CPA - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Copa Holdings' Third Quarter Earnings Call.

During the presentation, all participants will be on a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this call is being webcast and recorded on 18th, November, 2021.

the Relations. over turn Director Daniel will Investor of I conference to call Tapia, Now, may you Sir, begin.

Daniel Tapia

Laurie our call. third you, quarter Thank and earnings welcome everyone to

Joining Copa CEO our Pedro us José CFO. and Montero, of today are Holdings; Heilbron,

reports call, today’s Pedro IFRS accordance we discuss International for quarter be Financial followed third Copa questions the our In results. from by with copa.com. over will we financial discuss highlights, Immediately will of analysts. which will after, to Standards. measures. company’s financial non-IFRS found start release, reconciliation have who on financial will open First, A in been earnings Reporting going financial non-IFRS can our posted has website, been by in the our prepared José, measures the Holdings’ call

will uncertainties could Our Many expectations, current company’s forward-looking the based results. These of involve contain reflect report and to materially limited discussed our filed forward-looking future and these on statements, annual results beliefs, that facts SEC. are assumptions to with in change. events that also subject statements discussion cause and today actual historical to the differ and/or are regarding intentions not risks

to Officer, turn over Now, I’d Heilbron. Chief Executive call like our Mr. to the Pedro

Pedro Heilbron

morning Thank call. our third thanks you, quarter Daniel. to for Good earnings and all participating in

forefront company the begin, and admiration. we at respect their recognize and continuous as the Latin for I’d keep always, efforts to to Copa them, Before like dedication utmost commitment to co-workers thank American our their my and to aviation, all of

glad nearly enabling operations QX to air demand financial us load America restrictions for from of Since in QX and to quarter-over-quarter, we factors. grow our restarting improving XXXX. almost seen capacity XXXX, are increasing have reduced Latin in our travel in zero improved flight XX% the pre-pandemic As to in positively capacity vaccination increased release while results The region, the earnings yesterday, have affecting you we're rates published travel may third in quarter. report

which forward, COVID us quarter Going deploy restrictions seen additional capacity travel the recovery, away additional has should allow relaxation of of course, continued virus demand But parts waves could fourth the gone other affect demand not further expect we've to and of the we in the of world, and XXXX. future. and in a in

So, we will in of plans needed. remain terms focused adjusting and capacity, flexible as our

some highlight our I'll quarter of Now, results. third

of compared capacity, factor quarter. XXXX XX% third of second an In of to quarter ASMs increased the at capacity over the we quarter-over-quarter terms million. XXXX came second reached Load to almost compared quarter previous XX% XX% the points by to $XXX two in percentage growth. an improvement on in quarter of XX%, Revenues XX% ASM almost

from XX% capacity. in unit reported of of in QX operating Our the XX.X% quarter. XXXX ex-fuel million profit $XX $X.XX CASM an to of levels in reaching QX, decreased cost an at XXXX $X.XX and We margin operating

quarter with Excluding a adjustments, XX.X%. balance company $XX.X and and of billion. a ended of an cash billion total a a of reported $X.X $X.X profit of cash $XX.X buildup $XX have the million revenue margin operating an operating and We that would over million million had of liquidity passenger

delivered we're new to pandemic. first we Beginning start to product passengers. best our our excited our our destination regards that XX.X%, of testament operational true to commitment continuous completion delivering among factor and network, in will performance again since a the ONCE XX.X% the results the beginning untimed the to an front, This With the On the of company of December, employees' industry. to a world-class in network pre-pandemic recover to of U.S. expect of complete our destinations our position the and to XXXX, will Colombia and during convenient Central, and the in America, By end three we America. in and to Armenia service the Atlanta XX South And the hub North, provide Caribbean. new cities, to the offer Copa Latin strengthening in service year, most Cucuta at in rest the service

the of XXXX. MAX XXX Boeing intended quarter, delivered that were be starting originally we in accelerate to XX to X During the agreed delivery with

will receive XXXX year MAX of total We XXXX. in to the next two XX for these will and a from XXXX deliveries be through added X aircraft seven of other deliveries aircrafts Copa's

eight for [ph], to position, receive to it the America end with during best and proven of fleet As Panamax the expects a sheet. convenient total carrier, to closing, Boeing year balance lowest best like Copa a we a and strongest have to I'd and aircrafts the business reaffirm service model, the of full hub our from which quarter, XXX-XXX. the the two In with that from fourth most America for inter-Latin leveraging on-time unit region's operating on travel based geographic performance network is advantageous cost strong

that top company even strategic Going expects be of the more at forward, of the advantage. Americas valuable source will an

José more over it over in to our turn results financial detail. will go I'll who Now,

José Montero

you, everyone. I'd many being for with spirit well. for and our during the start of months corporate today. pandemic. to Pedro third Hope great doing going Thank you're all our morning, Pedro. us acknowledging team efforts their these Good over I join great Thanks quarter will by results. like and

to We an QX available in share. $X.XX quarter, capacity an ASMs. the of X.X Load net XXXX. of at amounts the more at compared per $X.X operating in average reported miles, while or came of for a million of XX% operated per capacity profit XX% billion XX% seat quarter increase came factor Our which to

items, reported loss company's the mark-to-market quarter which items million we operating we have $XX unrealized mainly million comprised million million. are We came as special sales reported early unredeemed results would a and $XX.X not in related tickets, correspond XXXX net which to an quarterly in in of underlying $XX.X in share. during made revenues XXXX related our Special issued included in notes the and profit to they XXXX. to of profit a per convertible at of are $XX.X Excluding or for $X.XX

revenues, in the we the for profit of Excluding million adjusted operating million $XX.X an ticket had quarter. $XX.X unredeemed

Our was operating XX.X%. margin

Excluding than ASM, quarter would in better have reported excluding the driven $X.XXX second capacity by fuel per adjustments, passenger revenue were quarter-over-quarter growth a of operating margin the XX.X%. cost we an XX%. of Unit at

our We continue we we below $X.XX now above of targeting achieve cost savings initiatives unit once cost our to reach and XX% are the with capacity. pre-COVID-XX

yields while Our X.X% the $X.XX, came quarter, of for more the in a at second ASMs. decrease quarter compared to operating

sales a of third the period. quarter, driven $XX we approximately buildup During increased the by had mainly million, during cash

a our to out spend As discussing and the leases time payment we I build exclude measure, from include of and financial obligations. sheet extraordinary some balance liquidity. want CapEx our proceeds of the for all but asset sales, and cash reminder, other

end long-term to As of billion. had of ended our the and short we and assets the of billion $X.X at cash investments third close quarter, $X.X

to We brought with to quarter liquidity our added ended total billion. which our amount than also aggregate of an $XXX the facilities, cash, credit $X.X in million committed more unutilized

of ones quarter liabilities the for In quarter. we lease to reported with the at debt levels end the terms debt, in of the ended similar $X.X billion and second

upcoming figures, include XX aircraft; These storage plan XXX-XXX the the delivered owner, XXX-XXXs with we in Turning finalized XXX temporary sixXXX-XXX. now currently quarter in we months. aircraft and Xs, the for during XX Boeing their we of last fleet. end XX%, to delivery that In new XXX the two our we and of third the and July, MAX Embraer XX quarter, to sale reactivate

we receive MAX total quarter, more end the of XXX During to year XX the fourth expect with to two Xs aircraft. a

outlook of following restrictions, the of the for As we the of current the the quarter the and air remainder on can year, XXXX. provide travel based state demand environment fourth

about at to XXXX expect we billion We to and be operating X%. capacity margin approximately of levels our approximately $X.X XX% expect be ASMs QX

of outlook about $XXX approximately XXXX levels approximately of XX% $X.XX, million, the on based of increment oil per assumptions; Our QX revenues gallon, CASM ex-fuel XXXX at approximately of quarter-over-quarter. and is price following an $X.XX QX XX% of

full it uncertainty, is XXXX guidance. give to premature the still a Given year

some the And first of for measuring half the half to call the questions. capacity our operated capacity year, open However, you. ASMs during approximately of Thank first we XXXX. the preliminarily be we'll expect that, the with XX% to of

Operator

first Instructions] Research. [Operator from question of is you. Keay Hunter Our Thank Wolfe

Your line open. is

Hunter Keay

morning remove you Does market growth Good Pedro, need approval? your is and what new decisions? capacity or to every that level everybody. add of around involvement or add your as

Pedro Heilbron

and We're involved very definitely. those a decisions. small of we're all kinds in Yes, relatively team

Hunter Keay

process? And spending COVID? money, about only And spend? what after setting budget you what's and but you are doing it How things monitor things Okay. COVID not Not before really, it, done Pedro, also -- the planning a was your that's of how have involvement COVID? question, don't on in level I

Pedro Heilbron

ask changed. that point if tell you team, involved very of involved, the too I been and I I'm and you hasn't that really they'll maybe to the always obsession, think

budget. item Again, a of culture that looking haven't to looking Same had planning always the every the involved, very had everything. we're and team adjust the after all with after thing. whole details, we've because involved we're route in and very We being small in

José Montero

Hunter, on the stronger even the been pandemic, But these items. focus has during

that so even money and the spend And strict way track careful we been and we in we that. our have how more

there's of own from -- this. bit a involved all so quite his on time And from personal and involvement mentioned Pedro

Hunter Keay

me from in keep even an when going example give perspective get place better? a that maybe a learned lesson of to you're Can things going you forward, cost

José Montero

-- the Well, example good think a I say is I would fleet.

also to last several that movements of fleet, creates open cetera. many terms you terms months of and of it's an of a very benefit over simplicity costs I maintenance, just flight we've think in the very, execution you besides fleet the airports, get good et of great going that of operations, gauge get, that some move throughout in the in lot areas with a been lot a made

I very, for that think been positive us. one that's very it's So,

Hunter Keay

Thank very you much.

Operator

Syth question of from James. next our is And you. Savi Thank Raymond

open. Your line is

Savi Syth

Thank you. Good morning everyone.

$X.XX got if XX% in has José, you $X.XX to capacity. XXXX you been remarkable and of missed I here Just would or said you when pretty sub execution cost get the to

XXXX can And along I year, then was see example, up you performance I'm as the if headwinds lines, of next what some the those can we the clarify And tailwinds guessing years? holds. just two and start to trends you If that. that For about next thinking again will get bonuses maybe start sub-$X.XXX over might capacity. current you wondering if

if color thinking more a how just you about kind of little bit can give curious on So, unit cost? you're

José Montero

Yes, Savi.

XXXX the reach capacity now of we expectation be we mark. when XX% of below Our as $X.XX that that that will is

of good So projects additional tailwinds have are I'll ongoing. we and of yes -- it in as itself, a some fleet, fleet uniformity put in the to will in back I be a of the mean, have, the improvement. terms go that we the in of maximum, what lot and we terms

terms contract shed for as but I bit we're to further costs. there's it at to of, of we we'll in will quite and get think an on the I there, always good I performed and -- there's we bring we're well will as over and that reserve it more we in when think this a probably we several renegotiations the -- working think yes, grow -- down this last to every opportunity there's so that figure lot even that below that to down, overall stage, track there. we've below -- our day I closer certainly we bring There -- but months And savings a think in XXXX, $X.XX -- mentioned,

Pedro Heilbron

same on based be and are performance expenses performance that our right, and had haven't during always much like maybe to you're the Savi, on targets, those results. pandemic the surpassing there but will better we bonuses, And level

they themselves. So, pay for

Savi Syth

Is you what what's I low the too reach? there Promised you in is well, can't can guess, Like, level Land, of that you that hit? terms -- a think

José Montero

-- now, in say it high we'll would where is for in $X.XX doable. something the I that the at $X.XX keep very range Yes, five is somewhere

Savi Syth

I appreciate you. it. Thank

José Montero

you, Savi. Thank

Operator

And Thank you. of Instructions] Bank. is question Mike from our [Operator Deutsche Linenberg next

is line open. Your

Mike Linenberg

cost positive XX% just the because the of the the flat over Yes. And underscores through surprises next a leverage Hey, you things José, timing did maybe make to dissipate capacity, story. the visible more Can are permanent? guiding were to or $X.XXX, are cost these you cost side. tailwind obviously, Like, XXXX side? we to on run came of slightly everyone. benefits in that pretty could up? quarters, on congratulations Where were was it you less which morning, couple good Maybe your speed? $X.XXX you what start these just than being operating at on on

José Montero

was say this and specifically in over of related and it what somewhat keep Absolutely for lower there year by going but corporate would for -- have was on I Mike. we Yes, that company-wide been came was so that little a we some expenses now forward, saying That's of start that down. to bit past to always part were a were argue And half. it and that like looking we we're I been that a we've initially. than guide we we of that our QX set timing to could in expenses effort our what thought QX, gave the we thought, thought actually be that $X.XXX. higher a costs of restart improved DNA, than there

sort So, think I at of QX. least will that that be in for level,

Mike Linenberg

your had But Are flat it's lie the seeing and give I Okay, Sao better is previous fleet. or when have have it. are pricing? par because are Copa when to seat, Xs, region, very quarters, you connecting similar become to pay levels, all the think to service you're been because that of at that Paulo, the San I'm getting uptake XX about are lie to great. more so -- unique Pedro, about and to didn't perspective, has maybe really is who say roll some pricing from going much then getting can cabin, that haven't flat or the the to the and can this withdrawn competitors enough non-stop a feel going just fly historically we asked in XXX a that It this you to Panama, product, the which in you my this if willing lie you the Fran And in from you and and premium service your get the question, even to José a on that you answer. advantage bigger and I -- good historical MAX really a fact to what think you are have now shells flat. a product than you for like is U.S. second -- of some that with think out you of is the seven, of at does fact up probably this those take another part like, flagship I question over

because you provide I a can it's that you. Thank that color any So, product think fantastic on on that product?

Pedro Heilbron

Yes, A comments. thank you, Michael. few

given guarantee need So, we have on service enough market. well to to the shells you as a said,

we a our a example, it, service. have So, product, Francisco guaranteed Sao a will San for and Dream Paulo guaranteed as Dreams, call

guaranteed, it's consistently. price once better we So, can it

should And options or Dreams than that for many. not they're they so we been our -- say usually far, better when getting a non-stop premium that are the other hubs product. And through options also I are costs

we a below available product. can for So, it before pricing similar even well was what do

Mike Linenberg

Great. Thanks everyone. Great quarter.

José Montero

Thank you.

Pedro Heilbron

you. Thank

Operator

next And Thank from Zamacona question our Credit Alejandro you. of Suisse. is

Your line open. is

Alejandro Zamacona

taking José, hi Pedro, Thank my Hi, you you. questions. for Thank Daniel.

but Just have traffic you're hasn’t to yield yields recover What lower, could a a I yield. side, and expect push capacity the also we XXXX? and quick question this this one better on on for help considering expecting environment. can significant progress and that further could mean business

call or around Thank you? be thoughts this any useful? So, may

José Montero

early, I Yes, improving kind initially, base so look of of XXXX system-wide of, year say full Alejandro kind of part early the first compared we and capacity, XXXX. -- that, put I the in so, that's first of kind say year, we yield it's in environment mid-single-digit to haven't guidance has would but the offers in the between be terms XX still been it least part that in could at there's for of the the range, for would but -- yield provided XXXX, as into

awkward, of rate XXXX. were we at during but will than most where still a throughout it be lower So,

Alejandro Zamacona

you. Thank Okay.

Operator

And Evercore question you. Pfennigwerth our is ISI. Duane from of Thank next

Your line is open.

Duane Pfennigwerth

take It's that die, morning. to don't good break. see they Hey, sandbaggers, nice just little a

Pedro Heilbron

Thanks for your question Duane.

Duane Pfennigwerth

Sure. Okay.

ahead restart, of pilots, and example? give talk could maybe of, availability just us what's any -- for where you, considering? what can examples qualitatively right, you So, you or kind Are some about on like more is kind there strained of just of you're pockets labor

Pedro Heilbron

Yes.

Okay.

to been this it like Honestly, first had years ahead pause sandbag. like should times. to -- that, normal And months and has your comment I even two pandemic it's not think predict. we're and trying So, three say to difficult very I about in

least, this the few quarters, is we next back, would demand and seeing than have and So, faster at in what came expected ago. quarter some in we're what stronger much months

was grew we was So, to times XXXX, bit I XX important it days, grew demand XX% we we -- November a back. going In and that not are quite tell not show ago, hard XXXX could of the demand think that's up to pull to to did to -- keep in react. did how things, mind quarter-over-quarter from demand in XXXX but very then which that capacity and predict so had how seems was different. old Back years we like capacity QX QX materialized,

So, this that's in dealing with kind of the things pandemic. we're

So, it's strong we're demand always hoping remain and right for that's seeing kind of we're what or good now. what to

okay. labor, think of terms In we're we

about maybe half furlough -- brought or our in we from two of back are the all and pilots. have next We a month would months,

brought have that new flight rehiring flight leave We attendants back attendants. started And already even after took of flight and all our hiring we're voluntary programs. that attendants

we furlough. in that that back So, was soon bring in pilots everyone will

willing we've pilots a have leave, them academy. percent pilot them high own we're back. voluntary in-house strengthening that our We to And contacted is also and took come of a

growing also. we're that So,

always now, again we're because So, fine cautious in we're pandemic we alert this But always respect. full surprises, is right always feel and that of

José Montero

In been all that way for we've months. four last key is aspects. flexibility this Duane managing the it And in

Duane Pfennigwerth

from the you on call very you reach say, folks a they demand productive leave. let's ask with I fair. back, get when if are And is follow-up and your the them them, that all which recovering, hey, expectations? just you is when back rate at email coming When consistent are That's maybe voluntary little out, could

Pedro Heilbron

strong Yes, and then filters. very and cut the if won't person good someone totally. they're instructors And that training have dedicated very we we is have a center committed. not up And par, to very, and

at So, are always the highest people joined company the the that levels.

Duane Pfennigwerth

Okay. thoughts. much Thanks very the for

Pedro Heilbron

Thank you.

Operator

is Thank of you. And our Bruno from next Goldman Sachs. Amorim question

Your open. is line

Bruno Amorim

much performance Thanks the on quarter. this very congratulations and

this very around XXXX, is wages, So, cost of quarter XX% We by level. that the down salaries on number per ASM performance. a have third quick versus the I saw pre-crisis a basis, on here implies just which XX% below follow-up

that forward, do bonuses increase on considering expect you still line discussed, going levels you in this ASM very sustainable and much. So, per was below the to a everything a pre-crisis not? potential on Thank everything basis or for cost be basis

Pedro Heilbron

that would mostly pre-pandemic our efficiencies. is is remain from -- mostly it and adjustments come Yes, operational expectation levels, below overhead will

again, bring below And it the probably and changes flight, of increase bonuses we a hope even overhead, right we change ASMs relation we that now. need grow some performance increase and somewhat, if so back, will that by will pre-pandemic levels. higher have we and As percentage, will with it still can be we people it we but keep the we capacity will to

Bruno Amorim

a perspective great? much. know that I competitive landscape can if maybe past? you I but maybe don't competitive seeing just comment are were competitors, may from case, the what from you And comment not a what players direct comment you. competitors Thank broadly in who would Thank what can be new are follow-up initiatives from specific a you very on seeing you on you you the if on environment, your

Pedro Heilbron

especially to in from either not Okay. entrants a is but from say. region advertise -- action markets, the competitors, ULCC. would but new region new of or entrants to there the to bit not We new There's of -- our entrants, action try quite the some I

we've a future full key else which costs everything network, That's been to think to a activity. carrier low our our And any reason terms and always on-time and -- that success. key costs quite why a and do we as it's unit below leading as there's bit and unit with strong of so having growing of possible on focused having the and close very we that bet performance product, So, always is to our in a combined strong our low we're and carriers, we strong success. the world that’s keeping cost service

able strong that under and succeed which else we best do hub we correctly, the have other is to if we've We deal the the very position continue -- even all to competition, geographic in future, if everything with. to should things in something always a new or had do we be

Bruno Amorim

congratulations and again. you Thank

José Montero

Thank you, Bruno.

Pedro Heilbron

Thank you.

Operator

from is Thank Pablo Barclays. you. And our next of question Monsivais

open. is line Your

Pablo Monsivais

coming Hi, tourism just what to thinking revenue question. perhaps going taking driving like corporate type Pedro. driving do of curious forward, learn than is would how performance? And of my thanks very faction quicker strong leisure, leisure-driven, am in I is when example, follow-up next the I kind Thank that, think is to also a you. demand passengers you result? perhaps It normalcy you're back leisure side. for we if for What about of half expected. this the have it's question return look on for year? is first segment And such or the

José Montero

would Pablo, I traffic, our big the here. than José are leisure so that VFR business. more Yes and drivers say

about about of anymore. it's XX% XX% is Before of up the a and isn't long for it to say it time. people you I leisure, back probably vacation of quarter. period third business least real in go the But -- after that occurred And VFR breakdown wanting off could is leisure was for us before. it being of a was business versus region more in at now or there's Vaccine a argue our locked just XX% segment. more tourism each tourism Today, pandemic, traffic into to want vaccine second a where

in seeing the terms we're patterns. kind of that's, So, of, what

Pablo Monsivais

example, region that currencies, from and If market the And, demand. inflation driving expect consideration market leisure we XXXX? for we sustainable do demand is should into that take this higher think leisure weaker a about you for in

Pedro Heilbron

It is what we're seeing right now.

we're that's down bookings. slowing now we at seeing when path, to We and look of no think are least, this signs future how it going we at stay demand on seeing right we're

Pablo Monsivais

very Thank Terrific. much guys. you

José Montero

you, Pablo. Thank

Operator

Josh Thank Morgan Milberg from question our is next you. of Stanley. And

Your line open. is

Josh Milberg

for a also overlapping had that Great. and regional your carriers, one if Good the on Avianca's is much bringing call. day, ones, your U.S. I have everyone follow-up hear the that issue at is a then could wanted in how on views airline and point-to-point comment And believe than you thanks new back helped and yields to by slower I of guys capacity a make that routes? strategy ask wanted the been related CEO the competition on pace either that on recently to comments you relevance shifting just to a press announcement for of Copa?

Pedro Heilbron

they so brought capacity a announced. have to mean than I pre-pandemic. higher have up carriers Yes, level have U.S. brought -- back

U.S. not America. offering most, carriers what offered they So, talking all, in Latin in are now, XXXX, more I'm ASMs if

carriers XX when is procedures, are the so major then hub-and-spoke Some above or through below, chapter but that they -- of are going XXXX. everyone else

it's I So, chapter even lower be yields. their exit to plan and well declarations, more think with made a service cost they published something. and it's low And there. you densified strategy planes, point-to-point Yes, a mixture mentioned, as XX Avianca, going or a of

we for of prepared that yes, we're for and be able preparing and under be able And maintain we heard to kind scenario. So, that compete our any confident and further cost to we've we're competitive advantage environment. that will we're that are

Josh Milberg

much, you Pedro. Thank very

José Montero

Thank Josh. you,

Operator

next from Stephen Thank you. question And Citi. Trent is our of

Your open. line is

Stephen Trent

question. my Thanks very much appreciate taking and you guys

density that about side, on it pass of are the through is very that non-business say on fare good we there on routes, Pablo's stickiness one there's you to to seeing let's especially, the question. is follow-up still first some actually of travelers? say much fair When is -- even so demand kind pent-up fare a your The think low

Pedro Heilbron

sure and months afford that ago, now, we seeing that And going or they traveling demand. degree nine can ago. demand of or seeing And seeing as in expected did I'm because to that want is the this it's are it's maybe they the It's it and their we right a year to about been I not now. on, before fear to so way, fly we're pandemic. is and business, just people out think just call I a What surprising they going demand. it What -- would like travel regular about as call we're right pent-up want traveling going not getting lives, just pent-up much their people would I or the

Stephen Trent

as follow-up to XXXX. my next just year, color Pedro. flight helpful of it's very be appreciate too banks very the high how quickly, out you Any document view and early level And or might Okay, say? for many running guys still

Pedro Heilbron

of we and still going it doing while. to number all will I been think change. restart flights banks we still number to that's We've six way had Well, a the We're run flight of to XXXX. don't not We throughout a and for the destinations back have that pre-pandemic. happen the year

we hub, of the a were of to back get in terms the in the is the of number need flights. year I connectivity, XXXX XXXX we think to what So, where size

be So, the that most kind of doing year. what of we'll

José Montero

and we as well unique. And the hub as from always interesting well, opportunities quarter looking the that mentioned into adding we as are for cities are this new network in

Stephen Trent

Okay.

leave me very Let much guys. there. Thanks it

Pedro Heilbron

Thanks Stephen.

Operator

McKenzie Global. And Thank last question Seaport from our you. Dan of is

Your line is open.

Dan McKenzie

Hey, thanks me in squeezing for here.

times? rule that question even two three up GDP are or like, last two on might thinking demand think on than historically be pent-up that still could been times Just it or demand, higher pent-up following times to of America drive higher normalize, Latin three I things something once say and the in you has at thumb times

José Montero

level eventually say a itself COVID. yes, after up, grow American I demand will particular the think think, early So, you where that I are it's maintains look factors, it's two where to to it's growth, economies but think Dan, are lined -- of level if GDP times I in where three still at air that travel Latin the the economies macroeconomic at

volatility I So, to yes, that term, You the over is thing, it's be that in But environment believe newer or might mindful I the have have still that's the that be think case. some going an right? COVID several months. to that's longer movement over, next still not

Dan McKenzie

Yes. current to of quarter, respect pandemic. for question some ties you've have Brazil, example. I'm And my to looking current quarter cuts to operations operations been seeing with just gets it just next evolved, the Brazil, for And so that sort and and over the the I'm how I'm at here plans network actually the how managing wondering

like to flights where it on managing when based need So, demand trimming, you're can. you you looks adding

on yes, but help where profitability? so profitability like with new to doesn't going changes it's do actually do is the this it the And look I'm weigh quarter, with or they

José Montero

at think we're it profitability. Also network. opportunities to the on say the that always I about that our we I constantly. improve it's all very carefully, are for back But would building looking looking almost

the think as effectively network at. where build where to get I can a factor looking a is here factor prior think, I and that's, to that network the as is the was it the key sort we point to of to capacity that of to quickly pandemic and the as driving we as we're that ensuring close

Pedro Heilbron

about a time. we're true, it's what saying, And during in of difficulty also is predicting seeing ahead what I then was which the result earlier -- this is what you're saying what's

be the and along we'll adjustments more have way to, operation hopefully, stable we've to So, predictable next changes a the and quarters, able make stick that in to to had used and we're more it. just few

Dan McKenzie

the could If understood. here. in seats I Yes, one on Mike question here. and I last same one actually just Dream have squeeze

the flagship seat a on this as question. an that really wondering, generic with if And for go might today you're I'm a I just just seat just you you're not first-class I guess if flat selling lie business class live to it you're so like product, actual could is simply as point. or that? when it if ready feel selling at I And elaborate timeframe what as guess

Pedro Heilbron

a do we We premium sell it guarantee given flight every can it market. for when in a in

So, we're there's all where markets number a can the on already of It depends few operating. do we that. shells

charge MAX there we think the for and somewhere where the four now. product guarantee So, we probably as around markets five Dreams of a like markets It's X, product. or we those in the right add -- is we five yes, I more cases, number markets, get premium it's

Dan McKenzie

I see.

the Okay. you Thanks guys. for time

José Montero

Thank you.

Pedro Heilbron

Thank you, Dan. Operator? Go ahead.

Operator

you no Do are remarks? closing further any there Yes, have questions.

Pedro Heilbron

you call. thank you you for your great Okay, a continued one. with in Have concludes being all. support. our This for the day you us. we'll operator all. thank next earnings and you and Thank you, Thank see Thank

Operator

and for concludes Ladies Thank presentation. gentlemen, you. That the participation. you thank

day. You disconnect and wonderful a now have may

Copa (CPA) 18 Nov 212021 Q3 Earnings call transcript