RIO DE JANEIRO, June 7 (Reuters) - Copa Airlines has

no plans to hedge fuel despite the recent price shock linked to

the war in Iran, CEO Pedro Heilbron told Reuters, betting its

strong balance sheet and pricing adjustments will help absorb

the impact.

The Panamanian carrier has not used fuel hedges for more than a

decade and does not intend to change course, he added in an

interview on Saturday on the sidelines of a global gathering of

airline executives in Rio de Janeiro.

"We're just assuming the cost," Heilbron said. "Yields have

been adjusted, but we're not covering 100%. It's a partial

impact."

Airlines globally have been raising fares in response to higher

fuel costs, though increases are constrained by competition and

demand sensitivity. The industry is banking on fuel prices to

gradually ease, the executive said.

Heilbron noted Copa's strong liquidity and conservative

balance sheet provide flexibility to weather volatility. "That

gives us room to maneuver and to also be resilient," he said.

Demand in Latin America has remained healthy, Heilbron said,

supported by stronger currencies in key markets such as Brazil.

Copa, which operates a hub model from Panama connecting

destinations across the Americas and flies only Boeing

737 aircraft, continues to grow in line with deliveries from the

U.S. planemaker.

The carrier recently agreed to buy up to 60 737 MAX jets, which

Heilbron said would enable both expansion and fleet renewal.

"There's high demand for new aircraft for both Boeing ( BA ) and

Airbus. So if one doesn't order early enough, then one

is left without deliveries. So this new order is from 2030 to

2034," he said.

The order includes flexibility across MAX variants and

options for the larger MAX 10, which has yet to be certified.

Copa is reviewing its future fleet mix and has not made a final

decision on the variant.

Boeing's ( BA ) performance has improved, with deliveries arriving

on time or slightly ahead of schedule, the CEO said.