Financial Data and Key Metrics Changes - Total passenger traffic reached 15.8 million, representing a 4.1% increase compared to the same quarter of 2024 [6] - Revenues excluding IFRIC 12 grew by 30.6% year over year, reaching ARS 8.2 billion, driven by a 26.4% increase in aeronautical revenues and a 41.8% increase in non-aeronautical revenues [9][10] - EBITDA increased by 31.1%, reaching ARS 5.5 billion, with an EBITDA margin of 67.1% excluding IFRIC 12 [11] - Operating income increased by 30.4% and net income by 17.9% [12] - Cash and cash equivalents stood at ARS 9.7 billion as of June 30 [12] Business Line Data and Key Metrics Changes - Revenues from business lines operated directly by the company increased by 113%, driven by the consolidation of the cargo and bonded warehouse business [10] - Third-party operated business grew by 10.7%, with significant contributions from food and beverage, retail, duty-free, ground transportation, and timeshares [10] Market Data and Key Metrics Changes - The company added eight new routes this quarter, including seven domestic and one international, bringing the total to 21 new routes for the year [6] - Canada is becoming an increasingly relevant market, especially during the winter season, with new international routes announced [6] Company Strategy and Development Direction - The company remains cautiously optimistic about the future, focusing on controlling costs while ensuring service quality across airports [12][15] - The company is pursuing strategic expansion opportunities, including the Turks and Caicos tender process and potential acquisition of CCR Airports assets [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about stricter U.S. migration and enforcement policies potentially impacting international traffic, particularly on U.S.-Mexico routes [8] - Despite macroeconomic headwinds and FX volatility, the company expects to maintain its initial annual guidance [9][15] Other Important Information - The company executed capital investments of about ARS 12.8 billion in the first half of 2025, in line with annual plans [13] - A dividend of ARS 16.84 per share was approved for payment throughout 2025, with the first tranche already distributed [15] Q&A Session Summary Question: Potential inorganic opportunities with Turks and Caicos and CCR - Management indicated that while there are opportunities in Latin America and the Caribbean, not all will yield the desired returns [20] Question: Status of the hotel in Guadalajara Airport - The hotel has achieved an average tariff of ARS 2,500 and an occupancy rate of around 80% in its first year of operation [22] Question: Tariff increases and airline negotiations - The first tariff increase was implemented in March 2025, with a second adjustment expected in early 2026 [27][30] - Airlines have been vocal about tariff changes, but management noted no significant change in their behavior [31] Question: Traffic trends and demand stabilization - Management noted a decrease in passengers on BFR routes due to migration policy changes but expects demand to stabilize as clarity improves [36] Question: CCR portfolio acquisition and leverage - Management stated that a potential acquisition of the CCR portfolio would not require capital injection, as the balance sheet remains healthy [44] Question: Impact of U.S. Department of Transportation claims - Management sees potential impacts on the BFR market but believes the diversified airport portfolio can mitigate risks [82]

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC ) is an example of how a company can leave behind years of high growth without losing its ability to create value. Its recent historyI am an individual investor with over five years of experience in personal investing, holding a PhD in Economics from UCEMA. My investment approach focuses on value companies with solid long-term potential. I share my knowledge with the community by offering analysis to support individual investors. My articles reflec ...

Core Viewpoint - Grupo Aeroportuario del Pacífico (GAP) reported significant growth in revenues and passenger traffic for the second quarter of 2025 compared to the same period in 2024, driven by increased aeronautical and non-aeronautical services, despite a decrease in comprehensive income due to foreign currency translation losses. Financial Position - As of June 30, 2025, the company had cash and cash equivalents of Ps. 9,697.3 million, repaid Ps. 2,500.0 million in maturing bonds, and drew down a Ps. 3,375.0 million credit facility from Banamex [3]. Passenger Traffic - In 2Q25, GAP's 14 airports saw an increase of 624.7 thousand total passengers, a 4.1% rise compared to 2Q24 [4]. - New domestic routes were launched by Viva, including daily flights between Hermosillo and Tijuana, and La Paz and Santa Lucía, among others [4]. - Internationally, World2Fly launched a weekly flight from Montego Bay to Lisboa [5]. Revenue Growth - Total revenues increased by Ps. 3,623.0 million, or 49.9%, with aeronautical services revenues rising by Ps. 1,202.2 million (26.4%) and non-aeronautical services revenues increasing by Ps. 719.9 million (41.8%) [7][16]. - Revenues from improvements to concession assets surged by Ps. 1,700.8 million, or 174.4% [16][18]. Cost and Operating Expenses - Total operating costs rose by Ps. 2,555.4 million, or 68.2%, primarily due to a significant increase in costs related to improvements to concession assets [19][33]. - Employee costs increased by Ps. 134.2 million (30.8%), and maintenance costs rose by Ps. 77.1 million (54.5%) [22]. Income and Profitability - Income from operations increased by Ps. 1,067.6 million, or 30.4%, with an EBITDA increase of Ps. 1,305.2 million (31.1%) [7][24]. - Comprehensive income decreased by Ps. 658.9 million, or 22.8%, primarily due to increased foreign currency translation losses [25][26]. Comprehensive Income and Margins - The operating income margin fell from 48.4% in 2Q24 to 42.1% in 2Q25, while the EBITDA margin decreased from 57.8% to 50.6% [24][37]. - Comprehensive income per share decreased from Ps. 5.7273 to Ps. 4.4232, reflecting a 22.8% decline [12].

Core Viewpoint - Grupo Aeroportuario del Pacífico (GAP) reported significant growth in revenues and passenger traffic for the second quarter of 2025 compared to the same period in 2024, driven by increased aeronautical and non-aeronautical services, despite a decrease in comprehensive income due to foreign currency translation losses [1][7][25]. Financial Position - As of June 30, 2025, the company had cash and cash equivalents of Ps. 9,697.3 million. During the second quarter, it repaid Ps. 2,500.0 million in maturing bonds and drew down a Ps. 3,375.0 million credit facility to refinance other maturities [3]. Passenger Traffic - In 2Q25, GAP's 14 airports saw an increase of 624.7 thousand total passengers, a 4.1% rise compared to 2Q24. New domestic and international routes were launched during this period [4][5]. Revenue Growth - Total revenues increased by Ps. 3,623.0 million, or 49.9%, with aeronautical services revenues rising by Ps. 1,202.2 million (26.4%) and non-aeronautical services revenues increasing by Ps. 719.9 million (41.8%) [7][16]. - Revenues from improvements to concession assets surged by Ps. 1,700.8 million, or 174.4% [18]. Cost Structure - Total operating costs rose by Ps. 2,555.4 million, or 68.2%, primarily due to a significant increase in costs related to improvements to concession assets [19][33]. - The cost of services increased by Ps. 308.5 million, or 25.4%, driven by the consolidation of the cargo and bonded warehouse business [19]. Income and Profitability - Income from operations increased by Ps. 1,067.6 million, or 30.4%, while EBITDA rose by Ps. 1,305.2 million, or 31.1% [7][24]. - However, comprehensive income decreased by Ps. 658.9 million, or 22.8%, primarily due to increased foreign currency translation losses [25][26]. Passenger Traffic Breakdown - Domestic terminal passengers increased by 6.2% to 9,107.6 thousand, while international terminal passengers rose by 1.4% to 6,771.8 thousand [10][9]. - Notable increases were observed at airports such as Guadalajara (3.2% increase) and Los Cabos (7.1% increase) [6][8]. Financial Results for Six Months - For the first half of 2025, total revenues reached Ps. 21,937.2 million, a 39.2% increase compared to the same period in 2024, with significant contributions from both aeronautical and non-aeronautical services [27][30]. - Operating costs also increased significantly, leading to a decrease in operating income margin from 47.6% to 42.3% [37].

Core Insights - Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) has released its 2024 Sustainability Report, detailing its environmental, social, and corporate governance (ESG) performance across its airport network [1][2]. Company Overview - GAP operates 12 airports in Mexico's Pacific region, including major cities like Guadalajara and Tijuana, and tourist destinations such as Puerto Vallarta and Los Cabos [4]. - The company was listed on the New York Stock Exchange in February 2006 and on the Mexican Stock Exchange [4]. - GAP has expanded its operations internationally, acquiring a majority stake in MBJ Airports Limited in Jamaica and entering a concession agreement for the Norman Manley International Airport [4]. Sustainability Reporting - The 2024 Sustainability Report covers the period from January 1 to December 31, 2024, and adheres to the Global Reporting Initiative (GRI) Standards and the Sustainability Accounting Standards Board (SASB) framework [2]. - The report also considers the International Financial Reporting Standards (IFRS) S1 and S2 for sustainability and climate-related financial disclosures [2]. Additional Information - The full report is accessible on GAP's website under the "Investors" section [3]. - GAP has implemented a whistleblower program in compliance with the Sarbanes-Oxley Act, allowing anonymous reporting of suspected violations [6].

Core Insights - Grupo Aeroportuario del Pacífico (GAP) reported a 0.7% increase in total terminal passenger traffic across its 12 Mexican airports in June 2025 compared to June 2024 [2][3] - The total number of terminal passengers for the first half of 2025 increased by 7.6% compared to the same period in 2024 [3] Passenger Traffic Summary - Los Cabos airport saw a 1.7% increase in passenger traffic, while Tijuana, Guadalajara, and Puerto Vallarta experienced decreases of 2.3%, 1.1%, and 0.1% respectively [2] - Montego Bay airport reported a 1.9% decrease in passenger traffic compared to June 2024 [2] Detailed Passenger Statistics - Guadalajara: - June 2024: 1,009.3 thousand passengers - June 2025: 1,000.1 thousand passengers - Change: (0.9%) [3] - Tijuana: - June 2024: 686.3 thousand passengers - June 2025: 660.1 thousand passengers - Change: (3.8%) [3] - Los Cabos: - June 2024: 238.5 thousand passengers - June 2025: 240.1 thousand passengers - Change: 0.7% [3] - Puerto Vallarta: - June 2024: 259.6 thousand passengers - June 2025: 273.8 thousand passengers - Change: 5.5% [3] - Total terminal passengers for June 2025: 2,917.8 thousand, compared to 2,868.7 thousand in June 2024 [3] Domestic and International Passenger Trends - Domestic passengers decreased by 0.8% in June 2025 compared to June 2024, totaling 2,262.1 thousand [5] - International passengers decreased by 1.5% in Guadalajara, while Tijuana saw a slight increase of 0.6% [5] Load Factors and Capacity - The number of available seats increased by 2.1% in June 2025 compared to June 2024 [11] - Load factors decreased from 83.4% in June 2024 to 82.2% in June 2025 [11] Company Overview - Grupo Aeroportuario del Pacífico operates 12 airports in Mexico's Pacific region, including major cities and tourist destinations [9] - The company is listed on both the New York Stock Exchange and the Mexican Stock Exchange [9]

Core Insights - Kuehne & Nagel International Ag (KHNGY) is currently viewed as a better value opportunity compared to Grupo Aeroportuario del Pacifico (PAC) based on various financial metrics and outlooks [1][3]. Valuation Metrics - KHNGY has a forward P/E ratio of 19.09, while PAC's forward P/E is 20.13, indicating that KHNGY may be undervalued relative to PAC [5]. - The PEG ratio for KHNGY is 1.04, suggesting a more favorable growth outlook compared to PAC's PEG ratio of 2.32, which indicates a higher valuation relative to its growth [5]. - KHNGY's P/B ratio stands at 8.59, slightly lower than PAC's P/B of 8.71, further supporting KHNGY's position as a more attractive value option [6]. Investment Ratings - KHNGY holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to PAC, which has a Zacks Rank of 3 (Hold) [3]. - The Value grades reflect KHNGY's B rating versus PAC's D rating, highlighting KHNGY's superior valuation metrics and earnings outlook [6].

Summary of Key Points Core Viewpoint - Grupo Aeroportuario del Pacífico (GAP) has completed the ordinary review process for maximum passenger tariffs and committed investments for the Capital Development Program at Montego Bay for the period 2026-2030 [1]. Group 1: Tariffs and Investments - The maximum passenger charges for Montego Bay airport are set to increase from $17.38 in 2026 to $19.07 in 2030, reflecting a gradual annual increase [1]. - The total committed investments for Montego Bay airport under the Capital Development Program amount to $118.1 million, with specific allocations of $38.4 million in 2026, $39.4 million in 2027, $18.4 million in 2028, $11.6 million in 2029, and $10.3 million in 2030 [1]. Group 2: Company Overview - Grupo Aeroportuario del Pacífico operates 12 airports in Mexico's Pacific region, including major cities like Guadalajara and Tijuana, as well as tourist destinations such as Puerto Vallarta and Los Cabos [2]. - GAP was listed on the New York Stock Exchange in February 2006 and acquired a majority stake in MBJ Airports Limited, which operates Sangster International Airport in Montego Bay, Jamaica, in April 2015 [2]. - The company entered into a concession agreement for the Norman Manley International Airport in Kingston, Jamaica, in October 2018 and took control of operations in October 2019 [2].

Core Points - Grupo Aeroportuario del Pacífico (GAP) has completed the ordinary review process for maximum tariffs per passenger and committed investments for Kingston Airport for the 2026-2030 period [1] - The maximum passenger charges for Kingston Airport will increase from $38.18 in 2026 to $60.10 in 2030 [1] - The total committed investments under the Capital Development Program for Kingston Airport amount to $85.2 million, with scheduled investments of $45.8 million in 2026, $23.4 million in 2028, and smaller amounts in other years [1] Company Overview - Grupo Aeroportuario del Pacífico operates 12 airports in Mexico's Pacific region, including major cities like Guadalajara and Tijuana, and tourist destinations such as Puerto Vallarta and Los Cabos [2] - The company was listed on the New York Stock Exchange in February 2006 and on the Mexican Stock Exchange [2] - GAP acquired a majority stake in MBJ Airports Limited in April 2015 and entered into a concession agreement for Norman Manley International Airport in Kingston, Jamaica, in October 2018 [2]

Core Insights - Grupo Aeroportuario del Pacífico (GAP) reported a 2.9% increase in total terminal passenger traffic for May 2025 compared to May 2024, with notable growth at several airports [2][3] - The total number of terminal passengers across GAP's 12 airports reached 3,054.5 thousand in May 2025, up from 2,917.0 thousand in May 2024, marking a 4.7% increase [3][6] Passenger Traffic Summary - Tijuana, Los Cabos, Puerto Vallarta, and Guadalajara airports saw increases in passenger traffic of 3.4%, 1.1%, 0.9%, and 1.1% respectively [2][3] - Montego Bay experienced a decrease in passenger traffic of 1.6% compared to May 2024 [2][3] Year-to-Date Performance - For the January to May 2025 period, total terminal passengers increased by 8.8% to 14,726.5 thousand from 13,531.1 thousand in the same period of 2024 [3][6] - Specific airports such as Puerto Vallarta and Mexicali showed significant year-to-date growth of 14.4% and 15.7% respectively [3][6] Domestic vs. International Passengers - Domestic terminal passengers slightly decreased by 0.2% to 2,113.9 thousand in May 2025 compared to May 2024 [5][6] - International terminal passengers saw a decline of 1.4% at Guadalajara and 9.1% at Los Cabos, while Tijuana experienced a 7.9% increase [5][6] Load Factors and Capacity - The available seats increased by 4.8% in May 2025 compared to May 2024, while load factors decreased from 82.8% to 81.1% [11] - New routes were introduced by Viva, enhancing connectivity between various cities [11] Company Overview - Grupo Aeroportuario del Pacífico operates 12 airports in Mexico's Pacific region, including major cities and tourist destinations [10] - The company has been publicly traded since February 2006 on both the New York Stock Exchange and the Mexican Stock Exchange [10]