Grupo Aeroportuario del Sureste, S. A. B. de C. V.

Good day, ladies and gentlemen, and welcome to ASUR's first quarter 2022 results conference call. My name is Orlando, and I will be your operator. At this time, all participants are in a listen-only mode. We will conduct a question and answer session towards the end of today's conference. If you would like to ask a question, please press star followed by one. If you want to withdraw your question at any time, please press star followed by two. If you are using a speakerphone, please lift the handset before making a selection. As a reminder, today's call is being recorded. Now I'd like to turn the call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Thank you, Orlando. And good morning, everyone. I hope you enjoyed the recent holidays with your family and friends, and you're looking forward for more such occasions. Now the pandemic appears to be ending. Additional details about the quarterly result can be found in our press release, which was issued yesterday after market closed, and is available on our website in the investor relations section. Let me remind you that certain statements may use the code may constitute forward-looking statements, which are based on current management expectations and beliefs, and are subject to a number of risks and uncertainties that would cause active results to differ materially, including factors that may be beyond our company's control, including the impact from COVID-19. Starting with the annual Azure shareholders meeting, two dividends were approved last week, in addition to an ordinary cash dividend of $9.03 per share. We are also paying holders of Asus Series B and BB shares an external dividend of six pesos. Both dividends will be paid in a single installment on or after June the 1st this year. This represents 4.5 billion pesos payments. Before we move on a review on our results, let me also note that we recently published our 20F report and the 2021 21 Sustainability Report. Through the COVID-19 pandemic, we used the time as an opportunity to reflect and determine where we could best improve ASUS EHE performance for the benefit of the company and all of our shareholders. We decided that most significant group-level strategic objectives that should be implemented in the short and medium term as follows. Establish a board-level sustainability committee. Set new targets for emission reductions and energy efficiency, including the installation on both on-site and off-site solar panel generation. Supplement our water consumption with systems that capture and use rainwater. Promote greater diversity on our workforce and on the company's board. Ensure equal compensation between genders. It is important to note that all of these objectives were presented and approved by Azure's board. And to help ensure that incentives are aligned with the ESG goals and commitments, far to 15% of the annual performance bonus of the executive officers who have ESG responsibilities is based on them meeting their ESG targets. Our long-term objectives include achieving carbon neutrality by 2030 with 95% of energy source from clean, renewable sources. Notable improvements to ASUR's governance include the overboarding. These are just a few meaningful ESG improvements we are making. I invite you to read our sustainability report to learn about many others. Now, moving on to a review of our operational financial results together with some color on travel demand during the quarter. Starting with passenger traffic, total traffic was up over 70% year-on-year and surpassed first quarter 19 levels by nearly 9%, reaching close to 15 million passengers driven by clothes across the three geographies. While the Omicron variant mainly impacted traffic in Mexico and Puerto Rico and slowed the pace of recovery in January, we saw better performance starting in the second half of February. Again this quarter, Colombia posted the strongest recovery, exceeding first quarter 19 traffic by 30% with similar growth rates for domestic and international travel. Puerto Rico also performed well with traffic up nearly 4% against first quarter 19. mainly driven by a 7% increase in domestic traffic, while international traffic continued to improve gradually, reaching 78% of the first quarter 19 levels. Traffic in Mexico, first quarter 19, beating levels by slightly over 3%, driven by similar growth rates in both international traffic and domestic traffic. Domestic traffic at Cancun Airport increased nearly 10%, while international traffic was up middle single digits, supported by the harsh winter season in North America and continued recovery in the European passenger traffic, particularly in the second half of the quarter as concerns of Omicron subside. As anticipated, we're also seeing a recovery in European passengers, although somewhat damped by the Omicron variant. However, it remains to be seen how the war in Ukraine will impact Europe's economy and the rest of the world. Although the rate at which Mexico's economy recovers is unknown at this time, we expect domestic traffic to continue its gradual recovery. The lifting of other countries' travel restrictions and their own economies recover also expected to benefit our Mexican efforts. As noted in prior calls, business travel is expected to last the recovery in the future. Therefore, we expect traffic at our Merida, Veracruz, Minatitlan, and Villamosa airports, which were an average of 18% below 2019 traffic levels this quarter, to recover at a slower pace. In short, we remain cautiously optimistic about global travel demand, and if travel is not hindered by a fourth wave of or higher jet fuel prices or other forms of inflation, We expect total passenger traffic to reach 2019 levels by the second quarter this year. Looking at our balance sheet, we maintain a strong capital structure and a healthy debt maturity profile. We ended the quarter with cash and cash equivalents of 9.7 billion pesos, nearly 14% above December 21 levels. Mexico and Colombia contributed with $1.7 billion and $328 million in cash, while Puerto Rico reported an $824 million decline in its cash position. Net debt to last 12 months' EBITDA was 0.3 times at close of the quarter, with interest coverage at 9.2 times also, Only 3.4 of the principal debt payments are due later this year. Account receivables were up 22% year-on-year and increased over 100% in Mexico, reflects increased business traffic activity. And partially upset by declines of around 90% and 30% in Puerto Rico and Colombia. Moving now to the P&L, starting with our top line, Revenue sex construction increased 90% year-on-year, reaching 5.2 billion pesos in the first quarter, and we're up 31% when compared to first quarter 2019, driven by growth in aeronautical and non-aeronautical revenues. We saw improved performance across geographies, with Mexico accounting 71% of the total ex-construction revenues in the quarter, Puerto Rico 17%, and Colombia 12%. Commercial revenues increased 92% year-over-year, driven mainly by the 87% recovery in passenger traffic, with increases of 118 in Mexico, 53% in Puerto Rico, and nearly 82% in Colombia. Commercial revenues per passenger reached 121 pesos in the first quarter, above the 108 pesos reported in first quarter 21 and 105 in first quarter 19. By geography, commercial revenues were in the range of 146 to 149 pesos in Mexico and Puerto Rico and 41 pesos in Colombia. We also saw an improvement in traffic mixed with water, with a share of higher spending Europeans back to levels observed in 2019, and with a continued growth in the U.S. tourism. The share of domestic traffic returned to 2019 levels, but the major difference is that the number of Canadian travelers is still far below pre-pandemic levels. Operating expenses and ex-construction were up 30% year-over-year and just 5% higher when we compared with first quarter 2019 levels. This was significantly below of the 91% and 31% increase in revenues ex-construction when compared with first quarter 21 and first quarter 2019. In Mexico, ex-construction increased 37% year-over-year mainly due to the higher technical assistance and concession fees resulting from higher revenues and EVA, along with a higher cost of services. Higher cost of sales from directly operating stores are also contributing to the increasing cost, as many passengers are buying meals to go at their convenience stores instead of going to the restaurants. Compared to the first quarter of 19, operating costs and expenses and construction were up 26% with revenues and construction up 33%. In Puerto Rico, costs were up 21%. The court benefited from a 9.5 million pesos high reimbursement of expenses on the Coronavirus Response and Relief Supplement and Appropriation Act when compared to the recovery and expenses under the CARES Act in the same quarter last year. When compared to the first quarter of 2019, comparable costs were down 20%, while revenues increased 20%. Final expenses in Colombia increased 23% year-on-year, mainly driven by higher concession fees from higher travel activity. Compared to the first quarter of 2019, revenues were up 29%, while costs declined 9%, both ex-construction. With regards to profitability, consolidated EVDA was up 130% to 3.7 billion pesos, with increases across countries' operations. Mexico posted a 149 increase in EBDA, reaching 2.8 billion pesos, while EBDA increased 41% to 502 million pesos in Puerto Rico, and 239% to 373 million pesos in Colombia. Compared to the first quarter, 19, EVDA increased 38%, with increases of 38% in Mexico, 19% in Puerto Rico, and 95% in Colombia. Driven by passenger traffic growth, increased commercial revenue per passenger, higher tariffs, and operational leverage. Adjusted DVDM margin exit-free growth reached 71% this year out of the 59 posted in the first quarter 21 and the 68 achieved in the first quarter 19. By country of operations compared to the first quarter 19, adjusted DVDM margin expanded 119 basis points in Mexico to nearly 76%. and by 18 percentage points to 62% in Puerto Rico, while Colombia saw a 30 basis points contraction to slightly over 57%. In terms of capex, we invested a total of 316 million pesos in the quarter, mainly in Mexico, to a lesser extent in Puerto Rico and Colombia. Let me provide an update of the key projects. The expansion of the terminal building in Mérida remains on schedule with the third phase of the project that we expect to conclude by the year end. At Cancún Airport, we're working on the first phase of the terminal for expansion that is scheduled to be completed by the year end. This phase entails adding two boarding gates of the International Front. And finally, in Mexico, the terminal expansion at Tapachula should be completed during the second quarter. In Puerto Rico, we continue with major maintenance and repairs to the runways and taxiways and the remodeling of Terminal D. This concludes my remarks of the first quarter results. Orlando, please open the lines for questions.

Thank you. Again, to the audience, it is star, then one for questions. And again, please make sure your mute function is turned off or the handset is picked up before pressing the corresponding digits. All right. And we'll take our first question from Alan Macias with Bank of America. Please go ahead.

Hi. Good morning. Thank you for the call. Just one question on EBITDA, adjusted EBITDA margins. Do you see these levels as sustainable going forward? And if I may, just another question on the new Mexico City airport. Are you seeing more activity seeking new routes to Azul's airport? Thank you.

Hi, Alan, and good morning, and thank you for your questions. Well, in terms of EPA margins, you know, we don't like to talk about margins because costs and revenues are independent. If we believe that the recovery process is in progress and we will have more passengers going forward. With the same base cost as we had for last year, of course, margins will expand. It is clear for everybody that inflation is going up. Mexico is not the exception. The inflation here is really strong. And, of course, we will have to adjust some of our costs. going forward. In terms of the New Mexico City, as of today, we have three routes with that airport. That is the case of Villahermosa, Merida, and Cancun. Merida and Cancun are working really well in terms of load factor, which is not the case of Villahermosa. Apart from these, I do not expect any other in the short term.

Thank you.

You're welcome. Okay, and our next question will come from Alejandro Samacona with Credit Suisse. Please go ahead.

Hi, Adolfo. Thank you for the call. Quick question. Looking at the capacity plan by airlines, it seems that for this year, there is still a pent-up demand from international market for Cancun, mostly from U.S. and Canada. But I was wondering how airlines or leisure travelers, at least you have been seeing how they are reacting to the safety issues that we have recently seen in Cancun.

Hi, Alejandro. Well, so far we have seen a very strong demand from the U.S. and Europe. In the case of Canadians, as I said before, I believe we lost them for this winter season, and I believe they're going to be back to the first quarter, to the 19 levels up to the next winter season, which will be November, April this year, next year. That is the only region that is still standing. In terms of the others, we are seeing very strong demand.

Okay, but overall, you haven't seen any backdrop from capacity plan amid these safety issues, right?

No, you just have to see the numbers.

Okay. And then on the NDP negotiation, I know it's kind of early, but do you have any expected timing for the outcome, mostly assuming that the last negotiation in 2018... was finished six months earlier. And also in the NDP, if you have any preliminary expectations for the regulated return, assuming that the, I mean, assuming the recent increase in rates.

Well, you know, it's too early to tell anything about this. We're in the process of constructing the proposal that we will deliver to the government at the end of this year. So the negotiation will be in progress next year.

Okay. Thank you very much.

You're welcome. All right. Up next, we will hear from Francisco Suarez with Scotiabank. Please go ahead.

Thank you for the call. Good morning. Two questions on your balance sheet. What triggered the increasing in restricted cash in the quarter was considerably high. And secondly, on your accounts receivables, any write-offs on accounts receivables that have been implemented in the quarter or that you may expect, or perhaps the way around, I mean, potential reversals to provisions? Thank you so much.

Okay, the restricted cash increase significantly means $50 million, and these were some guarantees that had to be in place for the bonds of Puerto Rico since 2013. But these guarantees now are supported by the company, so that is why you saw that increase of around $50 million. In terms of the country's evils, we are not concerned About that, the only problem I have mentioned several times is the case of Interjet, which I don't believe they're going to pay us 73 million pesos, which all of this has been discussed. Perfect. Thank you so much. Take care. You will.

And up next, we'll hear from Guillermo Mendez with JP Morgan. Please go ahead.

Good morning and thanks for taking my question. A follow-up question in terms of the traffic. If you could provide a little more color in terms of what to expect in Puerto Rico and Colombia, having seen some different trends in these two regions. So if you could provide some additional information on what to expect going forward.

Yes, of course. In the case of Colombia, Again, I'm really surprised at what we are seeing. Colombia has been extremely strong over the last five months. Of course, it's important to remember that Colombia was closed, the whole country was closed for aviation during six months. So I don't know if what we are seeing today is the effect of those six months that were closed. But for the moment, we're happy to see these numbers. and continues to be very strong, even that some of this traffic is business traffic. In the case of Puerto Rico, I have said that before, we should be expecting a normalization in the future. But of course, for the moment, we're happy to see that they are surpassing what we were expecting in terms of the first quarter 2019 level. So going back to Puerto Rico, they should be growing between 1.5 to 2% a year. So by now, they should be 106, 107, and they are better than that.

Okay, pretty clear. And just another follow-up question on your MDP. Based on your current MDP, just to double check, if you have already fully implemented the tariffs already in the first quarter of this year, or should we expect an additional increase over the coming quarters?

Well, the average maximum tariff during the quarter was 245 pesos, which is the lowest in the case of Mexican airports. We have not been able to recover... the 99.8 maximum time compliance yet, so we will expect to capture some of these in the coming quarters.

Okay, very clear. Thanks, Adolfo. You're welcome.

Our next question will come from Rodolfo Ramos with Bradesco BBI. Please go ahead.

Good morning, Adolfo. Thank you for taking my question. It's a follow-up on the MDP question. Just wanted to see whether you're expecting in this preliminary submission or this early in the process, are you expecting to incorporate the potential impact of Tulum? I mean, we will really not know the full extent of the impact until probably after Your MDP is concluded, but just I wanted to see how are you expected to approach the potential impact for Tulum? And then I have a second question.

Okay. So we are constructing, again, our draft that has to be delivered by the year-end to the government. Of course, we are expecting the airport of Tulum to be concluded by the end of 2023. That's what the government has said. So some of the effect of these, of course, will have to be seen in the next MDP.

Okay, thank you. And just to follow up on your ESG efforts, and you mentioned that you have installed solar panels across several of your airports. I just wanted to see how does the recent moves on the energy sector affect could impact either the operationally or the profitability of these panels? I'm not sure if you're hooked up to the CFE line and you have to buy it back, or how does that work?

Thank you. Robert, for what we're installing in our airports, and actually in the case of Cancun and Merida, will not have any impact on what you have seen in terms of the initiatives or the electricity law.

Okay, and just the last one, if I may, on traffic recovery. I mean, as we've gone out of the holiday season in Mexico, how are you seeing the more business-oriented routes behaving? I don't know if you can quantify that. Perhaps anecdotally what you think is perhaps more business-driven, even at Cancun, whether it's expos, conferences, As we come out of this more leisure-intensive season, how are you seeing the outlook for more business-oriented travel?

The business traffic that we have in the company is basically related to the airports I mentioned. As you can see during the quarter, those were 18% below first quarter 2019 levels. It's improving, but the improvement is it's really low. So that is why I believe those are going to be able to recuperate the pre-pandemic level up to the year end of maybe next year. So it's better, but it's really low.

Thank you, Adolfo.

You're welcome. Next, we'll hear from Felipe Nielsen with Citibank. Please go ahead.

Thanks for taking my question. I'd like to have a follow-up question about the concerns on traffic in southern Mexico that was already asked before, but I wanted to understand better How is the mix of travelers profile in this region? And if it has changed in this quarter, and how is it going? It's going to be looking forward.

Well, Felipe, thank you for your question. If you want to see the passenger mix results, you can go to the 20F report, and you will how it was for last year. In the case of the first quarter, in comparison of pre-pandemic levels, the only missing part is the case of Canadians. Apart from that, everything is working really well. With, I would say, extraordinary growth from the case of the U.S., probably going forward once everything is open or we can say the pandemic is over, probably the U.S. will use some other places in the world and we will see a decrease in the case of this traffic. But so far it has been very strong or still very strong. And that's why we believe that we will have a nice Great.

But regarding the travelers profile, do you see more like families and family with children going to those places? Or do you see any changes in the profile like other kinds of people, like single people or other profiles? going to those places.

The only change we have seen is less older people, and that has resulted from COVID-19 concerns.

Okay. Thank you very much.

You're welcome. Our next question will come from Juan Macedo with GBM. Please go ahead.

Hi, thanks for taking my question and congrats on the results. My question is regarding the new commercial spaces you open in Puerto Rico and Colombia. Do you expect to maintain the pace of these expansions and do you have an estimate of the impact it could have in commercial revenues?

Hi, good morning. Well, thank you for your words. The case of Colombia, if you remember when we got the shares of this company back in 2017, we said that between three to four years to really explore the full potential. Now, of course, the pandemic was in the middle of this. And I have to say with what you are seeing in the report that we didn't lose the time of the pandemic. So we took advantage of these and we made very good negotiations in the case of Colombia. That is why you are seeing a lot of new spaces there. There are some that are still pending that are coming. But probably by the year end, we will be able to say that we have done what we expected originally in our plan back in 2017. In the case of Puerto Rico, it's business as usual. Nothing relevant to say.

Okay, great. Thanks.

You're welcome. Next, we will hear from Gabriel Himmelfarb with Scotiabank. Please go ahead.

Hi, Adolfo. Good morning. Congrats on the results. Just a quick question. I have been reading and hearing through social media and several newspapers that violence in Quintana Roo is increasing strongly. We heard that, well, I heard that in the, more close to the Bacalar region and Chetumal, it's highly unsecured. Even there's some communities that they drop off the police. So can you give us a bit of color of what you have been hearing, what you have seen in the Quintana Roo state, specifically about, and how can it impact the traffic, the general traffic, or the international traffic?

Well, of course what you are seeing is not what we like to see, but what I have to say is that the government, the state government and also the federal government are or have improved a lot on these events. So most of the people that have done something wrong over the last couple of months have been caught. So security has improved in terms of what, or the reaction of the state government and the federal government. So, so far, It's what your sense of numbers. We, of course, we will not be enabled to find what is the real impact on our traffic, but so far the numbers are doing well.

Okay, thank you. And just a quick follow-up question. You said that maximum tariffs were about 99.8% and the remaining in the coming, you're expecting the coming quarter, that's right?

No, what I said is that we were not able to reach the 99.8 maximum total compliances that we have before. So what I'm saying is we are going to catch up in the coming quarters. The maximum rate for the quarter was 245. If you compare that with what we had in the first quarter after the Before that, the external maximum tariff process was around 220. So that is the improvement. So we have not reached yet the 99.8% or the 17% increase that we got last year.

Okay, thank you. Thank you for your comments.

And up next, we'll hear from Lucila Gomez with Compass Group. Please go ahead.

Hi. Good morning. I have two questions. My first question would be normalize traffic. Should we expect to see a ramp up in cost? Meaning, is it sustainable to continue with current control costs, or will it be necessary to increase them eventually?

Well, hi, good morning. As I said, yes, we will have to increase some of our costs due to the inflation that we are seeing in Mexico and the rest of the world. So in terms of the amount of cost, yes, you will see some increase in the future.

Thank you. And my second question would be, considering sales, in terms of sales, are you currently, now that they're improving, are you currently giving any incentives or discounts to stores and restaurants, or are there none anymore?

I was unable to give your question, Will.

Did you repeat? Yes, it's a pleasure. Thinking in sales, On the non-aeronautical side, are you currently giving, for example, discounts to sports and restaurants on the airports, or do you not have any anymore?

No, we are not providing any discount to them due to the way that we collect. So normally we collect the minimum, the higher between a minimum guaranteed payment per passenger or a percentage on sales. So that is why we do not have to give discounts to them. So in that sense, if there is no passengers, the rent is zero. And also, that is why we didn't have to renegotiate all of these contracts. So, we are not providing any discount to them.

Got it. Thank you.

You're welcome. Okay. Up next, we'll take a question from Javier Gael with GBM. Please go ahead.

Hi, Arun. Thank you for the call and congrats on the results. I'm sorry if this question has been asked and answered, but I joined a little bit late. I just wanted to understand regarding the airlines and how are you seeing them react to the tariffs increase? Is there any back reps from them? Have you seen them reluctant to open any routes? I just want to understand how does the picture look for the airlines given the the recent hike in tariffs, even though, as I understand, it's amongst the lowest of the groups. But just to get your sense on that would be very helpful.

Well, we have not seen any, let's say, comment or criticism from them. We are the cheapest by far in the case of Mexico. You can see that with the maximum rate of cap and OMA. and also with what we have to pay for the case of Mexico City. So we have the cheapest airports in Mexico, and I would say with high quality. So in that sense, we have not seen any comment or rejection from the allies.

Great. Thank you, Adolfo. And regarding new routes coming on, What are you seeing? Is the security level still an issue for Mexico or is that something that airlines are not looking into?

Well, you know, we don't, as I said, we don't like to see what we are seeing. The only thing that is a positive thing is that the state government and the federal government are reacting very fast on the recent events, and I hope that this will diminish the situation in the case of the Southeast region. That's great to hear. Thank you, Adolfo. You're welcome.

And up next, we'll have a question from Pablo Montsevais with Barclays. Please go ahead.

Hi, Adolfo. Thanks for taking my question. Just want to have more information on your take on how inflation will be reflecting more strongly on cost, I see that there's a lack to the current inflation to what we have seen under numbers. So can you please explain to us how's the lack working and when should we see this higher cost going forward? Thank you.

Okay, well, let me go to the case of personnel in the case of Azul. So once the pandemic was here, we put the brakes on all the expenses. In the case of personnel, we stopped salary increases, canceled bonus, not filling vacancies, etc. So that has been... adjusted us from this quarter. So some increases in salaries were there. We paid some bonus from the results of last year, and we're starting to feel some vacancies. So that's why I'm saying inflation effects will have to be seen in the coming quarters.

Okay, but for example, in the contract that you have with security personnel and maintenance, should we expect the inflation to hit this year or next year? How does that work?

That is adjusted every, when the contract is finished, normally they adjust with inflation. So it is not just, it is not one contract for the whole company or for the nine airports in Mexico or in Puerto Rico or Colombia. So it's happening as we speak.

Oh, perfect. Thank you very much.

You're welcome. All right. Up next, we'll hear from Alan Macias with Bank of America. Please go ahead.

Hi. Just two follow-up questions or two more questions. On Mexico's aviation safety rating, can you give us any insight into the efforts Mexico is having to recover Category 1 and if you see any timing for this recovery? And the second question would be on On the people, the technical people that review and approve the master development plan, have there been any changes in the people that do the actual technical review and approval? Thanks.

Well, Alan, to be honest, I don't have any insights in terms of the category one. I have probably the same kind of information that you have, which is the newspaper, where the Mexican government is saying that they will recover these in the second half. But Volaris has announced a new flight, or that they're willing to have a new flight from IFA to LA, and that will not occur if they do not recover the category one. So that's what I can say to you. I don't have any insight there. In terms of the people that review all of these, I would say MOLAS is the same as we had before. So no major changes we have seen on this.

Thank you. Great.

You're welcome.

And up next, we'll take a question from Giovanni Bizonio with Santander. Please go ahead.

Hi, Alonso. Congrats on the results. And two quick questions, if I may. The first one is, could you give us a color of what the government of Santander is doing to bring control of the security of Cancun? And the second question is about the traffic. We saw a couple of weeks I go back and look at the notes that are currently now on the top 10 busiest airport concerns on international passengers. But now that the COVID restrictions are more flexible around the world, should we expect the accelerating traffic, especially coming from the U.S., from now on? Thanks.

In terms of the security, they are improving a lot. The C5, which is the security center in Cancun, has made a lot of investments and they have a lot of cameras all around the area. And that has helped a lot on the reaction of these recent events. In terms of the That Cancun was the 10th largest airport in the world last year. That was because some of the airports were affected or more affected by COVID-19. We will not remain as the 10th largest airport in the world this year. That's for sure.

Okay, thanks.

You're welcome. And now we'll take a question from Fernanda Arrequia with BTG. Please go ahead.

Hey, Adolfo. Congrats on your results. Just quickly here on my side, we saw that you closed it with a very comfortable leverage during this queue. So I was wondering if you could comment on your intention to diversify your revenues outside the regions you already have. operate, so we have Barbados airport auction this year. Could you comment on your potential participation on this auction or any other auction? Thank you.

Hi, Ferlanda. No, we do not have any significant to tell about auctions, and we are not participating in any today.

Okay, thank you.

You're welcome. Again, to the audience, it is star, then one for questions. And that concludes the question and answer portion of today's conference call. I would like to turn it back over to Mr. Castro for closing remarks.

Thank you, Orlando, and thank you, everybody, for participating in our first quarter results conference call. On behalf of Azul, we wish you a good day. Goodbye.

Ladies and gentlemen, that concludes Azul's first quarter 2022 results conference call. We would like to thank you again for your participation. You may now disconnect.