Welcome to GOL Linhas Aéreas conference call to discuss the third quarter 2023 results. This morning, the company released its results. After GOL's presentation, we'll begin the question and answer section, initially for analysts and investors, followed by the journalists present, at which time further instructions will be provided. This event is being broadcast via Zoom and can be accessed on the company's website in gol.com.br/ri. We inform you that all participants will only be listening to the event during the presentation, and then the participants will also be able to send their questions on the platform, and they will be answered by the management during this conference call or by GOL's investor relations team after the end of the conference call. From now on, participants are already free to submit questions through the Zoom platform. All you have to do is click on the Q&A button located in the bottom bar of your screen and type your question. Before proceeding, I would like to emphasize that the forward-looking statements are based on the beliefs and assumptions of the company's management and the current information available to the GOL. These statements may involve risks and uncertainties as they relate to future events and therefore depends on circumstances that may or may not occur. Investors, analysts, and journalists should take into account that events related to the macroeconomic environment, the segment, and other factors could cause results to differ materially from those expressed in the respective forward-looking statements. Now, I give the floor to Mr. Ferrer. Please, Mr. Ferrer, you may begin your conference. Good morning, everyone. Thank you for your availability today on our earnings call. This morning, we published our Q3 earnings release and a presentation on GOL's Investor Relations website. So we will just make a few brief comments here and get straight to your questions. The Q3 was another solid milestone to demonstrate that GOL's strategy and execution in adding profitable growth is generating consistent results as we expected. This has been achieved by the trust we have obtained from our customers, investors, suppliers, lessors, and in particular, our teams, who have done an impressive job and whose dedication has been the key factor that continues to drive us in this space of recovery. Between July and September, GOL transported more than 8 million passengers in more than 57,000 departures. This represents a year-over-year increase of 16% and 13%, respectively. We continue to launch and inaugurate new bases in the regional market, such as cities Uberaba in Minas Gerais and Araçatuba in São Paulo. In the international markets, we increased our ASK supply by 5%, meaning South American markets, compared to the Q3 of 2022. We continue on our disciplined path to profitable capacity recovery. As can be seen, the 2.4 percentage points increase in our load factor, while our craft utilization rate increased by 2% to 11.3 hours per day. Yield grew 4.5% in the period, while our PRASK is up by 7.6% and our RASK increased 10.7%. This demonstrates the potential we have been achieving through the initiatives to diversify other revenues with Smiles and GOLLOG businesses. The first, Smiles, which has a direct relationship with the perception of a better flight experience, expanded its customer base by more than 80% year-over-year and reached more than BRL 1 billion in revenue. Our GOLLOG cargo unit more than doubled its revenue, even with our organic capacity still constrained by this slower-paced supply of our passenger aircraft fleet. We have further expanded, expanded our partnership with Mercado Libre, which has already provided GOLLOG with a leadership in cargo volume shares in tons per kilometer. W e have been exploring new opportunities for cargo synergies between the dedicated fleet of freighters and the space in the cargo belly of the GOL's aircraft. In addition, this partnership has the option to expand up to 6 more incremental aircraft, reaching a fleet of up to 12 aircraft in the coming years. This quarter, we also maintain the growth pace of our tour operator, Smiles Viagens, launched last quarter, which at this moment, in addition to expanding its portfolio of products and partnerships, has also been expanding direct negotiations with hotels, which already add up to more than 800 distribution agents in the Brazilian and international segments. Combined, all the revenues represents a 65% year-over-year increase to BRL 413 million. For another consecutive quarter, we achieve a record revenues for a Q3 of BRL 4.7 billion, with an EBIT operating margin of 17.7%, an increase of more than 11 percentage points compared to the previous years, positioning GOL among the companies with the best operating performance in the sector. The attractiveness of our network and positioning in the, in the main markets of high traffic and demand for leisure and business segments has been the main differentiator for our revenue performance. As corporate demand picks up. The number of takeoffs has increased by 13%, with a reduction in the average stage length of 7.5%, and which has an impact on our cost. Our cas- cost, sorry, our CASK ex-fuel for passenger operation increased 4.9% comparing to 2023 2022, mainly due to return of four aircraft this quarter, and lower dilution of our fixed costs that are still impacted by a number of non-operating aircraft that remain temporarily in, in our fleet. Without the aircraft returns in the, in this quarter, our CASK ex-fuel would represent stability in the same comparison. Even so, we managed through our disciplined capacity management, to preserve profitability with yields that also increase in the same proportion, with higher occupancy rates, which grew 2.4 points compared to the previous year. While our AKs increased by 5.2% compared to last year, they are still 19.3% lower comparing to Q3 2019. In terms of operating fleet, we operated 108 aircraft in the Q3 2023, while in the Q3 2019, we had 115 operational aircraft, 7 more than this quarter. We are committed to increase the productivity of our fleet while we operate with temporarily low capacity, and to incur in higher costs for returning non-operating aircraft. We expect a transitory impact of our ex-fuel costs to levels higher than 2019 levels. We are focused on resuming capacity discipline. The right sizing of our fleet will allow GOL to deliver even higher levels of profitability, and to optimize its low-cost business model, supported by higher aircraft utilization. We believe this is an opportunity to upside in cost efficiencies that does not exist for our competitors, who are already pushing to the upper end of their historical fleet utilization. The industry has been impacted by uncertainties in the schedule of deliveries of new aircraft by manufacturers. In our case, of a total of 15 aircraft scheduled for the year of 2023, GOL has so far added only one new 737 MAX 8 aircraft to our passenger fleet. On another side, as part of our fleet renewal plan and recovery of our productivity and operation efficiency, we returned four 737 NG aircraft in this quarter, and seven since the beginning of the year. We will continue with the plan to replace NGs with MAX over the next few quarters. As part of the exclusive agreement with Mercado Libre for cargo transportation, we received the fifth 737-800 BCF aircraft this quarter. In the month of October, we received the sixth freighter aircraft, completing the commitment of six aircraft for the year 2023. We have invested in improving our digital channels, which have reached the highest level of self-services. As capacity increases, our fleet returns to 2019 levels. We believe that our dedication to cost efficiency and our team's commitment to provide the best customer experience, will reinforce GOL's already consolidated competitive position in the market. In terms of discipline and commitment to executed by the GOL team, we will continue on the right track with our plans to continue to be the benchmark for the lowest unit cost in the region. Excluding the effects of the freight, the freighted fleet, our total unit cost decreased by 9.5% comparing to last year. The consistent results we have presented in recent quarters are important for a recovery in our cash flow from operating activities, which reached BRL 0.9 billion in the quarter. Finally, we would also like to highlight that this October, we renew for another 10 years our exclusive commercial agreement with Air France-KLM, which represents the expansion of the codeshare that will provide better connectivity to more than 125 destinations in Europe and Brazil, and also in the future, new destinations through Latin America. This strengthening of the partnership also provides for the enhancement of joint sales and more benefits for customers of GOL's Smiles and Air France-KLM's Flying Blue loyalty programs. As well, an expansion of the Air France-KLM workshop, existing engine maintenance support for GOL's CFM56 and LEAP engines. We are sure that the sum of the initiatives we have taken to increase our productivity will be fundamental to take GOL to a new level in the coming months. I will now turn the floor to Mario, who will represent some other highlights. Thanks, Celso. I want first to start to thank our entire GOL team for this very incredible hard work and dedication during this quarter. They have been doing excellent and tireless work to improve our operational efficiency and our clients' experience, which has been reflected in the achievement of record net revenue in this Q3, and consistency of margins quarter-over-quarter, and even the EBIT and the EBITDA margins reaching a strong levels of 17.7% and 26.8% respectively. Our EBITDA for the quarter was BRL 1.25 billion, while our operating profit was BRL 825 million. Our yield and RASK also reached record levels, growing 4.5% and 10.7% respectively, to 47 and 43 cents of real. We reached BRL 5.4 billion in sales volume this quarter, demonstrating that future booking curves remain strong and with continuously high load factors. Our demand in the domestic market continues to grow consistently and resiliently. We had the best August ever, according to ANAC, with 8.2 million passengers supporting Brazil. In addition, business travel saw also 17.3% increase compared to the previous quarter, and continues to improve consistently as companies continue to show return to office initiatives. With a comprehensive and proven business strategy, together with the most qualified team in the industry, have created a healthy combination of capacity recovery and yield growth. Our total unit costs was decreased by approximately 8% year-over-year, helped by the decrease in the jet fuel prices during this quarter. We are committed to continue to deliver the best cost performance in the industry. We also, this quarter, we completed two major liability management transaction. The first one was related to the refinancing of BRL 1 billion debentures with the Brazilian local banks, which resulted in 30 months extension as the new term now is June 2026, and we have the support of those local debenture banks in allowing us to a better adjustment of the debt to GOL's current cash flow. The second was the completion of the conversion of $1.2 billion of SSNs, senior secured notes, into a convertible debt instrument, the ESSN, maturing in 2028, so no change in terms of the terms and conditions of the SSN. In the middle of this process, a total of 992 million of GOL's warrants has been subscribed and has been issued, which may be converted into shares in the future at an exercise price of 5.82 BRL per share, which would result in a pro forma view in a reduction of approximately 6 billion BRL in GOL's total indebtedness, the total leverage. Strengthening our balance sheet remains our top priority. Our fundamentals continue to improve as we reduce our leverage to 4x as of September 30 of this year, this third quarter, from 9.5x by the end of last year. So it's almost 5x reduction in terms of leverage, mainly impacted or contributed by the recovery in our EBITDA and the reduction of net debt in this period. To conclude my highlights, and in order to provide the usual transparency to our investors, we are updating our financial outlook for this year, 2023, reflecting the nine months results that has been already delivered, with a more challenging scenario for fuel costs for Q 2023, that practically offset the benefit generating throughout the second quarter of 2023, mostly. And also the impacts on capacity, derived from the current uncertainty in our fleet plan, that generate a lower dilution in our fixed costs, especially on the CASK ex-fuel impact for Q 2023. Now, I return the floor to Celso. Thank you, Mario. We will maintain our dedication to initiatives that promote a broader diversification of revenue sources and, above all, those that lead to improvements in productivity and efficiency. Our operation continues to build on the solid foundations we have established in the recent years, and our commitment to provide reliability, profitability, and strengthening our balance sheet. Our business model has proven to be robust, with a strong track record of execution and industry leadership. We are confident in our ability to deliver significant improvements, particularly in capturing upsides for reduction of our ex-fuel CASK. So to conclude, I would like to thank our Eagles team for the new record on our revenues, the higher margins and the excellent experience they provide daily to our customers. I'm extremely proud of this team's roles in rebuilding the best performing airline in the region. Their dedication is what continues to propel us to the top. Kerry, you can start the Q&A question. Thank you. The conference call is now open for questions, initially, only from analysts and investors. At the end of this stage, we'll open for questions from the journalists present. Therefore, if analysts or investors have a question, please click on the Raise Hand button located in the bottom bar of your Zoom screen now, or at any time after this announcement. If at any point your question has already been answered before your turn comes, press the lower hand key to get out of the queue. We ask that when you ask your question, speak close to the receiver of the device so that everyone can hear you clearly. Participants can also submit written questions throughout the platform, clicking on the Q&A button located in the bottom bar of your Zoom screen and then typing your question. Please wait while we receive the questions from investors and analysts. Our first question comes from Savanthi Syth from Raymond James. Please, Mr. Syth, your microphone is open. Thank you. Thank you, and good morning. Just on the utilization front, you know, given that there's so much opportunity there, I was wondering if you could talk a little bit more about, you know, the biggest impediments to getting that utilization back to 12 hours and, you know, your kind of visibility on how you get there. Hi, Savi. Good morning. It's Celso. Thank you for your question, and as you know, we are working hard to achieve, let's say, the numbers that we used to fly for 12 hours per day, and we are almost there with the existing fleet. We still have some planes, more planes that we normally have in maintenance lines. We used to have 4 maintenance lines, now we have up to 8, depending on the quarter. And so this is one of the hurdles we are facing. As well, we are now focused in this quarter, specifically the third quarter, is where we reduce the stage length. We concentrate a lot of the operation in the short haul to make sure we would be able to fly the customer, the corporate customers' traffic. A s we go to the Q4, we start to increase the red-eye flights, increase the stage length, and especially now with the changes in Santos Dumont to Galeão that we are anticipating, even though we need to change in January, but we are anticipating to November, December, we want to increase the utilization of those planes to for above 14 hours, which will drive our average to the 12 hours that you are mentioning. That makes sense, and that explains why the ASKs are increased, kind of unchanged there. If, if I might, just on your partnership with Air France-KLM, is there significant changes from the agreement that was there before? And, and, or tied to that, like, what happens to some of the partnerships that you had to Europe, such as with TAP? Does that kind of get excluded with the new partnership? No, we are not, we are not expanding any additional carve out of what we already have. I mean, what we have with Air France-KLM is very special. We have been building long-term projects together. It's not only a codeshare. We are working for them to develop new gateways in Brazil, also making sure that we provide more connectivity now in Rio. We are reinforcing this by growing the beyonds in Rio International. One of the main difference, it's not on the commercial passenger side, it's more on the MRO side, that we increase, let's say, our contract with them for the next next years to have more slots, and also give access to maintenance for our CFM56-7B engines and also the LEAP. I think that's a big change that we're coming in a good time for us. That's helpful. So, no kind of change to your other partnerships that are existing? Not. I appreciate it. Thank you. Our next question comes from Daniel McKenzie from Seaport Global. Please, Mr. Daniel, your microphone is open. Oh, hey, good morning. Thanks, guys. Can you hear... Hopefully, you can hear me okay. Just following up on Savi's question here. If we're just kind of to approach that from a different perspective, what percent of the CASK ex-fuel eventually goes away when the structural overhead that you're carrying today normalizes? So for example, the excess pilots versus what you can fly, the eight lines of maintenance that, you know, eventually would potentially get to four. And then if you could just clarify, you know, sort of a timeline for when you might think this could normalize. Is it sometime in 2024, or is it more realistic to assume that it's probably going to be closer to 2025 sometime? Hi, Dan. Good morning. Very good question, and as I was explaining here this morning, we expect to have a higher CASK ex-fuel temporarily, and to address, I mean, all the fleet constraints we have on the engine side, but also on the delivery side, and primarily on the delivery side. Like you saw, we took delivery of one MAX out of the 15, and we may take... Hello? Hi, Dan. Ah, okay. I think we had a problem with our connection. Ah! ... I can hear you now. Yeah, I can hear you now. Terrific. You can hear me now? So sorry, we had a problem with my connection here. And- So- So as I explained in my first comments here, we are gonna to face a temporary increase in our CASK ex-fuel for at least 12 months. So we expect to reach the level of productivities only by half of next year. We are, as you said, we have this drag of fixed cost, which is not related to crew, because in Brazil, we have a variable payment, and we have a good agreement with our crew, so we can fly more or fly a little bit less, not too much less like in the pandemic, but we can fly a little bit less with our crew, and we can accommodate this situation for, let's say, 6-9 months. We expect to have, let's say, the right ASK production with our existing fleet by third quarter next year, with the same levels of cost ex-fuel that we have in 2019. It's not only on the CASK that you see the inefficiencies, it's also on the lease payments. So if you look at the lease payments, we still have 20 aircraft on the ground. This is the biggest drag that we have at this moment. Yeah. Very good. And then let me, let me add one point as well. You know, because of that, you know, constraints related to capacity, if you look to what we have been doing, especially in order to recover the efficiency of our fleet, we are returning more, a higher number of aircraft in order to reduce that level of, let's say, aircraft that is currently not under operation. So, this number comes from something around 30-40 aircraft, since by the end of pandemic, and now is a number that is, you know, lower than 20, but we still, as mentioned, you know, we have some inefficiencies on the cash flow because we are paying some of the leases that is either not producing profit, right? So that is something that we are planning to be able to reduce, you know, until the end of next year. Potentially is not gonna be producing, let's say, all the revenue profitability already within the next year, but definitely is gonna be preparing the company for, you know, entering 2025, without any leakage on that. And, the constraint on the fleet as well is that, you know, we are probably gonna be impacted by temporarily unit cost is gonna be a little bit higher, given the, you know, the costs associated to return on the, on the aircraft. And at the same time, we are not extracting, you know, gains for potential new deliveries that we used to have, if we receive all the deliveries according to the original plan. So, basically, we have been very committed to drive the unit cost, the CASK ex-fuel, in U.S. dollars to a similar level to 2018. If you look to this quarter, you know, maybe it's about $0.005 of CASK ex-fuel that is deviated, mostly related to that capacity constraint. If you remember in the first guidance that we provided, we're expecting to increase much more towards 15%-20% of SK this year, and now we are reducing to maybe a low end of, you know, low double-digit area. So that's of course that impacts, you know, most of that cost because there's some limitation on what we can do in terms of reducing the fixed cost. And given the certainty, of course, this is structural overhead, it's something that's temporarily, but is that those... There's not a lot of room to reduce until we have a more clear view of what's gonna be happening in the future. And if you look to the baseline, the company is generating, you know, a healthy profit, a healthy EBITDA. So it means that for every aircraft that we're gonna be adding back to the operation, we're gonna be creating additional EBITDA, additional cash flow that can help, of course, the next coming year cash flow in order to address higher CapEx going forward. Mm. Yeah. Thank you for that answer. And just, you know, following up on that last point, Mario, you know, as we think about 2024, and as we think about some of these structural costs going away, what is the level of EBITDA next year that gets you to, say, free cash flow break even, just based on the CapEx that you're looking at? So I'm not asking for a forecast. I'm just trying to get a sense of the hurdle rate for generating cash next year. And then, you know, just kind of as a follow-on to that, you know, to what extent is GOL's loyalty program unencumbered currently? And could it be used as a source of refinancing future debt that comes due in 2025? Sure. For your first question, if you look this year, even with the EBITDA margin that we're providing, GOL is reaching a neutral cash flow for the ongoing operations, all right? So for the current obligation, we can cover not only all the necessary related to the P&L, but also the CapEx for the ongoing operation. Of course, one of the main challenges right now is how we can address the balance sheet issues, right? And also the CapEx that has been remained from the previous years. So, some of the engines that you need to cover also this lack of new aircraft, you know, that was gonna be supposed to be delivered, that's the impact on the cash flow. And the main problem, especially in this year, was not the level of what GOL can generate in terms of EBITDA, but also, you know, the lack of credit availability, especially during the first half of the year. That is something that we are working on in order to establish that credit capacity, especially for the CapEx, that has been one of the important sources that we have been able to, you know, create as financing support in the previous years. So, the point is that, you know, going forward, if you can consider that, you know, the recovery capacity can help the company in order to start to dilute fixed costs and also to drive the CASK ex-fuel going down. At the same time, the market is still very aligned in terms of the discipline of continue to keep yields and fares in a sustainable way. That's gonna be a natural expansion in terms of EBITDA. If you look prior to 2018, was you know, a number that's much closer to 28, 9%-10%, so we don't expect that that recovery is gonna be taking so fast. So maybe one percentage point you know, every single year is something that is reasonable if you think that we can add capacity in conjunction to huge preservation going forward. That definitely, you know, if we resolve that about 15-20 idle aircraft in our fleet and put that back on operation, producing that EBITDA level that it has been healthy, definitely this can add as additional source in order to handle the CapEx going forward. Mm-hmm. Yeah. If I had to squeeze one last quick one in here, the 15 MAXes that were planned for this year, the final expectation for 2023, if you could just remind us, and are those all gonna get bunched into 2024? Or are there additional discussions with Boeing at this point for either additional compensation or for a, you know, kind of a rephasing of the order book? Yeah. Hey, Dan, sorry, I was answering your question, and I had a connectivity problem. Oh. I was answering exactly this. Oh. We took delivery of one plane, and we expect to take delivery of at least additional four until the end of the year. That's what we are working really close to Boeing now to. It's like a kind of almost everyday call to make sure that we take this capacity, which is now a little bit to the right of what we are, we were expecting on the Q4. Mm-hmm. And our main discussion today is how can we, make sure that we, I mean, we catch up, as soon as possible next year, on the, on, on the deliveries? Because today, the MAX, the, the best case scenario today is to take 5 out of 15, so we need the extra 10, sooner than later at the beginning of the year. And this is what we are discussing with them. No answer yet. Mm. Okay, thanks for the time, you guys. Thank you. Our next question comes from João Frizo from Goldman Sachs. Please, Mr. João, your microphone is open. Yes, thanks. Good morning, everyone. Thank you for taking my questions. I have 2 from our side. The first one relates to the guidance you guys updated. So, we were just wondering if you could help us reconcile the downward revision in net revenue guidance. If you were to take into account your capacity guidance for the year in your new net, new net revenue guidance, this implies on a deterioration, quarter-over-quarter in RASK in 4Q. So I'm just trying to understand to what you, to what you attribute this, this worsening. And the second question is related to the, to the new exchangeable senior convertible notes. If you could just help us with the calculations, to the $3.9 billion you guys, recognizes as a derivative liability. Thank you very much. Those are my two questions. First is the debt portion, that's what is gonna be the fair value of the, the debt portion. T he second is, to value what is gonna be the implicit option, the embedded option, because this is a convertible instrument, that's gonna be split in a different line of the balance sheet. So, you see that in the loans and financings, you know, the original SSN now is recorded BRL 3.4 billion, so it's about $680 million. And, the separate component that's related to that derivatives is splitting in another line. So we are just following what is required in terms of accounting rule, because, this is kind of a convertible instrument. Of course, by the end of the material, the conversion or even in the material of this debt, the lender, the seller will continue to collect the same $1.2 billion. But the books tended to reflect the time value for this option feature. I f you add the two components in aggregate, you know, you're probably gonna take the same amount, and this fair value of the option will be valued each quarter. But that's already reflect kind of a derivative instrument that go against the equity. That's why it's not considered as a debt anymore. That answer your this last question for you? Yes, super clear. Okay. T he second was related to the guidance, right? So, if you look to what we did is specifically, everything was correlated to the fact that we reduced the number of operating fleet, and that was a result of that impact that we answered in the previous questions related to the lower number of MAX to be delivered. At the same time, we are still keeping, you know, the same rate of re-deliveries. That, that's one of the main efforts that we are implementing in order to reduce that gap between the total fleet and the operating fleet. So, the reduction in terms of new deliveries has been reducing the number of ASKs. Actually, the SKs didn't change, but because we were in the middle end of SK, now we're moving much more into low end. But you can see that in terms of seats and also departures, we were in the low end, and now we reduce that guidance related to seats. So we are considering less departures and of course that is being impacting a lower number of revenue. You mentioned about RASK. We expect that yields is gonna be more stable, but at the same time, RASK, that is related to the contribution from loyalty and also from cargo, especially cargo, because of the reduction in terms of the SKs. Or so the capacity on the body of the aircraft is also gonna be impacted. If you look to especially the revenue performance for this quarter, even though yields has been increased by 4.5% quarter year-over-year, the RASK increased about 11%, and has been mainly driven by the ancillary revenues, that potential impact in terms of capacity will be also lower, the contribution on the RASK coming from the revenues going forward. That's why you have a lower revenue, you know, implicit in the guidance. Thank you very much, you guys. Super clear. And just if I may, just a follow-up on the secured notes. If I'm not mistaken, you guys have not drawn everything you could draw, up from the $450 million in cash you could do. Could you just update us on how much have you guys already withdrawn with the SSN and how much is left? Thank you. Yeah. Until the second quarter was around $200 million that has been drawn. That's why we converted from the up to $1.4 billion of the SSN. We have been converting something about 1.2. In this quarter, we utilized it primarily for the, the CapEx essential activities like acquisition of spare parts, something additional $50 million, roughly. Super clear. Thanks very much, guys. Our next question comes from Victor Mizusaki, from Bradesco BBI. Please, Mr. Victor, your microphone is open. Hi, I have two questions here. The first one, you mentioned in the presentation that you have six options for cargo freighters for 2024. M y first question is, what will make you exercise these options? I mean, can we assume that maybe you can announce a big contract maybe in Q4 or next year to trigger these options? And the second one is related to the leasing contract. In the income statement, I think that you book like BRL 60 million of gains with leasing negotiations. Can you give additional details about this? Thank you. ... Hi, Victor. Good morning. So on the cargo options that we have, we are—the first commitment was the 6 aircrafts, and the number 6 is now arrived in October. And from the seventh to the twelfth, we go one by one. We don't need to go, like, to an additional 6. And this is what we are working close to Mercado Libre to understand the demand environment. And of course, they do their forecast. And we are working to make sure that until the end of this year, we have a clear picture, because we need to commit well in advance with those planes. So we are working with lessors, well, especially on our returns. If we can combine a lease return that we have on our existing passenger fleet to a conversion into cargo, that's, that's the best thing for us and for Mercado Libre, and this is what we did, by the way, in the 6 airplanes that we have. So we are discussing right now with the lessors those options to make sure that we can start receiving those planes by second quarter next year. We go one by one. I'm sure it's gonna be more than 6, but it's still early to say how many out of the 12 that we have. And on the second questions that you raised, the gains was related to sale-lease backs that we did on the engines and also in one of the MAXes that we received. We used to have finance leases on some engines that we turn into operating leases during the quarter. Great. Thank you. Our next question comes from Jay Singh from Citi. Please, Mr. Jay, your microphone is open. Hey, you guys have already answered one of my questions, but the other one I wanted to ask is: What sort of flow are you seeing from American Airlines? Okay, good morning, Jay. We are, I mean, constantly reviewing how can we improve the partnership with America. That has been very strong since we signed that deal, and we are happy that American has now increased the capacity to Brazil. So especially we have been feeding them a lot from Guarulhos, which is the main gateway, but we didn't have a great network so far in Rio International, and from this winter season and on, we are gonna provide, let's say, a sizable beyond points from Rio International, and I'm sure that we'll be contributing a lot to the American Airlines flights in Brazil. And they will probably stay with o-well, their flights for in the future. They have seasonal flights, and for now, and I'm sure they will, they will be seeing a lot of traffic going from GOL. We have with them the highest contribution that we already have with a partner in this corridor, which is more than 35% connectivity in most of their flights. So it's pretty strong. It's pretty strong also on the frequent flyer, in both frequent flyers. Our customers are now really understanding the partnership and flying with us, flying with them, AAdvantage miles. And so, we foresee that the flows will continue to increase during next year. That's super helpful. Thanks so much. Okay. Just before the operator, going back to the other sales analyst that wanted to have a question. We received some questions on the webcast platform, so I will handle some of those questions. So first one was coming from Matt, from one of our investors. Can you discuss the yield environment and the competitive landscape? So I would defer to Celso to respond to that one. Yeah, thank you, Mario. And I think all the industry now has some sort of hurrying to grow capacity, and no matter the fleet, in our case, we mentioned a lot of the constraints we have right now, and we are facing a very rational environment in terms of yielding, yield and how the industry is behaving. We expect the yields to stay at this level. We don't... Of course, it's not our goal to increase fares. We want to grow again, bring back planes back to the operation, be more productive with the fleet, and give people better access to better fares. That's what we want. But we see that, especially in the next quarters, a very stable environment in the yields and a very rational industry, and potentially for the first time in many, many years in Brazil, and not only in Brazil, but also in the region. As we are expanding international, we are also seeing healthy yields on the regional international flights that we do. Yeah, and, there's also another question from the webcast platform on... Can you give us some details about the fuel cost hedge, and what is the percentage of expected use that is hedged? So we generally have a more concentration of hedge during the short term. W e have for the next two quarters, for Q2 and Q1, something around 30%-40% hedge ratio. That of course, you know, hedge activities right now has been something, especially here for the Brazilian airlines, that is more costly. So, we are been focusing much more in terms of the cash usage to the CapEx and to return, you know, the essential investments. We have been trying to select most costless instruments that can create some protection for the company, especially in this kind of a very volatile environment, where we envision definitely for the Q4. That's one of the reasons why we capped the guidance for jet fuel per liter and change, even though we have some benefit during the second and the third quarter. We started to see you know the prices on jet fuel for the Q4, so beginning of Q4, now in October to start stay higher than what is the level they produced. So ultimately, that most of the benefits on the first, let's say six months prior to this quarter, is gonna be somehow compensated, offset by, you know, more upside risk on the oil price going forward. But we have this strong yield environment, very disciplined in terms of the competitors. That somehow, you know, creates a lower pressure to being so much hedged, but we are much more concentrated in the next six months. And there's also one question that came from Deutsche's analyst. He's putting here in the webcast and also getting back to sales as well. With exclusivity with Air France-KLM, what does that mean for historical frequent flyer program tied with TAP Air Portugal? Does that no longer exists? Thank you, Hillary, for your question, and as I said, no changes in the TAP agreements, Air Portugal, that we have today. TAP is a great partner. They are, I mean, very big in Brazil, flying to many gateways, and we are gonna continue our partnership, our codeshare, and also the frequent flyer with them. Thank you. Our next question comes from Gabriel Rezende, from Itaú BBA. Please, Mr. Gabriel, your microphone is open. Thank you. I have just a quick follow-up regarding the delay to receive the aircraft from Boeing. So it is clear that you mentioned that you have some grounded aircraft that are generating lease expenses not tied to revenue generation, and that is waiting on your cash flow. And you mentioned that this should also wait on the gas figures looking forward. I'd just like to confirm that we should see maybe a spike on maintenance expenses in the coming quarters because of this effect. I mean, you're gonna have to return these aircraft, do some maintenance, some work on them to return them following your checklist, and then we should see these higher maintenance expenses. Is that going to be one of the negative effects you're going to have because of this, idle capacity? Yeah. Hi, hi, Gabriel. It's, as you can see, even in this quarter, which is a very robust result that we are delivering, but it, it has already the impact of 4 lease returns on the, on the cost side, and that will probably continue. As, as we, as we go, we are looking to every airplane, sit down with the lessor and say: Look, can we bring those plane, this plane back to the operation? Can we extend that lease? Can we invest in the right CapEx, invest on the engines and stay flying this NG, or let's return? So we are doing this, and the, the other moving piece is the deliveries, and that we have very low visibility so far. That's why it's something that we are managing in the, like, 2-month timeframe, rolling basis. So we go and say, "Look, those are the candidates to bring those planes back to fly." We sit down with the lessor, try to have a negotiation to return or to make sure we can fly those airplanes, or if we can take a MAX and return those planes. The level of maintenance will continue to be impacting the cost, as we saw this quarter. I don't think it's gonna be much bigger than what it was in the quarter. But also there is the challenge on the CapEx side, if we decide to return more planes than to fulfill the gap on the deliveries. And that's what Mario answered before. We are budgeting 2024 to make sure that we have enough room to address those engines, sit down with the source, with MROs, to have more, ability to finance those CapEx. That's what we are doing right now and working with new engine facilities, especially with the Brazilian government, to make sure we can address a higher CapEx, than we usually face. So cost and also CapEx will be impacted, especially in the next, 12 months. Yeah, I, I just wanted to add, Gabriel, the following: We, if you remember, we have been, we provision, ... you know, some of the return costs, the maintenance return costs in our balance sheets are bake in by the end of 2021. So, of course, part of that impact is going to be compensated, not all, because, you know, the provision is prorated as long as the cycles we're gonna start to be constituted. So given that we anticipated some of the deliveries of the aircraft in 2025 and 2026, and now we are anticipating some of the returns as one of the big efforts that we're doing in order to, you know, rebalance our fleet, and recover in the efficiency and also the productivity. We have been impacted by this higher costs going forward, and at the same time, the potential profits on gains for the new deliveries, now we have some uncertainty. So that has been driving the results to be temporarily, you know, with the cost temporarily increased from what we previously forecasted. But at the same time, what you probably can think is that at the same time, we are doing that effort in terms of reducing that idleness, and we can potentially start to have some impacts on the P&L, on the maintenance line. At the same time, on the cash flow perspective, as we mentioned before, you know, we are also paying right now some inefficient drag related to leases. With no aircraft available, we also -- we need to perform into additional leases for spare engines and maintenance reserves. So everything that in order to address that impact on the maintenance, going forward, we can expect that we can also compensate or offset that cost impact going forward with a lower drag in the cash flow, at the same time, to have a more neutral scenario, because we are fixing that issue right now, right? So that's only another way to think in terms of cash flow impact. That's very helpful. Thank you, guys. Our next question comes from Diego Villalobos, from Moneda SA. Please, Mr. Diego, your microphone is open. Hi, good morning. Thanks for the time. I just want to follow up in the, in the lessors topic. Could you update us on the situation with, in the negotiations? Have there been any updates, and what are you seeing as the main bottlenecks? And a second question is regarding the 2024 and 2025 maturities. What are you expecting to confront those, and are there any plans or there? Thanks. Good morning, Diego. So on the lessor side, we, we continue to talk with all the lessors. We have 25 lessors, and to address, I mean, the, the accumulated liabilities that we have on the leasing side, most of them are reflected as lease deferrals, that we, we of course, we are trying to negotiate to push them to the, to the right. And but also we are discussing with lessors now, I mean, how can we address the, the, the end of leasing compensation of the, the airplanes, especially the planes that we are not flying and also maintenance facilities that we are discussing to how, how can we address the engines? So I think, you know, ourselves and the lessors, we don't want to have planes on the ground here or any other places. We are going lessor by lessor, especially with the ones that have this situation of engines and planes on the ground, to make sure we can address a way and expedite the way without a tremendous cash burn all at once. So the negotiations are improving. We have... I mean, it takes time, so we have been at this since last year when we issued the ESSN. It takes time, but we are, I mean, we are making progress with them. Right, Mario? Yeah, for the second question related to the outstanding amount on the bonds, Diego, you know, as you know, the 2024, we have already reduced the spring maturity risk, so now the outstanding amount is below $42 million, and that's, of course, have the shortest maturity in the middle of next year. And on the 2025 and 2026 are still two years into the maturity. The point is that we are focused on now on putting the company back on track, in terms of operational profitability, performance, and also resolving most of that capacity, plus the CapEx issue, that is something that if we can fix that, company will be behaving much better in terms of their financial performance, right? Because something that I wanted to highlight is that we are producing that EBIT and EBITDA generation, even carrying this drag in our balance sheet. So we, you know, we really understand that, with the, you know, the efforts and this very good work with our team, we can really been outperforming our results when we have this CapEx and capacity being addressed. Tat's our main priority right now. And, of course, if that's happened, we can turn it into higher margins, better cash flow, and when the scenario will happen, we'll drive to all alternatives that GOL has available, that we can assess, where is going to be the best way to address all those 25 and 26 bonds. So this too far away right now, of course, we try to think what we can do in some anticipation, but this is not the top priority right now or neither the best use of cash at this point in time. So when the time is appropriate, of course, we're gonna be discussing that topic. Right now, of course, all the alternatives are on the table, but we need to put the company back on track first. Otherwise, you know, there's no room to discuss anything on the 25 and 26 bonds. And the 24, as I mentioned, is pretty much more reduced as a risk, and that's something that we're also gonna be handle when we can get into the 2023 results, and start to look on 2024.