Grupo Aeroportuario del Pacífico (GAPB) Q2 2024 earnings summary

Executive summary

• Passenger traffic declined 3.9% year-over-year in 2Q24 to 15.3 million, mainly due to ongoing A320neo/A321neo engine inspections, with the impact expected to continue into 2025.

• Despite lower traffic, new international and domestic routes were added in Q2, with further international expansion planned for H2, including Tijuana-Beijing.

• The GWTC cargo company acquisition will be consolidated from Q3 2024, expected to add 10% revenue growth over 2023 and an EBITDA margin of around 40%.

• The second runway at Guadalajara airport was inaugurated, increasing long-term operational capacity by 50%-70%.

• Record passenger traffic of 63.5 million was achieved in 2023, up 11.9% year-over-year, with 81 new routes added.

Financial highlights

• Combined aeronautical and non-aeronautical revenue fell by MXN 213 million, or 3.3% year-over-year in Q2, due to lower passenger traffic.

• Non-aeronautical revenues increased 10.6% in 2Q24 and 12.9% in 6M24, led by food & beverage, car rentals, and VIP lounges.

• EBITDA decreased by MXN 378.7 million (8.3%) year-over-year in Q2, with margin (ex-IFRIC-12) at 66.8%.

• Cash and cash equivalents declined 15.7% to MXN 12.6 billion; debt reached MXN 41.8 billion as of June 2024.

• Net income for 2Q24 was Ps. 2,252.7 million, down 9.5% year-over-year.

Outlook and guidance

• 2024 guidance: passenger traffic expected to decline 3–5%, total revenue to grow 2–4%, EBITDA margin at 67% ±1%, and CAPEX at MXN 9.0 billion.

• Non-aeronautical revenue guidance updated to reflect commercial performance and GWTC consolidation.

• Full recovery of seat capacity is anticipated by mid-2026, depending on engine repair timelines.

• Normalized EBITDA margin target for 2025 is around 68%.

• Revenue and traffic estimates reflect grounded aircraft due to GTF engine inspections and ongoing infrastructure investments.