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Grupo Aeroportuario del Pacifico: Flash GAP: Growth in passenger traffic returns in April, exceeding expectations

  • Gap posted an 884.8% y/y jump in passenger traffic in April (14 airports it operates), representing 80.6% vs. April 2019

  • For the 12 airports in Mexico it posted a 798.2% y/y advance, equivalent to 84.3% of 2019's April figure, above 65%-75%e

  • We reiterate our positive company outlook, with strong earnings growth, supported by a low baseline, and better demand

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

5 May 2021
Published byBanorte

Gap unveiled a significant 884.8% y/y jump in April passenger traffic (15.7% vs. March 2021), considering the 14 airports it operates, representing 80.6% vs. April 2019. Such progress derives from an easy comparison base and from the Easter Week demand benefit. As a result, domestic passengers rose 654.1% y/y, while international passengers climbed 1601.1% y/y.

Total passengers at the 12 airports it operates in Mexico registered a 798.2% y/y advance, equivalent to 84.3% of 2019's April figure, above the anticipated 65%-75%. Montego Bay Airport in Jamaica (MBJ) posted a 21.8% m/m increase, similar to Kingston Airport's 22.3% jump in traffic.

Positive implication: Gap's traffic registered a return to stronger-than-expected growth, and we highlight the more favorable figures in the Mexican operations. We reiterate our positive outlook for the company, which includes strong earnings growth starting this quarter, supported by a low comparison base, but also by a better demand outlook. This reinforces our view to participate in the stock.