Grupo Aeroportuario del Centro Norte S.A.B. de C.V.

Greetings, and welcome to the Grupo Aeroportuario del Centro Norte OMA third quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. At this time, it is now my pleasure to introduce Emmanuel Camacho, Investor Relations Officer. Thank you. You may now begin. Thank you, Rob, and good morning, everyone.

Welcome to UMass Third Quarter 2024 Hearing Needs Conference Call. Joining this morning, our CEO, Ricardo Reyes, and CFO, Rufo Perez-Pierro. Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements which are based on current management expectations and beliefs and are subject to a number of recent uncertainties that could cause actual results with different material, including factors that may be beyond our control. I'll now turn the call over to Ricardo Dueñas for his opening remarks.

Thank you, Emmanuel. Hello, everyone. We appreciate your presence on this call today. First, I will highlight our operational performance, financial results, and Catholic development. Finally, we'll be pleased to answer some questions. During the third quarter, OMA passenger traffic reached 7 million, a decrease of 5.3% in the third quarter of last year. This decree was mainly related to the Pratt & Whitney engine recall, which continues to have an impact on the fleet of the Mexican low-cost carriers. On the domestic front, passenger traffic declined by 7.4%, excluding Acapulco, where the destination continues to recover from the impact of hurricane Otis in October 23. Passenger traffic decreased by 5.8%. The most impacted airports, excluding Acapulco, were Monterey, Culiacan, and Ciudad Juarez, which together accounted for 80% of the total domestic capacity decline during before. Despite this reduction, higher occupancy factors have partially mitigated the impact. On average, these three airports saw a 2.7 percentage point increase in load factors, indicating that underlying domestic and demand remains strong, despite seat capacity being constrained by the ongoing engine revision. In contrast, international passenger traffic reached a historical quarter record level of 0.9 million passengers, an 11% increase as compared to the third quarter of last year. This growth was primarily driven by the Monterey Airport. We saw significant growth on routes to Orlando, Las Vegas, Miami, Atlanta, and Chicago. These five routes accounted for approximately 60% of the total increase in international passenger traffic during the quarter. Additionally, during the quarter, we launched four new international routes, all based at Monterey Airport, further enhancing our international connectivity. We're also expecting the start of operations for more than 10 new routes from Monterey to various destinations in both Mexico and the U.S., set to be launched by the end of this year and early 2025. Moving on to ALMA's financial performance. The sum of aeronautical and non-aeronautical revenues achieved a record performance of 3.2 billion pesos, mainly guided by the positive performance over non-aeronautical revenues. Despite a 5.3% decline in total passengers, non-aeronautical revenues increased by 19% as a result of our successful execution and the consolidation of several strategic commercial and diversification projects throughout the year. Commercial revenues grew 17% compared to the third quarter of last year, primarily driven by restaurants, VIP lounges, and parking revenues, along with several other categories. Commercial revenue per passenger rose by 24%, reaching 51 pesos per passenger in the third quarter. Revenues from restaurants, retail, and car rental grew, driven by the contribution of commercial spaces opened during the previous quarters. VIP lounges growth is attributable to higher access rates and leases renewal of third parties. Diversification revenues increased 27%. OMA Cargo contributed most of this quarter growth with an increase of 32%, mainly due to higher revenues from ground and air cargo operations in Monterey. Hotel services grew by 25%, mainly due to a double-digit increase in average room rate per night on both hotels, as well as higher occupancy rates. Moving on to the capital expenditures front, during the quarter we invested 581 million pesos in MDP investment, major maintenance, and strategic projects. In September 24th, we inaugurated the expansion and remodeling project of the terminal building at Durango International Airport. The project involved the construction over 800 square meters and the renovation of 3,000 square meters. Within this investment, Durango Airport will have the capacity to handle up to 760,000 passengers annually. I would now like to turn the call over to Rufo Perez-Pierro, who will discuss our financial highlights of the quarter.