Corporación América Airports S.A. Reports April 2024 Passenger Traffic

Rhea-AI Summary

Corporación América Airports S.A. (CAAP) reported a 4.8% year-on-year decrease in passenger traffic for April 2024, to 6.05 million passengers. Excluding Natal airport, traffic declined by 2.2% YoY.

Domestic passenger traffic dropped 13.8%, significantly affected by Argentina and Ecuador. International traffic improved by 6.3%, thanks to increases in Argentina, Italy, Ecuador, and Uruguay. Cargo volume rose by 10.3%, with Argentina, Ecuador, and Brazil showing notable growth.

Aircraft movements fell by 7.1%, with Italy being the only country to report a rise (10.2%).

Despite challenges, international travel showed resilience, particularly in Italy and Argentina, driven by strong growth in international passenger traffic.

Positive

• International passenger traffic increased by 6.3% YoY.
• Cargo volume grew by 10.3%, particularly in Argentina (13.2%), Ecuador (29.2%), and Brazil (10.6%).
• International traffic in Argentina rose by 9.3% YoY.
• Italian passenger traffic saw a 12% YoY increase, driven by international traffic growth of 14.1%.
• Aircraft movements in Italy increased by 10.2% YoY.
• Transit passengers increased by 10.4% YoY.
• YTD passenger traffic increased slightly by 0.7%.

Negative

• Overall passenger traffic dropped by 4.8% YoY.
• Domestic passenger traffic fell by 13.8% YoY.
• Argentina's domestic traffic declined by 11% YoY.
• Brazil experienced a 13.4% decrease in total passenger traffic.
• Uruguay's cargo volume dropped by 24.1% YoY.
• Aircraft movements decreased by 7.1% YoY.
• Passenger traffic in Ecuador decreased by 6.2% YoY.

Insights

Financial Analyst

Corporación América Airports S.A. (CAAP) reported mixed results for April 2024 passenger traffic. The overall decline of 4.8% in total passenger numbers, or 2.2% when excluding the discontinued Natal operations, suggests a general softness in their domestic market. However, a positive trend in international passenger traffic, indicated by a 6.3% increase YoY, provides a key point of optimism.

The domestic passenger traffic struggle, notably a 13.8% YoY drop, was influenced by various factors like the end of government incentives in Argentina and operational difficulties in Brazil. Investors should closely monitor how these local markets evolve, as recovery in domestic travel is essential for CAAP’s overall performance.

In terms of financial implications, the increase in cargo volume by 10.3% YoY is a compelling positive indicator, suggesting strong demand in air freight operations. This diversification helps mitigate the risks associated with passenger traffic volatility.

However, the 7.1% drop in aircraft movements could signal underlying operational challenges or reduced flight frequencies, which may affect future revenue streams. The mixed performance across regions, with some countries like Italy showing growth, contrasts with persistent issues in markets like Argentina and Brazil.

Key takeaway for investors: While international traffic and cargo volumes show promise, the overall decline in passenger numbers and aircraft movements might signal a cautious outlook. Analyzing regional performance and external factors impacting domestic travel will be important for future assessments.

Market Research Analyst

The reported figures highlight several market dynamics affecting Corporación América Airports S.A. The strong international passenger growth in countries like Italy (+12.0% YoY) suggests a recovery in international travel, possibly driven by pent-up demand post-pandemic. This is particularly significant as it shows resilience in tourism-heavy regions and could imply a shift in travel preferences or improved airline operations there.

Conversely, the domestic traffic decline across several regions, especially a 13.8% drop YoY, signals potential economic headwinds or operational disruptions in those markets. For instance, Argentina's domestic struggles are partly due to the cessation of the 'Previaje' program, indicating a heavy reliance on government incentives to boost travel.

The cargo volume increase by 10.3% YoY is notable, reflecting a healthy demand for air freight services. This trend suggests that while passenger services face volatility, CAAP can leverage its cargo operations as a steady income stream. The significant rise in cargo volumes in Ecuador and Argentina further underscores this point.

Overall, the figures paint a picture of a company navigating a complex landscape with both challenges and opportunities. Investors should weigh the robust performance in international travel and cargo against the broader struggles in domestic travel markets.

Aviation Industry Expert

Corporación América Airports S.A. shows a nuanced operational landscape with notable regional variations. The increase in international passenger traffic (+6.3% YoY) indicates a recovery trend in global travel, which is important for an airport operator with extensive international operations. This rise, especially in Italy and Argentina, suggests improvements in airline connectivity and traveler confidence.

However, the substantial drop in domestic traffic (-13.8% YoY) across key markets like Argentina and Brazil reveals systemic issues, such as economic instability, policy changes and operational disruptions. These factors can significantly affect airport revenues, which are often more reliant on domestic passengers.

The positive cargo volume trend, with a 10.3% YoY increase, highlights the importance of cargo operations in counterbalancing passenger traffic volatility. As global supply chains recover, CAAP's robust cargo performance in countries like Ecuador (29.2% increase) showcases its strategic advantage in air freight logistics.

Investors should consider the implications of these operational variances. The mixed performance points to a challenging yet opportunistic environment where strategic focus on high-growth international markets and cargo operations could provide resilience against domestic market struggles.

Total passenger traffic down 4.8% YoY, or 2.2% YoY ex-Natal

International passenger traffic up 6.3% YoY

LUXEMBOURG--(BUSINESS WIRE)-- Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”), one of the leading private airport operators in the world, reported today a 4.8% year-on-year (YoY) decrease in passenger traffic in April 2024. Excluding Natal for comparison purposes, total traffic in April decreased by 2.2% YoY.

Monthly Passenger Traffic Performance (In million PAX) (Graphic: Business Wire)

Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2024 vs. 2023)
Statistics	Apr'24	Apr'23	% Var.		YTD’24	YTD'23		% Var.
Domestic Passengers (thousands)	3,110	3,608	-13.8%		13,340	14,132		-5.6%
International Passengers (thousands)	2,404	2,262	6.3%		9,360	8,398		11.5%
Transit Passengers (thousands)	536	485	10.4%		2,334	2,322		0.5%
Total Passengers (thousands)	6,050	6,354	-4.8%		25,034	24,853		0.7%
Cargo Volume (thousand tons)	33.0	29.9	10.3%		121.0	115.1		5.1%
Total Aircraft Movements (thousands)	64.4	69.3	-7.1%		264.5	269.1		-1.7%

Passenger Traffic Overview

Total passenger traffic declined 4.8% compared to the same month of 2023, or 2.2% when adjusting for the discontinuation of the Natal airport. Domestic passenger traffic was down 13.8% year-over-year (YoY), or 9.9% when excluding Natal, mainly impacted by weaker performances in Argentina and Ecuador. International traffic was up 6.3%, mainly driven by Argentina and Italy and, to a lesser extent, Ecuador and Uruguay.

In Argentina, total passenger traffic declined 5.2% YoY, driven by weaker performance in domestic traffic, which was down 11.0% YoY. Domestic traffic, which last year included incentives from a government program (called 'Previaje') to boost domestic tourism, was also impacted by some flight cancellations and the temporary suspension of a few routes operated by Aerolíneas Argentinas. In addition, Bariloche Airport was closed for four days due to maintenance works. International passenger traffic continued to perform well and increased 9.3% YoY.

In Italy, passenger traffic grew by 12.0% compared to the same month in 2023. International passenger traffic, which accounted for over 80% of the total traffic, increased by 14.1% YoY, with strong performances at both Pisa and Florence airports. Domestic passenger traffic increased by 3.6% YoY, impacted by weaker performance at Pisa Airport, where some pre-pandemic domestic destinations have yet to resume.

In Brazil, total passenger traffic decreased by 13.4% YoY, or by 1.0% YoY when adjusting for the discontinuation of Natal Airport. Domestic traffic, which accounted for almost 60% of the total traffic, was down 24.3% YoY, or 7.8% when excluding Natal, while transit passengers were up 12.0% YoY. Traffic in Brazil remained heavily impacted by financial and aircraft constraints in some of the local airlines. As a reminder, following the friendly termination process concluded in February 2024, CAAP no longer operates Natal Airport, effective February 19, 2024. Therefore, statistics for Natal are available up to February 18, 2024.

In Uruguay, total passenger traffic, predominantly international, continued its recovery and increased by 2.0% YoY, despite the tough comparison of having the Easter holiday in April last year. JetSMART Airlines has announced the launch of a new route between Montevideo and Buenos Aires in May, while SKY Airline will increase the frequency of its Montevideo to Lima route, also in May.

In Ecuador, passenger traffic decreased by 6.2% YoY as the increase in international traffic was more than offset by weak performance in domestic traffic. International passenger traffic increased by 2.0% YoY, while domestic traffic decreased by 13.1% YoY, mainly driven by the exit of the local airline Equair.

In Armenia, passenger traffic decreased by 4.4% YoY, following a strong recovery experienced in 2023, which benefited from the introduction of new airlines, along with a higher number of flight frequencies.

Cargo Volume and Aircraft Movements

Cargo volume increased by 10.3% compared to the same month in 2023, with positive YoY contributions from all countries of operation except for Uruguay, where cargo volumes were down by 24.1%. Argentina, Ecuador, and Brazil accounted for over 70% of the total volume and experienced YoY increases of 13.2%, 29.2%, and 10.6%, respectively.

Aircraft movements decreased by 7.1% YoY, with all countries of operation experiencing YoY declines except for Italy, where aircraft movements increased by 10.2% YoY. Argentina, Brazil, and Italy accounted for more than 80% of total aircraft movements in April.

Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2024 vs. 2023)
	Apr'24	Apr'23	% Var.		YTD'24	YTD'23	% Var.
Passenger Traffic (thousands)
Argentina	3,142	3,315	-5.2%		13,954	13,584	2.7%
Italy	809	722	12.0%		2,285	2,018	13.2%
Brazil (1)	1,139	1,316	-13.4%		5,044	5,566	-9.4%
Uruguay	162	159	2.0%		801	656	22.2%
Ecuador	409	436	-6.2%		1,519	1,578	-3.7%
Armenia	388	406	-4.4%		1,431	1,451	-1.4%
TOTAL	6,050	6,354	-4.8%		25,034	24,853	0.7%

(1)

Following the friendly termination process concluded in February 2024, CAAP no longer operates Natal airport. Statistics for Natal are available up to February 18, 2024.

Cargo Volume (tons)
Argentina	17,229	15,218	13.2%		61,463	58,840	4.5%
Italy	1,060	1,004	5.5%		4,175	4,366	-4.4%
Brazil	5,205	4,705	10.6%		20,612	20,751	-0.7%
Uruguay	2,720	3,586	-24.1%		9,613	10,567	-9.0%
Ecuador	3,717	2,878	29.2%		13,012	10,793	20.6%
Armenia	3,083	2,547	21.0%		12,082	9,786	23.5%
TOTAL	33,014	29,939	10.3%		120,957	115,103	5.1%
Aircraft Movements
Argentina	34,293	36,910	-7.1%		148,308	147,265	0.7%
Italy	7,432	6,745	10.2%		21,127	19,265	9.7%
Brazil	11,349	12,752	-11.0%		46,956	51,462	-8.8%
Uruguay	2,434	2,803	-13.2%		12,154	11,984	1.4%
Ecuador	5,995	6,632	-9.6%		24,982	26,284	-5.0%
Armenia	2,919	3,469	-15.9%		11,008	12,885	-14.6%
TOTAL	64,422	69,311	-7.1%		264,535	269,145	-1.7%

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport concessions. Currently, the Company operates 52 airports in 6 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). In 2023, Corporación América Airports served 81.1 million passengers, 23.7% above the 65.6 million passengers served in 2022 and 3.6% below the 84.2 million served in 2019. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit http://investors.corporacionamericaairports.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240520177353/en/

Investor Relations Contact

Patricio Iñaki Esnaola

Email: patricio.esnaola@caairports.com

Phone: +5411 4899-6716

Source: Corporación América Airports

FAQ

What was the year-on-year change in passenger traffic for CAAP in April 2024?

Passenger traffic decreased by 4.8% year-on-year in April 2024.

How much did international passenger traffic increase for CAAP in April 2024?

International passenger traffic increased by 6.3% year-on-year in April 2024.

Which country's cargo volume saw the highest increase for CAAP in April 2024?

Ecuador's cargo volume saw the highest increase, growing by 29.2% year-on-year.

What was the change in domestic passenger traffic for CAAP in April 2024?

Domestic passenger traffic fell by 13.8% year-on-year.

How did aircraft movements change for CAAP in April 2024?

Aircraft movements decreased by 7.1% year-on-year.

What was the passenger traffic change in Argentina for CAAP in April 2024?

Argentina's total passenger traffic declined by 5.2% year-on-year.

How did Italy's passenger traffic perform for CAAP in April 2024?

Italy's passenger traffic grew by 12% year-on-year.

Why was CAAP's domestic traffic in Argentina down in April 2024?

The decline was due to the end of the 'Previaje' government program, flight cancellations, and temporary route suspensions.