Q2 2024 Corporación América Airports SA Earnings Call

Operator: Good morning and welcome to the Corporation America Airports second quarter 2024 conference call.

Operator: Good morning and welcome to the Corporation America Airports second quarter 2024 conference call. A slide presentation accompanies today's webcast and is available in the Investors section of the company's website. As a reminder, all participants in the listen-only mode, there will be an opportunity to ask questions at the end of the presentation.

Good morning, and welcome to the Corporation of America airports second quarter 'twenty 'twenty four conference call a slide presentation accompanies today's webcast and is a sellable in the investors section of the company's website.

Operator: A slide presentation accompanies today's webcast and is available in the investor's section of the company's website.

Operator: Thank you.

Operator: As a reminder, all participants are in a listen-only mode. There will be an opportunity to ask questions at the end of the presentation.

Speaker Change: As a reminder, all participants in a listen only mode.

Speaker Change: There will be an opportunity to ask questions at the end of the presentation.

Operator: At this time, I would like to turn the conference over to Patricio Inaki Esnaola, Head of Investor Relations.

Patricio Esnaola: At this time, I would like to turn the conference over to Patricio Inaki Esnaola, head of investor relations. Please go ahead.

At this time I would like to turn the conference over to Patricio Nike NOLA head of Investor Relations. Please go ahead.

Patricio Iñaki Esnaola: Please go ahead.

Patricio Iñaki Esnaola: Thank you.

Speaker: Thank you.

Patricio Iñaki Esnaola: Good morning, everyone, and thank you for joining us today.

Speaker Change: Thank you good morning, everyone and thank you for joining us today.

Patricio Esnaola: Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Martina Marquian, our Chief Executive Officer, and Jorge Filho, our Chief Financial Officer.

Patricio Iñaki Esnaola: Speaking during today's call will be Martina Recchia, our Chief Executive Officer, and Jorge Filho, our Chief Financial Officer.

Speaker Change: During today's call will be mosquito, Mike Yeung, our Chief Executive Officer and of course, our Chief Financial Officer.

Patricio Iñaki Esnaola: Before we proceed, I would like to make the following safe harbor statement.

Speaker: Before we proceed, I would like to make the following safe harbor statement. Today's call will contain four looking statements, and I refer you to the four looking statement section of our earnings release and regional filings with the SEC. We assume no obligation to update or revise any four looking statements to reflect new or change events or circumstances. Please note that throughout this call, all references to revenues, costs, adjusted EBDA, and margin, we refer to figures excluding IFA 12.

Speaker Change: Please proceed I would like to make the following safe Harbor statement today's call will contain forward looking statements.

Patricio Iñaki Esnaola: Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC.

Speaker Change: I refer you to the forward looking statement section of our earnings release and recent filings E. S E T.

Patricio Iñaki Esnaola: We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.

Speaker Change: We assume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances.

Patricio Iñaki Esnaola: Please note that throughout this call, all references to revenues, costs, adjusted EBITDA, and margin will refer to figures excluding IFRIC 12.

Speaker Change: No not at all this call all references revenues cost adjusted EBITDA margin was as far as the figures excluding I've been tough.

Martina Marquian: I will now turn the call over to our CEO, Martina Elmequian. Thank you, Inaki. Hello, everyone, and welcome to our second quarter 2024 earnings call. I will begin today's presentation with some key highlights from our second quarter performance.

Martina Recchia: I will now turn the call over to our CEO, Martín Ernequean.

Speaker Change: I'll now turn the call over to our CEO Marty Mckenna.

Martina Recchia: Thank you, Inaki.

Marty Mckenna: Thank you Hello, everyone and welcome to our second quarter 'twenty 'twenty four earnings call.

Martina Recchia: Hello, everyone, and welcome to our second quarter 2024 earnings call.

Martina Recchia: I will begin today's presentation with some key highlights from our second quarter performance.

Marty Mckenna: We'll begin today's presentation with some key highlights from our second quarter performance.

Martina Recchia: After that, I will turn it over to Jorge for a more detailed financial review, and then we will open the floor for questions.

Martina Marquian: After that, I will turn it over to Jorge for a more detailed financial review, and then we will open the floor for questions. Our business is supported by having a diversified geographic portfolio. By operating in a variety of countries globally, we were able to mitigate weaker domestic traffic in Argentina, impacted by the challenging macro backdrop in the country, as well as aircraft constraints in Brazil, which resulted in less number of flights. As a result, revenues remain resilient despite the mid single digits year-over-year decline. Intrafic was adjusting for the discontinuation of the metallur per concession earlier in the year.

Speaker Change: After that I will.

Quota: I'll turn it over to quota.

Quota: So the more of these things financial review and then we will open the floor for questions.

Martina Recchia: Our business is supported by having a diversified geographic portfolio. By operating in a variety of countries globally, we were able to mitigate weaker domestic traffic in Argentina impacted by the challenging macro backdrop in the country, as well as aircraft constraints in Brazil, which resulted in less number of flights.

Speaker Change: Our business is supported by having a diversified geographic portfolio by operating you know what I have your countries globally.

Speaker Change: We were able to mitigate weaker domestic but I think in Argentina impacted by the challenging macro backdrop in the country, that's where the aircraft cost base, which resulted in less number of flights.

Martina Recchia: As a result, revenues remain resilient despite the mid-single-digit year-on-year decline in traffic when adjusting for the discontinuation of the Natal Airport concession earlier in the year.

Speaker Change: As a result revenues remain resilient despite the mid single digits year on year decline.

Speaker Change: In graphics, when adjusting for the discontinuation of the net.

Speaker Change: Therefore, the conversation earlier in the year.

Martina Recchia: Revenues per passenger, ex-IFRIC 12, expanded 9% year-over-year, outpacing revenue growth, underscoring our ability to adapt to challenging market dynamics.

Martina Marquian: Revenue per passenger, IFA 12 expanded 9% year over year, outpacing revenue growth, underscoring our ability to adapt to challenging market dynamics. And Jorge will discuss this more in detail shortly. EBDA, IFA 12 declined 9% year over year, largely due to the macroeconomic challenges that Argentina is facing, which affected our domestic traffic and operational costs. Moreover, due to different sales being lower this year, as last year's figures were officially high due to the gap between the official effects rates and the parallel one. By contrast, our robust results in Italy and Euro-Y empathize the strength and resilience of our operations in those markets.

Speaker Change: Revenues per passenger.

Speaker Change: Great expanded 9% year over year.

Speaker Change: Facing revenue growth underscoring our ability to adapt to challenging market dynamics.

Martina Recchia: And Jorge will discuss this more in detail shortly.

Speaker Change: And Jorge will discuss this more in detail shortly.

Martina Recchia: EBITDA ex-IFRIC 12 declined 9% year-over-year, largely due to the macroeconomic challenges that Argentina is facing, which affected our domestic traffic and operational costs.

Jorge: EBITDA ex epic was declined 9% year over year, largely due to the macroeconomic challenges that have been denied spacing, which affected our domestic traffic inauguration of alcohol.

Martina Recchia: Moreover, duty-free sales were lower this year, as last year's figures were especially high due to the gap between the official FX rate and the parallel one.

Jorge: Moreover, dutifully sales were lower this year as last year's figures, whereas especially high due to the gap between the official FX rate and the other one.

Martina Recchia: By contrast, our robust results in Italy and Uruguay emphasized the strength and resilience of our operations in those markets.

Jorge: By contrast, our robust results in Italy and Uruguay.

Jorge: The strength and resilience of our operations in local markets.

Martina Recchia: Furthermore, our strong cash flow generation and solid balance sheet with a record low leverage ratio demonstrate our commitment to sustaining financial stability while maintaining the flexibility needed to support growth initiatives.

Martina Marquian: Furthermore, our strong natural generation and solid balance with a record low leverage ratio demonstrates our commitment to sustaining finance and stability when maintaining the flexibility needed to support growth initiatives.

Jorge: Little more our strong cash flow generation and solid balance sheet.

Jorge: With a record low leverage ratio.

Jorge: Demonstrate our commitment to sustaining financial stability, while maintaining the flexibility needed to support the growth initiatives.

Martina Recchia: Now moving on to page 4 for a review of passenger traffic trends. Total passenger traffic in the quarter was negatively impacted by weak demand from domestic, travel in Argentina as the market was challenging for reasons I just mentioned. By contrast, international traffic in Argentina continued to perform well, further supported, by continued expansion in traffic in Italy and in Uruguay. On a comparable basis and excluding Natal Airport, a concession we exited in February, as previously disclosed, passenger traffic declined 5% year-on-year driven by a 15% contraction in domestic traffic mainly driven by Argentina, while international traffic increased 8% in the period.

Martina Marquian: Now moving on to page 4, for a review of Patricio El Traffic Trends. Total Patricio El Traffic in the quarter was negatively impacted by weak demand from domestic travel in Argentina, as the market was challenging for reasons I just mentioned. By contrast, international traffic in Argentina continued to perform well, further supported by continued expansion in traffic in Italy and in Uruguay. On a comparable basis and excluding Natal Airport, a concession we exited in February as previously disclosed, passenger traffic declined 5% year on year, driven by a 15% contraction in domestic traffic, mainly driven by Argentina, while international traffic increased 8% in the period.

Jorge: Okay.

Jorge: Now moving on to page four for a review.

Speaker Change: Passenger traffic trends.

Speaker Change: Total passenger traffic in the quarter it was negatively impacted by weak demand from domestic travel in Argentina.

Speaker Change: The market was challenging for reasons I just mentioned.

Speaker Change: By contrast international traffic in Argentina continues to perform well.

Speaker Change: Well it is supported by continued expansion in traffic in Italy and in Norway.

Speaker Change: When a competitor was basis and excluding that that airport concession we exited in February as previously disclosed.

Speaker Change: Traffic declined 5% year on year, driven by a 15% contraction in domestic traffic, mainly driven by Argentina, while international traffic increased 8% in the period.

Martina Marquian: Now discussing year-on-year trend by country of operations. In Italy, we saw steady passenger traffic growth up for 10% year on year. This positive performance was mainly due to a 17% rise in international traffic and mid single-digit growth in domestic traffic. This positive trend continued into July, benefiting from the summer season, with traffic growing 5.5% versus the same month of last year. In Uruguay, the opening of new routes and frequencies by Jesmar and Sky Airlines in May contributed to the 11% increase in traffic in the quarter. This positive trend extended into July with traffic growing 15% year on year.

Martina Recchia: Now discussing year-on-year trends by country of operations. In Italy, we saw steady passenger traffic growth, up 14% year-on-year. This positive performance was mainly due to a 17% rise in international traffic and mid-single, digit growth in domestic traffic. This positive trend continued into July, benefiting from the summer season, with traffic growing, 5.5% versus the same month of last year.

Now discussing here in Europe by country of operations in Italy.

Speaker Change: We saw steady passengers the big growth up 14% year on year. This positive performance was mainly due to a 17% rise in international traffic and mid single digit growth in domestic graphics. This positive trend continued into July benefiting from the summer season with traffic.

Speaker Change: Five 5% versus the same month of last year.

Martina Recchia: In Uruguay, the opening of new routes and frequencies by JetSmart and Sky Airlines in, May contributed to the 11% increase in traffic in the quarter. This positive trend extended into July, with traffic growing 15% year-on-year.

Speaker Change: In Uruguay, the opening of new routes and frequencies by just months and Sky. Her 19 may contribute to the 11% decrease in traffic in the quarter. This positive trend extended into July with traffic growing 15% year on year.

Martina Marquian: In Argentina, international traffic was up 9% in the quarter, delivered by the resumption of more routes and frequencies. This very good performance, however, was more than upset by a contraction of 19% in domestic traffic. In addition to facing difficult problems as last year's travel benefited from the Previaje government intentives to boost local tourism, domestic traffic was also impacted by the temporary suspension of several routes and trade cancellations as the stationary environment dumped demand for travel. As a reminder, while domestic traffic comprises around two-thirds of total traffic in the country, over 90% of passenger use fees are generated by international traffic and are fooling to US dollars.

Martina Recchia: In Argentina, international traffic was up 9% in the quarter, driven by the resumption, of more routes and frequencies. This very good performance, however, was more than offset by a contraction of 19% in domestic, traffic. In addition to facing difficult times, as last year's travel benefited from the Previaje, government incentives to boost local tourism, domestic traffic was also impacted by the temporary suspension of several routes and freight cancellations, as the precisionary environment damped demand for travel.

Speaker Change: In Argentina internationally, but I think it was up 9% in the quarter driven by the resumption of more routes and frequencies.

Speaker Change: This very good performance however.

Speaker Change: Was more than offset by a contraction of 19% in domestic traffic.

Speaker Change: In addition to facing difficult comps as last year benefited from the.

Government incentives to boost local tourism.

Speaker Change: Domestic traffic was also impacted by the temporary suspension of pseudo roads in place installations as they're sufficiently environment.

Speaker Change: Demand towards that I would.

Martina Recchia: As a remainder, while domestic traffic comprises around two-thirds of total traffic in the, country, over 90% of passenger use fees are generated by international traffic, and are fully linked to U.S. dollars.

Speaker Change: As a reminder, while domestic traffic comprises around two thirds of total traffic in the country over 90% of passenger use fees are generated by international is that I think.

Speaker Change: Fully lead to U S dollars.

Martina Marquian: In July, we saw improved performance within the national traffic growing for 10% and domestic traffic declining 12%. Traffic in Armenia, within the larger class, declining in the low single visits as the market continues to face very strong coms versus last year. In July, total traffic decreased by 2% year on year. In Ecuador, total traffic declined by mixing all visits. International traffic growth of 4% was more than upset by a decline of 13% in domestic travel following the exit of a local airline in October last year. This trend continues into July with a total traffic declining 5% year-on-year.

Martina Recchia: In July, we saw an improved performance, with international traffic growing 14% and domestic, traffic declining 12%.

Speaker Change: In July we saw improved performance within the national traffic growing 14% and domestic traffic declining 12%.

Martina Recchia: Traffic in Armenia remained largely flat, declining in the low single digits as the, market continues to face very strong comps versus last year. In July, total traffic decreased by 2% year-on-year.

Speaker Change: But I forget Armenia remaining largely flat declining in the low single digits as the market.

Speaker Change: Good news too faced very strong comps versus last year in July total traffic decreased by 2% year on year.

Martina Recchia: In Ecuador, total traffic declined by mid-single digits. International traffic growth of 4% was more than offset by a decline of 13% in domestic, travel following the exit of a local airline in October last year. This trend continued into July, with the total traffic declining 5% year-on-year.

Speaker Change: In Angola.

Speaker Change: Total traffic declined by mid single digits International if I could go on.

Speaker Change: 4% was more than offset by a decline of 13% the.

Speaker Change: Following the exit of a local airline below last year.

Speaker Change: These trends continued into July with a total traffic declining 5% year on year.

Martina Marquian: In Brazil, as mentioned, traffic flow continues to be significantly impacted by financial and early application in one of the local airlines, causing a lack of supply. This dynamic resulted in a 3% decline in passenger traffic when excluding Natal airport. In July, we saw an improved performance with transit passenger traffic growing 15% and domestic traffic decreasing 5% excluding Natal.

Martina Recchia: In Brazil, as mentioned, traffic flow continues to be significantly impacted by financial, and aircraft limitation in one of the local airlines, causing a lack of supply. These dynamics resulted in a 3% decline in passenger traffic when excluding Natal Airport.

In Brazil as mentioned electric co continues to be significantly impacted by financial and aircraft limitation in one of the local airlines, causing a lack of supply.

Speaker Change: These dynamics resulted in a 3% decline in passenger traffic when excluding Natal airport.

Martina Recchia: In July, we saw an improved performance, with transit passenger traffic growing 15% and domestic traffic decreasing 5% excluding Natal.

Speaker Change: In July we saw an improved performance with transit passenger traffic growing.

Speaker Change: 15% and domestic traffic decreasing 5% excluding that.

Speaker Change: Yeah.

Martina Marquian: Turning to slide 5, cargo volumes continue, the sustained recovery trend increasing in the mid-single-digit year-on-year. Argentina equaled in Armenia, which accounted for over 70% of cargo volumes, remained the main driver behind this good performance, while Italy and Uruguay posted slightly clients. However, despite the volume growth, cargo revenues declined 13% year-on-year, primarily due to lower revenues in Argentina. This decline was caused by a reduction in the number of days that cargo remained stored.

Martina Recchia: Turning to slide 5, cargo volumes continued the sustained recovery trend, increasing in, the mid-single-digit year-on-year. Argentina, Ecuador, and Armenia, which accounted for over 70% of cargo volumes, remained the, main driver behind this good performance, while Italy and Uruguay posted slight declines.

Speaker Change: Turning to slide five.

Speaker Change: Cargo volumes convenience the sustained recovery trend increasing in the mid single digit year on year.

Argentina, Ecuador, and Armenia, which accounted for over 70% of the Cutover Williams remained the main driver behind this good performance, while Italy, and Uruguay posted slight guidance.

Martina Recchia: However, despite the volume growth, cargo revenues declined 13% year-on-year, primarily, due to lower revenues in Argentina. This decline was caused by a reduction in the number of days that cargo remained stored.

Speaker Change: However.

Speaker Change: Despite the volume growth global revenues declined 13% year on year, primarily due to lower revenues in Argentina.

The gain was caused by a reduction in the number of days that category remained stored.

Jorge Filho: I will now hand off the call to Jorge, who will review our financial results. Please, go ahead.

Martina Recchia: I will now hand off the call to Jorge, who will review our financial results.

Speaker Change: I will now hand over to Glenn.

Glenn: Who will review our financial results. Please go ahead.

Jorge Filho: Please, go ahead.

Jorge Filho: Thank you, Martin, and goodbye, everyone. Let's start with our top line on slide 6. Total revenues X is 612 for a stable year-on-year, despite the low passenger traffic, as aeronautical revenue growth was offset by the decline in the commercial segment. Our aeronautical revenues were up 3% year-on-year, mainly due to high international passenger traffic in Italy, Uruguay, and Argentina, and tariffs increased in Uruguay and Ecuador. As a reminder, the majority of our electrical revenues in Argentina is derived from the international traffic. Moreover, aeronautical revenue in Uruguay and Italy delivered double-digit year-on-year growth in the second quarter of 2024, benefiting from the consistent positive momentum in those geographies.

Jorge Filho: Thank you, Martin, and good day, everyone.

Glenn: Thank you Martina and good day, everyone, let's start with our top line on slide six total revenues ex <unk> 12 were stable year on year, despite the lower passenger traffic.

Jorge Filho: Let's start with our top line on slide 6.

Jorge Filho: Total revenues, except 12, were stable year-on-year, despite the lower passenger traffic, as aeronautical, revenue growth was offset by the decline in the commercial segment. Aeronautical revenues were up 3% year-on-year, mainly driven by higher international passenger, traffic in Italy, Uruguay, and Argentina, and tariff increase in Uruguay and Ecuador. As a reminder, the majority of our aeronautical revenues in Argentina is derived from the, international traffic. Moreover, aeronautical revenue in Uruguay and Italy delivered double-digit year-on-year, growth in the second quarter of 2024, benefiting from the consistent positive momentum in those geographies.

Glenn: Total revenue growth was offset by the decline in the commercial sector.

Glenn: Although multiple revenues.

Glenn: 2% year on year, mainly driven by higher international passenger traffic in Italy, Uruguay, and Argentina, and Turkey increased Uruguay and Ecuador.

As a reminder, the majority of our multiple Robinson ordering teammates derived from the international truck.

Glenn: Moreover, aeronautical revenue O'brien, Italy delivered double digit year on year growth.

In the second quarter of 'twenty 'twenty four benefiting from the consistent positive momentum in those geographies.

Jorge Filho: Commercial revenues decreased 3% year-on-year, mainly impacted by lower cargo and duty-free revenues in Argentina and lower fuel revenues in Armenia. As anticipated in our first quarter, 2024, early school, the duty-free business in Argentina was impacted by the December 20th, 2023, period of evaluation. This was partially upset by higher revenues from VAT launches, advertising, and rental sales, with strong performance in Italy, Uruguay, and Brazil. In summary, the average on-cat geographically diverse portfolios are revenue per passenger, X-E12, including 9% to $20.1 discounted from $18.5 in the second quarter of 2023. Tentatives like 70, total cost of expenses, X-E12, including 6% year-on-year, mainly reflected inflationary pressures in Argentina, as the local inflation rate was above guaranteed evaluation.

Jorge Filho: Commercial revenues decreased 3% year-on-year, mainly impacted by lower cargo and duty-free, revenues in Argentina, and lower fuel revenues in Armenia. As anticipated in our first quarter 2024 earnings call, the duty-free business in Argentina, was impacted by the December 2023 PESA devaluation. This was partially offset by higher revenues from VIP lounges, advertisement, and rental, space, with strong performance in Italy, Uruguay, and Brazil.

Glenn: Revenues decreased 3% year on year, mainly impacted by lower cargo and duty free revenues in Argentina, and lower fuel revenue Zimmer knee here as anticipated in our first quarter 2044 earnings call. The duty free business in Argentina was impacted by the December 'twenty to 'twenty three period evaluation.

Glenn: This was partially offset by higher ratings from VIP lounges advertising.

Speaker Change: Rental space with strong performance in Italy, Uruguay, and Brazil in summary message on cap geographically diverse portfolio or revenue per passenger actually 612th increase 9% to $21. This quarter from $18 $5 in the second quarter of <unk>.

Jorge Filho: In summary, leveraging on-cap geographically diverse portfolio, our revenue per passenger, ex-effic 12 increased 9% to $20.1 this quarter, up from $18.5 in the second quarter of 2023.

Craig: Thank you Craig.

Jorge Filho: Turning to slide seven, total cost and expenses ex-effic 12 increased 6% year-on-year, mainly, reflecting inflationary pressures in Argentina, as the local inflation rate was above currency devaluation. As a reminder, around 60% of total costs in Argentina are PESA denominated. Regarding specific cost items, we experienced higher maintenance expenses together with higher, services and fees.

Speaker Change: Turning to slide seven total cost and expenses ex <unk> 12 increased 6% year on year, mainly reflecting inflationary pressures in Argentina at the local inflation grateful of our bulk currency devaluation as a reminder, around 60% of total cost in Argentina.

Jorge Filho: As a reminder, around 60% of total cost in Argentina are peso-denominable. Regarding specific cost items, we experienced higher amounting of expenses to gather with higher services and fees. Importantly, we remain focused on keeping stringent cost controls in Argentina, consistent with our commitment to maintain an extreme line cost structure.

Speaker Change: As a denominator.

Speaker Change: Regarding specific cost items, we experienced higher marketing expenses together with higher services and sheets.

Jorge Filho: Importantly, we remain focused on keeping stringent cost controls in Argentina consistent with our commitment to maintain a streamlined cost structure.

Speaker Change: We remain focused on keeping stringent cost controls and Argentina, consistent with our commitment to maintain a streamlined cost structure.

Jorge Filho: Moving on to profitability on light 8th. Adjusted the data; Exific 12 was 136 million dollars. In 9% year-on-year decline, mainly explained by the performance we saw in Argentina. This was partially upset by another quarter of double-gifted growth in adjusted data in both Italy and Uruguay. We are very encouraged by the ongoing momentum in these two countries and the corresponding financial performance, which included solid margin expansion during the quarter. Tendon fees like 9 and a P, by our strong cash flow generation, we closed the quarter with a total equity position of 500 and 49 million dollars.

Jorge Filho: Moving on to profitability on slide eight.

Speaker Change: Moving on to profitability on slide eight.

Speaker Change: Adjusted EBITDA ex <unk> 12 was $146 million in 9% year on year decline mainly explained by the performance. We saw in Argentina. This was partially offset by another quarter of double digit growth.

Jorge Filho: Adjusted EBITDA Exit Freq 12 was $136 million, in 9% year-on-year decline, mainly explained by the performance we saw in Argentina. This was partially offset by another quarter of double-digit growth in adjusted EBITDA in both, Italy and Uruguay. We are very encouraged by the ongoing momentum in these two countries and the corresponding financial performance which included solid margin expansion during the quarter.

Speaker Change: Adjusted EBITDA in both Italy, and little way.

Speaker Change: We are very encouraged by the ongoing momentum in these two countries and the corresponding financial performance, which include solid margin expansion during the quarter.

Jorge Filho: Coming to slide nine, underpinned by our strong cash flow generation, we closed the quarter with a total liquidity position of $549 million, up $91 million when compared to year-end 2023, with all of our operating subsidiaries reporting positive cash flow from operating, activities during the first half of the year except Ecuador. Moving on to the debt and maturity profile on slide 10.

Speaker Change: Turning to slide nine.

Speaker Change: Underpinned by our strong cash flow generation, we closed the quarter with a total liquidity position of $549 million up $91 million, one compared to year end 2020, which I'll follow up reading subsidiaries reported positive cash flow from operating activities.

Jorge Filho: At 91 million dollars, one compared to year-end 2020, with all of our operating subsidiaries reporting positive cash flow from operating activities during the first half of the year except Ecuador.

Speaker Change: During the first half of the year, except Ecuador.

Jorge Filho: Moving on to the debt and maturity profile on Light 10. Our net leverage ratio is to that 1.1 times at quarter end, down from 1.4 times at year end and 1.2 times as of March 2024. The reduction in net leverage resulted from the amortization of scheduled principal payments, early redemption to Argentina and Armenia, as well as cash generation. In Italy, we successfully refinanced all our outstanding debt into one single facility. This allowed us to extend the average life of our debt while raising additional funds of 60 million euros for a copyc program at Pita Airport.

Speaker Change: Moving on.

Speaker Change: The depth and maturity profile on slide 10.

Jorge Filho: Our net leverage ratio stood at 1.1 times at quarter-end, down from 1.4 times at year-end and 1.2 times as of March 2024. The reduction in net leverage resulted from the amortization of scheduled principal payments, early redemptions in Argentina and Armenia, as well as cash generation.

Speaker Change: Our net leverage ratio stood at one one times at quarter end down from one four times at year end and one two times as of March 2024 <unk>.

<unk> net leverage resulting from the amortization of scheduled principal payments early redemptions in Argentina in Armenia, as well as cash generation.

Jorge Filho: In Italy, we successfully refinanced all our outstanding debt into one single facility. This allowed us to extend the average life of our debt while raising additional funds of 60 million euros for our CAPEX program at PISA airport.

Speaker Change: In Italy, we successfully refinanced all of our outstanding debt into one single facility.

Speaker Change: This allowed us to extend the average life of our debt while raising additional funds of 60 million euros for Capex program at Pisa Airport.

Jorge Filho: Wrapping up on my end, I would like to underscore the strength and resilience of our business.

Jorge Filho: Wrapping up on Mayan, I would like to underscore the strength and resilience of our business. We achieved high single-budget growth in revenues for five strong cash flow generation, and we continue to maintain our robust balance sheet and healthy debt to fly. We are accomplishing all of these even as we continue to face some heavy international failures.

Speaker Change: Wrapping up on my end I would like to underscore the strength and resilience of our business. We achieved high single digit growth in Walgreens for strong cash flow generation and we continue to maintain a robust balance sheet and healthy debt profile.

Jorge Filho: We achieved high single-digit growth in revenues so far, strong cash flow generation, and we continue to maintain a robust balance sheet and healthy debt profile.

Jorge Filho: We are accomplishing all of this even as we continue to face some hard

Speaker Change: We are accomplishing all of this even as we continue to face some headwinds nature for Ya.

Jorge Filho: wins mentioned earlier.

Martina Marquian: I will now hand the call back to Martin, who will provide closing remarks and discuss our view for the remainder of the year.

Speaker Change: I will now turn the call back to Martin, who will provide closing remarks and discuss our view for the remainder of the year.

Jorge Filho: I will now hand the call back to Martin, who will provide closing remarks and discuss our view for the remainder of the year.

Martina Marquian: Before opening the line for questions, please turn to slide 12 to wrap our prepared remarks. Revenues remain resilient. Despite the mid single digit decline in comparable traffic, as our geographic diversification mitigated the challenging macro conditions in Argentina and ever contains in Brazil. We are also pleased to see revenue per passenger outpace revenue growth, underscoring our ability to adapt to challenging market dynamics. While if it does, exit 12 decline, solid cash flow generation could have explained to our balance sheet. We achieve another record-know, net-level ad ratio, demonstrating our commitment to financial discipline.

Martin: Before opening the 94 questions. Please turn to slide 12 to wrap up our prepared remarks.

Martina Recchia: Before opening the line for questions, please turn to slide 12 to wrap our prepared remarks.

Martina Recchia: Revenues remain resilient despite the mid-single-digit decline in comparable traffic, as our geographic diversification mitigated the challenging macro conditions in Argentina and aircraft containers in Brazil.

Martin: Revenues remained resilient despite the mid single digit decline in comparable traffic as our geographic diversification and mitigated the challenging macro conditions in Argentina and aircraft contains investing.

Martina Recchia: We are also pleased to see revenue per passenger outpaced revenue growth, underscoring our ability to adapt to challenging market dynamics.

Speaker Change: We are also pleased to see revenue per passenger outpace revenue growth underscoring our ability to adapt to challenging market dynamics.

Martina Recchia: While

Martina Recchia: EBITDA's XF12 declined, solid cash flow generation further strengthened our balance sheet. We achieved another record low net leverage ratio, demonstrating our commitment to financial, discipline.

Speaker Change: While EBITDA ex <unk> 12 declined solid cash flow generation further strengthened our balance sheet.

We achieved another record low net leverage ratio demonstrating our commitment to financial discipline.

Martina Marquian: On the strategic growth front, we are actively negotiating a new 400 million gap-explan with the Armenian government and seeking approval for the new master plan for Florence Airport in Italy. Additionally, we are assessing expansion projects across values geographies in line with our strategic roadmap to pursue value aviation. Looking ahead, on the operations front, we expect the positive dynamics in Uruguay and Italy to continue throughout the year. In Argentina, we expect domestic traffic to remain soft, impacted by the persisting recession. Although we are pleased to see slight better traffic figures in July. Moreover, Argentina has strengthened its regulatory framework through recent open-size bilateral agreements with Brazil, Chile, Ecuador, Peru, Uruguay, Panama, Canada, and Paraguay.

Martina Recchia: On the strategic growth front, we are actively negotiating a new 400 million capex plan with, the Armenian government and seeking approval for the new master plan for Florence Airport in Italy.

Speaker Change: On the strategic growth plan, we are actively negotiating a new 400 million Capex plan with the army and government and seeking approval for the new Master plan.

Speaker Change: Florida its airports in Italy.

Martina Recchia: Additionally, we are assessing expansion projects across various geographies in line, with our strategic roadmap to pursue value creation.

Additionally, we are assessing expansion projects across various geographies in line with our strategic roadmap to pursue value creation.

Martina Recchia: Looking ahead, on the operations front, we expect the positive dynamics in Uruguay and, Italy to continue throughout the year.

Speaker Change: Looking ahead on the operations front, we expect the positive dynamics in U S and Italy to continue throughout the year.

Martina Recchia: In Argentina, we expect domestic traffic to remain soft, impacted by the persisting recession.

Dana: Dana we expect domestic traffic remained soft impacted by depressed 15 recession.

Martina Recchia: Although we are pleased to see slight better traffic figures in July, moreover, Argentina, has strengthened its regulatory framework through recent open-size bilateral agreements with Brazil, Chile, Ecuador, Peru, Uruguay, Panama, Canada, and Paraguay.

Dana: Though we are pleased to see slight visitor traffic figures in July.

Dana: Moreover, Argentina has strengthened its regulatory framework.

Dana: Recent open skies bilateral agreements with Brazil, Chile, Ecuador, Peru and Uruguay.

Dana: I know that in parallel.

Martina Marquian: These agreements are designed to enhance the flexibility and inject greater dynamism into the countries and our different activities. While in the financial front, we remain committed to delivering strong results, maintaining a healthy balance sheet, and creating value for our shareholders. By doing so, we have the financial flexibility to support our growth initiatives.

Martina Recchia: These agreements are designed to enhance the flexibility and inject greater dynamism into, the country's aeronautical activities.

Speaker Change: These agreements are designed to enhance the flexibility and inject greater dynamism in the Congress aeronautical activities.

Martina Recchia: While on the financial front, we remain committed to delivering strong results, maintaining, a healthy balance sheet, and creating value for our shareholders. By doing so, we have the financial flexibility to support our growth initiatives.

Speaker Change: Well on the financial front.

Speaker Change: Main committed to delivering strong results, maintaining a healthy balance sheet and creating value for our shareholders.

By doing so we have the financial flexibility to support our growth initiatives.

Martina Recchia: Thank you for your continued support and confidence in our company.

Martina Marquian: Thank you for your continued support and confidence in our company.

Speaker Change: Thank you for your continued support and confidence in our company. This ends our prepared remarks, we are ready to take your questions. Operator. Please open the line for questions.

Martina Recchia: This ends our prepared remarks.

Speaker: This ends our prepared remarks. We are ready to take your questions.

Martina Recchia: We are ready to take your questions.

Operator: Operator, please open the line for questions.

Operator: Operator, please open the line for questions. Thank you, ladies and gentlemen. If you'd like to ask a question, please press star one. To withdraw your question, press star two. One moment, please, for your first question.

Operator: Thank you.

Speaker Change: Thank you, ladies and gentlemen, if you'd like to ask a question. Please press star one to withdraw your question Press Star Q1 moment. Please for your first question.

Operator: Ladies and gentlemen, if you would like to ask a question, please press star 1. To withdraw your question, press star 2.

Operator: One moment, please, for your first question.

Alejandro DeMichelis: Your first question comes from Adirandro Dumichele from Jeffries.

Operator: Your first question comes from Alejandro DiMichele from Jefferies.

Speaker Change: Your first question comes from Eddie Rancho Dimiceli from Jefferies. Please go ahead.

Speaker: Please go ahead.

Alejandro DiMichele: Please go ahead.

Alejandro DiMichele: Yes.

Alejandro DiMichele: Good morning, guys.

Martina Marquian: Yes, good morning, guys. Thank you very much for taking my questions. Your questions are made, please. The first one, Martin, maybe you can update on how you see discussions with the different airlines regarding potential new routes into the country or higher frequencies. Now that is really the deregulation of the sector has accelerated, and then the second question is made for Jorge: how you see the development of the cost-based, particularly in Argentina, for the rest of the year.

Alejandro DiMichele: Thank you very much for taking my questions.

Speaker Change: Yes. Good morning, guys. Thank you very much for taking my questions. Two questions. If I may. Please the first one Martin maybe you can update on how you see discussions.

Alejandro DiMichele: Two questions, if I may, please.

Alejandro DiMichele: The first one, Martin, maybe you can update on how you see discussions with the different, airlines regarding potential new routes into the country or higher frequencies now that the deregulation of the sector has accelerated.

Speaker Change: With different airlines regarding potential new routes into the country or higher frequency nowadays.

Speaker Change: The deregulation of the sector.

Speaker Change: That's accelerated and then the second question is maybe.

Alejandro DiMichele: And then the second question is, maybe for Jorge, is how you see the development of the, cost base, particularly in Argentina, for the rest of the year?

Speaker Change: Maybe for Jorge is how you see the development of the cost base, particularly in Argentina for the rest of the.

Martina Marquian: Thank you, Alejandro, for a question. And regarding the effects on traffic of the deregulation that the government is pursuing, and moreover the amount of bilateral agreements open in the skies of Argentina to other countries, we are very, very positive. There are many studies demonstrating that in short, medium, and long term, these are very deep effects on the healthy growth in traffic numbers. So this is what we expect.

Martina Recchia: Thank you, Alejandro, for the question.

Speaker Change: Thank you.

Speaker Change: Question.

Martina Recchia: And regarding the effects on traffic of the deregulation that the government is pursuing, and, moreover, the amount of bilateral agreements opening the skies of Argentina to other countries, we are very, very positive. There are many studies demonstrating that in short, medium, and long term, this has, very deep effects on the healthy growth in traffic numbers.

Speaker Change: And is that.

Speaker Change: The effects on traffic.

Speaker Change: Deregulation that the government piece first.

Speaker Change: Pursuing and Moreover, the.

The amount of bilateral agreements opening the skies of Argentina to do other countries.

Speaker Change: We've got a very very positive that our many studies demonstrating that.

Speaker Change: In the short medium and long term this has a very deep effects on the.

Speaker Change: The healthy growth in traffic numbers. So this is what we expect.

Martina Recchia: So this is what we expect.

Martina Marquian: It's probably not going to happen one day to the next because airlines have to understand and adapt, and have the availability of work to do this. But the amount of flexibility that this gives to regional and local airlines. To tap on the Argentina market, we think it's very, very positive news, and that it's not only shorter news, but also for the medium and long term.

Martina Recchia: It's probably not going to happen one day to the next, because airlines have to understand, and adapt and have the availability of aircraft to do this.

Speaker Change: It's probably not going to happen.

Speaker Change: One day to the next because airlines have to understand and adopt and.

Speaker Change: And Javier AWD deal of aircraft to do this but the amount of flexibility that that this team to our regional and local airlines.

Martina Recchia: But the amount of flexibility that this gives to regional and local airlines, Thank you.

Speaker Change: To touch.

Speaker Change: On the Argentina market.

Speaker Change: We think it's a very very positive news and that it's not only short term, but also for the medium and long term.

Speaker Change: Okay.

Speaker: Okay, thank you.

Speaker Change: Okay. Thank you.

Jorge Filho: Okay, so on the coast front, and I guess your question was targeted towards Argentina, we see the same trend into the third quarter, and thereafter, softening. You know, bear in mind that the first quarter, you know, we managed to withhold price adjustments on suppliers and, among other things, and our causes to appear in general. But at some point in time, we had to accept, given the inflation environment, and we saw the same scenario, or we have seen the same scenario into the third quarter, and we expect thereafter to soften.

Jorge Filho: So on the cost front, and I guess your question was targeted to Argentina, we see the same trend into the third quarter, and thereafter softening, bear in mind that the first quarter we managed to withhold price adjustments on suppliers and among other things, and our cost structure in general, but at some point in time we had to accept given the inflation environment, and we saw the same scenario, or we are seeing the same scenario into the third quarter, and we expect thereafter to soften.

Speaker Change: Okay. So on the cost front and I guess your question was targeted towards Antena.

Speaker Change: We see the same trend into the third quarter and thereafter a softening.

Speaker Change: Talk to me.

Speaker Change: You know bear in mind that the first quarter, we manage to.

Speaker Change: We pulled our price adjustments on suppliers and among other things and in all of our cost structure in general.

Speaker Change: At some point in time, we had two two to accept given the inflation environment.

Speaker Change: And we saw the same scenario or we are seeing the same thing I was going to the third quarter and we expect thereafter to software.

Alejandro DiMichele: Okay, that's very clear.

Speaker: Okay, that's very clear.

Speaker Change: Okay, that's very clear thank you.

Operator: Thank you. Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star one.

Alejandro DiMichele: Thank you.

Operator: Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star, 1.

Speaker Change: Ladies and gentlemen, as a reminder, if you'd like to ask a question. Please press star. One. Your next question comes from Jason <unk> from Citi. Please go ahead.

Stephen Trent: Your next question comes from J. Singh, from city, please go ahead. Hey, thanks for taking my question, darling. Going for Stephen Trent here today, since one of my other questions has already been answered, the other thing I want to ask was, besides from Nigeria and Armenia, what are the investment opportunities do you see, and any of them happen to be in conjunction with Dubai? Thanks.

Operator: Your next question comes from Jay Singh from Citi.

Operator: Good morning and welcome to the Corporation America Airports second quarter 2024 conference call.

Operator: Good morning and welcome to the Corporation America Airports second quarter 2024 conference call. A slide presentation accompanies today's webcast and is available in the Investors section of the company's website. As a reminder, all participants in the listen only mode, there will be an opportunity to ask questions at the end of the presentation.

Jay Singh: Please go ahead.

Jay Singh: Hey, thanks for taking my question.

Jason: Hey, Thanks for taking my question dialing on for Stephen Trent here today since one of my other questions have already been answered I guess, the other thing I wanted to ask what the sites from Nigeria, and our media what are their investment opportunities do you see any of them happen to be in conjunction goodbye. Thank you.

Jay Singh: I'm dialing on for Stephen Trent here today, since one of my other questions has already, been answered.

Operator: A slide presentation accompanies today's webcast and is available in the Investors section of the company's website.

Jay Singh: I guess the other thing I wanted to ask was, you know, aside from Nigeria and Armenia, what other investment opportunities do you see, and do any of them happen to be in conjunction with Dubai?

Operator: As a reminder, all participants in the listen only mode, there will be an opportunity to ask questions at the end of the presentation.

Jay Singh: Thank you.

Martina Recchia: Hi, thank you for your question.

Okay.

Patricio Esnaola: At this time, I would like to turn the conference over to Patricio Inaki Esnaola, head of investor relation.

Patricio Esnaola: At this time, I would like to turn the conference over to Patricio Inaki Esnaola, head of investor relation. Please go ahead. Thank you.

Speaker: Hi, thank you for your question. We are from in connection with opportunities that are public.

Speaker Change: Oh Hi, Thank you for your question we are from a from.

Martina Recchia: We – from – in connection with opportunities that are public, we recently submitted a proposal, for the Luanda Airport in Angola as part of the public tender being carried out by the government, and submitted prequalification documents in Saudi Arabia.

Speaker Change: In connection with our opportunities that are public we recently submitted a proposal for them and one of the airports in Angola as part of the public tender being carried out by the government.

Speaker: We recently submitted a proposal for the London Airport in Angola as part of the public tender being carried out by the government, and are submitting pre-qualification documents in Saudi Arabia. However, there are a number of other situations we are actively looking at that we will be announcing if and when they become more concrete or official.

Operator: Please go ahead.

Patricio Esnaola: Good morning, everyone and thank you for joining us today.

Patricio Esnaola: Speaking during today's call will be Martina Marquian, our chief executive officer, and Jorge Filho, our chief financial officer. Before we proceed, I would like to make the following safe harbor statement. Today's call we contain four looking statements and I refer you to the four looking statement section of our earnings release and regional filings with the SEC.

Speaker Change: And our submit the Prequalification documenting told you a rabbit.

Martina Recchia: However, there are a number of other situations we are actively looking at that we will be, announcing if and when they become more concrete or official.

Speaker Change: However, there are a number of other situations. We are actively looking at that we will be announcing a if and when they become more concrete or feature.

Patricio Esnaola: We assume no obligation to update or revise any four looking statements to reflect new or change events or circumstances. Please note that throughout this call, all references to revenues, costs, adjusted EBDA and margin, we refer to figures excluding IFA 12.

Martina Recchia: Thank you very much.

Fernanda Recchia: Thank you very much. Here, the next question comes from Fernanda Richia from VPG; please go ahead.

Speaker Change: Oh, thanks, so much.

Operator: Your next question comes from Fernanda Richia from VPG.

Speaker Change: Your next question comes from Fernanda Rich, Yes N V. P. G. Please go ahead.

Fernanda Richia: Please go ahead.

Fernanda Richia: Hello.

Fernanda Richia: Thank you for taking my question.

Fernanda Recchia: Hello, thank you for taking my question. Two here from our side. The first one, Jorge Martini, if you could please provide an update on the tariff discussion on Argentina on the domestic side. How is the negotiation for a rebalance in progressing if you have any update on this mayor?

Fernanda Rich: Hello. Thank you for taking my question sure here from our side the first one.

Patricio Esnaola: I will now turn the call over to our CEO, Martina Elmequian. Thank you, Inaki.

Fernanda Richia: Two here from our side.

Fernanda Richia: The first one, Jorge Martini, if you could please provide an update on the tariff discussion, on Argentina on the domestic side.

Patricio Esnaola: Thank you.

Martina Marquian: Hello, everyone and welcome to our second quarter 2024 earnings call. I will begin today's presentation with some key highlights from our second quarter performance. After that, I will turn it over to Jorge for a more detailed financial review and then we will open the floor for questions. Our business is supported by having a diversified geographic portfolio. By operating in a variety of countries globally, we were able to mitigate weaker domestic traffic in Argentina, impacted by the challenging macro backdrop in the country, as well as aircraft constraints in Brazil, which resulted in less number of flights.

Jamie: Oh, Jamie.

Jamie: Jamie if you could please provide an update on the tariff discussion on Argentina on the domestic side.

Martin Bonnarens: Good morning, everyone and thank you for joining us today.

Fernanda Richia: How is the negotiation for a rebalance in progress, and if you have any update on this, matter?

Martin Bonnarens: Speaking during today's call will be Martina Marquian, our chief executive officer, and Jorge Filho, our chief financial officer.

Speaker Change: How is the negotiation for every balance sheet progressing if you have any updates on this matter.

Fernanda Recchia: And second, if you could please provide an update on the master plan discussion on Italy, it would be very helpful. Thank you.

Fernanda Richia: And second, if you could please provide an update on the master plan discussion on Italy, it will be very helpful.

Speaker Change: And secondly, if you could please provide an update on the master plan discretion on equally it would be very helpful. Thank you.

Martin Bonnarens: Before we proceed, I would like to make the following safe harbor statement.

Martin Bonnarens: Today's call we contain four looking statements and I refer you to the four looking statement section of our earnings release and regional filings with the SEC.

Fernanda Richia: Thank you.

Martina Marquian: Thank you, Fernanda, for your interest in your question. Martini here. Well, on the tariff in Argentina, we expect the domestic tariff to be adjusted soon because it's lagging behind the exchange rate, but we have to also very mind that the board of the regulatory agency was formed not long ago by the government, so we expect to see some adjustment times since the new authorities took over to the actual announcement of the cashing up of that domestic tariff has to do in Argentina. We also expect the re-balance of the whole economic equilibrium of the concession to be done at some point by these new authorities.

Martina Recchia: Thank you, Fernanda, for your interest in your question.

Fernando: Thank you Fernando.

Speaker Change: And your question.

Martina Recchia: Martin here.

Speaker Change: Martin here well on on that.

Martina Recchia: On the tariff in Argentina, we expect the domestic tariff to be adjusted soon because, It's lagging behind the exchange rate.

Speaker Change: That is in Argentina.

Martin Bonnarens: We assume no obligation to update or revise any four looking statements to reflect new or change events or circumstances.

Martina Marquian: As a result, revenues remain resilient despite the mid single digits year or year decline. Intrafic was adjusting for the discontinuation of the metallur per concession earlier in the year. Revenue per passenger, IFA 12 expanded 9% year over year, outpacing revenue growth, underscoring our ability to adapt to challenging market dynamics. And Jorge will discuss this more in detail shortly. EBDA, IFA 12 declined, 9% year over year, largely due to the macro economic challenges that Argentina is facing, which affected our domestic traffic and operational costs.

Speaker Change: We expect the domestic tariff do we adjusted soon because.

Martin Bonnarens: Please note that throughout this call, all references to revenues, costs, adjusted EBDA and margin, we refer to figures excluding IFA 12.

It is lagging behind the exchange rate.

Martina Recchia: But we have to also bear in mind that the board of the regulatory agency was formed not long ago by the government.

Speaker Change: But we have that in mind that the.

Martin Bonnarens: I will now turn the call over to our CEO, Martina Elmequian.

Speaker Change: On the border of the and there were three agency was calling me not long ago by the government.

Martina Recchia: So we expect to see some adjustment time since the new authorities took over to the actual announcement of the catching up that the domestic tariff has to do in Argentina. We also expect the rebalancing of the whole economic equilibrium of the concession to be done at some point by this new authority.

Speaker Change: So we expect.

Speaker Change: To see.

Patricio Esnaola: Thank you, Inaki.

Speaker Change: Some adjustment times since the New York, Oregon took over too.

Martin Bonnarens: Hello, everyone and welcome to our second quarter 2024 earnings call.

Speaker Change: <unk>.

Speaker Change: Due to the extra announcement or.

Catching up on that then I think that it has to do in Argentina. We also expect.

Speaker Change: The rebalancing of the whole economic equilibrium of the concession do we at some point backed by Disney All go together.

Martin Bonnarens: I will begin today's presentation with some key highlights from our second quarter performance.

Martina Marquian: Moreover, due different sales were lower this year, as last year's figures were officially high due to the gap between the official effects rates and the parallel one. By contrast, our robust results in Italy and Euro-Y empathize the strength and resilience of our operations in those markets. Furthermore, our strong natural generation and solid balance with a record low leverage ratio demonstrates our commitment to sustaining finance and stability when maintaining the flexibility needed to support growth initiatives.

Martina Recchia: We are already late on that, but hopefully before the end of the year we will have that exercise done.

Martina Marquian: We are already late on that, but hopefully, before the end of the year, we will have that exercise done. This is what we expect, at least for now.

Speaker Change: We had already late or not.

Speaker Change: But hopefully before the end of the year, we would have.

Martin Bonnarens: After that, I will turn it over to Jorge for a more detailed financial review and then we will open the floor for questions.

Speaker Change: At current sites are done right.

Martina Recchia: This is what we expect at least for now.

Speaker Change: This is what we expect at least for now and regarding Italy.

Martina Recchia: And regarding Italy, we are moving on a tight schedule and are back and forth with questions and documentation with the different agencies and the commission that needs to give the green light in terms of environmental approvals for the master plan to go ahead.

Martina Marquian: And we are moving on a tight schedule on a back-and-forth with questions and documentation with the different agencies and the commission that needs to give the green light in terms of environmental approval for the ambassador plan to go ahead. We are working on the last round of questions with the deadline for October, and then we need to see if there is another round of questions or the agency is ready to wrap up the process with our replies. But it's an active process, and it's moving forward.

Speaker Change: We are moving on a date scheduled on a record quarter with questions and documentation with the different agencies and the commission that needs to give the green light in terms of so you made a mental up Lou was.

Martina Marquian: Now moving on to page 4, for a review of Patricio El Traffic Trends. Total Patricio El Traffic in the quarter was negatively impacted by weak demand from domestic travel in Argentina as the market was challenging for reasons I just mentioned. By contrast, international traffic in Argentina continued to perform well, further supported by continued expansion in traffic in Italy and in Uruguay. On a comparable basis and excluding Natal Airport, a concession we exited in February as previously disclosed, passenger traffic declined 5% year on year driven by a 15% contraction in domestic traffic mainly driven by Argentina, while international traffic increased 8% in the period.

Speaker Change: But for them to go ahead.

Martina Recchia: We are working on the last round of questions with a deadline for October and then we need to see if there is another round of questions or the agency is ready to wrap up the process with our replies. But it's an active process and it's moving forward.

Speaker Change: We are working on the last round of questions with a deadline for October.

Martin Bonnarens: Our business is supported by having a diversified geographic portfolio. By operating in a variety of countries globally, we were able to mitigate weaker domestic traffic in Argentina, impacted by the challenging macro backdrop in the country, as well as aircraft constraints in Brazil, which resulted in less number of flights.

Speaker Change: And then we need to see that he set out around the questions or the agencies ready to wrap up their process with our replace him, but he said that would be a process and it's moving forward.

Martina Recchia: Thank you, Martin.

Fernanda Richia: Just to clarify, what you're expecting for the end of this year is just the tariff rebalancing in Argentina or the rebalancing for the whole concession?

Martina Marquian: Thank you, Martin.

Speaker Change: Thank you, Mike and just suppliers Fi what are your expecting towards the end of the year as jetblue carefully balancing that against you know the.

Fernanda Recchia: Just to clarify, what you're expecting for the end of this year is just the tariff we're balancing in Argentina, or the re-balance for the whole concession. The re-balance of the economic equilibrium of the concession will most probably be respected in Tariff in Argentina, and that's what we expect by the end of the year. But prior to that, we expect the regulatory agency to do a required catch-up on the domestic tariff that are lagging behind due to the evaluation in Argentina and that has to happen in a shorter time than the required working calculations needed to do a re-balance of the economic equilibrium.

Martin Bonnarens: As a result, revenues remain resilient despite the mid single digits year or year decline.

The rebalancing of the whole concession.

Martina Recchia: The rebalancing of the economic equilibrium of the concession will most probably be respected in Argentina and that's what we expect by the end of the year.

Speaker Change: Hum.

Speaker Change: The rebalancing of economic.

Speaker Change: Zero of the concession will most probably be reflective in Paris in Argentina, and that's what we expect by the end of the year, but prior to that we expect.

Martina Recchia: But prior to that, we expect the regulatory agency to do a required catch up on the domestic tariffs that are lagging behind due to the evaluation in Argentina.

The Deregulatory agency too to do what's required to catch up on the domestic.

Martin Bonnarens: Intrafic was adjusting for the discontinuation of the metallur per concession earlier in the year.

Martina Marquian: Now discussing year on year trend by country of operations. In Italy we saw steady passenger traffic growth up for 10% year on year. This positive performance was mainly due to a 17% rise in international traffic and mid single digit growth in domestic traffic. This positive trend continued into July benefiting from the summer season with traffic growing 5.5% versus the same month of last year. In Uruguay, the opening of new routes and frequencies by Jesmar and Sky Airlines in May contributed to the 11% increase in traffic in the quarter.

Martin Bonnarens: Revenue per passenger, IFA 12 expanded 9% year over year, outpacing revenue growth, underscoring our ability to adapt to challenging market dynamics.

Speaker Change: That are lagging behind due to devaluation in Argentina and that has to happen.

Martina Recchia: And that has to happen in a shorter time than the required working calculations needed to do the rebalancing of the economic equilibrium.

Martin Bonnarens: And Jorge will discuss this more in detail shortly.

Speaker Change: In a shorter time than that.

Speaker Change: Working calculations needed to really why that's not be economic it could be real.

Martina Recchia: But we expect that to happen first.

Martina Marquian: So we expect that to happen first.

Fernanda Richia: Perfect.

Speaker Change: But we expect that to happen first.

Speaker: So thank you very much.

Speaker Change: Perfect. Thank you very much.

Fernanda Richia: Thank you very much.

Speaker Change: Yeah.

Fernanda Richia: Thank you.

Operator: Thank you. And there are no further questions at this time.

Operator: And there are no further questions at this time.

Speaker Change: Thank you.

Martina Recchia: I will turn the call back over to the presenters for closing remarks.

Speaker Change: And there are no further questions at this time I will turn the call back closer to the presenter for closing remarks.

Speaker: I will turn the call back over to the presenters for closing remarks. I'd like to thank everybody for your interest in our company and remind you that our investor relations team is always available to engage and answer your calls. Thank you very much, and have a very nice rest of the day.

Martina Recchia: I'd like to thank everybody for your interest in our company and remind you that our investor relations team is always available to engage and answer your calls.

Speaker Change: Yeah.

Speaker Change: I like to thank everybody for your interest in our company.

Speaker Change: I remind you that our investor relations team is always available to engage and that's what you're of course.

Martina Marquian: This positive trend extended into July with traffic growing 15% year on year. In Argentina, international traffic was up 9% in the quarter delivered by the resumption of more routes and frequencies. This very good performance, however, was more than upset by a contraction of 19% in domestic traffic. In addition to facing difficult problems as last year's travel benefited from the previaje government intentives to boost local tourism, domestic traffic was also impacted by the temporary suspension of several routes and trade cancellations as the stationary environment dumped demand for travel.

Martina Recchia: Thank you very much and have a very nice rest of the day.

Martina Recchia: Bye-bye.

Thank you very much and have a very nice rest of the day bye bye.

Operator: Ladies and gentlemen, this concludes your conference call for today.

Speaker: Bye-bye.

Operator: You may now disconnect.

Operator: Ladies and gentlemen, this concludes your conference call for today.

Speaker Change: Ladies and gentlemen. This concludes your conference call for today you may now disconnect. Thank you.

Martin Bonnarens: EBDA, IFA 12 declined, 9% year over year, largely due to the macro economic challenges that Argentina is facing, which affected our domestic traffic and operational costs.

Speaker Change: [music].

Martin Bonnarens: Moreover, due different sales were lower this year, as last year's figures were officially high due to the gap between the official effects rates and the parallel one.

Speaker Change: Okay.

Speaker Change: [music].

Martina Marquian: As a reminder, while domestic traffic comprises around two-thirds of total traffic in the country, over 90% of passenger use fees are generated by international traffic and are fooling to US dollars. In July, we saw improved performance within the national traffic growing for 10% and domestic traffic declining 12%. Traffic in Armenia, within the larger class, declining in the low single visits as the market continues to face very strong coms versus last year.

Martina Marquian: In July, total traffic decreased by 2% year on year. In Ecuador, total traffic declined by mixing all visits. International traffic growth of 4% was more than upset by a decline of 13% in domestic travel following the exit of a local airline in October last year. This trend continues into July with a total traffic decline in 5% year-on-year. In Brazil, as mentioned, traffic flow continues to be significantly impacted by financial and earned activation in one of the local airlines, causing a lack of supply. This dynamic resulted in a 3% decline in passenger traffic when excluding Natal Airports. In July, we saw an improved performance with transit passenger traffic growing 15% and domestic traffic decreasing 5% excluding Natal.

Martina Marquian: Turning to slide 5. Cargo volumes continue, the sustained recovery trend increasing in the mid-single-digit year-on-year. Argentina equaled in Armenia, which accounted for over 70% of Cargo volumes remain the main driver behind these good performance, while Italy and Uruguay posted slight declines. However, despite the volume growth, Cargo revenues declined 13% year-on-year, primarily due to lower revenues in Argentina. This decline was caused by a reduction[inaudible] Regarding specific cost items, we experienced higher amounting of expenses to gather with higher services and fees. Importantly, we remain focused on keeping stringent cost controls in Argentina, consistent with our commitment to maintain an extreme line cost structure.

Martin Bonnarens: By contrast, our robust results in Italy and Euro-Y empathize the strength and resilience of our operations in those markets.

Jorge Filho: Moving on to profitability on light 8th. Adjusted the data, Exific 12 was 136 million dollars. In 9% year-on-year decline, mainly explained by the performance we saw in Argentina. This was partially upset by another quarter of double-gifted growth in adjusted data in both Italy and Uruguay. We are very encouraged by the ongoing momentum in these two countries and the corresponding financial performance, which included solid margin expansion during the quarter. Tendon fees like 9 and a P, by our strong cash flow generation, we closed the quarter with a total equity position of 500 and 49 million dollars. At 91 million dollars, one compared to year-end, 2020, with all of our operating subsidiaries reporting positive cash flow from operating activities during the first half of the year except Ecuador.

Jorge Filho: Moving on to the debt and maturity profile on light 10. Our net leverage ratio is to that 1.1 times at quarter end, down from 1.4 times at year end and 1.2 times as of March 2024. The reduction in net leverage resulted from the amortization of scheduled principal payments, early redemption to Argentina and Armenia, as well as cash generation. In Italy, we successfully refinered all our outstanding debt into one single facility. This allowed us to extend the average life of our debt while raising additional funds of 60 million euros for a copyc program at Pita Airport.

Martin Bonnarens: Furthermore, our strong natural generation and solid balance with a record low leverage ratio demonstrates our commitment to sustaining finance and stability when maintaining the flexibility needed to support growth initiatives.

Martina Marquian: Wrapping up on Mayan, I would like to underscore the strength and resilience of our business. We achieved high single-budget growth in revenues for five strong cash flow generation and we continue to maintain our robust balance sheet and healthy debt to fly. We are accomplishing all of these even as we continue to face some heavy international failures.

Martina Marquian: I will now hand the call back to Martin, who will provide closing remarks and discuss our view for the reminder of the year. Before opening the line for questions, please turn to slide 12 to wrap our prepared remarks. Revenues remain resilient. Despite the mid single digit decline in comparable traffic, as our geographic diversification mitigated the challenging macro conditions in Argentina and ever contains in Brazil. We are also pleased to see revenue per passenger out face revenue growth, underscoring or ability to adapt to challenging market dynamics. While if it does, exit 12 decline, solid cash flow generation could have explained to our balance sheet. We achieve another record-know, net-level ad ratio, demonstrating our commitment to financial discipline.

Martina Marquian: On the strategic growth front, we are actively negotiating a new 400 million gap-explan with the Armenian government and seeking approval for the new master plan for Florence Airport in Italy. Additionally, we are assessing expansion projects across values geographies in line with our strategic roadmap to pursue value aviation. Looking ahead, on the operations front, we expect the positive dynamics in Uruguay and Italy to continue throughout the year. In Argentina, we expect domestic traffic to remain soft, impacted by the persisting recession.

Martin Bonnarens: Now moving on to page 4, for a review of Patricio El Traffic Trends. Total Patricio El Traffic in the quarter was negatively impacted by weak demand from domestic travel in Argentina as the market was challenging for reasons I just mentioned. By contrast, international traffic in Argentina continued to perform well, further supported by continued expansion in traffic in Italy and in Uruguay. On a comparable basis and excluding Natal Airport, a concession we exited in February as previously disclosed, passenger traffic declined 5% year on year driven by a 15% contraction in domestic traffic mainly driven by Argentina, while international traffic increased 8% in the period.

Martin Bonnarens: Now discussing year on year trend by country of operations. In Italy we saw steady passenger traffic growth up for 10% year on year. This positive performance was mainly due to a 17% rise in international traffic and mid single digit growth in domestic traffic. This positive trend continued into July benefiting from the summer season with traffic growing 5.5% versus the same month of last year.

Martina Marquian: Although we are pleased to see slight better traffic figures in July. Moreover, Argentina has strengthened its regulatory framework through recent open-size bilateral agreements with Brazil, Chile, Ecuador, Peru, Uruguay, Panama, Canada, and Paraguay. These agreements are designed to enhance the flexibility and inject greater dynamism into the countries and our different activities. While in the financial front, we remain committed to delivering strong results, maintaining a healthy balance sheet and creating value for our shareholders. By doing so, we have the financial flexibility to support our growth initiatives. Thank you for your continued support and confidence in our company.

Operator: This ends our prepared remarks. We are ready to take your questions. Operator, please open the line for questions. Thank you, ladies and gentlemen. If you'd like to ask a question, please press star one. To withdraw your question, press star two. One moment please for your first question.

Operator: Your first question comes from Adirandro Dumichele from Jeffries.

Alejandro DeMichelis: Please go ahead. Yes, good morning guys. Thank you very much for taking my questions. Your questions are made, please.

Martin Bonnarens: In Uruguay, the opening of new routes and frequencies by Jesmar and Sky Airlines in May contributed to the 11% increase in traffic in the quarter. This positive trend extended into July with traffic growing 15% year on year.

Martina Marquian: The first one, Martin, maybe you can update on how you see discussions with the different airlines regarding potential new routes into the country or higher frequencies.

Martina Marquian: Now that is really the deregulation of the sector has accelerated and then the second question is made for Jorge is how you see the development of the cost-based, particularly in Argentina, for the rest of the year. Thank you, Alejandro, for a question. And regarding the effects on traffic of the deregulation that the government is pursuing and moreover the amount of bilateral agreements open in the skies of Argentina to other countries, we are very, very positive.

Martin Bonnarens: In Argentina, international traffic was up 9% in the quarter delivered by the resumption of more routes and frequencies. This very good performance, however, was more than upset by a contraction of 19% in domestic traffic.

Martina Marquian: There are many studies demonstrating that in short medium and long term, these are very deep effects on the healthy growth in traffic numbers. So this is what we expect. It's probably not going to happen one day to the next because airlines have to understand and adapt and have the availability of work to do this. But the amount of flexibility that this gives to regional and local airlines. To tap on the Argentina market, we think it's very, very positive news, and that it's not only shorter news, but also for the medium and long term. Okay, thank you.

Martin Bonnarens: In addition to facing difficult problems as last year's travel benefited from the previaje government intentives to boost local tourism, domestic traffic was also impacted by the temporary suspension of several routes and trade cancellations as the stationary environment dumped demand for travel.

Jorge Filho: Okay, so on the coast front, and I guess your question was targeted towards Argentina, we see the same trend into the third quarter, and thereafter, softening. You know, bear in mind that the first quarter, you know, we managed to withhold price adjustments on suppliers and, among other things, and our causes to appear in general.

Martin Bonnarens: As a reminder, while domestic traffic comprises around two-thirds of total traffic in the country, over 90% of passenger use fees are generated by international traffic and are fooling to US dollars.

Martin Bonnarens: In July, we saw improved performance within the national traffic growing for 10% and domestic traffic declining 12%.

Jorge Filho: But at some point in time, we had to accept given the inflation environment, and we saw the same scenario, or we have seen the same scenario into the third quarter, and we expect thereafter to soften. Okay, that's very clear. Thank you.

Operator: Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star one.

Operator: Your next question comes from J. Singh, from city, please go ahead. Hey, thanks for taking my question, darling, going for Stephen Trent here today, since one of my other questions has already been answered, the other thing I want to ask was, besides from Nigeria and Armenia, what are the investment opportunities do you see, and any of them happen to be in conjunction with Dubai?

Martin Bonnarens: Traffic in Armenia, within the larger class, declining in the low single visits as the market continues to face very strong coms versus last year. In July, total traffic decreased by 2% year on year.

Martin Bonnarens: In Ecuador, total traffic declined by mixing all visits. International traffic growth of 4% was more than upset by a decline of 13% in domestic travel following the exit of a local airline in October last year. This trend continues into July with a total traffic decline in 5% year-on-year.

Martin Bonnarens: In Brazil, as mentioned, traffic flow continues to be significantly impacted by financial and earned activation in one of the local airlines, causing a lack of supply. This dynamic resulted in a 3% decline in passenger traffic when excluding Natal Airports.

Martina Marquian: Thanks. Hi, thank you for your question. We are from in connection with opportunities that are public. We recently submitted a proposal for the London Airport in Angola as part of the public tender being carried out by the government, and are submitted pre-qualification documents in Saudi Arabia. However, there are a number of other situations we are actively looking at that we will be announcing if and when they become more concrete or official.

Martin Bonnarens: In July, we saw an improved performance with transit passenger traffic growing 15% and domestic traffic decreasing 5% excluding Natal.

Martin Bonnarens: Turning to slide 5.

Martin Bonnarens: Cargo volumes continue, the sustained recovery trend increasing in the mid-single-digit year-on-year.

Martina Marquian: Thank you very much.

Fernanda Recchia: Here next question comes from Fernanda Richia from VPG, please go ahead. Hello, thank you for taking my question. Two here from our side.

Martin Bonnarens: Argentina equaled in Armenia, which accounted for over 70% of Cargo volumes remain the main driver behind these good performance, while Italy and Uruguay posted slight declines.

Martina Marquian: The first one, Jorge Martini, if you could please provide an update on the tariff discussion on Argentina on the domestic side. How is the negotiation for a rebalance in progressing if you have any update on this mayor? And second, if you could please provide an update on the master plan discussion on Italy, it will be very helpful.

Martina Marquian: Thank you. Thank you, Fernanda, for your interest in your question, Martini here. Well, on the tariff in Argentina, we expect the domestic tariff to be adjusted soon because It's lagging behind the exchange rate, but we have to also very mind that the board of the regulatory agency was formed not long ago by the government, so we expect to see some adjustment times since the new authorities took over to the actual announcement of the cashing up of that domestic tariff has to do in Argentina.

Martin Bonnarens: However, despite the volume growth, Cargo revenues declined 13% year-on-year, primarily due to lower revenues in Argentina.

Martin Bonnarens: This decline was caused by a reduction[inaudible] Regarding specific cost items, we experienced higher amounting of expenses to gather with higher services and fees.

Martina Marquian: We also expect the re-balance of the whole economic equilibrium of the concession to be done at some point by this new authorities. We are already late on that, but hopefully before the end of the year we will have that exercise done. This is what we expect at least for now. And we are moving on a tight schedule on a back-and-forth with questions and documentation with the different agencies and the commission that needs to give the green light in terms of environmental approval for the ambassador plan to go ahead.

Martin Bonnarens: Importantly, we remain focused on keeping stringent cost controls in Argentina, consistent with our commitment to maintain an extreme line cost structure.

Martin Bonnarens: Moving on to profitability on light 8th.

Martina Marquian: We are working on the last round of questions with the deadline for October and then we need to see if there is another round of questions or the agency is ready to wrap up the process with our replies. But it's an active process and it's moving forward. Thank you, Martin. Just to clarify, what you're expecting for the end of this year is just the tariff we're balancing in Argentina or the re-balance for the whole concession.

Martin Bonnarens: Adjusted the data, Exific 12 was 136 million dollars. In 9% year-on-year decline, mainly explained by the performance we saw in Argentina. This was partially upset by another quarter of double-gifted growth in adjusted data in both Italy and Uruguay. We are very encouraged by the ongoing momentum in these two countries and the corresponding financial performance, which included solid margin expansion during the quarter.

Martin Bonnarens: Tendon fees like 9 and a P, by our strong cash flow generation, we closed the quarter with a total equity position of 500 and 49 million dollars.

Martina Marquian: The re-balance of the economic equilibrium of the concession will most probably be respected in Tariff in Argentina and that's what we expect by the end of the year. But prior to that, we expect the regulatory agency to do a required catch-up on the domestic tariff that are lagging behind due to the evaluation in Argentina and that has to happen in a shorter time than the required working calculations needed to do a re-balance of the economic equilibrium. So we expect that to happen first. So thank you very much. Thank you. And there are no further questions at this time.

Martin Bonnarens: At 91 million dollars, one compared to year-end, 2020, with all of our operating subsidiaries reporting positive cash flow from operating activities during the first half of the year except Ecuador.

Martin Bonnarens: Moving on to the debt and maturity profile on light 10. Our net leverage ratio is to that 1.1 times at quarter end, down from 1.4 times at year end and 1.2 times as of March 2024. The reduction in net leverage resulted from the amortization of scheduled principal payments, early redemption to Argentina and Armenia, as well as cash generation.

Martin Bonnarens: In Italy, we successfully refinered all our outstanding debt into one single facility. This allowed us to extend the average life of our debt while raising additional funds of 60 million euros for a copyc program at Pita Airport.

Martin Bonnarens: Wrapping up on Mayan, I would like to underscore the strength and resilience of our business.

Patricio Esnaola: I will turn the call back over to the presenters for closing remarks. I'd like to thank everybody for your interest in our company and remind you that our investor relations team is always available to engage and answer your calls. Thank you very much and have a very nice rest of the day. Bye-bye.

Martin Bonnarens: We achieved high single-budget growth in revenues for five strong cash flow generation and we continue to maintain our robust balance sheet and healthy debt to fly.

Martin Bonnarens: We are accomplishing all of these even as we continue to face some heavy international failures.

Martin Bonnarens: I will now hand the call back to Martin, who will provide closing remarks and discuss our view for the reminder of the year.

Operator: Ladies and gentlemen, this concludes your conference call for today.

Martin Bonnarens: Before opening the line for questions, please turn to slide 12 to wrap our prepared remarks.

Martin Bonnarens: Revenues remain resilient.

Martin Bonnarens: Despite the mid single digit decline in comparable traffic, as our geographic diversification mitigated the challenging macro conditions in Argentina and ever contains in Brazil.

Martin Bonnarens: We are also pleased to see revenue per passenger out face revenue growth, underscoring or ability to adapt to challenging market dynamics.

Martin Bonnarens: While if it does, exit 12 decline, solid cash flow generation could have explained to our balance sheet.

Martin Bonnarens: We achieve another record-know, net-level ad ratio, demonstrating our commitment to financial discipline.

Martin Bonnarens: On the strategic growth front, we are actively negotiating a new 400 million gap-explan with the Armenian government and seeking approval for the new master plan for Florence Airport in Italy.

Martin Bonnarens: Additionally, we are assessing expansion projects across values geographies in line with our strategic roadmap to pursue value aviation.

Martin Bonnarens: Looking ahead, on the operations front, we expect the positive dynamics in Uruguay and Italy to continue throughout the year.

Martin Bonnarens: In Argentina, we expect domestic traffic to remain soft, impacted by the persisting recession. Although we are pleased to see slight better traffic figures in July.

Martin Bonnarens: Moreover, Argentina has strengthened its regulatory framework through recent open-size bilateral agreements with Brazil, Chile, Ecuador, Peru, Uruguay, Panama, Canada, and Paraguay.

Martin Bonnarens: These agreements are designed to enhance the flexibility and inject greater dynamism into the countries and our different activities.

Martin Bonnarens: While in the financial front, we remain committed to delivering strong results, maintaining a healthy balance sheet and creating value for our shareholders. By doing so, we have the financial flexibility to support our growth initiatives.

Martin Bonnarens: Thank you for your continued support and confidence in our company.

Martin Bonnarens: This ends our prepared remarks.

Operator: We are ready to take your questions.

Operator: Operator, please open the line for questions.

Operator: Thank you, ladies and gentlemen.

Operator: If you'd like to ask a question, please press star one. To withdraw your question, press star two.

Operator: One moment please for your first question.

Alejandro DeMichelis: Your first question comes from Adirandro Dumichele from Jeffries.

Alejandro DeMichelis: Please go ahead.

Alejandro DeMichelis: Yes, good morning guys.

Alejandro DeMichelis: Thank you very much for taking my questions.

Alejandro DeMichelis: Your questions are made, please.

Martin Bonnarens: The first one, Martin, maybe you can update on how you see discussions with the different airlines regarding potential new routes into the country or higher frequencies.

Jorge Filho: Now that is really the deregulation of the sector has accelerated and then the second question is made for Jorge is how you see the development of the cost-based, particularly in Argentina, for the rest of the year.

Jorge Filho: Thank you, Alejandro, for a question.

Martin Bonnarens: And regarding the effects on traffic of the deregulation that the government is pursuing and moreover the amount of bilateral agreements open in the skies of Argentina to other countries, we are very, very positive. There are many studies demonstrating that in short medium and long term, these are very deep effects on the healthy growth in traffic numbers.

Martin Bonnarens: So this is what we expect.

Martin Bonnarens: It's probably not going to happen one day to the next because airlines have to understand and adapt and have the availability of work to do this.

Martin Bonnarens: But the amount of flexibility that this gives to regional and local airlines.

Martin Bonnarens: To tap on the Argentina market, we think it's very, very positive news, and that it's not only shorter news, but also for the medium and long term.

Martin Bonnarens: Okay, thank you.

Jorge Filho: Okay, so on the coast front, and I guess your question was targeted towards Argentina, we see the same trend into the third quarter, and thereafter, softening.

Jorge Filho: You know, bear in mind that the first quarter, you know, we managed to withhold price adjustments on suppliers and, among other things, and our causes to appear in general.

Jorge Filho: But at some point in time, we had to accept given the inflation environment, and we saw the same scenario, or we have seen the same scenario into the third quarter, and we expect thereafter to soften.

Jorge Filho: Okay, that's very clear.

Jorge Filho: Thank you.

Operator: Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star one.

Stephen Trent: Your next question comes from J.

Stephen Trent: Singh, from city, please go ahead.

Stephen Trent: Hey, thanks for taking my question, darling, going for Stephen Trent here today, since one of my other questions has already been answered, the other thing I want to ask was, besides from Nigeria and Armenia, what are the investment opportunities do you see, and any of them happen to be in conjunction with Dubai?

Martin Bonnarens: Thanks.

Martin Bonnarens: Hi, thank you for your question.

Martin Bonnarens: We are from in connection with opportunities that are public.

Martin Bonnarens: We recently submitted a proposal for the London Airport in Angola as part of the public tender being carried out by the government, and are submitted pre-qualification documents in Saudi Arabia.

Martin Bonnarens: However, there are a number of other situations we are actively looking at that we will be announcing if and when they become more concrete or official.

Martin Bonnarens: Thank you very much.

Fernanda Recchia: Here next question comes from Fernanda Richia from VPG, please go ahead.

Fernanda Recchia: Hello, thank you for taking my question.

Fernanda Recchia: Two here from our side.

Fernanda Recchia: The first one, Jorge Martini, if you could please provide an update on the tariff discussion on Argentina on the domestic side.

Fernanda Recchia: How is the negotiation for a rebalance in progressing if you have any update on this mayor?

Fernanda Recchia: And second, if you could please provide an update on the master plan discussion on Italy, it will be very helpful.

Fernanda Recchia: Thank you.

Martin Bonnarens: Thank you, Fernanda, for your interest in your question, Martini here.

Martin Bonnarens: Well, on the tariff in Argentina, we expect the domestic tariff to be adjusted soon because It's lagging behind the exchange rate, but we have to also very mind that the board of the regulatory agency was formed not long ago by the government, so we expect to see some adjustment times since the new authorities took over to the actual announcement of the cashing up of that domestic tariff has to do in Argentina.

Martin Bonnarens: We also expect the re-balance of the whole economic equilibrium of the concession to be done at some point by this new authorities.

Martin Bonnarens: We are already late on that, but hopefully before the end of the year we will have that exercise done.

Martin Bonnarens: This is what we expect at least for now.

Martin Bonnarens: And we are moving on a tight schedule on a back-and-forth with questions and documentation with the different agencies and the commission that needs to give the green light in terms of environmental approval for the ambassador plan to go ahead.

Martin Bonnarens: We are working on the last round of questions with the deadline for October and then we need to see if there is another round of questions or the agency is ready to wrap up the process with our replies. But it's an active process and it's moving forward.

Jorge Filho: Thank you, Martin.

Jorge Filho: Just to clarify, what you're expecting for the end of this year is just the tariff we're balancing in Argentina or the re-balance for the whole concession.

Jorge Filho: The re-balance of the economic equilibrium of the concession will most probably be respected in Tariff in Argentina and that's what we expect by the end of the year.

Jorge Filho: But prior to that, we expect the regulatory agency to do a required catch-up on the domestic tariff that are lagging behind due to the evaluation in Argentina and that has to happen in a shorter time than the required working calculations needed to do a re-balance of the economic equilibrium.

Jorge Filho: So we expect that to happen first.

Jorge Filho: So thank you very much.

Operator: Thank you.

Operator: And there are no further questions at this time.

Operator: I will turn the call back over to the presenters for closing remarks.

Operator: I'd like to thank everybody for your interest in our company and remind you that our investor relations team is always available to engage and answer your calls.

Operator: Thank you very much and have a very nice rest of the day.

Operator: Bye-bye.

Operator: Ladies and gentlemen, this concludes your conference call for today.