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

Good morning, everyone. Thank you for standing by. Welcome to Volaris' second quarter 2024 financial results conference call. All lines are in listen-only mode. Following the company's presentation, we will open the call up for your questions. Please note that we are recording this event. This event is also being broadcast live via webcast and can be accessed through the Volaris website. At this point, I would now like to turn the call over to Ricardo Martinez. Investor Relations Director, please go ahead, Ricardo.

Good morning, and thank you for joining the call. With us is our President and CEO, Enrique Beltranena, our Airline Executive Vice President, Holger Blankestein, and our Chief Financial Officer, Jaime Post. They will be discussing the company's second quarter 2024 results. Afterward, we will move on to your questions. Please note that this call is for investors and analysts only. Before we begin, please remember 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 results to differ materially from expectation as described in the company's filings with the United States SEC and Mexico's CNBB. These statements speak only as of the day they are made and Volaris undertakes no obligation to update or modify any forward-looking statement. As in our earnings per release, our numbers are in US dollars compared to the second quarter of 2023, unless otherwise noted. And with that, I will turn the call over to Enrique.

Good morning, everyone, and thank you for joining us. Volaris continues to perform positively, recording our highest absolute EBITDA for the second quarter. This achievement is notable given that we have been managing a capacity reduction driven by accelerated engine inspections for nearly one year which has grounded approximately one-fourth of our fleet Our unwavering focus on execution has enabled us to deliver strong results during this period of disruption Our mitigation plan to address the challenges of the groundings is on track and yielding positive results, as we have largely achieved our guidance for each period since the inspection bulletins began in last year's third quarter. Olaris execution has been focused on delivering excellent operations to enhance our customer service. aggressively managing the schedule as the fleet plan changes to minimize disruptions, and continuing our emphasis on obsessive cost control. Regarding the GTFs after meeting with Pratt & Whitney recently, I can provide three important updates that make me cautiously optimistic about the situation. First, we feel confident to improve our full year ASM guidance to a year-over-year reduction of approximately minus 14% compared to our previous guidance of minus 16 to 18%. Volaris and Pratt & Whitney have successfully coordinated slots, spare parts, and materials with high certainty for the next 180 days. As a result, better turnaround times are forecasted for our engines during this period. Nonetheless, Pratt & Whitney is currently at its highest volume and most critical point of engine inspections. Powder metal has been a major focus for Pratt & Whitney and they are starting to recover by ramping up material availability and MRO capacity. Third, I was seriously impressed by Pratt & Whitney and International Aero Engines $850 million investment in the new shop and part production facility in Asheville, North Carolina. This facility has started operations that will continue to increase production over the next 18 months. I acknowledge the efforts Pratt & Whitney and International Air Engines are making and they're supporting overcoming this situation. While I'm more positive, it is important to recognize that the engine's time on wing remains a real challenge. If you take one thing away from today's call moving forward, it is this. As grounded aircraft return to our productive fleet, We are committed to prudent and rational growth, prioritizing profitability. Importantly, we expect recent unit revenue levels to remain resilient as Volaris' capacity gradually returns. By shifting ASMs into the cross-border market, our TRASM strength reflects a well-balanced market mix aimed at maximizing profitability. Polaris' position as an ultra-low-cost carrier in Mexico differs in many ways from ultra-low-cost carriers in the US. We are the largest airline in Mexico by passengers, which gives us a strong relative domestic market share and cost leadership over legacy carriers. Additionally, Mexico has a unique capacity to convert bus passengers, which has driven growth in the country's emerging air travel market in the last 15 years. Our success is not only due to our profound ultra-low-cost pricing and ancillary strategies, but also the quality of our service, our ability to encourage repeat travel, and the loyalty of our visiting friends and relative passengers. Finally, we have maintained a significant advantage over the U.S. industry through dramatic cost control, avoiding expensive short-term wet leases and sustaining our efficient cost structure with approximately 70% of our costs being buyer. With that, I will now turn the call over to Holger to discuss commercial and operating performance for the quarter.