Good morning, and welcome to GAP's conference call. All lines have been placed on mute to prevent any background noise. After the presentation, we will open the floor for questions, and at that time, instructions will be given if you would like to ask a question. It is now my pleasure to turn the call over to GAP's Investor Relations team. Please go ahead. Thank you. Welcome to Grupo Aeroportuario del Pacífico's second quarter 2023 conference call. Presenting from the company today, we welcome Mr. Raúl Revuelta, GAP's Chief Executive Officer, and Mr. Saúl Villarreal, Chief Financial Officer. Please be advised that forward-looking statements may be made during this conference call. They do not account for future economic circumstances, industry conditions, company performance, or financial results. As such, statements made are based on a number of assumptions and factors that could change. This could cause actual results to materially differ from current expectations. For a complete note on forward-looking statements, please refer to the quarterly report that was issued by the company. At this point, I'd like to turn the call over to Mr. Raúl Revuelta for his opening remarks. Please begin, sir. Thank you, Maria. We appreciate everyone who joined our call today to review GAP's second quarter of 2023. During the period, GAP transported nearly 16 million travelers throughout our network of 14 airports. This represent a 12% increase compared to 2022, which added to the first quarter, put us above our original traffic growth guidance for the year. 8 routes opened during the quarter, 4 domestic and 4 international. Los Cabos led the way with 3 new routes, followed by Puerto Vallarta with 2, Guadalajara, Mexicali, and Montego Bay with 1 each. Guadalajara also worth mentioning, has accelerated traffic growth during the quarter with an 18% increase. This was related to domestic market growth of 19%, mainly due to the new routes to Monterrey and Puerto Vallarta, as well as higher load factors from Viva Aerobus and Volaris. International traffic benefited from an increase in frequencies in key U.S. markets such as New York and California routes to Los Angeles, San Jose, and Oakland. As a result, international traffic grew by 17% during the second quarter. Tijuana continues to be one of our main traffic generators, boosted by the Cross Border Xpress, which has captured 32% of the airport's total traffic. The binational terminal continues to be a fundamental part of the airport's growth, as well other factors such as the nearshoring effect of the beach destinations, which alert the performance of their passenger traffic at this location. The growth trend at Puerto Vallarta and Los Cabos is very similar, given a strong domestic market fueled by the increasing load factors and frequency. In terms of international passengers in Los Cabos, we opened up 2 new routes to Dallas and Houston, as well as the seasonal Iberojet route to Madrid. Puerto Vallarta opened up routes to Guadalajara by Volaris and to Los Angeles by JetBlue. We expect to share with you great news regarding passenger development for the whole network. During the coming months, we are anticipating more than 40 new domestic routes in July, operated by Volaris and Viva Aerobus. Now, moving on to our aeronautical revenues, this line item increased by 14%, driven by passenger traffic throughout GAP's network. In the case of our Mexican airports, the increase was offset by the new increase in the produce price index, excluding petroleum, which has led to no inflation increase in maximum tariff approved in our Mexican airports. As such, we were able to reach 99% compliance of our maximum tariff. In addition, the consolidation of our Jamaican airports had a negative impact due to the appreciation of the Mexican peso by almost 12% over the US dollar, that has affected the revenue increase. Just to remind you, the two Jamaican airports represent 15% of the total aeronautical revenues. At this point, let's take a look at non-aeronautical revenues, which reflected an outstanding performance, growing by 18%. This resulted in a 10% increase in non-aeronautical revenue per passenger. Most of the increase was attributable to the opening of new spaces at the Guadalajara, Montego Bay, and Los Cabos airports. Increase was also due to the passenger traffic recovery and the renegotiation of contract conditions with the tenant. It is worth mentioning, that despite of nearly 12% appreciation of the pesos, which affected 20% of total revenues, non-aeronautical revenues increases above the passenger traffic increase. In terms of business units, food and beverage increases by 27%. This outstanding performance was mainly in Los Cabos, Puerto Vallarta, Guadalajara, and Montego Bay airports. Recently, new spaces were incorporated at the Guadalajara and Montego Bay airports. Additionally, for the upcoming months, we are working on the opening of the terrace at the Guadalajara Airport, an upscale rooftop food and beverage space, which we expect to be completed in November. At this point, that project is 80% advanced. Convenience stores revenue increases by 71%. To expand our business line, we opened up three convenience stores during the last six months in Los Cabos, and we will open one more in Guadalajara. Just the three stores in Los Cabos represent 20% of the total income from this business line, and it's worth mentioning that one of the stores at the international terminal has the highest revenue of all the network stores. This brings the total number of convenience stores in our network to 29. Duty-free increased by 9%. The increase below passenger traffic growth by mainly due to the Mexican peso appreciation, as all the revenues from this business line are in dollars. It was also affected by the temporary closing of the walk-through duty-free store in Guadalajara, due to the construction projects that are in progress at the terminal. Advertising increased by 71%. New client catchment drove the increase, which put us on track to recovery following the COVID effect. VIP lounges increases by 14%, mainly due to the lounges at our tourist destination that continues to drive the business line. While Guadalajara is currently remodeling the international VIP lounge, and we are also reconfiguring some expansion international V lounge in Los Cabos due to the higher than expected demand throughout 2023. We expect both construction projects to conclude next year. Moving on to the EBITDA results. Despite the 12% appreciation of the peso and the almost nil inflation in the quarter, EBITDA reached MXN 4.5 billion for the quarter, with an EBITDA margin of 17.4%. This was led by the passenger traffic recovery and solid commercial revenues, and was partially offset by the 15% increase in the cost of service. As we have previously discussed, despite our best efforts to comply with our cost control policy, we have had to deal with inflation, the hiring of additional personnel, changes in labor law, and minimum wage increases. This factor has affected not only salaries, but also the contracts that are linked to personnel such as janitorial, security, and maintenance. We expect higher costs further down the line due to the air side and terminal expansion, in addition to the inflationary effects. Moving on to the CapEx, it continued to be carried out in accordance with the Master Development Program, along with commercial investment. During these first six months, we have deployed MXN 5.6 billion, which was allocated mainly to the Guadalajara, Puerto Vallarta, Tijuana, and Los Cabos airports. Just to remind you that GAP paid the second portion of this year's dividend for MXN 3.71 on July 13th, per the resolution made at our annual shareholders meeting. Before I conclude my presentation, I would like to announce the revised guidance we use for 2023 versus 2022. For the traffic, we expect an increase for 10%-12%. For the aeronautical revenue, an increase between 13%-15%. For the non-aeronautical revenue, we expect an increase between 16%-18%. For a total revenue increase from 14%-16%. EBITDA between 12% and 14%, and EBITDA margins from 70% ±1%. CapEx that will grow for all the year to MXN 11.9 billion. Passenger traffic projection is based on the consolidation of routes developed to date. It also includes the increasing load factors and airline flights, frequencies, and seat availability, with the information that is currently public. Total revenues have been adjusted based on expected changes in traffic performance, applicable passenger fees, a decrease in Producer Price Index excluding petroleum, and a Mexican peso appreciation. This is in addition to the opening of new spaces, as well as the negotiation of contract terms and commercial agreement, as well as the development of other business lines operated directly by the company. Decrease in the cost of services reflects the operating requirements needed to meet airport services demands. In addition to that, it reflects infrastructure expansion and service quality improvements, added to higher inflation, minimum wage increases, and additional personnel required for operations, maintenance, security, and cleaning. CapEx reflects committed investments in GAP airports per the Master Development Program and investment in commercial spaces. The process of acquiring land is moving really quickly. Hence, we are adding MXN 1.7 billion to the original guidance, amounting to a total of MXN 3 billion for land acquisition at the Guadalajara airport. At this point, that is for my remarks. I will ask the operator to open the floor for your questions. At this time, if you would like to ask a question, please press the star and one on your touch tone phone. You may remove yourself from the queue at any time by pressing the pound key. Once again, that is star and one if you would like to ask a question, we will take our first question from Guilherme Mendes with JP Morgan. Your line is open. Good morning, everyone, thank you for taking my question. The first question is a follow-up to the comments on the guidance. If you may just provide a little bit more color of what is behind the traffic update. I understand the load factors and the additional capacity from the airlines. Just wanting to pick your brains on which regions are performing better, if domestic, if international, or maybe some surprise on Jamaica going forward? On the CapEx, if it's only related to the land acquisition in Guadalajara or something else, just to make it clear. The second question is related to the expected upgrades to Category 1 of the Mexico Aviation Agency. What is the latest on that? What is company's expectations in terms of the timing for it? Thank you. Thank you, Leonardo. This is Raúl. First, I will go into the traffic performance. We are seeing a really interesting growth on traffic in some airport that some airlines, as Volaris has announced some new routes, as could be Mexicali or Guanajuato, and even Tijuana. We are seeing a really interesting moment or boosting on the domestic traffic. For instance, in the leisure destination, like Plus, Puerto Vallarta, and Cabo. For sure, in some routes, in some regions, that will be more, I would say, affected or more in line with the nearshoring, as could be Tijuana, Mexicali, or even Bajio, Guadalajara. We expect that begin to see more domestic traffic happening, because if this trend continues, we are seeing better wages, better salaries, better kind of employment in the region that will bring more money to the pockets of the people around this area. We're gonna see more traffic, for instance, on leisure, on domestic traffic, flying from Guanajuato to Los Cabos or to Vallarta. This kind of traffic we expect to increase due to the fact of better employment in the area. That is really first part. The other one that is not completely clear is how much of these additional. How many of these additional frequencies that Volaris or Viva Aerobus has opening on the last month, will be fully operating in the future as soon as the Category 1 could be recovered? In other words, in other way, both Volaris and Viva Aerobus have received new planes, have increased their fleet, but they could not put a fly on international, on US market, that plane. They are putting that capacity for the moment on domestic markets. One of the things that we're gonna see change in some way is as soon as the Category 1 is recovered for Mexico, we're gonna have see some kind of shift from some specific domestic markets to international markets, due to the fact that Volaris or Viva Aerobus could open or could use, could add frequencies on the future for the U.S. market. Going to the category, I would say that the last visit of the FAA and the U.S. authorities to Mexico, to review the all the progress on the different observations to the Mexican authority, I think that we are in the line, and we are in the last part of this long process. We expect that for the fourth quarter of this year, the category could be recovered. Again, we are talking about public information and how the authorities have communicated all the progress in this process. Related to the CapEx, in the general change on the CapEx, we are so just adding above our original plans, some acquisition of land for the Guadalajara airport. We are preparing the long-term reserve of the airport that will allow us to have possible third terminal number three on the future, and even if the demand is there, the third runway for the airport. The specific or the most important part is that our biggest asset, we are preserving the value for the future, acquiring reserve for the maximum capacity growth in the coming years and in the long term. That's super clear, Raul. Thank you very much. Have a great day. We'll take our next question from Rodolfo Ramos with Bradesco BBI. Your line is open. Good morning. Thank you for taking my question. I have a couple, if I may. The first one is, when you think about this faster recovery in traffic that you've seen, you know, how do you think of the main variables that you will be discussing with regulators, this mostly next year, as part of your development plan? And also having in mind, you know, the investment requirements that you'll need to accommodate that higher passenger growth. The second one is, you know, you talked about the impacts of the Mexican peso appreciation on your commercial revenues. Can you talk us through, you know, your thought process on how it can impact your business side on the aeronautical revenues? Thank you. Thank you, Rodolfo. This is Villarreal. I mean, for sure, the increase of passengers when you put it on projections, will be some additional pressure for a possible decrease on the maximum tariff. On the other hand, when you bring this kind of boost of traffic, you will need, at an airport, additional CapEx and additional expenses for giving the correct quality service at the airport, or to comply with the quality standards of our concession. In that way, we are seeing the next negotiation of the Master Plan completely based in the methodology and the regulatory framework that we have. We will see important amount of CapEx just to catch up the needs that the airport had to face in terms of the new passenger growth. Another important key factor that we must understand is that the changes on the fleet, not only the number of planes that Volaris and Viva Aerobus is bringing to the market, will affect not just the total amount of traffic in the future, but also are affecting the peak hours of our terminal airports, of our terminal buildings. This is important to understand because the airports and the terminal buildings are designed in terms of peak hours, and these peak hours are changing really fast, even faster than the growth of the total or the absolute amount of passengers. Let me go a little deep on that. For instance, when we design an area for a gate for a plane, we say: Okay, we would need 150 seats. We need a toilets area with this amount of places. We need this amount of square meters around the gate. In the past, for instance, with the A320s, we used to have an average of plane seats of 150, 170, even 180 seats per plane. What is happening with the new A321s of Viva and Volaris, is that our peak hours changes really fast. In the past, we used to receive in the same gate, 150 plane seats of Interjet, and we are in the same route, in the same hour, in the same gate. Today, we are receiving an A321 of 20 and 45 seats from Viva, from Volaris. That is a complete change in how we design our terminals, and for sure, for the coming years, we'll need to bring additional investments for growing our terminals. In general terms, I would say that that is what we are expecting in terms of the, of the Master Plan, I know you about the impacts on commercial revenues. Yes. Thank you, Raúl. Hi, Rodolfo Ramos. This is Raúl Revuelta. Well, the main effect in the commercial is the exchange rate. Absolutely, the appreciation of the peso is affecting only in our commercial revenues in Mexico, it's around 12%. With the consolidation of Jamaican airports, the total effect is over 20% of the total revenues. It means that we should be growing 12% more of the 20% of the revenue. What we are expecting is that, according to macroeconomics, to have a stabilization of the exchange rate around 17-17.50, and that will impact our budget. That's why our guidance, our total revenue is not growing at the same pace of the traffic growth. That is in general, how will be the effect in the commercial and the consolidation of the Jamaican airports. Talking about aeronautical revenues, let me tell you that the Producer Price Index in Mexico is almost flat. If we compare the last 12 months of June 2022, the inflation was 9%. If we look at the inflation of the Producer Price Index in last 12 months of June 2023, it's 0.9%. It's a big difference, affecting also the effect of the aero revenues. In general, just the effect of exchange rate in the aero revenues is the consolidation of the Jamaican airports. In the other hand, for Mexican airports, we have a fulfillment of 99% of maximum tariff, which benefits in the total and offsets the decrease even due to the inflation and due to the exchange rate. That's it, generally. Thank you, Saúl. We will take our next question from Anton Martin-Coter with GBM. Your line is open. Hello, guys. congratulations on your results, thank you for taking my question. I have just, some follow-ups on the CapEx front. just to better understand the increase in the land acquisition, how much first, how much land was it? Is all of this related to the Guadalajara airport, so it falls under the MDP? Just trying to understand if it has been already talked with the authorities and will form part as an advanced investment on the MDP commitments, or how it will be treated? Hi, Anton, this is Raúl. For sure, it was previously, we received the previous authorization of the authority. This goal will be an advance of the new Master Plan, and we already received the authorizations. We are talking of an acquisition of the total acquisition gonna be close to 150 hectares for the airport. And we are just expecting to finalize the total acquisition of all these lands for the end of this year or merely the first months of the coming year. The most important part here is that all this land acquisition is part of the Master Plan. We already have the authorization of the authority. It's also important to say that this land acquisition ends with an historical problem with the Ejido El Zapote, with around the airport. That is, some remember we were in the middle of legal processes for the last 25 years with that issue. One of the points that is also important is that we are not only acquire the reserve for the future, but also we are finalizing all these legal matters and legal issues with El Zapote in Guadalajara. That's pretty useful. Thank you. Just another one. If you could provide some breakdown on the CapEx deploy during the quarter, mostly on the commercial front? Well, hi, Anton, this is Raúl.. Well, as we have talked in previous conference calls, we have a very ambitious program of commercial investment during the year. We will have the main investment in the construction of the mixed-use building in Guadalajara, which is a very important project with 180 rooms of a hotel. We have more than 5,000 sq m of offices, we have a commercial retail. We also have the expansion of the parking lot in Guadalajara, with more than 2,000 spaces just for in this phase. We have expansion in other airports in terms of parking lots. We have also, and we are opening additional business lines, or business spaces for convenience stores, and we are in the expansion of VIP lounges. All these amount will be around MXN 2.3 billion during the year, including some activities in commercial areas in Montego Bay in that we are also adding space, and we are also adding a rehabilitation of some, of some commercial areas. That's general the commercial. Also, just bear in mind that the MDP in Mexico will be around MXN 5.6 billion during the year. It is the peak of our investment, of our Master Development Program, and we will do investments in Jamaica for around MXN 1 billion. For land will be around MXN 3 billion, if we consider the full project. If you remember, in the beginning of the year, we announced in the guidance the acquisition of land for around MXN 1.2 billion, and now we are in almost MXN 1.8 billion of additional land. That's really useful, Raúl. Thanks. Thanks a lot. Thank you. We will take our next question from Pablo Monsivais with Barclays. Your line is open. Hi. Thanks for taking my question. I am sorry if I, if you answered this already. Just wanted to have an update on the MDP agreement with Jamaica. Is there any update on that? Thank you. Hi, Pablo, this is Saúl. We have almost an agreement. We are going to receive from the authorities a notification. We are in middle of the final conversation just to try to have the formalization of the changes in the concession agreement. It's not yet a official, so we cannot announce it yet. As soon as we have the formal notification from the authorities, we will announce that. We have almost the final stage of this process. Yeah, in a couple of weeks, even one month and a half, we'll have the official, the final, response from the Jamaican Authority, we wanna make it public. Yes, correct. Great. If I can squeeze one more question. On the terminal processing facility, as of now, can we please, a re operations already on normalized? I mean, the increase in fixed expenses are already diluted with the additional passengers, or there is still some catch up process there? I mean, what is currently the normalization timeframe for this? Are we already there, or we're still a few quarters away from that? Thank you. Thank you, Pablo. I mean, in terms of the, of the, of Tijuana airport, the Terminal Processing Facility process or building, we, for instance, I mean, we were announcing that a couple of months, coming back on November, we in November, that many airlines will begin again international operations at Tijuana. Well, it's a great news. One of the key parts that we need to begin to see some also additional international frequencies on routes happening in the, in the terminal building on Tijuana, the new international terminal building on Tijuana, is to have the Category 1 from the U.S. government to the Mexican government. Some of the routes that we have, that the market is there to begin operations, are also on the near area of Tijuana, but in the U.S. market, as could be Oakland, San Francisco, Las Vegas, as the most important markets that are not served from Tijuana. The key point here is gonna be, the terminal is completely ready for the operations of international flights. We are seeing the first plane coming on international again in November. As soon as we have the category, we're gonna see a more dynamic of new routes on the international area of Tijuana. I will say that for Tijuana, and not only this process or building, for the all the area, we are really optimistic because the area is growing in terms of economy, of employment. The natural thing that we're gonna see, or the natural way to see Tijuana on coming in the midterm, would be with interesting growth because the population has more money in their, in their pockets in this moment, just, or with a big impact happening already with due to the fact of the, of the nearshoring in the area. I think that if there will come great news from Tijuana Airport on the midterm and long term, for sure. Great. Thank you, guys. We will take our next question from Stephen Trent with Citi. Your line is now open. Good morning, gentlemen. Thanks for taking the question. Just two quick ones from me. The first question is about your domestic traffic flow. Have you seen any disruption at all in your domestic connectivity with Mexico City metro area since authorities started pushing some traffic to Felipe Angeles Airport? I would say, this is Raul. Not yet. We are seeing that the flight to Felipe Ángeles is opening, and it's in the process of the ramp up for more openings. What we are seeing, if we see the complete market of the Mexico metropolitan area, that is Felipe Ángeles, plus the Mexico City Airport, plus Toluca Airport, we put all together, I would say that increasing the traffic is really a low digit, around 3%-4%. I would say that, at least for the moment, we are seeing some kind of gradual shifting from Mexico City Airport to Felipe Ángeles and even to Toluca. In general terms, I would say that the area, we need to see it like a whole, the three airports, and we are seeing that it's aligned with this low digit growth in general terms. Okay, that's great. Thanks very much for that, Raul. Just one other very quick one. A little bit of a follow-up to Rodolfo Ramos's question earlier. When you think about the totality of the movements in the Mexican peso against the US dollar, sort of any high level sensitivity as to what's the impact on EBIT margin for every 1% or 5% movement in the peso against the US dollar? Thank you. I will go through this. First, in terms of the revenue, we are thinking, we are talking about around 20% of the total revenue that in some way is impacted by the appreciation of the peso. In general terms, I will say that in the expensive side, that in some way could offset some part. The biggest part of the expenses in Mexico, taking out the Jamaican for sure, for the case of the Mexican airports, the expenses are mainly in pesos. We don't really have, you know, some kind of offset, because one of the questions that everybody say, Okay, if you have some kind of decrease on revenues due to the fixed rate or the appreciation of the pesos, but you got in some way compensated with some savings in the, on for imports or some kind of things on our services. The truth is that the airports are mainly business really high on efforts of personnel, not only airport directly personal GAP, but also personnel from security, for maintenance, for cleaning. I would say that we are in the middle of a moment where we have a big impact coming from the reviews of the minimum wage in Mexico, with increase on some benefits, on holidays, on the PTU, on labor law, these kind of things. What we are seeing, at least on the coming, at least part of this year and maybe the coming year, is some pressure coming from the labor market in our expenses, in MXN. For sure, on the area of the revenues, it will depend a lot of what will happen with the central bank in Mexico and the rates. If we will begin to see some kind of depreciation of the MXN on the coming months. I will say that we are just in the middle of that sandwich, that will some way give us some pressure to the, to the margins. It's exactly. We have two effects in revenues. One is the Producer Price Index affecting aeronautical revenues in Mexico. is offset by the fulfilling of the maximum tariff at 99%, which is good. We have the appreciation of the peso of around 12%, affecting the 20% of our total revenues. As Saul Villarreal said, in terms of expenses, we don't have a significant contracts being nominated into dollars. I will say that around 99% of the total expenses in Mexico is nominated in pesos, we don't have any compensated effect. Okay, that's super helpful. I really appreciate that, guys. We will take our next question from Gabriel Himelfarb with Scotiabank. Your line is open. Hi, thanks for the call. Just a quick question about cargo. We saw that cargo units decreased year-over-year, so can you give us a bit of color on why it was a decrease? Also, can you provide us a bit of color on how much capacity will be added to the Guadalajara Airport once the planned investments are finished? Thank you. Thank you, Gabriel. Coming to the cargo, as you perfectly said, the cargo is decreasing, and it's mainly decreasing in Guadalajara Airport. What is important to understand is what is really happening with the cargo, is in the cargo industry, it's like two kinds of cargo. One that is called wet cargo and dry cargo. Dry cargo are mainly electronics and this kind of high-value cargo that are increasing or growing a lot in Guadalajara due to the nearshoring, our traffic in the electronic, the dynamic, the industry dynamics on the area. But on the other hand, the wet cargo that are mainly fruits, vegetables, flowers, meat, all this kind of production is decreasing, but the interesting here is that you could not mix wet and dry cargo in the same belly of a plane. What is happening is that all the electronics that have a much higher yield for the cargo airlines is moving or changing the trend for offer of additional offer for wet cargo. Saying on other words, the total volume on the Guadalajara Airport cargo is increasing because the value of the cargo is increasing. The planes are going fully with electronics, and they are not moving the same level of fruits and vegetables that used to have. It's just, I would say, a temporal move until the airport has additional capacity and additional planes and additional fleet to absorb the wet cargo that could not be in the same plane that the dry cargo. I mean, it's like a general explain what is happening in Guadalajara. What is interesting is that when you review the results of the yields of the cargo, it's increasing and it's in a historical point right now. I mean, the value of the cargo in the airport is in the, in a record, the value, not the volume. I mean, it's a general explain of that. And in terms of the capacity, how much capacity we added to Guadalajara Airport? I mean, the most important part of adding capacity during this master plan is related with the air side, because we are putting on all operations the second runway. That will give us around 65%-70% additional capacity per hour on the runways. We also expand our aprons for commercial, for general aviation. We also add all the, all the big area for hangars in the airport. All these movements of the general aviation and hangars to a new land in the airport, will give us the chance to begin the construction of the second terminal building on the coming year. The idea of the beginning of the construction come in coming year is that the new terminal will be on operation after three years, before we, after we begin with this construction. We are thinking that, around the end of 2026, we're gonna have the second terminal building on operations. Another part that will bring additional capacity to the airport of Guadalajara right now is related with the parking lot. In December, we will open the first 2,000 additional spots for the parking lot. That will be a great relief to the area, to the experience of our passengers in the airport, but also to the commercial revenues, specific on the parking lots. Today, we are 100% low factors when we talk about the parking lot in Guadalajara Airport. This additional 2,000 spots would give us the chance to capture additional demand that we are not getting right now. In general terms, that are the main capacity that will be added to Guadalajara in the coming months. Okay. Once the capacity is added, that 65%-70% is added, how much time will it take to reach such capacity until you have to add even more capacity? For how much will that additional capacity be effective? Okay. I mean, on theory, because, again, it depends on the peak hour, the size of the plane, so there are many more variables to answer that. It's not like a plane or flat answer for that specific point. But when we have the second runway on operations and we have the second terminal, the terminal number two also operating, with both of these assets, we wanna have around 37-40 million passengers capacity. Eh, that is an important part to understand, that we could depends on the demand and depends on how fast could grow in the coming years, the traffic. The idea is that we wanna be really close to the 40 million passengers in terms of the capacity when we end with all the, all our Guadalajara plan in the on the coming master plan. The other point interesting to understand, because, in some way always is important to remember, that when you have a bigger building or a bigger aprons or bigger everything, runways, in the future, you will need to see, in some moment, increases on cost because you have more areas to clean, more areas to maintain, but also the CapEx, because you're gonna have bigger reposition of capacity on the coming years. The AT systems you could have it on operation 7- 10 years, you will need to change some of the, for instance, the air bridges that have, normally operates only 10 years. The thing is, we are expanding our capacity, but that one never gonna mean you will not have additional CapEx or additional CapEx requirement in the future. It's just to have in mind for, I would say, everybody. Okay, thank you very much. We will take our next question from Andressa Varotto with UBS. Your line is open. Hi, good morning, everyone. Thank you for taking my question. I have two on my side. The first one is if you could provide an update on how are the constructions of the mixed-use space in Guadalajara going, and when can we expect it to be operational? My second question is on the international traffic in the leisure destination. we are seeing with and Puerto Vallarta in the last month, more to flattish to slightly dropping. I was wondering, what is your view, and what's behind that? Thank you very much. Thank you, Andressa. 1st, in terms of Guadalajara, as far as you say, the 2nd runway gonna be on operations on the 1st quarter of the coming year. The hotel, the building office, and the mixed-use building will be operating in January of the coming year. The parking, the 1st stage of the parking lot expansion will be operations also in December of this year. The terrace, that is, a big expansion of the food and beverage area of Guadalajara Airport, gonna be on full operations on November of this year. That I would say the biggest one. For sure, the new hangars area will be fully operating on November of this year. That talking about the construction work in Guadalajara. For the second one, what is happening with Cabo and Vallarta, a slight increase on passengers. I will give a step back for 2019. When we compare, for instance, May of 2023 versus May of 2019, we have an increase of 37% on the amount of seats for the region, for both, for Cabos and for Vallarta. That was a completely boost on the capacity that in some way put a lot of offer in an airports for one day to another. In that moment, it was mainly related for a strategic decision for the U.S. airlines that was not operating to Europe and to the Caribbean in the middle of the COVID crisis. They shift a lot of their seats to Mexican destination of Cabos, Cancun, or Vallarta. That give us this big peak or increase on passengers. I would say that it's natural to see some flat months until the destination completely digest all this big amount of seats. I will put it in other way. It's a great news that all this additional capacity that the U.S. carriers shifted from the Caribbean to the Mexico markets are still in place today. That would be my first view. I would say we catch it for the long term. What in the first stage was a temporal shifting of capacity. What we could expect is a couple of flatter months, and around one year, we expect to begin to see again an increase on seat capacity, and it's also related with the hotel and key capacities, auto room, key capacity on the markets. We will begin to see the opening of new hotel development, and gonna be the Cirque du Soleil hotel at the first quarter of 2025. That will bring to Vallarta a big amount of additional keys. All the new developments on Cabo, in the way to Cabo Pulmo. I mean, the key point here is that the market at Cabos and in Vallarta is really healthy in terms of yield of the airlines, yields of the hotels, and we will now see gradually additional offer of hotels coming to the area that will bring us additional passengers in the mid term. Perfect. Thank you very much. We'll take our next question from Alain Macias with Bank of America. Your line is now open. Hi, good morning, and thank you for the call. Just one question on your guidance, on traffic guidance. I guess this implies that you're expecting single-digit year-over-year growth in the second half of this year, and I just wanted to understand the drivers behind this. Is it mainly a more challenging comparison base, normalization of traffic? Are you expecting also a decrease in GDP growth? Also if you're seeing any other factor as a stronger Mexican peso, making Mexico less attractive for U.S. tourists, or any other factors? Thank you. Thank you, Alan. I mean, I would say that the first part is the second half of this second half of the year, we're gonna have a most difficult, more tough comparison versus 2022. It's important to remember that during the second half of 2022, for instance, were the first months that we begin to see positive numbers of Guadalajara, for instance. What we are gonna see on the second half of the year is a comparable, a more tough comparables, tough comps in traffic, in general way. Also, for sure, we're gonna have some pressure on the winter season, mainly in Cabos and in Puerto Vallarta, related with the Mexicans could begin to be a really some kind of extension than other destinations in the Caribbean, for instance. The last part that we need to see happening is the additional fleet coming from Viva, it was the additional planes that will be from Viva and Volaris, which gonna happen more to the end of the year than in the summer. Saying that, all the mix of this change of different variables, is giving us some numbers closer, so around 7%-8% for the second, an average of the second half of this year. I mean, in general, there that are the specific drivers of what will happen on traffic for the coming months. Yes, in terms of, this is Raúl, Alan. In terms of the GDP growth, we do not expect this acceleration. On the contrary, we expect to maintain the performance of the GDP in the first half of the year. As Raúl explained, the effect on the traffic is not because the GDP, it is because the comps of the previous year. The peso will be less attractive for Americans, yes, for sure, but we are sure that there is an effect in the passenger traffic trends from international, not only because the currency, but also because the second home effect that we have seen in the last years. Many Americans are having a second homes. It's more attractive, the beach destinations, for Americans in general. We saw a boom of real estate in our beach destinations. We do not expect any narrative effect from the, from the stronger peso. Thank you. What are the upside risks for traffic in your airports? Are you seeing Mexico recovering Category 1 for the U.S. authorities? Is that something that could happen this year or not? Is Guadalajara benefiting from nearshoring? If you're seeing that as a medium, long-term driver for Guadalajara? Thank you. I mean, it's happening. The first, the best way to see how the nearshoring is happening in Guadalajara, is the vacancy on the industrial park is almost 0. I mean, everything that is on development in terms of industrial parks, is already digest by the market, and it's a big part on development of industrial parks happening even really close to the airport in the El Salto area. We think that all the nearshoring effect is beginning, and we could see it right now in Guadalajara happening, mainly in the electronics manufacturing. That are the factories and some of the plants that have been operating in Guadalajara for the last 10 or 20 years are expanding their lines of operations for expand their production. I think that we are seeing a coming months or years of directing results for the economy of Jalisco. Category 1? Well, regarding Category 1, we're still at the last quarter of this year in terms of the public information of Mexican authority, that it could happen at the end of this year. Thank you. Once again, that is star and 1 if you would like to ask a question. We will pause for a moment to allow further questions to queue. We will take more questions at this time. Hi, thank you. We have two questions related with the land acquisition in the webcast. The first one is from Bruno Amorim, from Goldman. He's asking if, will this additional CapEx of land acquisition be included in the MDP? Yes, it was included as an authorization in advance for the Master Plan coming. We already received authorization, and this amount of land acquisition will be count for the calculus of the new Master Plan, of the coming one. Thank you, Raúl. The other one is from Roddy Seymour-Williams, from Brown Advisory. Unless the land purchase falls into 2024, has there been any changes to 2024 CapEx plans? Would you still expect a similar CapEx per passenger as you previously expected in 2023? Is it likely for the next MDP also? Yes, I mean, the only main change on our CapEx plan was related with the land acquisition. We are still seeing for the coming master plan, the same level of CapEx per passenger that we have seen on this. Thank you, Raúl. I believe that this is the last question in the webcast, so I will turn back the call to the operator. We will take our final question on the line from Fernanda Recchia with BTG. Your line is open. Hi, thank you for taking my question. Very quick here on my end. Just wanted to hear the latest update from AMLO's intention to reform the federal laws. We know that Congress is expected to resume activities in September, so just wanted to hear your updated thoughts on this topic, and also if you expect this to bring some impact on your next MDP revision? Thank you. Hi, Fernando. We haven't heard nothing from the authorities regarding the initiative changes that were announced in last March. We will be looking forward any change, and as soon as we have more information, and in case it affects or has some potential affectation to our positions, we will do in some statement. For now, we don't have any additional information. They said in April that for September, they will send back to the Congress. For now, we don't have more information. In the case for the next MDP, we do not expect any change for the revision of the MDP or the maximum tariff determination. The formula is pretty clear, the regulatory framework is pretty clear. They have seen the, our first numbers. We will continue with this process that takes around 2 years. We do not expect any change on that regard. Great, thank you. We have no further questions on the line at this time. I will turn the program back over to our presenters for any additional or closing remarks. Thank you, everyone, for joining us today at our second quarter results conference. The team remains available to answer any questions you may have. Please enjoy the rest of the day. Thank you very much. This does conclude today's program. Thank you for your participation. You may disconnect at any time.