Equity Analysis /

Grupo Aeroportuario del Pacifico: Flash: Faster growth rate in demand

  • Gap’s total passengers in September increased 25.9%, given favorable demand performance

  • Jamaica’s recovery and Mexico’s dynamism will keep driving growth; we believe this is already reflected in valuation

  • We will pay special attention to 3Q22 report to be published on October 21st for any prospects update

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

6 October 2022
Published byBanorte

Gap announced that September total passengers registered a 25.9% y/y increase, integrated by domestic passengers’ growth of 23.6% and international passengers’ rise of 30.0%, due to a favorable demand performance. It should be noted that total traffic advance of the 12 airports operating in Mexico was 22.6% y/y, slightly better than our 20.0% estimate.

Additionally, the group mentioned that 8 new routes were opened during the month and the volume of seats offered rose 20.1% y/y, while the annual increase in the load factor went was 4.6pp to 78.3%.

Positive implication: Favorable demand dynamism in Mexico, as well as a Jamaica’s continues recovery, underpins sustained growth for the coming months. However, we still find the company the least attractive in the sector due to valuation levels at 11.2x FV/EBITDA (vs. 10.5x national peers average), which in our view reflects most of the favorable outlook. We will pay special attention to any prospect update that could be communicated in the 3Q22 report to be published next Friday, October 21st.