Corporacion America Airports SA

Thank you for your patience. This afternoon's call will begin shortly. Please stay on the lines. Thank you. Thank you. Thank you. Good morning and welcome to the Corporation America Airport's second quarter 2022 earnings conference call. A slide presentation accompanies today's webcast and is available in the investor section of the Corporation America Airport's investor relations website. As a reminder, all participants will be in listen-only mode. There will be an opportunity to ask questions at the end of the presentation. At this time, I would like to turn the call over to Patricio Iñaki-Esneola, Head of Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Martín Armequian, our Chief Executive Officer, and Jorge Arruda, our Chief Financial Officer. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements, and I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or change events or circumstances. Now, let me turn the call over to our CEO, Martín Euromechiano. Thank you, Iñaki.

Hello, everyone, and welcome to our second quarter 2022 earnings call. We reported another strong quarter as passenger traffic continues its recovery trend. Adjusted EBITDA increased to $111 million driven by sustained improvements across our operations, and up from $9 million in the same quarter last year. Adjusted EBITDA margin ex-IFRIC has recovered to 36.2% up from each single EBIT margin in the second quarter of last year. Robust commercial revenues stand out this quarter, beating pre-pandemic levels by 20% Jorge will discuss this in more detail shortly. We have also made significant strides in enhancing our leverage. We are netbed to adjusted EBITDA ratio declining sharply on track to continue trending down. Now, looking at traffic trends on slide four. Pent-up demand and lifting of travel restrictions continue to support the positive traffic recovery trend with a total of 15.1 million passengers traveling across our airports during the quarter and reaching 76% of second quarter 2019 levels. This momentum continued into July with traffic at nearly 80% of pre-pandemic levels. Armenia, which only operates international travel, again led the rebound with traffic surpassing second quarter of 2019 levels by 6% in the quarter, accelerating to plus 12% in July. Note that all COVID-related requirements were lifted last May. Despite increased activity, we continue to remain vigilant on the geopolitical situation in the region. Traffic in Italy was up by more than five times year on year, to nearly 85% of second quarter of 2019 levels, benefiting from the start of the summer season and the full lifting of travel restrictions, which was in effect last June. This solid performance continued into July with traffic over 90% of pre-pandemic levels, and we expect a strong summer season. In Brazil, traffic stood at 76% of second quarter of 2019 levels, slightly below the 77% posted in the first quarter as rising fuel prices added pressure on airfares. Traffic growth picked up in July to 85% of pre-COVID levels. Argentina and Uruguay increased to 76% and 65% of second quarter of 2019 levels, respectively, during the second quarter. Traffic continued the recovery trend in July, In particular, Argentina is benefiting from the elimination of COVID test requirements to entry into the country, which was in effect in early April. Ecuador posted steady growth in the quarter, reaching 94% of pre-pandemic levels. While domestic flights were impacted by cancellations in June due to social unrest, routes to Europe and the U.S., and Panama continued to post a solid performance with international traffic at 97 percent on the second quarter of 2019 levels. Total traffic accelerated in July to 96 percent of pre-pandemic levels. Moving on to the next slide, cargo operations continued to recover, reaching close to 84 percent of second quarter of 2019 volumes. Noteworthy this quarter are the performances of Italy and Uruguay, which posted cargo volumes exceeding pre-pandemic levels, while Argentina reached 86% of the second quarter of 2019 levels. Now, let me turn to Jorge, who will review our financial results. Please, Jorge, go ahead.