Grupo Aeroportuario del Pacifico Announces Results for the Third Quarter of 2024

Core Viewpoint Grupo Aeroportuario del Pacífico (GAP) reported a mixed performance in its third quarter of 2024, with total revenues increasing by 11.4% year-over-year, driven by a significant rise in non-aeronautical revenues, while aeronautical revenues faced a decline due to reduced passenger traffic. Financial Performance - Total revenues increased by Ps. 839.7 million, or 11.4%, from Ps. 7,392.9 million in 3Q23 to Ps. 8,232.7 million in 3Q24 [1] - Aeronautical services revenues decreased by Ps. 184.7 million, or 3.8%, while non-aeronautical services revenues increased by Ps. 587.5 million, or 38.7% [11][12] - EBITDA increased by Ps. 237.8 million, or 5.6%, from Ps. 4,629.9 million in 3Q23 to Ps. 4,507.6 million in 3Q24 [1][10] - Comprehensive income rose by Ps. 69.1 million, or 2.7%, from Ps. 2,551.4 million in 3Q23 to Ps. 2,620.6 million in 3Q24 [2][21] Passenger Traffic - Total passengers at the Company's 14 airports decreased by 923.2 thousand, or 5.7%, compared to 3Q23 [4][5] - Domestic passenger traffic showed declines across several airports, with Guadalajara down 4.6% and Tijuana down 9.9% [4][7] - International passenger traffic at Guadalajara increased by 11.2%, while Tijuana saw a decrease of 2.4% [6][7] Revenue Breakdown - Non-aeronautical revenues were significantly boosted by the consolidation of cargo and free trade zone businesses, contributing Ps. 354.1 million starting July 2024 [3][12] - Revenues from improvements to concession assets increased by Ps. 436.9 million, or 41.1%, compared to 3Q23 [15][16] Cost Structure - Total operating costs increased by Ps. 769.5 million, or 20.6%, primarily due to higher costs associated with improvements to concession assets and the consolidation of new business lines [17][18] - The cost of services rose by Ps. 251.9 million, or 21.3%, with significant increases in employee costs and maintenance expenses [18][19] Financial Position - As of September 30, 2024, the Company reported cash and cash equivalents of Ps. 15,828.0 million [3] - The Company refinanced credit facilities totaling Ps. 1,000.0 million and USD$40.0 million during 3Q24 [3] Market Context - The decline in aeronautical revenues was attributed to reduced passenger traffic, particularly due to engine reviews affecting airlines like Volaris and VivaAerobus [3][11] - The peso's depreciation against the U.S. dollar contributed to increased revenues from Jamaican airports, despite a decrease in passenger traffic [11][13]