Gap published its total passengers report for February, which showed an increase of 93.6% y/y, considering the 14 airports it operates, which represent 107.1% of February 2019 traffic, all this due to a surprisingly better demand performance. The domestic segment rose 56.8% y/y and the international 174.9% y/y.
The increase in total traffic of the 12 airports operating in Mexico was 85.6% y/y, which is 109.7% compared to the same month of 2019, exceeding our estimate of ~101.0%. In turn, Montego Bay Airport in Jamaica (MBJ) accounted for 67.6% vs. the 2019 figure, while Kingston Airport showed a decline of 15.0% m/m. Finally, the group mentioned that during the month a new route was opened, and that the volume of seats offered increased 32.1% y/y, while the load factor was placed at 73.1% vs. 48.3% in February 2021
Positive implication: The solid demand performance in Mexico boosted Gap's traffic report, which in our opinion, underpins a greater passenger dynamism for the coming months. We believe that the growth outlook remains positive; although, the valuation looks extended, so we reiterate our Hold recommendation.
