Should the lessor negotiations that are now largely – that are now resolved impact this part of the balance sheet? And should that have any ramifications for cash flows over the course of the next few months?
John Rodgerson: Thanks, Neil. The lease payments that we provided on the presentation, they do reflect an exchange rate of $4.82, which is the exchange rate at the end of Q2. So they are all dollar-denominated, and they do fluctuate with the exchange rate. So if the is roughly where the exchange rate is today, if you see further strengthening of the real, those numbers can come down. If you compare those numbers to the communication that we sent out last quarter, which also had the breakdown of the ’23 and ’24 lease payments. The changes that you see there are mainly from FX but also from additional aircraft that we took delivery of in that time frame. But those numbers should be the latest information with the latest FX, right?
And then in terms of security deposits and maintenance reserves, yes, those were part of the negotiations with the lessors as well. There is a change there. Normally, you would see that balance increasing over time as we increase the size of the fleet and also has the fleet aged. Right now, you should see them staying stable. And then as we execute on maintenance events or return aircraft, those maintenance balance will go down. It will take a few years for those maintenance balance to go down, but they will happen because we negotiated that we won’t add to the balance of the maintenance reserves, and then we will drop on those maintenance reserves as the maintenance events are delivered and the aircraft are returned. I think that’s one big thing, big difference that is not reflected in the market is that not only did we do mark-to-market on the leases, not only did we deal with the COVID-related deferrals, we also dealt with security deposits and maintenance reserves on a going-forward basis as well.
So that’s not a P&L impact, but it’s certainly a cash impact over the next five years. And so as we became a much better credit profile for the lessors, they understand that, that’s good for us. And so there’s a reduction – significant reduction going forward in those payments. And so that’s additional benefit to our cash flow over the coming years.
Operator: All right. Moving on to the next question. It will come from Lucas Barbosa, analyst Santander. Lucas, we’re going to open your microphone, so that you can ask your question. Please proceed.
John Rodgerson: Lucas Cates’ question is online. So I think I can read it. Essentially, he would like to know more on the CapEx line related to aircraft and maintenance and checks it was around BRL140 million this quarter. In 1Q ’23, it was much lower. And in 2Q ’22, it was lower as well if there was any concentration of maintenance this quarter and what these levels should be in the coming quarters. Yes, I think especially 1Q was particularly low. I mean we were preserving cash. We knew that we were going to have negotiations with lessors and OEMs. We’re going to have new commercial terms with both of those groups of stakeholders. And so I think it was more that 1Q was low. I think 2Q is still low. Like I said, I think you should project in total CapEx, which includes this line, something between BRL1.8 billion to BRL2 billion on a go-forward basis growth.
