Copa Holdings, S.A.

Ladies and gentlemen, thank you for standing by and welcome to Cobra Holdings' fourth quarter earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, you will have to press star, then 1 on your touchtone telephone. As a reminder, this call is being webcast and recorded on February 11, 2020. I will now turn the conference, give a call over to Raul Pascual, Director of Investor Relations. Sir, you may begin.

Thank you, Celine, and welcome everyone to our fourth quarter earnings call. Joining us today are Pedro Hebron, CEO of Copa Holdings, and Jose Montero, our CFO. First, Pedro will start by going over the actions the company has taken to mitigate the impact of the COVID-19 pandemic. followed by Jose, who will discuss our fourth quarter and full year financial results. Immediately after, we will open up the call for questions from analysts. Copa Holdings financial reports have been prepared in accordance with international financial reporting standards. In today's call, we will discuss non-IFRS financial measures. A reconciliation of the non-IFRS to IFRS financial measures can be found in our earnings release, which has been posted on the company's website Our discussion today will also contain forward-looking statements, not limited to historical facts that reflect the company's current beliefs, expectations, and or intentions regarding future events and results. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially and are based on assumptions subject to change. Many of these are discussed here on our report filed with the SEC. Now I'd like to turn the call over to our CEO, Mr. Pedro Hebron.

Thank you, Raul. Good morning to all, and thanks for participating in our fourth quarter and full year earnings call. I hope that all of you and your families are doing well and staying safe. Before we begin, I'd like to thank all our coworkers for their commitment to the company and recognize their continuous efforts and many sacrifices during these difficult times. To them, as always, my utmost respect and admiration. It goes without saying that 2020 was the most challenging year the industry has ever faced. And while we all hope 2021 will be better, we know it's going to be a long and twisting road to recovery. During the year, we undertook several actions to strengthen the company and mitigate the impact from the COVID-19 pandemic, including tapping into new liquidity sources, raising more than $650 million via a convertible bond issuance, and several secured and unsecured committed credit facilities. recognizing the severity of this crisis early on and aggressively canceling or deferring all capital expenditures that were deemed non-essential, and immediately began a series of cost reduction initiatives, including contract renegotiations with suppliers and a thorough evaluation of our entire cost structure. Adjusting the company's size to better match future capacity over the next few years while retaining the flexibility to accelerate or slow down our capacity redeployment plans if needed. Simplifying our fleet by retiring 14 Embraer 190s and 14 737-700s, which will eventually lead to significant improvements in unit costs. Implementing robust biosafety protocols and a simplified onboard product offering to ensure the safety of our passengers and crew members. Providing flexibility to our customers by waiving change penalties and offering credits for future travel, which led to most passengers keeping their tickets despite the prolonged stoppage of our operations. And to this day, we continue implementing new initiatives to mitigate the impact from the pandemic, strengthen the company, and facilitate a safe and efficient travel experience for our passengers. For instance, earlier this month, IATA announced a coordinated effort with the government of Panama and Copa to trial the new IATA travel path. a mobile app to help passengers securely manage their travels in compliance with the COVID testing and or vaccine requirements of their destinations. Panama is the first country to agree to participate in the trial and COPPA the first airline to do so in the Americas. We believe initiatives like this one are essential to the recovery of international air travel. Turning now to our fourth quarter results, As per the plan communicated in our last earnings call, after virtually no operations in more than five months, we successfully restarted the hub in the fourth quarter, increasing capacity to 15% in October, 28% in November, and 39% in December, as compared to the same month in 2019, and ended the year having restarted service to 51 destinations. A combination of pent-up demand and holiday season VFR travel resulted in a healthy 75% load factor for the quarter. We were encouraged by the demand patterns we saw and were hopeful for these trends to continue into the first quarter of 2021. As you've heard from other industry reports, this is not the case. COVID cases started spiking throughout the world during December. and new, more aggressive COVID variants have led to additional international travel restrictions and a deteriorating demand environment. As a matter of fact, yesterday we released our January 2021 traffic figures, reporting load factors of 63% compared to the 75% reported for December 2020. Jose will provide our current outlook for the first quarter, which includes a revised capacity plan, our latest revenue assumptions, and an update in the cash consumption figures. Finally, I'd like to reiterate that we have a proven and very strong business model, which is based on operating the best and most convenient network for intra-Latin America travel from our hub of the Americas, leveraging Panama's advantageous geographic position with the region's lowest unit cost for a full-service carrier, best on-time performance, and strongest balance sheet. Going forward, the company expects that its help of the Americas will be an even more valuable source of strategic advantage. It's likely that fewer intra-Latin America markets will be able to sustain direct point-to-point service So we believe the help of the Americas will be the best position to serve this market. Now I'll turn it over to Jose, who will go over our financial results in more detail.