Azul S A Sp/Adr

Hello everyone and welcome all to Azul's fourth quarter earning call. My name is Zach and I will be your operator for today. This event is being recorded and all participants will be in an instant only mode until we conduct a Q&A session following the company's presentation. If you have a question, click on the Q&A icon at the bottom of your screen and write your name and company. When your name is announced, please turn your microphone on and proceed. For those who are listening to the conference on the phone, press 9 to join the queue and 6 to accept the audio when requested. I would like to turn the presentation over to Thais Heberle, Head of Investor Relations. Please proceed, Thais.

Thank you, Zach, and welcome all to Azul's fourth quarter earnings call. The results that we announced this morning, the audio of this call, and the slides that we referenced are available on our IR website. Presenting today will be David Newman, Azul's founder and chairman, John Rogerson, our CEO, and Alex Malfitani, our CFO. Abishad, the president of Azul, is also here for the Q&A session. Before I turn the call over to David, I'd like to caution you regarding our forward-looking statements. Any matters discussed today that are not historical facts, particularly comments regarding the company's future plans, objectives, and expected performance constitute forward-looking statements. These statements are based on a range of assumptions that the company believes are reasonable, but are subjected to uncertainties and risks that are discussed in detail in our CVM and SEC fights. Also, during the course of the call, we will discuss non-IFRS performance measures, which should not be considered in isolation. With that, I will turn the call over to David. David?

Thank you, Thais. Welcome, everyone, and thank you for joining us today. First, let me begin by thanking our incredible crew members for their passion and dedication. 2024 was a tough year for Azul. Like many airlines around the world, we were impacted by OEM's supply chain and engine challenges, which created schedule uncertainty and operational disruption. This affected our customers and crew members in addition to a heavy financial impact of over a billion reais. Also, the Azul family and Brazil at large were severely impacted by a significant evaluation of the local currency and extreme floods in the state of Rio Grande do Sul, which resulted in the closure of the Porto Alegre airport for over six months. Despite all these significant challenges, our crew members went above and beyond, taking care of each other and our customers on each and every flight. I am proud of them and I cannot thank them enough. Turning to slide three, the Azul business model, more than ever demonstrated its value thanks to our strategic and competitive advantages. The combination of a differentiated network with unique fleet flexibility, our high growth business units, the lowest unit costs in the region together with passionate crew members and supportive stakeholders is what allowed us to deliver the record results we present to you today. Slide four, I would like to describe what I think is the strongest of our competitive advantages, our network. From the beginning, Azul was designed to be different. Our focus has always been to grow the market, to access demand that has never been accessed before. While our competitors focus its operations in three cities of Brazil, resulting in high overlap, our unique fleet and network combination allows us to be the only carrier in 82% of our routes connecting over 150 destinations, many of which are located in the fastest growing regions of Brazil. Slide five is another clear way to see how differentiated our network truly is. In this chart, we show how much Avicii Airlines capacity is in the airports where they have over 60% share. As you can see, Azul leads the global industry with 63% of our capacity deployed at airports where we are the most relevant carrier. This means we choose to fly where we are strong and we are strong in airports where we choose to fly. This is in clear contrast to the industry expectations that as we grew, we would inevitably face more competition. In fact, the opposite has happened. We have grown our markets within our network, increasing our strength and extending our competitive advantage. We truly built a unique business that allows us to succeed even in the most challenging moments. Proof of that is the tremendous support we have received from all of our stakeholders, whom I would also like to thank. We have truly set up Azul to be successful for the long term. With that, I will turn the time over to John to give you more details on our record results. John.