Copa Holdings, S.A.

Ladies and gentlemen, thank you for standing by. Welcome to COPLUS Holdings first quarter earnings call. During the presentation, all participants will be on listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have questions, you will have to press star 1-1 on your touchtone phone. As a reminder, this call is being webcast and recorded on May 8, 2025. Now, I'll turn the conference call over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Thank you, Marvin. And welcome, everyone, to our first quarter earnings call. Joining me today are Pedro Hedron, CEO of Copa Holdings, and Peter Dunkerslott, our CFO. First, Pedro will start by going over our first quarter highlights, followed by Peter, 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 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 Gervon.

Thank you, Daniel. Good morning to all and thanks for participating in our first quarter earnings call. First, I would like to extend my sincere gratitude to all our co-workers for their commitment to the company. Their dedication and hard work have been instrumental in keeping COPPA at the forefront of Latin American aviation. To them, as always, my highest regards and admiration. As you could see in our earnings release, we're pleased to report a strong start for the year, delivering solid first quarter financial results. Our 23.8% operating margin in Q1 is a testament to the resilience of the company's business model as we navigate a lower year-over-year passenger yield environment. Our ongoing focus on maintaining low ex-fuel unit costs, leading on time performance, and a passenger-friendly product, as well as continuing to expand our hub of the Americas in Panama, remains key to consistently achieving industry-leading margins and financial results. Among the main highlights for the quarter, capacity increased by 9.5% year-over-year. Adjusted for the MAX 9 grounding in Q1 24, capacity would have increased by 4.6% for the quarter. Passenger traffic grew by 10.1% compared to Q1 24. As a result, load factor for the quarter increased by 0.4 percentage points to 86.4%. Unit revenues, or RASM, came in at 11.5 cents, an 8.1% decrease compared to Q1 24, mainly driven by a 9.1% decrease in passenger yields. Continuing the trend of the second half of 24, passenger yields were affected by additional industry capacity in the region, and a weaker currency environment in certain Latin American countries. Unit cost excluding fuel, or CASAM-X, came in at 5.8 cents in the quarter, representing a 4.3% decrease compared to Q1-24. This improvement was primarily driven by lower sales and distribution expenses. a reduction in passenger servicing costs related to the MAX 9 grounding in the first quarter of 24, and continued discipline in managing headcount and overhead to fully benefit from the airline's growth. As mentioned before, operating margin for the quarter came in at 23.8%. On the operational front, Coop Airlines delivered an on-time performance of 90.8%, and a completion factor of 99.9%. Once again, positioning ourselves among the best in the industry. With regards to our network, we recently announced service to three new cities, San Diego, California, starting in June, and Salta and Tucuman in Argentina, starting in September. As we continue strengthening our position as the most complete and convenient connecting hub for travel in the Americas. Turning over to Wingo during the quarter, Wingo added one new domestic Colombia route between the cities of Bucaramanga and Santa Marta. As mentioned in the previous call, Wingo will receive an additional $737,800 from COPPA during the second half of this year to end the year with a fee of $10,737,800. With regards to our expectations for the year, we're increasing our 2025 operating margin guidance to a range of 21% to 23%, mainly driven by a lower fuel cost outlook and steady passenger demand. While there are still many months before the end of the year, we feel confident that our robust business model, based on our hope of the Americas in Panama, low unit costs, diversified network and passenger friendly product makes us the best positioned airline in our region to consistently deliver industry leading results. Now I'll pass it over to Peter who will go over our financial results in more detail.