Copa Holdings, S.A. (CPA): Flying Where the Growth Is, Emerging Markets Airlines

The airline is set to begin long awaited expansion into China as analysts are saying Hawaiian could begin to be pressured in the American west coast market. However, Hawaiian will likely continue expansion in the U.S. making for a combination of expansion on both sides of the Pacific, giving investors an airline that’s a hybrid between emerging and developed markets.

Airline danger zone

Airlines are often considered higher risk than the average investments, and emerging markets are considered to have added risk as well when compared to developed markets. But emerging markets airlines are not necessarily a simple addition of both factors. All U.S.-based legacy carriers have declared bankruptcy at one time or another but among the three airlines mentioned above, only Hawaiian has declared bankruptcy in its history. Although, investors do need to keep both the risks of airlines and of foreign markets in mind when investing in emerging markets airlines, be they foreign or Hawaii-based.

Alexander MacLennan has no position in any stocks mentioned. This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security. The Motley Fool has no position in any of the stocks mentioned. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Flying Where the Growth Is: Emerging Markets Airlines originally appeared on Fool.com and is written by Alexander MacLennan.

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