day and welcome to the GOL Airlines third quarter 2022 results conference call. This morning, the company made available its results. After GOL's presentation, we will initiate the Q&A session for analysts and investors 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 webcast may post their questions on the platform, and their questions will be either answered by the management during this call or by GOL's investor relations team after the conference is finished. As of now, participants are free to submit questions through the webcast platform. You just need to click on the question mark in the upper left corner and type in your question. Before proceeding, we emphasize that the forward-looking statements are based on beliefs and assumptions of the company's management and on information currently available to GOL. They involve risk and uncertainties, giving that they are related to future events and therefore depend on circumstances that may or may not occur. Investors and analysts should consider 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 would like to hand the call over to Mr. Celso Ferrer. Please begin, sir. Good morning, everyone, and thank you for your participation in this conference call. I would like to start by highlighting our most important results of the period, which were made possible by the trust we obtained from our customers, investors, suppliers, and especially from our team of Eagles. The third quarter was characterized by the impact of the highest jet fuel price per liter in the history of the aviation industry. This resulted from the combined effect of increases in oil prices and devaluation of the Brazilian reais. On the revenue side, we had a rational price environment among the industry players and the resumption of the strong load factors after the slowdown observed in the end of second quarter. By acting assertively and managing capacity and improving productivity, we maintain the growth of our revenues and our operating results during this period, recording the highest quarterly revenue figures in GOL's history, reaching BRL 4 billion in 3Q, 109% and 80% above 3Q21 and 3Q19 figures respectively. As we continued to see recovering demand, we subsequently resumed more flights and expand our network. We served more than 200 markets and transported 6.9 million passengers in the quarter, 39% above last year and still 29% below the volume of 3Q19. Our supply measured by ASK is grew by 41% year-over-year. In part, this is due to the resumption in corporate demand as workers return to the office, less restrictions in international market and strong VFR and leisure demand. It is also important to note the 51% growth in yield and 50.6% expansion in RASK. This yield is more than 42% higher than the pre-pandemic figures in Q3 2019. Our unit revenues grew 48%, followed by an increase in forward bookings by 58%. Once again, GOL's ability to efficiently meet the increasing demand stems from the company's key differentiator our strong and disciplined capacity management with a continuous focus on preserving profitability and liquidity. By 2023, we expect that our efficiency will be our main competitive advantage. This will be critical to winning the business of our customers and reduce our costs even further consolidating our cost advantage. In order to partially offset the effects of the jet fuel price increase, our recurring unit cost ex-fuel decreases by 24% when compared to 3Q21. When converted into US dollars, resulted in $0.036 or 4.5% lower than the same quarter in 2019, even considering a supply that was 23% lower than that period. The capacity was preserved over the first nine months of 2022 and will be added in a balanced way in fourth quarter, our highest season. This figure clearly demonstrates how GOL is resuming its productivity and efficiency and will further reduce the already lowest unit cost in the industry, its main competitive advantage, to generate a faster recovery of its operating margins and adapt the company to the best efficiency indicators by the beginning of 2023. Our load factors and aircraft utilization continued to improve, and flight frequency increased by 40% when compared to the fourth quarter last year. We expanded our presence in regional markets notably through the implementation of a flight distribution center in Bahia, which should reach 50 daily domestic flights by 2023. We will have connections abroad through our international partners and the launching of routes connecting Salvador to the main tourism destinations in the States. In the international markets, we're strengthening our operations from Brasília to Florida. We also launched two new routes to Miami that will be operated as of December from Manaus and Fortaleza. We also inaugurated our regular cargo network, which is operated with Boeing 737-800 freighter in partnership with Mercado Livre. We started with the routes between Guarulhos and Fortaleza, and we will extend the network to six new cities, Teresina, São Luís, João Pessoa, Recife, Brasília, and Porto Alegre. The partnership between GOL and Mercado Livre provides an increase in units revenue RASK and lower cost associated with aircraft return since the aircraft operated by GOL in regular passengers transport are converting to freighters and will generate approximately BRL 100 million potential incremental revenue for GOL Linhas. We maintain the pace of our program to accelerate the transformation of the fleet to a new, more efficient equipment aligned with the company cargo neutrality goals. This quarter, GOL took delivery of three new 737 MAX aircraft, and we returned two 737NGs. By the end of the year, we expect to have 44 737 MAX aircraft representing about 30% of the total fleet. Our goal is to have 50% of the total fleet composed by 737 MAX by 2025. Turning to our loyalty program, the Smiles customer base surpasses the 20 million mark, and revenues reach BRL 1.2 billion this quarter, 26% higher than the previous quarter and practically double when compared to third quarter 2019. The customer base at Club Smiles records consecutive increase demonstrating its potential while GOL expands its operations. Synergies were generated from tax management and seat inventory, important levers that optimize GOL's working capital and liquidity. We also recorded a year-over-year improvement of 5% points in our NPS, Net Promoter Score, alongside important advances to improve the customer experience and strengthening our presence in the high added value corporate segment. I now turn the floor over to Richard Lark, who will present some financial highlights. Perhaps you're muted, Mr. Lark. You are correct, yes. Apologize for that. Good morning, everyone. Thanks also. Our detailed financial analysis for the quarter was shared in the earnings release and in the presentation made available on the webcast platform as well as on the GOL IR website. I'll go through some of the highlights here, after which we'll turn over for a Q&A session. Our liquidity remained relatively stable at BRL 3.7 billion, with BRL 869 million of short-term debt at the end of the quarter. The management of our working capital, together with the increase in accounts receivable and the advanced sales of miles and advanced sales of tickets, has enabled us to maintain a pace of growth necessary to operate our high season with a greater dilution of unit costs, at the same time, with the maintenance of very healthy fare levels. As Celso mentioned, the transformation of the GOL fleet to the Boeing MAX has a fundamental role in our operating strategy, which is in part guided by increased and enhanced productivity and reduced unit costs. We estimate that in the next few years, about 50%-60% of the new aircraft delivered to GOL will be financed under a finance lease format. Our ASK and RPK in the quarter increased compared to the third quarter of 2021 and reached around 77% of 2019 pre-pandemic year levels. Yield and RASK showed increases of 51% and 48% respectively over the same period reaching $0.45 and $0.39 respectively. Our recurring EBIT and EBITDA margins reached 6.5% and 17.3% respectively and our EBITDA totaled BRL 1.7 billion in the first nine months of the year. We obtained an increase in the average fare sold demonstrating our ability and experience in managing variations in fuel prices and the foreign exchange rates. We achieved approximately 6% growth in ur recurring CASK measured in dollars compared to the third quarter of 2021. We continue to be impacted by higher oil prices, which increased in the range of 30% compared to the third quarter of 2021, and which drove consequently an increase of 91.3% in the Brazilian price of jet fuel over the same period. Regarding our cash flow, in the quarter we had BRL 4.8 billion of operational inflows, which although impacted by the fuel price increase, generated an operating cash flow of BRL 1.1 billion excluding interest expense. Company's successful liability management during the pandemic as we've highlighted to you throughout the pandemic has put us in a leading position with the lowest short-term debt ratios among our peers. We've updated our financial outlook for the year 2022 to take you through the end of the year, taking into account the increases in jet fuel and also the results of the first nine months of the year. Celso, back over to you. I would like to conclude by, again, thanking our team of Eagles as well as our customers, investors, and suppliers who continuously show confidence in the company's business model and management. For your support, we are convinced that we not only have the champion business model, but also that we are prepared to overcome the market challenge and continue to play a leading role in the recovery of the airline industry in the next phase of growth. Operator, you may initiate the Q&A session. Thank you. The conference is now open for questions. If you have a question. Please press star then one on your touch tone phone at this time or at any time. If at any point your question is answered, you may remove yourself from the queue by pressing the pound key or the hash key. We ask that you ask your questions. Please speak closely to the receiver of the device so that everyone can hear you clearly and participants can also send questions via the webcast platform. You need to click on the question mark in the upper left corner and type in your question. Please hold while we poll for questions. The first question will come from Daniel McKenzie with Seaport Global. Please go ahead. Oh, hey. Good morning, guys. Thanks. Congrats on the revenue generation this morning. You know, I'd like to put a finer point on them. On the slide this morning, I thought there were some interesting slides in there. Slides 11 and 12, profitability resumption, and underpinning that is better utilization. It looks like 11 hours today versus 12.6 in the third quarter of 2019. Can you get back to 2019 utilization levels, you know, say in the fourth quarter or the first quarter? You know, does that imply profitability? Or, you know, maybe what does the path back to full profitability look like? If I'm reading the guide correctly this morning, it looks like you might be expecting a small profit here in the fourth quarter. Hi, Daniel. Good morning. Thank you for your question. We have been managing capacity very carefully by adding more aircraft into our network as we also increase aircraft utilization. By the end of the fourth quarter, we will be flying at the levels we used to fly pre-pandemic in the utilization of the aircraft we are operating. We still have some things on the ground, and we consider this idle capacity, and we want to address this over the next months, next year. What we call the operating fleet will be flying at 12+ hours per day as we always did in GOL's history. We are bringing back the fleet and bringing back the utilization as we are confident that we are gonna be continue to improve also the unit revenue. We don't want to dilute unit revenue. So, we postpone our growth to the fourth quarter when we see strong demand from all the segments not only VFR leisure but also corporate demand for fourth quarter and first quarter next year. Also in international markets, where we fly longest stage length with the MAX. For example, to Florida and other cities here in South America. With that, we are gonna achieve even further CASK ex-fuel reductions, and we'll benefit by increasing our margins. Very good, Celso. Yeah, second question here, slides 15 and 16. You know, Richard, it looks to me like a liquidity roadmap as we think about 2023. You know, is the message this morning that there's enough cash coming in from say, advanced ticket sales, Smiles, you know, to bridge the working capital needs through next year? I guess I just wonder if you can elaborate a little bit more on that. You know, are there any operating outflows or, you know, that worry you over the coming six months, you know, whether it be. I don't know, CapEx maintenance, returns, you know, purchase deposits, anything like that? I'm just wondering if you can elaborate a little bit more on that. Oh, sure, Daniel. Yeah. No, the working capital management and the CapEx management is gonna continue to be the same as you've been seeing, not just throughout the pandemic, but pre-pandemic. You know, the way we describe it to you is matching assets and liabilities, matching inflows and outflows, and that will continue. A couple of points of difference in complementing a little bit what Celso responded to your first question. One of the key differences, you know, a lot of you guys kinda look at the comparisons of pre-pandemic 2019, but in our company at GOL. There's some significant structural differences that, you know, during the pandemic, we completed the taking of the minority interest of the loyalty program Smiles. That makes so there's a significant increase in the retention of earnings and cash flow that's generated by that business. If you were to kind of compare it on a 2019 basis down at the bottom line, you know, it's around BRL 500 million of additional cash flow. Or if you would kind of back that into an EBITDA margin equivalent. It's about, you know, 400-500 basis points on that. When you're comparing margins, you know, cash flow generation or EBITDA margins, profitability and cash flow today, where GOL is going forward to 2019, you need to account for that. So it's a much more robust EBITDA. The other component that I wanna highlight there that I think is often missed, especially when looking at a company like GOL. Which has very low fixed costs, is the operating leverage component. As we recover to high productivity, which for us, as you know, is 12 hours of aircraft utilization a day across the entire fleet, which we expect to get, you know, gradually evolve back to in the coming quarters, the benefit of the operating leverage really kicks in. When you combine that with the work that we've done on the yield management side of the equation to deal with the variations in oil prices, you know, it puts us in a good position to generate incremental, as you were saying, earnings, but more importantly, incremental cash flow. That's gradual. You know, we've taken a very conservative posture with respect to capacity management, as you know, keeping it at the low end of the possible to conserve cash. We continue to be in that mode, meaning for more conservative capacity as opposed to more for more cash conservation as opposed to more. When you translate into that liquidity, which is part of your question, you know, you've seen where the structural liquidity of GOL is kind of settled in to this number of, you know, BRL 3.6 billion-BRL 3.7 billion. Which is how we're gonna be, you know, continue to be managing the business going forward. If there's any adjustments we need to make, it's gonna be on the capacity side, in terms of how things are balancing out. For the next couple of quarters, I think you're gonna see more of the same in terms of working capital management. You know, we do need to reduce our days payable to something more sustainable. We got you know a very large amount of support during the pandemic across our entire value chain. If you sum it all together over the course of the roughly 30 months of the pandemic, you know, we generated about $3 billion of additional cash resources that came in from everything from the very top part of the balance sheet with suppliers all the way down to the very bottom part with shareholders across the board. We didn't get any significant you know government support like what you saw in the U.S. That 3 billion you know helped us get to where we've gotten now in the pandemic. Over the next couple of quarters you know we need to reduce days payable to something more sustainable. That will be matched when I say something more sustainable, you know, our normal, if you look at our pre-pandemic working capital management, you know, we were roughly 50 to 60 days receivable, 50 to 60 days payable. On the payable side, that needs to come down. On the receivable side, you know, as we continue recovering the corporate demand as well as overall recovery to pre-pandemic levels, that accounts receivable level will come up and, you know, those will match out. On the investment side on the CapEx side, as you know, we've been able to do a pretty good job of pretty much 100% financing all of our CapEx needs, the most important of which is MAX aircraft. You know, we have the appropriate mechanisms lined up to, you know, 100% finance any needs that we have on the new aircraft side of the equation. On the maintenance side of the equation, which continues to be a challenge, you know, we're calibrating the returns of the NGs with our ability to get financing for such. For example, the deal you saw, you guys saw recently, on the spare engines that we were acquiring that was a way effectively of financing, you know, keeping the NGs flying longer. Such that, we can also preserve cash as it relates to future returns of NGs of which, you know, the main cash outflow relates to the engine overhauls. We're gonna continue to match that. You know, definitionally, that's gonna have to be pretty close to 100% LTV on all the new assets coming in, which is gonna create long-term equity value with the new MAXes coming in. But we have to avoid, you know, short-term cash outflows. Just to kind of, you know, finalize. It, 'cause it's kind of part of your question, just given where the markets are right now, you know, the company really doesn't have a currency today for any new external capital raising. We're gonna have to continue levering heavily on our working capital management and our ability to finance the transition of the fleet from NGs to MAXes. Hopefully that gives you a little bit broader context of how we're gonna be managing the business going forward. Mm-hmm. Yeah, that's perfect. Thanks for the time, you guys. The next question will come from Savanthi Syth with Raymond James. Please go ahead. Hey, good morning. This is actually Matt on for Savanthi. Rich, I have a question about Abra. As we look forward to when that is approved. What are some of the key steps involved that GOL needs to do to implement the partnership in order to drive the value there? Is there anything that we should be mindful of, you know, in the next year or the timing of that? Maybe if you could. I'm not sure if I understand your question. Basically one. Today, the call is to focus on GOL and GOL earnings. I don't know if you want to rephrase your question. That's very fair. Basically, I'm looking at the, you know, when the partnership is put in place, are there any investments that GOL needs to make in-house or costs related to that, such as, you know, integrating systems. What that could entail, or are there things associated with aligning loyalty programs, et cetera? Something along those lines. Yeah, sorry. Sorry, I didn't catch your name. I got you work with Savanthi. Matt. Yeah. Matt, sorry. Yeah. If you want, you can call us up later and we can. I mean, this call is not about that today, so appreciate if you could, you know, stick to GOL. Okay, certainly. Maybe I'll switch over on the aircraft deliveries, if you could talk maybe about your comfort level there on just the timing with Boeing. We've heard some industry commentary that there are concerns about the order book, so maybe your thoughts there. I think in the last question, you said 100% financing was in place for all those deliveries upcoming in the new year. Did I misunderstand that? Yeah. I'll make a comment, and then Celso, you can comment on that. Obviously, Boeing, you know, continues to have production, which is much below the pre-pandemic levels. You know, we've been able to, for the most part, meet our targets on the transition from NG to MAXs. As we've described, we're still targeting to finish this year with 44 MAXs in the fleet. Of course, all this is within the context of what has happened over the last three or four years. Because, you know, if you take the, you know, the last three or four years, you know, from a capacity perspective, you know, we had some pretty significant impairment events on that plan. One was the grounding of the MAX, you know, globally, as well as our actions taken in Brazil. Second was the Avianca Brasil exit from the market, which put a lot of strains on capacity. Then in our particular case in GOL, was the pickle fork problem we had with the NGs, towards the end of 2019. All that was pre-pandemic, right? Sometimes, you know, all the focus tends to be on what's happening, or the world kinda as if the world began, you know, in March 2020. When the pandemic hit, obviously we had to pivot to a different type of management, where it probably became a little bit of an advantage, the situation that we entered the pandemic in, which was a fleet you know primarily you know almost you know we only had eight MAXs in the fleet at the time, all operating leases because we had monetized all of our owned NGs. That combined with the compensation agreement that we negotiated with Boeing and other things we were able to do became a huge asset for us kind of managing through the pandemic. As we've been highlighting the last couple of quarters, we've been accelerating and pivoting our transition to the MAX. Obviously, part of that will come off our order book with Boeing, and then another part will come from aircraft that are available in the white-tail market. We're having success. I mean, we're getting what we need, and we're also able to 100% finance that as we said. As you know, we've lined up obviously if it's a sale-leaseback, you know, there's 100% financing there with the upfront cash generated. We've, you know, since the end of 2021, lined up some other mechanisms to be able to do finance leases with pretty much the same economics, meaning a generation of upfront cash, you know, based on our purchase prices versus what we can finance. In fact, you know, you look at the mechanisms we've lined up to do finance leases, and we did four in the first quarter of this year, and we're gonna do another six over the next two quarters with the six MAXs that are coming in. You know, we have 100% LTVs in a finance lease format, which also generates the upfront cash that we need to pay for the engine overhauls to return the NGs. Having said, we have as you've seen, if you compare our, you know, consecutive revisions to the fleet plan over the last couple of years. We have, you know, consistently and gradually revised down the portion of the fleet for the next couple of years that will be a MAX. We are keeping the NGs. If you were to roll back all the way back to say, 2017, 2018, was our fleet plan with the MAX, you know, we would have had, you know, a little over 60 MAXs in the fleet at the end of this year, and we're targeting 44. All that, you know, roughly, you know, almost, you know, let's say, you know, 16 to 20 MAXs is the difference in the effect that happened because of those items that I mentioned over the last couple of years. Having said that has obviously been useful in the context of managing capacity to the low end, in the context of the pandemic and the increase, the massive increase in oil prices this year and those other things. That had turned out to be I think, a hidden asset for us. What you've seen on that is we've, you know, we've always been gradually revising down the forward delivery schedule of MAXs based on all these factors. Having said that, over the next couple of years, we do expect to catch up. Obviously, we're gonna do it on, you know, economics that make sense for us. It's, you know, important for maintaining the competitive cost advantage. Celso, I don't know if you wanna comment anything there. Oh, Rich, your answer was completed. I just want to highlight that we are receiving the aircrafts at a lower rate than we were expecting. The white tails, that means the aircrafts already produced, are being the main tool for us to have access to the capacity on the new technology we need. That's why we're gonna take another six until the end of the year now. This is, for us, was a way to accelerate really accelerate the fleet while other manufacturers and the whole aviation industry is facing hurdles in the deliveries of the planes. We are successfully reaching now the original fleet plan that we had even pre-grounding on the MAX. Okay. Very sorry, Richard. Celso, thank you. Thank you both very much. Very good. Yeah. Alberto, just before going to the next sell-side analyst on the call, as you know, we like to work in questions that we get from the platform in here, some of which come from the buy side. I'm just gonna work in two questions here now just to make sure we address those who have put in the questions on the platform and are waiting. The question here is, what do you think will be your indicators after GOL reach normalization by Q4 of 2022? Could you give us some trend indicators on how you expect will be the behavior on yields, CASK ex-fuel, and margins, and run rates for 2023? Well, I think the main headline for this quarter is that GOL converged its efficiency almost back to pre-pandemic levels. You know, at the 11 hours of utilization. We still need to squeeze another one hour a day out of the aircraft, and we expect to start, you know, I'd say be in the first quarter towards the end of the first quarter of 2023 with improved above this, you know, getting back to that full peak productivity. Yields going forward are expected to have a more flat behavior versus 2022. I think we've highlighted that they're at record levels, and fares are very high. Which have been necessary just to, you know, almost break even operationally given the level of oil prices. We, you know, we plan to invest in, you know, incremental additional capacity at lower fares to stimulate demand. Additionally, you know, we still have around 20% capacity lag versus 2019. As you've seen, you know, the revenues, you know, we've initially revised up our revenues run rate for this year with 20% lower capacity. When you combine both of those effects with the capacity coming up, plus the expected yield behavior, you know, yields you know, we expect at this point would be flat next year versus this year. On CASK ex-fuel, as you saw, in US dollars, when you convert it to US dollars, it's already lower than in the third quarter of 2019, and we expect to see further improvements as we get back to full productivity into Q1. You know, expect to see that better than the $3.6 that it is now. Expect to see that, you know, in the 3.5 range. There should be some further improvements on that. We also have implemented several fixed cost reduction initiatives. You know, as an example, you know, with the natural turnover that's happened in the business during the pandemic just the natural turnover in operations, you know, mainly in things like airports and other areas. You know, we will end 2022 with almost 2,000 employees less than our pre-pandemic goals. You know, our productivity has adjusted there. Now what I'm gonna add, there's another question here which I think is worth adding on to, 'cause it's a little bit like the question we got from the Raymond James person. Celso, I'll flip this to you, but the question is, regarding the MAX. Sorry, it just flipped off my screen here. Let me go back to the question. It just popped off here. Pressed the wrong button. One second. Apologize for that. It's basically, you know, the additional purchase order for the incremental 18 aircraft with Boeing. You know, what's the rationale behind that, and the financing of such. I think, Celso, you could complement. I'll say it's a little bit of a complement to the previous question. Okay, Rich. This transaction was a continuation of an acceleration program with Boeing that was already publicly disclosed in January this year. We now have completed the remaining six aircraft with Boeing. The 44 MAXes that we expect to have by the end of this year. Those are white tails with attractive price conditions. Those are all MAX eight aircraft, and we may finance those planes in the same credit lines that we disclosed in January this year. The additional 12 MAX 10, they are to be delivered between 2027 and 2030, and we want to secure those positions. The MAX 10 will be really really important for us to reduce even further our cost. We expect to have the first MAX 10 by 2025, and those incrementals will be to have the right number of MAX 10 in the fleet mix we designed for the company in five years from now. It will not change the short-term plans of the company. We are not changing the fleet plan. It's just execution of the plan as we go into this first delivery schedule. Like I said, we don't have the same availability of production that we used to have, so we are trying to find good deals, being very pragmatic on the aircraft we are bringing to the fleet with the right price and right financing, and this is what we're gonna do with the six additional MAX eight. Okay. I'm just gonna slide in one more question here from the platform, and then we can go back to the analysts in the queue. This next question here is, what is the plan to mitigate the volatility of oil prices? Are you planning to rebuild hedge protection for oil? What about FX? GOL utilizes instrument today, you know, this is, you know, probably a question that other people have as well. I mean, today, the position that GOL has with instruments. We have protection for 25% of the over the next 12 months exposure at around $85 a barrel. If oil gets over $100, the way we've designed the instrument, that goes to 50% protection. Obviously, we've been doing our hedging. As you know, we came into the pandemic very well hedged, and that created an asset for us. We had about BRL 1.5 billion of an asset that we used to help pay for a lot of the needs in 2020, but we helped monetize most of those hedge positions. Now, the last couple quarters, we have been gradually rebuilding. Today, what we have in terms of, we've been doing it in a way where we use minimum amounts of cash. Today, what we built basically gives us about 25% hedge for the next 12 months at around $85. The way it's designed, it would cover us. It would make us about 50% hedged if oil prices reach more than $100. Now, about, you know, anyway, that's basically, I think, the important point. You know, a big chunk of those positions are not exposed to mark-to-market. Then on the FX side, you know, we continue to do, you know, low levels of FX hedging. Just given the volatility, a lot of those hedges get done and come off and get monetized intra-quarter. And anytime we get, you know, some interesting gains, you know, there's the temptation to take those gains and use those for, you know, paying expenses and so on. With that, operator, we'll turn back over to the queue, please. Thank you. The next question will come from Alejandro Zamacona with Credit Suisse. Please go ahead. Thank you. Hi, Celso. Richard, thank you for taking my questions. Just a quick question on capital allocation. Do you have any plans to improve the balance sheet? I know this call is specifically for GOL, but I think that could be also interesting to have some information regarding Avianca's potential capital increase in GOL. If you have any color on that, I would be appreciative. No, no. On that point, I mean, if you know, if and when Abra wants to announce anything there, that would be made the case. You know, we pride ourselves on not providing NNPI to investors and so on and so forth. This would not be the appropriate format to do that, Alejandro. Please, if you could just please keep your questions on it and any questions you might have on helping you understand what we just disclosed in terms of the Q3. Also, as you know, like, we have a pretty detailed guidance through the end of this year. We're not talking specifically about guidance for 2023 yet. We're not, you know, we'll provide that at the appropriate time. But if you could focus your questions on that, I think that would be most productive. Yeah, sure. My second question is on expectations of full recovery. If you can comment, I know you mentioned some early expectations for 2023, but you can also mention in terms of capacity, what are you expecting, and also the latest trends on the corporate demand. Thank you. Hi. Hi, Alejandro. I will. I have received all the questions regarding the demand scenario as well. I try to answer your question, also addressing other points that came along the call here. I mean, demand is coming, but not at once. We are seeing demand improving quarter after quarter as domestic market is proving really to be resilient even in this high cost environment. In GOL, protected liquidity and designed growth to happen in a way that cash and value would be maximized to the company. Both of our main competitors really added capacity in the beginning of the year while we are waiting for the, let's say, more healthy season of the year to bring back the network. If you compare our growth for the fourth quarter will be around 11%, while they're gonna be almost flat comparing to third quarter. That is for the first time we're gonna see more rationality right now. The price environment is more rational, but we still see some inconsistency if we go to the, let's say, route level or the hub level. We can see that some competitors are adding a lot of capacity in Guarulhos, for example. Just as an example, that creates a kind of challenge for the price environment. Overall, we are really confident that all the capacity we are deploying right now, which is even less than what we had in 2019. being very careful, we are gonna be able to expand the RASK, the unit revenue and while growing fourth quarter. What do we want? We want to really start 2023 at the high level of unit revenue, but also at the high level of utilization and with the whole network and schedule already deployed. Of course, we're gonna navigate through the seasonality of next year, but we want to start 2023 by having the, let's say, the levels of productivity at least compared to the what we had in 2019. With that, we are gonna offer an even lower CASK ex-fuel and fuel because of the fleet renewal program. Perfect. Thank you very much, Celso. Thank you. The next question will come from Hillary Cacanando with Deutsche Bank. Please go ahead. Yes. Hi. Thanks for taking my question. So I think you have 25 MAX on order, and I was wondering if you have the option to shift to another MAX variant in the event that, you know, MAX 10s are not certified. You know, 'cause Boeing's out there saying that if they can't get the extension, then they'll just scrap the whole, you know, MAX seven and MAX 10 variants. I was just wondering if you have the flexibility to switch to the MAX eight or, you know, what your plans would be if you don't have that. Thank you. Hi. Good morning, Hillary. Hi. How are you? We have the flexibility. It's Celso speaking. We have flexibility to convert those MAX ten to other MAX aircraft. Even if one day Boeing launch a new middle of the market aircraft, we also have the rights to convert. We believe that the MAX ten will be certified. I mean, that's the assumption we have on our plan. Of course, we are protected by the contract if we need to convert those to eights or nine or whatever we need at the time. The MAX ten, our first MAX ten is scheduled to be delivered in 2025. We don't see major risks that it could change. Okay. That's great. That's great to hear. I just wanted to, you know, with the just the global economy kind of slowing with high interest rates and, you know, global inflation and things like that, are you seeing any pressure on pricing and what's your confidence level in terms of being able to keep your pricing where you know where you want them to be in the current environment? Yeah. Please speak. Yeah. I mean, since we are in a high-cost environment overall, Hillary, here, and we in Brazil, I mean, especially now in the H2 of the year. Mm-hmm. Inflation is getting lower. We also have deflation. Mm-hmm. In the next couple of months, which is good news. Yeah. Overall, we see for the industry a challenge ahead, basically on interest rates and also inflation. We think that the yields is gonna continue to be high. I mean, that's not only to offset the fuel costs but also FX and U.S. inflation. I don't know Richard, if you wanna add something. No. Okay, great. Thank you for your time. No, I was just gonna say, operator, I'm gonna insert a question from the platform, and then we can go back to the queue. The question here is. I think I'll send this one to you, Celso, to respond. Can you discuss the competitive landscape? Are you seeing disciplined capacity additions from competitors? How does your CASK compare to competition on similar routes and leg lengths? Okay, Rich. Like, what we are seeing from now on is more rationality in the market as competitors start to flat their capacity while comparing to what they did before. I mean, they grew the capacity in second quarter and third quarter, in our view, more than needed. Now I'm seeing that they are flattening their capacity to address fourth quarter demand and first quarter demand last year. Our view is that we're gonna be seeing a healthy environment on yields for at least the next six months. We are, of course, expanding the network now on the core of our network. What we did before, in the beginning of the year, we brought back the number of destinations we had. We concentrated the frequencies on the hubs. From now on, we are expanding frequencies to the high frequencies and business markets. In that sense, yields should continue to improve. Also, the yields we have sold for the next month are also much higher than before. We have our ATLs more than BRL 1.5 billion higher for the fourth quarter. Which means that we have been planning the revenue for the next quarter, and by already knowing that we would be facing a more even higher cost environment, but also a rational behavior from the competitors. We are focused on the CASK ex-fuel and the CASK advantage we have. Today, we have 10% advantage against one of the competitors and 30% advantage against the other competitors. We want to keep improving this gap. Okay, I'm gonna slide in, 'cause we're getting some good questions on the platform. I'm gonna do two more questions, and then we can flip back to the queue, 'cause I think we have about another 10 minutes here we can do. Next question is, how is jet fuel trending in Q4? The guidance implies higher jet fuel expense in Q4. Is that correct? Well, after the all-time record peak in July and August, 'cause again, remember, in Brazil, there's a lag between what you guys see with international oil prices and how that works its way into our costs in Brazil. You know, there's kind of upwards of almost a 45-day lag. Now, there was a big peak. You know, after the big peak in July and August, there was a 10% reduction in September, October, but there's gonna be a new increase in November, based on what's going on. Now, that obviously gives us a slight advantage if we need to take some actions in hedging. But the other phenomena that's very different from, for example, pre-pandemic numbers is what's been going on with the crack spread. You know, while WTI and Brent are more stable, the crack spread is significantly higher. Also there's the FX component, you know, because we pay for our jet fuel in Brazilian reais. The formula that comes through the monopoly provider, it's basically, you know, the average of what happened in the previous month in, you know, WTI, Brent, Jet A-1. Then there was the crack spread component and the FX component. You know, the FX has now gotten back to 5.3, 5.4. You know, I already talked about what we've been able to do in terms of forward hedging, which gives us a moderate degree of protection. That's what's reflected in the guidance, you know. Based on what we're seeing that's going on with international prices and, you know, we do expect there will be another increase in November. You know, based on what's going on with the prices here in October. One other question, excuse me. That I wanted to pull in here. The question is the following. I'll just read it. It says: We are heading into the travel season. Liquidity sources are something and something we're all watching in addition to bond maturities coming up. I guess he's referring to the next bond maturity, which is July of 2024. Can you talk a little bit about the travel season and how that will impact cash generation on liquidity? Maybe I'll flip that to you, Celso. Yeah. I mean, travel season is starting right now. I mean, the winter IATA season is our summer here. We are growing by 11% the capacity on fourth quarter compared to the third quarter. So that represents, of course, an additional seats to be sold. So it tends to be a working capital positive this period for us. That will continue until February next year, which we consider the high season in Brazil. We are during this period increasing utilization, focus the network to the main airports in Brazil, also launching new point-to-point routes to the most important leisure destinations here in opening up new destinations in international markets. Like I said, Miami and Fortaleza to Miami, and strengthening our partnership with American Airlines, which is now a key advantage for us on the U.S. market. Yes, I mean, we are entering into the best season for us now. Okay. Operator, we can go back to the. The next question will come from Pablo Monsivais. Please go ahead, sir. Hi, thanks for taking my question. I have just one simple question in your press release about the financial flexibility that you're securing with the new credit facility. You can provide a little bit of guidance on the size and the cost. That'll be very helpful. I guess that my previous question was already answered about the competitive environment for next year, but any further color would be appreciated. Thank you. Yeah. I think what you're talking about is the engine facility we announced, you know, for the nine spare engines that we're going to be acquiring direct from CFM. The flexibility there is what I mentioned before, is that that will allow us to keep some of our NGs flying longer and with avoiding the cash outflows that are required to do engine overhauls, which are very expensive. That's what we mean by the flexibility. It's basically, you know, and it's basically fully financed. Those new engines can be used in operations, which will allow us to also manage our capacity effectively through the high season. I've kind of been trying to, you know, obviously you have to look at how we're managing the company today reflects. I guess you could probably go all the way back to 2016 with the 2015, 2016, 2017, you know, where GDP contracted 6% over two years. Pre-pandemic, we had the MAX grounding, the Avianca Brasil bankruptcy, the pickle fork problem. All of which, you know, kept NGs, the NG portfolio and the engines, flying much longer than we expected. The company not able to start transitioning earlier to the MAXes, with the brand new engines and the maintenance holiday, all that. What you see in that is, and then the flexibility component is exactly that. It gives us operational flexibility, especially now through the high season, to keep NGs flying longer. It is fully financed. Celso, maybe you want to complement that, because I think it is an important point which might not be obvious for maybe if some of you guys haven't been following GOL fully over the last cycle or maybe less familiar with airlines, that might be helpful to give a little bit more information on that, Celso. Hi, Rich. Can you repeat the question, please? Yeah. His question was, what do you mean by flexibility with the. He's referring about the, you know, the new financing mechanism that we announced related to the spare engines. Yeah. that are coming in. So- That's right. Yeah. We are really focused on instruments to finance the CapEx of the company. We now have this financing of the engines, also the financing of the MAX. Now the focus is to finance the CapEx, especially engine overhauls, it's gonna be key for us to deliver the capacity of next year. We're pretty much focusing, I mean, the right level of investment and finance over the CapEx through financing mechanisms that is now available in the market with suppliers. We are confident that we will be able to finance most of the CapEx for next year. Right. Thank you very much. That was super useful. This concludes our question and answer. Just one second, operator. We'll conclude the call, but there was one additional question that came in that specifically asked us to answer the questions from Matt, which I think was the Raymond James analyst. I'll just repeat, you know, out of more a courtesy, you know, the information that's been provided on what Abra is doing has already been provided. There's no additional information. I was just trying to be polite when I said to Matt, if he wants, he could send us an email without those questions or call us, but he would get the same answer as I'm providing here. There's no additional information to be provided with respect to that. All the information that, you know, GOL provides as a public company is provided simultaneously to everyone. One of the reasons why we provide that super detailed guidance to all you guys, which is about 20 different metrics, is because it allows us to basically tell you how we're thinking and talk to you about numbers. You know, in theory, if we didn't provide that level of guidance. We wouldn't be able to have conversations with sell side and buy side about what GOL is doing. All the information that's available and that can be provided with respect to what Abra is doing has already been provided. There's no new information that is available to be provided. With that, operator, you can conclude the call. Yes, sir. This concludes today's question and answer session. I would like to invite Mr. Celso to proceed with any closing remarks. Please go ahead, sir. Thank you all, and I hope you enjoyed today's webcast. Our investor relations and communication teams are available to speak with you as needed. Thank you very much. This concludes GOL Airlines conference call for today. Thank you very much for your participation, and have a great day.