The risks inherent in our business are the potential losses arising from adverse changes to the price of fuel, interest rates and the U.S. dollar exchange rate. Please also refer to note 28 of our financial statements. Aircraft Fuel. Our results of operations are affected by changes in the price and availability of aircraft fuel. The Company has not entered into new fuel hedge contracts and has adopted a strategy of remaining unhedged, while regularly reviewing its policies based on market conditions and other factors. As of December 31, 2025, the Company did not have any outstanding fuel hedge contracts. Fuel price risk is estimated as a hypothetical 10% increase in the December 31, 2025, cost per gallon of fuel. Based on projected 2026 fuel consumption, such an increase would result in an increase to aircraft fuel expense of approximately $88.9 million in 2026. There are no hedged contracts for 2026. Additionally, global geopolitical events, such as the conflict between Russia and Ukraine beginning in February 2022, the ongoing political instability in Venezuela, or the conflict in the Middle-East, have contributed to fluctuations in fuel costs, which may negatively impact our business operations. Due to the evolving nature of such events, we are unable to predict the extent of the impact on our business. Interest. Our earnings are affected by changes in interest rates due to the impact those changes have on interest expense from variable-rate debt instruments and operating leases and on interest income generated from our cash and investment balances. If the interest rate average is 100 basis points more in 2026 than in 2025, the variable-rate debt interest expense would increase by approximately $9.1 million, and the estimated fair value of the fixed-rate debt would increase by approximately $36.1 million. These amounts are determined by considering the impact of the hypothetical interest rates on the variable-rate debt and marketable securities equivalent balances at December 31, 2025. Foreign Currencies. The majority of our obligations are denominated in U.S. dollars. Since Panama uses the U.S. dollar as legal tender, the majority of our operating expenses are also denominated in U.S. dollars, approximately 67.5% of revenues and 84.2% of expenses are in U.S. dollars. A significant part of our revenue is denominated in foreign currencies, including the Brazilian real, Colombian peso, Mexican peso and Chilean peso, which represented 8.6%, 8.8%, 3.5% and 3.0% of our revenue in 2025, respectively. On January 1, 2015, given the change in its business strategy focused on international markets, AeroRepública concluded that the most appropriate functional currency of the Company would be U.S. dollars. This reflects the fact that the majority of the airline’s business is influenced by pricing in international markets, with a dollar economic environment. In the same way, the major operating expenses such as fuel, leasing, airport services and sales commissions are dollarized. Until December 31, 2014, the previous functional currency of the Company was the Colombian peso. During 2024, we began using foreign currency non-delivery forward contracts (“NDFs”) to manage certain transaction exposures in Brazilian real. These contracts are not designated for hedge accounting and are typically structured for periods that align the underlying foreign currency exposures, generally ranging from one to six months. Additionally, we occasionally enter into factoring agreements for outstanding receivables from credit card sales in certain countries. 68 Table of Contents The following chart summarizes the Company’s exchange risk exposure (assets and liabilities denominated in foreign currency) at December 31, 2025, and 2024: 2025 2024 Assets Cash and cash equivalents $ 46,423 $ 12,213 Accounts receivable, net 101,623 72,842 Other assets 4,615 17,035 Total assets $ 152,661 $ 102,090 Liabilities Accounts payable 55,295 23,234 Taxes payable 71,855 60,285 Other liabilities 7,474 12,375 Total liabilities $ 134,624 $ 95,894 Net position $ 18,037 $ 6,196