Corporacion America Airports SA

Hello everyone, thank you for joining us and welcome to Corporación America Airport's second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Inaki Esnaola, 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 Martin Eurnekian, 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 enemies released and recent violence with the FTC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or significant instances. Please note that throughout this call, all references to revenues, costs, adjusted EBITDA, and margins will refer to figures excluding IPX12. Also, all comparisons discussed are year-over-year unless otherwise noted. I will now turn the call over to our CEO, Martin Eurnekian.

Thank you, Inaki, and good morning to everyone joining us today. Our second quarter adjusted EBITDA ex-IFRIC 12 was down 4.5%, primarily driven by our cargo business in Argentina, lower ship capacity in the domestic market in Argentina, and non-recurring costs and expenses in Uruguay. Our cargo business in Argentina was primarily affected by an extraordinary bad year-over-year comparison base. Labor disruptions at customs in April 2025 resulted in longer cargo storage periods and consequently exceptionally high storage revenues. Seat capacity in Argentina was largely affected by Saigon's significantly reduced operating fleet and higher fuel prices. Non-recurring costs and expenses in Uruguay, including costs associated with the implementation and other expenses also waited on adjusted EBITDA during the quarter. Despite these headwinds, our business remains strong and the diversification and quality of our portfolio continue to support our overall performance with four of our six segments delivering double-digit EBITDA growth. We observe healthy international demand and passenger growth across most of our markets in the second quarter. We also continue to deliver strong revenue performance. Growth in both our aeronautical and commercial businesses enabled revenues to increase faster than passenger volumes. We were particularly pleased with the continued improvement in the revenue per passenger throughout the portfolio, including Argentina. Our financial position remains strong, supported by healthy liquidity, continued cash generation and low leverage. This gives us the capacity to invest in our existing operations, pursue our acquisition strategy, and return capital to shareholders while preserving financial flexibility. In that context, our board approved a cash dividend distribution for 2026. This represents an important milestone in our capital allocation strategy, and I would like to discuss the dividend and its underlying principles in greater detail in my closing remarks. I would also like to highlight that our first half revenue and EBITDA remained ahead of the prior year period. With that, let me turn to the traffic trends across our markets. Moving on to traffic on slide 4. Approximately 21 million passengers traveled through our airports during the quarter, leaving total traffic broadly stable year over year. International traffic remained positive Increasing nearly 6% with double digit growth in Armenia and positive contributions across the world, including Argentina. Domestic traffic declined approximately 8%, primarily due to lower seat capacity in Argentina. Excluding Argentina, total passenger traffic increased across all of our markets. Looking at the main markets, in Argentina, international traffic was up supported by strong seat capacity growth during April and May, while overall passenger traffic declined approximately 6%, as growth in international travel was more than offset by weaker domestic volumes. In fact, Argentina recorded the strongest increase in international seat capacity among South American markets during the first half of the year, driven by several airlines announcing new routes and additional frequency. Domestic traffic declined close to 12%, mainly reflecting lower airline capacity, while underlying demand remained resilient. Seat offer was largely affected by Tybondi's significantly reduced operating fleet and higher fuel prices. July traffic showed a sequential improvement from June, with domestic traffic declining 10% and international traffic growing 5% year over year. In Italy, traffic increased just over 5% driven mainly by international passengers, which represented more than 80% of total traffic and grew 6.4%. Both Pisa and Florence airports contributed positively, with domestic traffic also modestly higher. This positive trend continued into July, with international passenger traffic increasing by more than 6%, while domestic traffic remain relatively stable. In Brazil, traffic increased approximately 4%, reflecting continued year-over-year growth. Domestic traffic was slightly lower, but this was more than offset by a 14% increase in transit passengers. Brasilia continued to benefit from its position as an important connecting hub within Brazil's domestic network. Traffic in July remained solid, up 8% year-over-year. Passenger traffic in Uruguay increased 2% despite the calendar shift of the Easter holidays, supported by additional connectivity, including Azul's new service between Montevideo and Belo Horizonte. In July, traffic increased by 3% compared to the same month last year. Armenia reported the strongest traffic growth in our portfolio, up 13%. This strong performance was achieved despite flight cancellations and regional airspace restrictions related to the conflict in the Middle East. Strong demand from all other regions, together with the Wizz Air-based launch at Barnards late last year, more than offset the disruptions caused by the conflict in the Middle East. This positive momentum continued into July, with traffic growing 17% year over year. In Ecuador, traffic increased approximately 2% despite continued security concerns. International traffic grew more than 8% supported by strong demand on routes to the United States, new services from Avianca, JetBlue, and LATAM, and additional frequencies from American Airlines. Domestic traffic remained softer as elevated airfares continued to constrain demand. In July, Traffic declined 1% year over year as strong international traffic growth was more than offset by a decline in domestic traffic. In summary, international demand remained healthy and broad-based during the quarter, helping to mitigate the concentrated pressure on domestic traffic in Argentina. Moving on to cargo on slide 5. Cargo revenues declined primarily driven by Argentina. Such decline was caused by an extraordinary bad year-over-year comparison base. As I explained earlier, labor disruptions at customs in the second quarter of last year extended cargo dwell times and resulted in exceptionally high storage revenues. In addition, normalized customs operations and more efficient clearance processes this year reduced dwell times and, consequently, Various initiatives are already being implemented to enhance profitability in our cargo business in Argentina. Let me now turn over to Jorge, who will review our financial results. Please, go ahead.