Equity Analysis /
Mexico

Grupo Aeroportuario del Pacifico: Expected to be the group with the greatest passenger growth during November

  • Gap’s total passengers in November increased 22.3% (vs 23.0%e), given favorable demand performance

  • Domestic segment grew of 21.6%y/y and international 23.3%. Mexico’s traffic increase was 20.2% y/y vs 20.0%e

  • Growth perspectives for the group remain favorable, although we believe this is already reflected in the valuation

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

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Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

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Banorte
8 December 2022
Published byBanorte

Gap reported that total passengers in October showed an annual increase of 22.3% vs. 23.0%e, comprised by an increase in domestic passengers of 21.6% and in international passengers of 23.3%, as a result of a good demand performance. It should be noted that total traffic increase at the 12 airports it operates in Mexico was 20.2% y/y, in line with our estimate of 20.0%.  

On the other hand, the group mentioned that 8 new routes were opened during the month and that volume of seats offered rose 23.9% y/y, while annual increase in occupancy factor was 7.9pp to 80.3%.

Neutral implication: The solid performance of demand in Mexico, as well as the continued recovery in Jamaica, point to sustained growth in coming months. Notwithstanding the above, valuation levels at 11.4x FV/EBITDA (vs. 11.1x average of domestic peers) already reflect, in our view, much of the favorable outlook, so we reiterate Hold.