Copa Holdings, S.A.

Ladies and gentlemen, thank you for standing by to the COPPA Holdings fourth 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 have to press star and then one on your touchtone phone. As a reminder, this call is broadcast and recorded on February 10th, 2022. Now we'll turn the conference over to Daniel of Investor Relations. Sir, you may begin.

Thank you, Chris. And welcome, everyone, to our fourth quarter and full year 2021 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 fourth quarter and full year highlights. followed by Jose, who will discuss our financial results. Immediately after, we will open the call for questions from panelists. 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 file with the SEC. Now I'd like to turn the call over to our CEO, Mr. Pedro Gelro.

Thank you, Daniel. Good morning to all and thanks for participating in our first quarter earnings call. Before we begin, I'd like to thank all our coworkers 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. Today, we're glad to report strong financial results for the fourth quarter of 2021. During the quarter, international air travel demand in Latin America continued to recover, which allowed us to end the fourth quarter with 83% of Q4 2019 ASMs. Compared to the third quarter of 2021, unit revenues improved 11.2%, with solid gains in both load factor and yield, while increasing capacity 16%. Adjusted unit cost, excluding fuel, came in at 6.1 cents for the quarter, a 2.4% reduction when compared to Q3 of 2021. For the quarter, we reported an adjusted operating profit of $815 million and an adjusted operating margin of 20.1%, an improvement of almost 9 percentage points quarter over quarter, and our best results since the beginning of the pandemic. Jose will provide further details on our fourth quarter financials. Now turning to the main highlights for full year 2021. Excluding special items, we would have reported a net profit of $2.7 million and an operating profit of $85.6 million with an operating margin of 5.8%. Overall, a strong result when compared to what we expected at the beginning of the year. We finalized the sale and delivery of our Embraer 190s and now operate an all-Boeing 737 fleet. We restarted 737 MAX 9 operations and received seven additional aircraft during the year to end 2021 with a total of 14 MAX 9s. The additional aircraft, also equipped with our Dream's business class cabin, would allow us to provide world-class comfort to our business class passengers in more markets. In December, we launched our first new destination since the beginning of the pandemic by starting service to Armenia and Cucuta in Colombia and Atlanta in the U.S. With these additions, we ended the year providing service to 68 destinations in North, Central, South America, and the Caribbean, strengthening our position as the most complete and convenient hub in Latin America. And Copa Airlines was recently recognized by Sirium for the eighth consecutive year as the most on-time airline in Latin America during 2021. In fact, Copa's on-time performance was again the highest of any airline in all of the Americas. I'd like to take this opportunity to recognize our more than 6,000 Copa and Wingo employees for everything they do day in and day out to deliver a world-class travel experience to our passengers. Turning now to Wingo, it continued its regional expansion during the year, adding four new routes, from Panama City to San Jose, Costa Rica, from Bogota to Lima, from Cali to Cancun, and from Medellín to Punta Cana. To summarize, in Q4 2021, we delivered our strongest quarterly financial results since the beginning of the pandemic. We were able to reach 83% of our pre-pandemic capacity in the first quarter. Our team continued to deliver world-leading operational results with COPPA being recognized as the most on-time airline in the Americas. We delivered lower unit costs compared to pre-pandemic levels on less capacity. And we're strategically focused on restarting destinations and adding new markets, strengthening our position as the most complete and convenient hub in Latin America. Overall, The recovery in demand and rebuilding of our network in 2021 was quite encouraging. Now, as I'm sure you're aware, 2022 is off to a much more challenging start. The Omicron variant is impacting both international travel demand in the region and the number of crews we have available to fly. Due to a reduced number of available pilots and flight attendants, We canceled approximately 1,000 flights during the months of January and February, which is 4% of our Q1 schedule. Fortunately, we do not expect any crew availability cancellations for March. We're seeing, however, an industry slowdown in bookings for Q1 travel that will cause our load factors and unit revenues to come in lower than the fourth quarter of 2021. Jose will share our Q1 guidance during his presentation. I'd like to reiterate 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 low unit cost, best on time performance, and strongest balance sheet. And we expect that going forward, our hope 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.