Good morning, and welcome to Arrow Mexico's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. There will be a question-and-answer session at the end with instructions given at that time. For the webcast participants, you may submit questions at any time during the call using the Ask a Question section on the webcast. As a reminder, today's conference call is being recorded. Now I'd like to turn the call over to Ms. Lucero Medina, Head of Investor Relations.

Good morning, everyone. Joining me today to discuss our results are Andres Corneza, Chief Executive Officer, and Ricardo Sanchez Baker, our Chief Financial Officer. Before we get started, I would like to take this opportunity to remind you that during the course of this call, we will present results that are based on our own audited, consolidated Accordingly, the financial results discussed today are based on information available to us as of the date of this call and are not a comprehensive final statement of our financial results for any period presented. We may make forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act regarding future events and our company's future performance. We caution you that several important factors could cause actual results to differ materially from plans and expectations expressed in this call, including the risk factors disclosed in our SEC files. During the call, we will present certain non-IFRS financial measures. We have included a reconciliation and explanation of adjustments and other considerations of our non-IFRS measures to the most comparable measures in earnings release. Both our calls and the earnings release are available on our website. Now it is my great pleasure to turn the call over to Andres Connets.

Thank you Lucero and good morning everyone. We appreciate you joining us today to discuss our second quarter 2020 results. The second quarter was characterized by high and volatile jet fuel prices and uncertainty regarding the impact of the World Cup on traffic, particularly in the corporate domestic market. I want to congratulate all the Aeromexico team for their efforts and commitment that resulted in achieving financial results for the second queue, generally in line with the guidance we provided last April. Revenue performance was strong, with trust growing 10.5% year-on-year during the quarter, a period that also saw the two best sales weeks in our company's history. We kept the discipline in non-fuel costs, mitigating the impact that a stronger exchange rate had on peso-denominated spending. Against this backdrop, the second quarter unfolded largely as we anticipated. Demand remained healthy in April and May, supported by solid market fundamentals and strong commercial execution across our network. In June, demand moderated in the domestic market as travel patterns were temporarily affected by World Cup-related shifts. Despite this temporary change in momentum, our discipline commercial and operational and execution enabled us to deliver record revenues in both June and the second quarter while maintaining profitability within the guidance we shared three months ago. Our ability to respond quickly to changing market conditions continues to be one of our key competitive advantages. We adjusted our network in anticipation of lower corporate traffic in June around the dates where Mexico's national team played, a strategy that proved successful and allowed us to avoid some unprofitable flying. Capacity increased 2% year over year during the second quarter in line with our guidance. Most adjustments were concentrated in the domestic market where we continue to support growth across our international network. During the quarter, we launched two new long haul routes, Mexico City to Barcelona and and Monterrey to Paris, which are off to a strong start. We also operated dozens of charter flights connecting Mexico and the United States to transport several national soccer teams during the World Cup. Our premium customer base remains a key differentiator of our commercial strategy. During the second quarter, premium revenue mix reached 43 percent, off one percentage points year-over-year and 17 percentage points compared to 2019, marking the highest level in Aeromexico's history. This performance reflects the continuous strength of our premium value proposition, supported by continuing investments to enhance our customer experience and build deeper relationships with our clients. It is important to highlight that this performance was achieved in a high-yield environment. Despite fair increases driven by higher fuel costs, our customers did not trade down within the fair class structure, underscoring the resilience of demand for our premium offerings. As of the end of June, we led all global full service carriers in on-time performance according to Sybil, positioning us in a good spot to achieve the recognition of world's best on-time airline for the third consecutive year, a feat that no other airline has attained. We are also very proud of the opening of our new best-in-class lounges and check-in facilities in Mexico City. We want to recognize AICM authorities for the investments they have made to significantly improve our commerce of facilities. Also in this quarter, we proudly launch our new Aeromexico in Bursa, Cobrande Trade Park program, providing customers with enhanced benefits and further strengthening our loyalty ecosystem. Aeromexico Rewards also continues to gain traction as an increasingly important driver of customer engagement and revenue quality. During the second quarter, a record 39% of our passengers participated in the program. This is up seven percentage points year over year. These initiatives together with the quality and reliability of our operation continue to drive higher customer satisfaction. Our NPS reached record heights during the second quarter, reinforcing the strong preference customers continue to show for our brand. Ricardo will provide a more detailed review of our financial results shortly. But before that, I would like to highlight a few key points that underscores the strength and resilience of our performance this quarter. Avid margins stood at 5%, despite fuel costs been approximately $30 million higher than the already high forecast we had at the beginning of the second quarter. Adjusted for this additional impact, Avid margins would have been at the top of the guidance range. We ended the second quarter with the same liquidity position we started the quarter, highlighting our ability to navigate through turbulent periods without burning cash or contracting debt. This achievement shows the resilience and the strength of our business model. Looking ahead, we are establishing new variance for the remainder of the year. We expect higher EBITDA and EBIT for both the third and the fourth quarters compared to the same periods in 2025. Sorry, full year 2026, EBIT margin is projected to be in the low double digit range, a remarkable outcome considering the challenging environment we have faced this year. Capacity is expected to recover and reach high single digit year over year growth in the 4Q, supported by additional wide body flying, the recent delivery of 2.787 aircraft, along with one additional aircraft expected later this year, as well as increased narrow body flying supported by the additional slots that will become available in Mexico City during the next winter IATA season. This expanded wide-body fleet will allow us to further strengthen our European network and increase service to Seoul from five to seven weekly frequencies, reflecting sustained demand and reinforcing our local growth strategy. The first half of the year has once again demonstrated our ability to adapt quickly without compromising our long-term strategy. Healthy demand trends, DCPIN commercial execution and a more favorable fuel environment give us confidence that the second half of 2026 will deliver solid financial performance. We remain committed to managing capacity with DCPIN, investing in customer experience and generating premium revenues. These principles have consistently differentiated Aeromexico and continue to position us to great sustainable value for our customers, our employees, and our shareholders. With that, I will turn it over to Ricardo to discuss our financial performance in more Thank you, Andres, and good morning, everyone.

I would like to echo Andres' comments and congratulate the entire Aeromexico team on their outstanding performance in a very challenging environment. Delivering operational profitability despite peak fuel price pressure is a remarkable achievement and a testament to the team's discipline execution across service, operational, and financial KPIs. Let me now turn to our financial performance and highlight the key factors that shaped our second quarter results, as well as how we are positioning the business to deliver a stronger second half of the year. Total ASMs increased 1.9% year-over-year in line with our guidance, as we proactively adjusted capacity throughout the second quarter to align with market conditions and protect profitability. Total revenue reached approximately $1.5 billion in the second quarter, representing 30% year-over-year growth in line with our guidance. This performance was driven by strong demand across our network, continued growth in our premium segment, and solid pricing throughout the quarter. Although we experienced a temporary moderation in domestic demand during June due to World Cup-related travel patterns, we still delivered record second quarter revenue. Total revenue per available seat mile or prasm increased 10.5% year-over-year, primarily driven by strong international passenger revenue and the appreciation of the Mexican peso. Passenger revenue per available seat mile or prasm also improved 10% year-over-year. Total operating costs increased by 30%, primarily driven by elevated and volatile fuel prices. During the second quarter, we faced a fuel price headwind of approximately $220 million compared with 2025. This translated into roughly $30 million of incremental cost pressure relative to the assumptions underlying the guidance we provided in April. As we discussed on our April earnings goal, our estimation was to recover at least 50% of these incremental fuel costs through pricing and revenue management initiatives. We exceeded that target, achieving a fuel cost recapture rate of 76%. Excluding fuel, operating expenses increased 13%, reflecting the continuous strength of the Mexican peso, inflationary pressure on wages and salaries, and higher depreciation associated with feed growth in 2025. Adjusted EBITDA totaled $260 million in the second quarter, representing a margin of 18%, while operating income reached 68 million, resulting in an operating margin of 5%. Both metrics were within the guidance range we provided in April. As mentioned earlier, average true prices during the quarter were approximately 8% above the assumptions underlying our guidance. Had true prices evolved in line with those assumptions, we estimate that our operating margin would have finished at the upper end of our guided range. Turning to the balance sheet, We ended the second quarter with a strong liquidity position, including more than $1 billion in cash and total liquidity above $1.2 billion, including our fully undrawn $200 million revolving credit facilities. This robust liquidity position reflects our ability to navigate a challenging environment while maintaining a strong cash flow generation and avoiding incremental debts. We generated approximately $362 million in operating cash flow, reduced financial debt by approximately 70 million and close the second quarter with adjusted net debt below the balance recorded on the same period of last year. These results reflect our disciplined approach to capital allocation while preserving the financial flexibility to continue investing in the business and further strengthening our balance sheet. Eading into the second half of the year, we are entering the big summer travel season from a position of strength. Demand trends remain healthy, supported by solid booking activity across both our domestic and international networks. In addition, the fuel price curve, also volatile, has moderated from the elevated levels experienced during April and May, providing a more favorable cost factor. Moving ahead to the third quarter, we expect to deliver another quarter of solid financial performance, with absolute results broadly in line with the strong levels achieved a Operating margins are expected to be modestly below last year's exceptionally strong levels, as higher fuel costs are largely being upset by higher revenues, resulting in a higher revenue base and, as a result, modestly lower margins. For the third quarter, we expect revenue between $1.59 billion and $1.62 billion, an adjusted EBITDA margin in the mid to high 20s, and an operating margin in the mid-10s. Looking further ahead to the fourth quarter, we expect to deliver our plant capacity growth to higher aircraft utilization, driving greater operating leverage and improved unique costs. Capacity is expected to increase approximately 6.5 to 8% year-over-year, supported by expanded operations at Mexico City International Airport, following the authority's approval to increase hourly operations from 44 to 46, beginning with the next IATA season. For the fourth quarter of 2026, we expect total revenue growth of 14.5 to 16.5%, percent, an adjusted EBITDA margin of 28 to 31 percent, and an operating margin of 15.5 to 18.5 percent. Detailed assumptions regarding through prices of our exchange are included in the guidance section of our earnings release and in our webcast presentation. For the full year, we expect ASM growth of 2 to 3 percent, total revenue growth of 13 to 14 percent versus 2025, an adjusted EBITDA margin of 20.5 to 26.5 percent, and an operating margin of 11 to 13 percent our guidance reflects current market conditions and the assumptions we believe are most reasonable today while uncertainty remains we are confident in our ability to execute adapt to changing market conditions and continue creating non-term value for our shareholders with that we will now open the call for questions thank you very much thank you if you'd like to ask a question please press star one one if your question has been

answered and you'd like to remove yourself from the queue, please press star 1-1 again. Our first question comes from Dwayne Finningworth with Evercore ISI. Your line is open.

Hi, good morning. I wonder if you could expand on the World Cup impact that you saw over the balance of the quarter. So maybe what corporate revenue growth looked like in April and May versus the level you saw in June? And then, you know, can you speak to what level of recovery you're seeing here in July and into 3Q? Any metrics you can put, you know, around June that would really isolate it to the World Cup impact?

Hi, Dwayne. Good morning. The impact of the World Cup on domestic revenue, we estimated for June to be around $24 million. million dollars. So that's the revenue lost for the month. Despite this as we mentioned in our initial remarks, we have record revenues in June. We've had our best June and our best second quarter in terms of revenues in history. This number does not include, we have positive effects on charters for example as I mentioned that we transported several teams during the World Cup. So overall I would say that it was slightly negative the impact of the World Cup on our revenues in June and we've seen a very fast change in patterns after last week. So we see a very strong recovery of corporate traffic and leisure traffic in the domestic market already for July and very solid numbers for August and September. So we believe it was a strictly temporary effect, and we are, you know, back to where we were in April and May. We can follow up this call and give you the details for, you know, detailed corporate traffic growth for April and May versus June. But this is the story in general terms.

Okay, that's helpful. And then just, again, talking about the third quarter or maybe the second half, where are you seeing the bigger relative improvement? Are you seeing a bigger turn in the domestic market, or are you seeing a bigger turn or improvement in international? Thanks for taking the questions.

You know, international, you know, pricing reacted very fast, you know, once the conflict in the Middle East started. So, we were able to start to reflect higher jet fuel prices on yields as every other, you know, airline across the world, you know, right away in March, April. Domestic was slower, so April and May didn't reflect, you know, the impact of higher jet In June, we saw, you know, better levels of pricing, and going forward, we see international demand very, very strong with no change, and again, that was not affected during the World And basically, domestic traffic is expected to recover, both, you know, while the World copies behind us and also because yields were not consistent with the level of jet fuel prices during the start of the second queue. So this is again the story but going forward again as we stressed in the initial remarks we are projecting very strong revenue numbers for the third queue and the reason behind it is when the conflict started we had most of our second queue feed sold and we had availability for the second half. So we have been able to fill the second half, you know, seats available with yields that are consistent with, again, the get-through prices that we saw after the conflict. So we are in very good shape for the second half. Of course, we have, you know, significant numbers of seats to sell. We are not fully booked for the second half. But, The demand environment has continued to hold up despite the recent decrease in the price of oil. Again, that was last week. Today, as you know, it's up again this week. So we are monitoring that very closely, but we feel very confident that we will be able to achieve these targets that we put forward in the guidance.

Hi, Dwayne. This is Ricardo. Just to complement on this, another element that we think is going to be very helpful for our second half results is the ASK growth that we are planning for the fourth quarter, taking advantage of the assets that we already have, and using the pricing leverage. So we expect to produce additional revenue with the same assets that we have, and this will include also profitability. So within this is also an important advantage for the last part of the year, and that advantage will also help in 2027.

Thank you.

Thank you. Our next question comes from Michael Lindenberg with Deutsche Bank. Your line is open.

Yeah, hey, good morning, everyone. Ricardo, I heard you talk about the increase in slots at Mexico City for the IATA winter season. Can you just clarify? I think you said the number of operations per hour are going to go from, is it 44 to 46, or is it 56? Is it, I'm just trying to get a sense of the increase.

Yes, correct, Mike, how are you? Yes, from 44 to 46, starting the next IATA system, correct.

That, Mike, means around 10 pair of slots, additional to what we have today. It's, you know, our share of this increase from 44 to 46, which, you know, as Ricardo mentioned, we plan to increase ASKs, you know, high single digits for the 42. We use these slots for the additional wide-body flying that we mentioned, plus to recover some capacity we reduce in the domestic market. That's the plan for these slots.

Okay, so wait, so your slots are going from 44 to 46, so you're going to get two per hour. What's the airport going? Or is that the airport?

Yeah, the capacity in the airport is going to increase from 44 to 46 per hour. Our share of that during the day is 10 pair of slots. Also, as we see in our proportion of slots, this will mean 10 additional pair of slots for the winter season.

Okay, okay. That's helpful. And then just another question. This is more on just the accounting. I know in your other revenue, It looked like that there was a bit of a bump up there. Was that a one-time or, you know, an out-of-period type gain, or what drove that, or is that the new run rate for other revenue going forward? I know you talked about, you know, the new credit card and, you know, the rollout with Visa, so maybe that's showing up in that number. Thanks for taking my question.

Hi, Mike. Well, yeah, this line item reflects, I think, the success that we are having in diversifying our revenue. So here we have revenue associated to our Mexico rewards, the fact that we have been growing penetration, translating to higher revenue here. We have also revenue associated to VIP lounges. We reopened our VIP lounges during the second quarter of the year. We have been remodeling them for last year, so we didn't have those revenues last year. We also have in that line the revenue associated to the charter operations that we performed during the World Cup, where we transported several national teams within Mexico and also from Mexico to the U.S. and Canada. So that is reflected there. And the line item also captures all the initiatives that our commercial team is doing on the retailing, airline retailing initiatives, including car rental, insurance, and vacation packages. So it's a combination of all these factors that is included there, including also the launch of the new credit card. Okay, great. Okay, thank you.

Thank you. Our next question comes from Felipe Nielsen with Citi. Your line is open.

Hey, hello, everyone. Thanks for taking my question. So just two points here. I would like to understand a little bit more about the potential impact from fleet utilization in your XQ cost. If you could maybe give us a sense about how is this evolving or improving as you increase capacity into the second half and how is the level of impact in your guided margins for the period. And my second point, just wanted to remind, if you could remind us, how is the fuel recapture? You mentioned higher-than-expected recapture in second quarter. just if you could maybe remind us the number in second quarter and explain a little bit about the recapture in third quarter and fourth quarter.

Okay, let me take the first part. Philippe, good morning. And can you help us with your question, again, the first question you have? So for the second one, no fuel recapture, we guided the market back in April that we were projecting to recapture 50% of the pressure. we ended up with 75, so 75%. For the second cap, you know, in the implicit guidance that we gave, we are projecting to recover more than the impact that we had, and that was the plan because it was, again, because you had already been sold for the second queue. It was impossible to recover everything in the second queue, so we expect to offset some of these 25%, well, the 25% that we didn't recover in the second queue plus the impact versus last year on the second half with the guidance that we gave on revenue. So it will be more than 100%. Still, in the projections that we show, EBITDA and EBIT, they are in very good, they stand in growth year over year of nine and 11%, third and fourth year. But still, if you look at the total 2026 versus 2025, we will be slightly below 2025. Again, very, very good numbers. But again, that reflects the huge impact of fuel cap on the industry. Can you please help us to repeat the first question?

Yes. So I just wanted to understand on your ex-fuel costs implied in your guidance, How does fleet utilization, like the lower fleet utilization, plays out in the whole equation? So you're expanding capacity into the fourth quarter. You have, like, maybe lower utilization now. So how this should evolve and impact your ex-fuel costs implied in your guidance.

Yes. Thank you, Felipe. This is Ricardo. Yes. As we mentioned, we have these operating advantage of our opportunities. Our P&L already reflects the ownership cost of these aircraft that we are not really flying as intensively as we could. So as we fly them more, ownership costs are the same, but we are producing additional Also, we are making additional use of our crews. We are not really necessarily hiring for the 4Q. would be hiring for growth in 2027, but not necessarily for, so we have also advantages on that. So in terms of the fixed cost structure, as we fly more, the CERCAP, and we produce revenue associated with them, we have these high margin growth opportunities that we see for the fourth quarter and for 2027.

Now, and to complement what Ricardo just mentioned, this operational leverage is very significant. It will not only allow us, again, to improve margins on the 4Q, but we're looking at it's more than enough probably to cover our growth needs, which we are obviously preparing and we'll release later in the year for 2027 and even beyond for 2028. So we stand in a very solid position with the assets needed to fund growth for the next several quarters.

Great.

Thank you. Our next question comes from Julia Orsi with J.P. Morgan. Your line is open.

Yes, hello, everyone. Good morning. Thanks for taking time. So we have two questions on our side. The first one, can you comment a bit on the competitive landscape for both domestic and international markets?

Competitive domestic markets, we've seen some rationalization of capacity in the second few. As I mentioned before, yields in the domestic market did not reflect the fuel environment for the start of the second queue. Again, in June we started to see some better yield support in the domestic market. And going forward, the competitive landscape, again, will depend on the transaction that was, you know, that has been, you know, asked to, you know, to be approved by the competitive authorities. We do not know where that stands. But again, you know, our job is to continue strengthening our product and, you know, deliver the best, you know, the best competitive proposition from our clients. And we are in very good shape on that front.

Got it. Thank you. And can you comment a bit on the, let's see, demand elasticity across the segments, just trying to understand if you believe that there is still room for further price increases if we continue to see volatility on the jet fuel curve in the coming months? Thank you.

Sorry, we lost you a little bit.

Yeah, of course. Can you comment a bit on how you're seeing demand elasticity across the segments? We are just trying to understand if you believe that there is still room for further price increases if we continue to see the JETFIL curve subject to volatility as it has been the case over the last couple of days. Thank you.

Well, as I mentioned before, demand across segments, we're seeing very good support for the second half of this year. The international demand continues to be strong. We are seeing very solid bookings to Europe. We have increased our capacity to Europe for the summer as I mentioned also with the additional shells that we will receive for the 787. We are again providing daily service to Seoul and also we are keeping our Monterrey Paris flight all year long. Those are, you know, important developments of Barcelona, Mexico flight, it's doing very The USA flying has been also, you know, very, very solid, same to Central and South America. So very solid demand across the board. And for Mexico, again, as I mentioned, subnet was failed in the leisure and corporate market for June. But we are seeing, you know, very positive developments for the rest of the summer and And also for the 4Q. We show that we are flexible, that we proactively engage. So our plan is to expand our capacity, particularly in the 4Q, but if fuel prices continue to be volatile and we do not see that demand is there, we will not hesitate and reduce capacity again. The only thing, rest assured that it's fully protected is our slots in Mexico City. We will cover all of our slots. We were able to reduce capacity in the domestic market because we had a waiver because of the higher jet fuel prices during the second queue. That waiver ends for winter ayata. If the waiver is not there, we will fully cover those slots. If oil prices are getting high and the waiver is still there, we will obviously adjust and reduce capacity.

Got it. Thank you.

Thank you. Our next question comes from Jen Spice with Morgan Stanley. Your line is open.

Yeah, thank you for taking the questions. On the co-branding partner change, I know that all the loyalty members will keep their loyalty membership, but I was just wondering, it will take some time for those customers to switch to the new credit card. so like just to understand what are the implications for your financials going forward in order to to correctly model this and secondly i want to double click on the prior question on the competitive environment domestically i mean there's like a very divergent capacity adjustments from your two domestic competitors one is increasing capacity in the third quarter

the other one is reducing it so would you say there's still you're seeing like discipline in the market yeah like what what's your view there thank you again good morning on the credit card and as we successfully launched a new credit card with I'm sorry it's going you know according to plan we are seeing very you know very positive trends in you know we obviously fully prepared for the bridge as we move from the other credit card that we have to in Bursa. So our financials are covered on that sense and the guidance that we provided again reflect any, you know, this transition between the two cards. One very encouraging sign that we are seeing with the in Bursa card is that half of the card holders that have received the card today previously did not have a co-branded credit So that's new and that's the idea that we are looking for. So it's not only, you know, to obviously keep the customers that we had before, but also to bring new customers on board. And, you know, we are seeing that. And on top of that, let me remind you that we are also working on the new contract with American Express that is due in the 4Q of this year. Then on the competitive environment, I think, you know, my view is that, you know, these differences in capacity between the two UNCCs have to do between, you know, the different stages where they have the impact of the engine problems in their planes. One of them had them before, so they reduced capacity. The other one probably received the meals later, and then that's why it's reducing capacity later. And on top of that, obviously, you have, you know, the impact of jet fuel, which, you know, calls again to rationalize capacity independent of the engine issue, but obviously, you know, we cannot answer, you know, that for them. But again, we are fully ready to compete regardless of the outcome in a competitive environment in Mexico.

Perfect. Thank you. It seems that the higher jet fuel, all is equal, seems to be like a more benign environment for you guys than for your competitors. But as oil comes down, will you – because according to your guidance, you will be very close to reaching pre-war profitability in the fourth quarter. Like going into 2027, if and hopefully Jet Fuel normalizes further, will you be like keeping prices at an elevated level to capture even higher margins? Like we're hearing that from the U.S. carriers, right? Just understanding your strategy there. And also, if you could give a bit of context on the ASSA negotiation, how it is going, and if you expect to reach a deal there soon.

On the first part, we are seeing very, again, solid demand consistent with level of yields today that are, again, reflect higher budgetary prices that we saw after the conflict. So, you know, we are very, very positive and confident that we will be able not to reach the guidance that we have with information that we have today. If oil prices go down, obviously that will put pressure across the industry to bring prices down. You know, it's too soon to say what will happen in 2027, but, you know, we have, you know, pre-world record profitability levels with lower prices back then and obviously lower yields than what we have today. So we are ready to react and we have these other drivers and tailwinds for growth in margins, particularly the operational leverage that I mentioned that will be there fully for 2027 so uh again too soon to say you know probably you know as the you know we will provide the guidance you know for the for the for the you know rest of the year and for for 2027 and then on the on the negotiations with the flight attendants you know they they've approved in the they have how it works in Mexico they call us like an assembly no it was approved then you know you need every individual to vote in favor of any agreement and the date the deadline for that is the last day of July July 30 so you know we are you know working constructively with the union with the union team and you know we're confident that we will have you know a firm agreement before the end of this month Oh, perfect.

Okay. I appreciate the additional caller. Thank you, guys.

Thank you. That's all the phone questions that we have for now.

Hi. We have a couple of questions from the webcast. One is related to costs, and if we can explain some of the cost variations and what is driving costs besides fuel. As we mentioned, costs are reflecting as a main driver, the exchange rate appreciation, the strong peso, so this is driving several of the cost items. The peso appreciated 11% versus last year. There are some line items that have other particularities, for example, maintenance costs. This year in maintenance, we are having a higher maintenance cost versus last year. Part of it reflecting the additional credit that we received last year. We received close to 25 aircraft. Another important element impacting maintenance costs this year is related to the power-by-doward agreement of our components, maintenance programs. So we have three contracts, one for our environmental fleet, one for our 737 fleet, and one for the 787 fleet, and the three of them came up for renewal this year. So this year we have like an adjustment coming from the renewal and going forward for the the next five to seven years, the power-by-dower agreements will move in line with certain cost indexes. So we have this particular renewal impact on our maintenance effects this year. And I think that's the main variation on the cost items. We have also other questions related to cash flow and capex. Cash flow generation this year has been very strong. In fact, net cash flow from operating activities in the first six months of the year has been even higher than in 2025, despite having around $250 million of impact, no additional fuel cost expenses in the first six months of the year. Going forward, for the rest of the year, we continue to expect a strong net cash flow from operating activities, so having net cash flow below $1 billion, between $801 billion. And with that, you know, and our CAPEX program, what we think is that we will have a free cash flow of around close to 100 million this year. Now, going into 2027, you know, if the fuel curve prices are materialized and also considering the operating leverage opportunities that we have, what we would anticipate is that the net cash flow from pricing activities can grow materially next year, perhaps more than 30% if these things materialize, which will translate directly into additional free cash flow, given that CAPEX programs for this year and for next year are practically similar, around the $450 million range of CAPEX. Of these $450,000, it's around $300 million of maintenance capex and around $150 million in other projects.

Thank you for this call. We look forward to being here again after the summer as we provide our next quarterly So have a great summer season and see you soon. Thank you for joining the call.

Thank you for your participation. You may now disconnect. Good day.