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Good afternoon, and welcome to Grupo Aeroméxico, S.A.B. de C.V.'s First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a question-and-answer session at the end with instructions given at that time using the Ask a Question section on the webcast. As a reminder, today's conference call is being recorded. Now I would like to turn the call over to Ms. Lucero Medina, Head of Investor Relations. Ms. Medina, you may begin.

Thank you, and good afternoon, everyone. Joining me today to discuss our results are Andrés Conesa Labastida, chief executive officer; Aaron Murray, chief commercial officer; and Ricardo Sánchez Baker, our chief financial officer. Before we get started, I would like to take this opportunity to remind you that during the course of this call, we will present results that are based on our unaudited consolidated financials. Accordingly, financial results discussed today are based on information available to us as of the date of this call and not the comprehensive final statement of our financial results for any period presented. We may make forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act regarding future events and our company's future performance. We caution you that several important factors could cause actual results to differ materially from any plans and expectations expressed in this call, including the risk factors disclosed in our SEC filings. During this call, we will present certain non-IFRS financial measures. We have included a reconciliation and explanation of adjustments and other considerations of our non-IFRS measures to the most comparable IFRS measures. Our call and the earnings release are available on our website. Now it is my great pleasure to turn the call over to Andrés. Thank you, and good morning, everyone. We appreciate you joining us today to discuss our first quarter 2026 results.

As the situation in the Middle East continues to evolve, we remain hopeful for a prompt and peaceful resolution. Our results this quarter underscore the resilience of our business model. Despite several external headwinds, including temporary demand disruptions in certain regions of Mexico and a significant surge in fuel prices, we delivered results generally in line with our original guidance, reflecting the strength and adaptability of our platform. We are fully equipped to navigate these challenging times. Our brand is strong, and our ability to achieve higher premium revenue reflects our appeal to passengers who are less sensitive to price fluctuations. Above all, our team is widely regarded as one of the best in the industry. Thanks to this strong team, we have continued to lead the industry. We were once again recognized by Serium as the most on-time airline in the world in 2026, building on our number one global ranking in both 2024 and 2025. We have been acknowledged as a top employer in Mexico for four consecutive years, ranked twelfth on Forbes Mexico's best employer list, and achieved first place in the MERCO Palento ranking for passenger transport. The expertise and dedication of our team represent a distinctive strength that differentiates us from others in our industry. Aaron and Ricardo will give you a more detailed overview of revenue and financial performance. I want to point out several aspects that demonstrate the strength of our business model. Our unit revenues increased by 15% year-over-year, and we achieved an operating margin of 11%, which falls within the guidance range that we shared for the quarter. Also, we closed March with a robust financial position, liquidity exceeding $1.2 billion. Liquidity improved compared to the same period of 2025 and compared to the fourth quarter of last year, which is notable given that the first quarter of the year is typically weak on cash flow generation due to the seasonality of our business. With low leverage and a strong cash position, we have significant flexibility to respond confidently to current challenges. From a structural perspective, fuel accounted for approximately 21% of our total revenues in 2025, which is lower than the levels observed in other full-service carriers and ULCCs within the region. This positioning gives us meaningful advantage in managing periods of elevated fuel prices. Building on this position, we will continue to actively manage capacity and implement fuel recapture initiatives, including targeted fare adjustments. We are encouraged by the market's response, particularly in international markets where demand has remained strong and our fuel recapture strategies have proven to be materially effective. Approximately 70% of our revenues are generated in these markets. We plan to continue to take advantage of the adaptability of our network, enabling swift capacity adjustments as conditions evolve. As the environment stabilizes, we expect to capture meaningful operational leverage from the aircraft added over the past year, driving improved performance. We do not have any material additional fleet commitments this year, which limits incremental cost pressure and enhances our flexibility. This positions us favorably relative to other carriers with sizable committed deliveries in the following months. Simultaneously, we are strengthening our commitment to cost discipline across the organization to protect margins and sustain strong cash generation. This balanced approach on revenue and costs positions us well to navigate the current climate, just as we have proven in previous years. Looking ahead, we expect the second quarter to remain challenging and anticipate it will represent the weakest period of the year, reflecting the full impact of recent fuel price increases. For the second quarter, we expect to recover approximately 50% of the incremental fuel costs, with a clear path to higher levels of recapture as the year progresses, reaching around 70% in the third quarter and 100% in the fourth quarter, as our pricing and network initiatives are fully reflected in the market. In parallel, the benefits of our revenue initiatives, capacity adjustments, and cost measures will continue to build, supporting a sequential improvement in both margins and profitability. In this context, we expect low- to mid-double-digit revenue growth in the second quarter, translating into an operating margin in the range of 4% to 7%. Ricardo will provide additional detail on our second quarter guidance. Given recent market volatility, it is premature to revise our full-year outlook at this time. As conditions stabilize and visibility for the remainder of the year improves, we intend to provide updated full-year guidance. In the meantime, our structural advantages, strong market position, and disciplined execution are expected to reinforce our leadership in both financial performance and operational excellence. With that, I will turn it over to Aaron to discuss our commercial performance in more detail. Thank you very much.

Thank you, Andrés, and good morning, everyone. I want to thank the entire Grupo Aeroméxico, S.A.B. de C.V. team for delivering industry-leading service and reliability to our customers in what has been a very challenging environment. We delivered revenue above our guidance for the first quarter, with total revenue of $1.34 billion, up 13.3% year-over-year. This record-setting first quarter performance was achieved despite the material impact from isolated disruptions in late February in Mexico. The impact of those disruptions, which affected both operations and transborder U.S. demand for a few weeks, has since recovered. Across our regions, we experienced strong revenue performance with particular strength in our international portfolio. International revenue increased 13.6% year-over-year, led by our long-haul markets in Europe, Asia, and South America. In domestic markets, revenue grew 12.7% year-over-year, supported by improvements with respect to last year's immigration-related impact on border markets and improved performance in beach markets. On the loyalty front, Aeromexico Rewards continues to build strong momentum, driving increased revenue and customer value. In the first quarter, we reached a new record with 38% of our passengers participating in the program, up 10 points year-over-year and 15 points since the program's reacquisition in 2023. Redemption revenue also grew 22% year-over-year, reflecting higher engagement and perceived program value. We continue to see significant runway for loyalty-driven revenue growth as participation expands. We are also seeing the benefits of the successful rollout of our new app, along with continued enhancements in retailing and merchandising which are strengthening our direct online channels. In the first quarter, direct online share reached a record 48%, up three points year-over-year and 23 points versus 2019. Our latest evolution of branded fares is also contributing to improved premium mix, with premium revenue mix reaching 42%, up one point year-over-year and 18 points versus 2019. These commercial efforts are delivering solid results, supporting revenue performance while strengthening the durability of our business. Turning to second quarter outlook, Ricardo will provide the details of our guidance, but overall demand has remained strong across the network despite continued volatility. March cash sales grew in the low teens year-over-year, with the week ending March 15 marking the highest first-quarter weekly revenue sales performance in the company's history, surpassing the previous record set in January. In response to higher fuel costs, we have been focused on implementing fuel recapture initiatives, which are showing encouraging results while also reducing noncore, lower-margin flying. These capacity actions resulted in the removal of approximately half a percentage point of capacity in the second quarter. Based on the success of the fuel recapture actions and continued demand strength, we expect to recover around 50% of fuel headwinds during the quarter. Beyond the second quarter, the impact of our fuel recapture initiatives will increase as a larger share of our bookings reflect these changes and additional initiatives are implemented. In closing, as we enter the second quarter in a more volatile environment, we are confident in our relative positioning in the industry. We have built a strong and durable airline with a robust commercial strategy that will allow us to navigate these conditions and emerge even stronger. I will now turn the call over to Ricardo.

Thank you, Aaron, and good afternoon, everyone. I would like to echo Andrés and Aaron in acknowledging our team's dedication and significant contributions to the strong results achieved in the first quarter. We maintained best-in-class results in a complex operating environment, highlighting the robustness of our business model and our ability to achieve strong outcomes in challenging geopolitical circumstances. In the first quarter, total revenue reached $1.3 billion, marking a 13% increase from the previous year and aligning with the upper end of our guidance. This result demonstrates ongoing demand and healthy unit revenue trends. Our total unit revenue, or PRASM, grew 15% compared to 2025. From a cost perspective, total operating expenses increased 16% year-over-year, with higher fuel prices as the primary driver of the increase. Costs were also pressured by the impact of a stronger peso on our cost base, which appreciated 14%. Adjusted EBITDA for the first quarter reached €36 million with a 25% margin. This result represents a 5% increase compared to the first quarter EBITDA level of 2025, notwithstanding an estimated adverse effect of €36 million due to higher fuel prices and demand disruptions affecting revenue in specific regions in Mexico. First quarter operating income totaled $142 million with a margin of 11%, in line with the figures reported in the same period of 2025. These results correspond with the lower end of the guidance range issued in the previous quarter. Our cash position continued to improve. We closed the first quarter with over $1 billion in cash, complemented by a $200 million undrawn revolving credit facility, bringing total liquidity to €1.2 billion, or 23% of last twelve months' revenue. This represents an increase of $578 million compared to the same quarter last year, and is $21 million higher than year-end 2025, despite the quarter's typical seasonal weakness. During the quarter, we generated over $200 million in net operating cash flow and reduced financial debt by close to €10 million. At quarter end, our adjusted net debt to EBITDA ratio stood at 1.7 times, representing an improvement compared to the level reported at year end. Our leverage profile continues to strengthen, underpinned by consistent earnings generation and prudent capital allocation. With volatility continuing to shape the current environment, we remain focused on driving efficiency across the operation. As Aaron has highlighted, our emphasis on revenue management initiatives and network optimization is essential for maintaining consistent performance. At the same time, we are reinforcing cost discipline across the organization to protect margins and cash flow. Key actions include implementing a hiring freeze with backfill limited to critical operational roles, reducing discretionary spending including consulting and travel, prioritizing MAX fleet deployment to optimize fuel efficiency per ASM, leveraging operational flexibility to adjust engine maintenance programs and optimize capital expenditures, executing strategic capacity adjustments to avoid cash-negative flying, and reprioritizing investments and component management to reduce working capital requirements. Given the current level of fuel prices, our strategic investments in fleet modernization have become increasingly significant. Specifically, the enhanced efficiency of our 737 MAX aircraft has contributed to a reduction in fuel burn per ASM. During 2026, fuel consumption per ASM was 1.4% lower compared to the same period in 2025, resulting in estimated cash savings of approximately $5 million. In this context, the second quarter is expected to reflect peak pressure from elevated fuel prices, with the benefits of our mitigation actions not yet fully realized. As these measures are progressively implemented and reflected in our results, we expect a gradual normalization of margins and a stronger profitability profile into the second half of the year. For the second quarter, capacity is projected to increase by approximately 1.5% to 2.5% year-over-year. Total revenue is estimated to increase between 12.5% and 15.5% year-over-year. Adjusted EBITDA margin is expected to be between 17% and 20%, and operating margin is expected to be between 4% and 7%. We remain firmly committed to protecting margins, optimizing cash flow, and maintaining a strong balance sheet while preserving the flexibility to adapt quickly. Challenging environments like this often separate the leaders from the rest, and we are confident in our ability to capitalize on these conditions and strengthen our competitive position. We will now open the call for questions.

Thank you. And as a reminder, to ask a question, press 11 on your telephone and wait for your name to be announced. To remove yourself, press 11 again, or use the Ask a Question section on the webcast. One moment while we compile the Q&A roster. Our first question comes from Pablo Monsivais with Barclays. Please proceed.

Thank you. I would like to have more information on your recapture ability. You made some comments on the progress that you have done already, but I would love to know how much of the jet fuel increase can be offset by the prices that you have already reflected, how you are seeing clients, and when we are going to see this taking place, I guess more in the third and fourth quarter. Ideally, any color on the markets—how domestic is behaving to the fare increases versus international, which I guess is more on the long haul rather than the U.S.—would be great. Thank you very much.

Let me provide a brief comment, and then I will ask Aaron to go in detail. As you mentioned, Pablo, it has been much more efficient to translate these jet fuel price increases in international markets than in the domestic market, and I want to stress that 70% of our revenue is associated with the international market. That positions us in a great spot. Although we have not seen the same level of response in the domestic market in terms of yields, we have seen some capacity reductions, which is also positive going forward. Not necessarily affecting prices today, but in the future the domestic market, because of these capacity reductions, could be supportive of better yields. Aaron?

Thanks, Andrés, and thanks for the question, Pablo. As it pertains to fuel recapture, in the international space we have great recapture across the board, particularly in our long-haul widebody network, and that is about 40% of our capacity. The fuel recapture initiatives were implemented swiftly and in large chunks and have been in place for the last few weeks. With the increase in fares for fuel recapture, we have been watching demand very closely. After a couple of weeks of sales at these new levels, we have not seen any cracks in demand in any of the international markets where we have sustained fuel increases. On the U.S. transborder, about 22% of our capacity, we did have some disruptions in the quarter that impacted U.S. point-of-sale demand. We have gotten through that, and from a recapture perspective we have had quite strong recapture, and demand is holding up. There is probably some long-term softness in U.S. point of sale, but we have made up for that in Mexico point of sale, so transborder U.S. is also holding strong. On the 50% fuel recapture target for the second quarter, with initiatives already in place, we probably need a little bit more to get all the way there, but the lion's share of increases that have stuck will get us to those targets, subject to fuel volatility. Two additional data points: when the conflict in the Middle East started in late February, early March, we had about 80% of the quarter's tickets already sold, given Easter fell in March 2026 versus April in 2025. That reduced our ability to pass through for the quarter. And our ATL on average is 35 days, so once you get to the new cycle, that is when you can translate higher jet fuel prices to ticket prices as you renew your air traffic liability.

One moment for our next question, please. Our next question comes from Duane Pfennigwerth with Evercore ISI. Please proceed.

Maybe just a follow-up: can you comment on the amount of 2Q that was already sold before the fuel spike? I assume as you move forward, you will have a better ability to raise yields. And then from a network planning perspective, as you are flexing down, what are the types of markets that are easiest to cut in this backdrop? And maybe you can speak a little bit about the likelihood and timing of slot waivers in Mexico City, if you even want them. Thank you.

Yes, Duane. That is absolutely correct. We kind of picked around mid-March as when the fuel recapture initiatives really took hold. For the quarter, we were booked about 40%. At present, we are closer to 60% booked for the quarter. So you are right—about half the quarter was booked before the fuel recapture initiatives were in place. That is part of the staggered recovery of fuel recapture; into the third and fourth quarters, even with initiatives that have stuck and as long as demand continues to hold up, our recapture will grow as a larger percentage of bookings come at the new levels. On the network, Mexico City is the easiest place to target. We have some point-to-point flying not part of our hub, and that was the easiest to pare down, with a focus on driving a return on cash cost. In our hub at AICM, we also have some opportunity to cut, and we have, focusing on markets where we can get some recapture. If the markets are not covering cash and returning on cash, we can pull those back.

On slot waivers, let me stress that our top priority—and we will never put that at risk—is to keep our slot portfolio in AICM. We are in a great position to navigate uncertainty in the industry, so that will not be put at risk. If we are able to get some waivers and certain flights do not cover cash if the conflict continues, we will adjust, but we will never put at risk our slot portfolio in AICM. One example of what we have reduced that contributes to this half-point reduction in capacity is that we will not be flying Atlantas and Ixtapa-Zihuatanejo, which was not contributing to cash and is outside Mexico City. We continue to monitor those types of flights and we will not hesitate to cut and not fly them, with the top priority of keeping our slot portfolio in Mexico City.

Thank you. Our next question comes from Michael Linenberg with Deutsche Bank. Please proceed.

As we start thinking about your supply plan for the year, you were down in March; you are up only slightly in June; we are already starting to see some cuts on routes in the third quarter—we can see them in the schedules. You have cut some from Guadalajara, etcetera, some non-AICM markets. How should we think about the capacity plan this year? Are we going to be closer to zero, or where are we with respect to planning? And then second, there was a proposal floated to potentially cap domestic fares in exchange for reduced airport costs. Is there any substance to that?

For the full year, Michael, our original guide was 3% to 5%. What we are looking at right now is closer to probably 2% to 3%. The driver of our growth for the year is in our widebody network. We are taking deliveries this year, and widebodies for us are incredibly profitable. The capacity is coming in Barcelona, which is a new market for us, and other flying we are going to do in Europe. Even at current fuel levels, the profitability is extremely high for us. If market conditions prove that is not economical, we always have the ability to pull that back, but at this point, even at these fuel levels, canceling that flying would hurt our P&L.

To complement what Aaron was saying, as we have stressed in the past, we have huge operational leverage going forward. To fund the growth we originally planned between now and March, we are relying on the planes that we received, particularly in 2025. If we reduce our growth from 3%–5% to, say, 2%–4%, we are not bringing any additional shells to fund that, so we are in a better position. Given this was early in the year, obviously we needed to hire the crews for that growth in the second half. If we do not grow, we will not hire those crews. We are adjusting; we will not put pressure on the P&L. Regarding domestic fare caps, there is nothing that we see as a threat. As you know, in many countries, congress is always active and looking at potential legislation. We, like other airlines, are very active explaining how such measures, rather than helping the consumer, end up being worse for them. As we stressed in our initial remarks, the pass-through has been reflected more in the international than in the domestic market. You have not seen pressures on yields in Mexico’s domestic market because of oil prices, despite the fact that jet fuel is the only fuel that is not subsidized in Mexico—gasoline and diesel have ceilings—but in the case of jet fuel, it is a free market and we pay international prices.

Thank you. Our next question comes from Filipe Ferreira Nielsen with Citi. Please proceed.

Hi everyone. On SEO—especially SEO availability—you discussed the strategy behind capacity and how you are seeing international long haul being very profitable. Are you seeing any constraints in terms of availability or shortage anywhere, especially in long haul? We have been hearing about constraints in Europe and Asia. Any high-level views on how this could impact your plans there? And a second question on the fleet plan: as you adjust capacity, are you primarily reducing aircraft utilization, and how should redeliveries and utilization play out as you adjust capacity?

We are monitoring the situation very closely. In the domestic market, Pemex has the ability to refine jet fuel, so we source a significant share of our domestic fuel consumption locally, and we do not see any risks there. In Europe and Asia, we are hearing about potential shortages. One advantage of working very closely with Delta, being a global airline flying everywhere, is that we are working together to make sure that we have the necessary fuel going forward. With the information we have today, for the airports that we fly to in Europe—which are the main airports in the region—we are not seeing potential fuel shortages in at least the next eight weeks, the remainder of the quarter. If the conflict continues, maybe it is another story, but in the short term we are fine.

As Andrés mentioned, we source our fuel together with Delta in international stations, and suppliers have confirmed to us the availability of fuel for the next couple of months. If conditions continue to be complicated, then we will keep this space under our radar, but right now we think we have enough fuel to be operative in the next couple of months. On the fleet plan, we had a handful of deliveries coming this year. We are expecting another two 787s that will be delivered in the next few months, which will bring increased capacity in international long-haul markets, and we have three 737 MAXs that will be delivered during the year. We are planning to redeliver one NG this year, and we are evaluating if we will redeliver more aircraft next year. We would not have additional redeliveries this year, given the extensions that we executed last year. We plan to end the year with around 170 aircraft, from 165 at the start. As we have stressed, the bulk of our fleet expansion came in 2025 when we received close to 20 new shells.

Thank you. Our next question is from Jens Spiess with Morgan Stanley. Please proceed.

Thank you. Based on the 2Q guidance, what jet fuel price are you assuming to reach that guidance, so we can play around with different assumptions?

Hi, Jens. We use a range, roughly around $4 per gallon, between $3.80 and $4.20. The midpoint would be around $4.

Thank you so much. I will turn the call back to management to see if they have any questions online.

We will take a couple of questions from the webcast. The first question is regarding free cash flow in the second quarter—what would be our expectation? We talked about the guidance in terms of profitability for the second quarter, but in terms of cash flow, we are coming from a first quarter that was very positive in terms of cash flow generation. Traditionally, the first quarter is the weakest of the year, and we were able to increase our cash balances in the first quarter. Going into the second quarter, we see a couple of forces at play. On one side, we expect peak pressure coming from the increase in fuel prices, and this pressure will have an impact on P&L and cash flow. On the other side, the second quarter is traditionally the strongest for us in terms of cash flow generation, as our passengers tend to purchase their summer travel in May and June. We are anticipating that these two forces will kind of cancel each other out, and we do not expect any material variation in our cash balances at the end of the second quarter—basically a flattish outcome. If conditions normalize in line with, for example, the forward curve that we are seeing, the third quarter should be closer to the normal seasonality that is basically flattish, and the fourth quarter would be a positive quarter in terms of cash flow generation.

Thank you so much. I will now turn the call back to Andrés Conesa Labastida for closing comments.

Thanks again for joining the call. Rest assured that we will be working every day to improve the resilience and profitability of our business model. We are on the right track; we are going to do well. As soon as we have more clarity on the full year, we will not wait for the next earnings release—once we have clarity, we will release full-year guidance. For now, we will stay with the second quarter, but as we have it, we will let you know. Thank you again. I am looking forward to seeing you soon.

And this concludes our conference. Thank you for participating, and you may now disconnect.