Unidentified Company Representative: As I mentioned earlier, this is Holger. Good morning. We are currently seeing a pretty rational environment in the domestic market with rational capacity allocation into the key markets, a reduction of capacity in Mexico City International Airport due to the slot situation and a good pricing environment. We are also adding more capacity and shifting capacity from the domestic market to the international market, capacity ramp up, which should ramp up fully towards the high season of June, July and we are cautiously optimistic about that capacity getting to its full potential this year. As you might recall, we have shifted 17% of the capacity to the U.S. markets in the first quarter. [Technical difficulty]
Operator: I’m detecting no audio moving forward. Our next question will be a follow-up from Helane Becker, TD Cowen. Your line is open.
Helane Becker: Hi. Thanks very much, operator. Can you hear me now?
Unidentified Company Representative: Yes, we can, Helane. Good morning.
Helane Becker: Good morning. Sorry, I don’t really know what happened there. But thanks for the time. Here’s my question. In terms of looking ahead to the second half of the year, as you think about aircraft on the ground, how are you thinking about capacity and new aircraft coming in? I mean, I know you took two in the quarter that just ended, but have you been — has Airbus talked to you about when the next set of aircraft will come in?
Jaime Esteban Pous Fernandez: Hi, Helane. This is Jaime. We have still from the Airbus purchase order a total of 10 additional aircraft to be delivered during 2024. So far, we expect that, aircraft are going to be delivered within a month in advance or a month in delay with what Airbus is telling us and that’s included in the ASM guidance for the year that we have. It includes what we expect to be coming out because of the engines and new aircraft mitigation plan extensions and those all baking in the ASM capacity guidance of 16% to 18% reduction during the year, Helane.
Helane Becker: That’s very helpful. Thank you. Just on the cash balances is, I think, 23% of LTM revenue, I want to say, I thought I read somewhere. What’s your goal for that? I think in the past, it was as high as 30% plus. Where is your sweet spot for that?
Jaime Esteban Pous Fernandez: Our goal, Helane, is to maintain within 25% and 30%. Right now, because of what happened in particular in the third Q last year and AOGs, we had some impact on last year. But ideally, our goal and our budget is to maintain in between 25% and 30%.
Operator: One moment for our next question. Our next question will be coming from Fernanda [indiscernible] of BTG. Your line is open.
Unidentified Analyst: Hi. Thank you for taking my question and congrats on the results. Two questions on our end. The first is, we’ve heard some rumors about a possible category one downgrade from FAA. Just wanted to hear your most updated view on this matter. Second, given the volatility in oil and effect that we are seeing, just wondering how we should think about your head strategy on both things going forward. Thank you.
Jaime Esteban Pous Fernandez: Hi, Fernanda. This is Jaime. We have not heard the rumor and we don’t have any indication and that a new downgrade will take place for Mexico. You can take that away from your mind. In particular with hedging, we don’t have any hedging for fuel or FX. We don’t plan to do it for the first of the year. Very important in terms of FX to consider that, we have a natural hedge and we have an important positive revenue coming in U.S. dollars across all of our cash is 90% invested in dollars.
Unidentified Analyst : Perfect. Thank you, very much. Have a nice day.
Operator: Thank you. This concludes today’s question-and-answer session. I would now like to invite Mr. Beltranena to proceed with closing remarks. Please go ahead.
Enrique Javier Beltranena Mejicano: I just wanted to day, thank you everybody for being in the call and for your very interesting questions. I think that again, it was a quarter, which was driven by execution. I think, again, I want to remind everybody the effort we did at the revenue line. As always, I would like to thank you, our family of ambassadors, the Board of Directors, your investors, bankers, resource and suppliers for their commitment and support. I look forward to addressing you all again on the next call and I will be visiting New York, Boston, and Chicago in the next quarter, so I might see everybody there.
Operator: This concludes the Volaris conference call for today. Thank you very much for your participation and have a nice day.
