Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings Q2 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. To ask a question during the session, you need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. As a reminder, this call is being webcast and recorded on August 10, 2023. I will now turn the conference over to Daniel Tapia, Director of Investor Relations. Sir, you may go ahead. Thank you, James. Welcome everyone to our Q2 earnings call. Joining us today are Pedro Heilbron, CEO of Copa Holdings, and José Montero, our CFO. First, Pedro will start by going over our Q2 highlights, followed by José, 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, copaair.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. 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 Q2 earnings call. Before we begin, I would like to extend my sincere gratitude to all our coworkers for their commitment to the company. Their continuous efforts and dedication have kept Copa at the forefront of Latin American aviation. To them, as always, my highest regards and admiration. Today, we're pleased to report solid results for the Q2. Our unit revenues continue to benefit from a healthy demand environment in the region, while our unit costs came in lower year-over-year, mainly driven by a lower jet fuel price and our consistent focus on delivering low ex-fuel unit costs. Among the main highlights for the quarter, passenger traffic grew 15.4% compared to the same period in 2022, outpacing our capacity growth of 13.6%. This resulted in a load factor of 86.1%, a 1.3 percentage point increase versus Q2 2022. Passenger yield came in at $0.133, or 2% higher than the Q2 of 2022, resulting in unit revenues or RASM of $0.12, a 2.7% increase compared to the Q2 of 2022. Our unit cost decreased 17%, mostly as a result of a 35.9% year-over-year drop in our effective jet fuel prices. On an ex-fuel unit cost basis, we came in at $0.059, almost 1% lower compared to Q2 2022. As a result, our operating margin came in at 24.1%, 18 percentage points higher than in the Q2 of 2022. On the operational front, Copa Airlines delivered an on-time performance of 91.6% and a completion factor of 99.8%. Once again, the highest in the Americas and one of the best in the world. Additionally, in July, Copa Airlines was recognized by Skytrax for the 8th consecutive year as the best airline in Central America and the Caribbean. This award and our leading operational numbers are a testament to our employees' continuous focus on our customer satisfaction. With regards to our network, we recently announced the start of a new service to Barquisimeto, Venezuela, in October of this year. With this addition, we will serve 81 destinations in 32 countries in North Central, South America, and the Caribbean, as we continue strengthening and solidifying our position as the most complete and convenient hub in Latin America. Turning now to Wingo. In June, Wingo continued to optimize its network with the start of operations to three new domestic Colombia routes from Bogota to Barranquilla, Pereira, and Bucaramanga. Additionally, in July, it started service from Bogota to Caracas, Venezuela, and one seasonal route from Cali to Aruba. With these additions, Wingo is currently operating 35 routes with service to 23 cities in 11 countries. Now turning to our current expectations for the remainder of the year. We continue to see a healthy demand environment in the region going forward, and although we're seeing a recent increase in jet fuel prices, we continue to expect strong financial results in 2023. As always, José will provide more detail regarding the full year's outlook. To summarize, we delivered solid Q2 results, and we continue to see a healthy demand environment in the region. We continue growing and strengthening our network, the most complete and convenient hub for intra-Latin America travel. Copa Airlines was recognized once again by Skytrax as the best airline in Central America and the Caribbean, and as always, our team continues to deliver world-leading operational results while maintaining our cost low. Lastly, we're as confident as ever in our business model. We continue to deliver solid margins and low unit costs, while offering a great product for our passengers, making us the best-positioned airline in our region to consistently deliver industry-leading results. Now, I'll turn it over to José, who will go over our financial results in more detail. Thank you, Pedro. Good morning, everyone. Thanks for being with us today. I'd like to join Pedro in acknowledging our great team for all their efforts to deliver a world-class service to our passengers. I will start by going over our Q2 results. We reported a net profit for the quarter of $17.5 million, or $0.44 per share. However, excluding special items, net profit came in at $154.5 million, or $3.92 per share. Q2 special items are comprised of an unrealized mark-to-market loss of $137.5 million related to the company's convertible notes, and a $500,000 unrealized mark-to-market gain related to changes in the value of financial investments. We reported a quarterly operating profit of $194.7 million and an operating margin of 24.1%. Capacity came in at 6.8 billion available seat miles, 13.6% higher than in Q2 2022. Our load factor came in at 86.1% for the quarter, a 1.3 percentage point increase compared to the same period in 2022, while passenger yields increased 2% to $0.133. As a result, unit revenues came in at $0.12, or 2.7% higher than in the Q2 of 2022. Mainly driven by lower jet fuel prices, unit costs, or CASM, decreased to $0.091, or 17% lower than our CASM in Q2 2022. Finally, our CASM, excluding fuel, came in at $0.059, a 0.8% decrease versus Q2 2022, mainly driven by lower sales and distribution costs due to a higher penetration of both direct sales and the lower-cost travel agency channels, which were launched by Copa Airlines in September of 2022. I'm going to spend some time now discussing our balance sheet and liquidity. As of the end of Q2, we had assets of close to $5.1 billion, and in terms of cash, short and long-term investments, we ended the quarter with over $1.3 billion, which represents 39.6% of our last 12 months' revenues. As to our debt, we ended the quarter with $1.8 billion in debt and lease liabilities. It came in with an adjusted net debt to EBITDA ratio of 0.5x. I'd also like to take some time to discuss the settlement of our convertible notes. As we announced last month, the company has decided to redeem the 4.5% Convertible Senior Notes due in 2025 on September 18, 2023, in accordance with the terms established in the indenture governing the notes. The conversion rate has been established to be 20.1603 shares per each $1,000. This rate includes an additional 0.4751 shares related to the event being a make-whole fundamental change. We decided to perform the settlement via the net share method, whereby we will settle in cash an amount equal to the principal amount of the notes, and the remainder is to be settled via the issuance of the corresponding number of shares. Turning now to our fleet. During the Q2, we received two Boeing 737 MAX 9s to end the quarter with a total of 101 aircraft. In July, we received an additional 737 MAX 9 to bring our total fleet to 102 aircraft. With these additions, our total fleet is now comprised of 68 737-800s, 25 737 MAX 9s, and 9 737-700s. These figures include 1 737-800 Freighter and the 9 737-800s operated by Wingo. Two-thirds of our fleet continues to be comprised of owned aircraft, and one-third of our aircraft are under operating leases. During the remainder of 2023, we expect to receive five additional aircraft, all Boeing 737 MAX 9s, to end the year with a total fleet of 107 aircraft. As for our 2024 fleet plan, preliminarily, next year, we expect to receive 14 737 MAX aircraft, including 2 737 MAX 9s and 12 737 MAX 8s. We've published an updated fleet plan on our investor relations website. I'm also pleased to announce that our board of directors has ratified the third dividend payment of the year of $0.82 per share, to be paid on October 13th to all shareholders of record as of September 29th. As to our outlook, we can provide the following guidance update for the full year 2023. We expect to increase our capacity in ASMs versus 2022 within a range of 12%-13%, and we expect an operating margin within the range of 22%-24%. We're basing our outlook on the following assumptions: load factor of approximately 86%, unit revenues within a range of $0.123, CASM ex-fuel to be in the range of $0.06, and we're expecting an all-in fuel price of $2.95 per gallon. Given this recent increase in jet fuel prices, we expect to be on the lower side of the 22%-24% operating margin range. I'd also like to take this opportunity to assure you that we continue to be focused on our plan to further reduce our unit costs. Our objective is to attain a CASM ex-fuel within a range of $0.058 by the year 2025. Thank you. With that, we'll open the call to some questions. Thank you. We will now conduct the question and answer session. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Savanthi Syth from Raymond James. Hey, good morning. Can I ask on the, on the unit revenue, just, which was lowered, are you seeing any kind of softness to drive that reduction, or, or is kind of something else going on, given that, you know, the Q2 came in pretty strong? Yeah, Savi, how are you? You know, the operating environment is still very robust. We had been seeing a drop in fuel prices, throughout the Q2. There was some movement in our so forward-looking, unit revenues in the coming months. You know, the other, the other item, I think that, that of note that we're, monitoring closely is that there was, an increase in competitive capacity, year-over-year, you know, in the double-digit range. All those factors, I think, were, were taken into account, in terms of what the RASM, was for- is gonna be in the H2 of the year. Fuel spiked over the last couple of weeks, so that's not necessarily fully captured into our unit revenue guidance, given the sudden movement of fuel. It's still somewhat early for Q4, so we'll monitor it closely, but that's how kind of we're seeing it in the close end. And I should add, Savi, that bookings are still strong- Yeah, yeah. For the H2 of the year, or as far as we can see. Yeah, yeah. Right. Still a very robust environment. That, that's super helpful. If I might, on, on the 2024 fleet plan, you know, it looks like even though you've had some MAXs slipping, you've taken the MAX count up. Just any early thoughts on, on how you're thinking about capacity growth into 2024, especially given that your utilization in 2023 is, is quite strong. Right. We're going to receive 14 aircraft next year. A few of those moved from, from this year, but doesn't make a big difference because moving from December to January doesn't really have an impact in capacity. You can do the math in terms, we're still not guiding for a capacity growth in 2024, but I think it's not hard to figure it out. Yes Given, given the 14 aircraft we're receiving, next year. Most are gonna be MAX 8, two are gonna be MAX 9. We see demand, and we have opportunities for all of those airplanes to fly at our current, utilization, daily utilization numbers. Yeah. Plus, a full year effect of the aircraft that are coming in. We still have five aircraft left to be delivered this year, so those airplanes, most of it's of their growth is gonna show up actually in 2024 as well. There's, you know, I think there's I think we're seeing still the environment, the operating environment very, in a, in a very positive way. Yes, in terms of capacity, there should be very healthy growth next year. Helpful. Thank you. Our next question comes from Duane Pfennigwerth from Evercore ISI. Hey, thanks. Good morning. On the convert buyback, can you just walk us through how your share count and interest expense are gonna change, following that buyback? Maybe talk about some of the reasoning behind, why, you know, September makes sense to do that. Yeah, Duane, I'll, I'll start. I'll actually start with the second part, which is the, the reasoning. You know, first of all, since April, we've had the, the ability to call the, the convert. You know, I think that our calculus is that at this time, the economics of the deal worked out for us versus letting it mature. Then thirdly, I would say, you know, the board, when it made its decision, they simply, I think it was, they wanted to get the, you know, the pandemic behind us, and I think that also influenced the decision, even though, as I mentioned before, it from an economic perspective, financial perspective, it made sense for us to execute the call at this time, even with the make-call effect, et cetera. In terms of the accounting-wise, first, first of all, you know, we're electing to settle it via the net share method, whereby we'll pay the principal in cash, $350 million in cash, and the remainder in shares. That ultimately, the valuation of that will depend on a 40-day, 40 trading observation period that, that ends in the second week in September. So that will ultimately determine what, what ultimately, what the number issued of shares that, that we would have coming out at that, at that time, the day of the settlement. So that's still pending to be determined. Then finally, in terms of how it affects the interest expense, the interest expense will go down by two factors. Number one, of course, the coupon goes away, the 4.5% coupon on the $350 million. In addition to that, there is a portion, I would say maybe it's about a $7 million per quarter figure that was a portion of our, of our, of our interest expense that was not non-cash. That was, that, that will basically go away during, after the settlement. That's, that's basically the way that it will work out. That's really helpful. Is there any relationship between this step and, and what your dividend policy might look like, you know, into next year? Does this make it, you know, I guess, more likely or less likely that you just continue your dividend policy into 2024 based on a look back to 2023 earnings? No, I think our policy, our dividend policy, You know, just to restate it, it's to distribute 40% of the prior year's adjusted net income, and I think that's, that's, you know, will continue. Yeah. The conversion make no difference. Okay. That's very clear. Thank you. Thank you, Duane. Our next question comes from Guilherme Mendes from JP Morgan. Good morning, Pedro, José, Daniel. Thanks for taking my question. I, I have two. One, it's on, on capacity and demand. If you could split a little bit between leisure, VFR, and corporate, how you're seeing demand. I recall on the last conference call, you mentioned about corporate still not fully picking up. How have you seen that during the, the Q2, and what are the expectations for the second part of the year? Yeah. The second question is. Sorry, Pedro, go ahead, and then I'll ask the second one. No, go ahead. Go ahead. Second question. Thanks. What's the second question? That question, it's regarding yield management. You're discussing about the unit revenue. Just wanted to better understand, how do you think about your ability to increase prices according to fuel prices? How fast could you do that, I mean, according to competition and market trends? Thank you. Yeah. Okay. First, first question, business traffic, corporate traffic has improved somewhat in the last number of months, so the trend is positive. The numbers are still not much different to what we have shared in the recent past, where about 40% is leisure and 30% is VFR, the rest is a combination. It's business, but it's business and corporate. Some of the business we move in the region is not necessarily tied to corporate accounts. I mean, it has improved somewhat, but not in a significant way. The breakdown is similar to what I just mentioned, which hasn't changed much. However, leisure is behaving in a way that. Well, you, you, you can see our results. Demand is strong and, and yields are healthy, we're fine with the way traffic has developed. In terms of revenue management and, and pricing, what we show, and I'll let José back me up, but what we showed in 2022 was that we were able to cover the increase in jet fuel prices. It didn't happen right away. It did not happen in the Q2 when jet fuel, it spiked up. It did happen in the H2 of the year. This year, we'll see. Yeah, it's about a two to three month delay. Now, of course, our revenue management folks always are pricing to the, you know, the maximum the market could bear, but usually takes, there's a little bit of a lag between fuel spikes and when RM catches up. That's very clear. Thank you, Pedro and José. Thanks a lot. Our next question comes from Steven Trent, from Citi. Good morning, gentlemen, and thanks very much for taking the time. Just two quick ones for me. The first, definitely appreciate, you know, the CASM ex-fuel guidance out to 2025 and what you're seeing for this year. Any high-level view to what extent Wingo could be a, maybe a higher weighting of the operations relative to 2022? It's, we, we don't see that in the short term. Maybe medium term, not sure. Wingo is still a small, small part of our capacity, and revenues. You know, Colombia has been a challenging market for all airlines operating in that country. I think, I don't think we're gonna see a lot of, of growth, from the Wingo segment. We have flexibility, too. You know, I think part of our, our plan internally is to have a lot of flexibility in terms of how we, you know, put out capacity in the two brands. Yeah, I think in general terms, more, more of the growth is gonna come from the airlines side. Yeah. Appreciate that, guys. Just one very quick, second question, just a follow-up to Savi's question. When we think about the, the, the RASM, and consider the amount of, you know, updation you're doing, was there any stage length adjusted noise, and the, and the pivot for the 2023 RASM? Just out of, out of curiosity. Say, no. I would say that there is not, not that much. I mean, there was. I mean, I, I would say a little bit, actually, you know, I would say it's a, it's a tad, but it's not significant, I would say, Steven. Okay. Appreciate. Sorry. You know, what I would add just to the RASM questions that we received, that 2022 is a tough comp because it's psyched up. I mean, RASM, the trend was not 100% typical what we saw last year. You know, after the pandemic, not all demand patterns have been exactly the same as they were before. It's getting back to something more similar to what we're used to. But last year, in a way, was a transitional year in capacity and demand, and the whole thing. The comps are a little bit, eh, more difficult in that sense. I think what's important is that our bookings are still quite strong. Yeah. Okay. Very helpful. Thanks very much, guys. Thanks a lot. Our next question comes from Ugh! Rogério Araújo from Bank of America. Hey, good morning, Pedro, José. Thanks, for the opportunity. Congratulations for the results. A couple here. One is just a clarification. Did you say that the whole fuel that is spiked in the past couple of weeks, it's not fully included in the guidance? How far would you be from the current oil price curve? Also on that matter, what does your guidance implies, where- if you consider the current oil price curve, will you- No, no, yeah, sorry. Still be in the range of 22%-24%? That's the first one. No, no. Thank you. Yeah, that- thank you for allowing me to clarify. The fuel guidance that we have is essentially the curve today. What I tried to say is that the RASM, given that the fuel has, has increased so quickly, the RASM itself, we have not been able to adjust the, the RASM from an RM perspective over the last couple of weeks. The fuel, as it is, and that $2.95, is as we're seeing the full year all in price for us, for, for the entire 2023, with the latest curve that what we have from earlier in the week. Sounds great. Very clear. My second question, if you could give us some information on which, which regions are the... You, you see the strongest bookings, which are the weakest at this moment? Maybe always strong, as you say, but can you kind of differ a little bit which ones you are more excited about and which you're not? No, like, like usual, there's always, you know, there's always a region that might be weaker, and, and they take turns. It's not always the same, but, but across the board, it's very similar right now. Yeah. Sounds good. Thank you very much. Thank you, Rogério. Our next question comes from Michael Linenberg, from Barclays. Yeah. Hey, it's Mike from Deutsche Bank. From Deutsche Bank, of course. Not a problem. We know it. That was news to me, too. I'm like, wow, you know. I mean, everyone around here looks like D.B., but anyway, anyway, I guess two, two here. I think Pedro- You should have known, right? Oh, I'm always the last to find out about these things, so yeah. Anyway, on your commentary page, or just about, around unit revenue, you know, you talked about an increase in competitive capacities and something along the lines of double-digit range. Are you, maybe more specifically, is that capacity in and out of Panama City, or is that what you're seeing in some of the markets where you participate in the connecting flows? Right. So, so, yeah. First, what I, what I'll say is that, what has happened is that, I would say the rest, our peers in Latin America have caught up to their pre-pandemic capacity. It took them a little bit longer for, for different reasons, but everybody is, is, is caught up now. No, this is not Panama capacity. There's, there's really no, no significant change or no change at all maybe to OD Panama capacity. You know, as we know, as you know, we, the, we play in, in the, in the connecting field. Mm-hmm. So this has to be just with, with other hubs and, and also direct, non-hub capacity in the region. Okay. Then just, just to kind of update us, when you look at your split today, local versus connect, are you sort of 40/60, 45/55? I always knew that it was pretty, well, not evenly split, but, but where are you from a local versus connect basis today? Yeah, we're, we're, we're more in the 70/30 range. Yeah. 70, 70 connecting, 30 local. Yeah. Okay. Okay, that's super helpful. Just my last question, you know, after the convert gets taken out, your liquidity will come down. The question is, what, like, when you think about target liquidity, how should we think about it maybe as a% of LTM revenue? Maybe how that fact factors into your leverage ratio of 0.5. You know, what, what metrics should we sort of think about, you know, in the longer term, both from a liquidity perspective, what's the appropriate amount post-pandemic, and where we should target from a leverage perspective? Thanks for taking my questions. Yeah. Mike, you know, I think, well, first of all, I think the leverage will, would essentially be, the same after- Mm-hmm The settlement. Mm-hmm. So I, I think we're comfortable in the, the sort of very strong position that we have. Mind you, we have a set of investments coming along, a lot of aircraft coming and, you know... Mm-hmm There's demand capital, and so we, we are, are, you know, we have some commitments coming, coming forward, and that will be used for growth, basically, right? And then we have the, our, our dividend policy, which is still very active. But in terms of, of total liquidity, you know, we could end up in the year in, in around $1 billion, you know, so, so that's, I think, something where, where we're comfortable with that level, for the size of the business and given all the, the commitments that we have going forward in terms of, of, you know, aircraft, aircraft coming our way. Okay, very good. Thank you. Yeah. Thank you, Mike. Okay, our next question comes from Pablo Monsivais from Barclays. Hi, Pedro and, and José, thanks for taking my question. Just- I thought you were with. Okay, Pablo from, okay, from Barclays. Yes, yes, yes. Pablo, they, they swapped, they swapped the firms, Pablo, all right. Barclays. Okay, just a question on the, on the comment that you just said about leisure partners being very strong. To what extent do you attribute this strength to, local currencies, appreciating over the H1? Can we just extrapolate that strong local currencies to strong leisure, or there are another fundamental changes in the patterns of demand? Thank you. Yeah, Pablo, I, I would say- I will start by saying that there's been an interesting mix in terms of our leisure travel dynamic. First of all, there was a lot of U.S. origin. Historically, of course, we've been more anything, bringing people from South America to the Caribbean and to North America. That sort of reversed a little bit after the pandemic with the strength of the U.S. dollar, and, and now you're seeing more, you know, more Americans coming south. That, you know, with, but with a recent sort of strength of the real and the Colombian peso, then, then you're seeing some of that flow reversing a little bit again. There's now we're kind of in a flux sort of moment where there's a, there's a little bit of everything into, into the mix of our leisure travelers, and which is, I, I think, very, very good in terms of the sources that we have for demand. Okay, thank you. Mm-hmm. Our next question comes from Helane Becker, from TD Cowen. Thanks very much, operator. Hi, team. Hope all is well. One question I have is, in terms of connecting traffic and, and kind of a combination of traffic and freight. With the Mexican government forcing airlines to move from, you know, one airport to another airport with cargo, I'm wondering if that creates an opportunity for some of the other airlines that connect freight to shift their capacity from Mexico City to Panama City, where you would potentially be a beneficiary of that. Yeah, we, we have not seen any signs of movement in that direction, and it's not something that we've given a lot of thought to. Our freight capacity is also limited, limited to the belly of our passenger aircraft, which is limited, and our single 737 freighter. We don't think we would see any benefit from that if it was to happen. Okay, that's very helpful. I just have one clarification, José, on the fleet plan. You think you said you were gonna end this year with 107 aircraft? Yes. Is it right. Okay, then next year, based on the delivery schedule of 14, that means, what? 121 aircraft for next year? Yeah, Elaine, you know, we still have a set of aircraft that are under lease that are, that are, you know, some of them could be extended. Our plan right now is that there will be a lease airplane that will be returning. Our expectation as of today, is that we could end the year 2024 with 120 airplanes in total. It will be, the 14 deliveries minus 1, lease return. Got it. Could there be any other lease returns? No, at this time, I think it's, it could be just, just, just this one. Okay. All right. That's very helpful. Thanks, guys. We could renew, we could renew it also. Yeah, yeah. As I was saying, our view, our view as of today is that, it could... You know, we're still relatively flexible in that end. Yeah. Okay. All right. Well, that's really helpful. Thank you. Thanks. Our next question comes from Daniel McKenzie, from Seaport Global. Well, hey, good morning. Thanks, guys. A couple questions on 2024. Following up on Wingo, I know you're not planning to grow it much, but how many aircraft are you planning for the entity next year? It, it looks like it's about 16% of the seats today, and my thought is that Wingo, as a percent of the overall system, could trend down as, as you grow the mainline. Well, they're operating nine aircraft. Right now, at the end of the year, it will be nine out of 107. It's not that that number could not grow, next year. It could. We have flexibility, as, as José mentioned, but they could also stay at nine. It really depends on how the Colombian market develops and what are the opportunities there. Most of the growth will continue being from Copa Airlines. Yes, their share of the total will come down under that premise, which is what will most likely happen. Second question here, you know, for those of us that, you know, don't know all the smaller markets in Latin America, I'm wondering if you could just elaborate a little bit on the growth next year. You know, just some high-level thoughts on, on mix, you know, growth in existing markets versus new markets, long haul versus short haul. Whatever you can share would be great. Yeah. So it's gonna be a combination. Well, it's gonna be mostly new frequencies, additional frequencies to currently serve markets. We should also keep in mind that in the last two years, we've started, like, eight or nine new routes in the region, and some of those will get more capacity. Again, plus the markets we've been operating from before. A lot is gonna be. Most of it is gonna be new frequencies, plus the full year effect of what we started this year will also impact capacity growth next year. We still believe we'll probably open a few, two, between two and four new destinations. There, there's still a lot of opportunities, in, in the whole continent, in, in the Americas, and we're always, evaluating, new markets. We also have nine cities from pre-pandemic where we have not restarted service, so we also have that. We'll be restarting service, to some of the cities that, that we still haven't gone back to, from pre-pandemic. We have that. We have new destinations and mostly additional frequencies to currently serve markets, so lots of opportunities as we see it. Yes. Good. It's terrific. Thanks, Pedro. Thanks. Our final question comes from Duane Pfennigwerth from Evercore ISI. Hey, thanks, thanks for taking the follow-up. I appreciate it. I just wanted to ask you about this relationship between fuel prices and fares and what you see competitively. I mean, the timing may have been a little bit off here, but as I remember back in the day, you had a tremendous ability to offset higher fuel. There was a fair bit of fuel surcharge in the mechanism for your competitive fares. Could you just touch on... Remind us the fuel surcharge mechanism and if the same is true today relative to the past? Thanks. Yeah. so we no longer do fuel surcharges as, as such, and we are not in a fuel environment or a fuel price environment like we were back in 2007, if I, if I can recall, when, when fuel surcharges were, were necessary. But we have, we have priced the fuel increases in the past successfully. That goes in the fare, not in a fuel surcharge. That, that's what happened in 2022, during- especially during the H2 of 22. We'll see where fuel goes right now, and then, and then we'll try to price it in as much as we can. It depends on, on competitors also and, and, and, and what they do, of course. We're always very competitive. There's more capacity than there was in 2022. As I mentioned before, capacity is pretty much back to pre-pandemic levels for all airlines, so that might, might play into all of this. That's why, in the guidance, in the detail of the guidance José shared, we're not getting ahead of ourselves, and it's kind of how we see it right now, but we always try to do better, of course. Yep. Okay. Thanks for the thoughts. Thank you, Duane. To turn the conference back to Pedro Heilbron for closing remarks. Okay, thank you. Thank you, all. This concludes our Q2 earnings call. Thanks for participating, and as always, thanks for your continued support. Have a great day, and we'll see you in the next one. Thank you. Ladies and gentlemen, thank you for your participation. This concludes the presentation. You may now disconnect and have a wonderful day.