Q4 2024 Grupo Aeroportuario del Sureste SAB de CV Earnings Call
Melissa: Good day, ladies and gentlemen, and welcome to a CIRS fourth quarter 2024 results conference call. My name is Melissa, and I'll be your operator. At this time, all participants are in a listen-only mode. We will conduct a question and answer session toward the end of today's conference.
Speaker Change: Before I begin discussing our results let me remind you that certain statements made during the call today may constitute forward looking statements, which are based on current management expectations and beliefs and are subject to several basic and uncertainties that could cause actual.
Melissa: Actual results to differ materially.
Melissa: Including factors that would be the outcome.
Our company's control.
Melissa: Have you seen on big deals about that way.
Melissa: What are the <unk> 'twenty 'twenty four year results can be found in our press release, which was issued yesterday after market close and it's available on our website in the Investor Relations section.
Melissa: Okay.
Melissa: Following my presentation I will be available for Q&A.
Melissa: As usual all comparison these calls on the school will be year on year and figure figures are expressed in Mexican pesos unless specified otherwise.
Melissa: Let me start with a review.
Melissa: Louis Operation performance for the quarter.
Melissa: Passenger traffic was basically flat year over year down, 3% and 17.
Melissa: 7 million passengers.
Melissa: Our full year close.
Melissa: 71 million passengers traveling through our airports in 2024.
Melissa: Sustained growth in Colombia, and Puerto Rico larger Lee L shaped weaker passenger traffic in Mexico.
Melissa: No.
Melissa: Taking a deeper look at Jetblue.
Melissa: <unk> co.
Colombia remained our strongest performance Mark.
Melissa: With passenger traffic decreasing in the Mi continues year on year.
Melissa: Supported by the February comps following the suspension of to look at countries in there you can pretty pretty.
Melissa: Driving demand remains solid with international topic for 29%.
Melissa: Mystic traffic rising 7% that's at Yankee candle, the 10 airlines continued to be steady.
Melissa: Most last year.
Melissa: Looking at him with big traffic tends to be normalizing in the first quarter of the year towards the.
Melissa: The more sustainable living through 2023.
Melissa: What political work the mixed market and senior to past quarters maintained its positive trend with total traffic.
10% supported by strong building industrial traffic up 29%, while domestic traffic was up 7%.
Melissa: We expect truck market to normalize after benefiting from leasing operations by Frontier Airlines a year ago.
Melissa: Lastly performance in Mexico remains so absolutely debate declining 8% year on year with both international and domestic traffic down in the high single digits.
Melissa: Moving next toward deals underperforming international traffic continued to experience year on year declines from all regions during the quarter.
Melissa: Specifically traffic from Europe decreased six 4% from kind of that receive up one 6% from the U S eight 8% and South America by 11, 1%.
Melissa: With respect to domestic traffic the ongoing preference.
Melissa: The restrictions to visit with the air traffic capacity constraints in Mexico City Airport.
Melissa: In effect since early 2024.
Melissa: Alright constraining traffic flows. In addition, Cancun airport is slightly impacted by the initial ramp up phase of new to them.
Melissa: Whom airports capture.
Melissa: One 2 million passengers from last year and is expected to capture another one 7 million this year compared to the 34 million passengers traveling.
Melissa: Airport last year.
Melissa: Looking ahead, we expect to normalize in 2026 as preference would be effect is reduced and to move and you show up ramp up competes.
Melissa: That point, we anticipate passenger traffic.
Melissa: Airport and from the airport to grow at the pace consistent with each region dynamics.
Melissa: Now as we turn to the P&L.
Melissa: Will that all references to revenue and cost figures are excluding.
Melissa: Sure.
Melissa: Total revenues for the quarter increased 19% year on year to seven.
Melissa: 4 billion passes reflecting strong performance across all three regions.
Melissa: Again, once again really growth posting a 30% increase in top line revenue supported by reaching passenger traffic Mexican.
Melissa: Mexico, and Puerto Rico also ladybird selling crystals with revenue grow in the low teens.
Melissa: Mexico, which accounted for 72% of total revenues posted a mid teen increase in the top line performance.
Melissa: Growth was primarily driven by.
Melissa: Low, 20%, increasing that were not to build revenues.
Melissa: Following the recent tariff adjustments well no no no not can revenues rose in the low single digits.
Melissa: Puerto Rico represented 15% of total revenues and believer in Hy 'twenty growth supported by strong increase in both I don't know because I don't have to collect revenue.
Melissa: Further boosted by the foreign exchange benefit from the weaker peso.
Melissa: Colombia contributing 12% of total.
Melissa: Revenues to record the proposed 31% increasing top line revenue this.
Melissa: This group was fueled by strong performance in both of them.
Melissa: Consistent with.
Melissa: With revenues rising in the low Thirty's both segments benefited from continued recovery in the domestic and international traffic.
Melissa: Colombia.
Melissa: As part of the strategy.
Melissa: And then commercial offerings, we opened 45, new commercial spaces over the last 12 months.
Melissa: These included 12 locations in Mexico financing, Puerto Rico, and 28 in Colombia.
Melissa: So vishal.
Melissa: So revenues grew in the high single digits.
Melissa: Puerto Rico, posting a 26% increase columbia, delivering strong year over year growth of 31%.
Melissa: In Mexico commercial revenues drove a low single digit increase marking a positive shift from the previous trend.
Melissa: On a per passenger basis commercial revenue grew in the high single digits year on year, reaching 130 branches in the quarter. The solid performance was supported by the growth across all three markets.
Speaker Change: What are the Rico, Colombia commercial revenues for passenger routes in the mid teens with Puerto Rico benefited from a stronger U S dollar and Colombia from new openings.
Speaker Change: Mexico also posted solid growth in the low single digits to 158 vessels per passenger.
Speaker Change: Passenger also benefiting from the FX impact.
Speaker Change: On the cost front total expenses increased 13% year on year in Mexico.
Speaker Change: At 12%, primarily reflecting the 80% increase in the concession fees mandated by the Mexican government.
Speaker Change: And the 20% in minimum wages.
Speaker Change: Mainly affecting cleaning and security services.
Speaker Change: Since January the first of last year.
Speaker Change: These impacts were.
Speaker Change: Offset by a 50% reduction in things and assistance fees.
Speaker Change: In Puerto Rico cost increase in the high teens.
Speaker Change: Mainly by the depreciation of the Mexican peso against the U S builder, which Columbia called roads.
Speaker Change: Just 7% benefiting from out of Brazil in the provision for maintenance and consolidation.
Speaker Change: <unk> helped to mitigate cost pressures.
Speaker Change: Consolidated EBITDA was up 23% year on year to over 5 billion pesos in the quarter, while adjusted EBITDA margin, which includes excludes construction improved 200 basis points to $69 seven.
Speaker Change: <unk>.
Speaker Change: Driven by its strong E gift.
Gift cards can be Colombia, Colombia reported the strongest performance with <unk> up 61%.
Speaker Change: Puerto Rico with a 39% increase.
Speaker Change: While Mexico posted an increase of 70% in EBITDA.
Speaker Change: Our balance sheet remains robust closing the quarter with cash and cash equivalent well the billion dollars really debt to last 12 months adjusted EBITDA remaining like the negative <unk> three times.
Speaker Change: You need a quarter capital expenditure spend their rate of return $2 5 billion and accounting for half of it will be a.
Speaker Change: Total $4 4 billion in 2024.
Speaker Change: Named projects during the quarter included the vertical production and expansion.
Speaker Change: One I think when airport as well as expansion of opinion and Oaxaca airports.
Speaker Change: With the Rico expansion words, I couldn't go deep and runway remodeling remains on track.
Speaker Change: Mandar all the construction activities will take place outside the operational areas to ensure no disruption to airport operations.
Speaker Change: We expect investments to gradually ramp up capex to this year as we advance in the key infrastructure projects.
Speaker Change: Those projects include the construction of an expansion with them and they want to pick when airport.
Speaker Change: We've estimated completion.
Speaker Change: In 2026 when terminal four is scheduled for completion by 2028.
Speaker Change: In year, two we suspect to see operational improvements once they're you know one is completed helping to alleviate bottlenecks on the none no matter and not become side of the business.
Speaker Change: These engagements will also optimize the processing of traffic to and from South America.
Speaker Change: Further supporting revenue generation opportunities.
Speaker Change: Wrapping up we closed 2024 with another strong quarter as solid full year performance. Despite the navigating industry challenges. So just prepping the engine issue and capacity reductions in Mexico City.
Speaker Change: Net majority income for the year rose, 33% year on year to $13 6 billion supported by a resilient operational performance and disciplined execution.
Speaker Change: Our results also benefited from a 2 billion foreign exchange gain.
Speaker Change: Driven by the depreciation of the Mexican peso against the U S dollar compared to the ethics gained nearly 840 million in 2023.
Speaker Change: We remained focus on our strengths.
Speaker Change: Airport network through strategic infrastructure investments that in case, the passenger experience expand commercial opportunities support long term growth and create value for shareholders.
Speaker Change: We achieved substantial progress on our strategy.
Speaker Change: Objectives.
Speaker Change: And have a solid foundation in place, which positions us for continued success in 2025 I'd be junk.
Speaker Change: My presentation remarks, Lisa.
Speaker Change: Please open the floor for questions.
Speaker Change: Thank you again, ladies and gentlemen, it is star then one for questions and again. Please make sure. Your mute function is turned off or the handset has picked up there's no question that corresponding digits.
Speaker Change: Our first question comes from the line of where Adolfo Ramos with Bradesco BBA. Please proceed with your question.
Adolfo Ramos: Thank you and good morning. Thanks for taking my question I have a couple if I. If I may can you share with us your traffic growth expectation for for this year and whether you're seeing any pickup in route openings or network development by airlines, specifically on the Mexico side.
And then the second question is on the commercial revenue per passenger I mean, the Mexican peso depreciation certainly helps on that front, but all all else constant do you expect that traffic to loom. These 3 million passengers that you expect now this year on a on a full annualized basis.
Adolfo Ramos: So kind of a lies.
Your your commercial revenue per passenger I don't know if you. If you if you see a higher spend per passenger on that particular passenger that was kind of like strong to them.
Adolfo Ramos: Yeah.
Speaker Change: Thank you good morning, and indications of the Mexican traffic, we will continue suffer.
Adolfo Ramos: Suffering from the restriction in capacity in Mexico City.
Speaker Change: The problem, the Pratt and Whitney.
Speaker Change: I'm sure that you have Kurt what bullets have said yesterday and basically they're expecting to have or to continue with the PREPA with me.
Speaker Change: Engine problem during next year.
Speaker Change: Of course.
Speaker Change: They have been receiving.
Speaker Change: The airplanes in accordance with the <unk>.
Speaker Change: Requested.
Speaker Change: Yeah.
Speaker Change: Airplanes, they have done in the past.
Speaker Change: So it's true that we would suffer from some aircrafts to be on the ground soldier.
Speaker Change: With me, but the situation is improving I would say, yes, we will be affected but not as we were affected last year.
Speaker Change: I hope that's fine.
Speaker Change: The end of the third quarter.
Speaker Change: Jason will improve in that front as well in the case of the restriction of Mexico City Airport.
Speaker Change: In terms of commercial revenues.
Speaker Change: He said during the initial remarks, we are still suffering in the case of terminal two.
Speaker Change: Cool.
Speaker Change: We know that we are losing some commercial opportunities there and we are expecting those to improve once we open terminal one we expect will contaminate the one at the end of the second quarter couldn't put six.
Speaker Change: So for the moment, we don't see a decrease but we know that we are losing commercial opportunities.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thank you. Our next question comes from the line of Pablo.
Speaker Change: Please proceed with your question.
Pablo: Hey, good morning, I have two questions one a follow up to our pumps and we have seen some press about the capacity of the Mexico City Airport should increase this year.
Pablo: Or something on that front and the other one is from dividends I don't know if you have some.
Pablo: Patients, what's your propulsion mix shareholders' meeting.
Pablo: Mhm.
Pablo: The kitchen of the capacity of the restriction and they get past the Mexico City airports from 52 to 43 Atms per hour.
Pablo: And what I have seen in the news recently is that the Mexico City.
Pablo: Airport manager.
Pablo: Is open to eliminate this restriction and probably to go back to the 52 remember that were coming from the 63.
Pablo: So.
Pablo: And that's why I'm expecting these to be.
Pablo: Lifted by the end of the quarter.
Also remember that next year, we have Oh, Mexico City will receive some passengers due to the World Cup.
Pablo: That will take place in June.
Pablo: Next year.
Pablo: So I hope that the government will.
Pablo: Yeah.
Pablo: <unk> restriction by the Sip of water.
Pablo: And also as a bullet to discuss more planes I'm sure that they will put some pressure on this front leakage of dividends.
Speaker Change: Yeah I have.
Pablo: To be put into my proposal.
Speaker Change: Will be sent to the board of directors.
Speaker Change: And I'm sure that you will hear from these on March 14th.
Speaker Change: That's what I can say for the moment.
Speaker Change: Perfect.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Thank you. Our next question comes from the line of Stephen Trent with Citi. Please proceed with your question.
Speaker Change: Yeah.
Stephen Trent: Thank you very much for taking my question Adolfo.
Adolfo Ramos: Good morning.
Stephen Trent: I know that there's certainly there's a lot of.
Stephen Trent: Political rhetoric at the moment in North America.
Stephen Trent: And we've of course seen some currency movements, which which you've mentioned.
Stephen Trent: Are you seeing any nuances in Europe.
Stephen Trent: International traffic flow for example.
Stephen Trent: Can you against visiting Mexico, more frequently than you expected and maybe some of these.
Stephen Trent: When your stocks are no longer going to Disney world or something like that any sort of a pivot.
Stephen Trent: Pivots that you've noticed.
Stephen Trent: Well.
Stephen Trent: I mean I'm sure that you have heard my remarks or in the case of international traffic for the quarter. All divisions were negative and it gives them Canadians there were negative <unk>, 6%.
Stephen Trent: It is almost flat I would say.
Stephen Trent: I don't see any change.
Stephen Trent: Due to the situation in the U S. During the last quarter.
Stephen Trent: The traffic was weaker.
Stephen Trent: Of course unique to understand that some of these traffic is going to look to last year.
Well, it's around $1 2 million passenger traffic, having 75% of these western U S.
Stephen Trent: So if you make the math.
Stephen Trent: That's basically what we lose.
Stephen Trent: Losing.
Stephen Trent: In terms of.
Stephen Trent: The U S traffic.
Stephen Trent: And Indians are not so much on the other let's say 20% of its Mexico's domestic truck right.
Stephen Trent: But no I have not seen any changes.
Stephen Trent: Due to the.
Stephen Trent: The new politics in the U S.
Speaker Change: I appreciate that and just one other quick follow up I wasn't sure if I if I heard you.
Speaker Change: But are you getting or do you expect to get any.
Speaker Change: Meaningful traffic flow out of Philippe Angeles.
Speaker Change: For example.
Speaker Change: <unk> already is doing not make any adjustment in Benito Juarez air traffic movements.
Speaker Change: Well in the case of the IPR.
Speaker Change: Basically the traffic to and from the Moon and I would say, even the second place to conclude no most of the traffic.
Speaker Change: It's been managed by vivo.
We buy it directly to the Moon.
Speaker Change: Well, so maybe kind of islands, it's having some flying for that as well.
Speaker Change:
Speaker Change: The airport is it's growing of course because of the restriction in Mexico City Airport.
Speaker Change: And.
Speaker Change: I hope that the restriction is lifted we would have some some benefit there from the lines flowing directly to conclude.
Stephen Trent: Okay very helpful. Thanks Adolfo.
Adolfo Ramos: Youre welcome.
Speaker Change: Thank you. Our next question comes from the line of Pablo months of ice with Barclays. Please proceed with your question.
Adolfo Ramos: Hi.
Speaker Change: Thanks for taking my question.
Adolfo Ramos: Just wanted to learn a little bit more.
Adolfo Ramos: If you had any conversations with feedback.
Adolfo Ramos: Particularly from U S carriers.
Adolfo Ramos: Capacity expansion plans.
Adolfo Ramos: For the second half.
Adolfo Ramos: Thank you.
Adolfo Ramos: Yeah.
Adolfo Ramos: Well, we are in the process to receive.
Adolfo Ramos: Yeah.
Adolfo Ramos: The summer.
Adolfo Ramos: <unk> seen some schedule.
Adolfo Ramos: Sure.
Adolfo Ramos: That should be received I would say in the coming weeks. So for the moment, we do not have visibility.
Adolfo Ramos: For the for the summer season.
Adolfo Ramos: Perfect.
Adolfo Ramos: Second question, if I may on the commercial revenues once you do the works that.
Adolfo Ramos: I expect it to be done.
Adolfo Ramos: Is there any target on commercial revenues from <unk>.
Adolfo Ramos: I think that you are estimating.
Adolfo Ramos: Well there is no there is no specific number.
Adolfo Ramos: I would say.
Adolfo Ramos: And we used to say internally that it's a moving target.
Adolfo Ramos: Always want more.
Adolfo Ramos: And that is why we are always looking for what the passenger.
Adolfo Ramos: And speaking in terms of price broke out service. So what we know today is that we are losing promotional opportunities.
Adolfo Ramos: Due to the lack of capacity in some commercial areas specifically in terminal two.
Adolfo Ramos: And that's why.
Adolfo Ramos: We are expanding in reconstructing terminal one.
Adolfo Ramos: That as I said before we are.
Adolfo Ramos: <unk> to be open at the end of the second quarter 2026.
Adolfo Ramos: Thank you very much.
Speaker Change: Thank you. Our next question comes from the line of all that though with.
Speaker Change: UBS. Please proceed with your question.
Speaker Change: Thank you and thank you for taking my question on the board for a while two quick follow ups on my side to actually on your one on we see that you have some rebalance meant on Colombia.
Speaker Change: Sort of equal.
Speaker Change: You could provide a little bit of that that you gave on Disney balance mix and also some you know expectation all full.
Speaker Change: <unk> had been operates sofa hull.
Speaker Change: Hasn't been get trust to wound passenger expectations so far.
Speaker Change: Much.
Speaker Change: Well in the case of Colombia, and Puerto Rico, I would say they are working on they are getting great results.
Speaker Change: I'm really surprised so the resilience of Puerto Rico, I was expecting traffic to became more normal.
Speaker Change: If you see the report on the cancelled January so still strong very strong.
Speaker Change: And Colombia of course, he's in the process to well it has gone through that process to complete the two airlines, we looked at that at the beginning of 2023.
Speaker Change: So we are back on track and I hope that Colombia will.
Speaker Change: Continue.
Speaker Change: No more growth in.
Speaker Change: In the in the coming quarters.
Speaker Change: Yeah.
Speaker Change: That's that's basically what I can say well the two cases.
Thank you. Our next question comes from the line of Jens Spiess with Morgan Stanley. Please proceed with your question.
Yeah. Thank you Adolfo.
Speaker Change: So just one question on capacity and and Ken Kun like under a hypothetical scenario where.
Speaker Change: International remains weak and there's an increase in in and capacity that the local domestic airlines one to increase took on corn are there any constraints in the terminals, where you're servicing the national carriers.
Speaker Change: Or would you be able to allocate or would you need to reallocate a basic basically that your operations there.
Speaker Change: Any color on that I appreciate it.
Speaker Change: Absolutely.
Speaker Change: To date, we do not have.
Speaker Change: Restrictions in terms of operational capacity and similar to what we have these restrictions in the nonmetal North Dakota site.
Speaker Change: Yeah, the capacity I would say in the case of the meat of the day, probably you will not find this space to have your meal.
Speaker Change: But in the case of the personal front and we do not have programs of course.
Speaker Change: Once blends with keep rate.
Speaker Change: Its operations.
Speaker Change: Operations from the problem they have with Brooklyn, we'd need we will need more capacity and that's why we are constructing spending 10 minutes 10 minutes.
Speaker Change: What do we have any.
Speaker Change: Basically.
Van bodies blow South America. So what we're intending to do is to subtract Central America and moved back to one and that will leave additional space for these dwellings.
Speaker Change: Alright, perfect. Thank you.
Speaker Change: You're welcome.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, as a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad.
Speaker Change: Our next question comes from the line of Alan Lucy Li with Bank of America. Please proceed with your question.
Speaker Change: Hi, Good morning. Thank you for the question just a question on <unk>.
Speaker Change: Mexican tariffs were you able to.
Speaker Change: <unk> well increase last year.
Speaker Change: Is there any spillover that we might see for this year. Thank you.
Speaker Change: Hi, Good morning, I cannot hear you.
Speaker Change: Chinese coking so you kind of repeat your question. Please.
Speaker Change: Okay.
Speaker Change: Yes can you hear me better.
Speaker Change: Better.
Speaker Change: Yeah, just on the Mexican tariffs, if you were able to implement the increase in 2024.
Speaker Change: And if we might expect some spillover for this year on Mexican tariffs. Thank you.
Speaker Change: It was basically implemented and lumpier.
Speaker Change: Yeah.
Thank you. Our next question comes from the line of Mek Soho with Wanda Mintha investments. Please proceed with your question.
Mek Soho: Hello, there. Thanks for taking my question. My question is actually related to the passenger growth.
Mek Soho: Click on some things you mentioned as you referred for life just they didn't the earnings calls that they expect GTS issues.
Mek Soho: Basically pushing out their fleet at about 25 to six seven.
Mek Soho: David.
Speaker Change: And again could you repeat your question please.
Speaker Change: Sorry, It seems that was lost and then we'll move to the next question.
Speaker Change: Our next question comes from the line of Gabriel <unk> with Scotiabank. Please proceed with your question.
Speaker Change: Okay.
Gabriel: Hi, Alan Thanks for the.
Speaker Change: Question on the loan is there any somehow.
Speaker Change: Upsetting mechanism, sorry, compensating mechanisms for the traffic that is being taken from the luminaire part two.
Speaker Change: From conclusion, thank you.
Speaker Change: Hi, Gabriel I wouldn't call it a compensation because at the end of the day. If you go back to the regulatory regime that was probably sort of October 19 2023.
Speaker Change: And the Formula.
Speaker Change: Looking forward not looking backward.
Speaker Change: Of course.
Speaker Change: The effects of the new airports were included in those calculations so yeah.
Speaker Change: To give you a very clear answer your responses, yes. It has.
Speaker Change: We included the effects of <unk>, but of course, we cannot compensation.
Speaker Change: So they were included on the M depend less Tirasemtiv P F.
Speaker Change: Absolutely.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: You want them.
Thank you. Our next question comes from the line of Anthony Martin Carter with GBM. Please proceed with your question.
Speaker Change: Hi, Hello, Thank you for the call and congrats on the results I'm sorry. If this has already been asked I have somebody just with my line, but my question is related to the commercial side I mean, we saw really good performance something on the idle per Pax growth.
Speaker Change: I was wondering I mean, hey, do.
Speaker Change: It is a result of the mix from having maybe a stronger U S dollar and maybe some pent up demand or something or.
Speaker Change: Also if there has been any.
Speaker Change: What are your shift in how you renew your contracts, maybe a little bit of pricing power on that side.
Speaker Change: I'm not sure if you can provide some color there.
Speaker Change: Absolutely.
Speaker Change: It has to do with the D effects, you can see a very clear during the fourth quarter results.
Speaker Change: Partially and then on the third quarter last year restricted because we saw some kind of peso devaluation seems a bit this quarter.
Speaker Change: But of course, the most important effect was in the fourth quarter and.
Speaker Change: Yeah.
Speaker Change: That's basically what we what we have with the pool what are some effects good results.
Speaker Change: No question about it.
Speaker Change: Yeah, but I don't see any problem.
Speaker Change: In the future except that we know that we are losing commercial are produced.
Speaker Change: And also just a little bit of a follow up there at all for roughly what amount of of your commercial contracts, although each year and are you able to renew with them with I mean, maybe open terms or or outdoors.
Speaker Change: With maybe fixed terms or another robotic false or something like that.
Speaker Change: Well, yes it is.
No Oh wait to say that this year, 20% of the contracts will expire.
Speaker Change: Yeah.
Speaker Change: Every business line has its own.
Speaker Change: Yeah, Tim I would say it could go from seven to three years, depending on the business line.
Speaker Change:
Speaker Change: Normally what we do is to continue with the same kind of.
Speaker Change: At Tims.
Speaker Change: Increasing as you have mentioned increasing prices increasing the concession fees.
Speaker Change: The way to maximize the revenues.
Speaker Change: In some cases, the <unk> remember that.
Speaker Change: What we want these days.
Speaker Change: So more and we get more so in that sense.
Speaker Change: The most important thing is to.
Speaker Change: To be able to.
Speaker Change: Okay.
Speaker Change: Get as much as we can in terms of.
Speaker Change: Sales not in terms of prices.
Speaker Change: Perfect that's really clear thank you.
Speaker Change: You're welcome.
Speaker Change: Yes.
Speaker Change: Thank you. Our next question comes from the line of Mendez.
Mendes: Mendes with G I'm, sorry, J P. Morgan one moment.
Speaker Change: Please proceed with your question.
Speaker Change: Okay. That's helpful. Thanks for taking the question first one is it's a follow up on too long you said. He was included on the MVP, but can you share how its training when compared to your expectations, it's going in line or not.
Speaker Change: And the second one in terms of kept total occasion.
Speaker Change: There was some some news on the Dominican Republic can assets last year I understand is still on hold and if there's anything else that the company would be close here outside of Mexico. Thank you.
Speaker Change: He has been the case.
Speaker Change: What I can say to you is he says respected basically probably.
Speaker Change:
Speaker Change: No.
Speaker Change: So struggle no let me say this year probably.
Speaker Change: Originally you were expecting around $3 million I'm, saying.
Speaker Change: $2 9 million for this year and that will be the ramp up to move to the front book.
Speaker Change: 20, <unk> 25 from there.
Speaker Change: <unk> will have to grow.
Speaker Change: The dynamics of the region.
In the case of Dominican Republic.
Speaker Change: We do not have any update we continue with a legal process that.
Speaker Change: And I hope that we will have some results.
Speaker Change: During this year.
Speaker Change: Okay. Thank you and just to confirm anything else outside Mexico and outside Dominican Republic kit that you would consider.
Speaker Change: Well of course, we.
Speaker Change: We want to consider all we wish you all the projects that are there, but for the moment I would say.
Speaker Change: I do not have any significant project in front of me in the short term.
Speaker Change: Perfect. Thanks very much.
Speaker Change: Youre welcome.
Thank you. Our next question comes from the line of Andrew J Soho with fundamental investments. Please proceed with your question.
Speaker Change: Apologies my line, chopped, where you're able to listen to me.
Speaker Change: No actually I can hear you.
Speaker Change: Okay. Thank you and my question is actually kind of a double click on some things you mentioned and more specific people. Larry you just mentioned yesterday, stating the earnings call that you're going to have GPS engines produced your next jump to slide seven.
Speaker Change: And they have Moreover, in renegotiating aircraft, if they wish with Airbus to further slow down capacity increases do you believe that this new information significantly theres growth in the short to medium term do you think it may be indicative for far more weak domestic market and players.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: What is important for us is the additional capacity they aren't including as we speak not just the milestones in the case of Beaver the queso and in Mexico.
Speaker Change: Youll see the reportable items of course, I'm not so sure that what they report es.
Speaker Change: The operational aircrafts, but you'll see them report.
Speaker Change: At the end of 2023, they reported 130.
Speaker Change: At the end of 2024, the reported 143, so it was just.
Speaker Change: Two numbers.
Speaker Change: When we say they have more aircrafts.
Speaker Change: In comparison to what they had before.
Speaker Change: And we.
Speaker Change: The problem with those two numbers is that we don't know how many of those.
Speaker Change: Or in.
Speaker Change: In the shop.
Speaker Change: Also it has been announced yesterday by then.
Speaker Change: Some of the aircrafts that have already been recall will have to grow again.
Speaker Change: Yeah.
For some additional works.
Speaker Change: So that is why.
Speaker Change: I said during my remarks that next year, we will see you.
Speaker Change: The problem with field there.
Speaker Change: Of course in.
Speaker Change: In a in a more smaller.
Speaker Change: Manner no.
Speaker Change: My expectation is that the.
Speaker Change: The first three quarters are going to be the lapses from effects from that that wouldn't be the case of Polaris.
Speaker Change: Great. Thank you very much.
Speaker Change: Youre welcome.
Speaker Change: Thank you, ladies and gentlemen, as a final reminder, if you'd like to ask a question. Please press star one on your telephone keypad will pause a moment to allow for any other questions.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Mr. Castro. It seems there are no other questions at this time I'll turn the floor back to you for any closing comments.
Castro: Thank you Melissa and thank you all of you again for joining us.
Speaker Change: Today for these fourth quarter.
2024 conference call, we wish you a good day and Goodbye now you may disconnect.
Speaker Change: Okay.
Speaker Change: Thank you ladies and gentlemen. This concludes today's conference call you may now disconnect your lines.