LATAM Airlines Group S.A. (LTM) Earnings Call Transcript & Summary

Good morning, everyone. It's a genuine pleasure to welcome you here today for LATAM Airlines Group's First Investor Day. Earlier this morning, we rang the opening bell on the New York Stock Exchange, celebrating our relisting and our return to the [indiscernible]. And today's Investor Day is an opportunity for us to focus on this next stage in our history. We're thrilled to see so many familiar faces here today as well as those that are joining us virtually. Thank you for being a part of this important moment. Today is about sharing our vision for LATAM Airlines Group and how we are poised to lead in the ever-evolving aviation landscape. We have an exciting agenda here today that highlights our commitment to sustained profitable growth and operational excellence. You'll find a QR code on the screen linking to our presentation materials that were uploaded this morning to our website as well. I encourage you to refer to them as we go through today's presentations. As a reminder, I have to go through and certain statements in this presentation and during the Q&A may relate to future events and expectations and as such, constitute forward-looking statements. Any matters discussed today that are not historical facts, particularly comments regarding the company's future plans, objectives and expected performance or guidance are forward-looking statements. These statements are based on a range of assumptions that LATAM believes are reasonable, but are subject to uncertainties and risks that are discussed in detail in our published 20-F, earnings release, financial statements and related CMF and SEC filings. The company's actual results may differ significantly from those projected or suggested and any forward-looking statements due to a variety of factors, which are discussed in detail in our SEC filings. So today, we have a great lineup of presentations ahead, as I mentioned. Our CEO, Roberto Alvo, will kick us off by discussing how we are leading LATAM Group towards sustainable and profitable growth. Following him, Paulo Miranda, our VP of Clients and Customer Experience, our Chief Customer and Experience Officer, will share our vision for elevating the travel experience and delivering a world-class product that generates customer loyalty. Hernan Pasman, our COO, will present our commitment to exceptional operational performance, an area where we strive for excellence every day. Finally, CFO, Ramiro Alfonsin, will discuss how our fleet and balance sheet advantages serve as key differentiators in the market. We also have opportunities for an interactive Q&A session after the presentations, and we welcome your insights and questions. [Operator Instructions] Finally, following our Q&A session, we will have a lunch in with management for those of you that are here in person, and we hope you will stay to attend it. I encourage you all to make the most of it. We'll have many of our senior executives here as well as the 4 speakers that we have here today. Finally, I'd like to take a moment to thank our extremely dedicated Investor Relations team, [ Ms. Kadian ], Joaquim Menna and Mathilde Maturana that are here with us today and everyone else that has been involved in organizing today's event. Your hard work has made this gathering possible and we truly appreciate it. Also, I thank you to our friends here at the Stock Exchange for hosting us. Now without further ado, let's dive into our first presentation. Please join me in welcoming Roberto Alvo.

Hello, and good morning to everyone. Hello. Is this working? Can you hear me okay? Great. Well, thanks again. Thanks for having the opportunity to speak in front of you and to give you a little bit of an insight of LATAM. So let me kick it right away. So what's LATAM? You know this pretty well, but very simple 3 aspects, largest airline group in Latin America, actually largest airline group in the Southern Hemisphere, over 340 aircrafts, 319 of those passengers with a very broad mix of revenues, almost 50% of our revenues are international. And we are the clear #1 leader of South America. We're also, at the same time, the largest cargo operator in the region. Today, we operate 22 dedicated fighter airplanes. And we have a network of over 160 destinations that allows us to cover not only within South America, but also throughout the world and complementing very well our passenger business with our daily use and the expertise of both having cargo and passenger together. So we're largest passenger, largest cargo airline and also we have the largest frequent flyer program in the world, actually today the seventh largest in terms of members. We have probably -- this is not a data that I can say for sure because there is no actual statistics, but probably have 50% of the ABC 1s of all of South America and databases today. And clearly, one program that has been excelling in terms of customer satisfaction and what we can deliver to our most loyal customers. So -- because passenger, cargo and frequent flyer in Latin America, clearly the leader in the region. Our network is very broad. We have 3 main hubs: Lima, Sao Paulo and Santiago, that allows us to cover pretty much all of South America. We connect also the U.S., Europe, Africa and South Pacific. This is the only one-stop shop carrier in South America. There is no airline in the world, group of airlines in the world that can claim that has a leadership like the one LATAM has today to connect people within South America and to the world. And we're very proud and happy to have just surpassed a 2-year mark on our very successful joint venture with Delta, which today allows us to serve almost 40% of the flows between South America and the U.S. that has grown at an extremely high rate. And for sure, it's making a change in the way our passengers and Delta's passengers can connect South America to the U.S. For me, this in one slide what LATAM represents to Latin America. 42% of the passengers that fly within South America pick LATAM. This is twice as big as the largest operator in North America, which is American 4x as big as the largest operator in Europe, which is Lufthansa. Again, There's no airline group in the world that can have or has very -- anything that looks like close to the leadership that we have been able to create in the region today. And this is a unique situation, one that I believe is unparalleled and will be unparalleled for a long time. Not only we have achieved this in the sense of our network, we have done this with extreme focus on cost. During the Chapter 11, during our -- how do you say restructuring, there you go, thank you, we put a ton of work in making sure that we could use the prices in the best on what you have on the left side, you've probably seen it many times is what we were able to do in decreasing our fleet payments with a similar fleet of 340 aircraft, 40% less payments. We've locked in this for many years, almost to the end of the decade. At the same time, we also secured orders from both Airbus and Boeing in the long term under those very special moments when nobody knew if this industry was going to come back again. So very comfortable about what we have achieved. And what you see on the right, I think it's most striking and most interesting, which is our cost. On the blue, you have the passenger costs, we take out the freighter cost out of the equation just to compare apples-to-apples. We're basically half of what full-service carriers today have as cost of fuel. I think that the important pause here is this is not labor related. Yes, of course, a little bit of it. This is just intense work in making sure that we can run a very lean operation, okay? We're using what we have learned over the years, LATAM has been very concentrated in lowering its cost over the years, and this is one of the key things that we believe is a cornerstone to our success, making sure that we can run a very, very efficient, very smooth and very dependable operations for our customers, making sure that we don't let this advantage that we started creating during Chapter 11 be gone from us in the future. So a very important topic in our minds every day. So what's LATAM today, if I can put this in a few figures, all $13 million of revenues in the last 12 months, 17% growth vis-a-vis the previous 12 months, $2.8 billion in net EBITDA accumulated last 12 months, 37% growth over the previous period, $1.5 billion in operating income, a very unlevered balance sheet today, running at 1.9x as of June. And if you saw today, our guidance, even lower for what we expect in the remainder of the year with very healthy margins. It's a company that's running under operational excellence. We are dependable. We have been year in and year out, one of the 5 most on-time performance airlines in the world for years now. We have demonstrated profitable growth. We're growing at mid-single digits -- mid-teens this year, and we're doing that. At the same time, we can expand our margins beyond that, running a very efficient operation at a very low cost. And needless to say, I think, being very, very clear and very focused in creating shareholder value. So this is LATAM today in a nutshell. But we're in a region that has a lot of growth potential. South America is a very extensive geography, long distances that are measured in the thousands of kilometers, very little road infrastructure, very little rail infrastructure in a market that is very unpenetrated. Today, on average, only 0.6 passengers per inhabitant in the region. This is more or less what you saw in developed markets in the late 70s, early 80s. 1/4 or 1/5 of the passengers per capita that you see today on developed economies. And as you can see there, you can see the different countries, a little bit of a split, but I think that Chile is a very interesting example because it shows that even in the region where we are, that it's still underpenetrated. It is not very difficult to see that you can double pretty much the number of passengers per inhabitant. Chile has been able to do it in the last 20 or 30 years. And in a region that everybody that does long-term projections expects to grow in traffic more than double what the traffic will grow in the developed world. So big geographies, difficult to move around. Air travel is essential, unpenetrated region of the world, high-growth prospects. That's the ambience where we live today at LATAM. And also an industry in this part of the world that was not helped by the governments. And that meant that a lot of companies had either to, like us, file for Chapter 11 or basically left the market. So it's also a reason today where we have players than what we used to have before the pandemic. In a moment, at the same time, we're all facing challenges with respect to supply chain, OEM production, durability of engines and so on. And LATAM, as you will see, Ramiro will show, has secured good, safe growth for taking advantage, again, of a region that is underdeveloped or underpenetrated, where you see today less players than before and many of them probably being challenged by the circumstances of the OEMs, engine manufacturers and the whole supply chain system as a whole. So when you take all this together, and you put together the numbers -- Oh my god. Come on. [indiscernible] All right. Focus. So what you see here in gray, it's the participation we have in 2019 and in blue in 2024 in June. I think this is awesome. I mean doesn't matter where you look, LATAM's position has improved, whether it's in the 5 domestic markets or in any of the international segments where we operate. But let me tell you one important thing about this here. This is the outcome. We don't measure ourselves by market share. That's not a target we follow. This is the outcome of consistent, dedicated and concentrated observation of which are the flows where we can win, okay? So what you're seeing here at the end of the day is the result of that. And today, that footprint, together what's on the lower right-hand side shows you the strength of the network on LATAM. These are 3 of the most -- of the 4 most important airports in South America, the other one is Bogota. And we have built a very strong leadership advantage on those very important hubs. In particular, I'd like to point out Guarulhos, Sao Paulo. This is the largest market in South America. Actually, it's the entrance door for international travel to Brazil, 70% of all international flows to Brazil go through this airport. In 2019, we were 1.2x as big or 1.3x as biggest goal. We have managed through these 4, 5 years and taking advantage of our relative position to increase that to 2.3x in a [indiscernible] airport, where basically [indiscernible] today permanent -- a permanent position. So this is very strong. Three of the most important markets or the 4 most important markets, LATAM has a presence and a product and a network that is unparalleled, that it's very hard to be competed with in 3 of the most important, again, cities in South America. And when you add to that our portfolio, one that is very diversified, as you see on the left, 40% of our revenues are international today, 30% is domestic Brazil. Of course, we also have cargo, which accounts for more or less 10% of our revenues. But that's one side of the story in my opinion. The other side of the story is what we have been able to build over 25 years, which is the flexibility of moving our assets within our network. Because the differentiation, the diversification we have on the left is good but taking advantage of that diversification, being able to take opportunities quickly is just as simple. Last year, one important player in Colombia, Viva, went out of business. We were able to move in 2 weeks, 1/4 of our capacity from Peru to Colombia, and that meant that we increased our capacity share in Colombia from 20% to 30%. And this is very unique. We have worked many, many, many years in making sure that we have the flexibility of moving our assets around. And also, at the same time, we created a very high variable cost base on the last part of our capacity, almost 100% of the last few percentage points of capacity run on a variable cost basis. That's very important because it allows us not only to take opportunities, but also to adjust quickly if we see an impact, for example, for a hike of fuel price and so on. We've done that. At the same time, we've worked on our product. Today, we have, and as you will see, Paulo will show up, put immense concentration and effort in making sure that our passengers every day fly better with us. We have a ton of customer preference, you will see the numbers in a minute. And we're providing choice. We are the only airline that can really provide choice. I can take you wherever you want. I can take you however you want. You can go from basic economy to premium business. I offer you how you decide to fly. Nobody can do that. And we're very focused on being extremely dependable. We understand that the time of our customers is key. We want them to choose how they want to spend the customer -- the time with us. And they have to be reliant on us being able to meet their needs and make sure that the travel is uneventful. And if something happens that we are there for them. It's hard. We transport 230,000 passengers and 150,000 bags per day. So it's not easy to do that, but this is a huge focus for us today. So this is LATAM. You see diversified, lean, fast, agile company, very much focused on our customers. And this is the result so far, okay? Increasing results over time, we're flying more or less the same in terms of capacity of 2019, more or less the same with almost $600 million more of EBITDAR with very ample liquidity today. We increased our revolving credit facility to $1.55 billion. Today, our liquidity is almost 27% of our revenues. And we have done that keeping our costs abate. Over this 5-year period, you have 20% inflation in U.S. dollars, 30% inflation in local currency. We have kept our cost at the same level than 5 years ago. So if I can summarize that, I'm very simply in my mind, I like to think about absolute strength, relative strength and footprint. What's absolute strength? What you saw in our numbers? Our cost, our liquidity, our low debt level, that provides us with opportunities to grow, to take advantage of whatever we can see as opportunity in the market. But I also think a lot about relative advantage. And what is that is that at the end of the day, yes, we had to restructure. We have hard times. But you know what, the airlines in the Northern Hemisphere were saved by their governments. And they were not allowed to do that, their cost increase, their debt increase. Some of the most important players that compete with us in South America decided not to restructure. That gives us the opportunity to be relatively better than them. And that means that I can take advantage of the hard decisions they have to make from time to time. You just saw what happened in Guarulhos a little bit. So I think a lot about LATAM as being hedged. We have the opportunity to grow. If the opportunity arises, we have the balance sheet. I also think that if there is a downturn or let's say there's a problem in the Middle East and fuel goes up, actually, that's an opportunity. Somebody will have to make a bigger and most -- a more difficult decision before I have to make. And that allows me to take advantage of that decision. That's a very unique place to be. You add that to the footprint, what I just showed you. And this is one of the few airline groups in the world, in my opinion, that has very good control over its own destiny. That's what we have built with LATAM since 2019 across the pandemic, our restructuring to today. When I think about the future and going forward, very simple, 3 things: purpose, customers and sustainability and technology. What does this mean? That's LATAM's most important asset. It's people. When you are in the middle of 2020 at home, no vaccines, not knowing how deadly the virus was. And we had people raising -- risking their lives, risking their health, making sure that the few passengers that were flying were taken to the place where they wanted to go. We repatriated 100,000 people that were stranded across the world in the first months of the pandemic. When you see the energy, the love, the purpose of those people, you just cannot understand how important that is. Today, my most important responsibility as CEO is making sure that these guys, when they wake up in the morning, they feel that it makes sense to come here, not only professionally, but most importantly, personally, that it makes sense for them. And if I can get that connection, execution happens, alignment happens, customer care happens. We need to have a group of happy, committed loving of his job and his company people. That's why I spent so much time doing this. I think it's my most important responsibility. I'm committed to them. And when you do that and you execute well, you start seeing the results. What you see here on the upper side, so the blue line is strategic NPS. So we measure this. We've done it for years, quarter after quarter, it's vis-a-vis our competitors. So it's an open question not only with respect to your last trip, that's operational NPS. This is vis-a-vis our competitors. You can see what we have been able to do in the last 5 years on the blue line. On the gray line, and I'm a colorblind. So if it's green, apologies, I hope it's great. That's the strategic NPS for our premium passengers. We've been able basically to improve it 40 points over the last 5 years. And what you see on the orange or yellow line is under that same survey what these passengers think of the most relevant competitors we have in region. Now if you want to take away a few messages from this presentation, here's one. Look at the bottom line. That's our cost. We have been able to improve NPS by almost 30 points, 40 points for our premium passengers, having the same cost. I wanted to take out the paradigm that you need to spend money to have your customers happy. Yes, it's important. The hardware is important, believe me the software is more important. It's the people that is more important. It's the intelligent decisions on what is it that you can do to improve the experience of your customer without necessarily spending money that I don't think at the end of the day is needed, okay? This for me, it's a break of paradigm. So when I showed you that cost gap vis-a-vis the traditional carriers, a significant portion of that is because we're able to do this at the same time without over-investing. So we take conscious -- we believe, good decisions, and we focus on execution, making sure at the end of the day that who serves you, who is in front of you, cares about you. That's much more important than the hardware, believe me. If you're a passenger and people recognize you and they care about you, and they know your history and if you messed up, they know, our people know and they can try to make it up. That's 10x more important than the hamburger or the sandwich or the New York stake you get on top of the [indiscernible], that doesn't mean that you don't have to take care of that. It's just that it's much more -- it's much -- I think, in my mind, it's much more efficient to do it without making sure that you [ reinvest. ] So one of the few takeaways I want you to take one is this slide here, which for me is one of the ways we're thinking forward, very, very clear. And when you see this blue line and the evolution and the gray line, well, these are some of the results. What you have on the left side of the slide is ABRACORP, this is the association of corporate travel agency in Brazil. They published these numbers publicly. And what you see here is our market share in that group of travel agents, which has increased in 5 years to 11 points. If you remember, the market shares from a few slides ago, the market share in domestic Brazil, we grew it in the same period by 5 points. So it basically means that we increased our market share in the corporate segment in Brazil twice as fast as our capacity share. And what you see in the middle, it's another, I think, interesting data point, which is the number of passengers to date that fly our premium cabins. So from a little below 2% to more than 6%. Yes, we started Premium Economy on all of our flights in between. So there's more capacity on our premium cabins today, but I think this is a testament that there is demand for premium travel in South America, for sure. And then -- so I talked about purpose. I talked a little bit about customer. Let me just touch upon technology for a second. These are a couple of numbers that are interesting. What you have on the left is conversion. So this is basically when you land in our web page or user app, what percentage of people end up buying at the end. See, I mean, we basically doubled that number between '19 and '24. This is digitalizing the way we operate on our business position. Also thinking about how to improve first contact with our customers, what you see in the middle. And it's unfortunate that there is no benchmark in this industry for this number. It would be great to see it. But this is a number of calls we receive per passenger, okay? So almost one of -- a little bit more than 1 out of 5 passengers. We couldn't solve their problem whatever they had firsthand, they had to reach out. Today, it's less than 1 in 6. Still a lot. If you ask me, I mean you just think a little bit about, say, all right, it's 150 people on 1 aircraft. You still have 20 or in this case, less than or [ 1/6 ] of 150, 10 that reach out, I think it's a lot. I think this number needs to be in single digits. But I think it's a good testament again of trying to really understand where is it that we have to put our focus. And what you see on the right, actually, well, that's our e-business platform today. Delta is the largest U.S. e-business platform. Last year, at least when I saw the public figures, it was #5, where we're actually bigger relative to our markets today. Largest e-retailer in Peru, second largest -- third largest in Chile, fourth largest Brazil. I saw a statistic the other day from a research company called Statista. They say that the e-business industry or the e-commerce industry in Latin America for 2024 will be $100 billion. If that number is right, we account for 6% of that. And that includes Mexico, we have very little presence, okay? Now this is important. But what's most important is what is not here. Today, I think a lot about technology, but not just saying adding software. The trick is how do you bring technology to the business, working hand by hand. I mean think about technological companies today. They have a completely different way of operating, of organizing themselves, of bringing technology within. Think about us, all corporations born in the 20th century, some before. We still see this functional org chart that probably you've all seen. And the question I ask myself is, what are these guys doing different? Why does it make sense? And how you bring technology in? I think that the biggest challenge we have and the one I think a lot about is how do I integrate technology in a different way. So it's good to see these numbers. The question is how you do it from within. And Hernán will show you a little bit of the experience we're seeing by digitalizing our maintenance organization. And by digitalizing, I do not mean just bringing software in, it's just putting again people working together. And you will see that the results are very, very encouraging. Frequent Flyer has been a key cornerstone of LATAM as well. This is how we've grown it. So basically, 60% more members between '19 and '24. But look at the 2 charts on the right are very telling. More than half of the segments today that are passengers fly are LATAM Pass members and 1 out of 5 are Elite members, okay, an important source of premium revenue. And again, with an unparalleled network that serves a Frequent Flyer problem that cannot be matched in Latin America today. Just about to finish. This is important. If you fast forward to 2050, and you ask yourself what is going to be or what was the biggest challenge for this industry in the first half of the century, I don't think it was a pandemic. I think it's going to be the decarbonization of this industry. It's hard. It's really, really hard. And you can take 2 positions. It's like just dock your head under the earth and wait or take it head on. And we believe that we have a responsibility as leaders in South America to leave this as well. So they're very concentrated in trying to make this done well. We're working on having public policies in South America that are good and relevant for South America and not that we take the model from Europe, which is mandates into a region that won't take it, that will do harm for the region. And I think we're making good progress, but also working in making sure that we can offset our emissions, making sure that we can be less harmful to environment, 97% of our plastics are away from our operation already today. We're working in bringing LATAM to zero waste to 2027. That means producing no trash, somehow recycling it. We're still far away from that target, but working intensively on that. And you know what, we at the end of the day, just as an organization, we are a social asset. And we need to develop our business and do good at the same time. So we also think a little bit, a lot actually about our position in the countries where we are, how do we make sure that we serve and help the societies where we operate today. I think about the citizens. You see customers before being customers, they are citizens. They choose to be customers. So LATAM needs to be making sense to them citizens first. Then it's easier to think about them becoming customers. So just to finish, in a nutshell, largest airline group in Latin America, largest Frequent Flyer. We have a fee plan, you will see that has -- that will allow us to grow in a market that grows. That's what we have today. Where are we focused? Focused on our customers. We're focused on our people, on our culture, making sure that our financial situation stays strong and becomes even stronger, very, very focused on customer and shareholder return. We understand that front end and center and making sure that the largest airline group in Latin America that has impact on so many people that connect South America. Nobody can do it that is needed by so many people that are far away from places like hospitals. We do it, and we do it right. So thank you, again, very much for your time. And I'll pass it on to Paulo now. Thank you very much.

Hello, everyone. Thank you. First of all, thank you so much for coming here to hear our story. Thanks, Roberto, for sharing a little bit of what we see every day, but we want to bring it out so that we can also share with you. And more than anything, I want to highlight a couple of things on the presentation and talk about the premium traveler in general, what we're doing for products and services. And I just want to recap 2 very quick data points on Latin America as a potential more than anything. If we look and we compare the countries that we serve that we have our home markets in South America are very comparable to the U.S. in terms of population size. Yet it's underdeveloped. If you look, and Roberto already talked about that, it's 0.6 trips per capita comparing to what you see in the U.S., where we're at 2.5. So that tells us that there is opportunity. The region has opportunity, and we're ready to capture it. When we talk about, again, the region, those are external data points that we have. The IATA study is projecting a growth for the region of about 2.8% CAGR comparing to U.S. and Europe all the way up to 2040. When we look at luxury goods in general, there is a projection of that increasing to $50 billion by 2032. When we look at another index for the high net worth individuals, we see that Brazil and Chile are going to outperform the world. So I bring that not because those are data sources that we look at. But because we're trying to show you and make it very clear that the region is growing, and it's growing very differently. There is potential in there for the premium segment. In the presentation that Roberto just finished, he talked about how the number of passengers traveling premium cabins for us went from 1.9% to 6.6% comparing 2019 to the first half of 2024. So our own data is showing that we see some of that on our day to day. And what does it mean? What do we do with that information? So in a market that's willing and ready to pay for premium products, we're leading. So if you look on the left side, that's a survey that we do, anonymous survey in South America with competition. And the customers that declare that they choose based on experience is 40%, up 5 points comparing to 2019. But more importantly, when we look at the yields that those passengers leave us, they're 10% higher than the average. So it's something that we are very set on making sure that we have the best product out there for those customers. On the right side is typically the description of the carrier that has all services, and we check all the boxes. We have a global network. We do have premium cabins on every single flight. Every LATAM flight has a premium cabin that you can select to fly in. We do have WiFi in our narrow bodies, and we have a world-class loyalty program. When we talk about our -- what we want to do, how we design our services. Our customer value proposition has 3 very simple concepts: care, choice, dependable. What's care? It's making sure that our people have the opportunity and have the tools to personalize, to humanize the relationship with our customers, is to make sure that we make our decisions based on data, and we know what's important to those segments. When we talk about choice, we want to make sure that people choose how they want to travel. We have, from the very basic economy product where you cannot take, for example, a luggage review, it's just a backpack, all the way up to premium business, where you have access to lounges and you have flatbed seats and you have access to one of the best experiences in the world. So it's all about customers having the opportunity to elect how they want to travel, and we are ready to meet that demand. And when we talk about dependable that is a key component of a customer's perception of an airline. And Hernan is going to talk a lot more about that and show you how we've been doing a really great job on that front, but we want to make sure that we keep meeting the expectation from customers for everything that we do. So we measure NPS in a couple of different ways. Roberto showed one that we call our strategic NPS, which is a comparison to other players in the market. This one is the post-flight survey. You land, you get an e-mail asking about the experience of flying LATAM. And by this one, we've been measuring it for a long time. If you look at the numbers from 2019 and compared to the first half in 2024, we have seen a remarkable improvement in how people perceive and recommend NPS is the Net Promoter Score, it's a recommendation scale. And more than anything -- and that grew 1.6x. When you look at the darker blue, those are premium travelers. And for that group, before we had a score that was slightly below average LATAM. And now we are at 57%. So we grew that more than the base customer. That is important. Those are the people that are traveling with us more than once. We have several frequencies, and we want to make sure that they recognize the effort and the service that they're getting. And we measure that for premium travelers flying on all cabins. This is not a business class cabin result. It's every single premium traveler flying LATAM no matter where in the airplane, they're inside that number. And that tells us, again, that we're able to show and to take to our customers the experience that they're recognizing as a much improved one versus what we had in our base in 2019. This is world-class performance. In the NPS methodology, anything above 50, it's called the quality zone. So we feel like we're there. We need to push it a little harder, but huge improvement. So we do investments and we keep pushing. Again, we have a segment that's very clear. We know that our customers have a preference for the premium experience, and they are electing by that. So we do have our business class on our wide-body aircraft that has a full flatbed seat. We are introducing a new one that now we're going to go into the suite types where we have a door as well on our 787-8. And we have what we call our Premium Economy product that is extremely flexible. I'll go into that a little bit more. But 2 very important points. Both business class in wide-body aircraft and the premium economy product, I [ aren't ] the best products in the region for that segment. So when you add to that, the markets that we serve and the reach that we have, it presents to the customer an option that's just undisputable. So here's our flexible Premium Economy. What is it in a very simple way on our A320 family aircraft? We set it up in a way that we can flex this number of seats upfront from 2 to 7 on an A321, for example, or 2 to 5 on an A320. Why is that important? Because not our markets are the same. We can have a flight that goes out in the morning with a 100% load factor in the Premium Economy cabin, and we can have the same airplane turnaround with 4 people in that market. It's kind of like the famous New York, L.A., Monday morning, and New York, L.A. maybe Wednesday [ at 2. ] It's very different to the profile for the customers traveling during those times. So this allows us to be very flexible with the offer, making sure that we tailor it to the demand that we see on specific markets and also allows us to the flexibility that Roberto mentioned, when we rotate the aircraft and we move them around different markets, they're also very different in profile. Brazil has a higher number. Chile has a higher number of premium travelers comparing to some leisure destinations in Colombia, for example. So the aircraft is ready for that, allows us to go up 3.5 in terms of the seats offered in the cabin. And when we did that, we also simplified, we call it the LOPA. The LOPA is the layout for the aircraft with the number of seats. So before this, we had 10 different configurations for the A320, for example, and we're down to one. Why is it good? It makes the operations much easier. Every time we have an aircraft change because of rotation, the seat numbers remain the same. I don't have to go and reallocate people inside the cabin. So it makes it much more efficient for our people. We also use some creativity. So first, on information in South America, there's a lot of remote operations still, meaning you do not have enough jet bridges to serve all the flights that an airport has. And that varies between different countries, some with more, some of less. In Congonhas Airport, which is a downtown Sao Paulo Airport, which is preferred by the premium traveler in the city, the rate of remote position is about 40%. So if you fly out of there, 4 out of 10, you're likely going to have to get on a bus to go to the airplane. So we implemented a partnership with Audi, where we have the electric e-tron cars. And if you're a top tier in our Frequent Fly program, when you get there and you're going to go to your flight, well, you're going to go very fancy in an Audi car all the way to the airplane that has improved the NPS for that segment specifically. When they see them, they have the choice to use the service. It's one of the examples of how we look for opportunities in the day-to-day of the business to make sure that we craft or create a difference where before, it was just a very similar experience for all. And then the other thing that's very difficult, if you look on the right side of the screen is how do you personalize at scale. When you have the 80 million or close to 80 million passengers per year flying and they're onboard your aircraft, how do you get to that level? So we've been working very hard developing a tool for our crews that before flight, that's the screenshot of their tool. They can see who's on board. They have basic information, name, document number, if there's a preference or not for some type of news or something like that. But we also have in there what we call take action. We have a little list that they're supposed to interact with customers. And if you had an issue on a prior flight, they know it. So when they talk to someone, it's personal. It's not just, hey, Joe, thanks for being here. It's like, hey, Joe, thanks for being here. I know that you're a Black Signature member. And by the way, sorry that on your last flight, you had a slight delay. That changes a lot. And by just using people's names, it improves the NPS by 10 points. It's remarkable what you can do with the mix of technology and giving tools to our people so they can chime on their day to day. We continue with that with our lounges. So those are the locations that we have a VIP lounge. We have Miami, Bogota, Lima, Santiago [indiscernible] Lima, we use a third party. In 2025, we're going to open our own. It's a key hub for LATAM. So we want to make sure that we have control of the experience in there and we offer to our customers the best. We have plans for a new one in Guarulhos as well. Our demand in there is pretty high. So we're making sure that we keep up with what we see. And we also have plans to renovate the Miami lounge. Those are highly valued for the premium traveler segment. It makes a very difference when you're flying internationally and you can have access to that. On the right side is a picture of our signature lounge in Santiago. It's voted the best lounge in South America. If you have traveled to the region or if you plan on traveling to region, I hope you have a chance to go see it and visit it. It's just a remarkable way. We have an over 80 points customer satisfaction visiting that lounge. Just want to touch on a couple of things from LATAM Pass. Roberto already mentioned it, it's the seventh largest loyalty program in the world for an airline #1 in Latin America, 48 million members, 1.5 million are what we call Elite tiers. We have 30% active rate for our members over the last 24 months. We have over 60-point satisfaction and about 10% of our daily passengers travel using or redeeming their miles for travel in the program. But more than anything, LATAM Pass allows us to create or to look for opportunities to monetize it with our customers. So beyond flight, we want to make sure it's an everyday opportunity. We want to make sure that people engage with it beyond just when they fly LATAM. So we have agreements and partnerships with banks in the region, top banks in each one of the countries that we operate. We have additionally over 100 different commercial opportunities so that you can accrue miles when you fill up your car with gas or you go to a grocery store or by electro domestic. I mean we want to make sure that we are present, where our customers are. And if they want to interact with the program in that sense, it's an opportunity for both of us. Why? Because we see that every time a customer goes from not part of the program to being part of the program, their rentability or profitability level goes up, goes up by 1.5. And when they move from there to premium, where we talk about our Elite tier, it goes up 4x. When they're really engaged with the program, they come back. Now it becomes a decision of I want to fly with you because -- and it's a whole more than just because you fly from A2B because they have a relationship, because they perceive value, and we see that in our data. So we keep pushing for that, and we want to make sure that we keep positioning the program for everyday use. So this is back to a page that Roberto showed, where customers are recommending us more than competition in South America. On the right side of the page, it's a measurement that we do for repeat customers. We look at everyone that has flown in a 6-month period more than 8x, okay? And what we find is, for all customers, they've gone up comparing 2019 to 2024. For premium travelers, which is the one that have flown more than 8x, it's 2x. So they're coming back and they're flying a lot more with us comparing to what we had before. And we associate that, of course, with the improvements that we've seen in services and consistency and dependability and so forth. Again, just one example of technology. Over here is something that we're doing with AWS using Gen AI on our customer care group. So now people would call and have a menu to pick from. Now they call and speak. They say whatever they want and the robot will understand what they're looking for. And then you will try to either solve it or will transfer it to someone. So what we've seen is we have over 30% retention. The response rate is becoming much better. When they transfer, they transfer it more accurately. And because of that, customer satisfaction is up. So here, we're hitting on everything that we need for the customer point of view. Also, it allows us to reduce our internal cost by up to 30%. So it's a huge win-win and the way that we look at things. We will continue to make investments in our products and services going forward. So we have, like I mentioned, the new business class that's coming with the door, the suite. By the way, that's going to be the first one we're doing in-house. So that also gives us the opportunity to learn from the process and do it for less money than we pay somebody else to do it for us. We are getting to 100% WiFi on our narrow bodies by the second -- the first half of 2025. I already mentioned the lounges in Guarulhos and Miami that we're going to keep working on that. The closest one upcoming is Lima, and we also have what we call a premium check-in for our premium travelers in Sao Paulo, Santiago and Lima. And we'll keep working with digital tools to keep improving and find opportunities to do much better for our customers. So the last slide. I talked about a lot of our data, what we see. Here are external awards that we've received that they just give us a little check, say, hey, what we're doing internally, what we see internally is also being seen by external parties. And the way I like to look at that is if you look at the first one, the world-class operations in there, and Hernán will talk more about it, we are operating really well, both on time in terms of luggage or baggage. We have awards for world-class best airline in South America, 5 stars global airline. And if you look at the little Xs at the end of the phrases, it's how many times we've won it in the last 5 years. So the first best airline in South America, we've gotten it 3x; 5 Stars global, twice; best economy class, 3x; best business class, 4x. I'm not going to read all of them. It means that people and customers and external organizations are also recognizing the transformation that we've done. We have -- we're very proud to have removed just about all single-use plastics from our cabins. The ones that remain are very hard to remove. It's like garbage bags where it's -- the alternative is not that simple. And we have won an award as well for world-class loyalty program just a few weeks ago. So thank you so much for hearing our story. I'll pass it on to Hernán.

Hello, everyone. Thanks for being here today. I'm going to show something afterwards. So I'm going to be showing you how we execute sort of on the foundations that gets to the results that Paulo were showing you a little bit. So I'm going to be talking about the operational execution. When they ask me what do I do is I want to be the most punctual airline in the world at the most cost-effective way, having safety as our core and more important value. So these are the 3 pillars that we have operationally within LATAM. Before we start talking about the execution, just to give you a size, is we've operate -- you can get -- we operate 1,600 flights a day. Every 54 seconds, there is a plane taking off -- a LATAM plane taking off around the world, anywhere around the world. In those terms, when we talk about OTP, this is arrival 14. So this is the standard of the industry, how you measure the industry in which you're arrive within 14 minutes of what you promise. So if you arrived 13 minutes late, it's an on time for the industry. It's an on-time arrival, okay? And we've been performing -- consistently delivering a good performance. And we were from 2019 on, we have been #1 of the world in '19, '20, '21, the second one of the World '22, the third one of the World '23. And this consistent results, it was not because we were thinking about arrival 14, what we did was have an obsession of departure 0. So we said at some point, we started sort of a transformation of our results operationally. And we said, let's focus on departure 0. So we took it up a notch, and we said one minute late is a late flight. So at the time we started talking about excellence in execution, right, and talking by the minute, we're talking about over here that it's a zero tolerance minute for departure 0. And at the time, we set up targets that we thought it was impossible of 60% that we've been achieving those. And obviously, when you have a very good departure 0, you have a better arrival 14, right? We took it in 3 pillars. This transformation, the whole transformation, it was based on 3 different pillars. One of them was setting up ambitious goals, as I told you. It was departure 0 of 60%, we say every minute counts. When we talk about that every minute counts, it that a delay of 1 minute is already we were not accomplishing the promise that we had for our clients. And then we started talking about execution, and we started about talking to the 35,000 people that work operationally and tie them with the impact that it has in the customer. So how OTP was reflected or a good OTP was reflected on the MPS, so we actually gave them purpose of what they did every day. And when you give purpose to your people, it's amazing what you can achieve. So purpose, it was the first thing. And then we said the leaders must be close to the operation. Over here, we've eliminated layers of managers, middle managers and high-level managers as well. So we were getting closer and closer to the operation. We set up, I would say, meetings for or reviews OTP -- governance for OTP, which we review twice a day the operation and how we're doing in each of them. On those meetings, where last -- those meetings was all the high-level managers in those meetings, including myself. So that's -- it's close to the operation. Middle managers when they see the high-level managers that are all the time in these meetings twice a day, obviously, they start understanding that those meetings are important. So you start actually modeling behaviors over there. And when you start modeling behaviors, you start building culture, right? The third one is what I call building a machine of continuous improvement. Building a machine of continuous improvement is not -- it was not sort of a [indiscernible] chart that we were using or setting up ourselves or adjusting processes over the next 3 months, 6 months, this one was problem solving as we go. In every of these meetings that we had, at the beginning, these meetings were like maybe 1.5 hours, last said, 1.5 hours, today, it's 15, 20 minutes, we're done. That's it. We were solving small things in these meetings, and I'll give you an example. It's -- one day, we had to cancel a flight. I don't know if you know, but if you fly over the Amazon, in the plane, you have a jungle survival kit. So you're flying with a jungle survival kit, if you have an accident, right? And you land on the jungle. You have a box where you have water, matches, sugar, flours. So you have that type of stuff. And we had to cancel a flight because the sugar was overdue or how do you call it, it's not -- it was expired. So sugar was expired. So on those meetings, we're like, it must be some sugar that does not expire. When do we explore this, right? And obviously, it was sugar that didn't expire. So no more canceled flights for the jungle kit expiring sugar that nobody is going to use anyways. So I'm not saying -- when I tell you these stories, it's not that we didn't do anything extraordinary about this. So it's ambitious goals, leaders close to the operation, building a machine of continuous improvement is everyone can do that, right? Everyone can have good ideas. The interesting thing here is that we built a culture of execution that is truly hard to replicate. So I think that, that became, in my mind, a strong competitive advantage against our competitors. Close to the operations, I mean, the best example is leader, close to the operation is myself becoming a pilot, for example, at the age of 50. So I've been flying with LATAM for the last 5 months. That is close to the operation. When we talk about cost, I was talking about cost effectiveness. When we talk about costs, we've been delivering cost savings forever. I've been 20 years in this company. All the years we've been delivering an average of $130 million. So you say, well, when is this going to be over, right? So it's the cost that you can cut much more efficiency that you can do. And that is when we start looking forward. And looking forward, the enablers that we have. One -- the first one is the flexible asset management. Roberto talked a little bit about this. And that was incorporating technology. The first one, the flexible asset management is the opportunity or the ability to move assets around among the countries where we operate. So we operate -- we have 10 different AOCs. In the U.S. or American carriers have one AOC. We have 10 different AOCs. So 10 different regulators, 10 different union agreements, 10 different anything that you can have. But we manage it to have this flexibility to move around these assets across all the regions or countries that where we operate. The second one is that we have 2 MRO facilities. The one that we have in Sao Paulo is not only the largest, but it's really state-of-the-art facility. I've been in many MRO facilities across the world, and the one that we have in Sao Paulo is really amazing for the capabilities that we have. So let me show you a really short video of the facilities, and you can have a grasp of what we have over there. [Presentation]

I'll tell you, this is one of the best hidden gems in Latin America and it's not known because we do not do third-party work so far. What we have over here is we have the ability -- we've been building capabilities over here in terms of -- right now, we can actually have 80% of all the components on the A320 fleet. We can actually -- how do you call it, retrofit or work the components or even manufacture those components. So in this case, we were in-sourcing a lot of the work that we have outside, and this is because of what we built all these capabilities at the MRO. We're in-sourcing all the retrofits that they were talking about, we're in-sourcing all the Wi-Fi installation and so on and so forth. So it's really, really top-notch facilities that we have over there. Let me give you -- we are -- the drone that you saw, for example, is part of the innovation that we have that we've been using drones to inspect our aircraft for the last 3 years. And that what it is taking. You can expect an aircraft in 70% less time than a human can do it with 50% more accuracy and being much more safe because you don't have the people working at heights by inspecting the seating, if you want, of the aircraft. The last one that we did that we launched, I think it was a month ago, right, that we announced it. We partnered with Lufthansa Technik. And we implemented what you have the Aeroshark project on your right-hand side, that is reducing 1% of fuel consumption. It's for -- it's about $350,000 per aircraft. And this is mimicking sort of the skin of a shark actually, that what you have is when you fly, you have less drag on it, and it's saving that type of fuel. We've been doing this fuel saving things forever as well. It's been for the last 15 years, we implemented lean fuel. And we saved -- all in all, we saved about 8% of the consumption that we have taking out the fleet, so taking out all the fleet -- all the new fleet in corporation, it was a net of 8% of savings that we did in fuel. So what we're doing right now going forward as well? We are -- Roberto talked about this a little bit, and it's incorporating technology, but it's not incorporating technology. It's using the technology as an enabler to be more efficient. So what you have -- so what we're doing is we're digitalizing maintenance. We're actually changing the way maintenance is done around the world. Nobody is doing this. I mean they have different products, some different airlines have different products, but nobody has seen sort of this holistic approach and which we're working with agile teams where we put an aeronautical engineers working with UX signers, working with data sciences and we tell them you have this amount of money, go and solve this problem. Are they're doing it? These are teams of about 10 people, and they're actually doing it. On the left-hand side, you have aircraft system monitoring. This is what I -- is sort of my vision of having no AOGs. No AOGs is no aircraft on ground. So there would be no disruption for passengers, no last minute disruption. It could be because of weather, but I'm saying not because of maintenance. We're far away from getting there. With the things we're doing is we are capturing maybe 20% of our total components of the aircraft. But at some point, we're going to get to the 100%. So this is sort of a predictor. What you have in the middle, the strategic planning one, digitizing all the maintenance work that we do, all the heavy maintenance that we do, it's an optimizer. And what you have on the right-hand side, the supply chain is a forecaster. So depending on the question you want to solve or the problem you want to solve, we're using or we're enabling this technology to help ourselves to be much more efficient. The results of this and the way we're working, we have in the regional business case that Ramiro financed at some point, it was a very tough fight with them to get this funded. But we did it with the promise of on a regional business case of $78 million. We started 1.5 years ago. We've already fined $180 million, already identified that is going to come in the next 3 years. And this is on a spend base of about $1.5 billion. So imagine the opportunities going forward. We want to apply the same methodology to the $5 million more that I have under my responsibility. Finally, safety, our core and most important value. We've been improving our what we call the in-flight safety risk and the maintenance safety risk in the last 5 years, we did by about 75%. This is a benchmark of the industry. These are averages. But if you compare with the average numbers, we are far below the average of the industry. And this type of safety management that we're doing, it was based on what happened in the past, meaning that to apply safety or to learn or to adjust procedures is you need to have an event, you investigate that event, then you learn from that event and then you adjust your processes, right, not to come to the same conclusion, if you want or to the same outcome. So you start adjusting processes based on what you learn, what happened. What we're doing with technology as well and the capability that all the machines have for data analytics today, we're going from what it used to be sort of a reactive safety management to a proactive safety management. We're getting data from the planes. We're getting data from our extraction process. We're getting data from the weather forecast. We're getting all the data from the crew reports. And then we start finding patterns. The machine is finding patterns to predict risk that they are -- that they're most close. So imagine that we have an SOP. SOP has a standard operating procedures in terms of how we made the approaches to an airport, right? And we do it the same way. We fly the same way in every country that we fly. But with these tools, what we're actually doing is adjusting some operating procedures for different airports in terms of how the weather is affecting it, how the infrastructure is affecting it and so on and so forth. So we're defining, not even waiting until we have an event, we're anticipating those and we're defining operating procedures for specific risks that we might have in order to mitigate those risks before something happen. So in summary, operationally, what we are, it is -- we will be -- we will keep on being the most punctual of the world with the most efficient cost with safety as our core and most important value. Thank you.

Thank you, Hernan, our Chief Operating Officer, Pilot and now speaker at the New York Stock Exchange. Impressive. So thank you, everyone, for attending and joining us today in our Investor Day, both of you that are here in person and the ones that are connected through the video conference. Much appreciated. And I realize it has been a long morning with a lot of information. So I'll try to keep it interesting for you. I'm going to be sharing with you how we're seeing the rest of the 2024. So I'm going to share with you some figures for year-end for LATAM Airlines. I'm also going to be sharing with you how we see our fleet plan, how we're seeing our growth potential for the coming years. And I'm going to share with you some targets for 2025 as we're seeing them today. So let me start by putting a little bit of context of what everything that we have been discussing today. And Roberto shared with us some accomplishments of the past years. Just 4 years ago, we were operating 5% of our capacity. We had the borders of South America closed that made international travel impossible. And we have them closed for more than 12 months in each of the countries. And we had no government support. And less than 2 years ago, we exited Chapter 11. And today, LATAM is operating more capacity than where we operated pre-pandemic, we're transporting 7% more passengers, we're covering more destinations. And in addition to that, we're really performing financially. We are at record levels of $2.8 billion EBITDAR on the last 12 months, both improving our margins and having a leaner cost structure as we have mentioned and Roberto mentioned earlier. I'm going to double-click a little bit on that and how we're seeing that for the future. And the company is generating cash consistently. Quarter after quarter, you have been monitoring our numbers, and we have been deleveraging the company. Today, we're at 1.9x. We have guided this morning to further net leverage to deleveraging, and we have $3.4 billion of liquidity at this point. And this financial structure allows us to capture opportunities as we see them. And that's what we have been doing, and that's why you have seen our market shares improving in the different regions that we operate. In addition to the operational performance and the financial performance, we have now been released in the New York Stock Exchange. We have increased -- more than doubled our sell-side coverage of the past 12 months. And today, our trading liquidity is higher than what it was pre-pandemic. So the share price, both on the ADR and our volumes, both on the ADR and on the Santiago Stock Exchange are higher than before. And today, LATAM is the second most traded stock in the Santiago Stock Exchange. Just a few months ago, when we got upgraded by our rating agencies, and we refinanced 2/3 of our exit financing debt at half the cost of what it was financed previously. So a very important evolution for us. When we look at our operational performance, we look at our financial performance and we look at these corporate events, if you want. We've seen that both on an absolute basis and on a relative position vis-a-vis our competitors were way ahead. Before sharing with you our growth plans, let's take a quick look to our fleet. LATAM currently operates 340 aircraft, 260, 3 of them are narrow-bodies, and we operate almost 80 widebodies currently. Our fleet is modern when you compare it to our U.S. peers: Delta, American, United. We have 11.5 years of average fleet age in our current fleet. And one-third of the fleet that we operate is fully unencumbered. The value of that fleet I often get ask the question of what's the value of your unencumbered assets? On the fleet side only, it's a little north of $1.2 billion of fully unencumbered assets for LATAM Airlines. When we think about growth, we like to -- and you're familiar with the industry, you have been following the industry. You all have been hearing about supply chain issues. You're hearing about OEMs. You're hearing about engine manufacturers not being able to deliver. And that is something that we have -- we are suffering currently in the industry. We have seen OEMs cutting twice this year in these past 10 months production rates, we're seeing turnaround times of every engine manufacturer extending. And if I were to purchase aircraft today and I didn't have my -- our order book, I'll probably receive aircraft after 5 years from now. It's very difficult to find delivery slots before that, and we're seeing that the stores are running out of capacity in space also to allocate leases, and we're seeing that consequence in the pricing. But that's not the situation of LATAM. At LATAM, we have secured a very important order book, 120 aircraft that carries us through probably 2030 or maybe a little beyond depending on how we see demand evolving. And 80% of the order book comes from direct contracts with OEMs, contracts that have been renegotiated also during the Chapter 11. So when aircraft were escalating by very high inflation rates, in our case, those were frozen and we renegotiated the terms of that -- of those future deliveries. All the deliveries that you're seeing that we are receiving in the next years are state-of-the-art new generation aircraft, either NEOs on the narrow-body side or 787-9s or 10s. We have that possibility in the -- on the Boeing wide-body family. We are going to receive 3 additional aircraft for the remaining of 2024. So the lift for 2024 is completely guaranteed. And the numbers that you see here are the latest updates from the OEMs. So those are the levers, as I would say, for the first half of -- or 9 months in 2025 are confirmed and have affected dates, and we have a lot of line of sight of those deliveries. We're expecting 22 aircraft in 2025, 20 of which are narrow-body aircraft and 2 that are wide-body aircraft. With that, we believe that with the current demand environment that we're seeing, we're going to have the lift that we were forecasting beginning of the year. We are also upgauging our fleet. The majority of the aircrafts that we're going to be receiving on the narrow-body front are A321 neo. A321 neo has 50 more seats than the 319, has 27% less fuel consumption. So it's a much more efficient fleet than what we used to operate. In 2025, we are expecting to operate 354 aircraft on average. And in 2026, we are expecting to receive 15 new aircraft, 13 of which are narrow-bodies into to wide-bodies carrying us to an average fleet of 364 aircrafts. In terms of cost, and Roberto touch a little bit on this, but since it is so important to us, as the ones have met me before, we always mentioned that at LATAM, we have 2 basic pillars from the financial side. One is cost and the other is capital structure. And cost is very dear to our heart. And you just heard our CEO saying how extremely important it was to the company. The cost of fleet is -- the fleet is the main asset where we operate. So the cost of fleet is really, really important to us. On the last 12 months, our total cash cost of fleet was $800 million. We told you beginning of the year that we were expecting this year to round up around $900 million. And this is the total cash out for the whole fleet for the 340 aircraft. The market value of that cash out, if it were not or if we didn't have been renegotiated to Chapter 11 would be $1.4 billion. So we have a 40% more competitive fleet than our competitors. And that's because of the unique timing of our negotiations during the Chapter 11 and the big concessions that we obtained from our financial counterparts as a very specific moment in time when it was very difficult to repossess an aircraft and reallocate that aircraft particularly. On the right-hand side of the slide, you see our cash cost and how we see that evolving. We often get the question of, okay, you managed to renegotiate those prices in Chapter 11. How locked in are those prices? So our lessors, all the contracts that were negotiated on the fleet and on the engine side do not have termination clauses from the resource. So 90% of those prices are locked in until 2029. So for the foreseeable future, towards the end of the decade, we have those prices locked in. Having said that, our fleet cash out will increase during the next years as we are receiving more aircraft. We're growing our fleet, as you've seen on the previous slide, and we're receiving state-of-the-art aircraft that are a little bit more expensive. So we are forecasting for 2025 to be a little south of $1 billion in total cash out of fleet for the 354 aircraft. And we're expecting to be south of $1.1 billion in 364 aircraft in 2026. So probably south of those numbers is where we feel very comfortable then. And you see how stable our total cash cost of fleet is going to be in the next year, a very important competitive advantage vis-a-vis our competitors. Today, we're announcing a new guidance. We issued guidance last December for 2024. We updated and improved that guidance in May 2024. And now in October, just a few months afterwards, we're improving our guidance a little bit further. And we are extremely confident that we're going to be delivering these numbers end of year. We are going to be growing between 15% and 16% in terms of ASKs despite the Brazil floodings that you are all aware and the Port Alegre situation, we're going to be growing within the range that we told the market. Our costs are going to be below what we anticipated of $0.043, $0.045, we're going to be a little below $0.042 to $0.043, that's basically a CASM of $0.067 or below. So very attractive cost structure. And Roberto mentioned that he said 2022, we had a passenger cash ex fuel of $0.042. That was 2022. In 2023, we had $0.042. And now I'm telling you in 2024, we're going to have $0.042. So that's how much effort the company is doing in keeping our cost structure at line. And we're all very proud on the next slide. We're going to be a $3 billion company in 2024. EBITDAR of $3 billion, that's 40% more than what we had pre-pandemic and that was the norm for us. That was a very similar EBITDAR in 2018, '17, '19. Today, the company is growing. It's growing profitably, and we're generating 40% more EBITDAR than one we used to. So we're targeting $3 billion to $3.15 billion for the EBITDAR this year. And on the leverage side, I mentioned cost and capital structure as the 2 pillars for our company. We're going to be on the southern range, probably below 1.7% this year towards the end of the year. So updating our guidance once again, and third guidance we've given in 2024. I'm very proud of the numbers you've seen. So growth, contained cost structure, improving margins and improving EBITDAR and lowering the leverage as the company is generating very consistently cash flow. This is the merit of everything that you have seen before, right? It's the merit of the strategies, the merit of the networks, it's the merit of the value proposition that we give and we provide our premium customers. It's the merit of all the employees at work day after day in LATAM. Let's look a little bit to the future. So this was 2024, we're almost ending 2024. And so how are we seeing 2025 and 2026? We have suffered and we benefited from that big incremental demand and the big recovery from the pandemic levels. And we grew a lot in '23, and we have grown a lot in 2024. What we're forecasting for 2025 is to be growing on the high single digits. We think with our international presence, the aircraft that we are receiving, we feel confident that the demand is there to target that growth for LATAM Airlines. And when we think a little bit more down the line, we're thinking more mid- to high single digits for 2026. And we are convinced that with our order book, we can deliver those numbers and that our value proposition and our cost structure will allow us to go that vis-a-vis our competitors in the region. In order book today, having an order book, and having legacy contracts on the engine side is a competitive advantage. Today we have competitors that are struggling with the lift, they're struggling financially, but they're also struggling with the lift. So we feel extremely confident about these growth numbers that we're targeting for 2025 and 2026. In terms of costs, 50% of our business is the international business. So our competitors there, I showed you before, we operate 56 wide-bodies in South America today. Our next competitor in the region maybe operates 12 or 13 wide-bodies. So our competition is mainly U.S. carriers and European carriers. And you see here how our cost structure compares with our competitors on 50% of our business. And we have a value proposition that is better or at par of our competitors, and we're doing it with 40% less cost. And this is the merit because LATAM was always a competitive company, but this is also a cost realignment that we benefited from on the Chapter 11 and that we are really showing you that year after year, we're committed to maintaining that cost structure at line and benefiting from that. So we have seen the gap widening vis-a-vis our competitors. Back in prepandemic, we were better. And the cost of our competitors were 56% higher, today 69% higher as we maintain the cost and the passenger cash cut pay. The red segment on the bar is the cargo operations cost. It's not that we're being less efficient in cargo, simply that our cargo business is growing. And since it's growing, when you divide it by ASKs, you're basically dividing a larger number of business by a similar number of ASK, so you have an increase there. But it's simply that the business is growing. And today, where -- our last 12 months revenues on the cargo side is $1.4 billion. So how are we seeing this going forward? We're extremely committed to cost. I just mentioned $0.042 to $0.043 towards the end of this year for the total year. We're thinking in 2025 to keep it that bay between $0.042 to $0.044. We feel extremely confident on the culture, Hernan touched on that. I think all the President speakers touch a little bit of health in-depth. We have that sentiment on costs through the company. We're getting very good traction on direct sales penetration. We're getting very good traction on the digital transformation of the companies. The business simplification, we're insourcing what we think should be insourced. And Hernan mentioned it, 80% of the components of the narrow-body family made in-house with retrofit in our aircraft in-house. That's a huge saving for us vis-a-vis the way we used to do it a few years ago. And on the fleet side, we keep improving with certain projects and the retrofits that we have been doing. The upgauging of the fleet, bringing the A321 neo, so we consider an excellent aircraft, very cost competitive. We feel very happy with other aircraft and what we're seeing there. So the upgauging is also helping us maintain this cost structure going down the line. In terms of EBITDAR, I just mentioned $3 billion for 2024. That would be a 23% margin -- EBITDAR margin for us, improving from 19% pre-pandemic. So again, the company is growing and growing profitably as we keep the cost structure suspend, we're improving on the premium passenger side. We're seeing our passenger preference improving, Paulo touched on that and our value proposition being very much perceived as differential vis-a-vis the other players in the region and the cost containment merits that I just touched upon. For 2025, we're not providing specific numbers, I'm going to share some color for 2025. We will be releasing our guidance towards the end of the year as we normally do. But the current consensus is $3.4 billion. The other angle for us that is very close to our heart is capital structure. Today, we have the lowest net leverage of a wide-body operator in the Americas, better than United, better than Delta, certainly better than American. So 1.9x is our current leverage as of second quarter, and we just guided 1.6x to 1.7x towards the end of the year. Again, it's not that we target a specific metrics, very similar to what Roberto explain in terms of market shares is that we are convinced that this is a competitive advantage in this industry. We see it every day. We're seeing better terms from the source, from financial counterparts, from ground handler operations, from airports. We get better terms because we are a better credit. And in a moment where the industry is undergoing certain scarcity of engines or components or parts, you get allocated as a better credit that last engine or that last APU or the last component because you are a better credit than your competitor next door. So we are convinced that this is important, and this is a competitive advantage, particularly in our region. Liquidity levels are extremely strong, $3.4 billion. Very important for me to highlight that recently we renegotiated our revolving credit facility that is fully undrawn. That's $1.5 billion completely available to the company. That was increased to $1.5 billion and also extended until 2029. So we have that facility fully available for the company until 2029. Today, our liquidity levels represent 27% of the last 12 months revenues. We recently did a refinancing and we're very focused on shareholder value. And we're very focused on improving our net income. We're very focused on improving further our cash flow. That has been consistent throughout the quarters. And we're happy with the amount of debt that the company has. That leverage of 1.7x seems reasonable to us in terms of the size of our company but we're not happy with the cost of our debt. Our exit financing debt was expensive when we exited 2 years ago. And we refinanced 2/3 of that debt last month and we reduced the cost of that debt by almost half. So today, our interest expense for the exit financing debt has been reduced $120 million. So every morning when I wake up, I have $300 million -- $300,000 more in my pocket. I feel very comfortable with that. We think that's a big progress for the company. But we have a little further to -- I mentioned we refinanced 2/3. We still have 1/3 that is callable in October 2025, and the pro forma of those savings would be additional $38 million. So today, when you look at our company in terms of earnings per share, you see a very significant improvement in our net income for the next 12 months, and you're going to see a further step change after October of 2025. Very proud that the market is recognizing all the efforts, and we're seeing that in our interest rates now in the financing that we did of $1.4 billion. Our cost of debt now is 8% with a pro forma considering that we're going to be refinancing the last 1/3 at similar rates, and now it's going to be 7%. So a very important improvement in these last 2 years. And going down the line, we have no maturities. Basically, we only have $270 million that mature in 2027. And it doesn't mean that the finance team has little to do. They have tons of things to do, but basically no maturities to face, and this gives us a lot of flexibility when we're thinking about positioning and growing in certain airports and capturing sustainable growth because once you capture that position, that's something that sticks for the next future. It's very important to be in this position, strong capital structure, very low cost structure. And this maturity is down the line. That gives us tons of flexibility. And when we look a little bit further down the line, I just mentioned the $700 million we can call them in October '25, and we can call it in October '26 the $1.4 billion, maybe targeting an improvement in terms of cost, but certainly an improvement in terms of phasing a little bit better than the $1.4 billion but certainly a very comfortable situation from a financial perspective for LATAM Airlines. We have never been in such a strong position from the financial side. And part of this is due because the company is generating very sustainable and consistent cash flow. When you look at our levered cash flow for last year, it was a little shy of $700 million. On the last 12 months we're a little north of $800 million. And for 2025, we are targeting a levered free cash flow of above $1 billion. Part of this is benefited by the savings I just showed you on the interest base. And the other part is the growth that we are forecasting and how we're seeing the full year growth for the next year. We're basing this improvement of levered free cash flow on improving margins, very much focusing premium passengers, as Paulo was mentioning, and having a contained cost base. We are still seeing pools for profitable growth. Again, we have a very strong cost structure. We are able to cover destinations with good return on capital that our competitors are struggling to do and we're seeing those openings. And we are going to continue to lower the interest expense of the company as we can still call part of our -- the last portion of our exit financing debt. And once the company generates this amount of cash, of course, you have to think a little more about capital allocation. And we have been very rigorous on this and we wanted to share our thoughts. The main focus today is enhancing shareholder value, and we're exploring how to increase shareholder returns based on performance. We are paying the minimum dividend in Chile. In Chile, we are required to pay at least 30% of dividends of our net income legally, and we have paid the minimum so far. But when we think about shareholder value, we also think about profitable growth, where we see pools of profitable growth, and we are seeing that. We have the possibility, as I was mentioning to capture that growth, both in terms of growth on the airline business, both growth on the loyalty business, where we see opportunities, but always committed to keep a fleet age of under 12 years. That's something that we would like to do and to have as a target. And together with profitable growth, we think, again, it's very important, and it is a competitive advantage, to keep a very strong balance sheet. And I'm sharing with you how the Board is thinking a little bit about this. We are thinking that our metrics are very much in line of reaching a BB+ credit rating. We feel confident about it. We are going to be certainly below 2x of net leverage and we think 1.7x is a reasonable target to have in mind and certainly liquidity above 20%. So that's the general framework in terms of capital allocation. But again, very much focused -- now that we have restructured our balance sheet and we have this capital structure that the end is better than our U.S. peers. We think focusing on shareholder value is the next important focus for the company. So how are we seeing 2025? We think that the company is going to be growing high single digits, as I mentioned before. We're thinking that the unit cost is going to be around $0.042 to $0.044. In terms of EBITDAR, we're thinking that the EBITDAR should grow more than what we grow in terms of ASKs. We're going to grow EBITDAR more than where we're going to be growing ASKs. And we're convinced of that because of everything that we have been discussing and because we see profitable growth pools in the different markets that we operate still for LATAM. And the adjusted net leverage provided that we don't change our dividend policy or that we don't find other mechanisms for shareholder value is going to be certainly below 1.7x next year. So let me wrap up with some few takeaways before we turn it to the Q&A. LATAM today is the tenth largest airline group in the world, certainly the first and most important leading airline in South America. We believe that the region has a lot of opportunities, both Roberto and Paulo touched on this. Trips per capita are low. Our governments have difficulty to fund railways and highways in the region. The extensions are very far away. So the way that the governments are connecting the different countries to the key cities is by establishing airline connectivity and new airports. We believe our value proposition is unique in the region. The experience we offer our customers, the importance and how the customers are perceiving that differentiating factor vis-a-vis other value propositions in the region is very key, and we're seeing it month after month. So we believe we are uniquely set with the unbundling of our rates with the cabin segmentation that Paulo offered, uniquely set to capture premium demand in the region and we are the only full service carrier in the region today. We are the only ones offering premium economy or business class in all of our flights. None of the other competitors that are domestic today players do not offer that. We are very focused on operational efficiency. We have a best-in-class MRO, as Hernan explained. We're investing a lot in technology and we think that, that optimization is going to be driving savings for the next coming years. We just touch on MRO today and maintenance, but there's -- every area has the culture to generate ideas and initiatives on this front, and we're going to keep on growing. We have financial growth opportunities in terms of fleet growth, upgauging our fleet, expanding premium offerings to our customers. So we are very convinced that when we think about return on capital opportunities, we are seeing them in our region with our value proposition, with this cost structure, with this capital structure. And we're very focused on delivering strong returns to our shareholders. And we see that we can do that by growing profitably and maintaining a very strong balance sheet in the future years. Thank you so much. We're going to turn it to Q&A now.

[Operator Instructions] Could we get a microphone here to the table on the front?

This is Matt from Olympus Peak. Fuel prices have been volatile over the last 2 to 3 years. How do you manage this volatility with hedges, pricing and the booking curve? And is there an optimal fuel price?

I'm happy to take that one. Thank you, Matt, for the question. And the way we think about hedging, we do hedge. And every quarter, you have seen the percentages of our hedges for each of the next 4 quarters. The way we think about hedging is that we look at our competitors and we look at how many of our ASKs portfolio are being hedged by our competitors, which are not for instance. And to give you an example, if we look at our European competitors, they generally do hedge, and they hedge 12 months in advance, 18 months in advance. So we tend to think that the pass-through of fuel volatility, in that area, our competitors hedge is going to be longer in time. So we tend to hedge those ASKs. And when we look at the U.S. carriers, the U.S. carriers do not hedge. So those ASKs from American, United, Delta, we believe that there is fuel volatility is going to be passed through more immediately than the European competitors. So we look at the overall portfolio, we make an analysis of who hedges and who doesn't. And we determine together with the booking curve, what's the optimum amount of hedging. Generally, our next quarter is hedged approximately 40%, I would say, on average. The quarter after that, a little less as the booking curve falls. The following quarter, a little bit less and so on. This is a hedging policy that has been in place for the past. Since 2016, I would say, it's reviewed by the Board every beginning of the year. Minor adjustments have been made. And the way we structure the instruments themselves is generally by establishing a color. It's an asymmetric color. So if the fuel prices comes down, we pay some premium, but we benefit from the reduction of fuel prices and we're covered asymmetrically more on the upper side. So think about asymmetric colors vis-a-vis the spot price going down the line in each of the quarters.

Could we get a question here in same -- at the same table?

So I have a question for you on the cargo business. What we've been seeing at the business has been trending really nicely versus the published Q2 results. So I'd be curious to hear anything you can share on that business performance today and then what we can expect of it going forward?

So I mean after international capacity was reinstalled in the last 18 to 24 months, that meant, I guess, a change in the moment in the cycle of cargo and the last half of 2023, first half of 2024, was paired with probably a demand that was not so strong. We have seen a change in that dynamic in the last few months. Exports from South America to the U.S. and Europe, which are perishables have been strong all along. Imports to South America, which is normally finished goods were in a weaker place, but that has actually changed in the last months. And that is paired together with some capacity -- cargo capacity, freighter capacity that we have seen that has exited the market in the last few months, particularly from Europe to South America. So yes, we see the flows today in a good place and in a capacity situation that is better on the balance than what we had in the first half of the year and the last half of 2023.

We have a question in the front from Mike.

Mike Linenberg, Deutsche Bank. Just I guess 2 questions here. Ramiro, you had that slide up that showed your unencumbered assets of $1.2 billion. Obviously, it's just the aircraft piece. I feel like it doesn't really do justice to your entire organization and sort of the breadth and depth. We have companies out there that have been monetizing their loyalty programs. We have a company out there that's looking to monetize its cargo business. Your businesses are far bigger than that. Have you done sort of run by run on sort of what you think the net asset value truly is at the company? Are we talking something north of $10 billion given your slots gates infrastructure, your MRO business. I mean what's that blue sky number, just to give us a sense of maybe the overall value?

We have counseled here, so they're going to be looking at what I say very closely. But there are some public numbers I can share with you. The loyalty program has an appraisal value of $5.6 billion. We have 48 million members as we covered today. So when I compare it to the appraisals of other carriers in the world, I think there's still room for improvement on that appraisal, but that's the current public appraisal that is there. On the cargo side, we have a little north of $2.5 billion on the cargo business itself. Again, it's a business, as Roberto said that, this is a valuation on December last year. So probably this December when we updated is going to be better as there is some offer that is being reduced and some capacity has been reduced. And slot cases and routes, it's very difficult to assess, right? How important is our position where we have a 2.3x relative frequency share in Sao Paulo, the main airport in South America. There's not a specific value for that, but the network that LATAM has built throughout the years with 60% market share in Chile, 65% in Peru, 40% in Brazil, it's really very difficult to replicate. So how much is that network worth and those lots cases and routes, there's no number in my mind at this point.

And then just sort of building off of that when we think about your ubiquity across the continent, across the region, you're in the business of carrying cargo and carrying passengers from point A to B or on to C. And yet when we think about brands and we think about your presence on the Internet in the region, I feel like there's just so much more there. I mean you look at some of the other carriers out there like a delta best practice is really pushing that brand. But again, they're in a much more competitive and contested U.S. market in your part of the world, I mean, you had it on one of your slides, you carry one of almost every 2 passengers in the region. And so I think you had hinted the MRO business right now it's a gem in the LATAM Empire, and yet it's only your own maintenance business, maybe an opportunity to a third party. Can you talk about maybe some of the -- your ability to diversify your revenue streams, whether it's opening up maintenance to doing more third party? Because I feel like the infrastructure is there, the platforms there in a part of the world where I think for most other carriers, the resources are constrained. It seems like you have that unique opportunity.

I agree. I mean, again, it's not only about absolute size, it's also about relative size. And when I mentioned something like 6% of the e-commerce in Latin America going through us. We have 1 billion visits on our website per year, 1 billion. 250 million different IPs actually connect on our channels or on digital channels a year. So I think that there's a ton of opportunity. I feel that the moment is right from where you ended up if you want the recovery from the pandemic and setting up the organization again and the capacity and making sure that you did that right, which wasn't easy. But I do agree with you that I think that the ability that we have to monetize our size goes beyond simply just adding additional flights. So we'll probably talk about that more in the future.

Please go ahead, Steve.

Steve Trent from Citi. Thank you very much for the presentation, very informative. Just 2 questions for me. I was intrigued by what you said about South America growth and employment per capita potential versus the United States. But when you look at the differences in some of the LATAM markets, flying is less affordable per capita than it is here. How do you think these Latin markets start to bridge the difference, high net worth, travel or more capacity coming in just would love your thoughts.

So I guess it's a combination of 2 things. Clearly, and you saw from my presentation on Paulo's presentation, there's clearly a number of people, high network individuals or, let's say, middle upper class people that have fly more and is flying more than in the past. And I think that's a clear trend that we're seeing. But the other one, and if you look at the economic split within -- I mean, let me give you the example of Chile. Today, 70% of Chile is middle class. And less than 10%, around 10% is poverty or are considered poor people. 25 years ago, that was 30% middle class and 40% poor people. So clearly, the economic evolution of the country is going to be extremely important. But travel has become extremely affordable vis-a-vis what it was 20 years ago. We have -- I don't have much doubt that the potential for growth is there. It's always paired to the growth of the economies. But on top of that, the need for travel, for air travel in the region because of the geography, because of all the other constraints, I think it's very clear that we'll have a good [ impulse ] going forward.

I'll just add something quickly. I think also our value proposition has a combination of choice. So we have a segment that we cater to, which is we call basic economy where people can buy more affordable fares all the way up to our premium business. So at the end of the day, the business is tailored to capture any opportunity of demand that we can see in any of the markets, and they will move at different paces sometimes.

And just one quick follow-up, if I may. I was definitely intrigued by what you said about next year's as fuel CASK. Would you happen to remember off the top of your head, maybe this is one for you, Ramiro, off the top of your head, what you're assuming in terms of U.S. dollar?

U.S. dollar, BRL.

U.S. dollar and your various basket, I mean, I know it's a lot, but if you have the 1 or 2 off the top of your head.

Yes. BRL, I think we're going to be releasing guidance in detail in December. BRL would be probably in line with the current forwards that we're seeing, which are BRL 5.4, Chilean pesos around CLP 950. But we will be releasing that information when we finally release our complete guidance during December. And you didn't talk about fuel, which I appreciate.

Now we have a question there in the back.

Pablo Monsivais from Barclays. I would like to listen to your opinion of what's going on in the Brazilian market, how do you see the competitive dynamics going on? And to what extent change that you're doing in your guidance this year and your outlook for 2025 is also predicated on a better competitive position for you.

So I mean, I think we're seeing what's going on with the industry in Brazil. It's very hard to predict at this point in time, I think what will happen -- but we focus on ourselves. I mean, we will see what happens there. But I think that what's important is our ability on what we have shown here that we can do in the market. We have been able to grow our premium revenue significantly. We have improved our position in the markets on every single aspect. And I want to tell you about relative advantage is just being very attentive to whatever can happen that can provide an advantage to us. I have no doubt that we have created, particularly in Brazil, the strongest brand today, the best value proposition. It's been shown in the numbers very clearly and we will continue to do so. And I think that with what we're looking at growth outlook for 2025, we have the capability of continuing to just make our network, our position even better than the one we have today.

Jens Spiess from Morgan Stanley. I have a question regarding -- I want to square the fundamental growth you're seeing for the region versus your order book for your fleet. Obviously, you cannot anticipate any delays, but what has you most worried? Is it your narrow-body like order book, your wide-body order book. And also, do you have any concerns in terms of like pilot availability into the future?

I'll turn the question of pilots to Hernan. Just to address the order book, I feel very confident on the narrow-body side. I think we have a very clear line of sight with our colleagues from Airbus on that. I think Airbus has got 2x already the production rate this year. But I think what we have shown you there is something that they will be delivering in time. Boeing, it's a little bit more concerning. We do think that Boeing will come out of this situation and come out stronger. But I would say that those 2 wide bodies is something that generates a little bit more uncertainty. And on the engine side, we have very little impact from the rest of the engines. I would say the most concerning one is roles for the 787-9, that's something that has a lot of focus from management today. I'll turn it to Hernan for the pilot question.

No concern really in the next few years. There's a big difference vis-a-vis the U.S. if you want as well, that within a region, you will need 1,500 hours to get on an airliner. So across Latin America, you need 200 in Peru, in Chile, in Colombia, you need 500 in Brazil. We can have this flexibility as well of moving around some pilots, obviously, not all of them, but some of them, we can. And we are working -- we are anticipating sort of the future in terms of putting in place flight schools that work with us to produce more pilots and to -- could be financing them. And we're thinking about sort of how we do it going forward, but I don't see any problem in the next 2 years.

Thank you. So actually, on a related note, we have a question from the webcast that is probably for you, Hernan. With regard to the context of engine turnaround times in the current context, OEM delays and supply chain issues. How do you ensure efficient maintenance and repairs to minimize the downtime and disruptions to our operations?

With a lot of effort. So obviously, we're suffering on that node. And maybe I'll turn it to you, Ramiro, but it's -- we've been extended. We had to -- we really wanted to do it to take out some fleet that is going a little bit over 20 years. I like to fly planes, not over 20 years because you have to invest more in maintenance and so on and so forth, reliability is not that good. But we've anticipated we bought some engines, we bought some inventories by the cash-generating opportunity that we had. We anticipated what was coming, and we think we are -- I mean, we are prepared for the next year or so. We're going to be suffering as well like anyone is doing or everybody is doing. Today, we have one AOG on the 787 fleet. We have 6 AOGs on the 320 fleet. On the 320 fleet is 450 across the globe and on the 787, it's about 23 or so depending on the date that you asked the question. But I think we'll cover -- I mean, I think that Ramiro said that we're confident upon the growth going forward because we've had -- we already have the planes over there. And we have the flexibility and the ability of extending the life of those planes that we were returning by doing sort of a maintenance program that is called ECG1, ECG2 that we're looking at to make sure that we have the fleet available for the growth that we want to attain.

Yes, I think that's basically right. I think Hernan pushed us a lot on the components parts. It was already mid last year, I think on increasing inventories. We were seeing that components would be an issue and inventories would be an issue. So we allocated some working capital to that. And yes, we also bought some additional spare engines on the different families to have a little bit more buffer. We were not anticipating the magnitude that we're seeing today in the industry and the impact that it is causing, but it gives us a little bit of comfort that, together with the extension of the life of the aircraft, we're very confident on what we have flown in 2024 that you have seen, we actually have flown what we were anticipating despite all the disruptions and extremely confident on 2025.

Another one from the webcast. What plans does LATAM have to improve the customer experience from an operational standpoint?

I'll take a little bit and then maybe you, Hernan. I think we talked about when we say the value proposition and the focus that we have, we clearly are making sure that we put the resources behind what our customers tell us what's important to them. So a lot of the things that you've seen were based on customer feedback. So what we have coming is continue to retrofit the cabins for the wide bodies. We're going to continue with the WiFi installation. We have the lounges that are coming up. We do a lot of soft improvement in terms of catering and services in general. There's a huge push for technology. Roberto alluded to that a few times. In terms of improving so that if something happens we are also better prepared to interact with our customer and find solutions. Contingencies are part of our day to day because of things outside of our control. So we just need to make sure that we are very, very in tune to that and position the business to react when customers need us. And I think that's about it.

I just want to complement with something that has been repeated, but I think it's really important. I mean, our customers put their time in our hands. And they want to make sure that they can get wherever they need to get safely, quickly without [ hedge ]. That's why dependability is so front end and center for us. So we don't waste mental resources, people resources and necessarily even physical resources to make sure that we continue to be that dependable airline that we are today. Every time I feel that the customers have more voice. I used to receive no e-mails from customers on complaints. I receive a few a week. And I don't think that, that's related to operation actually is better. It's just that our customers are today expecting more, demanding more, wanting to make sure that you are concentrated on what they expect from you. So that's a key thing. And it doesn't matter if it's operational, it doesn't matter if it's hard or soft, doesn't matter if it's financial. It is very clear for us that we focus there, the impact is well seen.

A question here in the front.