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

Good morning, everyone, and thank you for joining Volaris' third quarter 2025 financial results conference call. All lines are currently in listen-only mode. After the company's remarks, we'll open the line for questions. Please note that today's event is being recorded and webcast live on Volaris' website. Those joining via webcast may submit questions directly through the platform by clicking the question mark icon below the video area and typing your inquiry. Management will address questions during the call or the investor relations team will follow up afterwards. At this time, I would like to turn the call over to Lillian Juarez, investor relations manager. Please go ahead, Lillian.

Good morning and welcome to our third quarter 2025 earnings call. Joining us today are our president and CEO, Enrique Beltranena, our airline executive ex-president Holger Blankenstein, and our CFO Jaime Boas. They will be discussing the company's results followed by a Q&A session. This call is for investors and analysts only. Please note that this call may include forward-looking statements on their applicable securities laws. These are subject to several factors that could cause the company's results to differ materially, as described in our filing with the U.S. 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 them. All figures are in US dollars compared to the third quarter of 2024, unless otherwise noted. And with that, I'll turn the call over to Enrique.

Good morning, everyone. This quarter once again demonstrated that Volaris' agility and discipline continue to set us apart in a complex environment driving tangible results. We acted nimbly and with focus, fine-tuning our network and capturing sequential improvement in demand across our core markets. Our results this quarter confirm that our commercial and operational strategies are delivering according to our flight plan. In our last earnings call, we noted that demand momentum was starting to build. And this quarter validated that trend. The recovery we anticipated for the second half is unfolding day by day as we projected. We observed stable domestic demand in a rational supply environment. Additionally, travel sentiment improved in the cross-border market, notwithstanding the geopolitical disruptions observed throughout the year. We executed where it mattered most, taking deliberate actions to strengthen profitability. The third quarter's performance in terms of unit revenue was fully in line with our expectations. The year-over-year variation in TRASM has narrowed each month, confirming that demand recovery continues to strengthen across our network. The sequential improvement is the proof statement that our strategy is delivering consistent momentum and we believe that improved booking curves for the fourth quarter should position Volaris for a stronger 2026. In the domestic market, supply rationalization across all players continues to create a healthier balance between capacity and demand. Our low factor in the Mexican market reached 89.8%, consistent with last year's levels and reflecting a stable demand under a more rational supply environment, which supports healthier yields going forward. In the international market, we're seeing a steady recovery in cross-border demand with traffic improving month over month and holiday bookings already trending ahead of last year. Our 77% low factor reflects our tactical focus on optimizing yields to maximize TRAS. We remain focused on what is within our control, maintaining cost efficiency, adapting quickly, and executing with discipline. As a result, T-RASM, CASM, XFUEL, and EBITDA margin all came slightly better than our guidance, reaffirming our ability to deliver consistent execution. Building confidence from this solid performance, we're maintaining our full year 2025 capacity growth outlook of approximately 7%. With prudent growth on parallel cost control and improving demand trends towards the year end, we're reiterating an EBITDA margin in the range of 32 to 33% for 2025. Looking ahead to 2026, We're embedding flexibility into our fleet plan and targeting ASM growth in the range of six to 8% while retaining the ability to adjust a few percentage points in response to demand trends or OEM developments. This level of growth would bring us back to year end 2023 capacity levels underscore that our growth remains prudent and aligned with market conditions. Our capacity decisions remain firmly anchored on customer demand and sustained profitability. I want to make it very clear to our investors, Volaris will continue to control growth with discipline fully aligned with market demand. taking all necessary actions to efficiently reintegrate aircraft returning from engine inspections to ensure we meet this commitment. Having said that, as demand continues to recover, we are also seeing healthy supply dynamics, particularly in Mexico's domestic market. Volaris continues advancing from a position of strength with leadership in core domestic markets and a world-leading cost structure that will further improve as we reduce fleet ownership costs and gradually narrow the gap between our productive and non-productive fleet. Sustaining differentiation requires constant evolution. We're not standing still. We're constantly adapting our ultra-low-cost carrier model to Mexico's unique dynamics, lowering barriers to travel enhancing service and maintaining our unwavering commitments to low costs and low fares. Leveraging Volaris' scale as Mexico's largest airline, we've built meaningful customer loyalty and driven strong repeat flying across our network. A strong example of this evolution is Guadalajara. A decade ago, this market handled the modest passenger base with limited international connectivity. Today, thanks to Volaris' expansion and market development, Volaris in Guadalajara boosts nearly 100 daily departures, connecting travelers to 26 domestic and 22 international destinations. Over our 19th year of history, Volaris has proudly transported more than 90 million passengers to and from this market. Similar to what we've seen in Guadalajara, this trend is emerging across other markets that are rapidly evolving and opening new opportunities for growth, a typical emerging market phenomenon that underscores our role as a catalyst for national mobility and economic development. As our network matures, so has our customer base. We began as an airline built predominantly around VFR traffic, and we have since evolved into a more diversified customer mix. Today, roughly 40% of our passengers remain VFR, while the remainder represent a broader range of travel motivations from business to leisure to other niche segments. This evolution positions us to further strengthen our network through better frequencies, attractive schedules, and varied destinations, reinforcing Volaris as the airline of choice for both our VFR base and all passenger segments traveling from our core markets. Building on this momentum, the next phase of our model focuses on capitalizing on repeat travel and driving incremental tierism growth across all revenue streams. As Holger will discuss, we continue launching new ancillary products and advancing network and commercial initiatives to better serve a broader customer base all while maintaining the low cost DNA that defines Volaris. This evolution built on our core bus switching strategy which remains foundational to our growth. As a result, we remain committed to serving this segment by consistently offering low fares. Leveraging our ultra low cost carrier model, Volaris is strategically positioned to continue improving tierism by expanding our product suite and optimizing distribution channels. We're enhancing the customer experience across multiple forms, refining our network strategy, streamlining boarding processes, and offering enhanced seat selection options that continue to strengthen revenue diversification while preserving the cost efficiency that underpins our long-term profitability. Sequential TRASM improvement and a resilient cost structure highlight our disciplined execution. We're closing 2025 and entering into 2026 stronger, more efficient and better positioned to continue delivering value to our customers, capturing opportunities and driving sustained profitability. Polaris has proven its resilience time and again and will continue to do so. I'll now turn the call over to Holger to continue to discuss our third quarter commercial and operational performance as well as the evolution of our broader product offering in more detail. Thank you very much.