Equity Analysis /
Mexico

Grupo Aeroportuario del Pacifico: Flash: June Passengers confirm more moderate growth

  • In June, GAP reported a total passenger growth of 18.6% y/y, driven by a good demand dynamism

  • The annual increase in Mexico airports was 16.0%, in line with our 17.0% expectation

  • Traffic passengers are expected to continue to grow, although at a more moderate pace in the coming months

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
6 July 2022
Published byBanorte

Gap announced that, total passengers in June showed an increase of 18.6% y/y, considering the 14 airports it operates, driven by a good demand dynamism and normalized comparative base. Thus, domestic passengers grew up 18.3% y/y, while international passengers rose 18.9% y/y.

The annual increase in total traffic of the 12 airports operating in Mexico was 16.0%, in line with our expectation of 17.0%. In turn, Montego Bay Airport in Jamaica (MBJ) climbed 38.3% annually –surpassing pre-pandemic figures, representing 100.4% vs. 2019 June figure– while Kingston Airport registered a 13.0% m/m advance. Finally, the group mentioned, two new routes were opened during the month, and the volume of seats offered increased by 23.7% y/y, while the load factor was placed at 81.6% vs. 77.6% in June 2021.

Neutral implication: Although Gap’s June figures underpin continued growth, albeit more moderate pace for the coming months, we still find it the least attractive in the sector due to its valuation –FV/EBITDA of 12.4x vs. 11.2x domestic sector. Meanwhile, it will be relevant to know the updated outlook that may be communicated in the 2Q22 report to be released in the following weeks.