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

Good morning, everyone. Thank you for standing by and welcome to Volari's third quarter 2020 financial results conference call. All lines are in a listen-only mode. Following the company's prepared commentary, we will open the call for your questions and answers. Instructions on how to ask a question will be provided at that time. Please note that this event has been recorded. At this point, I would now like to turn the call over to Ms. Marielena Rodriguez, Volaris Corporate Finance and Investor Relations Director. Please go ahead, Ms. Rodriguez.

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 Senior Vice President and Chief Financial Officer, Jaime Pous. They will be discussing the company's third quarter 2020 results. 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 on an individual basis. 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 filing with the U.S. Securities and Exchange Commission and the Comisión Nacional Bancaria de Valores. Furthermore, Volaris undertakes no obligation to publicly update or revise any forward-looking statements. It's now my pleasure to turn the call over to Volaris' President and CEO, Mr. Enrique Beltranena.

Thank you, Marielena. Thank you very much for joining us today. I want to start by thanking our family of ambassadors and our board of directors who have established a track record of managing the challenges presented by COVID-19 and have given Bolares the fastest airline recovery in North America. Let me detail our key achievements. First, cost per available seat mile, ex-fuel, improved by 50% versus previous quarter Thank you very much. Volaris is among the three lowest unit cost operators worldwide and we are fully committed to continue our cost reduction path with the goal of reducing our costs even further than our pandemic levels notwithstanding the current environment and as a result gaining further competitive advantage. Secondly, Volaris has one of the fastest capacity recoveries in the world During September capacity was 84% versus the previous year with a book load factor of 74% and for the full quarter ASM recovery was at 75% of the previous year which is the highest in the Mexican market. Volaris is regaining capacity much faster than its competitors because over 70% of Volaris' point-to-point network is deployed on VFR and leisure routes, which are the fastest recovering segments in our markets. Additionally, Volaris continues to expand its passenger base by aggressively converting first-time flyers through bus switching campaigns. Thirdly, Volaris continues to take strict measures to preserve liquidity. Closing the third quarter with $365 million in cash and cash equivalents. Third quarter cash burn was almost 50% lower than expected and that was mainly driven by higher sales and further negotiations with the source and suppliers. The company continues aggressively renegotiating aircraft deliveries and returns. Financial requirements of pre-delivery payments, financial credit lines, as well as general suppliers and resource terms and conditions, fuel suppliers, etc. This remains a priority for us before executing any additional capital raise. Volaris will continue to focus on returning to profitability and will retain the flexibility to pursue additional financing if required. The fourth aim is Volaris flight crews are all back at work, flying at an average of 76 hours per month. I just want to remind you that the limit from ICAO is 90 hours per month. The company has one of the most efficient and productive labor forces in the world, operating with 57 full-time equivalents per aircraft that are paid using a variable per hour compensation scheme. This flexibility was the main factor that allowed us to avoid furlough despite no governmental aid being made available for the Mexican carriers. Volaris has managed to bring back all crews to operations. Number five, safety and quality of operations are fundamental to Volaris. Volaris was recognized with the Safe Travel Stamp by the World Travel and Tourism Council, as well as the Certificates of Biosecurity Best Practices by the Governments of Yucatan and Mexico City, for its outstanding achievements during the COVID-19 pandemic, being the only airline in Mexico that has received such recognition. Since April 2020, the company has carried more than 4.5 million passengers safely under our strict biosecurity protocol. We are focusing on ensuring the well-being of our staff and passengers. Our COVID-on-board infection rates for flight attendants and pilots is zero I want to repeat it. Flight attendants and pilots' infection rates on board is zero, which confirms Volaris' safety on board the aircraft. Volaris' crews are the finest example of following best practices. Volaris keeps supporting national volunteer entities. We continue transporting health equipment and carrying medical personnel as part of our Avión Ayuda program. Now, let me pass it over to our Erlen Executive Vice President, Holger Blankenstein, to comment on revenues and on the commercial strategy. Go ahead, Holger, please. Thank you, Enrique.