Copa Holdings, S.A.

Ladies and gentlemen, thank you for standing by. Welcome to COPA Holdings' first quarter earnings call. During the presentation, all participants will be in listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, you will have the press star then 1 on your touchtone phone. As a reminder, this call is being webcast and recorded on May 12, 2022. Now, I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Thank you, Mel. And welcome, everyone, to our first quarter earnings call. Joining us today are Pedro Hedron, CEO of Coca Holdings, and Jose Montero, our CFO. First, Pedro will start by going over our first 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, coppa.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 Hedron.

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 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. While we faced challenges in Q1, such as the impact in January and February of the Omicron variant on our operations and demand for air travel, as well as a significant increase in jet fuel prices, we were still able to deliver a profitable quarter. In terms of the main highlights for the quarter, our capacity reached 88% of first quarter 2019 ASMs. Ex-fuel CASM decreased from 6.1 cents in Q1 2019 to 6 cents. Unit revenues or RASM came in at 10.2 cents, a decrease of 3% when compared to Q1 2019, and approximately 10% lower than Q4 2021. mostly as a result of the Omicron impact on load factors and yields. Our Q1 operating margin came in at 7.8%, slightly above the range we guided to. In terms of fleet, during the quarter we took delivery of two 737 MAX 9s. With the addition of this aircraft and the remaining deliveries for the year, more than 20% of our fleet will be composed of MAX 9s. aircraft by the end of the year, resulting in valuable fuel efficiencies to our operation. I'm also pleased to mention that Copa Airlines delivered an on-time performance of 91.3% and a completion factor of 99.3%, again, among the best in the industry. These results are a true testament to our employees' dedication and commitment to delivering a world-class travel experience for our passengers. In terms of our network, we restarted service to four cities during the quarter and announced two new cities to start in June, Santa Marta in Colombia and Barcelona in Venezuela, ending the quarter with service to 72 cities in 30 countries, compared to 80 cities in 33 countries before the pandemic. As we continue strengthening and solidifying our position as the most complete and convenient hub in Latin America. Turning now to Wingo, Wingo received its eighth 737-800 and continued its regional expansion by launching a new route from Medellín, Colombia to Santo Domingo in the Dominican Republic. So as you can see from our results, we have been executing both operationally and financially despite continued headwinds. Although the demand environment in the region is recovering at a steady pace, fuel prices have increased dramatically, which combined with what's historically a low season quarter lead us to expect lower second quarter margins. Jose will share our Q2 guidance during his presentation. I want 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 Hub 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. Thank you, Pedro.