Copa Airlines has placed a firm order for 40 Boeing 737 MAX aircraft with options to purchase up to 20 additional jets, the companies announced at a signing ceremony in Panama. The Panamanian flag carrier plans to use the aircraft to expand and modernize its all-737 fleet over the next eight years.

The agreement was signed by Copa Airlines CEO Pedro Heilbron and Boeing Commercial Airplanes President and CEO Stephanie Pope, with Panama President José Raúl Mulino and U.S. Ambassador Kevin Marino Cabrera in attendance. The purchase was previously unidentified in Boeing's order book.

Copa Airlines operates more than 110 Boeing 737 aircraft, including Next-Generation 737s, 737 MAX jets, and 737 Boeing Converted Freighters. The airline connects 88 destinations across 32 countries in North, Central and South America, and the Caribbean from its Panama hub.

Combined with its existing orders, Copa Airlines plans to expand its fleet by more than 100 737 MAX airplanes. The carrier will use the 737-8 and 737-9 variants to serve both high-density short routes and some of the world's longest 737 MAX routes connecting Panama with North America, Latin America and the Caribbean.

"The addition of new aircraft will be key to continuing to expand our operations and route network, while supporting the economic development of Panama and the region," Heilbron said in a statement.

Boeing (NYSE: BA) forecasts that airlines in Latin America and the Caribbean will need more than 2,300 new airplanes over the next 20 years, with single-aisle jets comprising nearly 90% of deliveries.