Equity Analysis /
Mexico

Grupo Aeroportuario del Pacifico: Flash: Reaffirms the expectation of continued growth in demand

  • In August, Gap reported a 24.9% y/y increase in passenger traffic, reaffirming the expectation of continued growth

  • In Mexico, the total traffic at Mexico’s 12 airports was 22.0%, in line with our 21.0% estimate

  • We believe the valuation already reflects part of the favorable outlook, making it the least attractive in the 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 September 2022
Published byBanorte

Gap announced that, total passengers in August showed an increase of 24.9% y/y, driven by an advanced in domestic passengers of 24.7% and international passengers of 25.2% This was due to a demand that keeps showing a strong performance. It is worth mentioning that the rise in total traffic at Mexico’s 12 airports was 22.0%, in line with our 21.0% estimate.

Finally, the group noted that 2 new routes were opened during the month and the volume of seats offered climbed 22.7% y/y, while the load factor was placed at 80.2% vs. 77.5% in August 2021.

Neutral implication: Strong demand performance in Mexico, along with a broader recovery in Jamaica, supports our expectation of sustained growth going forward. However, we still consider the group to be the least attractive in the sector due to valuation levels at 11.9x FV/EBITDA (vs. 10.9x average national), which in our view reflects most of the favorable outlook.