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. At that time, if you have a question, you will have to press star, then 1-1 on your touchtone phone. As a reminder, this call is being webcast and recorded on August 8, 2024. Now I will turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Thank you, Gigi. And welcome, everyone, to our second 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 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 file with the SEC. Now I'd like to turn the call over to our CEO, Mr. Pedro Hedro.

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 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. Once again, we're pleased to report industry-leading financial results for the quarter. As stated in our earnings released yesterday, our 19.5% Q2 operating margin represents the second best Q2 results in the company's history. Among the main highlights for the quarter, passenger traffic grew 10.6% compared to the same period in 2023, while capacity increased by 9.7%, resulting in a 0.7 percentage point increase in load factor to 86.8%. Unit cost excluding fuel, or CASMX, came in at 5.6 cents, a 5.8% decrease compared to Q2 2023, mainly driven by lower aircraft maintenance costs and sales and distribution costs. Passenger yield came in at 12.1 cents, 8.7% lower year over year. As a result, unit revenues, or RASM came in at 11 cents or 7.7% lower compared to Q223. On the operational front, Coop Airlines delivered an on-time performance of 87.6% and a completion factor of 99.7% for the quarter. Once again, positioning ourselves amongst the best in the industry. Furthermore, Copa was recently recognized by Skytrax for the ninth consecutive year as the best airline in Central America and the Caribbean. I would like to take this opportunity to recognize our more than 8,000 coworkers who day in and day out deliver a world-class travel experience for our customers. Their contributions are key to our success. Turning now to our network, in the month of June, We started three new destinations, Rally Durham in the US, Florianopolis in Brazil, and Tulum in Mexico. With these additions, we're now serving 85 destinations in 32 countries, solidifying our leadership position as the hub with the most international destinations in Latin America. With regards to our expectations for the rest of the year, As we notified the market last week, on July 29, the Venezuelan government temporarily suspended commercial flights between Venezuela and several countries in the region, including Panama, forcing us to cancel our flights effective July 31. Although the official notice mandates the suspension of flights until August 31, At this time, we cannot determine if this suspension will be extended. With regards to cost, we continue to focus on our cost efficiency initiatives and expect to deliver lower year-over-year unit costs for 2024, leading us once again to deliver industry-leading margins for the year. Jose will provide more details regarding our outlook. To summarize, We delivered industry leading financial results for the second quarter. We continue to deliver on our cost execution strategy. We keep expanding our network, now serving 85 destinations across 32 countries, reinforcing Panama's position as the leading hub for international travel in Latin America. And we expect to deliver industry leading operating margins for the year. As always, Our team continues to deliver world-leading operational results while providing a world-class service to our passengers. Finally, we firmly believe that our business model remains as robust and relevant as ever, and that our hub of the Americas in Panama is the best connecting hub in Latin America, making us the best positioned airline in our region to consistently deliver industry-leading results. Now I'll turn over the call to Jose, who will go over financial results in more detail.