purchase contracts [member] \| Later than 7 years and not later than 10 years [member]
Commitments and contingencies [line items]
Number of firm orders in purchase contract \| Order	71
Labor unions [member]
Commitments and contingencies [line items]
Number of company's employees	9,045
Percentage of employees unionized	62.00%
Number of union organizations \| Organization	9
Labor unions [member] \| Panama [member]
Commitments and contingencies [line items]
Number of union organizations \| Organization	5
Collective bargaining agreements terms	4 years
Labor unions [member] \| Colombia [member]
Commitments and contingencies [line items]
Number of union organizations \| Organization	4
Labor unions [member] \| Bottom of range [member] \| Colombia [member]
Commitments and contingencies [line items]
Collective bargaining agreements terms	2 years
Labor unions [member] \| Top of range [member] \| Colombia [member]
Commitments and contingencies [line items]
Collective bargaining agreements terms	3 years
Lines of credit for working capital and letters of credit [member]
Commitments and contingencies [line items]
Letters of credit maintained	$ 25,500,000	$ 26,600,000
Lines of credit for working capital and letters of credit [member] \| Line of credit [member]
Commitments and contingencies [line items]
Total line of credit	212,300,000
Committed line of credit	20,000,000
Uncommitted lines of credit	192,300,000
Lines of credit for working capital and letters of credit [member] \| Banco General line of credit [member]
Commitments and contingencies [line items]
Committed line of credit	15,000,000
Lines of credit for working capital and letters of credit [member] \| Banco General overdraft line of credit [member]
Commitments and contingencies [line items]
Committed line of credit	5,000,000
Lines of credit for working capital and letters of credit [member] \| Bladex line of credit [member]
Commitments and contingencies [line items]
Uncommitted lines of credit	100,000,000
Lines of credit for working capital and letters of credit [member] \| Citibank line of credit [member]
Commitments and contingencies [line items]
Uncommitted lines of credit	77,300,000
Lines of credit for working capital and letters of credit [member] \| Banco Nacional De Panama line of credit [member]
Commitments and contingencies [line items]
Uncommitted lines of credit	15,000,000
Lines of credit for working capital and letters of credit [member] \| Borrowing due through 2018 [member]
Commitments and contingencies [line items]
Line of credit balance amount	$ 127,800,000
Lines of credit for working capital and letters of credit [member] \| Borrowing due through 2017 [member]
Commitments and contingencies [line items]
Line of credit balance amount		$ 83,500,000
Covenants [member] \| Bottom of range [member]
Commitments and contingencies [line items]
Earnings before income taxes, depreciation, amortization, and restructuring, or rent cost ("EBITDAR") to a fixed charge ratio	2.50%
Minimum tangible net worth	$ 160,000,000
EBITDAR to a finance charge expense ratio	2.0
Minimum unrestricted cash balance	$ 50,000,000
Cash, cash equivalents and short-term investments	$ 75,000,000
Covenants [member] \| Top of range [member]
Commitments and contingencies [line items]
Total liability plus operating leases minus operating cash to tangible net worth ratio	5.5
Long-term obligations to an EBITDAR ratio	6.0

Financial Instrument - Risk Management and Fair Value - Additional Information (Detail) $ in Millions		12 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2017 USD ($) DerivativeInstrument	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Mar. 09, 2016
Disclosure of detailed information about financial instruments [line items]
Derivative instrument hedging description		Short to mid-term hedging (generally three to eighteen months)
Mark to market derivative income (expense)		$ 2.8	$ 111.6	$ (11.6)
Fair value of derivative contracts		$ 0.0	$ 2.8
Bottom of range [member]
Disclosure of detailed information about financial instruments [line items]
Derivative instrument hedging term		3 months
Top of range [member]
Disclosure of detailed information about financial instruments [line items]
Derivative instrument hedging term		18 months
Interest rate swap contract [member]
Disclosure of detailed information about financial instruments [line items]
Number of derivative instrument company entered \| DerivativeInstrument		1
Description of impact of hypothetical interest rates on the variable-rate debt and marketable securities		If interest rates average 10% less in 2018 than in 2017, the interest income from marketable securities would decrease by approximately $1.4 million and the fair value of the debt would increase by approximately $1.3 million.
Average interest rate on derivatives		10.00%
Change in interest expense		$ 1.4
Increase decrease in fair value of debt		$ 1.3
Brazil, Brazil real [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign currency risk revenue		16.50%	10.10%
Colombia, pesos [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign currency risk revenue		11.40%	11.80%
Argentina, pesos [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign currency risk revenue		7.80%	6.80%
Currency risk [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign exchange risk revenue		43.70%
Percentage of foreign exchange risk expenses		59.80%
Currency risk [member] \| Sistema Complementario de Administracion de divisas [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign exchange rate	13.50			13.50
Currency risk [member] \| Sistema Complementario de Administracion de divisas [member] \| Aeronautical operations [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign exchange rate					13.50
Currency risk [member] \| Sistema Marginal de Divisas [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign exchange rate	198.7			198.7
Currency risk [member] \| DICOM [member]
Disclosure of detailed information about financial instruments [line items]
Percentage of foreign exchange rate		3,345.0	673.7
Currency risk [member] \| Venezuela [member]
Disclosure of detailed information about financial instruments [line items]
Foreign exchange gain (loss)	$ 430.2
Fuel derivative instruments [member]
Disclosure of detailed information about financial instruments [line items]
Derivative instrument hypothetical increases percentage		10.00%
Fuel derivative instruments [member] \| 2018 projection [member]
Disclosure of detailed information about financial instruments [line items]
Derivative instrument expense increase		$ 60.9
Borrowing due through 2025 [member] \| Fixed interest rate [member] \| Bottom of range [member]
Disclosure of detailed information about financial instruments [line items]
Fixed interest rates		1.81%	1.81%
Borrowing due through 2025 [member] \| Fixed interest rate [member] \| Top of range [member]
Disclosure of detailed information about financial instruments [line items]
Fixed interest rates		5.58%	5.58%

Financial Instrument - Risk Management and Fair Value - Summary of Foreign Currency Risk Exposure (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 238,792	$ 331,687	$ 204,715	$ 221,443
Accounts receivable, net	118,085	116,100
Prepaid expenses	71,551	84,805
Other assets	42,841	34,715
Currency risk [member]
ASSETS
Cash and cash equivalents	25,189	51,718
Investments	277	276
Accounts receivable, net	75,769	69,460
Prepaid expenses	32,045	34,635
Other assets	29,459	35,343
Total assets	162,739	191,432
Liabilities
Accounts payable	37,186	32,098
Taxes payable	50,922	55,060
Other liabilities	25,471	40,342
Total liabilities	113,579	127,500
Net position	$ 49,160	$ 63,932

Financial Instrument - Risk Management and Fair Value - Summary of Gearing Ratio (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of risk management strategy related to hedge accounting [abstract]
Total debt (note 18)	$ 1,174,581	$ 1,184,132
Less: non-restricted cash and cash equivalents and short-term investments	(943,900)	(814,689)
Net debt	230,681	369,443
Total equity	2,111,495	1,842,271	$ 1,587,422	$ 2,075,108
Total capitalization	$ 2,342,176	$ 2,211,714
Gearing ratio	9.80%	16.70%

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

Financial Instrument - Risk Management and Fair Value - Summary of Carrying Amount and Fair Values of Financial Assets and Financial Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of detailed information about financial instruments [line items]
Cash and cash equivalents	$ 238,792	$ 331,687	$ 204,715	$ 221,443
Short-term investments	705,108	483,002
Account receivable	118,085	116,100
Long-term investments	65,953	953
Debt	1,174,581	1,184,132
Account payable	129,434	112,857
Derivative financial liabilities		2,801
Financial Assets at Fair Value, Class [Member]
Disclosure of detailed information about financial instruments [line items]
Cash and cash equivalents	238,792	331,687
Short-term investments	705,108	483,002
Account receivable	118,085	116,100
Long-term investments	65,953	953
Fuel derivative instruments [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial liabilities		2,801
Financial Liabilities at Fair Value, Class [Member]
Disclosure of detailed information about financial instruments [line items]
Debt	1,053,070	1,062,952
Account payable	$ 129,434	112,857
Financial Liabilities at Fair Value, Class [Member] \| Fuel derivative instruments [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial liabilities		$ 2,801

Financial Instrument - Risk Management and Fair Value - Summary of Financial Instruments Measured at Fair Value (Detail) $ in Thousands	Dec. 31, 2016 USD ($)
Disclosure of fair value measurement of liabilities [line items]
Fuel derivatives	$ 2,801
Fuel derivative instruments [member]
Disclosure of fair value measurement of liabilities [line items]
Fuel derivatives	2,801
Level 2 of Fair Value Hierarchy [Member]
Disclosure of fair value measurement of liabilities [line items]
Fuel derivatives	2,801
Level 2 of Fair Value Hierarchy [Member] \| Fuel derivative instruments [member]
Disclosure of fair value measurement of liabilities [line items]
Fuel derivatives	$ 2,801

Subsequent Events - Additional Information (Detail) $ in Millions		3 Months Ended	12 Months Ended
	Apr. 05, 2018	Mar. 31, 2018 USD ($)	Dec. 31, 2017	Feb. 05, 2018
Revenue from Copa Airlines' flights to Venezuela [member]
Disclosure of non-adjusting events after reporting period [line items]
Percentage of consolidated revenue			5.00%
Subsequent event [member]
Disclosure of non-adjusting events after reporting period [line items]
Number of days flights between Panama and Venezuela cancelled	90 days
Subsequent event [member] \| Central Bank of Venezuela [member]
Disclosure of non-adjusting events after reporting period [line items]
Foreign exchange rate on first auction				25,000.0
Major ordinary share transactions [member]
Disclosure of non-adjusting events after reporting period [line items]
Non-vested stock, number of awards approved		3
Non-vested stock, grant		39,761
Estimated compensation cost		$ 5.4
Estimated compensation cost for next year		$ 2.5
Non-vested stock, vesting period		Vest over a period of three to five years

Financial Instrument - Risk Management and Fair Value - Summary of Financial Liabilities According to Maturity Date (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	$ 1,304,015	$ 1,296,987
Derivative financial liabilities		2,801
Up to one year [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	458,718	365,535
Derivative financial liabilities		2,801
Between 1 and 4 years [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	549,726	616,031
More than 4 years [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	434,181	466,105
Debt [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	1,174,581	1,184,132
Debt [member] \| Up to one year [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	329,284	252,680
Debt [member] \| Between 1 and 4 years [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	549,726	616,031
Debt [member] \| More than 4 years [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	434,181	466,105
Accounts payable [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	116,554	104,174
Accounts payable [member] \| Up to one year [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	116,554	104,174
Account payable to related parties [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	12,880	8,681
Account payable to related parties [member] \| Up to one year [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	12,880	8,681
Fuel derivative instruments [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Derivative financial liabilities		2,801
Fuel derivative instruments [member] \| Up to one year [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Derivative financial liabilities		2,801
Contractual cash flow [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	1,442,625	1,447,671
Derivative financial liabilities		2,801
Contractual cash flow [member] \| Debt [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	1,313,191	1,334,816
Contractual cash flow [member] \| Accounts payable [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	116,554	104,174
Contractual cash flow [member] \| Account payable to related parties [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Non - derivative financial liabilities carrying amount	$ 12,880	8,681
Contractual cash flow [member] \| Fuel derivative instruments [member]
Disclosure of maturity analysis for derivative financial liabilities [line items]
Derivative financial liabilities		$ 2,801