Copa Holdings, S.A.

Ladies and gentlemen, thank you for standing by. Welcome to COPA Holdings' second quarter earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. To ask a question during the session, you need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. As a reminder, this call is being webcast and recorded on August 10th, 2023. I will now turn the conference over to Daniel Tapia, Director of Investor Relations. Sir, you may go ahead.

Thank you, James, and welcome everyone to our second 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 second quarter highlights. followed by Jose, who will discuss our financial results. Immediately after, we will open 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, copaair.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 Hebron.

Thank you, Daniel. Good morning to all, and thanks for participating in our second quarter earnings call. Before we begin, I would like to extend my sincere gratitude to all our co-workers 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 solid results for the second quarter. Our unit revenues continue to benefit from a healthy demand environment in the region, while our unit costs came in lower year over year, mainly driven by a lower jet fuel price and our consistent focus on delivering low ex-fuel unit costs. Among the main highlights for the quarter, passenger traffic grew 15.4% compared to the same period in 2022, outpacing our capacity growth of 13.6%. This resulted in a load factor of 86.1%, a 1.3 percentage point increase versus Q2 22. Passenger yield came in at 13.3 cents or 2% higher than the second quarter of 2022, resulting in unit revenues, or RASM, of 12 cents, a 2.7% increase compared to the second quarter of 2022. Our unit cost decreased 17%, mostly as a result of a 35.9% year-over-year drop in our effective jet fuel prices. On an ex-fuel unit cost basis, we came in at 5.9 cents, almost 1% lower compared to Q2 2022. As a result, our operating margin came in at 24.1%, 18 percentage points higher than in the second quarter of 2022. On the operational front, Coop Airlines delivered an on-time performance of 91.6%, and a completion factor of 99.8%. Once again, the highest in the Americas and one of the best in the world. Additionally, in July, Copa Airlines was recognized by Skytrax for the eighth consecutive year as the best airline in Central America and the Caribbean. This award and our leading operational numbers are a testament to our employees' continuous focus on our customer satisfaction. With regards to our network, we recently announced the start of a new service to Barquisimeto, Venezuela in October of this year. With this addition, we will serve 81 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. Turning now to Wingo, in June, Wingo continued to optimize its network with the start of operations to three new domestic Colombia routes from Bogota to Barranquilla, Pereira, and Bucaramanga. Additionally, in July, it started service from Bogota to Caracas, Venezuela, and one seasonal route from Cali to Aruba. With these additions, Wingo is currently operating 35 routes with service to 23 cities in 11 countries. Now turning to our current expectations for the remainder of the year, we continue to see a healthy demand environment in the region going forward. And although we're seeing a recent increase in jet fuel prices, we continue to expect strong financial results in 2023. As always, Jose will provide more detail regarding the full year's outlook. To summarize, we delivered solid second quarter results and we continue to see a healthy demand environment in the region. We continue growing and strengthening our network, the most complete and convenient hub for intra-Latin America travel. Coop Airlines was recognized once again by Skytrak as the best airline in Central America and the Caribbean. And as always, our team continues to deliver world-leading operational results while maintaining our costs low. Lastly, we're as confident as ever in our business model. We continue to deliver solid margins and low unit costs while offering a great product to our passengers, making us the best positioned airline in our region to consistently deliver industry-leading results. Now, I'll turn it over to Jose, who will go over financial results in more detail.