The second half is where most of that profitability comes from because that’s how our seasonality works, as you pointed out. The second quarter is the weakest quarter in the year. And now we’re entering a third quarter, which is going to be better than the second. And then a fourth quarter that’s going to be better than the third, which is something that’s very exciting. And still, in terms of EBITDA production, we are at our record, as we pointed out, but there’s still upside on the margin, right? We are still working to recover margins. Our 2Q margin was still lower than 2Q ’19 and even delivering on the BRL5.5 billion EBITDA for the year, it will still be a lower margin than the margin that we had in 2019. That’s why we’re excited about ’24 and beyond because we want to get back to that EBITDA margin that we had in 2019.
And we think we can go even further, right, because we didn’t have the performance in 2019 of the business units that we have today. We didn’t have the 80% plus of next-generation capacity – we didn’t have Congolese. So there’s a lot of opportunity for us to go even beyond the margin that we delivered in 2019.
John Rodgerson: And you’re also – I referenced it in the script, but we now have the full focus of our management team on running the business as opposed to fixing the balance sheet, right? And so as you look at how do we fully optimize to Azul, how we fully optimize the utilization levels of the airline? How do we get to extract as much out of all these business units? And so that’s how we’re going to move forward. But again, as I said previously on the fleet plan question, there’s a lot of E2s coming. And those two are very profitable. There’s more A320 is coming. We’re exiting out. We still fly more E1 flights a day than we fly E2 flight today, right? So that’s a significant amount of upside going forward.
Alex Malfitani: Yes. And on the personnel side, let me give you some guidance. I think will help you with your estimates for the rest of the year. It is a tough comp in 2Q because of what happened in 2Q ’22. We had phantom options as part of our long-term incentive plan, and they are very volatile. That’s one of the reasons that we are going back to regular options as part of our long-term reset. But last year, the stock price went down in the second quarter, the market was getting nervous and that actually reduced our personnel expense because we recognized a reduction in the long-term incentive expense accrual. That should not happen anymore going forward right now with actual stock options as part of our long-term incentive, you just calculate the cost of those options and then recognize that over time, the volatility is a lot lower.
We’re also going to get economies of scale, right? Because obviously, we’re going to fly a lot more. Avi talked about the increased utilization we’re going to get in Q3 and Q4. So you can look forward to a reduction in labor CASK from Q2 to Q3 and Q4, probably in the mid-to-high single digits. You will see our labor CASK going down into the back end of the year.
Gabriel Rezende: Thanks, Alex. That was very clear. Thanks.
Alex Malfitani: Thank you.
Operator: Okay. So let’s move on to the next question, which will come from Savi Syth, sell-side analyst, Raymond James. So I think you were going to open your microphone, so that you can ask your question. Please proceed.
Savanthi Syth: Hi, good morning, everyone. I was curious on the domestic market. I appreciate the color you gave Philippe on the international. But on the domestic market, I was wondering if you could provide a little bit more color on leisure versus business. And I’ve noticed kind of capacity as being mostly kind of trimmed as you get closer in. So just updated thoughts on kind of capacity growth here in the domestic market.
