José Montero: Yes. And Bruno, in terms of the impact on RASM is because we had to close out flights, we had to cancel flights, and we were not able to sell the last remaining seats on many of our flights because we had to re-accommodate passengers. So that’s where that impact occurs in a month. That is very strong for us.
Bruno Amorim: That makes sense. Thank you very much.
Operator: Thank you. One moment. And our final question for the day will be coming from Duane Pfennigwerth of Evercore. Your line is open.
Duane Pfennigwerth: Hey, thanks. I appreciate the time, and nice job. So just on your 2024 unit revenue guidance, it is well ahead of what we were estimating. How do you think about the trajectory over the course of the year? I mean I assume you’re influenced by what you have visibility into, which is the early part of the year, but maybe just big picture. How are you thinking about kind of first half versus second half change implied in the guidance?
José Montero: Sure, Duane, and I’d say that there’s a little bit of noise in the first half of RASM because of MAX, again, going back to the MAX issue. So I would say that it’s more, I’d say more robust towards the second half of the year than in the first half. There’s also some seasonality involved there, but there’s I would say, more, let’s say, higher level of RASM in the second half than the first. And — but of course, limited visibility in the second half of the year in terms of how ultimately demand behaves. But that’s kind of how we’re seeing it right now.
Duane Pfennigwerth: Okay. And then maybe just a longer-term question. From time-to-time, there are kind of airport infrastructure projects that can be gating factors on your growth. Can you just speak in broad strokes? How much headroom do you have with your current gating footprint? And as we look out two, three years down the road, are there projects that we’re going to need to see happen? When will airport constraints be an issue for you, if at all?
Pedro Heilbron: Right. Yes. Well, if we continue growing at the pace we hope to continue growing, there will be infrastructure limitations eventually, let’s say, three — in the three to five-year timeframe, but there are a lot of initiatives the airport authority can adopt to fix that and increase capacity beyond that term for the next 10 years. So we have the data, we’re working with consultants to update it, and it’s very doable. So we believe that the next government will have that top on their agenda. And again, it’s not significant what needs to be done. The investments are not — are very manageable and we could extend the capacity of the airport for many years.
José Montero: And Panama has had a track record of investing in its airport infrastructure over the years, so we expect that to continue going forward as well.
Pedro Heilbron: Yes, and not always like exactly infrastructure. Some of it is just managing the airspace and how the airport structures, its takeoffs and landings and all of that. But there are also opportunities with taxiways and fast exit and things like that, so it’s a very doable list of opportunities.
Duane Pfennigwerth: Okay. Well, we’re airline analysts, so three to five years is an eternity from now. You might as well have said 100. It doesn’t sound like an issue. So thank you for the answers.
Pedro Heilbron: All right, Duane. Thank you.
Operator: Thank you. This concludes the Q&A session. I would like to turn the call back over to Pedro for closing remarks.
Pedro Heilbron: Thank you very much. And thanks to all for participating in this call. I want to summarize a few things that I mean maybe we didn’t go over all of them, but it’s important when we think and we talk about Copa’s performance and high operating margins, and we got at least one call from some of you, I mean, more than one question related to our margins and our performance. And so I just want to summarize a few things, which I think are very, very important. We’re a full service carrier with very low CASM-Ex. And this is something that we’ve been working at and building over the years. It’s not an overnight — we’re not an overnight sensation or anything like that. This is hard work for many years. And we’re also always coming up with new things.
And the new thing now, which we talked about in the call is our distribution cost. We’ve been able to get our distribution cost way down, especially the — what used to be a burden, which were the GVS cost. So not only do we have now control over our sales channels, but at much, much better cost. And that makes us more competitive. It allows for better margins. We also have a very strong and efficient network which we continue to build and strengthen a very reliable product that clients want to fly with the best on time performance in all of the Americas. And on the revenue side, we keep growing our ancillary revenues with the right technology, much of it developed in-house. So we’re in a really good and strong competitive position to weather the ups and downs of this industry and continue having success.
Well, as Duane said, we don’t have to talk about five years and beyond, but for the next few years for sure, we’re in a great position. So anyway, this concludes our earnings call. Thank you for being with us and thank you for your continued support. Have a great day and we’ll see you next time. Thank you.
Operator: Ladies and gentlemen, thank you for your participation. This concludes the presentation. You may disconnect and have a wonderful day.
