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 in 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 11 on your touchtone phone. As a reminder, this call, this webcast is being recorded on November 16th, 2023. Now I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Thank you, Abby. 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, 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 Gelron.

Thank you, Daniel. Good morning to all, and thanks for participating in our third 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. As you can see in our third quarter earnings release, once again COPPA reported strong financial results for the quarter. We were able to deliver industry-leading operating margins while continuing to grow our capacity by double digits year over year. The third quarter results were driven by a robust demand environment in the region and our focus on delivering low ex-fuel unit costs. Now I'll summarize the main highlights for Q3. Passenger traffic grew 13.3% compared to the same period in 2022, outpacing our capacity growth of 12.1%. As a result, load factor for the quarter increased 0.9 percentage points compared to Q3 2022 to 87.8%. Passenger yield came in at 13.4 cents, resulting in unit revenues or RASM of 12.2 cents. Unit cost decreased by 11.2% compared to Q3-22, mainly driven by a lower jet fuel price per gallon and lower sales and distribution costs. Excluding fuel, unit cost, or CASAM-X, came in at 5.8 cents, a 2% decrease compared to Q3-22. And our operating margin came in at 23.6%. 5.9 percentage points higher than in the third quarter of 2022. On the operational front, Coop Airlines delivered an on-time performance of 89.4% and a completion factor of 99.8%, once again among the best in the world. With regards to our network, in the last two quarters, we have started service to Austin and Baltimore in the U.S., and Mante in Ecuador, and more recently, in October, we started flying to Barquisimeto in Venezuela. With these additions, we now 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 connecting hub in Latin America. With regards to our fleet, During the third quarter, we took delivery of two 737 MAX 9s, ending the quarter with a total of 103 aircraft. Turning now to Wingo. In the third quarter, Wingo continued its network expansion with the start of three new routes, from Bogota to Caracas, Venezuela, a Panama domestic flight from Panama City to David, and one seasonal route from Cali to Aruba. Additionally, in October, Wingo started service from Medellín to Cartagena and announced one additional domestic route in December from Medellín to Santa Marta. With these additions, Wingo expects to end the year operating 37 routes with service to 23 cities in 11 countries. Now turning to our current expectations, we continue to see a robust demand environment in the region, and as you can see in our earnings release published yesterday, we expect strong financial results for full year 23. And preliminary, in 2024, we plan to continue growing our capacity in the low double-digit range and further reduce our unit cost. As always, Jose will provide more details regarding the 2023 and 2024 outlook. To summarize, we delivered strong third quarter results while growing capacity 12% year over year, We continue to see a robust demand environment in the region. We achieve low ex-fuel unit costs during the quarter and we continue to deliver on our cost execution strategies. We continue growing and strengthening our network, the most complete and convenient hub for travel in the Americas. And as always, our team continues to deliver world-leading operational results. We remain as confident as ever in our business model. We continue to deliver low unit costs, high margins, and a great product for our passengers, including the best connecting network in Latin America, 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 our financial results in more detail.