Grupo Aeroportuario del Pacífico (GAPB) Q2 2024 earnings summary

Executive summary

• Passenger traffic declined 3.9% year-over-year in 2Q24 due to ongoing A320neo/A321neo engine inspections, with full recovery expected by mid-2026.

• Total revenues for 2Q24 decreased 13.2% year-over-year to Ps. 7,259.0 million, mainly due to lower passenger traffic and aeronautical revenues, partially offset by a 10.6% increase in non-aeronautical revenues.

• EBITDA fell 8.3% to Ps. 4,198.1 million in 2Q24, with margin (ex-IFRIC-12) declining to 66.8% from 70.4% in 2Q23.

• Despite lower traffic, new domestic and international routes were added in Q2, with further expansion planned for H2, including Tijuana-Beijing.

• Net income for 2Q24 was Ps. 2,252.7 million, down 9.5% year-over-year, while comprehensive income rose 41.0% to Ps. 2,893.9 million, driven by foreign currency translation gains.

Financial highlights

• Combined aeronautical and non-aeronautical revenues decreased by MXN 213 million (3.3%) year-over-year, mainly due to lower passenger traffic.

• Non-aeronautical revenues increased 10.6% in 2Q24 and 12.9% in 6M24, driven by food & beverage, car rentals, VIP lounges, and new commercial spaces.

• Aeronautical revenues dropped 7.7% in 2Q24 and 4.5% in 6M24, mainly due to lower passenger traffic at Mexican airports.

• Cost of service increased by MXN 179 million (17.3%) due to higher employee, security, insurance, and maintenance expenses.

• Cash and cash equivalents at June 30, 2024: Ps. 12,584.9 million; debt reached MXN 41.8 billion.

Outlook and guidance

• 2024 guidance: passenger traffic expected to decline 3–5%, aeronautical revenues down 2–4%, non-aeronautical revenues up 20–22%, total revenue up 2–4%, EBITDA margin at 67% ±1%, and CAPEX at Ps. 9.0 billion.

• Guidance reflects grounded aircraft due to GTF engine inspections and ongoing infrastructure investments.

• Full recovery of seat capacity expected by mid-2026, with gradual improvement through 2025 as grounded aircraft return.

• Double-digit commercial revenue growth expected to be sustainable, contingent on traffic recovery.