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 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 1-1 on your telephone. As a reminder, this call is being webcast and recorded on May 11, 2023. Now I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may now begin.

Thank you, Felicia, and welcome everyone to our first quarter earnings call. Joining us today are Pedro Helbron, CEO of Copa 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, coppaair.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 first quarter earnings call. Before we begin, I would like to extend my sincere gratitude to all our coworkers for their commitment to the company. Their continuous efforts and dedication have kept COPPA at the forefront of Latin American aviation. To them, as always, my highest regards and admiration. Today, we're pleased to report strong results for the first quarter and a solid outlook for the year. Despite the continued high fuel prices in the quarter, we were able to deliver an operating margin of 22.3%. These results were mainly driven by a robust demand environment in the region, which led to an improved load factor as well as an increase in passenger yields during the quarter. Among the main highlights for the quarter, passenger traffic grew 7.1% compared to the same period in 2019, outpacing our capacity growth of 2.8%. This resulted in an 86.8% load factor, a 3.5 percentage point increase compared to Q1 2019. Passenger yields came in at 14.6 cents or 20% higher than the first quarter of 2019, while cargo revenue was 52% higher, resulting in unit revenues or RASM of 13.1 cents a 25.5% increase compared to the first quarter of 2019. On the cost side, our unit cost excluding fuel came in at 6.2 cents or 2.1% higher compared to Q1 2019. As a result, our operating margin came in at 22.3%, 5.5 percentage points higher than in the first quarter of 2019. On the operational front, Cooper Airlines delivered an on-time performance of 92.2% and a completion factor of 99.9%, once again among the very best in the world. I would like to take this opportunity to express my recognition for more than 7,000 co-workers who day in and day out deliver a world-class travel experience to our customers. Their contributions are key to our success. Turning now to our fleet, we received two 737 MAX 9 aircraft during the quarter and we expect to receive 10 more MAX 9s during the remainder of the year to end 2023 with a total fleet of 109 aircraft. With regards to our network, as we mentioned in our last call, we plan to start new service to the cities of Manta in Ecuador and Baltimore and Austin in the U.S. starting this summer. With these additions, we will serve 80 destinations in 32 countries in North, Central, South America, and the Caribbean, as we continue strengthening and solidifying our position as the most complete and convenient hub in Latin America. Finally, with regards to Wingo, Wingo continues its regional expansion with the announcement of three new domestic Colombia routes from Bogota to Barranquilla, Pereira and Bucaramanga, and one international seasonal service from Cali in Colombia to Aruba. With these additions, Wingo will operate 34 routes with service to 21 cities in 10 countries. Now, turning to our expectations for 2023. As you saw in our earnings release, we increased our operating margin guidance to a range of 22 to 24%, mainly driven by the current solid demand environment in the region, as well as a lower fuel curve for the remainder of the year. As always, Jose will provide more detail regarding the full year's outlook. To summarize, we're off to a very good start in 2023 and expect to keep seeing a healthy demand environment throughout the year, we continue growing and strengthening our network, the most complete and convenient hub for intra-Latin America travel. And as always, our team continues to deliver world-leading operational results while maintaining our cost low. Lastly, we're as confident as ever in our business model. We continue to deliver solid margins and competitive unit costs while offering a great product for our passengers. making us the best positioned airline in our region to consistently deliver industry-leading results. Now I'll turn it over to José who will go over our financial results in more detail.