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

Good morning, everyone. Thank you for joining Valera's fourth quarter and full year 2025 Financial Results Conference call. All lines are currently in a listen-only mode. After the company's remarks, we'll open the call for questions. Please note that today's event is being recorded and webcast live on Valera's website. At this time, I'll turn the call over to Liliana Juarez, Investor Relations Manager. Please go ahead.

Welcome to our fourth quarter 2025 earnings call. Joining us today are our President and CEO Enrique Beltranena, our Airline Executive Vice President Holger Blankenstein, and our CFO Jaime Poz. 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 four well-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 files with the U.S. SEC and Mexico CNBB. These statements speak only as of the date they are made, and Volaris undertakes no obligation to update or modify them. All figures are in U.S. dollars compared to the fourth quarter of 2024, unless otherwise noted. And with that, I'll turn the call over to Enrique.

Good morning, everyone, and welcome to our fourth quarter 2025 earnings call. As ever, I'm proud of the discipline execution, operational agility, and commitment demonstrated across our organization throughout the past year. I especially want to thank our ambassadors for their hard work and resilience in what was a demanding environment. 2025 was both busy and historic for Volaris. We executed with precision across our network and operations, delivering measurable progress Despite a complex industry and macroeconomic backdrop, including aging constraints, FX volatility, and geopolitical developments that temporarily influenced cross-border travel sentiment. Through disciplined network management, focused pricing strategy, and operational flexibility, we continue strengthening the foundation of our business. In the fourth quarter, we delivered 5.6% capacity growth and drove T-RASM toward the levels recorded in the same period of 2024. At the same time, we strengthened revenue quality with ancillary revenues comprising 56% of total operating revenues, reinforcing the structural advantages of our ultra-local carrier model. We also initiated targeted capacity growth in the U.S. with roots maturing as planned, all while maintaining a healthy level of cash as a percentage of revenues of 25.5% and strong causticity. During 2025, we kept Cosmex Fuel in line with plan at 5.58 cents. while proactively adjusting ASM growth from an originally planned mid-teens increase down to 6.3%. These actions ensured our shift offering remained aligned with demand while prioritizing profitability. Equally importantly, we delivered on our guidance, finishing 2025 with a full-year EBITDA margin of 32.5%. performance, strengthened as the year progressed, reinforcing the improving trajectory of the business as we move into 2026, and demonstrating that our strategic and operational initiatives are gaining traction. More specifically, in the cross-border market, travel sentiment continued to improve sequentially, in line with our expectations. We matched demand with disciplined capacity deployment and the Mexico-U.S. capacity added in the second half of the year, generated positive results as roots continued to mature. Fourth quarter international low factor reached 79%, up from 77.5% recorded in the first nine months of the year. In the domestic market, low factor reached 89.8%, reflecting discipline supply adjustments to align with demand across the network. As the best-in-class carrier operating in a structurally growing and under-penetrating emerging market, we remain focused on stimulating demand through our low-fare model, supporting profitable growth, capital efficiency and long-term value creation by continuing to connect families, communities and business across Mexico and beyond. As we enter 2026, The Mexican economy is showing earlier signs of improvement, supported by recovering consumption trends and better than expected inflation performance. The economy-wide wage bill has recovered part of the ground lost during most of 2025, supporting improving consumer confidence and households' expectations around purchasing durable goods and making travel plans in the coming months. For the year, we are expecting ASM growth of approximately 7%, fully aligned with our discipline deployment strategy. Most of the incremental capacity will be allocated to international markets, where we have seen sequential improvement in tierism since last August, supported by encouraging first quarter booking trends. Domestically, we continue to support the balanced supply-demand environment, scaling capacity in line with improving demand indicators. Our 2026 growth will be managed through three levers. The first one, scheduled airbus deliveries, the second one, AOG reduction, and the third one, aircraft lease returns. Together, they enable a balanced and controlled fleet profile that supports disciplined growth with flexibility and enhanced asset productivity. We are now at an inflection point in aircraft on ground or AOGs, and we expect this trend to improve progressively toward year end. We expect more meaningful acceleration in grounded aircraft returning to service as we move into the summer and the second half, and Jaime will discuss this in greater detail. To support this recovery, we are proactively advancing certain maintenance events and inducting roughly twice as many engines as in 2025, with a significant improvement in turnaround times. While this implies higher temporary near-term costs and a little bit more capex, we view it as a disciplined investment that accelerate inspections, shortens downtime, and allow us to restore fleet availability We're focused on increasing the share of productive aircraft in our total fleet as doing so allows us to generate greater productivity from our existing asset base without adding leverage. This in turn strengthens our earnings profile and improves free cash flow conversion. Many of you have asked about our strategy to return capacity to service without creating excess supply in the market. I want to be very clear that our capacity decisions have been and will remain firmly anchored in customer demand and sustained profitability. Our flexible fleet and engine management framework allows us to dynamically adjust deployment as conditions evolve. We are fully in control of our growth trajectory, not only for 2026, but also for 2027 and 2028, when we expect to have the engine availability constraints normalized and fully behind us. Against this backdrop, the setup, as we move into the back half of the decade, presents a compelling opportunity for Volaris to drive long-term shareholder value. Our ultra-low-cost customer remains the main source for our growth. As you know, in December, we entered into an agreement with Viva to create an airline group to accelerate our carrier's expansion of air travel penetration in Mexico and beyond. Strategically, the proposed airline group represents a natural next step to broaden access to low-fair travel in the domestic and cross-border markets. while preserving our unique brands and passenger choice. As both carriers share a common ultra low cost carrier foundation and compatible fleets, the formation of the Erlang Group is consistent with Volaris' commitment to low cost, low complexity growth for all stakeholders. The regulatory process is moving forward as expected, and we remain in active dialogue with the relevant authorities We have filed with Mexico's National Antitrust Commission and have already responded to the first round of information requests. In parallel, on March 5th, alongside the call for the Extraordinary Shareholders Meeting to be held on March 25th, we will publish the Transactions Prospectus or Folleto Informatica. At this stage, we continue to expect the overall regulatory review processes to take up to 12 months from the merger announcement date. We will provide updates on our earning calls as we advance throughout the process and reach new milestones. Now, I will now turn the call over to Holger to continue to discuss our fourth quarter commercial and operational performance as well as our commercial plans and outlook for 2026.