Stephen Trent: Okay. Very clear Celso. Thanks very much.
Operator: Our next question comes from Savi Syth from Raymond James. Please go ahead with your question.
Savi Syth: Hey, good morning everyone. Just on the capacity, could you talk a little bit about how you see that capacity kind of growth between domestic versus international? Do you need to open back up for the international markets as well, recently?
Celso Ferrer: Hi, Savi.
Savi Syth: Hey, Celso.
Celso Ferrer: We are going to, I mean, on the domestic side we are just growing to the slightly above to the levels, we had pre-pandemic. So if you look at the fourth quarter, we are still below. But as we go through the – this year, we are ramping up the capacity in the domestic market very cautiously to maintain the unit revenues that became very crucial for us. And international markets, most of the growth was already implemented at this point by the end of the year. Like I said, we launched the more frequencies to Orlando, more destinations from Brazil to Miami. And then, what you’re going to see is the full year effect of the international markets that we just resumed. So it’s going to be a significant growing international and some markets we have already operated before pandemic, we are approaching very cautiously to understand what would be the best time to restart.
Those markets, like, Santiago, Lima, we normally fly as a utilization flight. So we fly – so we may we may open during the year as we see those markets becoming healthier.
Savi Syth: That makes sense. That’s helpful. Thank you. And if I might on the ticket tax, like, is there an assumption, is there is a guidance to reflect kind of the ticket tax break? And does that assume any kind of continuation here?
Celso Ferrer: No, Savi. We are not assuming nothing from the tax and also we are not assuming anything on the fuel pricing so.
Savi Syth: That’s really upside, perfect. All right thank you very much.
Celso Ferrer: It’s going to be an upside. Yeah.
Savi Syth: Perfect. Thank you.
Richard Lark: Let me just insert, operator, let me just insert – because we have questions from the platform that people submit on the platform. And let me just, let me just leave one or two of them in before we go back to the queue on the people that are on live. We have a question here from Chris at Cowen, which asks, can you provide how forward bookings are looking. Talk about VFR and corporate passenger traffic. Celso?
Celso Ferrer: Yeah, so, bookings are performing very well at the beginning of this year. Like, better than the – on what we had in the fourth quarter as corporate is growing. We have now achieved more than 100% of the revenues that we used to have on the corporate, segment but not the same in number of passenger. So we are still around 72 to 75 depending on the month, depending on the week on the 70% to 75% level of in numbers of passengers and the corporate segment. As we grow those passengers, the huge, there is a room to improve the users. Those passengers, they book on a short ABs, so VFR demand and Leisure demand stay very resilient. That was kind of uncertainty during the pandemic. Those segments were the most important ones and the good news is that those segments stayed even in flights like in the shuttles that we used to have less leisure or less VFR.
We have now a significant portion of those slides with helps fares. So it’s a legacy from the pandemic that we will stay. The combination of these legacy with the rebound on the corporate, it’s going to be very helpful. And we are not assuming the whole upside. We are taking a cautiously step when we announce our guidance here.
Richard Lark: Okay. Another question regarding the platform, I’ll just read here and I think I’ll send it to Mario to answer. Despite a reduction in capacity, both non-fuel cash guidance of 3.6 cents is retained for 2033. Question is has GOL found savings to compensate the capacity decline, or is there another factor preventing cash guidance Rising with lower capacity?
Mario Liao : Yeah, thank you. This is a very good question, because it speaks how we’re managing this company, in terms of cost perspective. So since 3Q, €˜22, the company already achieved that level 3 6 – 3.6 and has been maintaining around this – in this fourth quarter. Just coming down from high 4s in terms of cash consuming as far as in 2021 and low 4s in 2022. So, not only related to potential capacity dilution as we preserve capacity and in this year, in terms of our guidance, we are expecting to recover most of the SKS that has been preserved since 2018. But there’s also some important drivers that has been leading to that cost reduction. So, there’s main three items that are more important to highlight. The first is, our discipline in terms of controlling the workforce.
So that the number of the total employees where we are achieving with the same, almost the same 2019 SKS right now in the fourth quarter, but we’ve – so just coming from an almost 16,000 to 14,000 right now. So, we have been able to reduce the payroll cost and compensate more than the effect or the impact of the cumulative inflation that impact the underline. So, second as you know, we have been preparing to provide a better visibility to the market. Especially in terms of the maintenance cost that is going to be impacted through the fleet’s transformation. So we recorded back in 2021 results almost R$1.6 billion of provisions for maintenance that help this maintenance lines to be outperforming now in the P&L. So, that can keep this line much more visible and below what has been the historical trend?
And also, as we were, still operating some of their credits doing the storage and we are preserving that liquid by not deciding to increase capacity or just focus on capacity. The third item is related to depreciation, because since we are doing a lower capitalized maintenance that has been translated also into a lower depreciation. And those are the three main items that is, the company is managing in order to keep that cash in this. And as we were probably, the only airline that was €“ or is still preserving that capacity and as long as towards the second half of the year, most of the capacity for 2023 were going to be expected to be linked to the high seasonality of the second half of the year. That can provide potentially represent, a better efficiency and productivity in terms of our cost control.
Capri can you go back to the queue, please?
Operator: Our next question comes from Pablo Monsivais from Barclays. Please go ahead with your question.
Pablo Monsivais: Hi guys. Thanks for taking my question. My question is, a bit on the medium-term outlook for you since you have a pretty good cost advantage and deals are high. And we expect those used to be high for the next foreseeable future. How would you – what’s your game plan in a year from now. Do you think you’re going to be more aggressive in terms of capacity or pricing to take advantage of your high yields and low cost that you have to out-compete your peers domestically? Or how – what’s on your thoughts, or how to compete in the medium-term. Thank you.
Celso Ferrer: Yeah. Hi Pablo. Thank you for your question. And as you said, we have the cost competitive advantage and that’s this is the reason why GOL became the most important low-cost in the region. And this is what we want to resume. So we want to preserve the revenue environment as much as we can, especially on the domestic market, which is still very volatile. And we want to expand our growth through the international markets, especially, next year and on. So with the synergies, we will have and with the extra range with on the 737-MAX we expect to grow next year more on the international routes with long sectors that will dilute even further our cost. So, we are – of course, we have potential to grow. We have more planes.
We have the cost advantage as is that, but it’s really, really important for us to keep the capacity spleen that is that we have been keeping since the beginning of the crisis into actually. And we want to maintain and make sure that our domestic is going to be growing as the market grows. So we still see room for health growth in the Brazilian market. But we also want to explore even further the international markets and as no low-cost always win.
Pablo Monsivais: Perfect. Thank you very much.
Operator: And our next question comes from Nick Frank from Jeffries. Please go ahead with your question.
