Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings' second quarter earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, you will have to press star then 1 on your touchtone phone. As a reminder, this call is being recorded on August 5th, 2021. I will turn the conference over to Daniel Tapia, Director of Investor Relations. Sir, you may begin. Thank you, Stephanie, and welcome everyone to our second quarter earnings call. Joining us today are Pedro Heilbron, CEO of Copa Holdings, and Jose Montero, our CFO. First, Pedro will start by going over our second quarter highlights, followed by Jose, who will discuss our financial results. Immediately after, we will open the call for questions from analysts. Copa Holdings financial reports have been prepared in accordance with International Financial Reporting Standards. In today's call, we will discuss non-IFRS financial measures. A reconciliation of the non-IFRS to IFRS financial measures can be found in our earnings release, which has been posted on the company's website, copa.com. Our discussion today will also contain forward-looking statements, not limited to historical facts that reflect the company's current beliefs, expectations, and/or intentions regarding future events and results. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially and are based on assumptions subject to change. Many of these are discussed in our annual report filed with the SEC. Now I'd like to turn the call over to our CEO, Mr. Pedro Heilbron. Thank you, Daniel. Good morning to all, and thanks for participating in our second quarter earnings call. Before we begin, I'd like to thank all our coworkers for their commitment to the company and recognize their continuous efforts and dedication to keep Copa at the forefront of Latin American aviation. To them, as always, my utmost respect and admiration. As many of you know, Raul Pascual decided to take on a new professional challenge and left the company earlier last month. We're very grateful for the more than 15 years of outstanding work he dedicated to Copa. I would also like to take the opportunity to welcome Daniel Tapia, our new Director of Investor Relations. Daniel has over 12 years of experience with the company in many areas, including airports, scheduling, and most recently, fleet and network planning. We're very confident in Daniel's ability to lead our investor relations group. As you may remember, in our last earnings call, we discussed two diverging themes happening in Latin America. On the one hand, some countries, including Panama, were experiencing a downward trend in infection rates, which led to fewer travel restrictions and an improved demand environment. On the other hand, several other countries continued to struggle with the virus, which led many of them to reimpose air travel restrictions and/or new health requirements, affecting demand for international travel. As of today, the story has not changed much. Due to the increase in COVID-19 cases, several countries have maintained, and in some cases, increased travel restrictions, which has affected our ability to reinstate capacity. On the other hand, markets without significant restrictions, mainly to and from the U.S. and certain leisure destinations, have continued to recover, which has allowed us to increase capacity quarter-over-quarter while also growing load factors. In the month of June, we successfully transitioned our Hub of the Americas in Panama back to a six-bank connecting structure, which enables cost efficiencies and lets us continue adding back frequencies and destinations. Moreover, we started to reactivate some of the aircraft sent to temporary storage during 2020. Going forward, we assume ongoing vaccination efforts will have a positive effect on COVID-19 infection rates in the region, which we expect will lead to the relaxation of travel restrictions and a faster demand recovery, supporting the capacity deployment for the second half of the year. Now I'll highlight some of our second quarter results. In terms of capacity, we reached 48% of second quarter 2019 ASMs compared to 39% in the first quarter. Load factor came in at 77%, which is an improvement of 8 percentage points compared to the first quarter. Revenues increased by 64% over the previous quarter to $304 million as a result of the additional capacity, higher load factors, and improved yields. The additional capacity also allowed us to reduce our ex-fuel CASM from $0.085 in Q1 to $0.076 in Q2. We reported an operating profit of $8.7 million in the quarter. Excluding a $10.4 million passenger revenue adjustment, the company would have reported an operating loss of $1.7 million. Cash accretion averaged $21 million per month, which was better than our expectations, primarily due to stronger sales in the quarter. We ended the quarter with a cash balance of $1.3 billion and total liquidity of over $1.6 billion. In terms of our operations, and despite the complexity imposed by the multiple biosafety protocols, we're pleased to report an on-time performance of 92% for the quarter, and a flight completion factor of 99.5%, which again places us amongst the best in the world, and is a true testament to our employees' continuous commitment to providing a world-class product to our passengers. Turning now to Wingo, we can report that it's now operating 6 737-800s, compared to the four it operated pre-pandemic. During the second quarter, Wingo continued its regional expansion with new flights from Panama to San Jose, Costa Rica, and from Bogota to Lima, Peru. Since Q1, it's been operating more capacity than in 2019. To finalize, I'd like to reaffirm that we have a proven and strong business model, which is based on operating the best and most convenient network for intra-Latin America travel from our Hub of the Americas, leveraging Panama's advantageous geographic position, with the region's lowest unit cost for a full-service carrier, best on-time performance, and strongest balance sheet. Going forward, the company expects that its Hub of the Americas will be an even more valuable source of strategic advantage. I'll turn it over to Jose, who will go over our financial results in more detail. Thank you, Pedro. Good morning, everyone. I hope that you and your families are safe and doing well. Thanks for joining us today. I'd like to join Pedro in acknowledging our great Copa team for all their efforts and great spirit during these many months of the pandemic. I will start by going over our second quarter results. Our capacity came in at 2.9 billion Available Seat Miles, which amounts to about 48% of the capacity operated during the second quarter of 2019. Load factor came in at an average of 77% for the quarter. We reported a net profit of $28.1 million, or $0.66 per share. Excluding special items, we would have reported a net loss of $16.2 million, or a loss of $0.38 per share. Special items for the quarter are comprised mainly of an unrealized mark-to-market gain of $33.9 million related to the company's convertible notes issued in 2020, and $10.4 million in revenues related to unredeemed tickets, which correspond to sales made during 2019 and early in 2020. We reported a quarterly operating profit, which came in at $8.7 million. On an adjusted basis, not including the $10.4 million in unredeemed ticket revenues, we had an adjusted operating loss of $1.7 million for the quarter. It's worth noting that we achieved this result while operating at 48% of our pre-COVID-19 capacity. Unit costs, excluding fuel for the second quarter, came in better than the first quarter at $0.076 per ASM, driven by quarter-over-quarter capacity growth, as well as our continued focus in maintaining the savings achieved during the past year. We continue with our cost savings initiatives, and we are targeting to achieve our unit cost below $0.06 once we reach 100% of our pre-COVID-19 capacity. Aside from our cost performance, our operating results for the quarter were driven primarily by our yields, which at $0.119 on an underlying basis came in 1% better than those in Q2 2019. We also achieved cash accretion of approximately $21 million per month for the quarter, which is ahead of our expectation and driven mainly by increased sales during the period, as well as some timing on operational cash outflows. As a reminder for our cash accretion measure, we exclude all extraordinary proceeds from asset sales, but include CapEx and the payment of our financial obligations. I'm going to spend some time now discussing our balance sheet and liquidity. As of the end of the second quarter, we had assets of close to $4.1 billion, and our cash short and long-term investments ended at $1.3 billion. We also ended the quarter with an aggregate amount of $345 million in unutilized committed credit facilities, which added to our cash, brought our total liquidity to more than $1.6 billion. In terms of debt, we ended the quarter with $1.6 billion in debt and lease liabilities, similar levels to the ones reported for the end of the first quarter. Turning now to our fleet. During the second quarter, we finalized the sale and delivery of three Embraer 190s, and in the month of July, we delivered the last remaining Embraer 190 aircraft in our fleet. During the month of July, we also entered into an agreement for the sale of 6 737-700s, and decided to keep in our fleet the remaining 6 737-700s. We ended the second quarter with 81 aircraft, 68 737-800s, and 13 737 MAX 9s. In these figures, we include our 737-800s that were sent to temporary storage during 2020. During the fourth quarter, we expect to receive two more 737 MAX 9s, considering we're now keeping the 6 737-700s, we expect to end the year with a total of 89 aircraft. As to our outlook for the rest of 2021, we're still in an uncertain and unpredictable demand and operating environment. As such, we will not be providing full year guidance. Based on preliminary results for the month of July and the current state of the demand environment and air travel restrictions, we can provide the following outlook for the third quarter of 2021. We expect capacity to be approximately 70% of Q3 2019 levels at about 4.5 billion ASMs. Revenues to be approximately 58% of Q3 2019 levels at about $415 million. We expect our CASM ex-fuel to be approximately $0.0660, a decrease of 14% versus the second quarter. Given these operating assumptions, an all-in fuel price of $2.15 per gallon, as well as the incremental CapEx that we will incur during the quarter to reactivate our fleet, we expect to be cash neutral for the third quarter. Thank you, with that, we'll open the call to some questions. Thank you. As a reminder, if you'd like to ask an audio question, please press star followed by the number 1 on your telephone keypad. Once again, that is star one to ask a question. Your first question is from the line of Duane Pfennigwerth with Evercore ISI. Hey, good morning, guys. This is actually Ray Wong on for Duane. You had mentioned significant travel restrictions being a major indicator for demand recovery, specifically some bright spots in leisure into the U.S. Along those lines, what% of your markets are reopen? Do any countries in your network have a vaccine requirement? Could you provide some specificity for countries that have or don't have significant travel restrictions in place? Okay. This is Pedro here. Good morning. I don't think I have the exact% or numbers, but pretty much every market has some sort of travel restriction. It might be as simple as providing an antigen or PCR test X hours before travel, a negative test, of course. Most countries have that restriction. A few, like Mexico and Brazil, don't, but the rest pretty much have it. Others have quarantine restrictions, like Chile, for example. Where we get the most affected is when countries are restricting the number of flights, like it's happening in Argentina to the whole industry, and a few other markets are also restricting capacity. It's hard to pinpoint, but the open markets like Brazil, Mexico, the U.S. for most origins, not for all, it's not open for Brazil, as we know. Those markets have some Caribbean islands, like the Dominican Republic. Those markets are seeing a faster recuperation or recovery than the ones that have higher restrictions as would be expected. That's helpful. Thanks. Just for my follow-up, as you look across your network, where do you see longer-term structural competitive capacity shifts, whether it be higher or lower? Competitive capacity in the longer term? Yeah, just for the sense of when you see other competitors across your network restructuring, et cetera, going through harsher times. There are a number of our main competitors restructuring under Chapter 11, but we expect them to come out of Chapter 11 with a network that won't be much different to what they had before. Of course, we don't know for sure. We haven't seen the restructuring plans, but we're not expecting major shifts there, if any. There's new competition, of course, from new and existing carriers. They're adding capacity throughout our region. We expect to see more competition in the future, but no major capacity shifts that I can think of. Yeah. No, the only thing that I add to that is that in a post-COVID world, the hub still carries quite a bit of uniqueness, and it has a lot of strength in terms of the smaller markets that we serve. Therefore, I think that we're well-positioned even under the increased competitive influx of some of the low-cost carriers in the region and some of the capacity from the U.S. The reality is that the hub still competes on markets that cannot be served very well on a point-to-point basis. Thanks for the time. Have a great day. Thank you, Ray. Your next question is from the line of Stephen Trent with Citi. Good morning, gentlemen. Thanks very much for taking my question. I am curious, given what we have seen with kind of slower business travel in the Americas, I have had one or two industry contacts mention that they know of plans by specific businesses to try to launch business passenger-only type services. I am wondering if you guys have even seen anything like this or if we are talking about paper tigers here. Just love to get your take on that. Well, our part of the world might be different to others. The distances are shorter, and not everywhere, but in many markets. In our case, we operate mainly in narrow bodies. Of course, we have seen corporate travel slowed down. I would say that corporate travel in our network is about 50% of what was pre-pandemic, and it is recovering a lot slower than VFR and leisure, that in some markets it is getting close to pre-pandemic. What we have heard from a lot of our accounts is that they will start traveling after the summer. I am sure that will depend on the virus also. We are not planning to make any major changes to our product to target a specific market. We have always been almost evenly split amongst leisure, VFR, and corporate, and have a product that can cater to all three segments. What we know is that going forward, there will be more, at least for a few years, until corporate fully recovers, there'll be more weight towards leisure and VFR. We're making sure our costs are going to be lower than before, so we can have the same success, even if there's a little bit more pressure on yields. Okay. Very helpful, Pedro. As a quick follow-up, could you refresh my memory on Panama itself? I know that Panama has been allowing in-transit passengers to pass through the airport with no problems, but for foreigners arriving in Panama, could you just remind me if they have quarantine requirements or anything like that? There's no requirements other than a negative test 72 hours before travel for most passengers from Europe, Latin America, and the U.S. However, certain high-risk countries, mostly from South America and a few from Europe, have to provide the negative test, plus another test on arrival, and then a 3-day quarantine at one of the listed hotels. However, that is about to change. If the arriving passenger from a high-risk country has the negative test, plus is fully vaccinated, then they'll do away with the 3-day quarantine. Okay. Very helpful, Pedro. I'll let someone else ask a question. Thank you. Thank you, Stephen. Thanks, Stephen. Your next question is from the line of Hunter Keay with Wolfe Research. Hey, good morning, everybody. Good morning. Pedro, sometimes I know airlines collaborate on safety and operational issues. Have you seen, from either from afar or through conversations with your U.S. airline counterparts, about any lessons learned that you might consider as you contemplate restarting operations, just to ensure that you don't incur some of the same issues operationally that we're seeing up here happening in the U.S. right now? Obviously, we're now guiding to 70% of pre-pandemic capacity in Q3. We've been spooling up since Q1, actually since Q4 of last year. We've been doing it gradually. Between Q2 and Q3, we're going to be growing 50% in ASM, so it's going to be our fastest redeployment of capacity. We've had a few quarters to get it done correctly, and as you've seen from our on-time performance, at 92% in Q2 and even higher in Q1, we haven't lost a step in coming back with the capacity. We're not cooperating with others, which is your specific question, but we have paid a lot of attention, and we have talked to our industry groups, and we have talked to some of our peers and United that we're closest to from the very beginning, but not right now. Okay. Thank you. Jose, sorry for the modeling question, it could be a nice little factor here. I'm kind of curious about ASMs per gallon. You had a low stage length. You're under 1,200 miles. Obviously, you got rid of the E190s. As you think about the MAXs coming in and the E190s, are you going to be able to keep these ASMs per gallon above 83 or maybe take them even higher over the next two to three years? Yeah, I think the MAX has a fuel performance that is around 13% better than the 800 on a per ASM basis. Therefore, you can certainly assume that as the MAX come into the fleet, that there will be an improvement in the ASM per gallon figure that we will be seeing over the next several months as more MAXs come in. Yeah, the MAX right now represents almost 20% of the fleet. It will become more and more important as time passes and more MAXs come into the fleet. Then the other thing is that you have to also model it on a going forward basis, and the fact that the E190s are gone, and so that also aids in the fuel performance that we're seeing in the business. This is a sustainable level here going forward, you think? Yes. Thank you. We have a next question? Alejandro Demichelis with Credit Suisse. Thank you. Hi, Pedro, Jose, Daniel. Thank you for the call. A quick question on the unitary cost. What are your expectations in terms of CASM ex-fuel. As long as capacity continues to recover, do you believe there might be some structural cost savings once capacity is fully recovered? Where does these structural cost savings may come from? Thank you. Yes, Alejandro. As you saw, first of all, we are providing our guidance for Q3 at $0.066, which is getting very close to our 2019 CASM, and that's only at 30% of our 2019 capacity. It is getting close to the levels that we had pre-pandemic. Our expectations, as I mentioned in my prepared remarks, is that we will achieve CASM below $0.06. That is below where we were at in 2019 pre-pandemic, by the time that we reach 100% of capacity. Where did that come from? Well, first of all, last year, we really worked exceedingly hard in renegotiating our contracts with suppliers, with counterparties that we do business with. We have been very adamant about the fleet changes that we've made, and that provides quite a bit of savings as well on a per ASM basis. We continue on with that. We continue with our savings plans, both in terms of looking for further efficiencies in contracts, IT systems. Overhead, we are a leaner organization than what we were a year ago. It's all about that, and we are confident that as we get back to 100%, we will achieve CASM that will be less than $0.06. Okay. Thank you. Just a second question, if I may. On the decision, what was the rationale behind the decision of keeping the remaining 6 737-700s? Yeah, Alejandro. I would say that reason number one is when we started experiencing a faster capacity recovery or demand recovery than what we expected earlier in the year. That was number 1. Number 2 is that those aircraft, well, first of all, they're owned and paid for, not very expensive. The per seat cost is equivalent to the 800s, and at the same time, they have the same great reliability of the rest of the fleet. The cost of keeping those aircraft, even if it was as insurance, is nothing. The cost of being short aircraft could be very high. We're just hedging our bets. Flexibility for us. Okay. Got it. Thank you so much, guys. Thank you, Alejandro. Your next question is on the line of Savanthi Syth with Raymond James. Hey, good morning. Just on your revenue guidance, it implies a significant kind of yield compression in Q3 compared to Q2, given that your year-over-two year capacity is kind of improving by 22 points on a sequential basis, your revenue is not improving. It's improving on about 13 points. Is that just a function of you're bringing back a lot of capacity and you're just seeing more leisure yields? You are moving from kind of the seasonally weak Q2 to Q3. I was wondering why that was. Yeah. Savi, this is Jose here. Indeed, you very well hit it in the head there. We are adding 50% of capacity Q3 versus Q2, as Pedro alluded to earlier. Traffic is in that same line. It is indeed yields. We are seeing that with a ramp of capacity, there is a gap to simply to allow ourselves to grow. What I would say is that this is not about a quarter, it's about rebuilding the hub. We believe that the ramp-up of the hub and maintaining its frequency and destinations is very important in sort of the future development of it. It is sort of like a transitional quarter. We are seeing that indeed there is a yield reduction on a% basis, especially during the latter part of the quarter. You know what. We'll make adjustments to the capacity if required. We are being very flexible in the way that we are putting out our capacity forward. Makes sense. You addressed this a little bit, I think Pedro earlier when talking about competition. I was wondering specifically just one on Volaris. They've talked about expanding to Northern South America in the medium term and deploying like 18 to 22 aircraft there, either from Mexico, Costa Rica, or El Salvador. Just wondering, you talked about the small market that you serve. Maybe that's the answer here. Just how and to what extent will Copa be able to defend against potential excursions from Volaris into your markets? Yeah. Well, yeah, Savi. Pedro here. You provided part of the answer. We have many competitors. We've seen growth since the pandemic started from both legacy airlines from the U.S., LCCs from the U.S., from Latin America, et cetera. That's not new. The news are kind of been repeating for the past few months. We're focusing on what makes us successful, which is, one, is keeping our costs as low as possible. As José mentioned, we're planning to come out of the pandemic. Hopefully, the pandemic ends one day. We're hoping that when we are back at 100%, we're going to be at below $0.06 a CASM, and we're going to be at pre-pandemic CASM when we reach 80%, which that should not be too far from now. We're also connecting small markets. The strength of our hub is that we connect Over 70% of our markets are markets that are too small to be able to be served nonstop directly. That's not going to change after the pandemic, at least not for a while. It's also hard to stimulate traffic in many markets intra-Latin America, not only because of the size of the markets, but because of how high the airport fees and taxes are. Before you start charging a penny, the passenger has to pay quite a large amount of money. It's hard to stimulate new traffic with those kind of costs. We're part of a strong alliance with United and Star Alliance. We think we have all the pieces in place to remain successful, even though we do expect more competition from many others. Makes sense. Appreciate it. Thank you. Thank you, Savi. Your next question is on the line of Pablo Monsivais of Barclays. Hi. Good morning. Thanks for taking my question. Just kind of a follow-up on the first question. If you were to estimate how capacity recovery was among leisure and VFR, what would it be your best guess? Kind of a related question to that one, to what extent do you think that vaccination tourism helped demand over the quarter? Thank you. Yeah. Okay. Well, I'll start. No, I will start by saying, Pablo, that what we're seeing right now in terms of the breakdown of the type of demand that we have is that, yeah, it's been driven by VFR. I would say that the VFR is almost half of the traffic that we're seeing. Followed by leisure. Leisure is about half, a little bit less than half in leisure. Followed by VFR, about a third. As Pedro mentioned before, business travel is down, I want to say half versus where it was before the pandemic. It now represents maybe 15% to 20% of our total traffic. That's the breakdown that we are seeing right now. Of course, again, the pandemic has taught us that things change over time. This is the picture that we have as of today. In terms of vaccine tourism to the U.S., it's obviously impossible for us to know the reasons people travel for, but there was an increase in to-from the U.S. traffic sometimes towards the end of April, when vaccines were kind of openly available in the U.S. That obviously led us to believe that one thing is tied to the other. We're seeing a slowdown right now. As more vaccines are available in Latin American countries and as people get vaccinated, there's an initial rush, and we expect that to continue slowing down. As you know, we have a very strong network that's not dependent on one particular market or one particular sector. We'll keep on rebuilding our network and leveraging those strengths. Okay. Perfect. Thank you very much. Thank you, Pablo. Your next question is on the line of Bert Subin with Stifel. Hey, good morning, and thanks for the time. Sure. As a follow-up to Hunter's question. Hey, good morning. What is your current upper limit on capacity? If all countries reopened today, restrictions fully removed, what% of your 2019 capacity could you fly? How should we think about your capacity over the next few quarters if things remain as they are today? Clearly, I know you're not giving a guide beyond 3Q, but if we were to assume that nothing changed, is it fair to say that you would continue to add capacity from here? Thanks. Yeah. Pedro here. If we compare to pre-pandemic, let's say to 2019, by the end of 2019, we were operating 96 aircraft. We had 102, that included six MAX nine, which were not operating, were grounded, as we know. In 2019, by the end of 2019, we operated 96 as Copa Holdings. By the end of 2021, we'll have 89 as Copa Holdings. We might still have a few in the desert, which we have to reactivate, that can happen in the first part of 2022. We have five MAX 9 deliveries in 2022. We also have lease returns, which we have to decide how many we're going to return or not. We're guiding now that we will renew some of those leases. Our aircraft are of higher gauge, because we've sold the Embraer 190s. We're operating mostly 800NGs and MAX 9, much higher gauge than the Embraers. Shortly, right now, we will not be at 100%, we can be in the high 80s by the end of this year. Sometime towards the second half of 2022, we could be close to the 100% in ASMs. In terms of costs, Bert, we're not providing guidance for the fourth quarter, but if demand trends sort of go on in the way that we expect them to, our unit costs for the fourth quarter could be in the low $0.06 range. Yeah. Okay, thanks. That's very helpful. Maybe just along the same vein, can you just give us an update on how you're thinking about your fleet longer term? I wish I could find this, but you had a good chart in one of your investor presentations that showed two lines, one going up and down, that just highlighted your fleet flexibility, which has clearly been a nice lever to be able to pull during the pandemic. Demand seems to be proving pretty resilient. Are you starting to refocus maybe on your longer term growth? Thanks again for the questions. Yeah. We're still cautious because it's something we've learned is that this virus is unpredictable, and even the people that know don't really know that much until it happens. We're being very cautious, but at the same time, we've been reactivating our aircraft, bringing them back from the desert at a much faster pace than what we expected earlier in the year. We're even talking to Boeing right now to see if we can move forward some MAX 9 deliveries. We're in those discussions right now, and we have the flexibility of over 20 leased NGs coming due in the next three to four years. That gives us, we could bring forward MAX 9s. We could renew NGs or return NGs. We're going to retain a lot of flexibility in the next three years. We hope to have enough capacity to grow above the ASM levels we had in pre-pandemic. Thank you. Thank you, Bert. Your next question is on the line of Daniel McKenzie with Seaport Global. Yeah. Hey, thanks. Good morning, guys. A couple questions here. First question really ties to the vaccine rollout across your network, the countries you serve versus the expectation for business travel to recover. I think every country's got a different vaccine rollout, of course. If you were to take some kind of average of the various rollouts, I'm just wondering what that expectation for when your markets would be fully vaccinated. Is it early 2022, Brazil by year-end, but for the whole network, early 2022? Is it end of 2022? Does it really tie to an earlier question, sometime mid-next year? Related to that vaccine rollout, what is the expectation? Does business travel recover ahead of that rollout, or does it coincide with it, or lag it? What can you share along those lines? Dan, I'll take the first shot at it, and then I'll let Jose back me up. In Panama, for example, we think that by the month of September, so a month from now, anyone that wants a vaccine will have access to a vaccine. We are about 40% vaccinated right now, but the vaccines are coming in at a very fast pace on a weekly basis, and I think in a month, anyone that wants to get vaccinated will be able to get vaccinated. It seems to be going that way also in Colombia, from what we know. It's just gaining steam in most countries in Latin America. I would hope that by the end of the year, so by the end of the first quarter, the countries will be vaccinated to the degree that the population wants to get vaccinated. In terms of corporate travel coming back, we've heard from some of the major accounts that they'll start traveling after the summer, but we know that it won't be at the same rate than before, in the same percentage as pre-pandemic. Latin America is made up of a lot of small companies and regional multi-Latin American companies, and I think those are going to start traveling probably sooner than the larger international or U.S. corporations. We cannot really predict exactly how that's going to play out. Yeah. I'd just add, Dan, that the business traveler that travels on Copa, there's a big component there of small business owners or people who work for very small companies. We believe, as Pedro mentioned, that those folks will get back in the air in a shorter term than sort of the big corporate accounts. Yeah. That makes sense. That ties to, I guess my second question here, and it's really kind of a two-pronged question. It kind of gets back to, I think an earlier question, Savi, is just on the yield expectation for the third quarter. I'm just wondering if you can help us understand what really happened in the second quarter, were yields initially weaker and then stronger towards the end? How does that tie to the third quarter? If corporate travel comes back, it sounds like that might not be embedded into the third-quarter revenue outlook. Kind of related to that, are there any countries in Latin America looking to Europe as a model for how to open, so requiring a vaccine passport potentially as a way to bypass testing and quarantines? Yeah. I would say for the third quarter, first of all, the yield story in the second quarter was, I think it was mostly towards the latter part of the second quarter, more than in the beginning. I think as a function of several items, as Pedro mentioned before, there was some vaccine tourism to the U.S., but also there was, I think, an opening of certain countries started to open, and especially in the Caribbean and in Mexico. That created, I think that bump in demand that we saw. It was mostly, again, during the latter part of the second quarter. What we're seeing right now is that in the third quarter, specifically, the latter part of the third quarter is where we're seeing that there is a little bit of a yield gap. The important thing here, however, is also that we're putting in quite a bit of additional capacity into the third quarter. I think it's not necessarily a story of weakness, but rather the fact that we are adding capacity into a network, in order to build the network back. I think that's the story related to what we're seeing in the third quarter right now. Europe as a model for opening Latin America, are any countries looking at requiring a vaccine passport? It's been talked about quite a bit. There are trials going on with the IATA Travel Pass. No one has made that decision yet. I would not be surprised, however, if some of that happens, especially as the digital passports get tried out and are proven to be a good method of opening up, a good way of opening up. No one has announced that yet. I see. Thanks for the time, you guys. Thank you, Dan. Thank you, Dan. Your final question will come from the line of Michael Linenberg with Deutsche Bank. Oh, hey. Hey everybody. Hey Pedro. Hi, Mike. In your response to Alejandro's question earlier about holding on to the 737-700s, you gave two reasons. I actually thought that maybe a 3rd reason was that maybe you recognize the importance of having some smaller gauge airplanes around. I think you had mentioned the strength of the Panama hub and the reliance on small markets, I'm just curious, it sounds like that wasn't a consideration. You may be actually potentially looking down the road at maybe a smaller gauge airplane. Just thoughts on that? It's an interesting question. It was not a consideration. However, the 6,700s are going to fly a network made up of the smaller, the thinner routes. Okay. Those aircraft are going to operate where before we had exclusively E190s operating, and that actually adds to the value of staying with the 700s. Okay. Makes sense. How about with respect to bigger airplanes? Your largest airplane is the MAX 9. I was actually surprised to see this. You're flying Miami-Panama or Panama-Miami. I think you're doing now nine round trips, which pre-COVID, I think around the holidays you got to nine round trips. You do have a bit of wingtip flying, where you have planes going out within minutes of each other. It would suggest that the 800s, they're not big enough. I'm not telling you to go buy an A350 or a 787. Would you consider MAX 9s, number one? Number two, tied to that is a lot, you hear IATA talk about a lot of broken itineraries, and I think when I look throughout South America, Latin America, there's been a significant pull-down in service, namely by some of the carriers that are going through restructuring. We've seen a lot of itineraries that have completely disappeared. It does seem like that Copa is in a very good position to maintain those itineraries, maybe not on a nonstop basis, but on a one-stop basis over Panama. I'm just curious if you're picking up some of that share, because again, I almost thought I had to do a double take to see how much frequency that you're running between Miami and Panama now. I suspect that that's not everybody who wants to go to Miami or Panama City. You're taking a lot of passengers into South America because the service isn't there because of the pandemic. Sort of a two-pronged question about the 737 MAX 10 and/or share that you may have picked up in the meantime because of the struggles of competitors in your region. Thank you for answering the questions. Yeah. Mike, so a lot of stuff in your question. I'm sorry. As always. When we think of larger gauge aircraft, I never said in the past, you know us well, we try to keep things as simple as possible, so we can have a simple single fleet as much as possible. Right now, we are a 737 operator, exclusively 737, mainly 737NG 800s and MAX 9s. It's very simple. There's pilot commonality, the whole thing. Sometimes we sacrifice not having the ideal aircraft or the ideal gauge in a few markets in exchange for having the better fleet for the whole network. We're going to keep that mentality. If the MAX 10 is something we're going to bring in, it needs to make sense in more than just one route, more than just Miami, et cetera. We would rather run wing tips in some markets, knowing that that facilitates the having a single narrow-body, very efficient fleet. That's kind of what we're weighing now, always. Commonality, simplicity versus the ideal aircraft for each market, which is hard to do. That's also going to drive any future decision about a smaller gauge aircraft, which was your first question. That same philosophy is going to drive that. In terms of the broken itineraries, we're in a recovery mode ourselves, so we're rebuilding our network and our six-bank connectivity, which started late in June. We'll take advantage of any opportunities that fit that single hub model, but we are in that recovery mode, so I cannot say that we're taking full advantage of everything. We know that a lot of that service will be covered when some of the other carriers come out of their own restructuring. We also want to be rational about that. Okay. Very good. Thanks, Pedro. Thanks, everyone. Thank you, Mike. There are no further questions at this time. Okay. Thank you all. This concludes our earnings call. Thank you for participating. Thank you for your continued support. Have a great day and a great rest of the week. See you next time. Ladies and gentlemen, thank you for your participation. This concludes the presentation. You may now disconnect, and have a wonderful day.