Earnings Call Transcript - CPA Q3 2025

Operator, Operator

Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings Third Quarter Earnings Call. As a reminder, this call is being webcast and recorded on November 20, 2025. I will now turn the conference over to Daniel Tapia, Director of Investor Relations. Sir, you may begin.

Daniel Tapia, Director of Investor Relations

Thank you, Michelle, and welcome, everyone, to our third quarter earnings call. Joining me today are Pedro Heilbron, CEO of Copa Holdings; and Peter Donkersloot, our CFO. Pedro will begin with an overview of our third quarter highlights, followed by Peter, who will walk us through the financial results. After that, we'll 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 which are reconciled to IFRS figures and our earnings release available on our 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. With that, I will turn the call over to our CEO, Mr. Pedro Heilbron.

Pedro Heilbron, CEO

Thank you, Daniel. Good morning, and thank you for joining us today. Before we begin, I want to thank all of our coworkers across the organization. As always, the dedication and hard work are instrumental in our financial and operational success. Copa delivered another strong quarter reinforcing the strength of our business model and our competitive advantages in Latin America. During the quarter, we achieved industry-leading profitability with an operating margin of 23.2%, up 2.9 percentage points year-over-year and a net margin of 19%, up 1.9 percentage points year-over-year. These results are driven by our continued focus on cost discipline and a healthy demand environment in the region. Now over to the key highlights for the quarter. Capacity in ASMs increased 5.8% compared to Q3 '24. Load factor increased by 1.8 percentage points to 88%. Passenger yields came in 2.6% lower year-over-year. Unit revenues or RASM increased 1% to $0.111 compared to Q3 '24. Unit cost, our CASM decreased 2.7% to $0.085 compared to Q3 '24, while CASM, excluding fuel, decreased 0.8% to $0.056. Operationally, Copa Airlines delivered an on-time performance of 89.7% and a flight completion factor of 99.8%, maintaining our position among the best in the industry. During the quarter, we started flights to Salta and Tocumen in Argentina. And as mentioned in our previous call, in the next few months, we expect to add service to Los Cabos, Mexico, Puerto Plata and Santiago in the Dominican Republic and Salvador, Bahia in Brazil, further strengthening our position as the most complete and convenient connecting hub for travel in the Americas. With regards to our fleet, during the quarter, we took delivery of five 737 MAX 8 aircraft. We added a second Boeing 737-800 freighter under an operating lease and Copa transferred an aircraft to Wingo, growing its fleet to 10 Boeing 737-800 NGs. We closed the quarter with 121 aircraft and we have since incorporated 2 additional MAX 8, bringing our fleet to 123 aircraft. We expect to receive 1 more MAX 8 before year-end finishing 2025 with 124 aircraft. For 2026, we anticipate adding 8 more 737 MAX 8, 2 of which we previously expected to receive in December 2025, ending 2026 with a total projected fleet of 132 aircraft. To conclude, in the third quarter, we again reported strong operational and financial results. Going forward, our guidance demonstrates confidence in our future performance, driven by healthy demand in the region and the strength of our business model, which consists of the best geographic position with our Hub of the Americas in Panama, structurally low unit cost and a strong balance sheet and a passenger-friendly product with industry-leading on-time performance. Our focus on these pillars enables us to consistently deliver industry-leading results. Now I'll turn the call over to Peter, who will walk us through the financials in more detail.

Peter Donkersloot Ponce, CFO

Thank you, Pedro, and good morning to all. I'd like to start by reinforcing Pedro's recognition of our team's continued dedication to achieving industry-leading performance. Let me provide some detail on our financial results for the quarter. Net profit came in at $173 million or $4.20 per share compared to $146 million or $3.50 per share in the third quarter of 2024, representing a year-over-year increase of 18.7% and 20.1%, respectively. Operating income reached $212 million or 22.2% higher year-over-year, and an industry-leading operating margin of 23.2%, 2.9 percentage points higher than the third quarter of 2024. On the cost side, CASM decreased 2.7% year-over-year to $0.085, driven primarily by lower fuel cost and maintenance expense. CASM, excluding fuel, came in at $0.056, down 0.8% compared to the third quarter of 2024. This figure reflects a realized gain from engine exchange transactions and a benefit related to the extension of one leased aircraft. Regarding our balance sheet, we ended the quarter with $1.3 billion in cash, short-term and long-term investments, representing 38% of the last 12-month revenues. Further demonstrating our financial strength and flexibility, we also have approximately $600 million in predelivery deposits for future aircraft. Additionally, we currently have 45 unencumbered aircraft. Total debt stood at $2.2 billion, entirely related to aircraft financing. Our adjusted net debt-to-EBITDA ratio came in at 0.7x and our average cost of debt continues to be highly competitive at 3.5%. Regarding the return of value to our shareholders, I'm pleased to announce that the company will make its fourth dividend payment of the year of $1.61 per share on December 15 to all shareholders of record as of December 1. As for our 2025 outlook, we remain confident in our full-year performance. We are reaffirming our guidance and narrowing the operating margin range to the upper end now expected between 22% and 23%, with a full-year capacity growth projected at approximately 8%. This outlook reflects a healthy demand environment in the region as well as our continued cost discipline. Our outlook is based on the following assumptions: load factor of approximately 87%; RASM of approximately $0.112; ex-fuel CASM of approximately $0.058; and an all-in fuel price of $2.40 per gallon. Looking ahead to 2026, we preliminarily expect full-year ASM capacity growth in the range between 11% to 13%, with an ex-fuel CASM in the range of $0.057 to $0.058. To conclude, we remain confident that our proven business model, robust balance sheet and disciplined execution provides a solid foundation to continue delivering consistent growth, strong financial results and industry-leading margins. Finally, I'd like to remind everyone that our Investor Day will take place at the New York Stock Exchange on December 11 at 11:00 a.m. Eastern Time. We look forward to sharing more about our company during this event. Thank you, and we'll now open the call for questions from the analysts.

Operator, Operator

Our first question will come from the line of Savi Syth with Raymond James.

Savanthi Syth, Analyst

Could you talk a little bit about the timing and nature of the co-branded credit card renewal that you noted in third quarter? And just about the opportunity that you see in loyalty in general?

Peter Donkersloot Ponce, CFO

Yes. Thank you, Savi. And yes, we had a renewal of our Visa agreement during the third quarter, and that's part of what you see, an 86%. We cannot disclose too much on that due to the confidentiality of the deal. But if we take that out, if the growth of the loyalty program would have been similar to the second quarter, there was over 30% growth year-over-year.

Savanthi Syth, Analyst

Great. Anything around the loyalty program initiatives? Is that just kind of the normal renewal? Any other kind of thoughts on how that program can kind of contribute in the future?

Peter Donkersloot Ponce, CFO

So it's an important growth, 30% year-over-year over a small basis. We continue to grow. The program is maturing. We expect the program to continue to grow. There's a lot of new non-air partners in the program, and we expect the program to continue maturing and to continue growing at a decent rate going forward. And it's one of the priorities that we have for the coming years. So the 30% growth, I mean, it's over a smaller base, and we expect that growth to continue and go slightly going down as the program matures.

Savanthi Syth, Analyst

Got it. And if I can ask just a clarification question on the growth next year. Could you tell like the 11% to 13%, how much of that is kind of coming from current revenue versus new service?

Peter Donkersloot Ponce, CFO

Yes. So the full-year growth that we are projecting between 11% to 13%, I would first say that half of that growth comes from the full-year effect of the backloaded aircraft that we received this year. Of the other half, I would say that 50%, 40 percentage points of that will come from adding frequencies to current destinations. And then the other 10% will come from adding new dots on the map. Some of them Pedro alluded to during his intervention. That's more or less the breakdown of our 11% to 13% growth in ASM for next year.

Operator, Operator

Our next question comes from the line of Michael Linenberg with Deutsche Bank.

Michael Linenberg, Analyst

Yes. To address Savi's question about growth for next year, half of it comes from the annualization of 2025, while a significant portion of the remaining growth, about 40 points, is due to increased frequencies. With this type of growth in mind, what is the outlook for unit revenue trends? Typically, when we experience a rise in growth, we often see some pressure, particularly when entering new markets. However, if the focus is on reinforcing an already strong position in the region, we might expect unit revenue next year to remain relatively flat. What are your thoughts on this or how do you view it for 2026?

Pedro Heilbron, CEO

Mike, it's Pedro here. Yes. So I think in a way, you helped us answer the question. I mean we're not giving yet guidance on unit revenues. But you're right, most of the growth comes either full-year effect or from adding frequencies. And of course, we're adding those frequencies in high-demand routes. When we average 88% for a quarter like we did in Q3, that means that many, many routes, many markets are above 90%. And that's where we're adding frequency. So the impact on unit revenues should be much less than one we would expect from double-digit ASM growth.

Michael Linenberg, Analyst

Great. For my second question, regarding frequencies, can you share the current number of gates in Panama City and how full they are, as well as the number of banks? I see you have 8 flights a day to Miami and 10 to Bogota. I remember a time when you had 2, 3, or 4 banks. How many defined banks do you currently have, and how much additional capacity is available to add more frequencies, since they all operate out of Panama City? When do you start reaching capacity or running short on connecting banks?

Pedro Heilbron, CEO

Yes, Pedro here again, Mike. There are two things I want to mention. First, the airport is progressing on its next phase of expansion. They plan to issue bids by the end of this year or early next year for the expansion of the new T2 terminal and for some improvements to the taxiways and runways, and one of those contracts has already been awarded. Our civil aviation authorities are also working on redesigning the airspace. All of this is set to occur over the next 3 to 4 years and will be carried out in a very practical manner, which will be beneficial for the airport and our hub, and we are very pleased about it. Regarding frequencies, we currently operate 6 defined banks. Our first arrivals are around 6 in the morning and our last departures are close to 11:00 p.m. We operate wingtips, and sometimes even triple wingtips at certain times during the day, such as early in the morning, sending wingtips to the Caribbean, Miami, and similar destinations. Depending on the banks, we might also run wingtips to South America and other locations. With the new phase of expansion, which we are deeply involved in with the airport authorities and the design, alongside an international institution, we will have ample room to add wingtips if required, and there will also be space to increase the number of banks if necessary.

Operator, Operator

Our next question comes from the line of Duane Pfennigwerth with Evercore ISI.

Jacob Gunning, Analyst

This is Jake Gunning on for Duane. To ask a question about next year a little differently, not looking for guidance, but could you maybe talk about how you're preliminary thoughts on 2026 margins and earnings have changed over the last quarter?

Pedro Heilbron, CEO

Yes. They haven't really changed. In terms of our expectations for unit cost, unit revenues, etc., we are kind of in the same place. The only variable is what happens to fuel. Recently, we've seen an increase in the crack spread for jet fuel, but that could change again in the next two weeks, largely due to the conflict in Russia and a few other factors. So, I would say that's the only variable, and we haven't modeled how yields would react to that. Typically, when jet fuel prices rise, there’s more pressure for everyone to adjust fares, but we haven't really modeled that.

Jacob Gunning, Analyst

Okay. And then just given the really healthy leverage, is there any debate or discussion on leaning more heavily into share buybacks versus dividends?

Peter Donkersloot Ponce, CFO

Yes. Thank you for the question. I would like to discuss our capital allocation plan. After this year, we expect to have around 46 to 47 planes pending delivery from our order book. Given that we are achieving 88% load factors and maintaining decent margins, one of our top priorities is to continue reinvesting in the business. We believe that the business can keep delivering healthy margins and growth, which is a focus for our capital allocation. Additionally, we will continue to return value to our shareholders, which is also part of our capital allocation plan. We have two methods for doing this: first, our dividend policy, which is based on 40% of last year's net income, and we will uphold that policy with continued quarterly payments. Second, we have an open share buyback program approved by the Board for $200 million; we've executed half of it and will continue to execute the other half as opportunities arise. There is no set end date for this plan, and we will proceed as we see fit.

Operator, Operator

Our next question comes from the line of Filipe Nielsen with Citi.

Filipe Ferreira Nielsen, Analyst

I have two questions about CASM Ex. First, looking at this year, you're still guiding to $0.058. I'm trying to understand the factors influencing this after the positive one-off from this quarter. Could it be that you are being too conservative with this assumption? Second, regarding 2026, could you provide some insight into the factors behind this expectation? It seems a bit conservative to us, especially considering that you might increase fixed cost dilution due to capacity expansion. I'm trying to clarify these points.

Peter Donkersloot Ponce, CFO

Thank you, Filipe. Peter here. Regarding CASM Ex, we are guiding to approximately $0.058 for the quarter, but we only specify one decimal, so the actual figure could vary. I want to address the two items we mentioned in our earnings release yesterday. We highlighted them to make comparisons easier. First, when we extend a lease, we spread the provision over a longer period, which was impacted by a lease extension we executed this quarter—this accounts for about a third of the effect noted. The other two-thirds are not strictly one-off items. They relate to engine exchanges, primarily due to the longer turnaround times we've experienced. The team is opting to send engines for exchange rather than restoration, which may offer some accounting benefits from differences between book value and transaction price. This exchange is a strategy we are implementing this year and plan to continue into the next year, so it’s not just a one-time occurrence. For the year 2025, I emphasize that $0.0580 is a range we’re considering, and we’ll need to model within that. For 2026, we are confident in our guidance, as we believe we have sufficient cost initiatives in place to at least offset inflation and potentially reduce CASM further. So, the guidance we are providing regarding CASM reflects our belief in having adequate measures to tackle inflation and lower CASM as well. That's the key point we wanted to convey.

Operator, Operator

Our next question comes from the line of Daniel McKenzie with Seaport Global.

Daniel McKenzie, Analyst

I have a couple of questions. First, regarding the strong demand in the region, could you provide more details? This year has seen significant macro volatility, yet Latin America appears to be unaffected and continues to thrive. What factors are contributing to this? Is the demand simply inelastic due to the wealth of your customer base? Can you provide a deeper analysis for us?

Pedro Heilbron, CEO

Okay. So it's important to note that we may not have all the answers or be able to share everything we know. There are demographic factors at play. In Latin America, a smaller percentage of people travel compared to Europe or the U.S., but those who do travel generally have the means to do so. Additionally, they are traveling more than they did before the pandemic, which is quite clear. Analyzing the demographics can be challenging, but overall demand is robust and continues to grow. While there is a lot of new capacity entering the market, load factors remain stable. This pattern holds true across most regions, with only a few exceptions easy to identify. For instance, we experienced significant currency devaluation in Brazil last year, but the currency has since stabilized and even regained some value. We see Brazil gradually recovering, though it may not return to pre-2023 levels immediately. The rest of South America appears to be doing well, and the U.S. market is fairly stable, possibly slightly down, but with increased capacity. Demand is up significantly, with double-digit growth. Argentina has seen a lot of new capacity, making it a strong market, though not as strong as before due to this influx. We anticipate that this capacity growth will eventually slow down. Our own growth in Argentina has been considerable, but moving forward, we do not expect to grow at the same rate, if at all, and we are adjusting our capacity to focus on areas where it makes the most sense. Overall, the demand environment is healthy. There may be a slight impact on yields, around $0.08, but this has not been very significant.

Daniel McKenzie, Analyst

Yes. Very impressive. The second question here. I'm wondering if you could speak to the durability of growth opportunities beyond 2026. So should we be thinking low double digits for the foreseeable future? Or how should we be thinking about growth longer term, say, 3 years out or so?

Pedro Heilbron, CEO

Yes. I'll discuss our aircraft order, which is the best way to understand our growth plans. We've always been rational and pragmatic in our approach and avoid taking unnecessary risks. Over the last three years, we've consistently delivered margins above 20% each quarter, with one exceptional quarter at 19.5%. We're careful in our operations, focusing on our business model, maintaining low costs, and growing capacity based on what makes sense rather than reacting to external pressures. Our fleet plan reflects this strategy, projecting consistent growth between 7% and 8% per year. We have over 40 planes scheduled for delivery over the next four years, which translates to an average growth rate of around 7% to 8% during that period. Given the strength of our hub, network, competitive unit costs, and customer service, including on-time performance, we believe this growth rate is reasonable and sustainable in a profitable manner.

Peter Donkersloot Ponce, CFO

And I would just add that, as Pedro alluded to, that's our plan of growth and should be around the 6%, 7% as Pedro alluded to the next couple of years. But Pedro said it very well, we're not obsessed with growth. We will only grow if there's profitability in that growth. We'll be more focused on making sure we can get the most profitability. And we have a lot of flexibility for that growth on the downside. And we have the lease aircraft. We have 4,500 unencumbered aircraft. We have the 700s that by any point, demand softens, we can decide to park, harvest the engines and even help us grow in the CASM. So there are a lot of tools we have to address whatever market comes to us, and we'll try to make the best out of it.

Operator, Operator

Our next question comes from the line of Alberto Valerio with UBS.

Alberto Valerio, Analyst

One more on my side in terms of yields was, you see a healthy environment, but I think market was expecting a little bit more in terms of yields for this quarter as well for the next one, maybe a revision on the guidance. If there is any specific detail that makes you guys be a little bit more conservative? And another one, if I may, in terms of competition in the region, we see an IPO in Mexico, we may see another IPO next year in Latin America and also in Brazil, Azul come back from Chapter 11. What is the perspective? And how is the market in the region, if you can take some details in terms of competition?

Pedro Heilbron, CEO

Okay. A few things. So I think we already spoke quite a bit about 2026 yield. You're asking about fourth quarter. We do not give a quarter-by-quarter yield guidance but we did narrow our operating margin guidance to somewhere between 22% and 23%. So we narrowed it to the higher end of our previous guidance. So that's what we can share now. In terms of competition, it's something that we've lived with for a long time, always, I would say, but even more so in the last 4 years, in the last 4 years or 3 years, and we work on our competitive advantages to make them stronger. And that's our product, our unit costs and the strength of our network. So we're confident that we can continue delivering in 2026 and beyond the strong margins you've seen before. And the IPOs you alluded to, well, those are companies that were public before. So they're going back to where they were before they went through bankruptcy and all the other troubles they got into. We work hard to avoid that kind of situation and try to be a little bit more steady on everything we do.

Operator, Operator

Our next question comes from the line of Tom Fitzgerald with TD Cowen.

Thomas Fitzgerald, Analyst

Just going back to the overall concept for next year. How do you view the incremental frequencies and the 10 points for the new dots? In a typical year, how should those be expected to compare to the system RASM?

Peter Donkersloot Ponce, CFO

Yes. So normally, in a regular year, most of our growth goes to adding frequencies and then we always have a little of that growth to put on new markets. And then for those new markets for the next year, normally mature, and then they go in the first category of adding frequencies to those new markets as we normally open markets with 3 to 4 weekly flights and then we go building up. So that's more or less how we have deployed growth in the past years and how we've done it. Most of it going to frequencies and then a smaller portion goes into new markets.

Thomas Fitzgerald, Analyst

Got it. Okay. I mean, normally just thinking about the maturity ramp for the incremental departures, do you think that is a decent discount of like a 10-point discount to system average or pretty much in line with the system that you're producing?

Pedro Heilbron, CEO

I would say it's pretty much in line. A related factor is that Boeing deliveries have been significantly delayed over the past two years. This year, however, they have been timely, even arriving earlier, marking a noticeable improvement. Overall, we are still behind our expectations from three years ago. These are overdue deliveries, and we believe there is demand for those aircraft, particularly as we are adding frequencies, as Peter mentioned.

Thomas Fitzgerald, Analyst

Okay, that's really helpful information. As a follow-up, I was wondering if you could discuss your previous comments about some of the easier opportunities you have with technology and your potential to improve pricing, perhaps by using more dynamic pricing or upselling products like Economy Extra. I'm curious if you could provide a preview for Investor Day, as I would appreciate your latest thoughts on this.

Pedro Heilbron, CEO

Yes, we need to save some information for the Investor Day, and you've helped me address that question. There are still many opportunities available. We are continuing to invest significantly in our digital tools, particularly in enhancing what we already have. We see an opportunity to improve merchandising and user experience. We want to make our products more visible to customers, particularly during the booking and check-in processes. We are focusing on three key areas: baggage, upgrades to business class, which have been very successful, and our premium economy cabin, referred to as Economy Extra. We believe we haven't highlighted it enough, and there is potential for growth there. This is our focus, and we anticipate increasing revenues in those areas.

Operator, Operator

Our next question comes from the line of Guilherme Mendes with JPMorgan.

Guilherme Mendes, Analyst

First one is just a follow-up on the competition. Pedro, you mentioned about Argentina being especially competitive and you also mentioned about Brazil, but which other regions do you see, let's say, higher-than-average competitive environment? And the second one, Pedro, you also mentioned about fuel being the wild card for 2026. Given that potential environment, do you see Copa change its hedging policy in some way?

Pedro Heilbron, CEO

Okay. Yes. So yes, what I said in general terms is demand is healthy. It's growing at the pace of capacity in all of Latin America. So load factors are holding up well. I highlighted a few regions. Brazil got hit hard last year and at the beginning of this year because there was a sudden devaluation of the currency and a lot of capacity had come in because of that success during the first half of 2024. Since the currency, and you know that very well, the currency has been stable, actually, it has improved since 12 months ago. And that market is coming back little by little. Less capacity has come in compared to the first half of last year. So we're seeing an improvement in our Brazil load factors and in our Brazil PRASM. So we're seeing improvement in those. Q4 should be better in Q3 and Q3 was better in Q2. So it's going in the right direction. Not all the way back to where it was at the end of 2023, but it's in the right direction. And then Argentina has been booming, has been quite a market with all the economic changes that the new government has implemented in Argentina. It has been booming in general terms. The devaluation has been more predictable and not as significant as before. Inflation has been a lot more under control and the traveling public in a country that loves to travel has been growing at a very strong pace. That has attracted a lot of capacity from us and from everyone. And when that happens, well, yields soften a little bit, but they're still very strong. And what I said is that we will not be growing so much in Argentina as we've done in the past, let's say, 12 months. And that's probably going to be the case with most other airlines serving the country. So it's going to stabilize, I would say. Oh, okay, the hedging policy. I forgot about hedging because we haven't done it in so long that it's not going to change. Many hedges are usually on WTI or Brent. What has increased lately is the crack spread, as well as jet fuel. I'm not sure how long this will continue, but we're not planning to change our hedging strategy. We're satisfied with not hedging. It has worked well for us and that will remain the case.

Operator, Operator

Our next question comes from the line of Savi Syth with Raymond James.

Savanthi Syth, Analyst

Just can I give an update on the densification plan, just how many aircraft are yet to go and just curious on how much of next year's unit costs might be driven by that and if there's anything further that it will drive in '27?

Peter Donkersloot Ponce, CFO

Thank you, Savi. We have completed about half of our planned densification, which involved adding one more row for approximately six additional seats per plane. Specifically, we've finished half, so that’s around 25 out of the 50 we intended to implement, and we still have 25 remaining that we plan to address in 2026.

Savanthi Syth, Analyst

Great. That's helpful. And just a clarification on the credit card benefit this quarter. Is that something that's just a one-time this quarter? Or is that something that now is layered on and continues going forward?

Peter Donkersloot Ponce, CFO

Regarding the credit card benefit, we observed two main components, which we can simplify as two equal parts. One part is linked to the renewal of our agreement with Visa, which happens once every few years. The other part pertains to the program's own growth, which is the second half. This growth is similar to the trend we experienced in the second quarter and is expected to remain stable and continue.

Operator, Operator

And our last question will come from the line of Jens Spiess with Morgan Stanley.

Jens Spiess, Analyst

Sorry, I joined late, so if you already answered this question, please disregard. I just wanted to get a sense of how much conservatism is built into your guidance. So backing out like fourth quarter at the midrange of your annual guidance for 2025, we get to an operating margin of around 22% and yields of 11.4%. So I just wanted to get a sense of how comfortable you feel with that number in the fourth quarter? And how much at the end, conservatism is built into it?

Pedro Heilbron, CEO

So our hedging. Our fourth quarter 2025 guidance was narrowed down to between 22% and 23%, which was like the upper part of our previous guidance, which was 21% to 23%. And we're very comfortable with that range between 22% and 23%.

Jens Spiess, Analyst

All right. Perfect. And just in terms of yields, it does imply a deceleration of yields versus this third quarter. So I just wanted to get a sense of that and how you're looking into the next few quarters maybe?

Pedro Heilbron, CEO

Yes, that question was asked before, and the response was that we do not guide yield on a quarterly basis.

Operator, Operator

I would now like to hand the conference back over to Pedro Heilbron for closing remarks.

Pedro Heilbron, CEO

Okay. Thank you all for your questions and for joining us today. We appreciate your continued interest and support. Of course, I look forward to seeing you in person at our Investor Day and answer even more questions. So as always, you can feel confident that we will keep working really hard to strengthen and develop our competitive advantage, and I'm confident we'll continue delivering very strong results in years to come. So thank you, and have a great day.

Operator, Operator

This concludes today's conference call. Thank you for participating. You may now disconnect.