Equity Analysis /
Mexico

Grupo Aeroportuario Centro Norte: Flash: The recovery in May passengers slows down

  • In May, Oma reported a passengers increase of 28.8% y/y, showing less dynamism-than-expected

  • Despite the above, the demand outlook for the rest of the year remains favorable

  • We reiterate our favorable opinion for the stock given its attractive valuation (10.9x FV/Adj. EBITDA)

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

Banorte
7 June 2022
Published by

Oma reported that in May, the total number of passengers in the 13 airports it operates showed an annual increase of 28.4%, representing 99.0% of the May 2019 figure, below our ~104.0% expectation. Although domestic passengers increased by 35.6% y/y, the negative surprise was in the fall of international passengers by 12.6% y/y. In turn, Monterrey airport –47.0% of total passengers– showed an increase of 30.3% y/y, being 94.7% of the recorded in May 2019. On the other hand, the company mentioned during the month three new routes began to operate.

Neutral implication: Even though Oma passengers showed less dynamism, standing slightly below pre-pandemic levels, the demand outlook continues to be positive for the rest of the year. Likewise, the valuation remains attractive (FV/Adjusted EBITDA of 10.9x vs. 12.2x L5Y before the pandemic), so we reiterate our favorable opinion of the company.