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.
