Thais Haberli: Mike Linenberg from Deutsche Bank also has some questions. The first one is a follow-up on the government’s support. He thinks it was going to be BRL1.2 billion credit line. He wants to know how it it’s going to be divided among the airlines and what will be the terms of the credit line?
John Rodgerson: Yes. So I don’t think it’s fully defined yet. But in our conversations with Brazilian government, they’re talking about roughly BRL6 billion to RBL8 billion divided kind of equally between the major airlines in Brazil. And so that’s what we’re looking at. Still ongoing conversations. We’ll be in Brazilian next week to discuss this again. And as I said, I think we’re getting some great traction. And this is very positive overall, reminding everybody there was no help given previously. And so this is an opportunity for the Brazilian government to help the industry grow. Helping the industry grow is helping Brazilians travel more, which is really good for the economy.
Alex Malfitani: And just to add, what John said. I think sometimes in the press, this is portrayed as a negotiation or a rescue package. And that’s, like John said, that’s not it. What I think both the government and the industry has seen is that Brazil has a huge potential and we want to unlock that potential. So we’re going after the root causes of why that potential has not been materialized yet, but we’re confident that we can work together and work at a few of these structural issues that this is going to be great for Brazil, great for the consumer and great for the industry.
John Rodgerson: And one thing Alex always likes to remind us, none of this is in our forecast. And so if we can reduce judicial claims, that’s upside. If we can get a better cost of capital, that’s upside. If we can get traction on fuel prices in Brazil, that’s upside.
Thais Haberli: The second question is an update on the Embraer’s deliveries. Are you seeing the same type of delays that Embraer that airlines are seeing from Airbus and Boeing? Are you on track to get it 13 aircraft this year or could that be delayed?
John Rodgerson: We feel good about where we are with Embraer. Obviously, we’re working very, very closely with them on making sure the deliveries flow. We had three aircraft already enter service in January of this year. And now sort of June onwards, you will start to see a steady stream of aircraft between June and January for 2025. So far, we’re on track. Obviously, talking very close with them and with the engine manufacturer to make sure that the engines are in place as well for the deliveries. So far seems good. So, yes, we have a little bit of upside potentially in our plan, but, we’re on track for now.
Alex Malfitani: I think, Mike, the only thing I would say on that is back end loaded like most OEMs. And so I think Azul’s exit rate of 2024 is going to be a much larger company than I than certainly we enter 2024 just because a lot of those deliveries are second half of the year.
Operator: The next question now will come from Guilherme Mendes, sell-side analyst from JPMorgan.
Guilherme Mendes: My question is on the liability management front and thinking about the equity efficiency that’s coming up in the third quarter of this year going up until the 2027. Assuming that the stock won’t be at BRL36, how do you guys think about the potential use of proceeds to compensate the resource, potentially additional equity dilution or using debt? And if that is the case or cash flow or whatever, if it’s included on the leverage guidance for this year?
Alex Malfitani: So we have the option, right? When we finalized our plan, we communicated this as an equity structure that we had the option to pay in cash. The option is solely on us. So you could also foresee — you could also look at this as in a different way. You can look at this as debt that matures over the course of 14 quarters all the way into 2027 with zero interest, where I have the option, if I want to give shares instead of cash. So if you look at it that way, I think it’s a great facility, that’s very comfortable, that fits within our cash flow generation. And obviously, we’re going to look at the stock and make a determination on whether we think the stock is fairly priced and decide whether we pay that in cash or we pay that in shares.
Operator: So this closes the Q&A session. I’ll turn to John for the final remarks.
John Rodgerson: Thanks everybody for joining us today, and a special thanks and shout out to all of our great crew members who continue to deliver fantastic results. Feel free to reach out to any of us in our investor relations team. We look forward to seeing you over the next over the coming weeks.
Operator: Thank you. This concludes the Azul’s audio conference for today. Thank you very much for your participation, and have a good day.
