Gap announced that October total passengers registered a 21.6% y/y increase vs. 24.0%e, integrated by domestic passengers’ growth of 20.8% and international passengers’ rise of 22.9%, due to a demand that continues to show strength. It should be noted that total traffic advance of the 12 airports operating in Mexico was 18.6% y/y, slightly below our 21.0% estimate.
Additionally, the group mentioned that 2 new routes were opened during the month and the volume of seats offered rose 18.9% y/y, while the annual increase in the load factor was 7.4pp to 81.3%.
Neutral implication: Favorable demand performance in Mexico, as well as a Jamaica’s continues recovery, reaffirms our expectation of solid passenger gains going forward. However, the group still appears to us to be the least attractive in the sector due to valuation levels at 11.7x FV/EBITDA (vs. 10.9x national peers average), already incorporate, in our view, much of the favorable outlook.