Q3 2025 Grupo Aeroportuario del Sureste SAB de CV Earnings Call

Speaker #3: All participants are in a listen only mode . We will conduct a question and answer session towards the end of today's conference . If you would like to ask a question , please press star one .

Speaker #3: If you want to withdraw your question at any time , please press star two . If you are using a speakerphone , please lift the handset before making a selection as a reminder , today's call is being recorded .

Speaker #3: Now , I'd like to turn the call over to Mr. Adolfo Castro , chief Executive Officer . Please go ahead , sir .

Speaker #4: Thank you , and good morning , everyone . 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 risks and uncertainties that could cause actual results to differ materially , including factors that may be beyond our company's control .

Adolfo Castro Rivas: Thank you, LaTanya, and good morning, everyone. 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 risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control. Additional details about our third quarter 2025 results can be found in our press release, which was issued yesterday after market close and is available on our website in the investor relations section. Following my presentation, I will be available for Q&A. As usual, all comparisons discussed on this call will be year-on-year, and figures are expressed in Mexican pesos unless specified otherwise. Before discussing our results, I would like to begin today's call with an important strategic development.

Speaker #4: Additional details about our third quarter 2025 results can be found in our press release , which was issued yesterday after market close and is available on our website in the Investor Relations section .

Speaker #4: Following my presentation , I will be available for Q&A . As usual , all comparison discussed on this call may be will be .

Speaker #4: Year on year and figures are expressed in Mexican pesos unless specified otherwise . Before discussing our results , I would like to begin today's call with an important strategic development .

Speaker #4: As recently announced , we entered into a definitive agreement to acquire URI Airports for an enterprise value of $295 million . This transaction marks a significant step forward in Asia's international expansion strategy .

Adolfo Castro Rivas: As recently announced, we entered into a definitive agreement to acquire Unibail-Rodamco-Westfield Airports for an enterprise value of $295 million. This transaction marks a significant step forward in ASUR's international expansion strategy, building our established presence in the United States, which began with the operation of San Juan Puerto Rico Airport in 2013. Unibail-Rodamco-Westfield Airports managed commercial programs at three of the most iconic and high-traffic airports in the United States. Unibail-Rodamco-Westfield Airports managed commercial programs at three of the terminals at three of the airports in the United States: Los Angeles International Airport with six terminals, Chicago O’Hare International Airport at Terminal 5, and in the case of John F. Kennedy International Airport, covering Terminals 8 and the upcoming new Terminal 1. Together, these terminals process around 14 million enplanements annually. This acquisition provides ASUR with a strategic foothold in three of the largest U.S.

Speaker #4: Building our established presence in the US , which began with operation of San Juan , Puerto Rico Airport in 2013 . Q3 airports managed commercial programs at three most iconic and high traffic airports in the United States .

Speaker #4: Your airports managed commercial programs at three of the terminals at three of the airports in the United States , Los Angeles International Airport , with six terminals Chicago O'Hare International Airport at Terminal five , and in the case of John at Kennedy International Airport , covering terminals eight and the upcoming new terminal one .

Speaker #4: Together , these terminals process around 40 million employments annually . This acquisition provides Azur with a strategic foothold in the three of the largest US air travel markets and strengthens our position in the high growth , non-regulated commercial segment in the US airport industry .

Adolfo Castro Rivas: air travel markets and strengthens our position in the high-growth, non-regulated U.S. commercial airport segment. The acquisition will be financed by JP Morgan Chase. As with all our strategic decisions, we are approaching this opportunity with the financial discipline and operational rigor that has long defined ASUR's execution. Closing is expected during the second half of 2025, subject to customary regulatory approvals. We look forward to keeping you updated on our progress in the quarters ahead. Now turning to our third quarter performance, we serve over 17 million passengers across our airports, with traffic remaining practically flat as continued growth in Colombia and Puerto Rico helped to offset persistent headwinds in Mexico. Starting with Colombia, passenger traffic rose 30% to close to 5 million, supported by a solid 11% increase in international traffic and a modest growth of just under 1% in domestic volumes.

Speaker #4: The acquisition will be financed by J.P. Morgan Chase . As with all our strategic decisions , we are approaching this opportunity with the financial discipline and operational rigor that has long defined Asia's execution .

Speaker #4: Closing is expecting during the second half of the 2025 , subject to customary regulatory approvals , with look forward to keeping you updated on our progress in the quarters ahead .

Speaker #4: Now turning to our third quarter performance . We serve over 17 million passengers across our airports with traffic remaining practically flat as continued growth in Colombia and Puerto Rico helping to offset persistent headwinds in Mexico .

Speaker #4: Starting with Colombia , passenger traffic rose 30% to close to 5 million , supported by solid 11% increase in international traffic and a modest growth just under 1% in domestic volumes in Puerto Rico , total traffic was up 1% , reaching over 3 million passengers .

Adolfo Castro Rivas: In Puerto Rico, total traffic was up 1%, reaching over 3 million passengers. Growth was driven by international passengers, which increased nearly 12% year-on-year, offsetting the 0.5% decrease in domestic traffic. In Mexico, traffic declined 1% to nearly 10 million passengers for the quarter. The decrease reflects shorter demand, domestic traffic, which was down nearly 2%, and international, which saw a slight contraction of 0.3%. Passenger volumes from the United States, our largest international source market, decreased just 0.2%, while South America contracted 7.2%. On a positive note, Canada and Europe increased 9.3% and 1.3%, respectively. Looking ahead, we anticipate a more balanced operating environment across our portfolio. In Mexico, we expect traffic to gradually stabilize over the next year as aircraft availability improves. In Puerto Rico and Colombia, we expect continuous positive momentum supported by the healthy international demand and improving connectivity. Now turning to review our financial results.

Speaker #4: Growth was driven by international passengers, which increased nearly 12% year on year, offsetting the 0.5% decrease in domestic traffic in Mexico. Traffic declined 1%.

Speaker #4: To nearly 10 million passengers for the quarter . The decrease reflects softer demand . Domestic traffic , which was down nearly 2% , and international , which saw a slight contraction of 0.3% .

Speaker #4: Passenger volumes from the United States . Our largest international source market , decreased just 0.2% , while South America contracted 7.2 on the positive note , Canada and Europe increased 9.3 and 1.3 , respectively .

Speaker #4: Looking ahead , we anticipate a more balanced operating environment across our portfolio in Mexico . We expect traffic to gradually stabilize over the next year as aircraft availability improves in Puerto Rico and Colombia , with expect continuous positive momentum supported by a healthy international demand and improving connectivity .

Speaker #4: Now turning to review our financial results . As a reminder , all figures exclude construction revenues and cost unless otherwise noted . Comparisons are all earned a year unless otherwise noted .

Adolfo Castro Rivas: As a reminder, all figures exclude construction revenues and costs unless otherwise noted. Comparisons are all year-on-year unless otherwise noted. Total revenues increased in the middle single digits, reaching over $7 billion pesos, driven by growth in Puerto Rico and Colombia. Mexico, at 72% of total revenues, posted a slight low single-digit decline with aeronautical revenues practically flat and non-aeronautical revenues down in the middle single digits. Revenue growth was limited by softer passenger volumes and the stronger peso, which continues to weigh on the U.S. linked revenue streams. Puerto Rico, at nearly 18% of total revenues, reported revenue growth in the high single digits, driven by increases of 5% in aeronautical revenues and 10% in non-aeronautical revenues. This performance reflects positive passenger traffic trends and sustained demand across commercial activities.

Speaker #4: Total revenues increased in the middle single digits , reaching over $7 billion , driven by growth in Puerto Rico and Colombia . Mexico at 70% of total revenues posted a slight low single digit decline without aeronautical revenues practically flat and Non-aeronautical revenues down in the middle .

Speaker #4: Single digits . Revenue growth was limited by softer passenger volumes , and the stronger peso , which continues to wait on the US linked revenue streams .

Speaker #4: Puerto Rico at nearly 18% of total revenues , reported revenue growth in the high single digit , driven by increases in 5% in aeronautical revenues and 10% in non revenues .

Speaker #4: This performance reflects positive passenger traffic trends and sustained demand across commercial activities . Colombia , which accounted for total of 12% of the total revenues , delivered revenue growth in the high single digits , reflecting a mid single digit increase in aeronautical revenues , while Non-aeronautical revenues were up in the high teens .

Adolfo Castro Rivas: Colombia, which accounted for a total of 12% of the total revenues, delivered revenue growth in the high single digit, reflecting a mid-single-digit increase in aeronautical revenues, while non-aeronautical revenues were up in the high teens. This good performance was supported by passenger traffic growth and solid, partially offset by a strong Mexican peso. Continuing our ongoing focus on commercial development, we added 45 new commercial spaces across our airports over the last 12 months, including 31 in Colombia, 8 in Puerto Rico, and 6 in Mexico. This supported a low single-digit increase in commercial revenues, as solid growth in Puerto Rico and Colombia was partially offset by a weaker performance in Mexico. On a per-passenger basis, commercial revenue rose 1% to 126 pesos. By region, Colombia led a 14% increase, followed by Puerto Rico up 10%, while Mexico posted a 4% decline, reaching 144 pesos per passenger.

Speaker #4: This good performance was supported by passenger traffic growth and solid . Partially offset by a strong Mexican peso . Continuing on our ongoing focus on commercial development , we added 45 new commercial spaces across our airports over the last 12 months , including 31 in Colombia , eight in Puerto Rico and six in Mexico .

Speaker #4: This supported a low single-digit increase in commercial revenues. A solid growth in Puerto Rico and Colombia was partially offset by a weaker performance in Mexico on a per-passenger basis.

Speaker #4: Commercial revenue rose 1% to $126 . By region Colombia led a 14% increase . Followed by Puerto Rico up 10% , while Mexico posted a 4% decline , reaching $144 per passenger .

Speaker #4: Turning to costs , total expenses were up nearly 17% year on year . By region Mexico posted a 4% increase , largely largely due to higher maximum minimum wages and service costs .

Adolfo Castro Rivas: Turning to cost, total expenses were up nearly 17% year-on-year. By region, Mexico posted a 4% increase, largely due to higher maximum minimum wages and service cost. Puerto Rico reported an expense increase of nearly 8%, reflecting inflationary pressures and higher operating activity, while Colombia's cost increase is 76%, mainly driven by an adjustment in the amortization method of the concession. Without this, the increase would have been 5.4%. Lastly, in Puerto Rico and Colombia, costs benefited from the position of Mexican peso against the U.S. dollar. On the profitability growth, consolidated EBITDA declined just over 1% year-on-year to 4.6 billion pesos in the quarter. Puerto Rico and Colombia delivered EBITDA growth of nearly 5% and 10%, respectively, while EBITDA in Mexico declined close to 4%, mainly reflecting lower traffic and higher operating costs.

Speaker #4: Puerto Rico reported expense increase of nearly 8% , reflecting inflationary pressures and higher operating activity by Colombia . Cost increases 76% , mainly driven by an adjustment in the monetization method of the concession .

Speaker #4: Without this , the increase would have been 5.4% . Lastly , in Puerto Rico and Colombia , cost benefited from the precision of Mexican peso against the US dollar .

Speaker #4: On the profitability front , consolidated EBITDA declined just over 1% year on year to $4.6 billion in the quarter . Puerto Rico and Colombia delivered EBITDA growth of nearly 5% and 10% , respectively , while EBITDA in Mexico declined close to 4% , mainly reflecting lower traffic and higher , higher operating costs .

Speaker #4: Adjusted EBITDA margin , which excludes construction related revenues and costs on Ifric 12 , declined by 157 basis points to 66.7% . This reflects lower margin contribution from the Mexican and Puerto Rico operation , where the margin contracted 152 and 151 basis points , respectively .

Adolfo Castro Rivas: The EBITDA margin, which excludes construction-related revenues and costs under IFRIC 12, declined by 157 basis points to 66.7%. This reflects lower margin contribution from the Mexican and Puerto Rico operation, where the margin contracted 152 and 151 basis points, respectively. In contrast, Colombia reported an 81 basis points margin expansion. On our bottom line, this quarter was negatively impacted by the position of the Mexican peso against the U.S. dollar, which resulted in a foreign exchange loss of nearly 1 billion pesos compared to the reverse effect during the third quarter of last year. Profitability was also affected by the $333 million pesos adjustment in the concession amortization method in Colombia that I just explained. Now, moving to our balance sheet, we closed the quarter with a solid cash position of $16 billion pesos, down 19% from December 31, 2024, primarily reflecting dividend payments made during the period.

Speaker #4: In contrast , Colombia reported an 81 basis points margin expansion on our bottom line . This quarter was negatively impacted by the precision of the Mexican peso against the US dollar , which resulted in a foreign exchange loss of nearly $1 billion compared to the reverse effect during the third quarter of last year .

Speaker #4: Profitability was also affected by the $333 million adjustment in the concession amortization method . In Colombia that I just explained . Now , moving to our balance sheet , we closed the quarter with a solid cash position of $16 billion , down 19% from December 31st , 2024 , primarily reflecting dividend payments made during the period .

Speaker #4: Our net debt net debt to EBITDA ratio remained at healthy 0.2 times in terms of capital deployment in September , we paid an extraordinary dividend of $15 per share , funded from retained earnings .

Adolfo Castro Rivas: Our net debt to EBITDA ratio remained at a healthy 0.2 times. In terms of capital deployment, in September, we paid an extraordinary dividend of $15 pesos per share funded from written earnings. Note that in November, we will be paying an additional dividend of $15 pesos per share. Lastly, we invested close to $1.9 billion pesos during the quarter, primarily directed to projects at our Mexican airports, including the reconstruction and expansion of Terminal 1 at Cancun Airport and the terminal expansion in Oaxaca. In Puerto Rico, we are progressing on the new pedestrian bridge for Terminal A, while in Colombia, we invested in maintenance capex. In closing, our third quarter results reflect the resilience of the multi-country platform and the value of our disciplined execution amid a more tempered demand environment.

Speaker #4: Note that in November we will be paying an additional dividend of $15 per share . Lastly , we invest close to $1.9 billion during the quarter , primarily directed to projects that Mexican airports , including the reconstruction and expansion of terminal one at Cancun Airport and the terminal expansion in Oaxaca in Puerto Rico .

Speaker #4: We progress . We are progressing on the new pedestrian bridge for terminal A while in Colombia , we invested in maintenance , CapEx .

Speaker #4: In closing , our third quarter results reflect the resilience of multi-country platform and the value of our disciplined execution amid a more tempered demand environment .

Speaker #4: While traffic in Mexico continued to face near-term headwinds , we are encouraged by the ongoing momentum in Puerto Rico and Colombia . We remain focused on advancing on our commercial strategy , investing in infrastructure and maintaining a private financial proposal .

Adolfo Castro Rivas: While traffic in Mexico continued to face near-term headwinds, we are encouraged by the ongoing momentum in Puerto Rico and Colombia. We remain focused on advancing on our commercial strategy, investing in infrastructure, and maintaining a prominent financial profile. This concludes my prepared remarks. LaTanya, please open the floor for questions.

Speaker #4: This concludes my prepared in my prepared remarks that please open the floor for questions .

Speaker #3: Thank you . We will now begin the question and answer session . To ask a question . Dial in by phone and press the star .

Operator: Thank you. We will now begin the question-and-answer session. To ask a question, dial in by phone and press the star, then one on your telephone keypad. Make sure your mute function is turned off. If you're using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press the star, then two. At this time, we will pause momentarily to assemble our roster. One moment. The first question comes from Adolfo Ramos with Bradesco BBI. Please proceed.

Speaker #3: Then one on your telephone keypad . Make sure your mute function is turned off , and if you're using a speakerphone , please pick up your handset before pressing the keys to withdraw your question , please press the star .

Speaker #3: Then two . At this time , we will pause momentarily to assemble our roster . One moment . The first question comes from Rodolfo Ramos with Bradesco BB , please proceed .

Speaker #5: Good morning Adolfo , thanks for taking my question . I have a couple , if I if I may , the first one is in regards to the Irw acquisition .

[Analyst 1]: Good morning, Adolfo. Thanks for taking my question. I have a couple, if I may. The first one is in regards to the URW acquisition. Can you shed a bit of light on the economics, revenue per pax, how much EBITDA contribution you're expecting from these assets on an annualized basis? The second is on Colombia. Can you elaborate on this adjustment to the concession amortization method that we saw during the quarter? Was this a one-off or should it be a new level going forward? I know it has to do something with the economics of your concession title there. Thank you.

Speaker #5: Can you share a bit of light on the on the economics revenue per pax ? How much EBITDA contribution you're expecting from these assets on a on an annualized basis ?

Speaker #5: And the second is on Colombia . Can you elaborate on this adjustment to the concession amortization method that we saw during the quarter ?

Speaker #5: Was this a one off or should it be a new level going forward ? And if it has to do something with the the economics of of your concession title there .

Speaker #5: Thank you .

Speaker #4: Hi . Good morning . Thank you for your questions . In the case of your W , I cannot yet share numbers with you until all of these is approved .

Adolfo Castro Rivas: Hi, Adolfo. Good morning. Thank you for your questions. In the case of URW Airports, I cannot yet share numbers with you until all of this is approved. In the case of Colombia, basically what we have done is to change the amortization method because, in accordance with our estimates, during 2027, we will not receive regulated revenues anymore, and the concession should be over by 2032. We are aligning the amortization in accordance with the revenue generation there. It's going to be not one-off. It's going to be, from now on, the same level.

Speaker #4: In the case of Colombia , basically , what we have done is to change the monetization method because in accordance with our estimates during 2027 , we will not receive regulated revenues anymore .

Speaker #4: And the concession should be over by 2032 . So we are aligning the monetization in accordance with the revenue generation that and it's it's going to be not one of it's going to be from now on the same level .

Speaker #5: Okay . Thank you . Adolfo .

[Analyst 1]: Okay, thank you, Adolfo.

Speaker #4: You're welcome .

Adolfo Castro Rivas: You're welcome.

Speaker #3: The next question comes from Anton Morton Carter with GBM . Please proceed .

Operator: The next question comes from Anton Morton Cotter with GBM. Please proceed.

Speaker #6: Hi , Adolfo . Thank you for the call . I wanted to follow up a little bit on your . I understand you cannot discuss the financials , but leaving that aside , it seems like a great way to gain some strategic insight into into the consumer that that that that goes from your airports to the US .

[Analyst]: Hi, Adolfo. Thank you for the call. I wanted to follow up a little bit on URW Airports. I understand you cannot discuss the financials, but leaving that aside, it seems like a great way to gain some strategic insight into the consumer that goes from your airports to the U.S. I just was wondering if you could discuss a little bit what kind of synergies do you see or what is the strategic rationale behind this acquisition. Thank you.

Speaker #6: I just was wondering if you could discuss a little bit what kind of synergies . Do you see or or what is the strategic rationale behind this acquisition ?

Speaker #6: Thank you .

Speaker #4: Thank you . Anthony . Well , basically the most important for us is to get to a foot in the US market . The US market represents 22% of the aviation market of the world .

Adolfo Castro Rivas: Thank you, Anton. Basically, the most important for us is to put a foot in the U.S. market. The U.S. market represents 22% of the aviation market of the world. These terminals are extremely important for the U.S. market. Putting our name there, it's extremely important. This should be the platform for future growth in the United States, probably in the same kind of contracts that we are entering right now. That is the most important thing.

Speaker #4: And these terminals are extremely important for the US market . So putting our name there , it's extremely important . And this should be the platform for future growth in the United States , probably in the same kind of contracts that we are entering right now .

Speaker #4: That is the most important thing .

Speaker #6: Perfect . Thanks .

[Analyst]: Perfect. Thanks.

Speaker #3: Thank you . Our next question comes from Andrew with UBS . Please proceed .

Operator: Thank you. Our next question comes from Andero Alvarado with UBS. Please proceed.

Speaker #7: Had also thank you for for taking my question . I have two here on on on my side . The first one is about Motiva airports that are for sale with being seeing the new photos that Azure is one of the candidates interested in this airport .

[Analyst 2]: Hi, Adolfo. Thank you for taking my question. I have two here on my side. The first one is about URW Airports that are for sale, with being seeing the news flow that ASUR is one of the candidates interested in these airports. I'm just wondering if you could provide some more information if you're looking, for example, at all of the airports or just a subset of them, and how the company financed this. My next question is regarding the traffic trends that you've been seeing for Mexico. We've been seeing recently on news as well that Tulum Airport has been facing some cancellations. If you think that this could help Cancun Airport in the near future. Thank you. These are my two questions.

Speaker #7: So just wondering if you could provide some more information . If you're looking , for example , at all of the airports or just a subset of them and how how the company financed this ?

Speaker #7: And my next question is regarding the traffic trends that you've been seeing for Mexico . We've been seeing recently on news as well , that Tulum Airport has been facing some cancellations .

Speaker #7: And if you think that this could help Cancun Airport in the near future . Thank you . These are my two questions .

Speaker #4: I think I'm and good morning . In the case of Motiva , I cannot comment . In the case of the traffic trends , what I see today is a slow recuperation in the domestic market because of Breton with the engines , something that we should improve in .

Adolfo Castro Rivas: Thank you and good morning. In the case of MOTIVA, I cannot comment. In the case of the traffic trends, what I see today is a slow recuperation in the domestic market because of Pratt & Whitney engines, something that we should improve, in my opinion, during the next year. For the moment, the traffic is really weak and the demand is weak in the case of the region. If we see Cancun and Tulum together for the first eight months of the year, and I'm saying eight months because that is the latest public figure for the case of the airport of Tulum, the traffic for the region is a decrease of 3.1%.

Speaker #4: My opinion , during the next year . For the moment , the traffic is is really weak and the demand is weak . In the case of the region , if we see Cancun and Tulum together for the first eight months of the year , and I'm saying it months because that is the latest public figure for the case of the airport of Toulouse , the traffic from the region is a decrease of 3.1 .

Speaker #4: If we go to the latest month that has been published , for the case of the airport of Tulum , which is the month of August this year , August versus August last year , the traffic of the region was the a decrease of 5.1% .

Adolfo Castro Rivas: If we go to the latest month that has been published for the case of the airport of Tulum, which is the month of August this year, August versus August last year, the traffic of the region was a decrease of 5.1%. The traffic is soft. Nevertheless, what you are saying in terms of the recent cancellations to the airport of Tulum.

Speaker #4: So the traffic is short . Nevertheless , what you are saying in terms of the recent cancellations to the airport of Turin .

Speaker #3: Thank you . Our next question comes .

Operator: Thank you. Our next question comes from.

Speaker #7: From .

Speaker #4: Sorry , could you repeat ?

Adolfo Castro Rivas: Sorry, could you repeat?

Speaker #3: Our next question comes from Pablo . The next question comes from Pablo Ricardi with A2 . Please proceed .

Operator: Our next question comes from Pablo Ricaurte. The next question comes from Pablo Ricaurte with ATU. Please proceed.

Speaker #8: Okay . Hi . Good morning . My question is related to the new zone one in Cancun . Is it feels like it to be open around Q3 2023 and six .

[Analyst 3]: Okay. Hi, good morning, Adolfo. My question is related to the new terminal, the new Terminal One in Cancun. Is it still expected to be open around Q3 2026, or are there delays on the construction of that one?

Speaker #8: Or delays in that contraction of that one .

Speaker #4: Pablo . Hi . Good morning . What we are expecting is to open this new facility and during the third quarter 20 , 25 , 2026 , sorry .

Adolfo Castro Rivas: Hi, good morning. What we are expecting is to open this new facility during the third quarter 2026, sorry.

Speaker #8: Okay . So as expected .

[Analyst 3]: Okay, so unexpected.

Speaker #3: The next question comes from Gabriel Himrod with Deutsche Bank . Please proceed .

Operator: The next question comes from Gabriel Jamarrot with Deutsche Bank. Please proceed.

Speaker #6: Adolfo , thanks for the call . Just two questions . First , is there any . way or somehow that capacity allocation from carriers has been shifting from Cancun ?

[Analyst]: Hey, Adolfo. Thanks for the call. Just two questions. First, is there any way or somehow that capacity allocation from carriers has been shifting from Cancun? The second one is, did the decrease in traffic code somehow make the pace of rising the tariffs toward the maximum tariff faster for either this year or next year? Thank you.

Speaker #6: And the second one is the decrease in traffic . Could somehow make the pace of rising the tariffs toward the maximum tariff faster for either this year or next year .

Speaker #6: Thank you .

Speaker #4: Well , in terms of capacity , we are not sheep . We are not seeing a shift in capacity . What we are seeing basically is a a weak demand .

Adolfo Castro Rivas: In terms of capacity, we are not seeing a shift in capacity. What we are seeing basically is a weak demand, as I said, from the domestic resulted from Pratt & Whitney and some other elements. In the case of the U.S., the numbers for the quarter are a 0.2% decrease, which is small, but it's the largest market we have. Let's see how the winter comes. I hope that the winter will be very strong in the north part of the Americas, and then they come. The positive side is the case of Canada, which is up for the quarter, and I hope that it will be up during the fourth quarter as well.

Speaker #4: As I said, the domestic results were impacted by Pratt and Whitney and some other elements. In the case of the U.S., the numbers for the quarter show a 0.2% decrease.

Speaker #4: Which is small, but is the largest market we have. Let's see how the winter comes, and I hope that the winter will be very strong in the northern part of the Americas.

Speaker #4: And then they they come and positive side is the case of Canada , which is it's up for the quarter . And I hope that it will be up during the , the fourth quarter as well .

Speaker #9: Okay . Thank you . And in the case of the traffic that has somehow decreased , that could accelerate the .

[Analyst]: Thank you. In the case of the traffic that has somehow decreased, could that tool accelerate the pace on which tariffs are increased up to the maximum tariff?

Speaker #6: Pace on which tariffs are increased up to the maximum tariff.

Speaker #4: No , I don't see that our maximum compliance these years should be similar of what it was last year . So more than 99% .

Adolfo Castro Rivas: No, I don't see that. Our maximum tax compliance this year should be similar to what it was last year, so more than 99%.

Speaker #6: Okay . Thank you .

[Analyst]: Okay, thank you.

Speaker #4: You're welcome .

Adolfo Castro Rivas: You're welcome.

Speaker #3: Once again to ask a question please press star one at this time . One moment please . At this time , we'll turn the call back over to Mr. Adolfo Castro for closing comments .

Operator: Once again, to ask a question, please press star one at this time. One moment, please. At this time, we'll turn the call back over to Mr. Adolfo Castro Rivas for closing comments.

Speaker #4: Thank you . Makhanya . And thank you , all of you . Again for joining us on our conference call for the third quarter 2025 .

Adolfo Castro Rivas: Thank you, LaTanya. Thank you, all of you, again, for joining us on our conference call for the third quarter 2025. We wish you a good day and goodbye.

Speaker #4: We wish you a good day and goodbye .

Speaker #3: Thank you . This does conclude today's teleconference . You may disconnect your lines at this time . Thank you for your participation and have a great day .

Operator: Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.