Equity Analysis /
Mexico

ASUR: Flash: International traffic performance continues to stand out

  • In July, Asur's total passengers showed a 20.5% y/y growth driven by Colombia and Mexico operations

  • The traffic of the 9 airports operating in Mexico grew 21.5% y/y, slightly above our 18.0% estimate

  • The favorable demand outlook and a FV/EBITDA at 9.7x, reaffirms it as our sector’s favorite

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
5 August 2022
Published byBanorte

In July, Asur's total passengers showed a 20.5% 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 demand that remains solid, mainly in international traffic. In this way, domestic passengers reported an annual increase of 14.7%, and international passengers rose to a greater extent of 31.4%. In turn, the traffic of the 9 airports operating in Mexico grew 21.5% y/y, slightly above our 18.0% estimate. On the other hand, passengers at LMM Airport continued with weakness by falling 10.0% annually, while those from Colombia had a significant increase of 51.3% y/y.

Positive implication: Asur's passengers continued with a positive dynamism, highlighting this month Colombia and Mexico operations, partially offset by the fall in Puerto Rico. It is worth mentioning that the international performance continues to drive traffic and reaffirms the solid growth expectation going forward. In this way, we continue with a positive view for the company given the favorable outlook in demand and results, and we reiterate it as our favorite in the sector, standing out with the most attractive valuation (current FV/EBITDA of 9.7x vs 10.7x national sector avg.)