Helane Becker: Because your costs are going down, but won’t you have to reduce your ticket prices to the customer?
Jaime Pous: We’re not affected by any of their changes.
Helane Becker: Okay.
Jaime Pous: Our pricing structure is not being affected by any of their changes.
Enrique Beltranena: The two-hour charge, the pass-through charge that we put into the ticket price, so the total ticket price for the consumer that they pay on our website is going to be reduced, but not our actual fare or ancillary revenue.
Helane Becker: Got it. Okay. Got it. I understand what you’re saying now. Thank you. And then just on V Club members, I heard you say that, I think, membership doubled in the past one year, which is very impressive. Is there a limit as to how many members you’re willing to accept into the program, or is it kind of an unlimited number?
Holger Blankenstein: No, Helane. We don’t have a limit on how many V Club members we would like to welcome to our program. Ideally, the more members we have, the more captive audience we have and the more repeat business we have. So, we highly welcome this development.
Helane Becker: Okay. Thank you. Thank you very much.
Operator: Thank you. One moment for questions. Our next question comes from Michael Linenberg with Deutsche Bank. You may proceed.
Michael Linenberg: Hi, good morning, everyone. I guess, out of your fleet of 125 airplanes, how many Airbuses are now grounded? And as you think out over the next 12 months or so, do you have sort of a rough sense of how many airplanes will be on the ground at any point in time?
Enrique Beltranena: Yes. As I said, Michael, we have 52 neo engine aircrafts. So, which is kind of half of the fleet, okay. And given that this is now a revision every certain number of cycles, 2,800 cycles for the A321s and 3,800 cycles for the A320s, most of those aircrafts will go through the revision, through the preventive revision.
Michael Linenberg: Okay. And how many are on the ground? How many do you – or maybe none are grounded, maybe?
Enrique Beltranena: Today, we have 16 aircraft grounded.
Michael Linenberg: Okay. And does that number – Enrique, as we move to the next 12 months or so, does that number gets better or is that kind of a rough guide?
Enrique Beltranena: It depends on every week, okay. That’s why it’s so important. I mean, I think, Michael, what we’re trying to do is we’re thinking on our customers and we have to publish an itinerary and a schedule, which is solid and it’s reliable and it’s not changing for the customers. That’s why on the other side, I mean, for us, it’s really important to speak in terms of ASMs, because we’ll have aircrafts going in, aircrafts going out, engines going up, engines going down, and it’s going to be really variable. So, I don’t think it’s – it’s important to speak about aircrafts or engines for you guys who make your prognosis based on ASMs and for the customers who need a reliable schedule. So, I think the most important way of managing this is managing through a prognosis based on ASMs.
Michael Linenberg: Okay. Okay. I agree. I just – I’m trying to get the sense on knowing that we cover the lessors, I’m trying to get a sense of how many airplanes you may have to extend the leases on, and that’s actually my second question, which is, in your conversations with the lessors, what sort of response are you getting on the cost of the new lease? Because what we’re hearing is that with narrow bodies scares and everybody asking for extensions at the same time and interest cost very high, that in some cases the response they’re getting from the lessors is a much higher monthly rental price under the extension than what they were currently benefiting from, despite the fact that the airplane is a lot older, right? It should be a lower lease rate, not a higher lease rate.
So, that would be my second question, is just on your early conversations with the lessors, if it – does it appear that these new extensions would be a bit more expensive than what you currently have? Thanks for taking my question.
Jaime Pous: You’re welcome, Michael, this is Jaime.
Michael Linenberg: Hi, Jaime.
Jaime Pous: In types of numbers, we will be extending 18 aircraft that were supposed to be redelivery in 2024 and 2025.
Michael Linenberg: Okay.
Jaime Pous: The new rent environment has changed due to the situation. Still, rents will be lower than the neo fleet that we have. Extensions will range between 24 months to 48 months. Normally, lessors prefer that the airline that is already operating, the plane – extends the plane rather to give it to someone new, because they don’t need to accrue any expenses in fitting the airplane for the other airline. But you are right, the pricing environment has increased if you compare from early this year to today.
Michael Linenberg: Great. That’s super helpful. Thanks. Thanks, everyone.
Operator: Thank you. One moment for questions. Our next question comes from Rogerio Araujo with Bank of America. You may proceed.
Rogerio Araujo: Hi, gentlemen. Thanks for the opportunity. I have a couple here. The first one on the new margin guidance provided. It’s – it simply implies a very strong EBITDAR margin for 4Q, despite the higher oil price, around 33%, 34%. Is that correct? And what is driving that? I can do the other following that answer. Thank you.
Holger Blankenstein: So, I’ll take the first part of that question. Thank you for that. And so, in the fourth quarter, we are expecting a high single digit year-on-year growth in total revenue per available seat mile, and we believe that those improvements will mostly come through better ancillary revenues following the same trend of improvements that we have observed year to date. And I remind everyone that we are entering the – one of the best quarters of the year with the high season of December and November. In there, we’re also leveraging the return of Cat 1 in December. And we will grow in the U.S. Mexico market as we already explained. And I remind everybody that the guidance that we’ve given already includes the affected aircraft through the Pratt & Whitney engine situation. So that capacity guidance we talked about already includes that number.
Rogerio Araujo: Okay. That’s very clear. Thank you. My second question is regarding the financial compensation. So, you guys mentioned $6 billion to $7 billion in financial compensation, estimated 80% coming to compensate the airlines and 3,000 engines. So, can we do likely – if you do an average compensation by engine, do we reach something that is close to a best guess. And is it going to be a similar compensation for each engine of all these 3,000, or it’s going to be very different across airlines?
