Good day everyone and welcome to GOL Airlines fourth 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 broadcasted live via webcast and may be accessed through the company website at www.GOL.com.br/ir and the 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 forward-looking statements are based on the beliefs and assumptions of the company's management and on information currently available to GOL. They involve risks and uncertainties given 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'll hand your call over to Mr. Celso Ferrer. Please go ahead. Hi everyone, and thank you all for your participation in this conference call. This morning we posted our Q4 2022 earnings release and a slide presentation on GOL's IR website. We will make some briefing comments and shoot straight through to your questions. I would like to start by highlighting our most important results of the period, which were made possible by the trust from our customers, investors, suppliers, partners, and especially from our Team of Eagles. GOL delivered strong performance in Q4, a quarter with similar supply to the pre-pandemic period. We achieved a new record for revenues of BRL 4.7 billion, and increased our recurring EBITDA to BRL 1.2 billion, the highest level since before the pandemic. Let me share how we got there. 2022 was characterized by the rebound of demand for air travel in all segments, and this peak in the fourth quarter. We served more than 200 markets and transported approximately 8 million passengers, 19% above fourth quarter last year. We operated more than 700 flights a day in December as post-holiday bookings and the recovery of business demand led to strong ticket sales. Our supply measure in ASKs grew by 29% during the quarter. In part, this is due to the resumption in corporate demand as workers return to the office and the strong and resilient demand of the leisure passenger. In line with this recovery, our flight frequencies increased by 26% when comparing to the fourth quarter 2021, and re-reactivated frequencies in corporate markets, predominantly in the downtown airports of Congonhas and Santos Dumont. At the same time, our aircraft utilization continued to improve, and we maintained a load factor around 80% during the quarter, reflecting our focus on improving our operation fleet productivity as we expand our network. We are still observing a rational pricing environment among industry players and the resumption of strong load factors, which in GOL's case, were followed by an incremental combined offer of seats and profitability. GOL has the lowest unit cost in the industry and plans to reduce it even further to generate a faster recovery of its operating margin and increase efficiency. In the fourth quarter, in order to partially offset the effects of the jet fuel price increase, our recurrent unit cost ex-fuel decreased by 17% when comparing to last year to $0.036. By acting assertively and managing capacity, controlling costs, and improving productivity, we maintain growth of our revenues and our operating results during this period, recording the highest quarterly revenue figures in the GOL's history, 62% and 24% above fourth quarter 2021 and fourth quarter 2019 figures respectively. It is also important to note the 25% growth in yield and 25% expansion in unit revenue, RASK. This yield is more than 45% higher than the pre-pandemic figures in the fourth quarter 2019. 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. We are highly committed to running an efficient operation. As our results show today, our productivity standards are getting better and better. By generating higher revenues and reducing costs, we are making significant progress on improving our balance sheet. By 2023, we expect that our ability to drive operational efficiencies will be our main competitive advantage. This will be critical in continuing to win the business of our customers and growing market share in the current economic scenario. Central to growing profitable market share is expanding our offer in both domestic and international markets. In the case of the former, we expand our presence in the regional markets during the quarter. The company has increased its offer to Rio de Janeiro by over 40% during the high season. In addition to achieving a record level of seats available at Congonhas Airport. In November, we announced the expansion of our operations in the Midwest, connecting capitals in the region on direct flights to the South and the Northeast regions during the high season. In the international markets, we have added more frequencies on the Brasília-Orlando route, and we have inaugurated new flights from Galeão Airport to Rio de Janeiro to Montevideo. We have also returned the cities of Córdoba and Rosario, which represents the return of 100% of pre-pandemic destinations in Argentina. I also want to highlight the beginning of our operations between Manaus and Miami, connecting the north of Brazil to the United States. We have significantly invest in the customer experience at every stage of the travel journey, from the continued refreshment of our fleet with next generation and far more fuel-efficient aircraft to technology investments that are providing our employees better tools and our customers a more seamless experience. This quarter, we took delivery of one new Boeing 737 MAX 8. E nding the year with 38 aircraft of this model, approximately 26% of our total fleet. Our goal is to achieve 50% of our fleet composed of the Boeing 737 MAX aircraft by 2025. The GOL brand was recognized as top of mind by Folha de São Paulo for the fifth time in a row. This recognizes our commitment to customers and strengths our presence in all segments. Turning to our loyalty program, the Smiles customer base reached approximately 21 million and revenues were BRL 1.1 billion in the quarter, almost 35% higher when comparing to fourth quarter 2021. The customer base at Clube Smiles has evolved continuously, demonstrating its potential in a scenario of increased volumes of GOL's operations. Synergies were generated from tax management and seat inventory, important levers that optimized GOL's working capital and liquidity. That we were projecting also next year in 2023. The actions we have taken in the recent years have put us in a position of strength and enable us to have a competitive position to extract maximum value creation for 2023. I now turn the floor over to Richard, who will present some other highlights. Richard. Just doing our call today from our hub in Brasilia, which is one of GOL's big hubs. It's also where we have direct flights on Maxes from Brasilia to Miami and Brasilia to Orlando. Just a point of curiosity that, you know, the flight we're doing on the Brasilia-Orlando flight is the longest flight done to date on a 737. I'm here in São Paulo at GOL's headquarters with Mario, who will be participating with us in the Q&A. GOL's detailed analysis for the quarter you have in the earnings release and the presentation that are made available on GOL's investor relations website and also on this webcast platform. Please access those. There's some additional information as well in the presentation. Revenue in the quarter was higher in the fourth quarter of 2022 was higher than any fourth in GOL's history. As Celso mentioned, the domestic and short-haul international markets continued to lead the way as GOL judiciously added back additional capacity into these markets and routes. The management of working capital together with the increase in accounts receivable and advanced sales of both tickets and miles, has enabled GOL to maintain and finance the pace of growth necessary, a very challenging market environment, and enabled operations in the high season with a reduction in unit costs, while at the same time maintaining fare levels. The transformation of the GOL fleet to the Boeing, which is in part guided by enhanced productivity and reduced unit costs. Yield and RASK in the quarter showed increases of 25% over the same period of 2021, reaching 48.2 and BRL 0.416 respectively. We increased average fares, demonstrating our experience in managing variations in both fuel prices as well as the exchange rate. GOL's recurring EBIT and EBITDA margins reached 15% and 25% respectively. Our recurring EBITDA totaled BRL 2.8 billion in the full year of 2022. As we plan to maintain these new levels of yields and unit costs, together with the resumption of capacity, back to pre-pandemic levels, we are maintaining our financial projections for 2023, which incorporate a more robust nominal EBITDA generation. In Q4 2022, we achieved approximately a 12% reduction in GOL's recurring CASK, excluding fuel measured in dollars compared to Q4 2021. We'll continue to be impacted by high oil prices that showed a range increase of around 7% compared to the fourth quarter of 2021, which along with higher costs associated with the oil supply chain in logistics and refining, you know, have represented an increase of approximately 44% in the average jet fuel price denominated in reais paid by GOL here in Brazil in the same period. 44% increase in GOL's average jet fuel price Q4 of 2022 compared to Q4 of 2021. As for cash flow, as for GOL's cash flow in the quarter, GOL had generated BRL 5.3 billion of operating inflows. This resulted in a positive operating cash flow of BRL 2 billion, excluding interest expense, despite the impact of higher jet fuel prices. In Q4 2022, we concluded the issuance of senior secured amortizing notes in the amount of $200 million, which allowed the extension of financial obligations with lessors, mainly due to leasing deferrals and it improved GOL's expected cash flow for 2023. These secured amortizing notes have a collateral of uncovered receivables and represented an average cost to capital to GOL of 4.3% per year, also added a new innovative initiative to the company's liability management toolbox. This was done even in the midst of a capital market environment, which was not conducive to new issuances. At the end of Q4, GOL's total liquidity had increased by 13% to a little over BRL 4 billion. In pro forma for the issuance of Senior Secured Notes due 2028, which was finalized on March 3 in Q1. Pro forma for that, GOL's total liquidity would have been BRL 6.2 billion. You have some more detail on that on page 18 of the presentation put on the website and the webcast platform. Leverage is measured by the ratio of net debt, using the 7 times annual lease payment convention and excluding the perps, divided by recurring LTM EBITDA, was 9.5 times on December 31, 2022. This was about 0.2 times lower than the leverage at the end of 2021. That includes the issuance of the $200 million of senior secured amortizing notes that happened in the Q4. A slight reduction in leverage, but a substantial reprofiling of the maturity profile. Excluding payments made during the fourth quarter for deferred lease obligations, the leverage ratio was around 9 times. If you calculate aircraft debt under the IFRS 16 convention, GOL's leverage was a little over 6 times at the end of 2022. In the first quarter of 2023, GOL completed one of the largest liability management and refinancing operations in the history of the company and the airline industry, through the issuance of $1.4 billion of Senior Secured Notes due 2028, in a private placement to Abra Group Limited, GOL's controlling shareholder. These notes bear a total interest rate of 18%, of which 4.5% is paid in cash, and 13.5% will be payment in kind, with that PIK feature giving substantial cash flow relief to GOL. These notes are guaranteed by the IP and brand of Smiles, GOL's market-leading loyalty program, and also a pari passu lien, on the IP brand and spare parts of GOL. This issuance included $451 million in cash for specific uses at GOL subject to certain conditions and approvals, and the contribution and retirement of approximately $1.1 billion in face value of GOL's outstanding bonds, which was comprised of 83% of the bonds maturing in 2025, 61% of the bonds maturing in 2026, and 10% of the perps. These bonds that were contributed and retired have been canceled, which represents a discount to par of $313 million for GOL. Pro forma for this transaction, the net debt of GOL will be reduced by over $100 million and will result in over $30 million of annual interest savings for GOL. As I said, you know, this transaction represented one of the largest completed liability management and comprehensive refinancing transactions in both the airline industry and in emerging markets. It also represents the tenth liability management or capital raising transaction that GOL has completed since the onset of the COVID-19 pandemic. You know, on page 14 of the presentation, you have a summary of that. GOL did three transactions in 202 5 in 2021. The senior amortizing notes in 2022 and the Senior Secured Notes due 2028 now in 2023. With that, we've completed all of our liability and capital management transactions as it relates to what we need to do during the pandemic. As a result of this liability management operation, GOL attained a series of important benefits in capital structure and a significant improvement in its credit profile by increasing the average maturity of its bonds from 2.5 to 4.4 years. The access of up to $451 million in cash resources and the significant reduction in annual interest payments with a cash pay rate reduction on GOL's bonds on average from 7%-8% per year to a level of approximately 4%. We'll continue to work on both debt reduction opportunities and investments in the business while continuing to meet appropriate target liquidity levels. Of course, you know, GOL's successful liability management during the pandemic positions us with the lowest short-term debt among our competitors. As we mentioned, we've updated our financial outlook for 2023, and we've also included our Q1 2023 projections, which take into account the increases in jet fuel prices and are also based on the preliminary results for the first few months of the current year. For the first quarter of 2023, we expect an EBITDA margin of 22% on net revenues of 4.8 billion BRL. Back over to you, Celso. Okay, thank you, Rich. Demand remains strong as passenger return to the skies while some supply constraints continue. As the industry leader with a proven strategy and strong execution track record, GOL is well-positioned to build on our momentum in 2023. We are confident in our ability to deliver significant improvement in earnings and free cash flow going forward. I would like to thank our Team of Eagles for their outstanding work in delivering these quarterly results and serving our customers during our very busy holiday travel season. They are the reason our brand and our customer loyal is at the top of the industry. I'm incredibly proud of our team for rebuilding the region's best-performing airline. Importantly, we are not just building back, we are continuing to improve and extend our competitive advantage. Operator, you may initiate the Q&A section. Thank you. The conference call is now open for questions. If you have a question, please press star and one on your touch tone phones at this or any time. If at any point your question has been answered, you may remove yourself from the queue by pressing star and two. We ask that when you ask your questions, please speak close 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 on the question mark in the upper left corner and type in your question. Please hold while we poll for questions. Our first question today comes from Michael Linenberg from Deutsche Bank. Please go ahead with your question. Yeah. Hey, hey, good morning, everybody, and congrats on getting this financing done, team. Quick just question here on the guidance for 2023. You know, you pulled down the capacity a little bit, and you sort of point to the supply chain issues, which I think, you know, everybody's dealing with that. You sort of there was another sort of part of the sentence that talks about in view of expectations of recovery and corporate demand, I'm just trying to interpret, is it that the recovery is more gradual or more moderate than maybe what you were anticipating, that's part of it? Just if you can clarify what is meant by that statement? Hi, Mike, this is Celso. Hey, hey Celso. Hey. As you just said, I mean, we are of course, facing supply issues, all over the chain, not only. Mm-hmm ... OEMs... OEMs but also in the whole supply chain. I mean, in terms of parts and maintenance. That's why we are reducing a little bit the guidance. It's a, it's a slight movement down. We are, we are also like you know us, we manage the capacity on a very detailed way. We in the first quarter of this year, for example, we are flying 33% less in February compared to January. We do this short-term adjustments based on the seasonality, but also what is happening on the industry as a whole. This is the best picture we have from now, and what we expect for the corporate, it's not related to the this capacity itself. Because the capacity for corporate, the main routes in the corporate market, we have just returned in the fourth quarter, especially from Congonhas and Santos Dumont. We rebuilt the strong network we have with the many frequencies between all the most important shuttles, and those will stay. We are following close how the corporate demand is coming. It's coming. Mm-hmm. in a pace that was slower than we thought. We are compensating this with other segments. Like I said, the leisure demand and also VFR. VFR is super strong in those routes, they are very resilient. We are managing a way that we are able to keep yields at this level, even though the corporate. When I say corporate, I'm talking about the large corporate because PMEs. Mm-hmm. other segments are already there. It's just large corporates that is still, like, growing in a slowly pace. I hope that now after Carnival, we are starting to see now beginning of March, we are starting to see a strong demand coming from corporate. Right. we are not assuming that we will stay for the whole year. We, you know us, I mean, we are taking this as a cautious approach. Okay, good. That's thanks. Just, I guess, Rich, when we look at, you know, this, the aggregate principal amount of the Senior Secured Notes due 2028 up to $1.4 billion. Presumably, where it is today is before you've incorporated the 13.5% PIK per annum. Is that the way to think about it? Or... No, no, Mike. It's the bond buyback portion was $1.1. Okay. The cash portion is the $450. Mm-hmm. That's roughly the, you know, this is the market value of the bonds. You know, there's some other components in there, you know, that were disclosed, OID and so on. That's at the beginning. Okay. the one. I think- It's gonna grow 13.5% per annum over the next five years. That's the way to think about it. That sort of 11 is the base. If it stays outstanding for five years, yeah. Yep. Yep, that's right. That's right. As we, I mean, that was designed to, I think, you know, the focus should be on the 4.5% cash pay, which is. Mm-hmm. not something that, GOL or frankly, any airline would have been able to achieve on its own. Mm-hmm. That gives GOL a lot of flexibility to conserve cash. That overall cost there is also, if you include the PIK component, is significantly lower than GOL would have been able to do on its own. It's important to mention that, ultimately, this will be a transformative convert. As you saw at the ESSN, the exchangeable, very similar to the structure that GOL did back in 2018 with its first exchangeable. We did not want to issue the exchangeable from GOL in a distressed state. you know, the using of the, of the debt mechanism, you know, at the beginning, you know, allows us to remove, you know, the distressed component from GOL's security prices and, you know, eliminate any concerns over the going concern issue. Okay. You know, allow the market to price in information about what the impacts are of this financing transaction before issuing an equity linked security. The ultimate destination on this will be, you know, it'll be transformed into an equity linked security, which, you know, we described in the public announcements. Mm-hmm. Yep. it's unlikely that the SSN, if you will, the notes, would be outstanding for the five years. Yep. shorter, life, and that ultimately will. The idea is that this will be an equity linked transaction. You know, the cash pay component will not change. Mm-hmm. When that's done at the appropriate time, when it's done, when all the dust settles on this and everything is stabilized and properly priced and trading in the market, you know, it's mandatory in Brazil that we offer preemptive rights to our PN shareholders, and of course, we historically have always offered that, including to the ADR shareholders. So everybody will have a bite at the apple when that rights offering happens at some point in the future. We don't know when exactly we'll do that. Would likely be in the near future. You know, all GOL shareholders would have the right to participate that. That's also a way of issuing equity at a premium to the market because, you know, if GOL were to just do a straight equity offering in its distressed state, where the market cap is and with the size of this capital raising, it would have had to come at a significant discount. Mm-hmm. to the existing market valuation. The way we're doing this in a sequenced and well-thought-about way, will allow, when the equity-linked offering happens, be done at a premium to a more correctly priced equity price. That's part of the reasons for the more complex structure that you guys all saw in the announcements. It's being done sequentially, so that it wouldn't, you know, it wouldn't have any negative impacts on an equity-linked issuance on, you know, the market perception of the company in a distressed state. We're, you know, we'll see where the market ends up on this. Yeah. how the market priced all these effects in, over the next couple of months. But- Yeah, no. Effectively, well, balance sheet and, you know, so all that stress should, you know, hopefully gradually come out, you know, going concern emphasis concerns will go away and the market will price in this initiative into ultimately what should be a, you know, a more proper price for the equity. How long it's gonna take, your guess is as good as mine. If that's a couple of weeks or a couple of months, but we'll see. No, we've seen some movement in asset prices, so that's a good thing. Just my last thing, Rich or Celso, we now have Abra and, you know, we have the foundation. For the holding company, we have a better sense of the structure. What about the potential upside? You know, when we think about, you know, in the past, Rich, you've talked about the IAG holding company structure, and there's a lot of goodness in that type of structure. When you think about, you know, cross-utilization and, you know, joint procurement and synergies and, you know, I think about, you know, if I fly BA, you know, I get preferential treatment on, say, Iberia or Aer Lingus and access to the clubs. When do we start rolling out that? I feel like that's an exciting part of the story, and it would be sort of the first of its kind in Latin America. Yeah, no. We, yes, there are a lot of synergies across the group's structure, starting with GOL and Avianca. Mm-hmm. Avianca will be rolled up under the platform company, you know, by the end of April. Mm-hmm. A lot of the groundwork on that has been laid where possible. You know, we already have all of the approvals we need to start working together and do that. I know a lot of people will potentially use IAG as an example, we have a lot of differences in how we're doing it. Mm-hmm. You know, here in the South America market. You know, what we've created effectively is a platform company that has its own reason for being that is gonna be doing a lot of work to generate a variety of different types of synergies from the members of the platform in terms of its focus on being an even lower cost, higher efficiency group, which is obviously the main tenet because, you know, we believe that low cost always wins. You know, all the members of the Abra platform have that in their business models. As you know, Avianca did transformation of its business model during its restructuring process. Mm-hmm. You know, is in the process of finalizing its full transformation to an LCC. Also delivering, you know, above market revenue growth, which is gonna be through, you know, better utilization of the, of the massive networks that we all have that can work together. It ultimately also gonna benefit, you know, customers with, you know, new city pairs. Mm-hmm. New ways to, you know, get benefits from the loyalty programs. You know, the combination of loyalty programs is one of the largest in the world. Mm-hmm. Then when you go into the overall fleet size, you know, we'll have significant scale across the board to do things. Obviously, that's something we'll spend, you know, more time as we have developments on that. Obviously, you know, the point today is to help people understand, you know, GOL's fourth quarter results and where we are. Yeah. No, no, I hear you. I hear you. -the GOL in the short term. Yeah. Great. Well, thanks. Thanks for the time. Thanks, Mike. Our next question comes from Stephen Trent from Citi. Please go ahead with your question. Thank you very much, operator. Good morning, guys. Appreciate the time. Just two quick things for me, if I may. I know that the Brazilian government is studying the idea of potentially making some adjustments in fuel taxation. If we cross that bridge, would you anticipate revisiting your fuel hedging strategy? Or do you think that's something that's, you know, gonna stay in place regardless of what happens? Thank you. Thanks for the question, Steve. As I said, I have Mario here with us on the call today. I'll think I'll hand it over to Mario to respond. Sorry, Steve. Can you just repeat your last point on question? Sorry. Yeah. No, no worries, Mario. You know, presuming that the Brazilian government does move forward with some kind of adjustment on fuel taxation, would that possibly lead GOL to revisit, you know, its long-term fuel hedging strategy? Yeah. You know, we First of all, what have been seen in terms of the last trend, in terms of the movements on the jet fuel, has been very correlated to the market, what's been happening so far. We have been trying to avoid to spend a lot of cash. And of course, we're reserving right now the cash to other priorities. But we have been so far active on the market to do some hedges, especially for the next months when we build some good protection. Also using some instruments that is correlated to the main supplier, that's Petrobras. There's a commercial hedge, we're using some fixed price instruments. At this point of time, we still don't potential impact that government can provide on that. We You know, the most effective tool that we're using in terms of natural hedge has been, our capacity management, using our instruments. There's nothing concrete in terms of the discussions with the government right now that's changing that fact right now. Yeah, Steve, no, we're not. I mean, GOL's hedging strategies for fuel FX is the same. I mean, we basically try to have something between 25 and 50%, 12 months out, and then beyond 12 months, kind of months 12 to 24, you know, we'll gradually build so that when we get, you know, into 12 months out, we're, you know, roughly 25% hedged. You know, we've obviously been strapped on cash, and so we've had to be creative with instruments that we've been using to wrap around that. Nothing the government is doing alters our the way we're doing hedges. We continue to be kind of... We've always generated a lot of valuable value by getting ahead of the curve and doing it that way as opposed to reacting. Hopefully that answers your question. Yeah. No, very helpful, guys. Thanks, Rich. Appreciate that. Just one more very quick one for me. I recall before the pandemic that GOL used to seasonally sublease some of its planes, you know, overseas, you know, Transavia or names like that, during Brazil's low season. You know, now that the world is kind of edged out of the pandemic, you know, do you anticipate maybe more potential operations like that, you know, going forward? Hi, Steve. This is Celso. Hey, Celso. That's a good question, and it was kind of a part of our business model pre-pandemic. As I said to Mike, we have been managing capacity, and Brazil became a very highly seasonality market. I mean, if you compare the traffic like that we had in December and even in January now to the low season, we should be managing the fleet in that way. As a synergy of Abra, one thing that we may do in the future is the sublease. Until then, we, of course, we have the same partners, KLM and Transavia. I mean, they are really close to us, and we are, I mean, starting to continue this type of operation as soon as possible. If not this summer, probably next one. Oh, okay. Very clear, Celso. Thanks very much. Our next question comes from Savi Syth from Raymond James. Please go ahead with your question. Good morning, everyone. Just on the capacity, could you talk a little bit about how you see that capacity kinda growth between domestic versus international, given, you know, you did open back up some international markets as well recently? Hi, Savi. Hi, Celso. We are gonna... I mean, on the domestic side, we are just growing to this slightly above to the levels we had pre-pandemic. If you look at the fourth quarter, we are still below. As we go through this year, we are ramping up the capacity in the domestic market very cautiously to maintain the unit revenues that became very crucial for us. International markets, both most of the growth was already implemented at this point. By the end of the year, like I said, we launched the more frequencies to Orlando, more destinations from Brazil to Miami. What we are gonna see, it's the full year effect of the international markets that we just resumed. It's gonna be a significant growth in international. Some markets we have already operated before pandemic, we are approaching very cautiously to understand what will be the best time to restart. Those markets like Santiago, Lima, we normally fly as utilization flights. Like we fly red-eyes, so we may open during the year as we see those markets becoming healthier. That makes sense. That's helpful. Thank you. If I might, on the ticket tax, like, is there an assumption? Does the guidance reflect kind of the ticket tax break? Does that assume any kind of continuation here? No, Savi. No, Savi. We are not assuming nothing from the tax, and also we are not assuming anything on the fuel pricing. Okay. That's pretty upside. Perfect. All right. Thank you very much. It's gonna be an upside, yeah. Perfect. Thank you. Let me just insert. Operator, let me just insert. Okay, because we have questions from the platform that people submit on the platform. Let me just weave one or two of them in before we go back to the queue on the people that are on live. We have a question here from Chris Reddy of Talent, which asks, "Can you provide how forward bookings are looking? talk about VFR and corporate passenger traffic and fares." Celso? Yeah. Bookings are performing very well at the beginning of this year, like better than what we had in the fourth quarter as corporate is growing. We have now achieved more than 100% of the revenues on that we used to have on the corporate segment, but not the same in number of passenger. We are still around 70-75%, depending on the month, depending on the week, on the 70-75% level of, in numbers of passengers in the corporate segment. As we grow those passengers, the yields, there is a room to improve the yields as those passengers, they book on a short APs. VFR demand and leisure demand stay very resilient. That was kind of uncertainty during the pandemic. Those segments were the most important one, and the good news is that those segments stay. Even in flights, like in the shuttles that we used to have, less leisure or less VFR, we have now a significant portion of those flights with health fares. It's, it's a legacy from the pandemic that will stay. The combination of this legacy with the rebound on the corporate, it's gonna be very healthy. We are not assuming the whole upside. We are taking a cautiously step when we announce our guidance here, which is assuming. Okay. another quick question, that we got on the platform. I'll just read it here, and I think I'll send it to Mario to answer. Despite a reduction in capacity growth, non-fuel CASK guidance of $0.036 is retained for 2023. The question is, has GOL found savings to compensate the capacity decline, or is there another factor preventing CASK guidance rising with lower capacity? Yeah. Thank you. This is a very good question because it speaks how we're managing this company in terms of cost perspective. Since 3Q 2022, the company already achieved that level, 3.6, and has been maintaining now around this, in this fourth quarter. Just coming down from high 4s in terms of CASK assuming as well in 2021 and low 4s in 2022. Not only related to potential capacity dilution as we preserve capacity, and in this year, in terms of our guidance, we are expecting to recover most of the CASKs that has been preserved since 2018. There's also some important drivers that has been leading to that cost reduction. There's three main items that are more important to highlight. The first is our discipline in terms of controlling the workforce. The number of the total employees where we are achieving with almost the same 2019 ASKs right now in the fourth quarter, but with a base. Just coming from almost 16,000 to 14,000 right now. We have been able to reduce the payroll cost and compensate more than the effect or the impact of the accumulated inflation that impact on the line. Second, as you know, we have been preparing to provide a better visibility to the market, especially in terms of the maintenance costs that is gonna be impacted through the fleet transformation. We recorded back in 2021 results, almost BRL 1.6 billion of provisions for maintenance that helped this maintenance lines to be outperforming now in the P&L. That can keep this line much more visible and below what has been the historic trend. Also, as we were, you know, still operating some of the aircraft that are still in the storage, and we are preserving that liquidity by not deciding to increase capacity or just focus on capacity. The third item is related to depreciation because since we are doing a lower capitalizing maintenance, that has been translated also into a lower depreciation. Those are the three main items that is, you know, the company is managing in order to keep that cash ex view in this. As we were, probably the only airline that was planning or is still preserving that capacity, and as long as, towards to the second half of the year, most of the capacity for 2023, we're gonna be expected to be linked to the high seasonality of the second half of the year. That can potentially represent, you know, a better efficiency and productivity in terms of our cost control. Okay, operator, you go back to the queue, please. Our next question comes from Pablo Monsivais from Barclays. Please go ahead with your question. Hi, guys. Thanks for taking my question. My question is a bit on the medium-term outlook for you. Since you have a pretty good cost advantage and yields are high, and we expect those yields to be high for next foreseeable future, how would you what's your game plan in a year from now? Do you think you're gonna be more aggressive in terms of capacity or pricing to take advantage of your, of high yields and low cost that you have to outcompete your peers domestically? What's on your thoughts on how to compete in the medium term? Thank you. Hi, Pablo. Thank you for your question. As you said, we have the cost competitive advantage, and that this is the reason why GOL became the most important low cost in the region, and this is what we want to resume. We want to preserve the revenue environment as much as we can, especially on the domestic market, which is still very volatile. We want to expand our growth through the international markets, especially next year and on. With the synergies we will have and with the extra range on the 737 MAX, we expect to grow next year more on the international routes with long sectors that will dilute even further our cost. We are... of course, we have potential to grow, we have more planes, we have the cost advantage, as you said. It's really important for us to keep the capacity discipline that we have been keeping since the beginning of the crisis in June, actually. We want to maintain and make sure that our domestic is gonna be growing as the market grow. We still see room for health growth in the Brazilian market, but we also want to explore even further the international markets. As you know, low costs always win. Perfect. Thank you very much. Our next question comes from Nick Frank from Jefferies. Please go ahead with your question. Hi, this is Nicholas Sobiancik from Jefferies. Thank you guys for the call. Congrats on the results and transformative liability management transaction. Just had two follow-ups. You know, there was one point that was not clear in Michael's question at the beginning. On the capital structure pro forma, the buyback was $1.1 billion. I think it's actually $1.077 billion of notional of 2024, 2025, 2026 and perps. The new SSNs is $1.4 billion today, right? It's not up to, it's just, you know, right now it's $1.4 billion of SSNs, which are wholly owned by Abra. Is that correct? I just wanted to confirm that point. That's correct. Yes. That's correct, yes. Okay. On the, you know, looking forward, right, for GOL, and I'm, you know, I'm sure we're all looking forward to ask questions and to get to know, you know, the Abra story. When we look at the remaining GOL bonds, you know, most of which are unsecured except for the 2026s, can you give us a little color how we should think about those? The stubs, kind of different options or how the company is thinking about addressing the remaining 2024, 2025 and eventually the 2026. In particular, I ask because of the springing maturity of the new 2028s. Just wanted to clarify there how we should think about those remaining, GOL bonds. Yeah. On the July 2024 maturity, which is... What is that? About 16 months from now. There's about $75 million left over. Of the mid-2025 maturity, now it's about $340 million or so left over. You know, that $40 million of 2024, 2025 maturities, you know, the $75 million that matures in July of 2024. Is that what you're worried about or maybe I don't understand the question? I mean, very much not worried about it because the amount is small and the liquidity position is significantly improved. Just mechanically, right? Because the understanding is that any repurchases today are capped at a certain price. I think it's $0.50. No, no. Sorry to interrupt. No. I think you're referring to the. I understand what you're saying, no, there's no. I mean, you know, GOL will just continue to pursue what it's done in the past. I mean, we've done bond buybacks. We've done, you know, different types of liability management operations. You know, GOL has a lot of different tools on its balance sheet in terms of capital markets insurance. Obviously, you have to have market access, which is not something that has been available to the company since the war started at the end of February last year. You know, but, you know, the company will just continue to manage, you know, around those maturities and, you know, with the available tools that it has. Perfect. That's great. I'm sure that will continue to be well received after the company has extended runway here. Sure. Okay. More liquidity. Let me just. Okay. Sorry. Yeah, you cut out there. Just said that that's great, and I'm sure those will continue to be well-received as the company has extended runway and bolstered liquidity. The last one was just on the equity. You know, listing of Abra versus, you know, potential delisting of GOL in the future. Kind of how should we think about that, for the perspective of the minority equity that is not owned by Abra? We're not... This is not the subject of this call, Nick. Okay? You know, we'll, you know, talk about that in the future. Let me just insert here. We only got a couple more minutes here. Let me just insert a couple of quick questions, make sure we get to everybody that asked on the webcast. Just a couple of quick questions here. One was how the secured amortizing notes that were issued to leasing companies at the end of last year will affect cash flow. A quick answer there. We mentioned that, you know, these notes have a very low cost of capital for GOL and also have a grace period of 12 months, which has a big impact on cash flows in 23. You know, GOL already had the lowest lease debt among competitors, and that transaction gave additional relief for GOL. Also, you know, the lessors that participated in that were secured by, you know, are secured by top-tier collateral. Another quick question, I'll just read the question. The fleet transformation program is being affected by the bottleneck at OEMs. Will these delays force the company to review its plan? We had previously planned to end last year with 44, I mean, December of 2022 with 44 B 737 MAX in the fleet. We finished with 38. Obviously, GOL is, you know, being affected by the OEM bottlenecks, which are not just affecting Boeing operators, they're also affecting Airbus operators. You know, that's mainly due to logistics problem with all the manufacturers that are delivering aircraft. That's why we, you know, we're forecasting a lower number of MAXes than previously for 2023, which would reach 53 by this December. We're still playing catch up, given the pandemic and given the MAX grounding, you know, going all the way back to 2019 and those, and those other issues that this year, we're playing catch up on that. You know, Boeing's been working very closely with us in order to mitigate this, and we're confident that our long-term partnership with them will continue to work, you know, as we work together as partners on that. / Just one final, just to make sure we fit them all in by the top of the hour here. I'll maybe extend for another couple minutes here. Just one last question, which I'll send to Mario, which is from Gabriel Rezende of Itaú BBA. He says, you mentioned about increasing corporate traffic. Actually, maybe I'll send this to Celso. What's the main explanation on yield expansion quarter-over-quarter? How is corporate traffic comparing with pre-COVID-19 levels? Regarding yields, do you see risk on achieving the additional yield increase implied by your guidance? How these yield increases should happen on 2023? Maybe I'll just chime in there before you speak, Celso. There's no yield increases in the guidance. What you guys have to do when you look at. You have to be careful with the year-over-year comparisons. We mentioned this in the last call we did when we had our, you know. We didn't change our 23 full year guidance. We just provided some Q1 numbers. We just reaffirmed it, if you will, and we provided that in our last call. We made a point to explain that when the war started at the end of February, there was a massive increase in oil prices in, you know, March, April. You know, we affected a significant shift in yields up in the second quarter. So you need to strip out the Q1 of 21, sorry, yeah, of 22 from your comparisons in the year-over-year. Otherwise, you'll, you won't be able to do the comparison. If you take the yield progression going forward, if you were gonna go Q2, Q3, Q4, and compare that to our... You know, look at the data that we provided in the releases and compare that to our 2023 guidance, stripping out the Q1 of last year, you'll see reductions. I mean, for example, I think if you take the 9-month comparison, last 9 months versus of last year versus this year, it's like an 8% reduction in yields. If you just look at the second half, it's around a 10% reduction. If we look at the, at the Q4 comparisons, it's like a 12% reduction. So that is not correct. Your question on do you see some risk in achieving the additional yield increase implied by your guidance? That's not a correct question. There's yield reductions in there, which are also necessary to stimulate demand. maybe I answered the question, Celso. Okay. We can skip that. Let me just check here real quick. Let me just make sure we got everybody's questions. Oh, I think we're able to get through everybody's questions. If there were any questions unanswered, please shoot us an email to the GOL IR department and we'll give you, we'll get back to you on that. We can wrap up-. We can wrap up the call. I don't know if you have any closing comments, Celso? Yeah. Thank you. Thank you all, and I hope you enjoyed today webcast. Like Richard said, our investor relations and communications team are available to speak with you as needed. Thank you. Thank you very much. Ladies and gentlemen, this concludes GOL Airlines conference call for today. Thank you very much for your participation, and have a nice day.