As I’ve said several times, this management team is now focused on running the business. This third quarter, we showed once again two quarters in a row, we have the lowest CASK in the country. That’s with flying ATRs, E-Jets and A320s, right? And so this company is capable of much, much more and kind of look at where we’re at today. And I’ll let Alex kind of walk through the details on the cash for next year.
Alex Malfitani: Yes. Thanks, Jon. So then there is a little bit of working capital help. Yes, because as we grow, we will be selling an airline that’s bigger than the airline that we’re flying, right? So throughout these years where we’re having the rate of growth that we are guiding to, you can expect that the cash inflow from operations should be a little bit higher than the EBITDA, right, whatever the EBITDA number is and we updated our EBITDA guidance for 2024 as you saw. In terms of CapEx, we haven’t given guidance on CapEx. So I can’t give you a number. Conceptually speaking, you can see — you can kind of revert back to all of the concept of the capital plan that we put out. What the objective of that was? Right, was to — the CapEx and the leases were primarily the target of us trying to reduce it out and exchange it for a 2030 bullet note and an equity structure, right?
So you will see the effects in CapEx from that restructuring plan. But we’re in the middle of our budget right now. Normally, we don’t put out 2024 guidance until we finalize the budget. We’re very excited about what we’re seeing here on the demand side. So we went ahead and put out 2024 guidance, we may provide additional details as we finalize our 2024 plan.
Daniel McKenzie: Yes, very good. Final question here, I guess, my last question. I’m wondering if you just expand a little bit on the cargo operation. To what extent is it profitable, either more or less profitable relative to the core airline?
John Rodgerson: Yes. Hey, Dan, we like to have a balance of about 80% cargo in the belly, 20% cargo on the dedicated aircraft. As you can imagine, the belly cargo is extremely profitable because you’re piggybacking on the airline itself, crew cost, fuel, navigation, all that kind of stuff, right? The dedicated margins are not as profitable as the belly, but they are important to complement your product offering, heavy palletized cargo, industrial customers, even manufacturing customers. So, we like to have that 80/20 mix. We think it’s good risk management overall and kind of yields good margins overall. But the belly part is definitely extremely profitable, given the fact that you’re piggybacking on our 900,000 flights a day.
Daniel McKenzie: Okay. Thanks guys.
John Rodgerson: Thank you, Dan.
Operator: We will now close the Q&A session. And I will give the floor to John to make the final remarks.
John Rodgerson: I want to thank everybody and we’ll be communicating to the market shortly once we have our audited financials out there. I want to thank everybody for all the hard work. I look forward to seeing everybody at conferences. Feel free to reach out to any of our management team and thanks for all your support.
Operator: Thank you. This concludes the Azul audio conference call for today. Thank you very much for your participation, and have a good day.
