The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Guilherme Mendes - JPMorgan - Analyst
: Good morning, Roberto, Ramiro, Andres, Tori. Thanks for taking my question. I have two. The first one, it's on the yield performance and congrats
on the pretty strong yields reported this quarter. Just wondering if you could share some details on the yield performance per region. So think of
Brazil, Spanish-speaking countries and international. And if it's fair to assume the sustainability of current yields going forward, think of fourth
quarter in early 2024.
And the second question is regarding to the GTF engine situation. I understand the actual impact should be limited to your overall capacity in
2024. But can you share what percentage of your new fleet do you expect to be grounded in 2024? And if there's any kind of evolution already on
the potential financial negotiation with Bret Whitney on the compensation of the matter. Thank you so much.
Question: Guilherme Mendes - JPMorgan - Analyst
: Perfect clear, guys. Thanks so much. And if I may, a quick follow-up on the lease extensions. Had already agreed to the leasing rates of those
extensions or this also was still under negotiation? If you can share any kind of details, thinking that the potential lease rate that you might get
today might be more expensive than the previous one you got during the Chapter 11 negotiation. Thank you.
Question: Guilherme Mendes - JPMorgan - Analyst
: Perfect. Thank you so much. Have a great day.
Question: Andrea Ferraz - Bradesco BBI - Analyst
: Hi, good morning. Thank you for taking my question. I had two. So first, if you could provide a little color on each of the markets. So that goes above
2019 levels, domestic Spanish-speaking countries, they're 9% below, and international is recovering in automation, how do you expect the margins
to behave in the fourth quarter and 2024?
And the second question is, if you can give an update on the plans for the ideal leverage level, thanks.
Question: Andrea Ferraz - Bradesco BBI - Analyst
: Sure. Is it better?
Question: Andrea Ferraz - Bradesco BBI - Analyst
: Thanks. So my first question is, if you can provide a little more color on each of the markets. So Brazil is running above 2019, domestic Spanish-speaking
countries a little bit below, and international as well, if you can. But how do you expect demand in each to behave in the fourth quarter? And then
if you can in 2024?
And my second question is, if you can give an update on the plans for the ADR listing. Thank you.
Question: Andrea Ferraz - Bradesco BBI - Analyst
: Perfect. Thank you.
Question: Stephen Trent - Citi Investment Research - Analyst
: Good morning, everybody, and thanks very much for taking my questions. One or two for me here. First, I saw that in your presentation you
mentioned a bunch of stuff on Delta, which looks great. I didn't hear you say much at all about Qatar. Would just love a high-level view as to where
you see that strategically going on a long-term basis? And given the turmoil in the Middle East, have you seen any adjustment in the feed you're
getting from Qatar? Thank you.
Question: Stephen Trent - Citi Investment Research - Analyst
: Really appreciate that. Thank you. And just one quick follow-up, if I may. You guys have done -- you've had some very good movement on the
Question: Stephen Trent - Citi Investment Research - Analyst
: Okay. Very helpful. Appreciate that, guys. Have a good one.
Question: Neil Glynn - AIR Control Tower - Analyst
: Good morning, everybody. If I could also ask two questions, please. Following on from the last question in part.
Clearly a lot of share prices around the world in the airline sector are very, very heavily impacted by macro concerns. And Roberto, you talked about
being ready to take advantage, whether it's on the upside or the downside. But could you provide a little bit more color in terms of the increased
level of flexibility from an operational perspective or a cost control perspective? There is -- LATAM post-Chapter 11 should 2024 prove as challenging
as some share prices around the world suggests.
And then the second question. Obviously, your cash flow generation has been strong. And your -- the path you set out to deleveraging. But I'm
conscious your fleet and your fleet plan in 2025 is 341 relative to 334 at the end of 2023, which doesn't give you a lot of growth at this point in time.
So how tempted will you be, notwithstanding the GPS issue, to try to add capacity, particularly on the wide-body side, opportunistically over the
12 months or so?
Question: Joao Frizo - Goldman Sachs - Analyst
: Yes, hey, good morning, guys. Can you hear me?
Question: Joao Frizo - Goldman Sachs - Analyst
: Doing well. You guys? Okay, guys. So thank you very much for taking my question. I have one related to your guidance. So when I look at the guided
EBIT margin for the year, you guys are guiding for 10% to 11%, which is pretty much in line with the ninth month of the year. But when we look at
the third quarter, it was already 13%. So I'm just trying to reconcile your guidance with the last quarter results and trying to understand a bit more
as to what do you expect -- to what do you attribute the deceleration in margins going to the fourth quarter?
Question: Joao Frizo - Goldman Sachs - Analyst
: Okay. It's very clear. Thank you guys.
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