Welcome to the GOL Airlines first quarter 2022 results conference call. This morning, the company made its numbers available along with three videos with the results presentation, financial review, and preliminary Q&A. GOL hopes everyone connected has watched them. After the company's brief remarks, we will initiate the Q&A session when further instructions will be provided. This event is also being broadcast live via webcast and may be accessed through the company website at www.voegol.com.br/ir, and MZiQ platform at www.mziq.com. Those following the presentation via the webcast may post their questions on the platform, and their questions will either be answered by management during this call or by the GOL investor relations team after the conference is finished. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of the company's management and on the information currently available to GOL. They involve risks and uncertainties because they are related 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. At this time, I will hand you over to Mr. Paulo Kakinoff, CEO. Please begin. Good morning, everyone. I would like to start by ratifying our most important results for the period, which were made possible by the trust we obtained from our customers, investors, suppliers, and especially our team of eagles. Our employees were responsible for getting us through the challenges of the quarter without disruptions in our operations. Net revenue from passenger transportation grew significantly due to the consistent recovery in sales. Sales levels in January and February increased 10% and 30% respectively compared to the same periods in 2019. While in March, they expanded 60% due to the increase in sales to the corporate segment. In January, we reached a 38.5% domestic market share and 99.7% flight completion above the industry average. This position was achieved by the diligent capacity management in the previous months. Compared to fourth quarter of 2021, we increased our capacity by 15% with a more assiduous recovery at the country's main airports, such as Congonhas, São Paulo, a significant hub for corporate passengers, essential for strengthening profitability. Our occupancy rates and aircraft utilization continued to improve, and flight frequencies expanded by 48% when compared to the first quarter of 2021. The increase in demand and the number of passengers transported was followed by an important growth in our NPS. During the quarter, this service quality indicator increased by seven points and reached 45, GOL's highest score to date, reflecting the consistent efforts towards the improvement of our customer experience. In April, we signed a landmark cargo and logistics service agreement between our logistics business unit, GOLLOG, and Mercado Livre. This partnership contemplates a dedicated freighter fleet of six Boeing 737-800 BCFs, which is expected to begin operations in the second half of 2022, and it can be increased to up to twelve aircraft until 2025. Part of these aircraft will be converted at GOL Aerotech, and its personalization is anticipated to generate fleet optimization savings of approximately BRL 25 million in 2022 and another BRL 75 million in 2023. We plan to increase GOLLOG's range of services and tonnage capacity by 80% during 2023 to generate additional incremental revenue of approximately BRL 100 million in 2022 and more than BRL 1 billion over the next five years. I will give the floor to Richard Lark, our CFO, who will present some financial highlights. Thank you, Paulo Kakinoff. Our results reflect the social capital we have accumulated over two decades of collaboration with our clients, employees, suppliers, and investors. I would like to start today highlighting the important results we had in the quarter. We registered an EBIT margin of 5.6% and an EBITDA margin of 16.8%. Our detailed financial analysis for the quarter was shared in the press release and video presentation released this morning. We believe that you all had a chance to access them. Regarding our capital structure, our available liquidity remains stable at BRL 3.3 billion, with short-term debt of BRL 721 million at the end of the quarter. We have no significant debt amortizations within the next 12 months and sufficient long-term financing credit lines for the acquisition of new 737 MAX aircraft, a key part of the fleet transformation plan. On April 13, the exclusive codeshare agreement between GOL and American Airlines was finalized, including an equity investment by American in the amount of $200 million. American now has a 5.3% participation in GOL share capital and was granted the right to appoint a member to the company's board of directors for the term of the exclusivity provided in the transaction. This quarter, we received 8 Boeing 737 MAX 8 aircraft. The transformation of our fleet to a new and more efficient technology plays a key role in our strategy for the coming years based on increased productivity, lower unit costs, and lower carbon emissions. Among the 8 737 MAX received in the quarter, three aircraft are under finance leases. We anticipate that in the coming years, around 50%-60% of new aircraft received will be under finance leases. Despite the increase in our leverage, partially as a result of the acceleration in the fleet transition, we are optimistic that the improvement in EBITDA generated by this initiative will lead us to a net debt to EBITDA ratio of around 8x by the end of 2022. I now return the floor to Kakinoff. Thank you, Richard. I want to close by acknowledging the commitment and dedication of our collaborators, the team of Eagles. They are the ones who put us in a solid position to continue to expand operation in a sustainable way. Our goal is emerging stronger and more resilient as demand normalizes. We are even more confident now with the solid recovery of the corporate segment in March. Operator, you may initiate the Q&A session. Thank you. The conference call is now open for questions. If you have a question, please press star then one on your touchtone phone at this or any time. If at any point your question is answered, you may remove yourself from the queue by pressing star and then two. We ask that when you ask your question, speak closely to the receiver of the device so that everyone can hear you clearly. Participants can also send questions via the webcast platform. You need to click the question mark in the upper left corner and type in your question. Please hold while we poll for questions. The first question comes from Dan McKenzie with Seaport Global. Please go ahead. Oh, hey, good morning, guys. Thanks. Focusing on cargo, BRL 1 billion over the next five years. A couple questions here. How is the logistics team, you know, just teaming with Mercado Livre, thinking about other growth opportunities from here? And then given the growth, you know, how should we, you know, what do you want us to know about this business? You know, how do we model 2023 growth margins versus the core airline? Anything you can share would be great. Hi, Dan. Good morning. Thank you very much for the question. Actually, this new business is giving to us another set of opportunities in such a relevant and profitable business, which is the cargo, air cargo transportation. You know, we are now assuming six cargo aircraft in our fleet, so they are all 737-800 BCFs converted directly by Boeing, supported by other lessors. Once we will bridge such type of aircraft exclusively to Mercado Livre, certainly we could consider to expand this kind of operation towards additional routes, being solely operated by us, serving different market segments. This is just to share with you one of the possibilities. At the moment, we are totally dedicated in delivering the best personal experience we can to Mercado Livre, which is our priority at the moment. Certainly this business alone will change dramatically the figures of our cargo unit. We have shared with you already this BRL 1 billion potential additional revenue along the next five years. Also we mentioned that this operation only could add up to 80% of our current cargo revenue. We are pretty excited here envisioning other opportunities, alternatives, but at the moment we are overly concentrated in Mercado Livre operations only. Certainly we will have another set of information being shared with you from the next earnings results conference on because now we have another business segment being operated by the company. For the moment, those are the information we would like to share. Okay. Second question here. GDP has been revised upwards in Brazil. You know, the revenue outlook for this year remains unchanged. I'm just wondering if you can speak to the pace of oil recapture throughout the quarter, where we're at today, and how Smiles is helping to drive improvement, I guess, to stabilize your yield versus 2019. Yeah, Dan, the best answer to this question is given by the first quarter results itself. Because, you know, we are still facing a pretty volatile market in Brazil. There are several uncertainties, you know, there are those, political, instabilities, in front of us. Even though we are Even so, we are producing superior results in comparison to everyone's expectation. This is driven by a set of different drivers. Certainly one of them is the Smiles performance. The company is in its best shape, breaking records and already offering to the whole structure, I mean, the GOL corporation, the benefits of this Smiles, not only those with the tax benefits, I mean, but mainly our capability to properly price the miles and the points in the market are much more directly correlated to our revenue management scheme, always in place here for GOL. We are making the most out of this extremely valuable asset developed by the group along the years. This Smiles is directly responsible, and it's one of the drivers, as I said, for the results we have delivered and also for this positive outlook we are sharing with you with regards to the market overall. The forward bookings curve is promising, and it does apply the same effect to this Smiles customers too. Yeah. Thanks, Kaki. I guess what I really meant to get at is just the pace of the corporate recovery since the larger corporate side. Dan, I'll talk with that. Can you hear me okay or no? Yeah. Yeah. It's a little bit faint, but I can hear. Yeah. Sorry about it. We're having trouble with the audio system that we're using for some reason. We have some. It's not very clear. Let me just maybe complement what Kakinoff said on a couple things. You know, where we are right now, we've been able to, you know, adjust our, you know, through our yield management, adjust our fare structure to deliver through the current level of oil prices, are pretty much since the beginning of March. One of the advantages we have here in Brazil a 35-day delay, you know, given how jet fuel was priced, you know, for example. The jet fuel price we're gonna have in May is based on the average price of a basket of international oil prices in April for the whole month, just the average and then the average currency. We can, you know, anticipate if we have the demand ability to do it. That's kind of getting to your question. Just let me give some historical context here on where we were coming from and, you know, why things were the way they were. You know, we only started to get a recovery of corporate demand right around the end of August of last year. It was coming off of a very timid base. It recovered, you know, maybe to kind of 60%, by the end of. 60% of 2019 by the end of December. We had our, you know, January, February, you know, VFR usual high season. During that same period, you know, since November of last year, we have been dealing with the combination of higher oil prices and a weak Brazilian currency. End of February, you know, February twenty-fourth to be exact, when one of the travel restrictions or just restrictions in general came off, you know, COVID-19 restrictions. That also stimulated, you know, the final pieces that we did not have back yet on large corporate demand to come back pretty quickly, right at the end of February, which also coincided with the beginning of the war. You know, February twenty-fourth, to be really exact. It was literally the same day almost. With the return of that final piece of, you know, the very large corporate demand for our business, you know, these are the very large Brazilian corporates, which our network is, you know, organized to serve. You know, since that moment in time, end of February, we were able to, you know, work through yield management and get the, you know, 100% recapture on what was happening with oil with a couple of nuances. You know, WTI at the end of the Q1 was, you know, 32% up versus the beginning, right, $75 versus $100. Seventy-six percent up over, you know, the same period in 2019, $57 versus $100. The exchange rate, the Brazilian currency, appreciated 15% from the beginning of the year to the end of the Q1 from 5.6 to 4.75. The effect on jet fuel for us from the beginning of the year to the end of March was a 15% increase, not these massive increases you're seeing affecting U.S. airlines. 40% that would affect April and May. 40%, not the 50, 70% you've been seeing in other countries that you look at. That's a much lower number to have to deal with on the fare side. Now the exchange rate appreciated 15%, which also favors other costs that we have denominated in dollar: maintenance, leasing, revenue systems in dollars. As you saw, you know, we have a yield increase in the Q1 of more than 30%. That's how we started the Q2 period, which is normally the down quarter. It's an abnormal situation from a different perspective that, you know, given the return of the corporate demand at the end of February, coinciding with the appreciation of the Brazilian real and these other factors, you know, we were able to not just recapture the variations, but also have an increase in margins. What Kakinoff was saying, and this is important because this affects GOL separately from what might be affecting the sector as a whole. You know, a year ago at the end of June, we reincorporated Smiles. Right around the end of the third quarter last year, we had you know reintegrated the yield management teams in the sense of the work together. You know, the teams were kept separate, but they're working together maximizing the profitability on the same inventory, which is produced out of the GOL factory, which is the seat inventory. At the end of June at the end of Q1, we're expecting to already have generated synergies which will equal 100% payback on what we paid for the Smiles stake. With more than half of these synergies coming from operations. Given that Smiles has, you know, low cost, you know, non-significant cost, all comes out of revenues in a yield. We've been able to also, you know, increase substantially the quality and the profitability of yield through what we've been able to do in terms of, you know, eliminating a lot of the problems we have in the inventory management when the companies were separate. That also goes in there because, you know, Smiles was an important increase or important driver in the increase in yields into Q1. As you saw in the release, you know, the GOL sales in Smiles were 100% higher in Q1 of this year versus the Q1 of last year. That's, you know, that's yield, and that comes out of the, you know, the integration of yield management processes, and that also could, you know, obviously a decline of Smiles results in Q4. All that is also in there, driving what you're seeing in terms of our, you know, our yields are rising and so on. Just to kind of complement what Kakinoff said, but and starting it off, 'cause you're gonna do a follow-up on your question now. Please go ahead. Oh, thanks, Rich. That's really helpful. Oil price is manageable. I guess just one last housecleaning question, given the volatility in oil, what's the spot jet rate you're paying at the pump? The fuel price? Just at the pump today. Just a housecleaning question. At the moment, sorry. We have the numbers. In reais, it's BRL 560 at this moment. Okay. Remembering that there is a 45 days delay in comparison to the international prices. At the moment we are filling our aircraft with the prices compared to international quotation of 45 days ago. Understood. I hear you loud and clear, Rich, on the recapture here. Good job. Yeah. Just on that, we have the number for the Q1, you know, our price for the Q1. We also have in our very detailed guidance, you have our assumptions for the full year, right? You know, that's really what matters in terms of guiding guys. I mean, thanks a lot. Okay. Next question please. Understood. The next question comes from Mike Linenberg with Deutsche Bank. Please go ahead. Oh, hey. Good morning, everyone. Nice job. Nice to see the recovery really starting to take hold. The American codeshare, which, you know, as you said, Paulo Kakinoff and Richard Lark, I guess, you know, effective just about a week or two ago. Couple things. What's the potential revenue pickup? Like, what are you assuming maybe in year one? As sort of a part two to that question, do you plan to seek antitrust immunity with the regulators to offer maybe a more comprehensive type arrangement and maybe on par with some of the other agreements in the region? Good morning. Actually, we do not have any new requests to be submitted to the antitrust authorities, considering the network we have designed, which is pretty much comprehensive. I would say mainly with regards to the North American market and the whole American Airlines network. What's important to highlight is the current market performance on those routes to the U.S. market share in comparison to the overall demand. We know that the international routes and international markets didn't recover as fast as the domestic in Brazil, of course, pandemic period. This is something to be changed in the near future. We are now also perceiving a higher demand and a higher forward bookings for the international routes. Even considering this, the market size is smaller than we had pre-pandemic for the international travelers. The partnership between GOL and American Airlines is already today two times bigger than we had with our previous partner. It demonstrates how much stronger is the American Airlines network brand and the customer willingness to fly with American Airlines in Brazil and in the region. At this moment, we are experiencing a higher than expected demand in comparison to the overall market, and this has been produced basically by the attractiveness deployed in this partnership, GOL and American Airlines. For the moment, this is what we have to share. We have already the antitrust approval for the network we have deployed today and the one which is supporting the forward bookings until the end of this year. Paulo Kakinoff, when you say times bigger than your, you know, next biggest partner, are you referring to like, say, a current partner like Air France-KLM, or are you talking about versus Delta, versus what you had with- Versus Delta. Exactly in comparison to our North American partner, our prior North American partner, Delta. Oh. This is explained by the network size, by the capacity deployed by American Airlines in the region. It's a much bigger company for the South American markets and mainly in Brazil. You know, just to give you another reference on that subject, the American Airlines credit card in Brazil has the second-largest customers platform right after the United States. The brand is really powerful here, and the company is in customers top of mindshare. Therefore we can say that we are just in the beginning of this of capturing the high value of this partnership. We are unleashing the huge potential right now, and more to come. Okay. That's great, Paulo Kakinoff. Thanks. Then turning to the slides, page four, where you break out your corporate and kudos to the team. We haven't seen anything like this from any other carrier. You guys have been very transparent with corporate. To break it down into, I don't know, it looks like 10 different groups, this is fantastic data. You can see that big. It's almost as if somebody turned on a light switch back in February with corporate. I see there's a line there for corporate and there's a line there for consolidator, which is green, but there's three other lines there. What are those lines? Are they leisure? Are they VFR? Is it cargo? What? Can you? I'm just curious. Yeah, you're right. We have the other subsegments, mainly leisure. Okay. Those lines. This is just to show you the contrast between the recovery speed of those two different segments. We have been positively surprised by the large corporate demand overcoming the most optimistic forecast we have shared before. You know, GOL all along the pandemic kept its optimism related to how strong would be the corporate demand recovery. Also in contrast with some of the most pessimistic prophecies shared by some, especially saying that the big companies wouldn't return to their pre-pandemic travel habits. We never bought it as it was presented even considering that some structural changes were done. They did. I mean- Mm-hmm. We see less and less passengers taking the plane for a one-day meeting only and flying back overnight. At the same time, there are much more companies willing to visit customers in person or combine their business trips with leisure. Even starting from our own point of view, which was always very optimistic, we are fortunately being surprised by a much stronger demand at this moment. This is what we have tried to demonstrate in this chart such as this slide by making year-over-year comparison on how much faster has been the corporate demand recovery in comparison to the leisure, which is, by the way, also pretty strong. Okay. That's super helpful. If I can just squeeze in last one, just on the slide, page 5, and shows you how closely I look at these. You talk about markets that you've reopened, and you highlight some of the international markets, and you have Orlando there, which I know you're going back into, but you have instead of Orlando city code, you have Miami city code. I'm not sure if that's a slip up or not, but I would think that with the American agreement, when I think about secondary Brazil to help out the American hub, GOL would be with the right cost structure and the right airplane size flying, say, a 737-8 MAX from, say, Belém or Recife or Salvador, Manaus to Miami. That would make sense. That would make a lot of sense. I don't know if that was unintentional or not, but maybe it's, you know, giving us a look into your future plans. No, Mike. I would like to just repeat that, you know, Miami was always part of our MAX operation. You know, even, you know, pre-pandemic we were doing flights from Northeast Brazil and Central Brazil to Miami. That's always been part of the strategy, even prior to our exclusive codeshare with American. Now with the exclusive codeshare with American's, you know, dominant market share in Miami, you know, there is a significant narrow-body operation that, you know, we can develop in partnership with American out of Miami, with American, you know, focused on the wide-body for the longer distances, you know, in the southeast of Brazil and southern Brazil, that we can contemplate. Yeah, Mike, I mean, the maximum information I can share at the moment is that we are taking careful notes of your very interesting suggestions. You can imagine that we do envision several interesting possibilities and opportunities, coming out of our partnership with American Airlines. You're right, 77 MAX, it's a fantastic machine. We are really not only excited, but we are more than satisfied with the tour bookings coming out of the bigger flights to Florida. Mm-hmm. Those are about to be resumed this month. I think that there is a good potential for additional routes and markets that are supposedly about to come. Okay? Very good response, gentlemen, and a nice quarter again. Thank you. Thank you. Thanks, Mike. The next question comes from Savanthi Syth with Raymond James. Please go ahead. Hey, thanks. Good morning. If I might ask the business recovery question a slightly different way. I was wondering if you could say, 'cause, the forward sales is super helpful, but I was kind of curious where your business revenue is today versus kinda this time in 2019 and generally in your 2022, revenue outlook, you know, what are you expecting that to recover to? Hi, Savi. The comparison figures could better explain the current market situation that we are in at the moment since comparing second quarters, 2019 and 2022. We are transporting a smaller number of business travelers than we were at that time, but producing a much higher revenue. This is related to those two effects I have previously mentioned. The type or the reason for the business travelers have changed slightly. They are no more just one-day trips, and they have been replaced by longer journeys and in a materially higher number of times those travelers are bringing their families along, so extending their business trips and producing what we have internally named the bleisure travel. That's therefore have higher yields, longer stays, their destinations and therefore producing higher revenues. Those are the main figures to compare. Just covering, Savi. Savi, Savi, just to cover. In terms of you estimating, you know, Q2 for us is gonna be a transition back to what you kind of more saw as our normal mix of traveling passengers pre-pandemic. By the second half, that's what's likely in our full year guidance would be, you know, approaching, you know, kind of the mix that we had with, you know, kind of pre-pandemic, which would be, you know, roughly, you know, 70% of our inventory being formed by, you know, for business purposes, 30% being for leisure. Within that mix, in terms of overall about, you know, 30% coming from the high-yielding large corporates. That'll probably be, you know, it'll be end of June, July that we achieve that pre-pandemic mix. Q2 is still a little, still a bit of a transition. That's super helpful. Thank you. Yeah. If I might, Savanthi, may I please? Sure. I'm sorry, Savanthi. I'd just like to add another item to this business traveler analysis that we have just shared. One thing that I really would like to highlight is our capability to adapt the network and the flight schedule to this new business travelers profile. I mean, we have identified this trend by the end of last year, and then we are now in the second quarter already offering a totally redesigned network in terms of, as I said, schedule and routes in order to cope with the new customer profile. That's one of the benefits, one of our main assets due to the growth business model. I mean, faster than expected, we can really adapt ourselves to the new market demand and profiles. Please go on. I didn't mean to interrupt you. No, no. That was a good point. I'm glad you interrupted. If I might just ask on the fleet plan, like the MAX deliveries outlined in this fleet plan are a little bit different than the kind of the MAX, I think the firm orders or the MAX deliveries in the 20-F. I was just kinda curious what the difference was, if you've kind of reworked the delivery schedule since then, or you're building in some conservatism on the MAX deliveries. No, actually. No, actually, they are not. Go ahead, Fabio. Thanks, Richard. Actually, they are not deviating that much from what we have shared and demonstrated previously. It happens because, you know, as previously mentioned, we have combined our own delivery schedules with some opportunistic movement whenever we find attractive offers in the market. We have somewhat blended our own order with other opportunities that we can take. By the end of the year, I think that we will be pretty close to the final figure we have already shared. It's more related to how we are building this year-end scenario related to the fleet than dramatically changing the numbers that we have already shared with you. Richard, I think that you would like to add. No, no. I was gonna say, Fabio, what you're saying there, yes, the order book is less than the total MAX because we're sourcing from the secondary market, the retail market, et cetera, you know, aircraft that were produced for other clients that we're bringing in addition to the MAX order book per se. You know, and that and part of the objective on that is to do a catch-up, you know, versus now it's almost four years we've had where we had the MAX grounding, then pandemic. You know, and then during the pandemic, we reduced our total order book, you know, to reduce risk. We're trying to do a big catch-up outside of our order book, you know, working in the market. Feel free to, if you find any extra MAXes out there, let us know. I suppose I'm looking at just the 2022 matches up with the 20-F, but like 2023, 2024, 2025, it looks like the 20-F had like 59, 79, 96. That's why I was kinda curious as to- Right. The 20-F seems to have a higher number. That was where the question came from. Okay. Yeah. I'll follow up with you offline on that and then. Sure. Sounds great. Just one last question on just the capacity restoration. As you kinda exit the year, where do you expect kinda domestic and international to be? Understanding that things can change, and you're being kind of very responsive to demand. Sorry, Savanthi. I'm not sure that I fully understood your question, but if I'm not wrong, you were asking when we will have the two different markets delivering pre-pandemic numbers with regards to the capacity, right? It's something along those. Where you expect to be at the end of the year versus 2019. Okay. in domestic versus international. The domestic will be definitely the same pre-pandemic level, even viable. International, I still believe is gonna be below 2019 levels. We might be surprised, but you know, the current volatility in the exchange rate and also the macroeconomic environment, combined with the different pace of COVID-19 restrictions relaxation in the different markets might postpone the international market recovery as we would like to have. The domestic definitely will be by the end of the year at the same level we were pre-pandemic. Thank you. Very much. The next question comes from Duane Pfennigwerth with Evercore ISI. Please go ahead. Hey, thanks. Firstly, nice job getting your results out more quickly. I wanted to commend you on that. Just a couple questions from me. I'm not gonna ask five or six to dazzle everybody with my Brazilian knowledge, but just a couple out of respect for the other people on the phone. Look, yields look great now, and I wonder if you could comment more broadly on supply demand. GOL has been very disciplined, not just in this crisis, but in past crises as well. You continue to be a share donor. By our rough math, you're gonna be down about 4% in domestic in the second quarter, the second calendar quarter. Azul is up nine points relative to 2019. Can you just comment broadly on how you see supply and demand, and at what point is GOL kind of no longer willing to be a share donor in Brazil domestic? Thank you very much for your question. That's, that gives me a very, I mean, highly valuable opportunity to once more emphasize how important capacity discipline in the market is. You have correctly mentioned that we had defended this concept already for many years, and hopefully you have seen that we have stuck to that concept in a very disciplined way. This is, from our perspective, more important than ever. Therefore, we have led the market in the first quarter, as you have already seen, in a quite comparable manner with the 2019 levels, we are clearly demonstrating to the market that we will not fly, I'd say. Let me find the right words. We will not fly just to produce market share. We don't care if it's gonna result in a market share result, if we will be able to continuously sustain and protect as much as we can, this huge recovery curve that we have been able to deliver. That's a very, very important message we would like to deliver here, because that's the basic, the fundamental pillar of our strategy and the way we have driven our business. The results are speaking for themselves. Another aspect related to the market share is that we have seen some of our, I mean, some competitors, not only in the domestic market but also international, offering a higher inventory than they usually fly. I wouldn't take for granted this market share gaps that you have mentioned based on the first quarter experience we do have. I still believe that the industry is and will continue to behave in a more rational way than we did before pandemic. That includes every player in the market as you have been able to observe. Independently of the inventory availability that we are seeing right now, I can tell you from the GOL's perspective that we will continue to protect and defend the proper balance between capacity and demand. Thank you for that extensive answer. Then just for my one follow-up, and a follow-up to some of Mike's earlier questioning. Just very simply, not this quarter or next quarter, but you can just remind us what the international strategy is? You know, what are the milestones that you're waiting for? Maybe it's sort of the US testing requirements to go away. You know, how are you thinking about international? How are you thinking about the US and how has that changed with the American partnership here? Thank you for taking the questions. My pleasure. Talking, you know, more broadly on our international network, you have probably seen that, on average, we are resuming one international destination per month since August last year. This gradual strategy to resume international flights is always also proving to be the most effective one, because we are facing a still meaningful volatility all over those markets with regards to the regulatory constraints. There are some countries ahead on COVID-19 restrictions relaxation. Some others are still more conservative. But we are producing very attractive RASKs on all of those routes already announced and in operation. The next one will be the North American market, flights from Brazil to Florida. Those operations are about to be resumed this month in May. We are now considering to keep this the same pace for all the next months. There are more international destinations to come, but we will keep our quite conservative strategy of only deploying new routes in case that we are sure that those routes will produce attractive RASKs. Otherwise, we would rather keep the planes out of operation. Thank you. Thank you very much. The next question comes from Stephen Trent with Citi. Please go ahead. Good morning, gentlemen, and thanks very much for taking my question. Most of mine have been answered, but just a quick question for you on the maintenance side. I haven't heard you guys mention GOL Aerotech for a while. Could you just maybe give me a little bit of color with respect to how you see, you know, potential third-party business developing with that? To what extent you're running any of your engine maintenance through GOL Aerotech? Thank you. Hi, Stephen. Thank you very much for the question. At this very moment, we are discussing and analyzing exactly those alternatives. One fact I'd like to share is that the demand for the MROs worldwide is pretty high at the moment. It does give us an interesting set of opportunities to GOL Aerotech itself in order to increase revenues serving other airlines, other companies, but also it does represent a real challenge considering our own fleet maintenance schedule. We are reviewing our strategies, the alternatives, in order to design the best allocation we can at the same time that we will take the highest possible number of customers being served by the GOL Aerotech structure. I think that we will be able to give you more precise information on this strategy, I mean, in a few weeks. Thanks so much, Paulo Kakinoff. Super quick, dumb question slash follow-up. You're still doing some of your engine maintenance through Atlanta, or is that kind of all phased out? Sorry, could you please repeat? I didn't understand what you said when you said we are. Yeah, Steve. We still have in our diversified engine overhaul portfolio of service providers stuff with Delta TechOps. Correct. Yes. Oh, that's perfect. Let me leave it there. Thanks again, guys. Thank you. As a reminder, if you would like to ask a question, please press star then one on your phone to enter the question queue. The next question comes from Alejandro Zamacona from Credit Suisse. Please go ahead. Hi, Paulo Kakinoff, Richard Lark. A couple of questions here. I'm wondering if you can share any thoughts on GOL's ability to do the pass-through of higher fuel prices to final customers. Any expectations for yields for the remaining year, also considering the potential recovery of the business segment that you have been discussing during the call? Thank you. Yeah. Yeah, no. As we were, I apologize because the audio is not the best today in the setup, and we haven't been able to correct it during the call. In one of the previous questions, we were kind of walking through what you call the pass-through, we call the recapture, which has, you know, depended on the travel events. When we had the strong recovery in the large corporates at the end of February, you know, we've been able to recapture 100% of the variation in fuel prices on our cost structure. We had been struggling to do that from November of last year until the end of February, when... November of last year is really when fuel increased, oil prices increased significantly for us because it was simultaneous with a very weak Brazilian real. The other phenomenon that's happened also this year, as you saw in the first quarter, was an appreciation of the Brazilian real by about 15%. That has compensated a large portion, not just of the increase in oil prices as our, you know, our jet fuel prices in Brazil are effectively priced in U.S. dollars, but also has helped us, has helped reduce the cost of other dollar-denominated expenses, you know, such as lease payments, maintenance costs and things like that. Yes, we entered the second quarter with a, you know, significantly higher level of yields. You know, as you saw on our first quarter results this morning, as we've been explaining on the call. I mean, on the second part of your question, could you just repeat it again, please? Yeah. If you expect a higher yield from the business recovery segment. Yeah. I think your question was just kind of a general one for it. I think, you know, Q2, we are at this yield level, that, you know, we kind of shared with you in the presentation today. We showed some interesting data on the corporate recovery, you know, and that graph that Mike was referring to, you know, the inflection was between week nine and week 11 of the year. We continue to operate at that level. As you know, the second half we expect to have normalization of demand. Second quarter is a transition. When I say normalization of demand, it's, you know, the normalized mix, you know, 70% business traveler with about 30% of the mix being in large corporates. The second half also represents, you know, majority of our revenues for the year. July is always a good month. You know, we do expect to have, you know, continued buoyancy, continued improvement, you know, in the yield environment. We've been super disciplined. There's been a lot of questions on capacity. I think the, you know, the discipline and the ability to have high-quality yields is directly correlated with discipline on capacity management. You know, we continue to do that. As Paulo Kakinoff was saying, we don't have as a target as directly focused on market share. We focus on other metrics. Yeah, during the pandemic, we were focused on, you know, cash management, not margin management, and also emerging from the pandemic with a unit cost lower than we came into the pandemic. We were able to achieve both of those, so now we're pivoting back to margin management, which will be focused on in the second half of the year. Our yield management will be an important component of that, as will continue to be capacity management. As Kakinoff was saying, you know, it was a question on market share, which tends to be kind of a U.S. market, you know, focused question. But we don't, that's not a metric for us. You know, we're focused on, This will pivot back to it in the second half of the year, you know, profitability management and balance sheet management. We've been the most disciplined on capacity in that respect, and that tends to result in less flight cancellations versus our competitors. You know, there was a data mentioned in one of the previous questions about, you know, somebody's forward inputs into the system. Those aren't necessarily what ends up being flown. There's been much less volatility in our inputted schedule and the actual schedule that we've flown versus our competitors who have put a higher number of flights in the system and then end up canceling a much higher number of flights. Be careful about using those to project results in the future in terms of yields. Obviously, that is a big determinant of capacity. We continue to be a leader in the most disciplined and most conservative on capacity. The reason why I'm saying all these points is that those all the factors that I mentioned will tend to support for us at GOL, you know, we expect a solid yield environment for the next couple of quarters. Okay, Richard. Thank you. Excuse me. This concludes today's question- and answer session. I would like to invite Mr. Kakinoff to proceed with his closing remarks. Please go ahead, sir. I just would like to thank you all very much, and Alicia very nicely. Thank you. This concludes the GOL Airlines conference call for today. Thank you very much for your participation, and have a nice day.