Equity Analysis /
Mexico

Grupo Aeroportuario Centro Norte: Flash: Slower recovery pace due to weak international traffic

  • In June, Oma reported a passengers increase of 22.2% y/y, slightly below our 26.0% estimate

  • Domestic passengers grew by 26.2% annually, while international passengers decreased again by 2.5% y/y

  • Nevertheless, we reiterate our favorable 2H22 outlook driven by solid demand and attractive valuation FV/EBITDA of 10.7x

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

Oma reported that in June, the total number of passengers in the 13 airports it operates showed an annual rise of 22.2%, slightly below our 26.0% estimate. Although domestic passengers grew by 26.2% annually, international passengers decreased again by 2.5% y/y. In turn, Monterrey airport –47.3% of total passengers– showed an increase of 24.6% y/y. On the other hand, the company mentioned during the month began to operate one new route (Monterrey – Las Vegas Frontier).

Neutral implication: Even though Oma’s passengers reflected more moderate growth in the month, we believe the demand outlook for the 2H22 remains favorable. In that sense, we reiterate our positive company view driven by solid expected growth and attractive valuation (FV/EBITDA of 10.7x vs. 11.2x national sector and 13.2x L5Y pre-pandemic). In this way, we will keep an eye out for any updates it might share in the release of the 2Q22 report in the coming weeks.