Gol Linhas Aéreas Inteligentes S.A. (GOLL54) Earnings Call Transcript & Summary

[Foreign Language] I would turn to English because there's a lot of people that are joining in the webcast platform. So most of the presentation is going to be done in English, but feel free after the presentation to do questions or to respond in Portuguese or in English. It's important just to share everything they're going to be presenting today for all the participants that are also connected with us. So again, thanks, everyone. Thanks for joining us here at the Guarulhos Airport at the GOL's headquarters. We have a few participants on webcast as well that is -- that access in our website -- IR website. I'm Mario Liao, probably, I know most of you, we have been -- had opportunity to meet in person in some investment conference or some meetings. But today, we are here also with our senior management team. And I think it's a good opportunity today to really present where we are, talk more in depth about the business, provide more details and also talk about where we are going now, especially in this next year. On today's agenda, we're probably going to be spending like 60 or 90 minutes. We're going to be go through some sessions. Let me switch here. We're going to start with our CEO, Celso Ferrer. They're going to provide some context about strategic context in the current environment. And then we're going to be following by Carla. Carla is our Chief Commercial Officer and CEO of Smiles, who is going to be providing some information related to sales and also business units performance in especially Smiles. And then you're going to be going through Mateus, that is our Chief Strategy Officer, who's going to be talking a little bit about network and also revenue management and then followed by Andre Cruz, our Chief Operating Officer, talk a little bit about operating performance and also the fleet and then followed by the most important -- the most interesting is they're going to be financials, right? And then following that, we're going to be going through the Q&A. So for all the participants that are here physically, we're going to be asking to do the questions. For those who are going to be in the webcast platform, I'm going to be asking to send those questions to the platform and then we're going to have part of our IR team, sending the questions and we're going to be trying to do the best in order to respond on the time availability that we have for this meeting today, okay? So before passing the word to Celso, I would like to really thank the -- thanks, everyone. Thanks -- I appreciate the support, investment and also the confidence on so many years by doing business with us. Okay. Thank you. Celso, please.

Thank you, Mario. Good morning, everyone. Good morning, and welcome to GOL. Welcome to our campus here. We're very happy to have you on board. Thank you, everyone, who just joined through the webcast. Today is a very important day as well because in this room after this meeting, we are going to have promotions to new captains. So it's the first big party after the 3 tough years that we had during the pandemic. So we're going to use the same room to receive all the families here. It's going to be a very nice day for us here. So today, as Mario said, I have the privilege to have the main executives with us today. Carla. Carla is the COO of Smiles, has joined the group 8 years ago and she is now also responsible for marketing and sales of the whole group. So -- and also customer experience. So part of the -- her structure is where we are having like a lot of synergies with Smiles. As you know, we have -- we had run the company is completely independent, including in the customer service platforms, and now we are integrating this into one kind of a platform, master platform in terms of system, the way we approach our customers, all the channels, communication channels and also how we are going to serve those markets. So Carla will share with you, I mean, how successful is the program, everything we are doing at GOL as well. So Mateus, Mateus is the Chief Strategy. He's running network [ plane ], revenue management and alliance. So he's, I mean, the key responsible for optimizing the network and all the supply and demand issues that we have now. I mean -- so he's been great with his team to optimize results. Then Andre, COO, I mean, has the most challenged seat right now in terms to face all the supply chain issues that we are facing, aircraft delays, engines. And also, we're going to talk about fleet plan, I mean the way we -- I mean, what kind of visibility we have on the MAX deliveries and how we are managing this. Then Mario, our CFO, most of you know, has been with us for 15 years. So Mario will take the lead on explaining where we are on the financial and also the whole program to address the capital structure of the company that we will explain by the end of the presentation. So thank you, Mario. Thank you, [indiscernible] and the whole team for making this event possible. So this is our propose. I mean, GOL was created to be the first for everyone, I mean, since the beginning of the company, that was clear the target. I mean we want to bring access to the air transportation and that -- this is what we have been doing for the last 22 years without little changes in our business model, but really, I mean, being low cost, being focused on how much efficiency we can bring to the system. When we started, the market was 30 million passengers per year, the air transport market in Brazil. And after 5 years GOL alone was carrying 30 million passengers, which is more or less the number we have today. So we were able to add up 30 million in very -- at the early stages of the company. We still have the lowest operating cost among our peers, and this is the clear target for the whole team here, largest players in the main capital. So we rely on our position in the footprint we have created especially here in Sao Paulo, Congonhas, Guarulhos, Rio, Brasilia, now Salvador became a very important hub for us. And for the seventh year we have been the top of mind. So we are the Brazilian carrier in the mind of our customers, really proud of it and the largest narrow-body fleet in Brazil. Our model, like I said, is really the same. I mean, the core and the heart product is being the same. We densify our planes. We have a highly adaptive network. So we changed a lot of our schedule. This is the flexibility we have by having a single fleet types, having the same crew, same spare parts pool. So we changed a lot. I mean we are the -- Mateus and his team, they do this portfolio management of the whole network, routed by routing. So we are changing to really optimize. It gives us a lot of flexibility and easy movement from [indiscernible] to the other. Strong presence in the premium market. So we have this strong presence and also we create the rules in this strong markets, having Smiles with 22 million customers and being the largest frequent flyer program in the region. So this structure, it's a very lean company. So you are visiting us our facility here. I mean comparing to other airlines, I can guarantee to you that this is the lowest cost and also the lean and the best team and the structure. Boeing 737, I mean, has been really the key pillar of the success of the company, bringing low cost, bringing high efficiency to our -- and also safety to our customers. And productivity is part of the key piece of the single fleet type and the way we manage the company is to have higher utilization, scale, generate less cost, dilute more fixed cost to deliver a best cost and best fare. So it's true that we have a company now positioned to be the largest LCC in the region. We have developed new business units. This is kind of around the core, which is the packs and the passenger air transportation. But as you can see here, we developed Gollog, our cargo transport. Andre is going to share with you, we are kind of more than doubling the size of Gollog now. For the first time, we have a dedicated cargo fleet and we wait until the 737-800 became a cargo plane to start because then we have the gains of scale of using the same crew, same operational support that we have for our passengers is the same that we use for the cargo. We also have the ability to convert passenger planes to cargo planes. It's a way that we found during the, let's say, the fleet rightsizing that we are doing, it was also a good tool that we are using in a very profitable way, and you're going to see the numbers that we are -- I mean, increase the market presence very quickly. GOL Aerotech, you're going to see that we are now, I mean, able to address most of our maintenance in-house. So we still need to do our engines outside. We have just light shop repair for engines, but most of the maintenance is done by us, and it's a huge facilities that we have in [indiscernible], Brasilia, Sao Paulo. Smiles, the best loyalty program I mean, we are increasing Smiles year-over-year. I mean even during the toughest year during the pandemic, we were able to grow the program. We are growing the premium segment of the program. I mean, that's -- you're going to see the results. That is -- it became a very profitable and -- business unit. And the VoeBiz, which is also a loyalty program that we are like benchmark with Smiles and applying for medium-sized and smaller companies. So that's now running. Numbers are growing. I mean, we can see cargo and Smiles, they are growing much faster than the airline itself and they have been helping us on generating a lot of, I mean, a big increase in our unit revenues. And also, we launched this year, the Smiles Viagens, it's a tour operator that's going to be part of the group. So we intend to be one of the largest in Brazil. We have -- I mean, in this ecosystem, we have 22 million customers inside of the Smiles program, we transport 30 million passengers at GOL. So we can provide a very good product for our customers as well in the tour operator. I mean this company, I mean, was created to bring innovation and to bring scale to the business. So most of the initiatives and the events that we have here, I mean, you can see acquisition of Varig, acquisition of Webjet, now the Cargo, it's a ways of being larger gains of scale with our single fleet type and at the same time and many, many achievements on the technology side that position us on the best cost. It's true that on the last 3.5 years, we have been facing big challenges. I mean, as you know, Brazil, we didn't have any kind of financial program support from the government, while we have like a $55 billion support, for example, in U.S. and also a big amount of support during -- in Europe. We -- here, we really rely on our main stakeholders, so employees, banks, lessors and key to flexibilizing rules when we were canceled flights, [indiscernible] Boeing, we have made many adjustments in our order, but primarily shareholders, bondholders, I mean, a big thank you for all our stakeholders, every partner that supports the business during this period. And in 2023, I mean, we made the biggest step forward with the creation with the Abra Group. Abra Group in its creation, we launched also the exchangeable senior secured note that allow us to bring new capital for the company that is supporting the operation of the company today. And what we are going to talk today is about this last topic, which is what we call the kind of capital structure program. How we're going to optimize the capital structure going forward since, I mean, this -- a big piece of this legacy is not addressed, and the company has constraints to growth. So Mario is going to share a little bit more than the -- I think the last section today is only dedicated to this program. Our focus today, I mean, if you go and walk around this building here, you're going to see that the focus of the team today is really being able to address and increased revenues, increased the pricing while we are navigating this very high-cost scenario. I mean so we push revenues higher than the cost, investments and financial expenses. I mean, we are pushing revenues really high to make sure that the company will achieve the equilibrium. Care and attention of every cost details. This is part of our culture. I mean, it's really the culture that we want, to be the first airline in the highest productivity in the market. We are getting there. I mean the 3 years that has passed was really impactful for us in terms of productivity and how our ability to have, let's say, the right amount of spare parts available to sustain the high utilization that we normally have. But it's clear a target for us. When reducing fuel consumption, not only with the MAX, but with many programs that we have in the operation. I mean anticipate opportunity flights is the way we -- and also reduce the ground -- the turnaround time of the planes is really the way our team is managing the day by day in the airports to make sure we increase utilization. Digital acceleration, so during the pandemic, we had the migration from Navitaire to Sabre. It was really painful on the -- for our customers. We recognize this, but now it's stable, and we are really accelerating the digital transformation for self-servicing. That's the clear target of Carla's team and Luiz Borrego, which is our CIO, they have clear targets of I mean how many people we are going to bring to our digital channels and all the services should be provided in the digital, easy to use the channels and leverage sales. I mean, it's a clear target to increase direct sales through digital transformation. Customer experience and culture altogether, I mean, it's the way our team behave with the customers, kindness, the way to offer really a humanized service attention to our customer needs. So this is -- I mean, what the 13 employees are really focused at this point to deliver superior results. So even I mean, like I said, the 3 years of a lot of challenges that we have been facing, we have in 2023, I mean we are an airline serving 176 markets, 16% year-over-year revenue increase, even with less ASK. So you saw in November, we have less ASKs because of the aircraft delays we are facing. But even with, I mean, stable, let's say, ASKs, we have been able to increase revenues. We are inaugurating new routes. So this is part of the, let's say, the very dynamic network planning that we have. So we are not comfortable with the network we have every day. We change. We try new markets. We are launching new routes. We are stimulating like in the regional markets, we are open. And there is where GOL can be the GOL that we really want to be because we go to small cities with a larger plane, offering larger -- less cost and offering best fares and really stimulating the market. We are doing this. Most of the regional markets today, the main regional markets is served by GOL and it's served by high-density 737, which is good. It's really transformed the city. Like we are flying at Pelotas, Passo Fundo, [indiscernible]. I mean really small cities that we enter and the city used to have one of the regional aircraft. And really, we are now being able to connect those passengers to our main hubs, primarily Guarulhos and offer connectivity to the rest of the world. 621 flights daily. This is the size of operation today, 23 million passenger so far. I think this is the September year-to-date number and minus 9 -- minus 10% decrease in CASK. So even with all the pressure on FX, fuel, but also the pressure that we have for not being able to dilute fixed cost, we have been able to offer lowest cost then comparing to last year. So this is the really the outcome of the focus of our team. So the big challenge we are facing is, of course, it's a global challenge for all the airlines. So that's really what is happening in the whole supply chain. And during these 4 years of the pandemic -- 2 years of pandemic and now steel recovery, we can see that aircraft manufacturers, parts manufacturers, they not have been able to have the same level of just-in-time or even to rely on their own contracts to be able to deliver what the industry needs. I mean so we see the supply [indiscernible] with limited industry capacity. The cost is getting really, really high. So you see escalation on parts, on engines. It's more than 9%, 10% dollar year over year. So it's really, really a different environment for all the airlines, but how specifically it is affecting us. And then you can see here that the most, the 2 big things that are affecting us. It's affecting the day-by-day of the airline by the way. And it's affecting when we have a maintenance problem in some station that in the past, we used to have, let's say, kind of just-in-time part inventory to address that maintenance immediately. Now it's taking us 6 hours. So we don't have in all the stations, the same level of inventory that we used to have. But the main pillars here and the main challenges we have today is the 737 MAX delays. So if you look at our presentation, the GOL Day last year, you would find that we were planning to have at this point 53 MAXs flying. We have by September, we had 38. And so it's 15 planes less, and we -- and of course, we were counting on those planes, and we were counting on those planes to renew the fleet, but also to renew the engine park. So the less we receive on the MAX and the new technology, and of course, the new plane comes with fresh engines, the less -- more pressure we have on our engine maintenance backlog on the 737 NGs because those planes -- most of those planes were supposed to be returned during this period, renewing the fleet at a different pace. Once we don't take delivery of the MAXs, we create two problems. I mean, less capacity and a big pressure on the maintenance side, and we don't have access to the same financial mechanisms that we used to have in the past. So the industry -- because of all the -- this is not necessarily something for GOL. I mean the industry itself, they don't provide the same kind of financing -- the CapEx financing that you used to have in the past because the industry is struggling. I mean, there is more demand than capacity to deliver. So it's really hard to address and also their bottlenecks, physical bottlenecks to be addressed all the engines at the same time. So it's a cash constraint, but also a physical constraint to have slots in most of the MROs. All the airlines are looking for slots at this point. I mean we have engine pressure all around the world. The result is that the GOL capacity is now -- I mean, it's still below the 2019 levels, 89%. And this is constraining our growth. So we have a very profitable network. We're going to show you -- I mean you saw the results, 27% margin last quarter, I mean, we are seeing the market, I mean, very healthy at this point, and we are not able to grow at the pace we have planned. The markets grow. I mean we have a high expectation on GDP. More and more, we are seeing that, I mean, spending on services is growing again. You see that during the pandemic, we have a retail spike, but now services is growing. We can see day by day that corporate market is recovering. We are seeing like our Congonhas, [indiscernible], Rio, Brazilian network now getting the right traction. I mean, we have been flying most of the -- especially last year, which I can say is already after pandemic, we were flying like less business, more leisure, more VFR. Now -- and we always say that, okay, maybe there is an upside on corporate that will come. I can say that it's coming. It's coming, still not there yet. We're still like 80% in number of passengers, corporate passengers that we used to have, the revenue is way higher than 150% of what it used to be and is strong and now really in the core of our network because the way we -- I mean, we have this company set up and the footprint we have is really relying on the corporate markets that are now performing well. So still an upside you're going to see now in the Carla's presentation of what we have in terms of sales, even with less seats or stable capacity, we have been able to sell more and this is what Carla is going to share with you. Please, Carla. Thank you.

Good morning to all. I appreciate your being here today. I will start by presenting the evolution of sales volume. The pace has been accelerating, and we have closed the last quarter with a growth of 18% versus the third quarter 2022 and third, 39% versus the third quarter 2019, it's a good evolution. And important again is the growth in sales in our e-commerce channel where we have a strategy of continuous evolution of the customer experience. And we intend to continue strengthening sales across the channels in our ecosystem. It's very important for us. One of the channels we invested in and launched this year, which will gain a lot of strength next year is our travel operator, Smiles Viagens, okay. We're working with 3 verticals, B2C, we've differentiated, B2B and B2B2C experiences. Partnerships with companies that want to offer recent solutions to the customer. So it's a good opportunity for us. The next slide has a summary of what we have worked on this year in Smiles Viagens. We already have over 800 hotels available. In addition to GOL, we have 8 more line partners and partnerships in the traveler ecosystem such as parks, stores and others. Our goal with Smiles Viagens is the most -- sorry, our goal is to be among the 5 largest companies in the market by 2026. So I have great challenge. About Smiles, Smiles is the most complete travel platform in Brazil, in additional to GOL, we have fifth airline partners and flights to 106 different countries. We have third 5 bank partners and co-branded cards with 3 large banks in Brazil, Banco do Brasil, Bradesco and Santander. Besides the flights, Smiles customers can redeem hotel accommodations, rates and car by tickets of for tours, parks, [indiscernible] rights or product at Smiles marketplace. Regarding Smiles, it gives me great pride to talk about this year's results, another year of records and overcoming. Year-to-date revenue of BRL 3.7 billion, 13% better than last year and almost double 2019. More than 170 billion miles redeemed almost 40% higher than last week -- last year, sorry. And the customer base continues to grow, okay, by more than 30% compared to 2019. And we will close the year with more than BRL 2.5 billion in deferred revenue, so very strong. This growth is also reflected in the market. Smiles has a 49% market share of the entire loyalty market in our sector and major programs. For me, this growth is closely associated with our capacity and agility and innovation compared to the competition. For example, this year, we have launched the new program rules, broad innovation, Smiles is the first loyalty program with a gamification concept and unprecedented benefits such as gift tier and upgrade pass. Another example, we have recently launched a club and Smiles sales platform for companies, okay, as a way of benefiting employees. It's a new product. Innovation is the essence of Smiles. And I believe that's why we have again, recognition as the best loyalty program in Brazil. The last slide highlights in the action we took together with banks to increase sales of our co-branded card. In this campaign alone, we sold 120,000 new cards. This year, the average accrual of the co-branded cards grew 30% and the monthly spending of our base is BRL 1.2 billion, a high-ticket cheaper customer, which is another important example of the growth of our products and offer customers engagement refer program. We still have many opportunities at [indiscernible] and we intend to maintain this momentum of accelerated growth, a strong feature of Smiles, right? Thank you. Mateus?

Thank you, Carla, and good morning, everyone. Thank you for being here investing your time this morning to see how GOL is evolving. It's a great pleasure. And I will start by talking about our network. So given the context that also just shared with you, capacity constraints and difficulties related to the supply chain, we had to take some decisions. We took some decisions in the direction of having a defensive network as a first step to ensure that we were paving the way for future growth. So basically, what we decided is to keep the main strengths of our network and to optimize some very important features of this network. What I mean by those evolutions. So we were able to keep all of our main strategic positions, our slots, our position in the main cities, our expansion on the regional, our investments on the international. At the same time, we had to concentrate those network and have connecting banks even stronger than on the pre-COVID basis, which should mean that we traded off this evolution on the network side with the costs, which is not true. So the team was able to capture the best of the structure of the network in terms of costs. So we are quarter-by-quarter increasing utilization of the fleet. At the same time, we are increasing the number of connections. So this together, again, paving the way for future growth and our beliefs what do we foresee for the future is untouched. It's there. So we were able to optimize the short term with limited resources. At the same time, we are not giving up any of our future positioning in this front. So here, we were keeping connectivity on the main airports, high frequency, meaning that we have the best or at least the second very well-positioned schedule for the main airports in Brazil. The main business airports and as also shared this second half of the year, we saw some recovery in the site, which is translated in the results you started to see in the third quarter. Again, one of the important piece of how we are innovating in terms of network is related to Abra. So now we are talking to them how to better use both these strengths and create real right chewings on the network side that will provide value for both companies and for the group. I will show one example that we just launched, and I will comment more on that in some slides. But here, this is how we see the network. This is how we track the performance internally. And this is how we have the clear different milestones for each one of the pieces of the network. So we have the regional as also explained. On the regional is really the frontier of expansion. So here's how we attract new passengers to our system. Here's how we start the expansion and here's how we keep the purity of the low cost at most comparing to the other 2 buckets. What I mean here we have a very different pricing strategy. The prices are -- the dispersion of the prices are lower on those markets, and we really want to stimulate the demand to reinforce the core and the international parts of our network. So it's clearly very different to the other. We are very proud to say that we are leaders in terms of seats on the regional, which is somehow different from what we are used to hear. But here is the real regional that when we come -- we take the low-cost examples of the world, in Europe, in the United States. This is the way they do, they operate and they clearly change the dynamics of the economics of the region. So it changes the dynamic of the city, changes the dynamic of the neighboring cities as well. Then we have the core of our network. It is business orientated. It relies on connectivity. And here, we have normally less sensitive -- price-sensitive customers and the optimization, I just explained, in terms of network is making that the regional and the international, they are pressuring the core, and they are at this point in time asking for more capacity. You were seeing the numbers of the load factors we are releasing. And we are on the day by day trying alternatives and trying ways to keep all those 3 buckets in a good relationship although we clearly see that we miss some capacity on the core nowadays. And on the international, it's another lab of innovation in terms of network. We are really changing our international. So we are changing the way we sell international. We are changing our presence in international. We are changing our marketing in international. And we are being able to do all of this together with strong partners, making sure that we have all the right chewings prior to enter. So well, it takes some time to develop a new route. So maybe you are seeing that we are releasing less routes, but we are making sure we are very strong on each of our bets in terms of our international. Here, a very special thing that changed. So as I already shared, we keep our positioning on the main airports, but in real regulation forced us to change our strategy in that particular 2 airports that is the Galeão and Santos Dumont. And well, the good news is that the team managed to do something very interesting there. Coming back to the old distribution of Rio airports. Basically, Santos Dumont Airport use should be the main one operating in that city and basically 1/3, 1/3 and 1/3 per airline operating there, which means, well, it's difficult to see a clear position. It's difficult to extract value. It's difficult to show that you are the best option. And while the airport is a lot constrained. We were managing to have the best option for our business passengers. But we were missing something. And with this new distribution that basically we will stay Santos Dumont, Congonhas, and Brasilia. And in Galeão, we will have more than 30 destinations. We are being able to serve our international partners, serves ourselves on the international to strengthen our position in the Galeão and we really believe that we will run in the direction of having a position in Rio that is close to the pre-pandemic when we were 60% to 70% of the capacity of the airport. It's very strong. The brand of GOL in that particular state. The customer base, as Carla shared about Smiles. It's really strong in the state of Rio. We were questioning ourselves at what point this would bring sustainability to our operations in Rio and now we have no questions to ourselves. It's really, really changed the dynamic in Rio. And in Galeão Airport, our equipment, the 737 has almost no operational restriction, which means we are being able to -- even though we are shrinking a little bit in the number of departures from Rio, we are increasing the number of seats, less cost per seat, higher capacity of connecting and being really different there where we were like stuck with the other. So this is something I -- here talking about the international opportunities, I just would like to share something that is on the top of the page, that is the evolution of the load factors on the international, so almost 7 points and it really brings the international to the profitability table on our case. And while it's a different system that we changed during the pandemic, it's a different network connectivity. It's a different way of approaching our partners to do those business to be really sustainable. So it's taking more time to develop the international, but it's clearly much more sustainable. And we are creating a very different position to keep growing on this side. So we are seeing that not only on the load factors, we are seeing that on the yields of the internationals. And we are seeing that on the how we sell our partners. So just to give you an example, we sell our main partners, and we are being able to sell 10% of their capacity to airports and destinations that we almost never operated or operated as body. So what makes someone entering GOL website to buy a ticket that GOL doesn't operate. So the brand awareness of GOL for the international is really strong. We were missing a system as enabler. Now we have the system. And now it's changing the way we see international and changing the way our partners look to us. They were looking like a connectivity tool. Now they are looking as a sales machine with a strong connectivity tool. And here just to give you an idea about what we are in talks to our partners. So first of all, we are selling -- in some months, we reached 5x what we were selling in 2019. It's really impressive. And we also have Smiles as a strong player on the international markets. And here, we have our strategic partners, so for instance, what we are exploring with our strategic partners, let's take it as an example, American Airlines. We have our Brasilia, Miami and Orlando flights. Let's take the Brasilia and Miami. We connect to 30 cities in Brazil, almost 30. We connect to more than 30 cities in the United States. So it clearly makes -- opens the options for the customers, and it doesn't give us an exposure to the direct segment, which is very different to the pre-pandemic and to the previous partner we used to have in the United States that were not so strong in Florida. So now we are connecting more passengers. It strengthened our position with -- strengthening our position on our own flights and also bringing to the table more sales capabilities. So this is one example of what we want from our partners. We don't want only them to be to sign a deal with us or to have the connectivity with us. We want our partners to create growth opportunities with us. And this is exactly what we discussed with Air France-KLM that we will explore in the next slide. But also, I'd like to explore here, our recent announced operations, Guarulhos, Bogotá, EZEs. So the 3 main domestic markets in the South America in the 3 most important cities in terms of economic environment with the 3 leading airlines. So the right to win the positioning we have when we launched that flight, we're not being able to launch that flight without this organization with our partners. So what we can create are really new things. We are positioned to do that, and we are keeping all of our strengths on our domestic network. We probably will have -- very soon, we will have new commercial developments with an airline on Asia, Middle East, but commercial, that's been very clear not to -- but it's important to keep our position with our more than 70 partners all around the world. And it's important for you to know that we are seeing our partners in a different way and our key partners are also. So years ago, the partners were protecting their hubs. So don't operate my hub. Then capacity constraints were a reality all around the world. And everyone understood that it's good as a risk diversification to have newer portfolio partners operating in your hubs. And this is something that the airlines are not speaking too much, but the potential to change the dynamics on the worldwide and on the alliances business is really big. And here, just some comments on our recently -- also recently announced deal with Air France-KLM. And it's important and deserves much more than a slide because of the single fact that when we were negotiating with them, I was reading the press that they were to close very soon, a big deal with another airline. Well, we understand why people were entertaining those thoughts. They have some alignment with other airlines. But clearly, the message here is Air France-KLM, looking to the region that is very strategic to them and said -- and they made a choice. They have chosen to continue with us. So they think our network is reliable. They believe our operations is the best one to carry their passengers, including their premium passengers from [indiscernible], for instance, and they also think that, well, there's always trust in the middle of those alliances conversations that the trust they were able to do together with us in the last 10 years will worth the next 10 years. And of course, we talked about exploring new growth opportunities together. And this is one of the reasons they will support us with the engines maintenance. That is a key piece for our growth in the future. So I would like to emphasize what this -- it means. It's much more than a simple agreement that we will extend for the next 10 years. There's a lot of trust involved from a very important partner that sees the world in a way, in a privileged way, I would say. And here, I'm switching a little bit to revenue management. So all of this, we are doing all the efforts to extract every penny from our network, and we are taking care not to restrict the access to our network. So the high levels of load factor means that, well, we are working to get high yields, but we are not making difficult to access our network. It means there is capacity constraint. We are not limiting people from accessing our network from buy our tickets. Sometimes we see people trying to say that airlines are enforcing artificial things. It's not artificial. We are 85% load factors. We're trying to attract all the customers possible, but we have a capacity constraint. And well, very proud to see that the gap among competitors, it's becoming very tiny, and we are working hard to make this reality changing very soon. What I can anticipate is that the -- we showed the third quarter the results. And for the fourth quarter, we were talking about a very rational environment in terms of the booking [ cohorts ], the pricing environment and this goes on. It's true that because of the seasonality, we are seeing some slowdown in the sales nowadays, but everything as planned. So no news in this path of good news, I would say. And how we are being able to achieve that? Well, market explains the macro explanations on the market, but we are really working hard to change our pricing strategies, they have to change very quickly. Sometimes, we are using humans because the systems are not being able to understand Brazilian reality in a fast pace. And well, I have a team of analytics, 60 people working to do the analysis, the most in the most technological way. But still, we are relying on people at this point in time because everything is changing so fast, and we are being successful. We are changing process. We are reviewing structures and we are investing a lot on integration with the other departments of GOL and technology as well. Technology, we are starting new projects, but very soon, we will talk about artificial intelligence and systems that will be proprietary to GOL, that we'll be able to do the changes in an even faster way. So this -- with this, I end my presentation, and if you have questions, I'll be happy to answer at the end. Andre?

Can you hear me? Good morning, everyone. Thank you, Mateus. So good morning, everyone. I hope you have a good reception here. Thank you for participating today in our GOL Day. It's a pleasure to have you here -- all of you here in our headquarter, Sao Paulo, Congonhas and for those ones that are watching us through the webcast. So for this event before I start, I prepared a couple of slides to talk about a few important things. The first one is our fleet, how we are managing our fleet and which are the next steps and how we are dealing with the fleets and constraints that we are facing now. The second one, I will talk a little bit about our cargo operations and the impact of the cargo operations and how the cargo operations brings benefits to the fleet itself. And the third one that is important as well, some environment initiatives that we are taking for the company and that put us pretty much in line and closer to our target to reach zero or neutral carbon emissions by 2050. So here, talking about the fleet. First, you're going to see that from 2024 up to 2027, we didn't split the MAX aircraft and the NG for the simple reason that we are facing a lot of problems to take the lever of the airplanes, the manufacturers as also mentioned, it's a global worldwide supply chain issues that we are facing and Boeing is impacting that as well, taking delivery of the airplanes. But that's the direction that we believe that we're going to have on the fleet side by 2028. That's the first important thing. And then more than that is that our fleet renewal keep ongoing. What it means with that, I mean, since July 2018, 2019, when it took delivery of the first MAX even with the 20 months of grounding of the MAX, we are keep growing, keep taking delivery of airplanes, keep replacing the old technology airplanes by the new technology airplanes, and that brings us efficiency. And why is that so important? Because one of the drivers of this company since day 1, since its foundation is to have the lowest cost. And the only way to reach the lowest cost in this company is taking initiatives or through the technology or through the process and procedures or new initiatives or other actions that may help to drive our cost down. And then in this case, we are bringing here some comparisons about the MAX 10 that we start taking delivery for their planes very soon. And when you compare, as an example, old technology airplane a 700 airplane with a MAX 10, you can see the huge number of seats, the plus seats that we can offer on the MAX 10. And on top of that, it is a big driver for CASK or a CASK reduction that's really important for the company. And then we -- you can make 2 questions for me. Hey, Andre, why MAX 10 replacing 700, not necessarily replacing 700. But at the MAX 10 this airplane is going to play important roles for us. The first one, somehow, the 800s or the MAX 8 can replace the 700s or even the MAX 10. That's one piece. But the second piece, the MAX 10 aircraft is a niche aircraft. We don't intend or don't have plans to replace the whole fleet for the MAX 10. So the MAX 10 is going to be used in those different scenarios. First one, where frequencies in some airports are not important. I mean or because I have large constraints or any other reason. And the second one, where up-gauging the airplane is more beneficial than adding frequencies. And the second one is put in the MAX 10 thing, especially on our hubs where we can feed other markets with the MAX 10. So it's an important airplane. It's an [indiscernible] airplane, as I said, but it's an important key to drive our cost down, and we are pretty much in line with delivery of the airplanes in the coming years. On top of that, we have 103 airplanes on order. We have for that, a very flexible, streamlined delivery schedule with Boeing, which help us all the time if you follow go very closer. You see that we have supply and demand adjustments all the time and having flexibility in our order helps us a lot to manage that in knowing times where the demand is not at the levels that you are expecting, then we can adjust the number of airplanes that are in the fleet. And on top of that, having a newer fleet helps us on the efficiency and productivity, which means that the airplanes can have a higher utilization, a higher dispatch reliability and more than that, a higher on-time performance. When you have all those combined, you can have their planes flying more. Once their planes are flying more, we have in this company, what you call, we are fortune, it means that I have -- there are planes flying more. I can dilute more cost. Once I dilute more costs, I can offer more seats in the market with lower fares. And then how those benefits is reinvested in the company for a continuous growth. So that's the way that we see that with a newer fleet and the investments that we are doing on the fleet renewal is bringing for the company. The next one speak a little bit about our logistics. I mean we can compare our cargo operation as a whole by any metric in terms of market share, seat service, cargo tons carried and any other metric, where you see that we are improving and that's really good for the business and for the investments that we are doing. And more than that, recently, we have -- we announced the partnership with Mercado Livre that here drives 2 things that usually we don't talk much about and that it's important to bring that to you today. The first one, for sure, we have 6 airplanes converted at this point and you have 6 additional to go. So this business can grow up to 12 airplanes. But more than that, what we don't talk much is that once you have this program with Mercado Livre, it helps us in 2 things. One, it helps us to have a cost avoidance on the lease return airplanes. You know that this return in airline is a very expensive activity, so instead of a return on airplane and we convert the airplane to cargo, we put future -- or today, cost obligations to return airplane, we moved that to a future cost return obligation because the airplane is maintained here and you move that to the end of the new agreement. That's the first piece. And the second piece that's important, Celso, mentioned in the very beginning of his presentation, the drag that we are carrying on, on the fleet side and the challenge that we are facing to put this fleet back in service and also the constraints that we are facing with the supply chain in the market. Every airplane that we convert to cargo, it's one less airplane, one or airplane from the operational side that you can replace for a new technology airplane for a new MAX; or two, is an idle aircraft that I have to put it back in service and converts to cargo that you don't need to worry anymore on the passenger side. So at the end, the system or this cycle -- virtual cycle of cargo operation benefits in a way that Gollog is more relevant and more presence and emphasize our presence in the cargo business, but more than that brings us a huge relief in the passenger side, on the aircraft on the passenger side, helping us renewing the fleet, bringing all the benefits that I said before, but also on the idle aircraft that you have in the fleet as of today. So here, I'm bringing our maintenance facility. Most of the things that you shall listen on a company that has a single fleet type like the same pilots, crew pilots, ground mechanics, parts and everything of a single fleet type, all those benefits, you listen that a lot. What I decided to do here today is a big difference, the things that you don't talk on a day by day is that with those facilities -- first, we have 3 facilities in GOL today, one in Confins that was one of the largest ones in Latin America, so it's the first Aerotech, we call Aerotech 1. We have Aerotech 2 in Congonhas that we have capacity for 2 additional airplanes. And more recently, you have Brasilia that we are calling Aerotech 3 where we have a huge capacity there, especially to support the airplanes that are flying out Florida, where we can have the maintenance overnight there in the [indiscernible] and Brasilia. But more than that, what we can do with those facilities and how it can help us work with those facilities to reduce our costs or bring our costs down. The first one is that we do everything in-house. So we can manage the capacity of the facility, considering the seasonality that we have in Brazil. We have the high season very high and the low season, very low in this country. And with that, we can manage very well the manpower and the airplanes that are in the [indiscernible] and their maintenance. So in this case, in the low season, we have more airplanes under maintenance and at the high season as less as possible, sometimes 0 airplane going through maintenance that's one thing. The second one, having a single fleet type, that's very helpful for the maintenance is the efficiency and productivity. How we can get that on top of the process procedures and everything is standardized that you have on the maintenance side. Repetition is a key. Every day, you have the same aircraft type, the same level of job, the same level of maintenance. The reputation drives to quality, to efficiency and lower costs. So the combination of having those facilities where we can manage, the ability to manage that in the best way and having a single fleet type that help us to make the same process, the same activities over and over and over again, helps us not only reduce the turn time of the airplanes in the hangar, which is cost, every plane that is parked is cost, and secondly, help us to be more efficient on the day by day on the teams that you have there in place. And on top of that, we are doing some important investment in shops as well in our facility. How we are doing that? I mean we are [indiscernible] those shops that are more relevant, which with low investments, we can bring huge benefits. Here, I'll bring an example of the engine shop. We used to say that our plane is 1/3 engine, 1/3 airframe and 1/3 the other engine. So 2/3 of the airplane costs are engines. So we are making some investments on the engine shop for light repairs. First, we are working in some module replacement as well. We'll replace modules of the engines. And more recently, in conjunction or in a partnership with MTU Germany, we developed together a replacement of HPT blades that are issued that we have on the engines [indiscernible] for the fleet. And now we are certified to do in our facilities there in Confins, the replacement of the HPT blades. Why that is so important? First, we don't need to ship the engine outside for -- any shop as also mentioned, we have large constraints, we can do that in-house, one. Secondly, we avoid the turn time of the engine, not only the engine shop, but the logistics for in and out of the shop. And also having the engines faster available for us, the number of spares can be reduced as well. Because instead of considering 60 days turn time for an engine, we can do that in 15, 20 days. Those 40 days of savings that you have in an operation like this, at the end of the year, it's saving engines that I don't need to have as a spare because the turn time is much faster. So that drives cost, drives investment and drives efficiency and productivity for the company. Here, at last, I'm bringing some initiatives that we are doing more recently on the environment side. But before that, it's important to mention that GOL was the first airline in the region to commit to have a neutral carbon emission by 2050. That's the first piece. This is pretty much aligned with the industry, IATA, and that we are really proud of that for us. Secondly, we have -- it seems that the 2050 is too far but years are passing so fast that we needed to start acting now to making sure that we are there where we must be. And first, to achieve those that target, how we are working internally in the company. For the 100% of emissions that we have today, 15% is going to come from the new technology airplanes from fuel savings that we are having with MAX. So MAX is bringing more efficient fuel savings, less emissions, less noise and other things that the technology airplane is bringing. That's the first one, 15%. 3% is bringing from initiatives on operational initiatives. Just easier to have an idea, we reached over 2% with ops engineering initiatives and other things that we did in the company, so over 2% of fuel savings is expected by 2050, we reached closely to 3%. So 15% from the new airplanes, 3% from the operational initiatives. Another 64% from SAF, so sustainable aviation fuel. Here is an important thing. We need to have a regulatory framework to making sure that the airlines and the companies, they're going to work together with governments, local governments to making sure that we have that benefit they produce. It's much more than having SAF is how we can produce in a commercial size, the first one. You have a scale, second. Third, how we can have a competitive pricing on that. Otherwise, it's going to be really difficult for the airlines to adopt and keep using that. So 64% is coming from the SAF. And the remaining portion that we have as a contribution, our initiatives made by the own passengers. And that here comes to the [indiscernible]. It means that every ticket that every single passenger buys in our website can be neutralized and that helps. And we are considering that by 2050, we're going to reach closely to 18% of every ticket that's bought in the company website is going to be neutralized by the passengers. You can do that while you are buying your tickets but also if you fly and you decide to neutralize afterwards, you can go back to our website, do the process again and neutralize your carbon emission for that specific fly. And then you're going to ask how much cost? It's not much considering the benefits that we are all together in this planet, and we need to make that a better planet for everyone. It's one-hour flight, if you look at one-hour flight, we are talking about less than $1 to neutralize your carbon emission. It's not much. And I believe that more and more the passengers, they would be adopting this and making sure that everyone together, we are going towards to have a better planet for everyone, for us and for the future generations, okay? Questions? I give back to Mario. Mario?

Thanks, Andre. I'm very delighted to start the session. But before that, I think it's important to show that we're going to be talking about the numbers that we usually have these conversations during the meeting, investors conference that we have with all of you. But despite of that, you can see there, clearly, you have a company here that is continuing to evolve, is continuing to expand, have a clear strategy. And in terms of how we internally organize, we're not going to be talking further and especially I think right now it's the right time to start to talk about the capital optimization plan that there are some of the colleagues, for example, Carla, that has continued to expand and continued growth is miles. We've a lot of opportunities. And the company has got to start getting greater network that is the strategy to continue to grow. Of course, it depends on the variability of aircraft. That's the key of our factory, our machine to continue to produce further profitability, but the fundamentals are there. The fundamentals are very strong, are very solid, is correlated to the foundation of the company that is going to be the pure low-cost model, and that somehow has been impacted by the last capacity that has been able to deploy. So here in the first page, you can see that despite of impact in terms of the capacity, we have been able to combine both strategies in order to look in terms of the unit cost and also on the revenue cost. So we have been able to maintain the balance between both sides. While we have been talking about a lot about the delays and also the [indiscernible] in a smaller offer than we initially expected when we launched the guidance in the very beginning. We continue to maintain the cost leadership in the sector and continue to expand yields into a much superior level compared to our peers. So you can see on the -- on your right side, more than 50% expansion compared to pre-COVID that was coming first from the capacity discipline in the beginning of the year when we start to see much higher impact in terms of the cost pressure, especially on fuel effects. They're still there. I think we remember that 3 or 4 years ago before when you start to talk about -- to see about the impact of the pandemic, most of the -- most of you participants were very skeptical that companies can survive in an environment that we have effects at BRL 5, few price per liter beyond BRL 5 and of course, it is impacting the profitability. It's -- those cost has almost doubled since the life of pre-COVID. But we're starting to see more stability or less volatile environment that enables us in terms of management to be more effective and try to compensate parts of that impact on costs through yields, but of course, not totally, but it's in an environment right now where all the competitors are in the same challenge and are very disciplined in terms of how they are looking in terms of management going forward. So by addressing the fleet viability, we understand that we can produce further cost dilution. You can see that we are continuing to maintain the cost advantage. Of course, that advantage has narrowed because most of the competitors have already got back to a level that was around 100% or even beyond 100% of the 2019 [indiscernible] levels. We're still lagging behind. But while we still have less dilution on cost, we're still trying to maintain that cost discipline, especially on the fixed cost. We are a much more lean company. We are producing in comparison to 2018, much higher revenue, but into much less capacity. So that's also resulting in a much lower fixed cost under our structure. So we want to continue to keep that. We want to continue to be more efficient. And with the strong positions with the key airports and the exposure that we have really in order to capture the continued very strong performance -- strong performance in terms of the leisure traveler, that's really what has been supporting the demand right now. But in terms of this continuous slower but continuous recovery in terms of business passengers and you saw that we are very well positioned through our large program for our key airports in order to capture that presence in terms of the business passengers. That's the main driver -- the main formula to continue to deliver consistent profitability throughout the years. And the profitability is here. We have been -- continuing to be one of the top-tier international [indiscernible] benchmarks among the industry. We have been delivering consistent margins throughout the year. We are talking here in terms of EBIT margin, operational margin in terms of all the peers in the industry. We're on the benchmarks, delivering 4 consecutive quarters of EBITDA margin -- EBIT margin beyond 15%. EBITDA margin, roughly close to 25%, that is roughly what we expect to deliver throughout the year in terms of the guidance for 2023. And considering -- and that comparison is considering all the -- what is under the financial statement is including all the non-incurring costs even in a scenario that during the third quarter, the most recent results, we also have no recurring or unexpected costs or that's not part of an ongoing business related to anticipation [indiscernible] that's very costly, but it's our may priority to really bring the efficiency back to start to address the [indiscernible] of the aircraft. There has been delayed because of the delays in terms of new aircraft that was supposed to start to be delivered this -- especially during the second half of the year. But we are delivering a much better performance. And the focus here is that we can continue to deliver an ongoing business and maximizing the return of the key markets where we operate. And just getting back a little bit, I think it's important to remember in terms of the history that Brazil is a very cycle economy. And we experienced a lot of volatility for different reasons during the last, let's say, 10 years. That was actually those 10 years that the market didn't grow, and the passengers have been continuing in a level of 100 million passengers in the industry. And that's different than the first phase of GOL from 2001 into 2009 that we call as a GOL effect that the entrance of GOL stimulated the market, popularizing their entrance but in the industry almost triple the size of the industry. So because of the downturn of the economy, so that is starting in terms of slowdown from 2011 and entering a very deep recession between 2015 and '16 that impacted the margins and that also leads us at the time to enter into fleet restructuring. And there was different reasons, but we also had to adjust the fleet during 2015, '16. We returned almost 29 aircraft because of the lack of demand. And after that, in the following years, we start to recover the profitability. We start to grow our revenue basis and we reach -- then you can see that period from 2017 to 2019 that we reached one of the most highest record levels of profitability back in 2019, almost reaching 30% of the EBITDA margin. And of course, the challenge that we faced during the pandemic, especially in 2020, '21, that was much heavier in terms of the immediately slowdown downturn related to the demand for different reasons. And then we start to implement, of course, what we show as a liquidity stability. We try to maintain the stability. We try to keep the company running the business while we understood that after the pandemic, the company could emerge in the same way how we started the operation, so meaning that the fundamental was still there. But we carry a lot of deferrals. We negotiate a lot with the main suppliers, with the main stakeholders. So that's something that, of course, we need to resolve now. We have been talking about the capital optimization plan, the restructuring and why that's been happening now. First is because we have been able to deliver one year of track record, now one year of stability in terms of margins. 2022 was when we reached a 19% EBITDA margin. This year, we are expecting to reach mid 20s that is consistent to the guidance. And we estimate that this year, even though we are still carrying a lot of those drag effects and that is associated in the P&L. So like having much higher discount rates, carrying a lot of costs from the deferrals from the agreements that are still under our balance sheet, the lack of aircraft is also increasing the cost that we have in terms of our relationship with the customer in terms of recommendation, in terms of cancellation for bad weather conditions. So those things, we estimate that is impacting something around 2% to 3% EBITDA margin in terms of how they are increasing the cost, increasing our unit cost. And that's something that is the right time to start to look on that and even though we are still not delivering any guidance for next year because we still have a lot of uncertainty related to how it's going to be the pace of [indiscernible] we understand and we estimate that if we're going to be able to start to address and reduce those drags, we're going to have like 2 or 3 percentage points that is embedded in our results that or even increase EBITDA margin, and that's going to be a natural process in a scenario where yield environment is going to be somehow stable. The company is going to be still very disciplined. We have an opportunity because we are still carrying around 20 aircraft, idle, 20 aircraft that are paying leases, 20 aircraft that requires some level of costs associated that is inside of our P&L. There's not generating any [indiscernible] and we can really deploy those [indiscernible] back on track, back on the machine that is producing a very good level of profitability. So on the right side here, you can see the leverage. We started since the beginning of pandemic, the process of deleveraging. The most fast deleverage process started by the fourth quarter of the last year when we started to reach to this level of normalization in terms of our profitability. And then from almost 10x net leverage, we are reaching now close to 5x. There is still far what we intended to be in terms of financial policies that back in 2018, back on the beginning of GOL, we are much more around 3x. But most of that deleverage was only related to the production. The gross debt or the balance sheet issues are still in the balance sheet. So that's the right time now where the company is delivering profitability in order to start to look on that in order to further expand deleveraging process in the future. We did a lot during this, let's say, 3 to 4 years. We reached all the stakeholders, all the stakeholders are a very long-term relationship with the company. We did first in terms of the renegotiation of debt. We issued during the pandemic, $650 million of SSN secured notes, maturing in 2026, and that was subject to refinancing a changeable exchange transaction during this year, where by the creation of Abra, the holding company, around more than 50% of the '25 and '26 bonds were exchanged into a new SSN -- into new secured notes, maturing in 2028, where BRL 1.1 million out of the BRL 1.8 million of the outstanding amount of that the receiving in our bonds has been changed into a longer maturity and also reduce partially the exposure with a market value that was around $600 million. In addition to that, we were able to also raise through our holding company, our controlling shareholder, Abra, new money of $450 million. That was crucial, was key, especially during the year that was very challenging for credit market even in the international market but also in the local market because all the distress happened through some retail company in Brazil in order to bring this new liquidity that was key in order to start to reinvest for essential CapEx activities, [indiscernible] and really put back some of the capacity that was supposed to start to be in the beginning of the year. We have also been under discussions with lessors. During the entire pandemic, we tried to keep in terms of all the negotiations that we have with lessors to not be prolonged in terms of deferrals into more than 3 to 4 years because we understood that the cost of those deferrals is going to be very expensive and it's going to be very difficult to manage after the end of pandemic. So we have been keeping a frequent dialogue. We have more than 25 lessors. So imagine how frequent we have been under interactions with those. Basically GOL team through Andrea's team, the fleet team in a constant dialogue in order to keep the market rate of the aircraft, the lease price into some level of normalization and then extend in a short term 6 year -- 6 months deferrals. But of course, right now, we understand that it's not going to be sustainable into an environment that the market -- the aviation global market is requiring a lot of demand of new aircraft, and we have this constraint related to the manufacturer to continue to stand in the short term. So we were [indiscernible] really touch base with the lessor community to create a fair and definite solution that we can solve in a definitive way, all the exposure that has been created during this pandemic. So we started on negotiations in the midyear. So it was by the beginning of the second half of the year, we hired 2 advisers, those in the very beginning, SkyWorks, and then most recently, we hired Seabury. Seabury was also one of the advisers that conducted the restructuring of the fleet from one of the competitors. There was Azul that was concluded by the end of this third quarter right now. Basically, our exposure with the lessors are -- very common, it's almost the same, the same lessors that work with Azul [indiscernible] GOL. But in our case, we are the only biggest operator of 737-800 Boeing aircraft in the region. So there's, of course, a lot of willingness in order to find a common solution and why we understand that the dialogue is going to be friendly and why we launched it capital optimization plan and restructuring of the lessors in a conceptual basis because the company is running into good operating performance. So those lessors are stakeholders that they are not just focused on very short-term relationship. They are focused on long-term relationships. So every lease agreement has in terms of average term around 7 years, 10 years and 12 years. And during this period, of course, Brazil is going to be exposed to a multi-cyclical periods that, of course, can produce some kind of a slowdown in terms of demand. But in a broad picture for the next 10 years, the company we're going to continue to deploy in a very efficient way. So we are talking with them very frequently. By the end of last year, we created a partial solution that was just to avoid the very short-term exposure. We [indiscernible] 2026. Of course, right now, our priority really to avoid big maturities coming in the next 3 years. So we want it to be longer on that, that we can really invest and focus on the underlying business and not, of course, been under the exposure in the next 3 years on the big maturities that can impact our ability to continue to grow. There's also other initiatives both on the equity side and both touching basis the relationship that we have with the local banks. We did a renegotiation of the [indiscernible] that we extended one local exposure that we have more than 10 years under the exposure with the major 3 Brazilian banks in Brazil, Santander, Banco do Brasil and Bradesco. So we're going to be able to extend for the next 3 years. And of course, into this concession or broad capital optimization plan is something that, of course, requires additional discussions with them. But we did that also in the back of potential support from new source of financing coming during the pandemic period, but was only rely on the Brazilian banks. We did our [indiscernible] during the pandemic. And now you can see there was a right decision that created a very important collateral for the company that enable us to really do the restructuring of a new debt [indiscernible] really right now the main collateral for all this, let's say, optimization of balance sheet that we did recently. Shareholder, basically, the controlled shareholder also invested on equity during 2021 [indiscernible]. We also have the support of American Airlines that you saw on [indiscernible] presentation that has been expanding the network and invested $200 million of equity during the pandemic, and we renegotiated payables with the main suppliers as well. So where we are right now? I think this is the transition of what we wanted to discuss and then we're going to be doing very quickly and then go to Q&A. So first, we have a good operating performance. And then we are delivering this 27% EBITDA margin more recently in a very consistent way, but still have some drags on the balance sheet that everything is accounted. So you can see in our financial statements, there is an increase in terms of payables in the short term is something that we can resolve through the operating margin performance, but it's going to be taking longer because if you wanted to address all the CapEx issues, all the balance sheet, they are still setting in terms of deferrals. Airlines do need to produce probably 40% or 50% operating margin that, of course, is not feasible, even in a scenario that GOL is really right now in terms of the top tiers of EBIT performance so far. And we have equivalent of 20 aircraft in terms of CapEx requirements that we are paying as a drag, and is impacting our P&L and of course, require a very relevant amount of CapEx to really invest that. Given the current demand, the company cannot continue to prolong those investments, of course, or otherwise going to be losing competitive advantage or is going to be creating a space for this demand to not be captured by the company. And the liquidity, of course, have been very stable since the beginning of pandemic and -- but the cash is available to run the ongoing operations and [indiscernible] generating is neutralizing the ongoing operations, but not still sufficient to cover the balance sheet. We require additional initiatives in order to solve that balance sheet drag right now. So we launched a capital restructure plan, having advisers that is going to be properly communicating and it's going to be really putting focus to address this in a much faster way and a fast priority, deploying what to understand is going to be a very fair solution to them, while our team is going to be continuing to focus in order to deliver the performance of the company. And we start to talk with the lessors that maintenance CapEx is also one of the issues and are exposed to the lessor. So we are also working on initiatives in order to address this CapEx. [indiscernible] mentioned about the partnership with [indiscernible]. That's one of the initiatives that can we cover 1 percentage, a portion of the CapEx by inducting those engines in order to start to be restored. We are under discussion with government, very close to being able to close kind of a CapEx financing that's going to enable further investments in services being done in Brazil that's going to stimulate also the market economy here in Brazil. And that's going to be the second important piece. And then we understand that by doing our homework here, the stakeholders also need to every single one is a next first phase, if we can address the lease reg, the balance sheet and also the CapEx requirements, that's going to be triggers or it's going to be [indiscernible] in order to start to touch also some of medium-term challenges related to the bonds going to be between 2025 and '26 and also enable to have initial liquidity initiatives. And also, it's important to remember that our control shareholders since the foundation has been very -- it's been supporting the company since the beginning. So that's going to be continuing. But all the stakeholders will be able to support simultaneously in order to not having just one piece of the stakeholder supporting our financing [indiscernible]. So that's my last part. Why this restructuring is so important? So first, we're going to be able to unlock that potential that is now under the drag of our profitability, and that's going to be enabled through cost dilution and through reducing tons of that service interest cost that is embedded in our P&L. Second, engine CapEx financing is something that we always assume to have some credit lines in order to expand our growth in the future. So that can enable us to start to reach to other markets, international markets that we have those expansion plans into a very important high-density markets in the region and also in the regional markets that you see that even with minus 10% capacity this year. We have been able to expand 9 destinations this year, mostly on regional routes. We're going to continue to -- or ensure this low-cost model continue to going forward. We're going to continue to dilute fixed cost, and that's going to be resumed more competitive operation. And finally, that's going to create benefits for all the holders of investors for the company given that we're going to be able to increase the pool of receivables of collateral of the company and [indiscernible] right now that is an important collateral for the company that's going to be utilized for the financings that is going to be ensure that optimization of the capital structure, the value or the added value creation is going to be continuing to increase. So that's the right time. We were stable or we have been delivering profitability and 2024 is really the year that we understand we need to resolve those given that demand has been very strong. And we have those aircraft as opportunity to deliver further competitive advantage compared to the market competitors. And then I will pass back to Celso to close the final remarks.

Thank you, Mario. And just to a small reminder here to make sure that we -- our -- our guests can start to ask questions through the platform. So we are a little bit late. So it's already open. So anyone that needs to shoot a question, please feel free to start and then we are going to organize ourselves for the Q&A. As a final remark, I think what we shared today, it's a comprehensive situation of the company, which is on the operational side and is delivering the best results ever on a company that has a good track record on the operational side. still carrying a lot of drag that Mario mentioned, I mean, still carrying more planes than we need. So the #1 priority is to recover [indiscernible] with the fleet efficiency. We don't know exactly how many planes we're going to be able to receive. You saw in the presentation that we are trying to compensate if we don't take [indiscernible] and we are going to discuss an extension of this energy and the ability to lift those engines, but we want to keep our presence. Cost reduction initiatives, I mean, we are going to continue, and we are going to be able to do it. I mean we -- most of the initiatives are already in place, the more it's going to come where we adjust the fleet and optimize the utilization. And again, the balance sheet, we saw that the fleet is playing an important role, not only because we have arrears and deferrals to be addressed on the fleet restructuring, but also because we have an engine backlog that -- I mean it's significant and should be addressed at the same time. We have been working on initiatives for new financing, but we are also working close to the lessors to better understand, I mean, the planes that will stay and the planes that we're going to return and how many engines we're going to take from them and from Boeing. Again, eliminate the drag and engine backlog impacts. So with that, I want to -- I would like to thank you very much to be here for everyone who's in the platform and make ourselves available for the Q&A session. I don't know how I handle the Q&A. We're going to start this now with questions.

[indiscernible], if anyone has questions, please we have a microphone, you can go there. So whatever you feel preferable.

I think we have 2 questions here so far.

Thanks. This is Gabriel Rezende from Itaú BBA. Two questions here on our side. If you could comment a little bit further comments on your restructuring plans. Regarding your negotiations with lessors, my point is that do you think that negotiations could be slightly tougher at this current environment in the industry versus what we had during the pandemic, just looking at regional traffic demand and also the lack of aircraft, the lack of supplies in the industry maybe create some more liquidity for the lessors to bring those aircraft to other players. So just trying to get your view on maybe how tougher the negotiations could be that this context in the industry compared to the last 3 years? And also another question regarding the restructuring. You mentioned that you expect all the stakeholders to join the restructuring plan, which sounds very good. But I would just like to understand whether this could involve the shareholders as well and potentially lead to some dilution for minority shareholders?

So Gabriel, thank you very much for your question. You're right that the aircraft -- I mean, part of the presentation was to explain that there's no aircraft in the world. It's available. And the ones we have the fleet on the ground is waiting to engines everywhere in the world and for parts. So this is a completely different environment from what we had in the pandemic. It's challenged. And we know that it's not going to be a surprise for the lessors since we have been already talking to them. The thing is that they will expect for like a further and comprehensive restructuring overall, including everyone to make sure that, okay, that's going to be a definitive solution. We will address, we'll deleverage the company. The company will be able to match cash flows with the debt obligation, and that's what they want, I mean to keep and to support their plans. So it's our responsibility now to show them and to structure a plan where one thing will be somehow a precondition to the other. And then we can trigger all this together and deploy the whole plan. I think the GOL, as Mario said at the beginning, we kind of think it's on our side, it's a good moment because we are showing consistence, we are showing results, we can show to all the stakeholders, but also to the lessors that we have plans for the airplanes. We are going to be using those planes. It's just making sure that we can do this adjustment right now, have the right lift with the engine to address the liabilities that we have created during this period. It is at the environment, but we also are going to show them a good case in terms of post restructuring company. I mean -- and then you mentioned of all the stakeholders. All the stakeholders are talking. You know that our shareholders, they have been participating during the history of the company and very recently with Abra, and they are also part of the overall restructuring program.

Yes. We -- when we talk about conceptual basis. And of course, everyone we're going to be part of that broad solution. Of course, lessors, we are much more well advanced and local banks, we did recently, we wanted to continue to have discussions with them. Most of the necessity of the company really in the short term is really to have reducing of the short-term pressure. Some -- most of what we have been discussed with lessors has been kind of long-term extensions. If there's new source of cash that was going to be coming. We're going to be discussed from which area it is going to be coming. And of course, we don't want to create something that one stakeholder is going to be thinking that it's going to be financing others. So there's going to be one stakeholder that we're now going to be doing -- nothing is going to be continuing to receive everything and then it's going to have all the type of stakeholders financing between them. So again, we cannot anticipate at this point of time, what's going to be those solutions. So we're going to be working, of course, with lessors right now in a more advanced way. But we can ensure they're going to be discussing with all the stakeholders that we have been presented here. And what I can say is that the controlled shareholder is committed since the beginning of the company. And of course, they are going to be also involved in those discussions as well.

I think there's another question there.