Financial Data and Key Metrics Changes - Total revenues increased by 5% year on year to 7,400,000,000 pesos, reflecting growth across operations, particularly in Puerto Rico and Colombia [8][9] - Consolidated EBITDA rose slightly by 2% year on year, reaching 5,000,000 pesos, with a notable decline in Mexico's EBITDA by 1.6% [12] - The adjusted EBITDA margin, excluding construction revenue, stood at nearly 68%, down from 69% in the same quarter last year [12] Business Line Data and Key Metrics Changes - Mexico, accounting for 72% of total revenues, posted a low single-digit increase of 0.7% [9] - Puerto Rico contributed 17.7% of total revenues with high teens growth, while Colombia accounted for 12% of total revenues with 15.4% growth [9] - Commercial revenue per passenger reached nearly 140 pesos, representing mid-single-digit year-on-year growth, with Colombia leading at a 22% increase [10] Market Data and Key Metrics Changes - Passenger traffic remained largely flat year on year at 17,700,000, with Puerto Rico showing 3% growth, while Mexico reported a decline of nearly 2% [5][6] - International travel in Mexico saw declines from all regions, with Europe down 4.7% and the US down 5.3% [6] - A significant portion of the decline in international traffic (38%) was attributed to the new airport in Tulum [6] Company Strategy and Development Direction - The company continues to invest in infrastructure and expand commercial offerings, having opened 47 new commercial spaces over the last twelve months [9][10] - The management emphasized the importance of maintaining a strong cash position and planned to pay dividends while evaluating future capital allocation [14][72] - The company is attentive to evolving global macroeconomic conditions and believes its financial position will help mitigate potential risks [16] Management's Comments on Operating Environment and Future Outlook - Management expects traffic in Mexico to gradually stabilize over the next year as operational issues are resolved [7] - The company does not anticipate a material impact from potential US Department of Transportation restrictions on Mexican carriers [7] - Management expressed cautious optimism regarding the normalization of domestic traffic and the potential for increased operations in Mexico City [40][41] Other Important Information - The company reported a foreign exchange loss of 1,200,000,000 pesos due to the depreciation of the Mexican peso against the US dollar [13] - Capital expenditures in the quarter totaled 1,400,000,000 pesos, primarily directed towards modernization and expansion projects [14][15] - The board of directors now comprises 57% independent members, with female representation increased to 36% [16] Q&A Session Summary Question: What drove the sequential decline in non-air revenues? - Management indicated that exchange rates and a slight difference in passenger mix contributed to the decline [22] Question: What impact would lifting capacity restrictions in Mexico City have? - Management noted that an increase in operations could benefit overall passenger traffic, but expressed doubts about significant changes occurring soon [24] Question: Is charter traffic still the primary traffic type at Tulum? - Management confirmed that most traffic at Tulum is now commercial flights, primarily from the US [31] Question: What is the outlook for traffic growth in the second half of the year? - Management expects some normalization in traffic, with potential single-digit growth anticipated [36] Question: What is the expected impact of foreign exchange on commercial revenues? - Management explained that the exchange rate and duty-free sales affected commercial revenues, leading to a soft performance [41] Question: What is the rationale behind the new debt? - Management stated that the new debt was necessary to maintain cash reserves for future expenses and dividends [72] Question: What are the dynamics of international traffic in Puerto Rico and Colombia? - Management attributed growth in Puerto Rico to events and concerts, while Colombia's growth is linked to US traffic [106]

Financial Data and Key Metrics Changes - Total revenues increased by 5% year on year to 7,400,000,000 pesos, reflecting growth across operations, particularly in Puerto Rico and Colombia [7][8] - Consolidated EBITDA rose slightly by 2% year on year, reaching 5,000,000 pesos, with Puerto Rico and Colombia posting double-digit growth [12] - The adjusted EBITDA margin, excluding construction revenue, stood at nearly 68%, down from 69% in the same quarter last year [12] Business Line Data and Key Metrics Changes - Mexico, accounting for 72% of total revenues, posted a low single-digit increase of 0.7% in revenues, with growth in both aeronautical and non-aeronautical revenues [8] - Puerto Rico contributed 17.7% of total revenues with high teens growth, while Colombia, accounting for 12% of total revenues, posted 15.4% growth [8][9] - Commercial revenue per passenger reached nearly 140 pesos, representing mid-single-digit year-on-year growth, with Colombia leading at a 22% increase [10] Market Data and Key Metrics Changes - Passenger traffic remained largely flat year on year at 17,700,000, with Puerto Rico showing 3% growth, while Mexico reported a decline of nearly 2% [4][5] - International travel in Mexico saw declines from all regions, with Europe down 4.7%, the US down 5.3%, and South America down 2.7% [5] - A significant portion of the decline in international traffic, approximately 38%, is attributed to the new airport in Tulum [5] Company Strategy and Development Direction - The company continues to invest in infrastructure and expand commercial offerings, having opened 47 new commercial spaces over the last twelve months [9] - The strategy includes modernization and expansion projects at Mexican airports, with ongoing work at Lincoln Airport and taxiway hotels in Puerto Rico [15] - The company remains focused on long-term growth potential despite current market uncertainties [6][16] Management's Comments on Operating Environment and Future Outlook - Management expects traffic in Mexico to gradually stabilize over the next year as operational issues related to aircraft are resolved [6] - The company does not anticipate a material impact from potential US Department of Transportation restrictions on Mexican carriers [6] - Management expressed confidence that travel-related disruptions are typically temporary and that the company is well-positioned to mitigate risks [16] Other Important Information - The company closed the quarter with nearly 20,000,000,000 pesos in cash and cash equivalents, up 30% year on year [13] - A foreign exchange loss of 1,200,000,000 pesos negatively impacted the bottom line, contrasting with a gain of 942,000,000 pesos in the same quarter last year [13] Q&A Session Summary Question: What drove the sequential decline in non-air revenues? - Management indicated that exchange rates played a significant role, along with a slight difference in passenger mix and issues at Terminal 2 [20][22] Question: What impact could lifted capacity restrictions in Mexico City have? - Management noted that an increase in operations at Mexico City Airport could benefit overall passenger traffic, but expressed doubts about significant changes occurring soon [21][24] Question: What is the current traffic situation at Tulum Airport? - Most traffic at Tulum is still primarily commercial flights from the US, with some domestic traffic [27][30] Question: What is the outlook for traffic growth in the second half of the year? - Management expects some normalization in traffic, with potential single-digit growth anticipated compared to the second half of 2024 [34][36] Question: What is the rationale behind the new debt? - The new debt is related to tax expenses at Cancun Airport, ensuring sufficient cash for future dividend payments [60][61] Question: What are the dynamics of international traffic in Puerto Rico and Colombia? - Growth in Puerto Rico is driven by events and concerts, while Colombia's growth is primarily linked to travel from the US [84]

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 Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total revenue increase of 17.9% year-over-year (YoY) to Ps.8,715.4 million for the second quarter of 2025 [3][4] - The company experienced a decline in net income by 39.9% YoY, amounting to Ps.2,270.2 million, with earnings per share dropping by 41.6% to Ps.7.1494 [3][4] - Passenger traffic overall decreased by 0.1% YoY, with variations across regions: a 1.7% decrease in Mexico, a 3.2% increase in Puerto Rico, and a 1.0% increase in Colombia [4][5] Financial Highlights - Total revenue for Q2 2025 was Ps.8,715.4 million, up from Ps.7,394.0 million in Q2 2024, marking a 17.9% increase [3] - EBITDA increased by 2.3% YoY to Ps.5,024.9 million, while the adjusted EBITDA margin decreased to 67.6% from 69.2% in Q2 2024 [3][4] - The cash position at the end of June 2025 was Ps.19,815.9 million, with a debt to LTM adjusted EBITDA ratio of 0.1x [4] Operational Highlights - Passenger traffic in Mexico decreased by 1.7%, with international traffic down by 4.1% and domestic traffic up by 0.8% [4] - In Puerto Rico, passenger traffic increased by 3.2%, driven by a 15.2% rise in international traffic [4] - Colombia saw a 1.0% increase in passenger traffic, with international traffic up by 11.8% offsetting a 1.9% decline in domestic traffic [4] Dividend Information - ASUR distributed a cash dividend of Ps.80.00 per share, with the first tranche of Ps.50.00 paid in May 2025 and two additional extraordinary dividends of Ps.15.00 scheduled for September and November 2025 [4]

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].

Group 1 - The Panick High Yield Report focuses on high-yield preferred stocks, baby bonds, bonds, REITs, BDC issues, and other undervalued, high-yield opportunities [1] - The report emphasizes selling covered calls and cash secured puts for income generation [1] - The newsletter offers a two-week free trial and a special 10% discount for new members [1] Group 2 - The author of the Panick Value Research Report is a former hedge fund trader now working as an independent trader and consultant [2] - The report provides exclusive subscriber articles, daily sector updates, and advance drafts of public articles [2]

Group 1 - The article discusses the resilience of a company's growth story despite potential challenges such as tariffs [1] - The author, Ian Bezek, has extensive experience in Latin American markets and focuses on high-quality growth stocks [2] - The company has a beneficial long position in shares of CAAP, PAC, and OMAB, indicating confidence in these investments [3]

Group 1 - Global air traffic has not only recovered but is also showing new dynamics of growth, indicating a positive trend in the aviation industry [1] - Corporación América Airports (NYSE: CAAP) is positioned as a unique platform to capture value in this growing market [1]

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total passenger traffic of 6.0 million for June 2025, reflecting a decrease of 1.8% compared to June 2024 [1][2][4] Passenger Traffic Analysis - Colombia experienced a year-on-year increase of 1.7% in passenger traffic, driven by a 13.3% rise in international traffic, which offset a 1.4% decline in domestic traffic [2][4] - Mexico saw a decline of 2.8% in total passenger traffic, with international traffic decreasing by 3.4% and domestic traffic by 2.1% [2][4] - Puerto Rico reported a 3.3% decrease in total passenger traffic, with a 9.2% increase in international traffic and a 5.1% decline in domestic traffic [2][4] Detailed Traffic Figures - In June 2025, Mexico's total passenger traffic was 3,263,212, down from 3,357,243 in June 2024, with year-to-date figures showing a decrease of 3.4% [4][6] - Colombia's total passenger traffic for June 2025 was 1,474,224, up from 1,448,982 in June 2024, with a year-to-date increase of 3.6% [4][6] - San Juan, Puerto Rico, had a total passenger traffic of 1,254,753 in June 2025, down from 1,297,862 in June 2024, but year-to-date figures showed an increase of 6.8% [4][6] Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia, with a significant presence in the Caribbean and Latin America [7] - The company is also a 60% joint venture partner in Aerostar Airport Holdings, which operates Luis Muñoz Marín International Airport in San Juan, Puerto Rico [7]

Core Insights - Apollo-managed funds have completed a $750 million investment grade rated financing for Mumbai International Airport Ltd. (MIAL), a subsidiary of Adani Airports Holdings Limited, which operates Chhatrapati Shivaji Maharaj International Airport, the second largest airport in India [1][2]. Financing Details - The financing consists of 4-year senior secured notes aimed at refinancing existing debt, enhancing MIAL's financial flexibility for operations, modernization, and sustainability initiatives [2]. - The structure allows for an additional $250 million in funding to accelerate capital expenditure and capacity expansion, marking it as one of the largest private investment grade rated deals in India's infrastructure sector [2]. Strategic Importance - This financing is part of MIAL's ambitious growth capital expenditure plans, with Apollo previously providing operational flexibility to deleverage [3]. - The investment positions MIAL to enhance the airport experience for travelers and aligns with the Adani Group's execution capabilities [3]. Market Context - India is identified as an attractive market for hybrid and credit financing, particularly for critical infrastructure projects, making it a key focus for Apollo in Asia [3]. Sustainability Commitment - MIAL is committed to sustainability, aligning with UN Sustainable Development Goals through initiatives such as transitioning to electric vehicles and achieving net zero emissions by 2029 [4]. Company Background - MIAL operates under a Public-Private Partnership model, with Adani Airport Holdings Limited holding a 74% stake and the Airports Authority of India holding 26% [6].