Equity Analysis /
Mexico

Grupo Aeroportuario del Pacifico: Flash: Passenger dynamism continues, but valuation looks extended

  • Gap’s total passengers in October increased 21.6% y/y vs 24.0%e, due to a demand that continues to show strength

  • Total traffic of the 12 airports operating in Mexico rise 18.6% y/y vs 21.0%e, and the recovery continues in Jamaica

  • The group appears to us to be the least attractive in the sector (11.7x FV/EBITDA vs 10.9x national peers)

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 November 2022
Published byBanorte

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.