Controladora Vuela Compania de Aviacion, S.A.B. de C.V.

Good morning, everyone. Thank you for standing by, and welcome to Valeris' second quarter 2019 Financial Results Conference call. All lines are in a listen-only mode. Following the company's prepared remarks, we will open the call for question and answer. Instructions on how to ask a question will be provided at that time. Please note that this event is being recorded. At this point, I would now like to turn the call over to Ms. Maria Elena Rodriguez, Valeris' Corporate Finance and Investor Relations Director. Please go ahead.

Good morning, everyone, and thank you for joining the call. With us today is our President and CEO, Enrique Beltranena, our Airline Executive Vice President, Holger Blankenstein, and our Vice President and CFO, Sonia Jerez. They will be discussing the company's second quarter results announced yesterday. Afterwards, we will move on to your questions. Please note that this call is for investors and analysts only. Any questions from the media will be taken separately. Before we begin, please let me remind everyone that this call may include forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are subject to several factors that could cause the company's actual results to differ materially from expectations for reasons described in the company's filings with the U.S. Securities and Exchange Commission. Furthermore, VALARES undertakes no obligation to publicly update or revise any forward-looking statement. It's now my pleasure to turn the call over to VALARES' President and CEO, Mr. Enrique Beltranena.

Thank you, María Elena, and good morning to everyone, and thank you for joining us today. Let me begin with some key facts and data of the second quarter. Polaris is one of the three lowest unit cost publicly traded airlines in the world, with a unit cost ex-fueled during the quarter of 389 U.S. dollar cents. CASM ex-fuel decreased 3.3% year over year. Total unit revenue in the quarter improved 10% year over year. And let me explain some of the elements. Total ancillary revenues increased 39% year over year. Volaris ancillary revenues per passenger increased 10%, and now Volaris is among the top four airlines in the world. Second, Volaris is the largest passenger operator in the Mexican market, with 40% more passengers carriers than our closest competitor during the quarter. In this market, Volaris operates with a low factor of 90%. Third, Volaris is the global carrier with most direct routes to the U.S. In the last 10 years, we have carried almost 20 million passengers in the transborder market. In addition to that, with the new frontier culture, we now connect almost 100 U.S. destinations with our Mexican market. Olaris completed important strategic financial transactions during the second quarter. The first one was that we secured a landmark sale and leaseback transaction for 22 aircraft that will be delivered between 2020 to year 2022. The terms and lease rates are highly attractive and are historically unprecedented for the company. The second one is that Volaris successfully issued the 1.5 billion peso-denominated long-term bond in the Mexican public market at a very competitive term, notwithstanding the difficult capital market conditions during the process of placing the instrument. To facilitate development of our Central American Initiative, Volaris has established a subsidiary in El Salvador and obtain its Airline Operator Certificate from the Civil Aviation Authority. We are targeting operations to start during August 2019. These achievements led to the following second quarter 2019 results. Total operating revenues increased by 34% with a year-over-year TIRAS improvement of 10%. EBITDA margin improved by 10.4 percentage points versus last year Closing at 27.7%, an operating cash flow generation of 1.5 billion pesos, a year-over-year improvement of 618 million pesos. Four, on-time performance is on track and scheduled completion is at 99.5%, return on invested capital pre-tax of 16% at the end of the quarter. Nevertheless, I would like to additionally highlight the earnings per HDS for the first half of the year at 33 U.S. dollar cents. Now, I would like to turn the call over to our Airline Executive Vice President, Holger Blankenstein, to talk about the detail of revenues, market dynamics, and give an operational update. Please, Holger.