Equity Analysis /
Mexico

ASUR: Flash: International traffic continues surprising

  • In June, ASURs showed a total passengers increase of 23.1% y/y, supported by stronger international traffic demand

  • The nine airports operated in Mexico grew 20.0% y/y, slightly below our 23.0% y/y estimate

  • We reiterate our positive outlook with an attractive valuation (current FV/EBITDA 10.7x vs. 11.4x avg. domestic sector)

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 July 2022
Published byBanorte

In June, Asur's total passengers showed a 23.1% y/y growth, —including the 9 airports it operates in Mexico, the International Luis Muñoz Marin Airport of San Juan, in Puerto Rico (LMM) and the 6 airports in Colombia (Airplan)—, due to a good demand performance. In this way, domestic passengers reported an annual rise of 17.9%, and international passengers rose to a greater extent of 33.0%. In turn, the traffic of the 9 airports operating in Mexico grew 20.0% y/y, slightly below our 23.0% estimate. On the other hand, passengers at LMM Airport surprised negatively by falling 5.8% annually, while those from Colombia had a significant increase of 66.0% y/y.

Neutral implication: The favorable dynamism of Colombia’s operations, followed by those in Mexico, was partially offset by the drop in Puerto Rico’s traffic due to weaker domestic demand. However, in the aggregate, the positive international traffic performance continues to support growth expectations in the coming months. Considering the above and attractive valuation (current 10.7x FV/EBITDA vs. 11.4x average domestic sector), we reiterate our positive company’s outlook. We will be attentive to the 2Q22 results that which will be released next Monday, July 25, after the market closes, where we expect the significant growth to continue.