Copa (CPA) 21 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings Third Quarter Earnings Call. [Operator Instructions]. Afterwards, we will conduct a question-and-answer session. [Operator Instructions].

call webcast this November recorded reminder, XXXX. XX, a is and being on As

turn call begin. the Tapia, will I Now conference Investor Sir, Director over Relations. you may of Daniel to

our Thank and you, earnings welcome, to Jonathan, call. third everyone, quarter

CEO Joining Copa Jose Holdings; of us CFO. Pedro our and are today Heilbron, Montero,

with Financial discuss been has financial our reconciliation non-IFRS financial accordance over International call, analysts. start the in Reporting we have which IFRS non-IFRS Immediately highlights, of after, posted reports Standards. In will will third end followed Copa on to our measures today's by Pedro will found release, our discuss results. A First, Jose, can the for financial from be questions financial company's call Holdings' by measures. earnings going in copaair.com. prepared quarter who will been we the website,

These statements, on SEC. Our limited events current expectations contain to materially and/or not intentions report the based results discussed and and to cause annual to change. differ actual the subject historical results. statements filed discussion also in future company's today these that reflect uncertainties are that of beliefs, forward-looking our are will with regarding Many could assumptions involve risks forward-looking facts and

over Now Mr. like to turn I'd the Pedro to call CEO, our Heilbron.

to Thank participating in you, call. thanks and morning Daniel. our Good for all, third quarter earnings

financial by and over work past focus the operating to the dedication strong the aviation. part margin to hard my to cost have again results coworkers in regards industry-leading admiration. We're observed are environment for our Latin and American sincere been permanent their keeping efficiencies, all for a solid softer business allow XX our financial strategy First, the margins the once as driven These of on would To continue gratitude extend even delivering to company. to to delivering pleased yield always, XX.X%. disciplined operating of report I Their my like we our executing instrumental approach which highest us in including results forefront commitment them, industry-leading Copa have our months. quarter, with in

at on are for highlights increased Passenger came competitive yields QX, commitment sales to by Venezuela and central and further traffic in strategy due driven excluding Going at QX came reducing fuel X.X% XXXX. of key flights strengthening X.X% year-over-year. cost and same ] lower end America forward, results [ at And capacity to business to grew and costs. Passenger period weaker main unit last-minute distribution in the year-over-year. X.X mainly remain in to to X.X% in to certain currencies the strong in achieving by a compared the Latin July, financial XX.X%, America. Among additional XXXX, Copa's factor Panama our countries of focus lower at $X.XXX came costs position Latin industry and the Unit and between capacity region. X decrease mostly CASM load $X.XX, lower points percentage the in in compared suspension our year-over-year, in

in came decrease a at or XXXX. $X.XX, compared result, a As RASM to unit QX revenues XX.X%

margin delivered we of operating before, mentioned As an XX.X%.

Excluding reported quarter. an have Panama estimate the flight suspensions the of margin impact XX.X% for we that we operating of Venezuela would the

in performance delivered positioning again, of XX.X% completion among once industry. front, the On ourselves operational Corporate on-time the for of quarter, an best the XX.X%, factor a the

end aircraft bring our by total fleet one December. XXX MAX the deliveries X before and the year-end, receive expect of in for the Nonetheless, a a Regarding by of year. delivery end of last Boeing's These to X of postponed arrival X year still our the the this in to schedule, at few we delays month XXX due one our fleet plan, to months. aircraft was will

for and of next the aircraft. year aircraft year account XXXX Regarding a we receive Boeing schedule materialize MAX plan fleet production to now deliveries, the need has will to assumptions recent could with actual Boeing deliveries end XXX so XX change. X delivery delivery delays to This to updated that XXX ramp-up has its schedule

saw issued earnings our release XXXX. To As a delivered guidance issued details industry-leading our in for to grow expect third which preliminary you we our results in for for will capacity provide guidance we financial again more we summarize, yesterday, regarding within of the X% range quarter. to preliminary Jose XXXX, X%.

our on the to deliver strategy to key continue remains company going which cost forward. We execution,

grow as Americas high [ the hope digits single our XXXX our results, and [ passengers Panama. reliable to strengthening continues us. to deliver travel by world-class experience expect capacity consistent team expect while ] We operational And always, in continue of providing ] our in from and to plan the

Finally, deliver is consistently positioned business airline region Panama in our we ever model remains best in robust us as hub relevant hope best firmly to as the of that industry-leading and our our making that in Latin and America, the the Americas results. believe connecting

to turn I'll over results our Now in Jose, will go who detail. over more financial it

operating in same year-over-year. quarterly by at X.X% of than revenues X.X% XXXX. or to a in QX and million the decrease percentage came lower lower of than X.X% higher [ our reported by price, CASM quarter, us in of at to fuel ] excluding for XX.X% agency to $X.XXX as and their for to rest you, well a result deliver margin a and as a or in will seat direct quarter unit As a decreased discussing lower to I operating at everyone. our for sales lower-cost yields to being to Pedro. came billion now passenger a profit the fuel, efforts mainly decrease $X.X We of the a start morning, continued an costs CASM, miles Good results. We join our distribution factor focus QX higher Load as $X.XX profit driven period today. great Pedro reported unit of our $X.XX time $XXX all lower like XXXX, versus or compared low. I'm Thank liquidity. maintaining cost of third in passengers. balance team result, Capacity our channels driven the $XXX.X came on our quarter in penetration the I'd of some in X.X NDC a in net by X.X% or sheet for XX.X%. going with available third going at Thanks share. acknowledging spend by both $X.XX, quarter XXXX. Mainly million world-class our in sales decreased over and the or costs and service XX.X% XXXX, trial point $X.XXX per came

quarter, the third of close of to end we had the assets billion. $X.X of As

X.Xx. I'm in months' an As And ratio liabilities quarter debt ended to debt of in we of X.X%, to our $X.X cost billion, debt-to-EBITDA range the and with quarter with net but in solely of debt, came adjusted average with investments, of around which is be $X.XX which debt, terms we aircraft-related cash long-term pleased fixed. being of XX% lease report and short XX% our last of with billion currently debt ended to XX comprised continues of represents our the the in revenues. over

X, on X. with X X. XXX These freighter share return Boeing third Wingo. With of our to to XXX XXX-XXX year XXX comprised XXX-XXXs the of that to XXX-XXXs XX quarter I'm and make and third include all MAX a aircraft XXX-XXXs, December value We of now X the total X one one fleet the record of received ending regards our figures of of of the by aircraft, XXX fleet MAX pleased during Turning one December per quarter. MAX the $X.XX will to shareholders operated to payment its announce as shareholders, company the dividend XX XX

full XXXX. can update for we following the outlook, our year the to As guidance provide

to expect year-over-year, X% operating of to in approximately XX% within range capacity expect to increase our We margin we the and deliver by an ASMs XX%.

XX%, we're following an growth the the on of earnings $X.XX ] all-in load within projecting outlook per CASM preliminary assumptions: the expecting $X.XXX, $X.XX of between expectations on unit based in approximately our ASM deliveries, year-over-year and be basing of are fuel a the price ex X%. factor of current of and gallon. In [ to fuel of range and anticipation X% we're range of aircraft We XXXX,

ex Additionally, CASM fuel $X.XX. we at approximately projecting are

is recall, shared line in in target Investor may XXXX with Day. our with the this we you CASM ex new back you As

So in summary, for the we delivered quarter. third great results

you. again operating for our And solid to shareholders. deliver we'll leading value year some low the unit providing margins our once of expect with to Thank to questions. continue that, open call for with full outstanding while return XXXX, financial We strengthen costs the position

question the comes And today from Certainly. Syth for James. first Raymond Savi of line our from

to any the kind kind unit revisions longer or If you that I or of I other curious bit market. is [indiscernible] weakness little you're might, related down had seeing suspensions the of flight coming kind a the if revenue if taking was for of on softness in XXXX.

is Pedro here. This Yes.

So ] a us yes, waiting yet. We Venezuela, those restart were hasn't took for date, in aircraft. part a which while [ to it is happened redeploy

mostly while redeploy [ been a some so So selling like following and November, the we takes a up kept happening in it plus not we to That's start ] high throughout it flight the plan the day. pull those could December season. [indiscernible]

bigger I the change. say So probably quarter-over-quarter that would

our Well, Brazil we Brazil highlight expectations. the Yes. of below revenues in the coming slightly that kind Savi, or currency to addition did in

we So that's also driving that the adjustment made.

kind I of just your that to might if Makes we're recognizing sense. that's preliminary. turn view, XXXX capacity And

I tight is that? to here? competitors the for higher I'm yield to that And low trying still where your risk grow digits? think risk is low before higher enough obviously, competitors And had maybe demand a support double double digits. supply backfill that? can lower you're what's does changing wondering you wanted Or there here backfill -- I'm capacity get what that

Right.

So our deliveries. is related directly guidance to ASM Boeing

actually And what's X months our in X of driving that. plan we're were fact, to as by XXXX. XXX-XXXs, ago, that's fleet leave with staying matter a which So supposed

those make delayed aircraft we're for to up Boeing going stay to So deliveries. with

capacity. So our that's driving

to demand a bit faster have grow We than little that.

is capacity good for less yield. However, always

X% fine. So and We're year. between comfortable. We're we're next X% growing

a also course, further balance healthy at between in supply, demand keeping strengthening I and good think demand strong, Panama. it's hub of our levels, and

comes from question next the Bank. Linenberg our of Deutsche line Michael from And

I have know was I a couple starting stabilize guess indicate Colombia that here. competitors the market did do in starters, I of one for somewhat. to your

seeing something there? you're not. or about so I'm just similar maybe competitive curious And you situation if talk can Maybe the

they grow of the meant Not corresponds to that us. what belongs to to potential by that with or But demand we our that. demand sure and capture piece tend

pragmatic we strong time. hub. And operating I the margins not only results, return cannot to and of the how measured operating how and reason strong able very and one we're say we were over very competitor. that's So that results why we why reasons, grow about financial strengthen the a

but names, mean mention been Some good know, stabilizing maybe and that bit too supply. growing fast. won't a it have demand little and I market, between balance should the is a don't probably I for better

Okay.

the into [indiscernible], actually airport. -- of know Mexican the Normally, Okay. but kind the thought of And X I it Mexico oversupply [ working of it that's while, reason? follow-up pull it It's Copa then ] a correct behind rushed going different markets. Maybe it those? time and FX What's market, an macro me whole a at City one-off. to looks thought see interesting. of just isn't you're Tulum], interesting right? a everybody that pulled a pulling a we'll market situation. One reasons. you that Is can be was once in you've maybe out is the I markets. market I [ other I Mexican The if and for was out wrong, a X Talon bunch already of Is same like out and and here. alternative think, I'm

in No, out you say I you, also [indiscernible] only would [indiscernible] Republic. Mike. but [indiscernible] -- Colombia for Santiago, actually, don't the temporarily mentioned, the Dominican in Armania we and pulling tell markets, that, No, we're X

[indiscernible], So to XXXX. And should year we out before is next tied pulling end aircraft be the the that we're of deliveries. also temporarily reason of back doing we're

away, an where or with X are all airport an around we have is alternative XX than this these minutes have markets markets. Less try airport daily an alternative daily less we corner. frequencies. than XX a the average -- many minutes These So are that

the minutes other are of given not there from airports in the like have Mexico, minutes like X XX Armenia, that XX [indiscernible] luxury or XX So the are aircraft do delay apart. in deliveries, having markets

expecting -- we to to next So capacity Well, get. year, end where have nearby we're and deliveries to strong not markets should served then no can by other markets these airport. from get the that we're deploy the And be of going be we aircraft. enough back demand we the other

I does So and you're know show should do that markets delayed of as you have the ] deliveries, the beachhead have your special think Jose the Or [ see with Boeing's how United Pedro, last up to the with the with potential I had States fact deal. getting that think that flow? And America and compensation? was pull maybe cash we about it, President you sign not a Colombia how to are and extent you because that CapEx year out that answers to you only you of [indiscernible] in I President because if we in this relationship Boeing, the signed, of don't Latin it deal

be of up that would just and form getting some on CapEx. and color So show think reduce Any I would to you going compensation, it's that?

we're this bottom about, doing to serve better question. the answer Michael. our particular whole talking and moves line to let Thanks, that we're network. our it Jose strengthen I'll But

So a how with those specific there compensation that's for be general actions working. won't

it comment, going here there happy is, contractual relief to of your the signing associated our of to was Panama and very a but yes, nature -- City. situation, U.S. President in the our it's going the -- would proud have CapEx of course, forward. Mike, were amount lesser is But yes, back confidential. that that with contracts this moment the -- at with through Boeing flow some we and CapEx yes, ceremony of to with But

question of line our next from Evercore comes And the Duane ISI. Pfennigwerth from

the to the this X you going the MAX to EBIT obviously, the the year includes to impact earlier grounding Venezuela. which margins year. in of close-in had on just XX% So and then XX%, cuts you're guidance, that make generate

cost X remind of just remind you and items sizing So those of can combined? just us impacts us do those what think you X you the

the impact Well, -- and would the was X.X I probably, point Venezuela say,

For the year. full

we I when be it For impact think grounding, of and of the it the disclosed occurred. year order full the to in Boeing million $XX about

kind the So year that's kind this. impact of of full of the

think if can do the you I math.

Okay, that's great. then sorry. -- And

there moving not No, Yes, Yes, what's that is parts are sorry, like Duane. so know you not -- add it's that's industry. simple going to in math. our many

you XXXX certainly. XX% include our yes, XX% for yes, X argue that to to results those have Well, aspects,

but question Yes. like next we see. I periods feel you. have A we'll there that year, about easy are does mean it minor some as think pretty for compares, some

million something a you onetimer for the On expense, aircraft to rate going that of a you're related leased of the expense will in interest the called return. quarter? the $X go-forward out basis? is on that the to discount adjustment kind of that fourth calculation that stay Is interest a here in Or

up risk-free rates adjustment a IFRS arcane where performed in conditions have. yearly we lie. is It It's you with the sheet periodic that to very balance basically basically gets a that related interest where truing return requirement -- are the the just rate

the balance that moment where it something of liability the that was true So sheet shows balance the the value shows at -- sheet established.

on make lowering higher -- say, adjustment that in to this a an interest rate say, come interest guy, a bad there on the case, is and essentially let's related you that. therefore, environment have when it's charge So so to down, a a

mean I will where depending perspective, kind it from a you could argue well. it as interest will fluctuate So that rates could as vary fluctuate, of modeling on

little indicative the of been bit U.S. sneak quarter little that fourth to Okay. beyond The fourth here, A of one it out the bit see into XXXX. able look kind a in. out, quarter listen, into seeing in we're feels comment different X carriers to understand what one you And on of couple but early yield I implied first just then the like last maybe environment February quarter? feels quarter. just typically have is And a the here than fourth further January, quarters in trends early don't that you

guidance say, XXXX. we think I for you I haven't on sort comps, -- of of kind comps in as -- for the and could QX think that multi-quarter But going basis, established provide let's year-over-year just in the year sense don't QX terms guidance the again, a sequential on argue question we full you say. doing that versus of let's answer on are in a, what's similar

of question line from comes Trent the from our And Citi. Stephen next

The that made guys first a you provision one, have I revenue that adjustment second on this bit that unredeemed the move had quarter, a margins. provision as a refresh we essentially policy had the of if to in on recall any you my Could ticket was will you same an for there little impact still memory adjustment Or forward? real quarter? other the

And of adjusted The it we the a we we reason kind use was a it during catch-up out the impact. called out second for that was our for because Yes. the the a and just $X.X do quarter, that last called we captured our why conservative it XXXX. it we redeem did estimates to of be a and factor way in decided quarter, we or entirety assumptions

of that So QX. kind was during like catch-up a occurred it

was entry there I to other quarter, no Accounting say, Stephen. so the related in nothing What items to that. meant beyond to QX. And that related

Jose. versus And of optimizing -- challenges one all with not leased thinking that, the you planning? term, long-term the about us your differently quick maybe the supply your long you a how you, we about everybody, think I think if Appreciate OEMs. has made high-level chain aircraft the of supply just bit owned little think about other chain you give aircraft you When Could mean, just the one. stuff

many, like here, have because Steve. not that options. Yes, matter Yes. That's we Pedro complicated it's that's many a

though we're spare that call are return. to parts we even with And our even base to engines Panama some have doing more engines have in so ] have the engines have staying supposed make the time. We're had proactive speed And to where of securing beyond very, we were We're we turnaround some GE. We're in have with with OEMs the also maintenance stock. doing cover we off So of that -- times us we're work for MROs contracts up ahead work -- past, in maintenance we that stock. support program gone lease. aircraft to that the sure bought in the even and expecting we've in engines very to doing send we in even to bought the that the XXX marketplace, [ duty of like and

doing And the we've effort say, to would able before. been we're versus easier a, a So times gigantic I manage.

have So operations parts for of or engines we not our aircraft. lack affected and lack of

say maintain that I And Pedro that alluded the fleet we the of deciding buying that of just the to a the XXXs, and et well. flexibility extent like in our would leases X XXX, moves as plan testament just to, have cetera, the --

So that the on we executing we have continue fleet our flexibility in plan.

your appreciate it results I'm last sure Jose, that, is And our if but Really gentlemen. appreciate really is it. I'll miss call, this deeply not all if interactions.

Steve. Thank you very much,

You have it eye to brought here here. my

thank So for the thanks lot, and partnership. you a

comes from next the question our Morgan Jens of And Stanley. from line Spiess

on want Venezuela just ask the situation. to I

impact are maybe maybe to seen lower allocation, balance sheet already of year? And for quarter? forward? going full quarter the part be the Or the I clarify. on also mean third about You the the in on it how CapEx you delay. due this extremely solely you like solid have going about thinking fourth of capital to wanted Was the mentioned year. impact concentrated it I just to is also

you maybe very currently some useful. where contemplating buybacks seeing at? thoughts are is Any the would be share So that price on trading

second the and Jose question first question. the answer take I'll difficult more let

the and that's had quarter, some the there yes, would above impact time always, Venezuela in third new quarter. will other And what of be of half we've an aircraft the was because redeploy the bookings on impact generate in markets. to slightly As in be fourth which

we still that's little So impact third bit the will the saw it be half over difference. But a the of quarter. in X.X

strong the in policy, XX% which that a yield dividend is to first thing dividend year's Jens, very adjusted we that Yes, very have generous say has net now. right capital of -- of allocation, we the a have prior terms income,

the and terms capital that's about which for focus so million So over have buyback say, of company. We aircraft. allocation, have I do that approved the say in to Boeing But going with majority in X/X of is buyback years a a far. program, X is the of X.X to be let's something of importance the we our that of would terms executed of bulk, $XXX we've program, order next years that it

going [indiscernible] million. to be our expectation $XXX So That be to CapEx about cash XXXX, for CapEx [ total is approaching XXX]. going is in

XXXX going we for, to let's there are sort say, during be CapEx So the requirements some now. that of year preparing is right

from line Thank the next UBS. our from you. And Alberto of question Valerio comes

guidance My first forward the to preliminary about guidance, one is XXXX.

the for margins. future next be curve If you from year, jet oil that second is, one, curve question is recurring close the And reaching be you for my will flat the XX% take would and to something if current My changed or Argentina. and feasible margin past? I that may, about yields something

the You past. the country after have in we presence guys economy in to going looking dynamic? back in change there seen had that the you big Are this a

got We have as we X I'll again, of going Buenos with cities, Argentina, right number on beginning, market with the us. for we other And have a one be issues at they full and to in we we the through. that remains I'm And I So flights Argentina not daily any I that's us. And coverage. about good happy capacity and sense of we're might we're, makes in think mentioned to to what we deploy try Argentina. very the Aires. frequencies And with spite sure the but that start our for a question, Argentina have if second strong

working market. that in So that's well

for we results. that part say to terms but our we in we're in in have back margins I'll those can continue consistently deliver me the delivering issuing past leading world that place just margins let industry-leading XXXX, of up, have I'll and in first that guidance structure the are confident we not least or Jose at of the question, the -- We we shown

full the or is with the base several not provide are we'll dependent and mentioned, simply guidance February. able be over as on the that cost fluctuations aspect in Pedro deliver last unit results we we years. as Yes. to we've And the are our to been lower able now other that our year and And right market leading our achieve lowest dynamics.

just we're very, margins more to fundamentally very So simply good our with able cost efficient and low base. sustain

America. And comes line our question next Bank of from the Araújo from Rogério of

I I have yields. follow-up one on may. If

one confirmation. First question Is resuming there? And expectations operations regarding the comparison guidance of flights second of yields. of the to imply restrictions a the year in part full is And any Venezuela? the of year-over-year

the So basis all a to if constant, first could 'XX half help second being bit how us half. think of in else about little in is you comparable

the devaluating Venezuela end at region. the we of currencies stop had And also July. we So had in operations

So into should basis item comparison consideration we of is any in take that yields and the for this 'XX? what expectation

Yes.

period we for issued full impact XXXX includes that been the moment of for the year. is affected, that have effective Venezuela the end July the this of for guidance we have year or the So which

in Remember of not that portion it's capacity a what that's immediately. deployed So embedded was there. that

just in we for a any is ex year guidance. So of passengers haven't fuel the guidance, of guidance terms and on CASM therefore, an flow the the and forward preliminary bringing capacity had XXXX, the guidance also impact it XXXX this. And issued revenue

with the or deployed So with the the other are or or destinations to capacity that your aircraft capacity flights guidance network. the returns assumes [indiscernible]

also returning say, standpoint with embedded the in aircraft, affected by what it the there year let's highlight part that earlier and was the capacity sales [ yields impact. the capacity. second XXXX, actually, been from the of continued your $X.XXX influenced of for the ] why of one that the in I specifically also, is, of embedded the of fluctuations a it's the in questions. the in Part second yields discussed on in quarter drop deployment, -- the the as quarter. And regardless that's occurs to terms year fourth full in third that Brazil, be real in there related And earlier would in also of the adjustment year, we reason Brazil full Brazil for say to the within it's would is because XXXX, So the latter I Brazil quarter to described, back the have this that $X.XX you half during from of

follow-up if [indiscernible] on Venezuela. upside terms kind And yields resume there operations of Is there this any Okay. Perfect. a may, of trend? if in I

it's hard I'm Yes, week. we flights. restart know. It's flying to confident per over situation. were a We cities, lights unpredictable X will to XX that

We and some that it's I predict. the it's hard at in to to now. point maybe year, will not in first this guess quarter tell restart some at right quarter, would or but point the XXXX, hard saying if second

from line comes question next our from And Daniel of the McKenzie Seaport Global.

A couple of questions here.

million circling or up $XXX in Following to back on the jumps that CapEx 'XX.

how think then just are in to do Wingo? appetite about 'XX? drop-down that there's investors if those a investing that, I'm to just term, the related an longer we 'XX little for and And [indiscernible] aircraft So wondering

size. aircraft. what Boeing I to And is it's on depending the because all all 'XX, similar. is So from delivery essentially CapEx is say would in similar course, this in stream the It's us of

is. it So 'XX, modeling 'XX -- level. mean a depends but for probably 'XX CapEx. similar higher ultimately it preliminarily would say, stream could I what and to will I I that for model very you delivery say be 'XX I perspective the say, in And the it would probably in 'XX, would on similar then a preliminary

plan more, tight as terms aircraft, if use next our of at least will they [indiscernible] of published, more I'm they'll But right Wingo, deliveries in all we aircraft it's year. we we're probably get one least that could not but Wingo, in one one Wingo give get year, next now. terms at in year, And And mistaken. fleet XXX a next few

Very Yes. good.

growth you can mainline to XXXX about you versus earlier, seat seat want questions shaping given your the growth? premium wondering grow. I'm growth? wondering thoughts if unpack how question Second where here. FX just And just So that's on I'm

to trying markets a perhaps I'm So how thinking get more you're the how of and smaller more growth. is or about the U.S. backdrop that business macro line just are underserved? shaping sense

Dan, the of you breakdown the I'll a on give of Yes, couple growth. things. some color

is of already that First remainder of effect. And probably frequencies year the X be, remainder full portion for of effectively gauge. to we XXXX. the latter we is effect year that be the would We're are next a getting started that serve. several Xs, well, going growth the all, year getting the a year, -- And we're of that to X. year I'm is then actually, of -- and be don't the this in a of going XX I know, that or -- remainder to had year, full during is towards aircraft, growth be we growth of then the X/X going we it's going going the a the be have year the to of markets part to or XX% additional be sorry, basically effect MAX to About be the majority X/X of full last to Xs the full there's earlier service going is minor

in year. of into that's the that. the [ XXXs our adding basically our that's will growth densifying and next we That ] another also also seats fact for help CASMx There's are component that So XXXX.

that's gauge. a So

going growth destinations. -- be so to growth, the going is So just new low single portion is be of minor digit to destination over a

meets have premise It's the have would you a from flexibility. that a where usually, how of lot so I growth. options we Now -- to start say, balance. But put and we the

you're out, So to South Panama going versus of North Panama. of always balance

the balance you So to growth. always want

has profitability And of course, profitability decisions. heavy our potential a weight on or

and Airport, one that's it is Well, in ] just That's constraints final squeeze need get to gates? the could for airlines I that have a here, growth capacity to given how the at Tocumen other [ easy if do of access one on gates the to growth? you execute given. you And

not -- Tocumen it [indiscernible] from not not slot open there's Yes. nothing anyone an controlled, airport. coming it's gate is does ] in. that [ controlled, and about It's stops

from needed now. that already in And on plans and expand X airport take there's which we continue fruit increase low-hanging its to lot will years a implement, the its advantage is of will growing, As between of working X capacity. they to capacity, be

are there improved also. day might no the where slots will but moments some during [ So in ] There restrictions. and that tight be might airport actually be be the gates,

follow-up question And Syth a side Raymond today James. from is for line Savi from of our the final

Just X ones. quick

good the First, curious cost talk XXXX, you that's like unit just slowing could think on I expecting impressive generate that cost execution? that. you're like, that guide Jose, is It growth. mentioned though I about for sounds helping helping, was if densification you unit given what's already you you are

the on a first pressures overflights, that we the costs. And Well, put like inflationary all, XXXX. pressure densification those of out there Yes. project be from average costs, yes, ongoing facing seat else, just [indiscernible] everybody there. the reminder, XXX XXX on throughout as that cetera, that we're seats. Airlines are XXX items will for our XX XXX-XXXs bringing an to count Copa operates are of are et airspace, Airport fees,

role. [indiscernible] adding So

a growth growth addition that, overall of all, capacity distribution the guiding growth, a and off In helps efforts to and and still first sales There we're that to. it's that is we're pursuing. initiatives the tapering in of

next that for of hopefully there's pursuing we're has that $X.XX So it CASM that we're bit some opportunities maintenance little as target next keeping remind early. year achieved I think to year also keep us year But you we well. a -- a should for our allow that. And

a on And update thoughts that. and kind final makeup? maybe as appreciate CFO to you other search? out, any I of -- on And question management the the look -- transition then just on any

me something last my like need to -- ever. this Let just question is say

that here. of So Xs start not. I not But really high course, away that We're doing for to question. was a without I get was going second.

that. about Sorry

We're prepared.

a actually great [indiscernible] So with over and XX Jose years. of take done -- on been well as questions, alliances He's job center control initiatives, always pandemic recognize operations call. in for this then our results. into over take lot more a He CFO I'll those double with margins cetera. started were last XX exception earnings the et his Copa a with lot financing of heart but open initiatives, company most to course, to of accomplishments like planning I'll of years. was we He's opportunity keep during our the XXXX. But work in the and initiatives, of years A -- really ton able goes where digits, cost of challenging then the

outstanding retire. So to decided Jose job, now and has done an has he

internally So we we his And by searching are ready not have he's replacement, working to actively plans announce actively earned contingency X. the were right, also on for if January and we and but We're ready not externally. anything yet, that. we're

announce regard. go really ahead, go ahead. in nothing there's that Yes, new So right now Yes, to

reality it's like It's that. for you any a not person. that particular is thank -- of team No, there's because the not But here.

does So there's ongoing that team a everything.

is think management a And think team have financial indispensable in particular that one I have strong to going so behind have forward. areas and this that case. that we the and I no in very the you confidence overall [indiscernible] And

most actually that's I part things important about. So that of the think

course. Of

at dropping on not did, good we're So Jose. not all. it If we ball the would look

going We're not ball. happen. to that's drop So to not the going

a strong have We team.

the terms be a and issued a executive then position press in and created presented was Carey]. weak here that's in, point. And we Air]. that [ management So Will you name we the from that, He [indiscernible] comes VP won't a We He his at person of already that before Robert is other with were bring [ CCO ECJ. position. The did is release. new changes, fitting

aviation ] sector, in a the Mackenzie he was working that, in Before [ America. many years Latin lot for with

me workload the not to So day. to minute I have share my will to of plan concentrate It so of things, single with on every Robert. some many allow

other there to I'll and on me able focus many be he'll things. So help

strengthening basically to forward. we're going team the even the company, stronger So be strengthening management overall

so big are some those appreciate makes appreciate shoes I time can response. I to sense. And fill, the taking

the This the hand remarks. I'd like question-and-answer Pedro to does session. any further now for conclude program to back

Okay. Thank you, sir.

again, is call. know We call. going his you for thanks thank know them. participating that. Copa. Again, in he's to to at Jose thanks miss great this his last I earnings for This So work all,

make he'll maybe we and keep and do, under any margin like So you industry-leading questions. a your always. you always delivering working cameo your you for thank results all, continue to in Thank We'll the Thank your circumstance. hard, really seriously, on next support, strong really. participation. for as one. But

thank So great you, a have day. and

the thank presentation. gentlemen, you and Ladies your That for concludes participation.

now may disconnect, day. a and You wonderful have