Unidentified Analyst: Hi, this is a Nicholas from Jeffries. Thank you guys for the call. Congrats there on the results and transformative liability management transaction. Just had two follow-ups. There was one point that was not clear in Michael’s question at the beginning. So, on the capital structure pro forma, the buyback was R$1.1 billion. I think it’s actually R$1.077 of notional of €˜24, ’25, €˜26 and PERPS, and the new FSNs is R$1.4 billion today, right? It’s not up to, it’s just, right now it’s R$1.4 billion of FSNs, which are wholly-owned by Abra. Is, is that correct? I just wanted to confirm that point.
Celso Ferrer: That’s correct. Yes.
Unidentified Analyst: Okay. And then on, looking forward, right for GOL and I’m sure we’re all looking forward to ask questions and to get to know, the Abra story. But when we look at the remaining GOL bonds, most of which are unsecured except for the €˜26s. Can you can you give us a little color how we should think about those? The stubs kind of different options or how the company is thinking about addressing the remaining €˜24, €˜25s and eventually the ’26? And in particular, I ask because of the springing maturity of the new 28s. So, just wanted to clarify there how we should think about those remaining GOL bonds.
Richard Lark : Yes, on the July 24 maturity, which is what is that about 16 months from now, is about R$75 million dollars leftover. And of the mid 25 maturity, that’s about 340 or so million dollars leftover. So that R$400 million of 24, 25 maturities. You have the R$75 million that matures in July of 2024. Is that what you’re worried about? Or maybe €“ saying the question.
Unidentified Analyst: I mean, very much not worried about it, because the amount is small and the liquidity position is significantly improved. But just mechanically, right, because the understanding is that any repurchases today are capped at a certain price. I think it’s 50 cents and
Richard Lark : No, no, I am sorry to interrupt. No, I think you are referring to the – I understand what you’re saying, but no, there’s no all the €“ GOL just continue to pursue what €“ it was under the past. I mean, we’ve done bond buybacks. We’ve done different types of liability management, operations. GOL has lot of different tools on its balance sheet in terms of capital markets, insurance, obviously yet that market access which is not something that has been available to the company since the war started at the February last year. But the company will just continue to manage around those maturities and with the available tools that it has.
Unidentified Analyst: Perfect, that’s great. And I’m sure that will continue to be well received after the company has extended the runway here and
Richard Lark : And let me just okay, sorry, you cut out there.
Unidentified Analyst: Just said that that’s great and I’m sure those will continue to be well received as the company has extended runway and bolstered liquidity. The last one was just on the, on the equity. The listing of Abra versus a potential delisting of GOL in the future, kind of, how should we think about that for the perspective of the minority equity that is not owned by Abra?
Richard Lark : Oh, we are not – this is not the subject of this call Nick, okay? We’ll talk about that in the future. Let me just insert you we only got a couple more minutes here. Let me just insert a couple quick questions. Make sure we get everybody that asked on the webcast. Just a couple of quick questions here. One was how these secured amortizing notes that were issued, the leasing companies that €“ here will affect cash flow. The quick answer there, we mentioned that these notes have a very low cost of capital for GOL. And also have a grace period of 12 months, which has a big impact on cash flow to ’23. And GOL already had the lowest least stats among competitors, and that transaction gave additional relief for GOL.
But also, the lessors that participate in that were secured by, are secured by top tier collateral. Another quick question, let us read the question. The fleet transformation program is being affected by the bottlenecks at OEMs. Will these delays force the company to review its plan? Okay, well, we had previously planned to end last year with 44 I mean, in December of €˜22 with 44 B 737-MAX in the fleet. We finished with 38. And so, obviously, we’ve – GOL, as, you know, being affected by the OEM bottlenecks which are not just affecting Boeing operators. They are also affecting Airbus operators, that’s mainly due to logistics problem at all the manufacturers that are delivering aircrafts. And so that’s why we, we’re forecasting lower number of Maxes than previously for 2023, which would reach 53 by this December.
And so we’re still playing catch-up given the pandemic and given the MAX grounding, going all the way back to 2019 and those and those other issues that and we’re playing catch-up on that. Boeing has been working very closely with us in order to mitigate this and we’re confident that our long-term partnership with them will continue to work as we work together as partners on that. And then just one final, just to make sure we fit them all in by the top of the hour here, I’ll maybe extend for another couple minutes here. Just one last question, which I’ll send to Mario which is from He says you mentioned about increasing corporate traffic, actually maybe I’ll send this to Celso. What’s the main explanation on yield expansion quarter-over-quarter?
How is corporate traffic, comparing with pre-COVID-19 levels? Regarding yields do you see risk on achieving the additional yield increase implied by your guidance. How these yield increases should happen along 2023? And maybe I’ll just I’ll just chime in there before you speak Celso. There was no yield increases in the guidance. What you guys have to do when you look at, you have to be careful with the year-over-year comparisons. We mentioned this in the last call. We did when we had our, we didn’t change our €˜23 full-year guidance. We just provided some Q1 numbers. We just reaffirmed it, if you will. And we provided that in our last call and we made a point to explain that when the war started, at the end of February, there was a massive increase in oil prices in March April and we did a – we effected a significant shift in yields up in the second quarter.
And so, you need to strip out the Q1 of €˜21. Sorry, yeah €˜22 from your comparisons in the year-over-year, otherwise you won’t be able to do the comparison. And if you take the yield progression going forward, if you would kind of go Q2, Q3, Q4 and compare that to our, look at the data that we’ve provided in the releases and compare that to our €˜23 guidance, stripping out the Q 1 of last year, you’ll see reductions. I mean, for example, I think, if you take the nine-months comparison, last nine months versus of last year versus this year’s like an 8% reduction in yields. If you just look at the second half, it’s around a 10% reduction. And if we look at the Q4 comparisons, it’s like a 12% reduction. And so, that is, that is not correct.
And so your question on, do you see some risk in achieving the additional yield increase implied by your guidance? That’s not a correct question. There’s, there’s yield reductions in there which are also necessary to stimulate demand. And so maybe I €“ it looks like I answered the questions Celso. Okay, so we can skip that. Let me just check here real quick. We just make sure we got everybody’s questions. I think we were able to get through everybody’s questions. And if there were any questions unanswered, please shoot us an email to the GOL IR department and we’ll give you €“ we’ll get back to you on that. So, we can wrap up the call. And we can wrap up the call and if you have any closing comment Celso?
Celso Ferrer: Yeah, thank you. Thank you all. And I hope you enjoyed today webcast, and like Richard said, our investor relations and communications teams are available to speak with you as needed. Thank you. Thank you very much.
Operator: Ladies and gentlemen, this concludes GOL Airlines conference call for today. Thank you very much for your participation and have a nice day.
