John Rodgerson: Hi, Savi, absolutely. So yes, we feel really good about the trends that we’re seeing coming out of 2Q into second half seasonality. July, especially was very resilient in terms of flowing unit revenues and bookings as well. So in terms of demand, domestic demand, for example, the last four weeks, two of them, corporate volumes have been 100% of 2019 and – so this is the first time I can confidently say that we’ve actually recovered 100% of corporate volume. Now average fares are up 40%, 50%. So corporate revenue is up 43%. But in terms of volume, it’s very, very good to see that we’ve now recovered 100%, and this is a sample of four weeks – two out of these 4, they’re very close. In terms of pricing environment, I think the industry is doing everything correctly in terms of what needs to be done to take advantage of second half seasonality, obviously, the run-up in fuel as well.
Our booked average fares for the month of July were higher than last year. and that’s with the reduction in fuel year-over-year. Our booked average fares now are 30% above what we were seeing back in May. And so I think the trends are very positive. And finally, on the capacity side, as you correctly said, capacity is being trimmed. Year-over-year capacity in the second half of the year is actually lower than what we saw in 2Q. So we’re going to be coming into a favorable demand environment, a favorable pricing environment. The industry this year domestically is going to grow less than what the U.S. domestic market is doing. We’re going to grow about 3% versus 2019. 3% growth over four years. It’s about roughly half what the U.S. market is doing.
And that’s why we feel good about continuing to increase RASK. Last year of tough comps, all-time record raps but we think things are set up to kind of repeat that this year. So demand environment, very solid, pricing environment is solid and a favorable capacity discipline as well.
Savanthi Syth: That’s super helpful. If I might ask just I know the cargo environment has softened, but it seems like it’s still healthy. Just curious what the revised plan is for setting up the logistics unit that you were working towards?
John Rodgerson: Yes. Look, you’re right. It’s international cargo, especially that is weak, and you’ve seen reports from LATAM, Avianca, Turkish, Sing International UPS. It’s mostly international cargo that is down, especially on the yield side. Our domestic logistics business keeps growing. It’s growing about mid-to-high single digits, and that’s still very encouraging. And also remember that our freighter exposure is very, very limited. We have two 737 freighters and a couple of 4E-Jets here in Brazil. So all for domestic purposes. So we still continue to believe that Azul Cargo will transform logistics in Brazil. There’s still a huge opportunity in getting e-commerce out to the rest of the country. And so domestically, it’s still growing, not as fast as last year, but we’re still about 2.5x bigger than 2019. International is a challenge. It’s going to be a challenge, but we’re 85% domestic, and that continues to be our focus.
Alex Malfitani: And also, Savi, I think there was a boom post-COVID international that everybody got to ride that wave. But it’s the network we’ve built domestically, which is the strength of our cargo business, and that’s the greatest advantage we have. The fact that we fly to 160 cities in Brazil compared to 50 of our next closest competitor. And the majority of those 50 cities that our competitors fly to is really truck cargo, right? And so we’re flying all throughout Brazil, and that’s the advantage that we have.
Savanthi Syth: Super helpful. Thank you.
Operator: The following question will come from Michael Linenberg, sell-side analyst, Deutsche Bank. We’re going to open your microphone, Michael, so that you can ask your question. You may proceed.
