Gol Linhas Aéreas Inteligentes S.A.

Greetings. Welcome to the ABRA Group's Q4FY 2025 performance call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now like to turn the conference over to your host, Maria Ricardo, Head of Investor Relations. You may begin.

Thanks, Operators. Good morning, and thank you for joining us today. With me are Adrian Neuhauser, Chief Executive Officer of ABRA, Manuelira Razabal, Chief Financial Officer of ABRA, Gabriel Oliva, President of Avianca, Nicolas Alvear, Chief Financial Officer of Avianca, Celso Ferrer, Chief Executive Officer of Gold, and Julian Ambev, Chief Financial Officer of Gold. Our financial statements for the year ended December 31st, 2025, as well as the presentation we will reference today, are available on our investor website, abragroup.net. This call is being recorded, and a replay will be available shortly after the call concludes. Before we begin, I would like to remind you that on June 6th, 2025, gold successfully emerged from Chapter 11 reorganization, at which point Abra became the controlling shareholder of gold and began consolidating its financial results. Accordingly, both results are included in average consolidated financial results from that date forward. To facilitate comparability of financial and operational performance, our remarks today will reference pro forma results as if Avianca and Gold were combined for the full year periods presented for both 2025 and 2024. Today's discussion may include forward-looking statements which are not a guarantee of future performance or results and involve a number of risks and uncertainties that are outside the company's control. including those related to the company's current plans, objectives, and expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations. The company assumes no obligation to revise or update any forward-looking statements. We'll begin with an overview of the business, followed by a review of our operational financial performance for fourth quarter and full year 2025, and closing remarks before opening the call for questions. With that, I will turn the call over to Adrian. Adrian?

Thank you, Agustina. Hi, everyone, and thank you for joining us. If we can turn to page four, please. This is the first quarter where we are presenting our consolidated results as a group. We're really excited about this and proud of what we're going to show you. Slide four, for those of you that have not joined us before, is just a summary of really what we are. We are today the second largest airline group in Latin America were the result of the consolidation of three main carriers, Avianca, which is the number one airline in Colombia, Ecuador, and in Central America, Gol, the second largest airline in domestic Brazil, and Walmart, a European ACMI provider. By putting together those groups over a few short years, we've created, or those airlines over a few short years, we've created the second largest group in the region with over 300 aircraft, 375 routes, over 70 million passengers a year, 30,000 employees, Importantly, the strongest order book in the region, both on the narrow body and wide body side, and also an agreement in principle to acquire Sky, which would add to our footprint domestic Peru and domestic Chile. Turning to page five, what did we achieve this year? First of all, we, as Maria Cristina highlighted, we successfully completed goals restructuring, with goal emerging from its bankruptcy as a more sustainable and competitive airline, and with ABRA resulting as the controlling shareholder of gold. We continue driving synergies. Today we have over $180 million cumulative in value creation by increasing coordination across fleet, procurement, network, commercial, and loyalty, and we strengthen our leadership team as we drive more coordination through the group. We now have a chief procurement officer, a chief loyalty officer, and chief corporate responsibility officers at the group level. On the operational side, we announced a robust incremental fleet plan and then the expansion of our wide-body strategies, adding 330s and 350s to enable the future growth and drive more efficient operations. We enhanced our value by coordinating our airlines more and beginning the process of aligning our products to drive an improved travel experience and operational excellence. And we continue to progress in sustainability, delivering ongoing improvements in fuel efficiency while improving connectivity in the region. What does this mean financially? It means we achieved a pro forma adjusted EBITDA growth of 26%, $2.7 billion for the year at a 27.4% margin. That's an over 300 basis point increase. We ended the year with liquidity at over $2.5 billion, about 25% of our LTM revenues. and net debt to LTME Vidar decreasing sequentially to 3.3 times. Both of our important additional business units, cargo and loyalty, delivered strong performance. Cargo in particular delivering approximately 1.6 billion in revenue generation on a pro forma basis. And importantly, and we'll talk about this later on, we aligned accounting policies across the airlines in line with market standards. Turning to page six. So what are we today? As we said, second largest group in the region. Both of the key airlines in the region performing admirably. 98.3% scheduled completion for Avianca and 99.2% for Gol. Both airlines with some of the strongest on-time performance in the world. Continued to drive brand loyalty, one of the largest loyalty programs in the world, combined with over 46 million members. a 34% increase in premium customers through our networks, 7% increase in growth billings, and the program members' share of our total passengers on average at about 50%. We drove an enhanced customer experience. We upgraded our premium offering through Avianca and VIP lounges and an insignia check-in in Bogota, and we enhanced our long-haul insignia experience on the transatlantic routes. We've rolled out business class across the entire Avianca network, And we announced the fleet expansion, adding seven A330-900s to support international growth for the group. Up to five of those will initially go to GOL and two to ABIAC. Turning to page seven, consolidated business indicators, ASKs growing nearly 12% for the group, with load factors holding at above 80%. Passengers increasing by 5%, average fare in the network increasing, PRASC holding almost flat, and CASC holding about flat. Turning to page 8, if you look at the two carriers to understand what's going on in the underlying, both carriers showing strong growth in their networks. Goal, if you'll remember, putting its fleet back in the air and recovering its operations as it worked through its bankruptcy, but also an important redesign in the network with goal increasingly focused on strengthening its Rio hub. Avianca continuing to grow by extending stage length and expanding flights out from Bogota into the rest of the region. Passengers, in Avianca decreasing slightly as we extended the state's length over 7%. Average fare increasing. At goal, passengers increasing pretty much in line with the growth of the network. Cask of both companies holding in spite of the very strong network expansion. And cask of both companies at Avianca continuing to decrease slightly, at goal holding basically flat, passing through a little bit of inflation at about 4%. Turning to page 9, handing it off to Manuel de Arraso, now our CFO, to continue with the conversation.

Thank you, Adrian, and good morning, everyone. I'll walk you through our financial performance for the full year. Maybe we start in page 9 on the performer revenues. Performer revenue for this year has increased 11%. to $9.7 billion. That is driven in about 8% by passengers' revenue, and as Adan was explaining before, and a very strong increase in other revenues in cargo and others. That increases about 31%, right? In terms of a VDAR, the company deliver a very strong pro forma adjusted VDAR growing almost 26% to $2.7 billion for the full year, with a margin of 27%. If you look at that number as of the fourth quarter in particular, it had a margin of 30.6%, which is a very strong margin and reflects the great performance of bringing in gold and the improvement of gold's margin over the first quarter and a very favorable seasonality in the fourth quarter. I would like to highlight that we are not highlighting the metrics below EBITDA as depreciation and interest are available under our current accounting policies and therefore kind of the year-over-year comparison is not very meaningful. However, the numbers are in the back of the stack. If we go to page 10, and we look at the balance sheet, we have ended the year with a strong liquidity, almost $2.5 billion of liquidity, which implies a 25% ratio of liquidity over revenues for the year, which we believe is a very strong point. In terms of net debt, we had a 16.6% reduction of net debt over the year, mainly coming from the restructuring of gold, right? That has taken our net debt to a bidar, the net leverage metric down from five times before in 24 to 3.3 times. And this is an important driver for us, and we will continue to have be leveraging as time goes on. If we go to the next slide, slide 11, you can see the performance for the fourth quarter in particular. You can see ASKs at 31.2 with a load factor of 82.6%, which has helped us deliver an EBITDA margin of 30.6%, as I said before, and again, highlight to you the level of leverage and liquidity that we are finishing the year. Going next to page 12, to page 12 exactly, I will also touch on the point of the fuel volatility. As you all know, We have been monitoring very closely the events happening in Middle East and the impact that fuel has on our operations. In general terms, in these months, a $1 increase in jet fuel price has resulted in a $70 million impact on our monthly fuel expense, which means that to compensate that, we would need to increase prices in about 10% for every dollar that has increased. What have we been doing? On the right side, you can see that we have hedged 50% of our fuel needs for the months between March and May, putting in place a zero-cost collar with a call strike at 2.45. That was a very good protective measure that we took right before the war started, and we have increased that hedging recently with another 14% of the fuel needs until the end of August at a strike price higher, of course, because the market has moved up significantly. In Brazil in particular, the fuel pricing mechanism going through Petrobras allows the companies to feel the impact of fuel with a month of of delay and that has given the company time to try to pass through some of this into price. We continue to work with our commercial teams, continue to work very disciplinedly on price management and being able to pass prices over to the tickets and to compensate for the increases of cost. With that, I finish this section on the financial results, and I will pass it over to Gabriel so that he can cover Avianca's full year performance. Gabriel, all yours.

Thank you. Thank you so much, Manuel, and welcome you all. If you turn to page 14, I will give you highlights of Avianca's full year performance in 2025. More on the operational level, as Adrian commented, we're pretty proud of what we achieved We continue expanding our network. We launched 13 new international routes with four new, completely new destinations, reaching more than 160 routes finishing the year, 83 destinations in 27 countries. As it was commented before, we finished that reallocation of capacity, moving, expanding our space length, moving capacity from domestic Colombia into international markets, driving more than 7% of our stage length and a much more healthier and balanced supply-demand dynamic. We continue and we continue investing. We invested and we continue investing in our product and brand loyalty. Right now, we have completed our rollout of business class in the entire network, including all our domestic markets. We opened a new VIP lounges and dedicated Insignia, which is our transatlantic business class, checking space in Bogota and strengthening our premium customer and loyalty value proposition. And in operational level, as it was touched upon before, we delivered a very robust performance, which we are proud of while we navigated pre-industry-wide challenges with engines that affected most of our family types of aircraft. On the financials, we achieved as Avianca an adjusted EBITDA of $1.5 billion, which was more than 20% growth year over year at 26.5% margin, more than 200 basis points growth year over year. We, as Manuel was saying, and Avianca, we continue reducing our net leverage sequentially to 2.7 times, and liquidity reached $1.4 billion, which is close to 25% of last 12 months revenues. And that includes a $1,200 million drawn revolving credit facility. And our business units were very proud of the performance. They achieved cargo, strong performance with market dynamics supporting that, and we completed our strategy of a network redesign, reflating our cargo network, right now having nine A330 freighters across our cargo network. And in Lifehouse, we reached 16 million members and customers by year-end, which is more than 14% growth year over year. And at Guamos, we deliver its first full year performance within the group, supported by very strong wide body demand. So turning to Nico to get more into the financials, thank you very much.

Thank you very much, Gabriel, and good morning, everyone. Turning to slide 15, delving deeper into financial performance. You can see that Avianca generated EBITDA of about 1.5 billion, up 21% year over year, with margins expanding by over 200 basis points to 26.5%. Importantly, fourth quarter EBITDA, which you can see in the appendix, reached $463 million at a margin of almost 30%, which is about 60 basis points stronger versus last year. So overall, This reflects the combination of disciplined capacity growth, improved network efficiency, continued cost control, and higher premium revenue generation driven by the rollout of business class across our network and the strengthening of our loyalty program. Also, as Gabriel mentioned, our cargo business, Lifemiles, and Wamos posted remarkable performance during the quarter and the year. You can appreciate that EBITDA generation translated into continued balance sheet strength, with liquidity increasing $110 million to roughly $1.4 billion, representing about 24% of last 12-month revenue. And notably, our net leverage declined to 2.7 times, down sequentially from 2.8 times in the prior quarter and from 3.3 times in the prior year, driven by EBITDA growth and relatively stable net debt. Between early 2025 and early 2026, we continue to strengthen our capital structure, refinancing approximately $1.75 billion of debt, mostly our bonds to 2028, pushing out maturities to 2030 and 2031, and optimizing the use of our collateral. So overall, our operating performance is giving us greater flexibility to manage through the cycles, continue investing in our business and our customers, and contribute to the broader Abra platform. And with that said, I'll turn it over to Celso to discuss GOAL's 2025 performance.

Thank you, Nick. And moving forward to page 17, I want to share the GOAL highlights for 2025, which was a really transformational year for GOAL. As mentioned, marked by a successful completion of the Chapter 11 process in June. and strengthening the capital structure of the company, which provides a solid foundation going forward. Operationally, the focus has been on increasing capacity with discipline. We saw a strong year-over-year capacity growth in international markets, reaching more than 13 countries. Domestic growth was supported by 11 aircraft returning to service and improved fleet availability. Importantly, that capacity has been deployed where the demand is strong and where returns justify it, consistent with the strategy that Goal has outlined over the course of the year. At the same time, Goal continues to benefit from its leading position in Brazil, with a strong presence in key markets such as São Paulo, now more than ever Rio de Janeiro and Brasília. including slot-constrained airports that support frequency and commercial relevance. The network is a high-frequency with strong connectivity that drives both cost-efficiently and customer preference, supporting health load factors as capacity increases. Goal is also beginning to selectively expand its long-haul operation in international markets, including the recently announced Rio JFK services. Operational quality remains a clear strength. Go was the number one airline in Brazil for on-time performance for the second consecutive year, which supports both customer loyalty and commercial performance. From commercial perspective, Smiles continues to be the core driving of Ernst Quality with a large engagement from its base and diversified partnerships ecosystem that supports recurring high margin cash flow generations. In cargo, GoLog continues to perform very well, supported by the addition of two dedicated cargo aircraft, totaling nine aircraft at the year end, strengthening the MercadoLivre partnership and benefiting from a strong demand in e-commerce and express logistics. So overall, what you see in Go is a disciplined recovery, increasing capacity, maintaining stronger operational quality, and strengthening the business commercial and earnings profile. Juliano will speak about our financial results.

Thank you, Celso. Moving to slide 18, we are very happy to report that, once again, we're outperforming in our plans since emergence. So it's the third quarter that we're outperforming the five YTs that we had published at emergence. If you look at EBITDA, we reached an EBITDA of $1.2 billion, which is an increase of 32% versus last year. and a margin of above 30%. This is driven mainly by our growth on capacity growth plus price growth in local currency and our continued control on our cost. Liquidity also is ever stronger at $1 billion in liquidity representing 25% of our last 12 months revenue and a significant increase versus the position of last year with 43% increase versus 2024. Regarding net leverage, we've been able to reduce net debt of EBITDA to three terms in 2025, accelerating the leveraging of the company and pursuing our commitment to a healthy balance sheet. We are very happy with those results that underline our purpose of being the first airline for everyone, our clients, our investors, and our teams. And we continue to deliver on our plan with consistency and discipline, building an ever-stronger goal. With that, I will now turn the call back to Adrian for closing remarks.

Thanks so much, Julien. So, to summarize, as I said, really, really proud of the network of the results we're delivering this quarter. First of all, a continued focus on customer experience, boosted by differentiation and brand loyalty as we integrate the power of the two brands, but also take advantage of the increased connectivity. and frankly, of the know-how that each of the two companies brings in creating a unified customer experience. Number two, revenue growth and disciplined cost management that drove higher margins. Three, strong adjusted EBITDA and liquidity and continued balance sheet delivery. And very, very proud of the results our business units are delivering through the year. With that, I'd like to... to turn it over to Q&A. I'd like to turn it over to Q&A. Thanks so much.

Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Your first question for today is from Mike Linenberg with Deutsche Bank.

Hey, good morning, everyone. Great way to finish up 2025. And, you know, obviously now as we look into 2026, you know, the high energy prices are kind of the front and center focus. I, you know, I saw that you have these hedges, you know, clearly opportunistic. What are you currently paying for jet fuel? I mean, I saw that in the context of that $4 per gallon jet fuel hedge. What are we seeing today? And then can you kind of give us a view on how you're thinking about your capacity plan for this year? I mean, I know we're starting to see other carriers sort of rethink near-term growth plans as they deal with higher fuel prices. Thanks.

Thanks, Mike, for the question. And yes, I mean, it's been an interesting start of the year with these movements. In terms of what are we paying for fuel today, there is a certain delay in the cost of fuel as our suppliers have some inventory. So we are at a spot price today where outside of Brazil, I would say, is around $40, a little bit under that. That is the fuel price that we're paying without taking into account the without taking into account the hedging, right? In Brazil, it's gonna be lower. I don't have the exact number here, but it's gonna be lower than that. Then, on top of that, you have the compensation that is coming from the hedges, right? From March, April, and May, we have half of our volume is capped at the 245 that I referred to before. So that's what we're paying, and that is mostly – that is the fuel that is being consumed outside of Brazil, right? And Brazil is still – still hasn't seen – we're just starting to see kind of the new price – the price resets now on the 1st of April, right? So you're going to start to see an effect of the price increase going forward, right? Yes.

And so with regard to capacity, Mike, if you were to look at our sales curves today, you'd see the following, right? We've started pretty aggressively passing through the increased cost of fuel, right? So we're not relying on the hedges to – To boost margins, we're basically using them as a way to soften the transition to new pricing as we drive the pricing up. And obviously, there's a lag there, right? If you were to look at pricing in Brazil today, we're up, and I think the industry broadly is up about 30% from where we started a little over a month ago. which if that holds, right, that's pretty much a full pass-through of, you know, late four level fuel. Now, obviously, because you've sold lots of bookings forward, there's a mix of bookings that you sold at lower prices, bookings that you sold at high prices, and it's going to take, you know, the better part of three months, even with the new pricing levels for your average pricing to catch up. And then the second part of that is, you know, how much of that turns into reduced demand? Because that will ultimately answer your question, right? What we're seeing so far is that the short end of the booking curve is holding up pretty well. But you're seeing, you know, the later bookings not come in, right? And the question is, do they show up later? Or do they, you know, which interestingly, if you think about what later means today, later sort of means the beginning of summer high season, right? And so it's not a crazy bet to assume that they will. Or do they fall off, right? We've started in Brazil in particular thinking about some, you know, tactical reductions sort of in the single, you know, low single-digit percentages of ASKs. but the reality is we don't know yet, right, how elastic that's going to prove and how much we need to react to that, right? So we're looking at it constantly, and as soon as we sort of start to see, you know, near-term bookings taper off, that'll be a strong sign that we need to cut back on supply, right? On the Avianca side... The pass-through has been, I'd say, less effective. It's a more complex competitive set, right? You have over 20% of your ASKs deployed into Europe. The Europeans are largely hedged. You have 35% of your ASKs deployed into the U.S. The U.S. carriers, in spite of their, you know, big talk, have actually been slower at sort of driving pricing up, at least in our region. And they've been slow followers as well. So we're slightly under 10% increased in pricing at Avianca. And again, you know, we need to get to sort of the mid-20s, right? So call it a third of the way there. And sort of the same dynamic, right? Less to no impact on the near-term bookings, which is interesting because we've been in low season. but a pretty strong drop-off in the long-term bookings, which is interesting because those are high-season bookings, right? Yeah. So right now, I don't want to sound sanguine because this is obviously an unexpected sort of shock to the system, right? And it's not a positive shock. Between the effectiveness of our ability to pass through And between the near-term booking curve holding up, even in low season, you know, we're pretty optimistic about summer demand. You may, again, see us pull back a little bit of capacity here and there, but we haven't yet decided to sort of make wholesale reductions, certainly not into the summer, right? If we see this dynamic holding up – you know, for a few more months and then sort of have to extend higher pricing into, you know, the much more elastic sort of post-summer shoulder season, that's a different discussion.

Yep, yep. All right. Well, very encouraging that, you know, you guys are, you know, you appreciate the elasticity and are considering tactical moves if this fuel regime or environment continues, right, process. So thanks. Thanks for the thorough answer.

Mike, to go back to your question around the fuel, in Brazil in particular, the price announced by Petrobras for April is 6.85 reals per liter, right? That translates into about $4.9 per gallon, which remember that includes non-infinite amount of taxes.

Yes.

And that, so that you have a reference, is about a 55% increase against the price that we paid during March, right? Remember that in Brazil, the price kind of reflects the average of the previous month, right? So you're seeing, you saw 55% increase when kind of world jet fuel prices increased. On the spot is more, right? More is double, right? So it's... to moderate an increase by the for the month of April, and then probably in May, you're gonna have to see the fall back, right?

And Mike, one more comment on your comment. We are cautious on elasticity. Again, like I said, we're monitoring it. Yes. The bigger concern I think for everybody should be less the pricey elasticity side, if you think about, and this is an interesting data point, right? Because both Goal and Avianca have been pretty effective in keeping their costs in line and in driving higher loads, a 30% pass-through to fares would put 2026 fares at on real terms, at the same price we were charging in 2019, right? So you're actually, interestingly, not talking about, you know, sort of taking pricing to where it's never been. You're really sort of attaching to inflation. So we are concerned about elasticity, but we're not panicked about it on the price elasticity side, right? If you have to think about You know, what are we monitoring more long-term? We're monitoring, you know, economic slowdowns and then income elasticity, right? Because that would have a much more significant impact, we believe, on demand than the fair pricing that we're passing through, in particular when the entire market passes it through as well.

Great. Very helpful context. Thanks, everyone.

Thank you.

Thank you, Mike.

Your next question for today is from Savi Seif with Raymond James.

Hey, good morning. Maybe I appreciate the tactical capacity adjustments you might make, but I was wondering if you could talk a little bit about maybe the core capacity plan at Avianca and Goal this year and kind of where that kind of growth might be focused.

Sure. Celso, do you want to start with goal and then we'll hand it to Gabriel for Avianca?

Yeah, I can go. Hello, Savi. Thanks for the question. And we have, as I mentioned, 2025, we were like catching up the capacity that we lost during the pandemic. And basically, by creating connectivity, design the new network with the entire ABRA team, focused in regions where gold used to be strong, but we see even higher potential for the company right now. I can give you two examples. One is Rio, the other one is Salvador, that both concentrates more than 86% of our growth in 2026. In Rio International, we have created a very strong position, high frequency, where we believe if we need to do some tactical reductions, we will be able to recapture most of the demand as the whole industry continues to be and follow the rationalization. So we are monitoring very close. As Adrian mentioned, no, I mean, no, decision and we are not looking for a restriction of the network. We are confident with, you saw our results, I mean, with ASK growth and unit revenue growth. So we are, I mean, monitoring close and doing these adjustments so far. Okay.

So, so here, oh, sorry, sorry. Go ahead.

No, no, please. Please go ahead.

Thank you. So on the Avianca side, as we commented and we were talking last year, we did this capacity shift to have a more healthy supply and demand balance, right? We extended the space length more on the international side and we did some adjustments in domestic Colombia. As we think about 2026, Our initial plan was most growth within the mid single digits, right? And that comes on really not getting so much narrow body fit this year. So adjusting the network throughout the same pattern, but not a high growth. And on the wide body side, it's really, as I said before, and we commented before, right? Last year we had this, all the disruptions due to the wide-body engines that we commented on the last call. So it's more about putting our network on the wide-body side that's getting all the 7.8s and all the 8.330s that Randian commented. So in a nutshell, we were not thinking on a high growth in the network this year, and basically keeping kind of the same pattern that we were having last year into this year.

That's very helpful, Kala. Thank you.

Once again, if you would like to ask a question, please press star 1. Your next question for today is from Pablo Monsive with Barclays.

Good morning for taking my question. Just a quick question in terms of OPEX and CAPEX. At this point, are you thinking of any measures to reduce the cash outplays, assuming the situation continues with a very high oil price? Thank you.

Paolo, thank you for the question. We are always looking at ways to optimize our are OPEX and CAPEX in particular, where kind of the amount of the CAPEX around engines has turned to be more significant. We're also looking at ways, Paulo, of taking advantage of facilities or kind of using kind of local facilities to be able to fix engines in Brazil, for example, which would give us also some kind of support in terms of being able to finance those. But yes, we are of course working on optimizing the CAPEX and the OBEX plans. Thank you.

Your next question for today is from Gil Hiram Mendez with JP Morgan.

Hey, everybody. Good morning. Thanks for taking my question, and I appreciate the comments on the first question about the demand outlook. Just following up into that, if you can break it down between different segments, think about leisure and corporate and domestic and international. When you say that you're increasing prices by 30% in Brazil and roughly 10% in Colombia, is this across the board for different segments, or is there a difference between leisure and corporate and domestic and international? Thank you.

No, what I'd say – we can dig into this more, right, offline. But what I'd say is, look, conceptually it's across the board, right? We've tried to increase across the board. Obviously there's some self-segmentation, right? If we're saying, you know, the shorter end of the booking curve is holding up very strong, the longer end of the booking curve is where we've seen, you know, some – you know, still TBD if it's reduced demand or simply delayed demand, the shorter end of the booking curve tends to be more business-focused, right? So we're passing through on everything, but what you're seeing is the leisure customer not book up as early as they would. And that's sort of natural, right? You'd expect the people that, you know, they thought the summer ticket was going to cost X right now it's costing 1.3x. They look at it and they say, well, let's wait a bit before we book it and see if it drops, right? So, you know, I think there's some sort of, you know, self-selection there that's not us segmenting where we raise prices and where we don't, but sort of how people – how different parts of the market react to changes in our pricing curves. In Colombia, as I said, it's a little different because even though we raise fares across the network and we intend and push for our pricing to go up and hope that our competitors will follow, the nature of the network means that you've got different competitive sets, right? So when you When you say international, again, our U.S. fares, we've been through, don't quote me on this, but three or four price increases. I'd say three have stuck and one we've had to pull back. And it has to do with whether competitors follow or not, right? And that has to do with sort of the competitive set you're playing against, right? In Europe, the European carriers have been much less competitive. willing to raise fares. I think the position they're taking is they're more hedged and they're using that to try to capture market share. They're also driving some pretty extraordinary margins on their Far East routes, right, as connectivity sort of goes through Europe and avoids the Middle East. That's also giving them some incremental margins and allowing them to not pass through as quickly on the Americas route. So in those cases, you know, we're probably you know, 25% of the way pass through instead of 30%, right? So it depends more on who you're competing against than, you know, than us segmenting international versus domestic versus what have you. Does that make sense?

Very clear. Thank you, Adrian.

Thank you.

Your next question for today is from Gavin McCune with Amundi.

All right, guys, thanks for the information so far. The last question I have is in relation to the additional hedge that you mentioned. Can you give us any color elsewhere on that? Was that Gall or at Avianca?

No, look, the hedges themselves, we take them at Avianca, which is the company that has less kind of less – has a more direct impact from changes in fuel prices, right? And, of course, the company that has more ease to find with banks and other things, right? But, yes, they're being taken out of Avianca today.

That's very helpful. Thanks, Amil.

Your next question for today is from Nicholas Fabianczyk with Jefferies.

Thank you for the call. I had a few quick questions here. On goal, if you could please expand a little bit about liquidity, especially when we look at liquidity without the credit card receivables, any thoughts there in terms of alternatives, things you could do with the the intercompany loan or any contemplated reshuffling of the goal capital structure at this stage. Regarding ABRA, similar question. We have the 29s bond. I see that it's callable in October, so just any updated comments around liability management or refinancing for the ABRA 29s or the term loan? And then at Avianca, you've made great progress with the refis there. There is the stub left over of the 28s. If you could give us an update on liability management at Avianca. And also just wanted to ask about Avianca, the CapEx plan, if you could give a little bit more detail, CapEx for 2026. Thank you.

Thanks, Nicolas. Let me start by addressing Avada in general, and then we can go into the different points. The liquidity position that we have across each of the companies is very strong. In the case of LaBianca, we finished the year with $1.4 billion of liquidity. That includes the reward credit facility. At the level of gold, we have about a billion dollars, which includes the receivables, which, as you know, in Brazil, is a fairly liquid asset that you can sell off. It's like having a reward credit facility. In terms of you're asking about the capital structure of gold itself, there is no plans today to do anything around that. The company is in a strong position and has been deleveraging over time. Of course we are looking at CAPEX and OPEX and how do we make sure that we keep our liquidity levels and our cash levels in particular at a reasonable amount going into this. But there is no plans or kind of things that I would comment on doing liability management at this point, right? And that's in general for the group. I think that even kind of the market environment today, I think liability management are not in discussions same thing with Avianca, right? In Avianca, if you remember, we did a couple of refinancing at the beginning of the year. We brought down, we repaid a big part of the 28 notes with a bond that we did at the beginning of the year and re-tapped it with it later in January. And there's about $400 million of the 28 notes outstanding. we have no plans on doing anything with those in the short term, right? And our financing is at our, yes, we're approaching kind of the end of the non-call period, but that's a bigger question. In the market that we have today, I don't see that we're doing anything in the short term. And just to be clear, on the gold liquidity that you see and the cash that you have there, that is real cash and liquid facilities, right, and liquid assets. So it's not – we're just showing you there the cash and the factorable receivables. So anything – any kind of receivables that is not factorable, we will not include there.

Once again, if you would like to ask a question, please press star 1. We have reached the end of the question and answer session, and I will now turn the call over to Adrian for closing remarks.

Thank you, everyone, for the time you spent looking at us. Again, really proud of the quarter we delivered, of the evolution of the company as we put it together in a very short time, the synergies we're driving, the growth that we've driven, the margins that we think are second to none in the region. We're really proud of what we've delivered. We're working through the fuel situation, as you can see, pretty effectively. The hedges have put us in a great position to work through it and pass through pricing as we head into summer high season. So all in all, even with the geopolitical backdrop that we're dealing with, I'm very, very excited for what the year will bring. So, again, thank you all for spending the time, and we'll be talking to you shortly. Thank you.

Thank you very much.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.