Good day, everyone. You're on hold for today's GAP conference call, and we'll be starting shortly. Please stand by as we continue admitting additional participants. Thank you. Good day, everyone, and welcome to GAP's conference call. At this time, 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. Now, it's my pleasure to turn the call over to GAP's Investor Relations team. Please go ahead. Thank you, and welcome to GAP's second quarter 2025 conference call. Prior to introducing GAP's Management Team, I would like to take a few moments to read the forward-looking statements as described in the financial disclosure statement. Please be advised that the information shared today may include forward-looking statements. These may not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, any information discussed is based on several assumptions and factors that could change, causing actual results to materially differ from the current expectations. For a complete note on forward-looking statements, please refer to the quarterly report. Thank you so much for your attention. I'd like to present our speakers today: Mr. Raúl Revuelta, Chief Executive Officer, and Mr. Saúl Villarreal, Chief Financial Officer. At this time, I will turn the call over to Mr. Revuelta for his opening remarks. Please begin. Good morning, everyone, and thank you for joining us today. I'm pleased to be able to share with you GAP's key operational highs and financial highlights for the second quarter of this year. Overall, it was a solid quarter marked by continued growth in revenue, EBITDA, and net income. This was achieved despite ongoing headwinds due to macroeconomic issues and FX volatility. Let me begin with a discussion of total passenger traffic. We reached 15.8 million, representing a 4.1% increase if we compare it to the same quarter of 2024. It is also important to mention that eight new routes were added this quarter: seven domestic and one international, which brings us to 21 total new routes so far this year. As you mentioned, we are still expecting to announce additional routes and frequencies during the second half of 2025. In this regard, we have already announced additional frequencies and new international routes starting in November to Canada, including services from Guadalajara to Montreal, Toronto, and Calgary, from Puerto Vallarta to Toronto, Ottawa, and Hamilton, and from Montego Bay to Halifax and Ottawa. Canada continues to be an increasingly relevant market to LISU and BFR, especially during the winter season. These new routes will not only expand our network but also enhance our ability to capture seasonal demand and strengthen our position in key international markets. That said, market conditions change rapidly. As you know, we may choose caution when looking ahead at the upcoming traffic trends. Thus, we will closely watch any changes as they occur and make adjustments as needed. Mainly, our concerns include the stricter U.S. migration and enforcement policies under the current administration, which tends to discourage travel among the BFR international passengers' base. By our estimates, the segment represents approximately 38% of GAP's international traffic. As a result, what we see is that a portion of these travelers may opt not to travel outside the U.S. in order to avoid any potential complications with their immigration status. We believe this could impact international traffic, specifically in the U.S.-Mexico routes. Overall, we expect to maintain our initial annual guidance as previously announced. Having said that, revenue generation excluding IFRIC 12 grew by 30.6% year- over- year, reaching MXN 8.2 billion, driven by a 26.4% increase in aeronautical revenues and 41.8% increase in non-aeronautical revenues. Excluding the acquisition of the cargo facility, it represents a solid 14% increase. This strong top-line performance was mainly supported by the implementation of tariffs that took effect in March 2025. The continued pace of depreciation, which averaged around 13.6% versus the second quarter of 2024, as well as a 4.1% total passenger traffic increase across our 14 airports. On the non-aeronautical side, commercial performance was solid. Revenues from business lines operated directly by GAP increased by 113%, driven by the consolidation of the cargo and bonded warehouse business. Third-party operated business also grew by 10.7%, with significant contributions from food and beverage, retail, duty-free, ground transportation, and timeshares. EBITDA increased by 31.1%, reaching MXN 5.5 billion, with an EBITDA margin of 67.1%, excluding IFRIC 12. As we discussed in previous quarters, the margin reflects the operating cost integration of the new business, such as bonded warehouse business and the hotel, which, while contributing positively in absolute terms, have lower individual margins. The cost increase during the quarter reflects the impact of higher operational expenses. Additionally, maintenance expenses increased by 57.3%, related to the airfield improvements, the opening of new operational areas, as well as the operation of the jet bridges and the air buses. As such, those previously managed by third parties must now be operated directly by GAP due to the new regulations. Despite the higher pressure on the cost of services, our focus remained on controlling costs while at the same time ensuring that service quality across our airports remains top-rate. Operating income increased by 30.4% and net income by 17.9%, reflecting GAP's solid underlying fundamentals. Turning to our financial position, as of June 30, we held MXN 9.7 billion in cash and cash equivalents. During the quarter, we paid the MXN 2.5 billion GAP 2021 bond, the first tranche of dividends approved in the last shareholders' meeting, and additionally, we secured a MXN 3.4 billion credit facility from Banamex. These funds were used to concentrate short-term debt with Banamex and Degrovea on a five-years loan. We continue to actively manage liabilities and maintain a healthy balance sheet with a net debt/EBITDA ratio of 1.8x. Let me now touch briefly on CapEx. During the first half of 2025, GAP execute capital investments of about MXN 12.8 billion in line with our annual plans of 13.3 billion. This quarter, the investments were mainly focused on the international phase of key projects, with early-stage construction activities already underway. These include works on both airside infrastructure and commercial areas. Looking ahead, we remain cautiously optimistic, while peso volatility and U.S. macroeconomic conditions may impact discretionary travel. We are confident that our diversified airport portfolio and resilient domestic markets position us well to finish the year strong. I would like to mention that at the shareholders' meeting held last April, a dividend of MXN 16.84 per share was approved for forward payment throughout 2025. The first tranche was already distributed in May, with the remainder scheduled for the second half of the year, reinforcing our commitment to delivering value to shareholders while supporting growth through this [discipline] investments. We are focused on continuing to execute our investment plan while prudently navigating traffic and maintaining the operational and financial excellence that we are known for. We are confident that our diversified revenue base and solid financial position will support the accretion of long-term value shareholders moving forward. Before concluding, I wish to mention that, as we informed during the previous conference call, we continue to pursue strategic expansion opportunities. As such, the outcome of the Turks and Caicos tender process was not yet announced, and we are waiting on that. We also continue to evaluate our participation in the potential acquisition of CCR Airports assets. Thank you again for your time. Operator, please open the line for questions. At this time, we'll open the question and answer session. If you'd like to ask a question, please press star one on your phone now, and you'll be placed into the queue in the order received. You may remove yourself from the queue at any time by pressing pound one. Again, to ask a question, press star one, and we'll pause for a moment. Our first question comes from Stephen Trent from Citigroup. Please go ahead. Good morning, Raúl. Good morning, Saúl. Thanks for taking my question. Appreciate the color on the potential inorganic opportunities with Turks and Caicos and CCR. When you look at the broader environment, is there a lot else out there? I recall Barbados was pushing, doing something, and that seems to have stopped. Do you see these opportunities as relatively rare in terms of what else you might be able to buy? Thank you. Thank you, Stephen. I mean, the airports assets, the ones that we are pursuing in some way, are always the ones that have this potential future growth in passengers, but also, let me say, the correct level of possible profitability on the asset. In that way, I would say that there's, in all the Latin America and the Caribbean, there will be some different opportunities, but not necessarily all of these opportunities will have the correct return that we are looking for. I will close saying that the correct assets would be in some way not a lot, as we see in the market. Say in other words, today, we are analyzing some of the rare assets that in some way have the correct return for or could have the correct return for GAP. Great stuff. That's very helpful, Raúl. Appreciate that. Just one quick follow-up question. Apologies if I missed it. I recall that there was some opportunity for you to do something with a hotel in the Guadalajara Airport. If you could just refresh my memory where things stand with that potential. Thanks. Thank you, Stephen. I mean, the hotel in Guadalajara is doing pretty good. I mean, we have our first year of operation on the first week of April. Let me say that we are achieving a really interesting level of tariffs in one hand, in average around MXN 2,500 in average. And also, we are getting the occupancy rate around 80%. For our first year, I would say that it's a really great beginning of operation of our first hotel. Great color. Thank you again, Raúl. Our next question comes from Pablo Monsivais of Barclays. Hi. Raúl, Saúl, Ale, thanks for taking my question. My first one is about the tariffs. As of now, how much of the authorized tariff increase have you already incorporated? What should we expect in terms of further adjustments going forward? Thank you. Pablo, could you repeat it? I mean, we have a loss of communication for a second. Yes. I was referring to the tariffs. As of now, how much of the authorized tariff increase have you already incorporated? What should we expect in terms of further adjustments going forward of the tariffs? Hi, Pablo. This is Saúl. As we mentioned in the previous conference calls, we are seeing how the market trends, and we will try to make it in different stages. The first one was already implemented in last March, and we are expecting to have in January 2026. We are analyzing if it's possible to have another one during 2025. That is complicated to say now, and it's complicated to see because of the decrease in training traffic. We are waiting to see what is the trend, considering the immigration action from the U.S. government. That could imply a little decrease in terms of the BFR market to our airport. We will analyze it, but what is pretty sure is to have the second adjustment at the beginning of 2026. Just for [crosstalk] Yeah. I mean, the main idea would be that, I mean, trying to close as close as possible to 90% of fulfillment of this year. For sure, in the coming year, we are trying to do an important adjustment. Just for a reminder of everybody, it is important to mention that the fixed rate and the possible appreciation of the peso in some way are pressuring the fulfillment of the maximum tariff. That is another variable to review really closely in the coming months. Of course. Kind of a follow-up to this, have you seen this particular negotiation, airlines being much more vocal or pushing back harder in terms of tariff increase, or has it been business as usual? I would say that. Normally, nothing different, I would say, in the market. It's not only of Mexico. It's an international, I would say, trend that always, in some way, the airlines would be more vocal about any changes on the tariffs of an airport. I'm seeing, Pablo, that still in the same way that in the past, I'm not seeing any, I would say, change on how vocal are the airlines about the possible change on tariffs. Perfect. Thank you. Our next question comes from Fernanda Recchia from BTG. Hey, Raúl, Saúl, Ale. Thank you for taking my question. Two here from our side as well. The first, I just wanted to dive deeper on the traffic trends. Yesterday, Volaris mentioned a stabilization in the softness of demand in the cross-border region by mid-Q2. Just wondering if you have seen the same trend and if we should anticipate an improvement in the second half of this year. Second, I just wanted to dive deeper on the inorganic growth that you mentioned. If you could share with us any timeline for the answers from Turks and Caicos and the CCR process. Also, I wanted to understand if you have appetite for the whole portfolio of CCR or just the international airports. Thank you. Thank you, Fernanda, it's Raúl. In terms of the traffic trends. Yeah, we are seeing that after some changes on the migration policies under the Trump's administration, we saw some decrease on number of passengers in BFR routes as could be some of Guadalajara-Los Angeles, Morelo-Los Angeles, Morelo-Oakland, the most, I would say. Biggest BFR routes. Saying that, I think that day by day, it is more clear for our passengers and for the BFR market which would be the possible policies. And they are, I think, could begin to feel more, I mean, comfortable to fly in the coming months as soon as they know that clear rules about coming back to home, that the green cards are working as always for coming back, that they are not seeing cancellation of green cards on the border, and this kind of thing. I would say that I am in the same way that Volaris mentioned in the conference call, that we expect that some of the passengers that in some way changed their plans for flying to Mexico because of all the changes of migration policies, for today, they have more clear information, and they will finally fly in the coming months. Again, it is something really changing day by day. It is that is important to have in mind. The other part, I would say, that fits in the, still be the, I would say, the elephant in the room, is that we continue to not have complete information about the fleet or the ground fleet of Viva Aerobus and Volaris, mainly due to the Pratt & Whitney engines. I would say that one of the key factors for understanding the trend on the coming months and the coming year will be when all these planes will come back to fly again. That will be an important part to understand on the coming months. In terms of the inorganic growth, we are expecting and continue expecting the answer for Turks and Caicos, and we are expecting that in some moment during this year, we are going to have the final decision for that government. For the case of CCR, we are still on the analysis. I mean, for the moment, the way that the company has released the opportunity is for all the portfolio, but we are analyzing asset by asset. As soon as we are ready to make a formal position or a possible bid, I mean, all the market will know. I would say that we are analyzing all the different assets that are in the portfolio of CCR. Okay. Thank you very much. Our next question comes from Guilherme Mendes of JP Morgan. Hey, good morning, Raúl. Saúl, thanks for taking my question. The first one is a follow-up on the Motiva/CCR's portfolio. You think that assuming that you buy the whole portfolio, that would require some kind of new equity injection, or you'd be comfortable to increase your leverage for a period of time? If that's the case, if dividends could be impacted somehow. The second point, it's a question related to what Volaris mentioned yesterday on the conference call about unbundling the airport fees. Our understanding is that there's no impact to GAP or any of the airport operators, but just wanted to confirm this understanding. Thank you. Thank you, Guillerme. In terms of the CCR portfolio, I mean, we're still on the analysis, but even with that, I would say that we have a really healthy balance sheet, and the numbers that we are working with about this potential transaction would not include injection of capital. We think that we have enough space on our balance sheet, if that is the case, on the number that we are thinking for this possible asset. In general terms, we are not thinking on any kind of injection of capital for this specific transaction. In terms of the separation of the TUA, I mean, it's something that, for instance, Viva Aerobus have implemented more than four years ago, and even Volaris have implemented for some time ago also. I mean, it's just another flexible way for our passengers to acquire a ticket for flying. We are not seeing any, I would say, any big difference trend on that because it has been on the market for the last years. We really don't see any kind of or potential change on the trend of traffic because this possible change on Volaris went to sell the tickets. That's very clear. Thank you, Raúl. Next, we have Jens Spiess of Morgan Stanley. Hello. Yes. Thank you, Raúl and Saúl. I have basically, two follow-ups on answers you already gave. One is on the question that Pablo did on the maximum tariff. I mean, based on our calculations, we get that you could increase tariffs by around 15%-20%. Does that number make sense to you? Just to see if we are in the ballpark. The second one is on BFR demand. Obviously, the situation remains quite fluid and uncertain, I guess. First of all, we're seeing quite strong capacity growth in the fourth quarter for you, so almost 10% of seat capacity being allocated according to schedules. That's quite strong. Are you seeing the same? Is here the key variable maybe the load factors of the airlines? I don't know. What are your thoughts on the fourth quarter and how much capacity is being allocated to your airports? Thank you. In Mexico, by the way. Thanks, Jens. I mean, in terms of the maximum tariff, I mean, we need to perfectly understand in the coming months how going to be the, I mean, the forecasting of the effects of the dollar and also the inflation on the product price index for ending the final number for how big could be the increase on tariff for the coming year. I would say that in some of our airports, remember that the maximum tariff is a tariff independent for each one of the airports. I would say that for some of our airports, we will try to achieve a double-digit increase on passengers' fee. From some others of our airports would be just inflation. It will depend on the airport. I would say that in general terms, that would be the answer. In terms of the demand, yes, when we see OAG and all the, I mean, the asking of slots for the last quarter, we are seeing a double-digit increase in terms of capacity for airlines in the Mexico airports. I mean, it's great, and we are really optimistic. The thing is to really follow the load factors of the airlines for those moments. I would say that it will depend on how the Mexican economy is doing at the end of the day and also if there are any kind of changes on its policies on migration from the U.S. that in some way could affect the BFR market. In general terms, I would say that we continue to be optimistic about the last quarter of the year, seeing the additional capacity that different airlines are bringing to our airports, for sure in the domestic market, but also related with the leisure market and other markets that in the past have not been, I mean, completely exploded in our airports. That could be the additional seats from Canadian markets that we already talked for Vallarta, for Montego Bay, and for Guadalajara, but also other lines that are beginning to develop for the first time, as for instance, the service of Copa from Panama to Los Cabos. That is completely a new market that could be in some way that we're going to see in the coming year. I would say that is great news for Los Cabos, that has the opportunity that bringing all these beyond passengers, beyond the hubs of Panama and also South America coming to Los Cabos. We are still optimistic about the last quarter and the next half year of this year. All right. Perfect. Yeah, yeah, that's very clear. If I may, one quick follow-up on the first question. As of the second quarter, are you at around 85% of the maximum tariff that you're allowed to charge? Does that make sense for you, that number, 85? Depends on. For sure, on a ll the needs of the airport. I mean, if we just see it as a general number, it would be correct. Yeah. Just remember that on the first six months of the year, January and February, we have zero increase on tariffs. The next six months is going to be a little different. Got it. Got it. All right. Perfect. Thank you, Raúl. Next, we have Pablo Ricalde of Itaú. Hi, good morning, GAP. This question is more maybe for Saúl because we have seen a huge increase in depreciation in the past couple of years. So I don't know how this affects your dividend policy or your needs of leverage to fund your CapEx program. That's my first question. The other one, it's on the Madrid route. We have been rumors that Iberia is planning to open a Guadalajara-Madrid route. I don't know if you can confirm that. Hi, Pablo. It's correct. The depreciation is increasing due to the capitalization of the assets. Also, we have to consider the acquisition of the cargo bonded facility that is included in the full half of this year. That's why the increase also into the depreciation and amortization. But that should change how you fund your CapEx program, or we should continue to expect that most of the CapEx program will be funded with debt? We will continue the same. Okay. Perfect. Hi, Pablo. Related to the Madrid-Guadalajara with Iberia. A couple of weeks ago, Iberia announced the beginning of the route of several routes in Latin America and, for the case of Mexico, in Monterrey, related with the operation of a new plane, the 321 Large, that could achieve Monterrey and some other markets with a more, I would say, smaller demand. In that way, also, they announced potential increase or potential opening of a route from Guadalajara to Madrid. Today, this has not been concluded, the negotiation, or I would say, announced by Iberia. In the same moment that they announced the Monterrey to Madrid route, they announced also the potential route for Guadalajara. For the moment, it has not been, I would say, outrighted or closed yet. Yeah. Okay. Yeah. Perfect. Thanks, Raúl. Thank you. Next, we have Jorge Vargas with GBM. Hi. Good morning. Thank you for taking my call, my questions. With growing CapEx, higher concession fees, and a larger debt balance, how are you thinking about sustainability of distributions in the medium term? Should we expect a more cautious dividend policy? My second question is, traffic at Montego Bay has continued to soften now that you have renegotiated that concession. Are there any initiatives in place to reactivate growth and strengthen its connectivity? Thank you. Hi. Hi. Hi, Jorge. This is Saúl. The effect of the concession fee affects directly to our EBITDA. Considering the CapEx that we are making also in the base of our tariff increase, tariff increase related to our revenue increase. At the end, we believe that our distributions will continue in the same. The effect, obviously, of the concession fee over the EBITDA is affecting directly. That is offset by the acquisition of the new cargo facility. At the end, I would say that in general terms, the EBITDA margin will be around 66%-67.7%. In some way, we are having a little effect on that EBITDA level. In terms of the traffic, in MBJ, we are having some effects due to the—Raúl, you want to—yeah. I mean, talking about in the last year, we saw, and it was a trend not only in Montego Bay, but I would say that mainly in all the Caribbean, we saw a decrease on number of seats, mainly from American Airlines, and routes mainly from New York and Miami. If you remember, just after the COVID emergency ends, the biggest airlines in the U.S., the biggest U.S. airlines, just pushed a huge amount of additional seats on leisure. Generated a really big increase on traffic in mainly all the Caribbean. What we saw in the last year is, I would say, a reaccommodation on some of these additional offers that they pushed into the leisure market. We are seeing, and we are optimistic on what we're going to see for the case of MBJ in the coming years. First of all, different announcement of additional hotel and queue rooms in the area, it's a really important, yeah, a really important effect coming on coming years. Also, the tourism minister, the tourist board of Jamaica is doing a really important job trying to bring back some of the different—and attacking some of the different markets. In general terms, what we are seeing in the coming years of MBJ is, after all these decreases of number of seats that we saw in the last year, we think that we just touched the base, and the coming months and years would be of increasing number of seats. On the long term, we're going to see also an important increase of number of rooms that will bring additional tourists to the island. We are really optimistic on the long term for Jamaica. Thank you. Thank you. As a reminder, everyone, you may ask questions either through the webcast or the phone lines. To ask a question on the phone, press star one. Our next question comes from Abraham Fuentes of Banco Santander. Hello. Good morning. Two questions from my side. The first one, will you give out more color about the non-aeronautical or not covering for passengers going forward? How much space is there to continue growing, or when we can expect normalization? The second question is about the U.S. Department of Transportation claiming that Mexico has engaged in anti-competitive behavior. Is there any opportunity or risk? Are Are you seeing due to that? I mean, it's not the commercial revenue per passenger. For sure, Abraham, we have a big jump due to the acquisition of JWTC, the cargo facility. But also, we have experienced an important increase on cargo per passenger just as we open new infrastructure, for instance, the expansion of Terminal 1 in Guadalajara, the expansion of Tijuana, the expansion of Los Cabos. The next, I would say, jump that we're going to see on passengers per traffic, it will depend on the opening of new additional areas that is related with the new master plan. Let me put it this way. For instance, in the new master plan, we will have a complete brand new Terminal 2 for Guadalajara that will be operating for the end of 2028. At that moment, we're going to see an important jump on commercial revenue per passenger in that airport, for instance. For example, we are expecting on the first quarter of 2027, the opening of the new terminal building of Puerto Vallarta Airport, that also will bring a great potential for an increase on commercial revenues per passenger. In that way, the new additional space that we could generate from the new terminals and the expansion that will come on this new master plan will be completely aligned with the next jumps on the commercial revenue per passenger. In terms of the Mexico-U.S. new aviation policies, I mean, hard to see on this between all the different movements that is happening on the bilateral relationship with the U.S. In my point of view, it's not only what could happen on the aviation policy. It's a more wider discussion about the bilateral relationship between both countries. In terms of what was announced, it will depend how many months will still place the need of an additional authorization for new slots in the U.S. for the Mexican carriers. Because for the moment, I mean, we just hear it. We have a big part of the fleet of some of the Mexican airlines grounded for the program of the P&W engine. On the really short term, I'm not foreseeing any kind of impact for this change on the aviation policy from U.S. to Mexico. In the long term, it will depend if this authorization continues and how hard or difficult it will be for the Mexican carriers to open a new route in the U.S. For the moment, I really see more concern about a more broad bilateral relationship between countries rather than just the U.S. aviation policy. Okay. Perfect. Very clear. Thanks. Next, we have Alain Macías, the Bank of America. Hi. Good morning. Thank you for the call. Just two questions or clarifications. I guess the exposure of GAP Airports to the U.S.-Mexican airlines, just thinking about the possible restrictions from the U.S. Department of Transportation, is that 38%? Is that the exposure? Also, on your guidance, I guess you are maintaining your guidance, right? Thank you. Yeah. I mean, we are seeing a possible impact around 38%. It's more related to the BFR market because the leisure market is, I mean, completely operated for U.S. and Canadian carriers. It will be an impact on the leisure market, but for sure, it could be an impact on BFR. Also, it is important to remember that, for instance, a couple of years ago when the U.S. government decreased the category for Mexico, for the Mexican authority in aviation, we saw a really important increase in traffic in Tijuana for the passengers, the BFR passengers, walking through the CBX. Because at the end of the day, all the Southern California area, catchment area that is covered by the Tijuana Airport through the CBX, could be connected even without the authorization of any additional services to the U.S. for a Mexican carrier. They could put their fleets or their capacity for all the Southern California market through the Tijuana Airport. That happened a couple of years ago when the decrease on the category, if you remember at that moment, for instance, Tijuana Airport used to be even bigger than Monterrey Airport for a couple of years and was related for that effect. In some way, again, our portfolio in some manner could help us for any potential slowdown of additional routes or services from Mexican carriers in the U.S. We have no further questions at this time. Raúl and Saúl, back over to you for any additional or closing comments. Thank you once again for joining us today for our second quarter results conference. Please contact our investor relations team with any additional questions you may have. Have a great day, and thank you for your attention. That concludes our meeting today. You may now disconnect.