Gol Intelligent Airlines (GOLLQ) 1 May 212021 Q1 Earnings call transcript

Welcome to the GOL Airlines First Quarter 2021 Results Conference Call. This call is being recorded [Operator Instructions] This event is also being broadcast live via webcast and may be accessed through the GOL website at www.voegol.com.br/ir and MZiQ platform at www.mziq.com. [Operator Instructions] Before proceeding, let me mention that forward statements are based on the beliefs and assumptions of GOL's management and on information currently available to the company. They involve risks and uncertainties because they relate to future events and therefore, depend on circumstances that may or may not occur. Investors and analysts should understand that events related to macroeconomic conditions, industry and other factors could also cause results to differ materially from those expressed in such forward-looking statements. hand to will I this, it Mr. over At Kakinoff. Paulo Please go ahead.

I'm and Good Kakinoff, to and released Lark, our gentlemen, we morning, GOL figures. Officer. ladies Chief Chief by Financial our Airlines Officer; first Paulo welcome we am and morning, This Richard I Earnings Executive Also, quarter joined made Call. make everyone results a questions. will and preliminary review on Investor website Relations financial and we considerations GOL's brief as X We few presentation, has hope then available now your them only videos with the to watched Q&A. move

was by of 'XX quarter first GOL's for relevant resumption The going forward. marked X trends growth

yield the has management integrated the as generation, Smiles it meeting. efficiencies. shareholders' well the initiatives, and million cash potential when high benefits operating separate first and transaction as entities and dynamic for not is maximizing March generate per companies. on There value excess Smiles, synergies is the in merger general expected management potential were more of the the in seats, XXX the optimization of performance. be subsidiaries, to of operational, available self-financed the merger provide The to and will synergies through and considering of financial approval The tax The financial significant of is operating competitive GLA year, our greater of BRL marketing at through unification one tax extraordinary inventory mainly of XX that configuration as

end We the adjust according trend the in at wave to which to its of COVID-XX March. the was pandemic the maintained the Brazil, important fluctuations our reached second agility supply demand. Another in peak necessary of management of

the already Brazil. program rollout United in the with airlines vaccines, and few wave States the than a we of Brazil countries the in last seeing COVID-XX over weeks. advanced national that in demand for resumption positively for normalization the are cases second impact ticket on Based United experience decline sales more the immunization we the travel Fortunately, a in of corresponding of of Kingdom, in the to expect promising are air

as important goals in committed a to the carbon highlights effects who pandemic strategic metrics this leader the increased over the to reporting, to take X some TCFD the of reaching emissions transparency of second a to SASB including update and and of is component going and we as and remains the key and focused projections. sustainability. at well Recently, by is business that, going ESG to commitment quarter With driver trend us The quarter being This XXXX. additional combating is growth I'm third the reinforcement through proprietary information company's forward. for of the in sustainability was GOL using is on a XXXX. Richard, going you on detailed hand long-term

With sustainability the million, business which In quarter support Kaki. EBITDA BRL XX.X%, company's million. necessary margins and a BRL reached adjusted the a 'XX, of balancing efforts shows GOL's totaled restoration the margin demand. first to Adjusted the of XX.X%, corresponding supply operating of in reflecting growth. Thanks, of to XXX successful margin EBIT XXX

to perpetual March, liquidity the cash of the X.X a inflows to stands extraction debt a billion BRL beginning quarter has management billion liquidity. airlines XXXX X.X consumption adjusted of on capacity outflows year, few LTM of representing of notes assets. than bonds March breakeven XXXX, of current January XX, in through world closing The debt atypical EBITDA since XX.Xx company in with out cash result net disciplined its our in leverage value a first the response months we to lowest among went a demand levels, BRL and the February, from ratio, Even -- rapid As an adapting excluding and during is the exchangeable and and that peers. of in in from among more our XXXX, of

a leased the XXXX of quarter reduction XX returning XXXX. XX% of compared aircraft as to MAX the of the XXX its in as first end which network second another until scenario decreased current first for plans in Our XX when After XXX currently scheduled greater XXXX BXXX-XXX aircraft of quarter beginning X of XXX April flights day, well this the company quarter using the to by planes. From planning Operations reduced leased, between second XXXX essential Xx at of per quarter is the GOL XX capacity XXXX. XXXX. in return aircraft, assumes to are X by has fleet of the April XXXX, XXX deliveries to Boeing aircraft crisis, our to XXXX, our compared

main between to second portion expects an while their position converted company the For of expand the quarter into around in positioned Having billion GOL's XX% in costs the payroll maintaining levels. pandemic of XX% debt. X.X XX and are XXXX a the and the in to we BRL operate XXXX, pre reduced fixed full average personnel costs significant to we unit of variable of aircraft fleet end cost. Smiles with leadership believe reincorporation June GOL company's amortization of well short-term costs, expects liquidity to its after

Kakinoff. to like return Now to I would

the continue but our Rich. essential balance circumstances, service the is the to partners, always We sheet for of GOL's GOL utmost years management particular, full anniversary, we that XX challenges company's remain or trajectory Brazilians more quiet unforgettable will and more these of customers, over shareholders done professionals throughout vaccines. and, We over celebrations. even this could as resilient with and markets health our our the confidence whether the to recently we Eagles leisure business again months thanks current distribution of provide our dedication, and past travel, celebration the sincere to and will to achievements operations that to of Despite remarkable exist, as committed reiterate know We for to transport given our in team Thanks, for our in of not stronger register the diligent our XX and have we stand emerging recovery. normalize. forget

Now I initiate Q&A like to would session. the

the from comes Instructions] Citibank. question Stephen first with Trent [Operator And

Just one, still any refresh external cooking on others. Could or year later if GOL various X ones Airlines maintenance you with actually. color X, with you have quick guys any American flow memory, for Delta maybe is next I And co-shares GOL from and engine know doing this year me, with TechOps? Aerotech? customer

supplier. here. Kakinoff Actually, TechOps Delta our, our MRO among is

have with we business still and remain we -- them, might So are so.

we the the possible price diversity bass is can suppliers, get. I think that highest the of

have outcomes still will even attractive regarding a this by our Therefore, to airline mean this is we probably going important that to believe have to that and the structure do. business new already pandemic. of and we been This So Aerotech the And us and more I most attractive customers think make low-cost positive continue Aerotech, some new facilities. one considerable our MRO to amount translated send of our have most pandemic. of possibly we're players. into clients to I price services, requested price proposal, I MRO

a with that couple -- number. just Remember sorry,

focused engine is the do Our third-party capability GOL services heavy It Aerotech, to maintenance. which air doesn't on the does already frames. have

there so our not the focus And maintenance, heavy airframe is engine overall.

with Linenberg comes Bank. question Mike Deutsche next The from

to BRL March couple of sort Just here. us walk Rich, end, quarter liquidity billion. just you a through your bridge at X.X can

You're to we X.X going the of the BRL offering. end yesterday rights And billion. announcement saw at

So presumably, that's in there.

you're for about You a for to liability, August, trying talked travel showing thinking better feel quarter for piece. I'm get and the on July also how a the up in traffic tickets, focused June end. about Smiles by air -- or build presumably,

what? great. tease you just different the pieces That be If would could sort out what's and of driving

question. in Thanks offering those the first, is Well, Yes. for numbers. included that rights Sure. Yes. not

think the, is and that. and acquisition would Part going to of aircraft. continued and that important accretive we're And liquidity Credit get I earnings of add management that -- accretive accretive from both that and accretive we use credit because there is keep related out expensive included the also it to credit it's the is not proceeds liabilities. -- then deleveraging to of liability there.

On accounts is of billion in basically month. billion Normally, bookings, are the trough, seasonal the receivable of forward we if of and the that's obviously, that the second us normally trough going you lowest and is normal to the the bridge is in will. where is accounts because the trough wave. because April X now on right customer from BRL the as for there top increase -- of like BRL X.X trough a

And April. that basis, a on through of Smiles BRL went X.X a paid running you of in that quickly, dividend so we basically, out billion, that's -- for Smiles out consolidated

that Smiles, we've If articulated separately. would the, the say, you can with of the of that at But separately. But -- million. is BRL we're the you the there. We let's would assumption there BRL use that that there can the loan. talk scenarios of that XXX around scenario Delta we Then be about tale for be take hit that in million of XXX reincorporation that looking

$XX to Then be so XXX cash then of let's to BRL say, the at there out around the cash BRL generation on in on growth the our XXXX And doing the or small of there's to And to this have recap there loan, of -- is Delta XXX QX subsidiary expect there kind working Those receivables million effects BRL capital raising a Smiles We BRL is then at are on outflows. some goes capital. XXX quarter. the we notes. senior around million. outstanding in and in still related generation that million. so in our that Then -- million million XXX

the basically that's the to so bridge billion. X.X BRL And

capital X.X BRL BRL X.X X.X BRL increase, billion. be around of were If billion include to you the that billion would that

Then to. not where recent are number, cash, IP and me does secured and include can addition we and our throw factor. just of Smiles, which financing Which to the also have is our leverage unencumbered in parts That spare that, Now include existing there's which we that in capacity. not which there's of deposits, we let also does kind receivable, IP. assets. That have access for not accounts there. In receivables

effective represents leverage. it So

financial BRL our X.X the the about liquidity financial GOL increase total billion around where X.X total IP were portion end and If at IP, you IP we you go there the and of unencumbered Because assets, were a and the sources, BRL X.X number, to is of over end was spare Smiles just to total number QX, liquidity parts, billion the about that potential spare take the IP we which parts unencumbered the didn't take That and have GOL QX. you in add including that in receivables. in terms would BRL billion no of the is BRL receivables the assets, of BRL if billion of increase because billion. in at in Smiles the to add X.X access the X and increase

end portion been that rearview probably are of on to and the you days that in recovery -- or Kaki BRL guys of the that BRL in we rearview weeks, -- X that we'll wave, at sales last slide. in some of Big the so we QX, the we've X.X the billion now where see comment in presentation is at January, to look -- to also we mirror, February, the as of X.X we now. experiencing had can increase we in if We're the QX. this. mirror related the in maybe Well goes is you billion And And on of second you provided we the XX now and related the are part end can data X through the that's of of the to last [indiscernible] now

that supplied the Mike, the protect let's us crossing, approach every pandemic able to that's go we made development. the our actually, stakeholder protecting our say, through making strategy I have Yes, and has future. to to been towards company keep company's mean, the ourselves conservative dessert pretty, with winning alongside

weeks, a the increased the market. that you booking same a XX% growth a with of this, conservative this United quite week guidance. pandemic important And already have Since shared recovery have States in X per it in it's XX% shows that the week. considerable highlight have for know -- we rate But we that for might emulate we domestic therefore, per demand started. also seen curve pretty -- to we So

robust we mean mean, comparable domestic once. believe We have quite last I third the year characteristics. size, that quarter and country had the and recovered. the fourth market I quarter,

is second sustainable have available. pre We difference came in resumed the the the And vaccines this now then biggest demand a vaccination. I the wave, having COVID-XX very but way. mean

of central spent XXX the successful constructed the million immunization, possibly is mean, take immunize vaccine. the amount this Brazilian time considering You to I the so know we year, buy already that supporting now more considering have enough to patients additional that immunization up. for and which And far, in to is national shots, government been vaccines. XXX% we considerable acquire more And program government the will curve this our also shots has have a that everyone wrapping of

So I what chances think the States. we we considering at that the have is behavior we in the seeing booking curve. And to same are the have seen considerable moment, emulate forward actually, United this

for cover it's BRL Obviously, to We're we because of like QX more not get now. we that. as operating it's our to relates to the before We now, receivable sorry, -- liquidity you. in pandemic. at There -- this real May on kind X into the a we of to quick. to on of missing the do kind higher in the BRL we QX But going was recovery lot to what's weeks what looking cover, about. just been talking couple we is we're of again, about like But back all know growth then need up billion over slightly Kaki a get what just sorry, because, That's consider And revenues here interested -- because billion before it we're numbers we just this adjust roughly April. we're point, we're lost part X.X saying walk-through planning. Very, that be where at going higher. for that gave considers -- the go I liability start seeing that are Michael. the the of need of accounts on right like didn't to you those

strong look, area Brazil like know that has No, what actually malaria. Yes. vaccinations history clearly about that's said to with respect -- and a Kaki I And reassuring. in Zika

think, rollout, I the So will well. go

just on items back quickly that just Just one. to mentioned. X Rich, you

QX You bonds. a talked about on recap

didn't? what series? were Just the What you was XXXX? say Did notes? the I

No, no, no.

know, in in there. deposited December, $XXX we collateral financing around million created an We program. we secured capital and you raise initial million this $XXX there, As did of

So add-on. it's an

-- in That's XXXX. that going to in be -- be matures like matures to -- that's our mid going

And that so is.

that. to on adding You're

-- for months. that to secret again, earnings to of put And that's to weapon saying proceeds, raisings our used But reason last secret is we accretive weapon. doing back liquidity for the go XX That's to our additional use in it's Michael, need whenever to going for go some avoided we we specifically have schizophrenic -- during back to or be -- credit that capital not I'm the operations. accretive that,

with of time an last And night in it's right capacity. borrowing It's for significant have right we that. investment I the that. and there. up, shareholder example controlling on announcement market, We that the this now. our be additional And set in had It's That capacity also the proprietary, trades that's in coming so… think on we the that equity borrowing program is the perfected. to of $XXX million

said You $XXX million?

think. our managing business, And we

You said million? $XXX

We have additional [indiscernible] capacity Yes. borrowing

have We bad apologize. connection, I a

Yes, you cut the out. every time you say number,

You Is the every say capacity? million? the number. $XXX additional time borrowing you it cut is What out

$XXX have million program. million secured additional [indiscernible] have and capacity of in financing the or to we minus [indiscernible] we collateral, on With $XXX

is great. Great. liquidity it's Great. in that Well, It's listen, rights this the numbers. -- is reassuring not the offering

So know there's upside there. we

Securities. with McKenzie The from Dan next Seaport question comes Global

One, of the add Couple Smiles morning you all can I'm around transactions. if more just the on initiatives questions. wondering transaction. color here the some Congrats this of

Smiles the this, down synergies, do costs? shareholders? of synergies the finally million cash And the several these $XXX can break highlight up, revenues are the timing versus if by they immediate? are on And you mix in wondering how they So release, equity final Do say, then with that what opted just just share they over ramp the quarters? then was of I'm versus

June is period XX% minorities option start X there Dan. withdrawal closing of by next then end thing. would option vice on cash. Actually, the where and will be will component then One then XX% is choice me with other period the the sure, the the Stock stock, XX% that the by stock. cash, end the the Yes, XX. The of be May. rights of XX% -- versa, pick between is then decision operation the let roughly the And actual and -- And May, the made phase is second of And Exchange there's liquidation there's week end Brazilian options.

on ahead there's still months X So that. almost

us. funds an component videos of Now of the look there granularity process fiduciary not our Pages gave realize know I'll option kind on many we at you and take had XX what's presentation, for minorities so take structurally, during you put time going the summarize maximum the GOL are we of also website, I that indicated option. on guys We many more you know that are now. they have obligated a are based -- on But look XX when XX% yet. but that as stock at guys to to what you if to might in process we the be structural -- well wise the around the that of what We to of you lot to are stock give stock, taking as it for the with that, we in been

X%. in option BRL that then million more be would [indiscernible] dilution taking X. and component, so And XXX that cash required the the for be the scenario, with stock would XX% on

trading the it's dilution. say, today, trading the would option, cash then or GOL million the require takes minority weeks of XXX decisions and XXX% pretty in the more would X stock be of is between breakeven price maximum stock taking Obviously, more that option. still there's taking shareholders Where result rational base would the financial where much BRL X.X% usage the at if Now option, X XXX% taking liquidation. and economically rational more now stock

be, today, component the given it there's the option. is stock. the that's above that And GOL an said we in XXX% there, option stays or So see likely it stock volatility of the taking there's goal And minorities. of basis is XX. in stock we're the the increases where PN where more the assuming consolidated to XXX GOL on stock answer if to calculation implicit to would the outflow million in BRL that But -- I Smiles why it's is price a previous going for that local that cash used BRL dilution

X.X% up and would if of out play BRL you've between cash. XX% X% there more go XX scenarios put you XX% the XXX% more dilution stock, got be But at you would more stock and presentation can that there. that So XX. cash, that we to Page the go of And see how today, more kind

And Smiles million. number around of that estimated is balance the So XXX is QX BRL at right there. end cash

So Smiles if phrase. of self-financing. at liquidity, of in at more is kind you cash -- that component. use will, cash is to the scenarios, the It's That's balance of the kind why all we those Smiles than cover enough

synergies mean, of the that's Most be the is transaction the the on The going once estimated start synergies yes, realized X.X we X- to synergies, be get period. over year the BRL a billion. done. -- of realized Now to I NPV

efficiency potentially can situations. incremental two-fold. rates trapped a year. that really cost allocate components a of around component on There's the across -- XXX if a in this terms So optimization there. but will, taxes effectively cash There There million more -- the BRL cash. in this it a GOL revenues and having yield yields. in there. better CD not then of is the Smiles is component, significant We on be that of if variety which synergies component, start of of earning sorry, the second you One was And there's the better on July year. reduction approximately realized management is the year, tax of those management additional And is there's already you cash this group of utilization is in will, opportunity And higher flow, half reduction of the revenue stream. better NOLs cash -- can

all I intents think a and deal. that's done purposes, for

will of use we realize the of management basis flow at can second incorporated of utilization that to going entities to approximately NOLs can and the synergies, in the generation half on year. how the the cash million so profitable to part start this the And be of XXX overall of group. incremental cash a get much group tax into are, it's related the BRL How you

Well, to time thanks Very for the presentation. taking helpful. through the walk

And looks I of GOL am BRL Second coming looking X natural XXX BRL leases that in the if could debt at math on X do some the question BRL the what million like over say, billion from of years, I simple here, could debt. mean, down billion just aircraft amortization the it pay X.X to in quarter. potentially

the a And guess sheet maturities, if the comes environment? just the just so in to just and that I with manage how aside demand can at about wondering want from normalized that's that deleveraging leases. setting And thinking you're sheet how triangulate debt of balance balance aircraft I'm you amortization math natural you looking

to have grounded rate, normalized when leverage this run mean cycle focused of -- doing. match looked where on a rate other of Xx And Which for since to at basis, much excluding lower lot what at a target sense a which how margins the of of on heart for the meaning will to so generally on this, is because We utilization different be those we that an keep at we'll -- X pandemic. portion That's basis, QX other just a us, getting That, couple aircraft perspective go side again asset not beginning liabilities. a the a of it. We statistics for fourth run and cash the I on of start the But of is -- year. could mean of of a and We been more what to into we've normalize a makes important. from a in than or basis net we think terms the this leverage lot rate to pandemic. I excluding is the this quarter of margin average of been this policy from we've through run equal a Yes. -- than to have pandemic, management guiding will than year, effects matching lower credit we on people given ultimately on with basis have necessarily kind we we're came there us, debt. equal LTM was X rate of We that's or that over in maximization. amortized unit A came we see has used that debt this of the and have we've into trough. returned run a that year now, other the BRL and till the we of the work debt-to-EBITDA of peak cost directors of where investors. pandemic, guarantee billion how points to on

a Some other that. reduction types has been in of

so this crisis. to continued during de-levering And do we've

-- numeration denominator, is is denominator, of the really collapsed. problem LTM meaning the not the the So has EBITDA right? really kind the The

That's up hard. using why LTM -- we that it's statistics. -- to XXx the number has this gone And that so

at and year. economic which of we're beginning leverage part kind of that We from to around cycle. to leverage barring and the a last peak XXXX, to of at X.Xx Now a for -- Xx we managing Obviously, But between -- pandemics, the pandemic the economic of of from Xx us want aren't in kind pre end for pre pandemic, means of peak were the normal had terms that the scaring again, trough. cycle. be trough we

be IFRS Now X.X they've the the BRL starting deferrals a They've -- you from leases to They've is X. to XX% your our of Part billion X billion. this related the will of that during BRL XX% XX calculations in . correct. increased are but negotiations of repaid portion at the a question because work, on increased way XXXX year. per then of rate pandemic

looking achieved -- billion gradually careful that of set X And the a you There's that another Brazil period. is at of billion. our will by over FX, in company for BRL deferrals and reduced also So X.X It's our billion. X.X be component a lease another different of real increased that BRL be the BRL to those devalued in XX%. terms to X-year gross X.X

we billion that Now say and offset, devaluation be that billion X.X X.X will was repayment. then that debt by BRL BRL a offset and

if side, you getting there's X in billion, I BRL that the so that combine that in the billion variation at. a deleveraging that XXXX, you BRL on the years, back be is next comes FX and X assume billion. you've on leases lease on 'XX, so X BRL might the 'XX which think what And that, been But X.X just with in debt specifically you XXXX, leases, -- component repayment. Starting --

other us components, $XXX -- represented about for Smiles components. I we big complex mean the debt. On the of million

at term assignment Probably the interest, the Brazilian management about the other collateral we that our the unfavorable real of quarter. the XXX end is is second potential gone. which our the Delta fiduciary outstanding which target gone a loan there. take you insurer unproportional which If receivables the loan has Because has that's minority accounts only have mechanism and very of then today. of liability today, BRL The it is million, -- B, became

the the our of part taken But of that, on that that always really Or and also maintenance normalized other to no be we liabilities care liabilities related our and there's things would, secured structural be and on which business of side capital will once debt, So right we've our that like the instrument, are convert. working markets financing sheet, balance capital working that the to basis going is unsecured unsecured they are capital which a that. we disappearing. are our be change. debt are facilities There have,

structure the capital the those few liabilities has been happened So We've in with they again those stay. but will over rolling of pandemic. during the in pandemic, world What all exceptions. belong

had an out We billion. liability current assets portion significant Where a we We've had wiped BRL problem. which problem. is had the our X pandemic, by around asset a haven't of

sales additional X BRL And so the that of BRL like, on third basis, That normalized a probably month. and get our around the the as quarter somewhere Kaki between billion revenues, saying, around into BRL X.X we of accounts X.X balance receivable per translate was corporate between sheet on billion. on of get by as is recovery eventually back we will receivable billion

And not we a of the non so days that's as final some when look receivable, days normalized. liabilities. XX have and go accounts payables, will pieces -- sheet to need current lot whole portion back we on assets once receivable, related there's to assets, balance and our there normalized complex. But There's having the Smiles XX normalized on the to non-current the the do we

As I paid a million BRL Loan much from B last pretty in mentioned, we now. off loan XXX $XXX we that had then paid where has which million was the Delta, are Term of August And year. right

in QX de-lever. you unpack if And guys that we you basis, continue the -- it de-lever, we it, at numbers, the will say -- you'll I look picture de-levered QX. should also also see to from in the so And a big once

leverage, here B. get return we believe what Xx is net sufficient these you short answer credit that's in to at effects But exchange answer. the our you Delta look is right loan rating backing and And back to the out which If at be objective that now. double the effects would the to latent out, a we look doing we're have our long already cash to a and things -- if rate

it see of can't effects because the exchange rate the You also effects. some and of pandemic

terms if that already capital we've well the kind locked have you both and loaded, as long-term the done capital we of structure. work So the will, in on of structure as working

the by once I focused I EBITDA ramp-up, probably perfectly, normalize, not NPV The which converting without the but QX is to positive getting with the them a terms deferrals, could you're lease you're able will match answer, until we recovery component. events. of be I to mark-to-markets, will going more back to to clear in with on the but component, and the on Fortunately, lease only starts And to that aircraft I the happens. know that we going on apologize for we then return was on needed ground negotiations what but leverage the on so of see keep but long just -- think deferrals focused be the the structure. there did capital hour QX power into focused having the Xx

DSC question The from comes Breckenridge next Matthew with Meridian.

All have questions been my answered.

James. Raymond with Syth Savi from comes question next The

in you many for Could maybe XXXX? are do kind you your what standpoint? you that, and and XXXX, gain still aircraft And estimate? contribution aircraft BRL of MAX least thinking expect million might XXXX high a thinking X in in cash low share around be kind a sale-leaseback And of how roughly at from

this lessor speed that that these how to I Savi, we But fast I free how the much how soon. well. this actually, we And planned the up because are side know willing through aircraft think at speed moment, can. now to you we negotiations have the we with to support prices get HX that process expecting market could interesting progressing I going the think and see back it's process transactions. clear Boeing, to really new And news believe -- up. is pretty more volatile, but share kind we we a appetite are, could knows a to sales you as quite be market of and pretty to tell are are as hard from much many we're and this that everybody [indiscernible] with get between to this discussing

of side from to there us enabling coming renewal kind to any faster this lessor the be So that I bottleneck think implemented. achieve being wouldn't program

available focus well. XX% our on we reserve of finance as other as to very we soon price the just NG long-term our or us, outside before this want And combined we is definitely as possible. out MAXs aircraft. know, we in particular, transformation our and we say, second opportunistically with soon will come the with We with also like have I as to for year as market, we taken can entirely existing intense want additional finance from well. as That's the we something so sheet up side acquisition mechanisms as the other that of order, of us of available do we attractive But have available that Which operations. lever have leases, go to for the any the half in walk-in balance aircraft in we our we in the to contribution. this have -- we want own the of of cash accelerate -- of financing the the get lease equity year present that the XX% as including Obviously, to what approach on be have

And Can that that? quickly That into maintenance have that of we'll And already? -- versus how that maintenance being up sense. related the aircraft much follow-up I kind as incremental should on bring use back any tuned of system, you there. you cash we all stay catch-up the to is might makes reserves to be expect able

No. it's not required It's not increasing it's -- for operations. -- our case, not in

Because incremental is the aircraft the redelivery if accelerate the we We to process. relates transition re-delivery we us none What outflows do anyway. as extra then that engine the MAXs? relates can -- it going from need the be process, it be as have outflow that to have then NGs cash and we to costs to incremental. the of so to overhauls regular to we have on is And

aircraft out the or guiding But or kind terms if we less company and is MAXs CapEx is we in that the we're be attractive assets from can details Now whatnot not of because of if on other we engine and reserves in will, deposits what being a with problem of things on is cost and terms to current use out the costs. for the more returns. us so per some spending accelerating those quarter non-cash acquisitions we of a because here then high-class some how finance in the can on. been locked redelivery we've that of or of NG to the pay, the of overhauls aircraft, But transition you counterparties work to leasing need our and what generally we

The Instructions] Bradesco comes with BBI. Victor next [Operator question from Mizusaki

here. questions X have I

bond The that And your competition, second program. first one, the take the mean, new in release. basically targets maybe Richard, look see quarter, ESG. on some We saying bonds you the for I but mentioned now secured about why don't a we

maybe the to in So -- And bonds is actual I mentioned the sustainability-linked rate. that term? my plan is second second to you you for there mean, related for question the increase. the capital question mean, the the quarter, not any I is, near assuming issue that are guidance

to like to XXX anything I'd or try there you BRL So the do pending include did million? why is understand not

Victor, up. question? second Can sorry, breaking I'm it repeat the you was

guidance mentioned mean, Yes. actual liquidity position call mean, I the That XXX we the you second not BRL for the in should including are of that concluded the the next million. rate I quarter, conference be week.

your to like any guidance? why have understand I'd not So to did in you reason there this incorporate is

that's not correct. one, Number Okay.

print, shareholders, are quickly. of is users. couple our I do What the date trying made Brazil Many of there. voluntary. including a our to to rights you that sell-side issued Because of by, -- with is always rights ADR stuff offer think, in we The referred the is a mistakes -- they're out retail to the preemptive SEC. what like put there's this make filings we available you morning that [indiscernible] You're we all U.S., we guys do in mandatory, process lot

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with comes next from The JP Melendez Guiler Morgan. question

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