Core Thesis - Corporación América Airports S.A. (CAAP) is viewed positively by investors, with a current share price of $29.12 and trailing and forward P/E ratios of 26.72 and 4.89 respectively [1][3] Company Overview - CAAP operates 52 airports across Europe and the Americas, primarily in Argentina, which faces significant economic instability [3] - Revenue is generated from aeronautical fees related to aircraft operations and supplemented by commercial activities such as retail, cargo storage, advertising, and leasing [3] - The company also earns revenue from construction services for airport expansions and maintenance under government contracts, recognizing these expenditures as intangible assets [3] Market Position - CAAP has a strategic presence in both high-traffic and niche locations, operating major airports in Brazil, Uruguay, the Galapagos, and Romania [4] - The customer base includes legacy carriers like LATAM and Aerolíneas Argentinas, as well as regional and low-cost airlines, although passenger traffic and revenue are unpredictable due to air travel volatility [4] Financial Performance - CAAP reports a gross margin of 34.7% and a net margin of 10.3%, but has weak competitive moats with a durability score of 0.4/10 and moderate financial quality at 4/10 [4] - Operational challenges are noted at larger airports, while smaller facilities perform better, indicating potential for management focus to enhance outcomes [5] Valuation and Risks - A conservative DCF model estimates a fair value of $56.21 per share, suggesting a 212% upside potential [5] - However, the company faces high debt levels, capital intensity, and exposure to Argentina's macroeconomic issues, presenting a high-risk, potentially high-reward investment scenario [5][6]

Core Viewpoint - Corporación América Airports S.A. reported significant growth in passenger traffic, indicating a strong recovery and demand in the aviation sector for the year 2025 compared to 2024 [1]. Passenger Traffic Highlights - In December 2025, domestic passenger traffic reached 3,995 thousand, marking a 5.9% increase from December 2024, which had 3,772 thousand passengers [1]. - For the full year 2025, domestic passenger traffic totaled 44,507 thousand, reflecting an 8.6% increase from 40,996 thousand in 2024 [1]. Cargo Volume and Aircraft Movements - The report also highlights increases in cargo volume and aircraft movements, although specific figures for these metrics were not detailed in the provided text [1].

Core Insights - Corporación América Airports S.A. reported an 8.5% year-on-year increase in passenger traffic for November 2025, indicating a strong recovery in the aviation sector [1][3]. Passenger Traffic Overview - Total passenger traffic reached 7,138 thousand in November 2025, up from 6,576 thousand in November 2024, marking an 8.5% increase [2][12]. - Domestic passenger traffic rose by 4.4% YoY, with significant contributions from Argentina, Brazil, and Ecuador [3]. - International passenger traffic grew by 12.3% YoY, with Argentina accounting for 50% of the total growth [3][4]. - Notable increases in passenger traffic were observed in various countries: - Argentina: 7.4% increase YoY [4]. - Italy: 10.4% increase YoY, with international traffic up 16.3% [5]. - Brazil: 10.8% increase YoY, with domestic traffic up 8.1% [6]. - Uruguay: 7.5% increase YoY, primarily in international traffic [7]. - Ecuador: 2.7% increase YoY, with domestic traffic up 7.6% despite security concerns [8]. - Armenia: 15.9% increase YoY, supported by new airlines and routes [9]. Cargo Volume and Aircraft Movements - Cargo volume slightly decreased by 0.6% YoY, totaling 39.7 thousand tons in November 2025 [10][13]. - Argentina was the only country to show positive growth in cargo volume, increasing by 9.4% YoY [10]. - Total aircraft movements increased by 5.0% YoY, reaching 72.0 thousand in November 2025 [11][13]. - Positive contributions to aircraft movements were noted across most countries, except Ecuador, which saw a decline of 3.0% [11]. Year-to-Date Performance - Year-to-date total passenger traffic increased by 9.9%, reaching 79,136 thousand passengers in 2025 compared to 72,015 thousand in 2024 [2][12]. - Excluding the Natal airport operations, total passenger traffic YTD was up 10.5% [2][12].

Core Viewpoint - Grupo Aeroportuario del Pacífico (GAP) has received shareholder approval for the business combination with Cross Border Xpress (CBX), which includes technical assistance and technology transfer services, marking a significant step in the company's development strategy [1][3]. Company Overview - GAP 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 [4]. - The company was listed on the New York Stock Exchange in February 2006 and on the Mexican Stock Exchange in the same year [4]. - GAP has expanded its operations internationally, acquiring a majority stake in MBJ Airports Limited in Jamaica and entering into a concession agreement for the Norman Manley International Airport [4]. Shareholder Meeting Outcomes - During the Ordinary and Extraordinary General Shareholders' Meeting, 96% of the votes cast approved the merger, with a quorum of 88.1% of shareholders present [1]. - The merger will involve the issuance of approximately 90 million net new shares, increasing the total outstanding shares from approximately 505 million to about 595 million [2]. Governance and Transparency - The company emphasized adherence to high international standards of corporate governance throughout the proposal process, ensuring that the transaction was supported by the "majority of the minority" shareholders [3]. - An information statement regarding the transaction was provided to shareholders well in advance of legal requirements, promoting transparency in the decision-making process [3].

Core Insights - Corporación América Airports S.A. reported a 10.2% year-on-year increase in passenger traffic for October 2025, indicating strong growth in the aviation sector [1] Passenger Traffic Highlights - Domestic passengers reached 3,925 thousand in October 2025, up 9.1% from 3,596 thousand in October 2024 [1] - Year-to-date domestic passenger numbers for 2025 stand at 36,688 thousand, reflecting a 9.3% increase compared to 33,561 thousand in the same period of 2024 [1] Cargo Volume and Aircraft Movements - The report includes statistics on cargo volume and aircraft movements, although specific figures were not detailed in the provided text [1]

Core Insights - Grupo Aeroportuario del Pacífico (GAP) reported a 0.7% increase in total terminal passenger traffic across its 12 Mexican airports for October 2025 compared to October 2024 [2] - The company experienced mixed results at individual airports, with Guadalajara and Puerto Vallarta showing increases, while Tijuana and Los Cabos saw declines [2][3] Passenger Traffic Summary - Total terminal passengers increased from 2,951.8 thousand in October 2024 to 3,012.2 thousand in October 2025, marking a 2.0% growth [3] - Year-to-date (January to October) total passengers rose from 28,404.4 thousand to 30,083.8 thousand, reflecting a 5.9% increase [3] Domestic Passenger Traffic - Domestic terminal passengers decreased from 1,964.0 thousand in October 2024 to 1,862.5 thousand in October 2025, a decline of 5.2% [5] - Year-to-date domestic passengers slightly decreased from 22,648.7 thousand to 22,599.4 thousand, a change of -0.2% [5] International Passenger Traffic - International terminal passengers saw a decline from 2,951.8 thousand in October 2024 to 2,874.2 thousand in October 2025, a decrease of 2.6% [6] - Year-to-date international passengers increased from 28,404.4 thousand to 30,083.8 thousand, a growth of 5.9% [6] Airport-Specific Performance - Guadalajara Airport reported a 3.4% increase in passenger traffic, rising from 1,054.4 thousand to 1,090.7 thousand [3] - Tijuana Airport experienced a 2.3% decrease, with traffic falling from 711.8 thousand to 695.8 thousand [3] - Los Cabos Airport saw a significant drop of 7.4%, from 233.4 thousand to 216.2 thousand [3] - Puerto Vallarta Airport increased by 5.2%, from 231.6 thousand to 243.8 thousand [3] Impact of Hurricane Melissa - Hurricane Melissa significantly affected passenger traffic at Jamaican airports, with Montego Bay and Kingston experiencing declines of 17.6% and 13.0%, respectively [2][10] - Montego Bay Airport resumed operations on October 31, 2025, after sustaining considerable damage [11] Operational Highlights - The number of available seats increased by 6.0% in October 2025 compared to October 2024, while load factors decreased from 86.5% to 80.9% [9]

Core Points - Grupo Aeroportuario del Pacífico (GAP) has resumed operations at Montego Bay International Airport for evacuation flights and humanitarian aid following Hurricane Melissa [1] - Limited commercial operations are expected to restart on November 1 at 7:00 a.m. local time, as the company works on restoring essential airport infrastructure and assessing damage [2] - GAP prioritizes the safety and well-being of passengers, employees, and business partners, ensuring all airport systems meet high safety standards before full commercial operations resume [3] 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 acquired a majority stake in MBJ Airports Limited, which operates Sangster International Airport in Jamaica, in April 2015 [4] - GAP entered into a concession agreement for the operation of Norman Manley International Airport in Kingston, Jamaica, in October 2018, taking control in October 2019 [4]

Core Insights - Corporación América Airports S.A. reported a 9.4% year-on-year increase in passenger traffic for September 2025, indicating strong growth in the aviation sector [1] Passenger Traffic Highlights - Domestic passengers reached 3,743 thousand in September 2025, up 10.9% from 3,376 thousand in September 2024 [1] - Year-to-date domestic passenger numbers for 2025 stand at 32,763 thousand, reflecting a 9.3% increase compared to 29,965 thousand in the same period of 2024 [1] Cargo Volume and Aircraft Movements - International passenger figures for September 2025 were reported at 2,971 thousand, showcasing the company's performance in the international market [1]

Core Thesis - Corporación América Airports S.A. (CAAP) is viewed positively due to its strong market position, financial metrics, and favorable economic conditions in Argentina, suggesting significant upside potential for investors [1][5]. Company Overview - CAAP operates 53 airports, primarily in South America, with a focus on Argentina, benefiting from high-quality assets that function as local monopolies with substantial regulatory barriers and built-in price escalators [2]. Financial Performance - The company reported a trailing P/E of 20.35 and a forward P/E of 4.89, with an enterprise value of $4.1 billion and LTM EBITDA of $641 million, resulting in an attractive EV/EBITDA multiple of 6.4x [1][4]. - Levered free cash flow is approximately $600 million, providing the company with the flexibility to reinvest in expansion, pursue acquisitions, or return capital to shareholders [4]. Growth Drivers - Passenger traffic across CAAP's airports grew by 13.7% last quarter, driven by both domestic and international demand, and is expected to continue growing due to Argentina's pro-business policies under President Javier Milei [3]. - The extension of airport leases by ten years at no extra cost and the encouragement of competition from international and low-cost carriers are anticipated to drive higher passenger volumes and revenue growth [3]. Future Outlook - With the ongoing recovery in air travel and Argentina's economic improvements, CAAP is projected to achieve annual revenue growth of over 15% in the coming years, alongside margin expansion [5]. - The combination of undervaluation, high-quality assets, strong cash flow, and multiple growth catalysts positions CAAP as a compelling investment opportunity for both equity and credit investors [5].

Group 1 - Corporación América Airports S.A. is one of the largest airport operators globally, managing over 50 airports [1] - The company operates in a sector characterized by significant uncertainties, impacting its performance and outlook [1] Group 2 - The analysis focuses on fundamental aspects, aiming to identify undervalued stocks with growth potential [1]