Copa Holdings, S.A.

Ladies and gentlemen, thank you for standing by. Welcome to COPA Holdings' third quarter earnings call. During the presentation, all participants will be on a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, you will need to press star then 1 on your touchtone phone. As a reminder, this call is being webcast and recorded on 18th of November 2021. Now I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Thank you, Lori. And welcome everyone to our third 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 our third quarter highlights, followed by Jose, who will discuss our financial results. Immediately after, we will open the call for questions from analysts. COPPA 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, copa.com. 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 in our annual report filed with the SEC. Now, I'd like to turn the call over to our CEO, Mr. Pedro Hedron.

Thank you, Daniel. Good morning to all, and thanks for participating in our third quarter earnings call. Before we begin, I'd like to thank all our co-workers for their commitment to the company and recognize their continuous efforts and dedication to keep COPPA at the forefront of Latin American aviation. To them, as always, my utmost respect and admiration. As you may have seen in our earnings release published yesterday, we're glad to report improved financial results for the third quarter. The increase in vaccination rates and reduced travel restrictions in Latin America are positively affecting air travel demand in the region, enabling us to grow capacity quarter over quarter while improving load factors. Since restarting operations in Q3 2020, we have increased flights from almost zero to nearly 70% of our pre-pandemic capacity in Q3 2021. Going forward, we expect further relaxation of travel restrictions and a continued demand recovery, which should allow us to deploy additional capacity in the fourth quarter and 2022. But of course, COVID has not gone away and We've seen in other parts of the world, additional waste of the virus could affect demand in the future. So we will remain focused and flexible in terms of capacity, adjusting our plans as needed. Now, I'll highlight some of our third quarter results. In terms of capacity, we reached almost 70% of third quarter 2019 ASMs, compared to 48% of 2019 capacity in the second quarter. Load factor came in at 79%, an improvement of two percentage points compared to the second quarter on an almost 50% quarter-over-quarter ASM growth. Revenues increased by 46% over the previous quarter to $445 million. Our ex-fuel CASM decreased from 7.6 cents in Q2 to 6.2 cents in Q3 reaching 2019 unit cost levels at 70% of 2019 capacity. We reported an operating profit of $59 million and an operating margin of 13.3% in the quarter. Excluding a $10.4 million passenger revenue adjustment, the company would have reported an operating profit of $48.6 million and an operating margin of 11.2%. We had a cash build-up of $54 million and ended the quarter with a cash balance of $1.3 billion and a total liquidity of over $1.6 billion. On the operational front, The company delivered an on-time performance of 89.4% and a completion factor of 99.8%, once again among the best in the industry. These results are a true testament to our employees' continuous commitment to delivering a world-class product to our passengers. With regards to our network, we're excited to start our first new destination since the beginning of the pandemic, Beginning in December, we will offer service to three new cities, Armenia and Cucuta in Colombia, and Atlanta in the US. By the end of the year, COPPA will provide service to 72 destinations in North, Central, South America, and the Caribbean. And we expect to recover service to the rest of our pre-pandemic network during 2022, strengthening our position as the most complete and convenient hub in Latin America. During the quarter, we agreed with Boeing to accelerate the delivery of 12 737 MAX 9s that were originally intended to be delivered starting in 2025. We will receive two of these aircraft in 2022 for a total of seven MAX 9 deliveries next year, and the other 10 aircraft will be added to COPPA's deliveries from 2023 through 2025. As to Wingo, During the fourth quarter, it expects to receive two aircraft from the COPPA fleet to end the year with a total of eight 737-800. In closing, I'd like to reaffirm that we have a proven and 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 a top of the Americas will be an even more valuable source of strategic advantage. Now, I'll turn it over to Jose, who will go over our financial results in more detail.