Good morning, and welcome to Avianca Group's third quarter 2022 financial performance call. All participants are in a listen only mode. After the speaker's presentation, we will conduct a question and answer session. To ask a question, you will need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to María Ricardo, Head of Investor Relations. Thank you. Please go ahead, Ms. Ricardo. Thanks, Julian. Good morning, and welcome to Avianca Group's third quarter 2022 results call. My name is María Cristina Ricardo, Head of Investor Relations at Avianca Group. Joining me on today's call are Adrian Neuhauser, Avianca's President and Chief Executive Officer, and Rohit Philip, our Chief Financial Officer. Before we review Avianca's financial and operating results, please note that statements or comments made on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties. The company's actual results may differ significantly from those projected or suggested on any forward-looking statements due to a variety of factors which are discussed in detail in our materials. Today, Adrian will kick off our call with an overview of the state of the business, followed by an update on the transaction with Viva and the incorporation of Abra. In addition, Rohit will walk you through our third quarter 2022 financial performance, and as always, our prepared comments will be followed by a question and answer session. With that, I would like to turn the call over to Adrian. Adrian? Thank you, María Cristina. Thank you everyone for joining us today. We're going to give you a summary of a quarter that we're very proud of and tell you how we think the business is progressing. We generated $241 million in EBITDA in Q3. That's about $25 million ahead of business plan projections. For those of you keeping score, about $25 million behind cumulative business plan. You'll remember that we outperformed strongly in the first quarter. Second quarter was challenged because of fuel, and in this quarter, as Rohit will detail to you, we've been able to catch up and pass through fuel. We're closing in on business plan in spite of the challenging inflationary and fuel environment. During the second quarter, we increased fares. We adjusted capacity. You'll see that we've been very disciplined on capacity and cost management through increases that we carried out allowed us to pass through 98% of the fuel price increase into the third quarter. So very, very close to the margins that we had projected. We remain on track to achieve our ex-Fuel CASK target of $0.034 in 2023. We're gonna be at a run rate of $0.039 by December of 2022. Our Q3 CASK ex-fuel was slightly higher than business plan due to certain delays in our distribution strategy. We only got about half a quarter's benefit of the change in distribution strategy. Buy on board that's been pushed back into the fourth quarter and some fleet initiatives. All of this will be fully online in Q4. Obviously, as we pull back capacity, there's some fixed cost negative dilution, if you will. All of that impacted our Q3 CASK ex-fuel slightly, but again, we are on track for the $0.039 for the end of the year and the $0.034 end of next year, in spite of the inflationary environment. Our cash balance remains strong at $826 million in spite of an impact to working capital. We had about a $75 million impact in working capital, mainly driven by three factors: fleet lease agreements, and Rohit will go into the details there, advanced ticket sales, and fuel supply agreements, where our fuel providers have gotten, well, not ours. In general, the industry fuel providers have gotten more nervous, with the days of credit they give you, given increased fuel price. Obviously, that results in more dollar exposure, so they've pulled some back. But all of these are one-time impacts that we do not expect to impact cash flows going forward. Going forward, we believe our cash generation will be in line with what we've projected from this new baseline. The LifeMiles and Cargo financial performance continued to be ahead of business plan. Those are continuing bright stars in our portfolio. The Civil Aviation Authority of Colombia, I'm sure you've read, where they rejected the failing firm hypothesis for Viva integration, but they indicated a willingness to reconsider the process under a normal process with remedies. We are going to seek approval under this alternate path, but the problem in our mind is that we do believe Viva is a failing firm. Timing is a significant concern. The impact to us should Viva fail is ring-fenced to the exposure we've already taken. You know, in the world of silver linings, should Viva fail, obviously there will be a significant capacity reduction in the market, which would impact us positively. It's not a catastrophic scenario for us at all, but we believe the right answer for the country and for the market is to keep Viva alive, and we're gonna keep pushing for that to happen. Regarding Abra, we've obtained the necessary regulatory approvals, and our focus now is on executing the financing transaction that optimizes the balance sheet, so that we can move forward and close that shortly. As part of that, we are considering liability management. One of the themes that we have in the Avianca case and in the GOL case certainly, as you look at us, is that we see our bonds trading wide of the direct comp. Part of that is certainly our responsibility. You know, we've been limited in our investor relations effort. You can see now with María Cristina and the team, we're ramping that up. But we are surprised to see ourselves trading wide of Aeroméxico and LATAM when our performance is significantly better. If that continues, obviously we'll look at liability management around that as well. With that, I'll hand it over to Rohit, who'll give you more details on the results. Obviously, I'll be available to come back for questions once we're done. Thanks. Thanks, Adrian, and good morning, everyone. In the third quarter, our capacity was about 9.2% higher than our business plan projections. If you recall, given sort of in the beginning of the year, demand was coming back much stronger than our original projections. We had sort of ramped up capacity ahead of business plan projections. Even though we're 9% ahead of business plan, it is a little bit behind what our original expectations was for the fourth quarter, which is sort of a result of the actions we took in the second quarter to rationalize some capacity in order to enable sort of the fuel pass-through. Traffic continues to be strong with a 82.4% load factor. It's behind sort of the business plan projections of 88.7%, but obviously a result of the yield strategy in order to pass through the fuel price increases, which we'll show you on the revenue side. Yields were up significantly, so an 82.4% load factor we think is still strong. If we go to the next slide on revenues. First the chart on the right, we look at yield. Yield was up 30% compared to business plan and ahead of even pre-pandemic yields at $0.093 in the quarter. This sort of was something that I think we're very proud of in how we were able to adjust the business to deal with sort of the fuel price spike that happened during the second quarter. You can see sort of our average fare was also significantly up compared to business plan. On the PRASK side, we had a PRASK of $0.0768, 21.6% ahead of the business plan projections. If you go to the next page, that meant that we were able to pass through about 98% of the incremental fuel price increase. If you look at the chart on the right, PRASK versus Fuel CASK, you'll see that, our PRASK was $0.0137 higher than our business plan projections for the third quarter, while our Fuel CASK was $0.0139 higher than our business plan projections. That's based on an average fuel price of $3.36 per gallon in the quarter. That represents a 98% pass-through in Q3. That compared to a 52% pass-through we had in Q2. I think we were able to really to adjust the business to be able to get the full pass-through, almost the full pass-through in the quarter. If you look at the chart on the left, you'll see that, obviously fuel price on the in the red bar went up from $0.0163 - $0.0302. As we all know, you know, the fuel price increase. On the non-fuel price side, our CASK was $0.0449 compared to business plan of $0.0422. Slightly worse than business plan projections. If we go to the next page, the explanation for that difference is a few factors that we expect to sort of get adjusted in the fourth quarter. There was $0.19 worth of CASK, which was explained by sort of the densification program. We're very happy with how all the challenges with global supply chain shortages, that it's largely on track, but it's slightly behind the original projections. $0.19 is just based on the densification delays, which we'll catch up in the next two quarters. We have some costs related to what we're calling exiting fleet in this document. It's relating to aircraft that we expect to exit the fleet over the next six to 12 months that we ended up using a lot more than we planned. The way we pay for these planes, since they're exiting the fleet, we pay not only a PBH, a power by the hour, on the lease rentals, but we also pay power by the hour on the maintenance, because obviously we're not doing sort of the full overhauls of these planes. We ended up using these planes a little bit more, so that's why you see a $0.2 impact from that. The reason we used these planes a little bit more was because of the delays in some of the planes that we were getting incorporated from the market. We ended up having to use these planes a little bit more. The next category was the delays in our distribution and buy on board initiatives. The distribution initiative went live on August first, so we actually had two months out of the three months in the quarter, but in the fourth quarter we'll have all, you know, the full quarter with the new distribution model. That distribution model, I think so far we're very pleased with how things have gone. We've been able to sort of implement the new model, which obviously gives us significant cost savings, but also very importantly, control of our content that allows us also to do more things with direct distribution. That is sort of largely gone through sort of without any hiccups. We're very pleased with that cut over. Buy on board, we are planning a launch on December 1st, so that's our original business plan had us having this in place during the quarter. That's offset a little bit by slightly higher stage length, which gives us a little bit of a cash benefit, as well as a bunch of cost optimization initiatives that we were able to find additional savings on. That sort of gets us to the $0.0449. If you go to the next page, we are still on track to hit the $0.034 target. If you look at the bridge here, we are at $0.0449 at the end of Q3. Between Q3 and December, we will get to $0.039. The main things are we'll have an additional 15 planes getting reconfigured, which gives us sort of the additional seats, which will be $0.0015. We have a slight increase in aircraft utilization, which gives us another $0.0006. We'll have sort of the full impact of the distribution and then in the December run rate, the full impact of buy on board, which will get us the $0.0017. Then we'll largely reverse most of the exiting fleet costs that I spoke of earlier to get to $0.0392. Then during 2023, the additional initiatives will get us to $0.034. If we go to the next page, our cargo revenue continued to be strong during the third quarter. On 19% higher capacity, our revenues were up 55.8%. We had $191 million of cargo revenue, which you know reflects obviously the strong sort of cargo demand for where we were able to pass through again the majority of the fuel price increases, which we did even in the second quarter. While cargo continues to be strong, we do notice a little bit of cooling off of the demand. Going forward, we expect continued outperformance compared to business plan, but maybe the level of outperformance will start to taper off a little bit, based on what we're seeing right now. Going to the next page on LifeMiles. LifeMiles cash contribution to the group continues to be ahead of business plan levels. On the chart on the right, we generated $29 million of cash EBITDA to the group, compared to business plan projections of $23.6 million. 22% ahead of business plan. That was in spite of, on the left you'll see third party gross billings at $40 million compared to business plan of $50 million. That is impacted by a few factors. First, which we haven't written on the page here. There is a currency impact that's starting to show up in the LifeMiles side because most of our credit card customers are in Colombia. We have a large base of credit card customers in Colombia. Even though the spend in pesos is up from the currency with the devaluation of the Colombian peso, it does show a weakness in third-party billings on credit cards in dollar terms. In addition, some of the programs that we had to sell miles directly to members, which was a very sort of interesting opportunity for us. We found a little bit more competition now in order to raise cash. A lot of the U.S. carriers which were not in that market have started being more aggressive in that market. It sort of dilutes a little bit our opportunities. We've seen that sort of happen compared to sort of the original projections, which didn't have sort of that much competition in that space. Those were some of the factors that sort of had us behind business plan in billings. Overall cash flow still positive as a result of managing to continue to find ways to redeem most of the miles at low opportunity costs on Avianca rather than paying third parties to redeem miles. That has been working really well and keeping the cash within the group. Going to the next page, on the profitability comparison and the bridges. If you look at EBITDAR, we were at $241 million compared to the business plan EBITDAR of $227 million. Excluding some of the one-time costs, we were at $257 million with at a 22% margin. Slightly behind the margin of the business plan, but ahead sort of in dollar terms. You can see the factors are sort of fuel and revenue sort of offsetting each other. Positive contribution from freighters and some small impact on expenses will sort of give you that explanation. On the net income side, again, very similar explanation. The only additional thing was, we do have the power by the hour impact on the exiting fleet that I talked about. That hits on the net income side as well as the IFRS, both IFRS 16 and IFRS 3 related non-cash accruals that, if you recall, our business plan didn't assume sort of the fresh start accounting. These are all related to that sort of has a negative impact on the net income. Overall, net income, excluding one-time at $5.7 million compared to business plan of $19.3 million. Pretty close to business plan levels on the net income side. Cash flow on page 11 is, we ended the quarter at $826 million, which we believe is still a strong cash balance, even after an impact of $75 million in negative working capital hits. The three factors that contributed to $75 million was, one, in our fleet lease agreements, we had $21 million in payments in July where our lease agreements cut over from power by the hour to long term fixed leases. And unfortunately the timing impact sort of meant there's sort of a double payment in July because the power by the hour payments are in arrears and the long term leases are in advance. We had that. We took that impact in the month of July. We also as part of the yield strategy had about $40 million reduction in our air traffic liability, advance sales due to the fact that we were not selling sort of cheap fares in advance. We kept the fares high even in advance, which sort of meant that the booking curve shifted to closer in. That's about a $40 million impact. Fuel supply agreements, we took about a $13 million hit in the quarter. That's as a result of, I think what Adrian mentioned briefly in his opening remarks was when fuel prices spiked. I think most of the fuel providers looked at the credit they were giving to airlines and looking at, you know, our agreements had certain number of days of credit and the dollar value of those credit terms was much higher than what they had sort of budgeted for in their sort of credit analysis. In the renewals of the annual renewal cycle which happened in September, we lost a little working capital from our fuel supply agreement. Those three factors contributed $75 million, as we said. Those are one-time impacts that we expect will not sort of impact cash flow going forward. The also important thing to note is that in our cash balance, there are a couple of sort of offsets that we will get in future periods. With respect to sort of the maintenance, in particular the engine overhaul expenses that we've been doing and the densification CapEx, there's a little bit of a timing issue with the lessor reimbursements. We firstly have negotiated in most of our deals to have the lessors pay for sort of the engine overhauls as well as the densification. What happens is the reimbursement from the lessors come after the event has happened and we have to pay for some of these things. You know, some of the materials and some of the, in the engine overhauls we have to pay 50% of the estimated cost at the time of the induction of the engine into the shop. There is some negative working capital carry. If you can see here we have about $96 million of lessor contributions relating to money we've already spent that will be collected in the, that'll sort of come back to us in the third, in the fourth quarter and some in 2023. Also in the tax payments there was about $25 million of payments where we will expect to recover that back in 2023. About $14.5 million in VAT payments where we currently expect to be able to recover most of that in the first half of 2023. We do have advanced tax payments that we don't expect to ultimately have an income tax liability on the passenger side, which we'll get the credits back in 2023. Those are sort of the factors that I'd point out. Overall cash at $825 million is still strong and we expect cash to build in the fourth quarter, similar to how we had projected in the business plan. With that, I think we can turn the call over to the operator for Q&A. Thank you. As a reminder to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, please press star one again. We'll pause for just a moment to compile a Q&A roster. Once again, to ask a question, please press star followed by the number one on your telephone keypad. Our first question comes from Mike Linenberg from Deutsche Bank. Please go ahead. Your line is open. Hey, good morning, Adrian, Rohit. I have a couple here. Adrian, I just wanna go back to you talked about Abra and you mentioned that you had the regulatory approvals in place and you thought you would have something soon. What are the gating factors? Is it market volatility that is having an impact here or do we hopefully have something closed by year-end? Any- Look, it's either year-end or next year. I believe it's gonna be year-end. It is the market in the sense that you'll remember we had disclosed that as part of Abra we were going to move forward with a capital raise for the company. That capital raise is circled up. We've taken a position now that given market volatility, we should actually do something larger to ensure that we're not continuously exposed to this over the next couple of years. We're in the process of marketing that now and expect it to go well. Once we've kind of rounded up that incremental financing, we're gonna move forward and close. Everybody's really excited. We've got both management teams kind of chomping at the bit to start doing this together. Expecting this soon. Okay, great. That's helpful. Then back to on the Viva situation. You can tell you've made it pretty clear that time is of the essence. As we think about cash burn for Avianca in general, just seasonality, when does it peak in cash and when does working cap, you know, turn the wrong way? Are we in that period right now and is that why, you know, the sense of urgency, if you could just elaborate on that? Yeah. No, that's a really good question, right? Obviously, we're. Well, let me put it this way. We would normally have sold the high season already, right? Given our sales pattern, I would assume Viva's is not very dissimilar, but we would normally have sold the high season already. The reality is if you look at week to week, I was just looking at last week's numbers. We're selling almost 10% more than we did same week last year. Mm-hmm. That has to do with the booking curve shortening, right? The working capital impact that Rohit mentioned, et cetera, but also driving margins. Ultimately, we're not incenting people to buy, you know, that far out, and some people aren't buying that far out. Mm-hmm. The short answer is it would normally peak around first week of December. Mm-hmm. You know, it might delay into second week. It doesn't go much further than that. After that, you're just burning off, right? Because you're flying people, but you're selling January and February. January is okay. February is our annual trough month, right? If you extrapolate that to Viva, you would assume that, you know, they will start having trouble, you know, sometime in December as inflows, you know, reduce and outflows grow, right? It's a complicated situation. You know, we think it's harder. We think it's sort of impossible to make a clearer case for a failing company than this because it's a failing firm than this. We didn't. We think, you know, the response from the government was nuanced in the sense that they basically took the position that you can't really prove failing firm until the firm has failed, which sort of negates the whole objective of that statute, right? It feels like it was, you know, a reasonably difficult political challenge to approve something without clear visibility to the issue. Again, they came back and said, you know, "File, you know, appeal the regular way. Propose remedies and we'll consider it." I don't think they're being completely sanguine about the situation. I think they understand that it is a crisis, but ultimately, you know, on balance, they decided that they weren't going to simply approve failing firm. Failing firm in Colombia doesn't. Ultimately it's never been used in airlines, right? You're sort of, even though the description is there in the statute, you know, paving new ground. The statute as written doesn't really contemplate remedies. That, we believe, was one of the key issues for the government, that it became a very black and white, you know, approve it or deny it situation as opposed to a, you know, okay, we will approve it with the following conditions. Okay, very helpful. Just if I could squeeze one in for Rohit on your distribution. You talked about, you know, being able to do more direct. Where are you today with direct selling and what's the goal? What's the objective? Where do you wanna get to? I think we're sort of at around 50% sort of direct on our dot com. You know, during the pandemic, clearly there was a bigger shift to people booking direct. We worked very hard to sort of maintain that share. We think we can get, you know, in the next year and a half to sort of in the 60%-ish range. I mean, I think those are sort of the goals that we have. We still have a certain chunk of business that will come through sort of the corporate agency sort of channel. We think we can push that 50%-60%. Okay, great. Let me complement that because your question is very black and white. I think that the approach we've taken is a little more granular than that, right? What we're trying to do, and Rohit alluded to it in his original presentation, is be able to do more things with our inventory, right? What we've done so far is we've effectively modified our distribution agreement so that we don't have the obligation to take all of our content through traditional GDSs. We've basically told agencies that they should connect to us directly through our NDC. What that lets us do is basically create a situation where you know, what we describe as the inventory that the agencies simply do not add value, right? Our base fare extras, whatever you wanna call them, bundles. We are not incenting the agencies to move that content because frankly it's better for us to do it. It's lower cost. But also it allows us to manage the booking more directly, right? Mm. If we change the flight, if we need to rebook, if whatever, ultimately we have the client's contact info, it's simpler for us to manage it et cetera, right? What we're trying to do is push the agencies to the more value adds content where they help kind of create a bundle or guide their customer to the right bundle. Those are higher margin for us. Mm. Therefore, you know, more interesting for us to put commissions on. It's not just how much we shift to us, but it's also how we direct the flow. Very good. Congrats on a good quarter. Thank you. Thanks. Our next question comes from Rob Pim from Silver Point Capital. Please go ahead. Your line is open. Hey, thank you for the update this morning and congrats on the good quarter. Just had one question as it relates to the Avianca-Viva merger. I remember it was mentioned that you guys made a $100 million cash distribution up to a new holding company just to fund the cash portion of this merger. Then that basically created a new loan between our parent guarantor and the new holdco that we have an unsecured claim as note holders. If this Viva transaction falls through, should that $98 million be returned back to the credit group, or will that stay up at the new holdco? Well, if the Viva transaction falls through, the funding has already occurred, right? We're gonna have a claim on the Viva transaction. You know, if the Viva transaction falls through and if Viva should survive, then effectively we have a loan that we can collect on for the Viva transaction. You know, if Viva ultimately fails, then there will be a bankruptcy estate or a liquidation estate or whatever ultimately they decide, and then we'll see what we can recover from there. Got it. The $98 has already been invested in- Mm-hmm. Yeah. In Viva. Got it. The new holding company, the structure of that loan, is it a secured loan or unsecured? What's the structure there? Rohit, can you speak to that? Of the $78 million was spent to buy out the minority shareholders originally. That was straight sort of cash payment to the minority, the previous minority shareholders of Viva. The remaining $20 million was invested in a loan into the Viva holding company, which is a secured loan. Got it. $78 million was an equity investment, $20 million was a secured loan. Exactly. Got it. Would you expect to have a meaningful recovery on the $78 million that was invested in equity if Viva is to file? I think it's a little too early to tell. I mean, obviously we don't have visibility to the Viva situation in terms of their detailed financials. There are scenarios clearly where there will not be a recovery, but there are scenarios where there could be. I think it's a little too early to speculate exactly what will happen. Got it. Do you know the total amount of liabilities at Viva outside of that $20 million secured loan, or do you not have visibility into that? I mean, the total amount of liabilities is mainly related to sort of their aircraft agreements, right? I mean, their leases and ultimately. Yeah. If there's a situation at Viva where Viva is not able to sort of pay its bills, the significant amount of sort of the claims will be from aircraft lessors. We'll have to sort of see how that plays out. Right. Those claims would effectively be. Right? They would recover the aircraft, and they would have an unsecured claim for the residual that they don't receive or from the MV differential or what have you. That, you know, would obviously be unsecured and below secured. Again- Yeah. It's where I'd say it's. We'll see how it plays out. Yep. Got it. All right, thank you. Our next question comes from Michael Kaufman from Redwood Capital. Please go ahead. Your line is open. Hi, Adrian, Rohit. Thank you for the call, and congratulations on a great quarter. I had a couple questions. The first one is, to the extent you can comment on it, are you tracking or I guess how are you tracking to the fourth quarter EBITDAR plan, and do you expect to be cash flow positive in the fourth quarter? That's the first one. The second one I wanted to ask is, if you can provide any commentary on what you're seeing in terms of the supply and demand in the key markets that you're in, just sort of an update on how that's trending versus last quarter. Thank you. Sure. Rohit, you wanna take the first one, or I can take the second one? Yeah. Yeah. Okay. I think in what we're seeing in the fourth quarter is continuing sort of strength in sort of the demand side. We're seeing sort of the strategy we had in the third quarter continue to play out. Trends so far look positive. Obviously, we've got to be mindful of sort of global sort of recessionary global sort of inflationary sort of trends that are sort of putting pressure on purchasing power over time. We have to be watchful of that. So far the signs we're seeing are very positive. At this point the outlook would be to certainly exceed our business plan projections in terms of profitability for the fourth quarter. In terms of the cash build, we expect to start generating cash in the fourth quarter, sort of in line with business plan projections that we would build some cash in the fourth quarter. There is a little bit of a, you know, that Adrian mentioned, in respect to Mike Linenberg's sort of question that in December you lose a little bit of of cash at the end of the year from a ATL perspective. Overall, we expect to generate cash in the fourth quarter. I'm sorry, remind me the second question. In some of the key markets, what you're seeing in terms of- Oh, sure. Supply demand. It's interesting, right? If you looked. You know, let me go back a quarter, right? If you looked at the prior quarter, right? North America was. Or Central America to North America was very weak. Colombia was sort of, you know, break even-ish. You know, our big outperformer was Colombia to Europe, where the shift in the devaluation of the euro has shifted a lot of demand into Europe. We've continued to see that outperformance in the third quarter. I think that what has helped us turn the quarter around as well is the North America underperformance sort of reverting. It's not where we'd like it to be yet, but we've seen, you know, some of the U.S. majors start to pull back capacity from there. We saw Spirit actually yesterday make a pretty big announcement and pull back their capacity from there as well, which we view as positive for us. Ecuador and Colombia continues to be, you know, kind of okay. Not significantly overperforming, but cash positive. Ecuador is underperforming. There's too much capacity there. I would say that, you know, we inadvertently during the pandemic captured market share there. I wouldn't say it was planned, but it was a marked kind of change versus where we were pre-pandemic and our position versus LATAM's. LATAM has been kind of deploying extra capacity to try to get it back. It's a small market. It doesn't move the needle much. It's kind of the current you know proxy or battleground, however you wanna call it. The pullback from the U.S. carriers into Central America, et cetera, we think is and into Colombia, we think is reasonably structural as you had. When Europe was closed down, Asia was closed down, you had a lot of excess capacity that they had to figure out where to fly. You had the wide-bodies flying in the U.S. and the narrow-bodies that would normally fly in the U.S., a lot of them got shoved into Central America and kind of short-haul South America. As Europe has come back, some of that capacity has been moved to Europe. Obviously there's a shortage of capacity in the US because of the spike in domestic travel. That's sucked up some of the capacity too. They've started to pull back. You know, we expect that as Asia continues to reopen, more of that will continue to kind of shift. More of the kind of northern South America, Central America capacity will shift back into the U.S. as the you know, long-haul capacity gets moved into Asia. It's a positive trend. It also speaks to, I believe, kind of the competition starting to believe our business plan, right? Because at $0.034 we are significantly more efficient producers than any of the U.S. carriers or than Spirit, right? You know, at $0.062 we were not. You know, especially on kind of a marginal basis. As we kind of continue to move forward with our cost reduction, it makes it harder for these people to justify keeping capacity in those markets. Great. Thank you for the call. If I could slip one follow-up. I appreciate the cost improvement will be a big lever to this also, given FX trends and oil prices, this question is, I appreciate that Rohit commented that, hopefully at least as of now, you're not seeing strong impacts on demand from any recessionary macro pressures. Do you think you have continued room if fuel were to go up or if currencies were to continue to depreciate versus the dollar? Do you think you have room to push price and maintain demand and maintain margins? Look, the currency depreciation. You know, the currency depreciation is pretty neutral to us on a direct basis, right? It. You know, we have a lot of local currency denominated costs, right? So that on a just kinda like for like basis, it's neutralized, right? Where it hits us is it hits people's wallets, right? It makes them poorer. That ultimately will impact demand. What we're seeing, we saw it through you know kind of the early fourth quarter. What we're seeing is I don't know if you wanna call it a flight to quality or. Ultimately what we're seeing is a very little elasticity around peak season travel and higher than expected elasticity around low season travel. The peaks are getting higher, and the troughs are getting troughier, right? We've been very effective at in managing capacity tactically. When you look at the quarter and you see, you know, you see changes of 9% here or 3% there, they're actually not kind of even through the quarter. We've been pulling back capacity in trough months and then redeploying in the high months. We've also been able to do that, frankly, because slot waivers have been in place. We're gonna lose some of that flexibility going forward. The short answer is, you know, we're. We haven't seen any of it yet, but we're not unconcerned, right? When we look at first quarter and in particular February, which is again, as I mentioned before, generally a trough month, we're planning for some pretty weak demand there, as people just get poorer, right? There is a you know, kind of a silver lining in that. I think you alluded to it at the beginning of your question, which is ultimately, that just reinforces our focus on you know, believing that the lowest cost provider is going to be the one that wins, right? That's why we're so focused on executing on the cost profile in our business plan. In a world where it's more expensive to travel and where the underlying desire to travel has actually grown, right? Because you do have kind of the same patterns that you have in the U.S. of work from home or remote work enabling people to travel more. You know, your one vacation trip can now be four. Whenever the kids are off of school you can travel, or whenever there's a long weekend you can travel, you can work remotely. That underlying reason for travel has grown. But you're poorer and so it's harder to actually buy the ticket. We believe that kind of being able to provide the ticket at a lower price point than competitors and remain profitable is ultimately a big differentiator in our plan. Great. Thank you very much for the color, and congrats on the quarter. We appreciate it. Thank you. We have no further questions in queue. I would like to turn the call back over to Adrian Neuhauser for closing remarks. Okay. Well, again, thank you all for your time for joining us today. Thank you for continuing to support us. You will, as we promised to several of you over the next few months, continue to see us ramp up our industrial relations effort. We have strengthened the team very significantly and we're kind of very happy with the profile of the team. You'll see increased disclosure as we continue to ramp up and so hopefully that will continue to drive interest and also to provide some support under our securities which, you know, we're not happy with where they're trading now. With that, again, thank you all for this. We're proud of the quarter we delivered. We hope to talk to you in about three months with good news about the fourth quarter as well. Thanks again, and I mean, enjoy your holidays if we don't speak before then. Thanks, folks. This concludes today's conference call. Thank you for your participation. You may now disconnect.