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

Rhea-AI Summary

Corporación América Airports S.A. (NYSE: CAAP) reports a 2.0% YoY increase in passenger traffic in January 2024, reaching 91.7% of January 2019 levels. International passenger traffic is 0.3% above pre-pandemic levels. The company showcases growth in cargo volume and aircraft movements, with varying performances across different regions.

Insights

Market Research Analyst

The reported increase in passenger traffic for Corporación América Airports S.A. (CAAP) is a positive indicator for the aviation sector, suggesting a continued recovery trajectory towards pre-pandemic levels. The data shows a nuanced recovery, with international passenger traffic slightly exceeding pre-pandemic levels, which could signal a shift in consumer behavior favoring international travel or a rebound in global business activities. However, the mixed performance across various countries, such as the notable recovery in Armenia and the decline in Brazil, points to uneven economic recovery and possibly differing levels of consumer confidence or restrictions related to travel.

For investors, the regional variances in traffic recovery could influence strategic decisions on asset allocation within the aviation industry. The increased cargo volume, particularly in Argentina, Ecuador and Uruguay, also reflects broader economic activity and could be a leading indicator for trade and commerce health in these regions. The long-term implication for stakeholders includes potential infrastructure investments to accommodate the changing patterns of passenger and cargo traffic.

Financial Analyst

An 8.4% year-over-year increase in cargo volume is a strong performance metric, especially considering the overall cargo volume has not yet reached pre-pandemic levels. This growth may reflect an increase in trade activity or an optimization of cargo operations by CAAP. The financial health of the company could benefit from this uptick in cargo volume, as cargo operations often provide a stable revenue stream, less susceptible to the volatility seen in passenger traffic.

However, the overall passenger traffic still being below pre-pandemic levels by 8.3% indicates that while there is growth, the company has not fully recovered from the pandemic's impact. This could affect the company's short-term revenue and profitability. The detailed breakdown of passenger traffic growth in key markets like Argentina and Italy, versus the decline in markets like Brazil, provides a more granular understanding of regional performance, which is critical for investors assessing the company's growth prospects and risk factors.

Economist

The reported figures could be indicative of broader economic trends, such as the resurgence of international trade and tourism. The differential recovery rates among domestic and international passengers could reflect varying degrees of economic resilience and public health strategies in response to the pandemic. For instance, the significant YoY increase in international traffic in Italy might be associated with the country's appeal as a tourist destination and its economic ties within the European Union.

Conversely, the financial and aircraft constraints impacting Brazil's passenger traffic suggest underlying economic challenges that extend beyond the aviation sector. These challenges could have broader implications for regional economic stability and growth prospects. The data provided by CAAP could therefore serve as an economic barometer for the regions in which it operates, offering insights into the post-pandemic economic recovery and the resilience of the aviation industry as a whole.

Total passenger traffic up 2.0% YoY, reaching 91.7% of January 2019 levels

International passenger traffic 0.3% above pre-pandemic

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 2.0% year-on-year (YoY) increase in passenger traffic in January 2024, reaching 91.7% of January 2019 levels.

2-Year Passenger Traffic Monthly Performance (vs. 2019) (Graphic: Business Wire)

Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2024 vs. 2023)
Statistics	Jan'24	Jan'23	% Var.
Domestic Passengers (thousands)	3,610	3,639	-0.8%
International Passengers (thousands)	2,387	2,136	11.7%
Transit Passengers (thousands)	643	732	-12.1%
Total Passengers (thousands)	6,640	6,507	2.0%
Cargo Volume (thousand tons)	28.6	26.3	8.4%
Total Aircraft Movements (thousands)	69.8	69.1	0.9%
Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2024 vs. 2019)
Statistics	Jan'24	Jan'19	% Var.
Domestic Passengers (thousands)	3,610	4,010	-10.0%
International Passengers (thousands)	2,387	2,380	0.3%
Transit Passengers (thousands)	643	850	-24.3%
Total Passengers (thousands)	6,640	7,240	-8.3%
Cargo Volume (thousand tons)	28.6	33.0	-13.5%
Total Aircraft Movements (thousands)	69.8	74.7	-6.6%

(1)

Note that preliminary passenger traffic figures for 2019, as well as January 2020 for Ezeiza Airport, in Argentina, were adjusted to include additional inbound passengers not accounted for in the initial count, for an average of approximately 5% of total passenger traffic at Ezeiza Airport and 1% of total traffic at CAAP, during that period. Importantly, inbound traffic does not affect revenues, as tariffs are applicable on departure passengers.

(2)

Cargo volumes in Uruguay were rectified from January 2019 to June 2020, to reflect all cargo passing through the cargo terminal, instead of air cargo only.

Passenger Traffic Overview

Total passenger traffic grew 2.0% compared to the same month of 2023, reaching 91.7% of January 2019 levels. International passenger traffic surpassed pre-pandemic levels by 0.3%, while domestic traffic stood at 90.0% of January 2019 levels.

In Argentina, total passenger traffic continued to recover in January, increasing by 4.3% year-over-year (YoY) and reaching 97.0% of pre-pandemic volumes. Domestic traffic was 1.7% higher than the levels in January 2019, while International traffic reached 88.0% of pre-pandemic levels, down from the 97.7% recorded in December, mainly as a result of a tough comparison due to a particularly strong January 2019.

In Italy, passenger traffic grew by 8.6% compared to the same month in 2023, reaching 99.8% of January 2019 levels, up from the 95.0% recorded in December. International passenger traffic, which accounted for over 75% of the total traffic, was 4.4% higher than January 2019 levels, while domestic passenger traffic was 12.3% below pre-pandemic levels. Although total traffic is still below pre-pandemic levels, Florence airport exceeded January 2019 traffic volumes.

In Brazil, total passenger traffic decreased by 5.9% YoY, reaching 80.2% of January 2019 levels, down from the 84.4% recorded in December. Domestic traffic, which accounted for over 60% of the total traffic, reached 85.5% of pre-pandemic levels, while transit passengers stood at 68.9% of January 2019 levels, a decrease from the 78.1% recorded in December. Traffic in Brazil remained heavily impacted by financial and aircraft constraints in some of the local airlines.

In Uruguay, total passenger traffic, which is largely international, continued to recover and increased 26.3% YoY, reaching 93.9% of pre-pandemic levels of January 2019. However, passenger traffic increased sequentially on an absolute basis.

In Ecuador, passenger traffic decreased 4.3% YoY and stood at 97.8% of pre-pandemic volumes. While international passenger traffic exceeded pre-pandemic levels by 6.3%, domestic traffic reached 90.1% of January 2019 levels, impacted by the exit of the local airline Equair.

In Armenia, passenger traffic continued its solid recovery trend, increasing by 1.5% YoY and surpassing the pre-pandemic levels of January 2019 by 73.5%.

Cargo Volume and Aircraft Movements

Cargo volume increased 8.4% YoY and reached 86.5% of January 2019 levels, or 87.5% when adjusting for the discontinuation of operations in Peru. Cargo volumes in Armenia and Italy were above pre-pandemic levels, whereas Argentina stood at 82.1%, Uruguay at 95.3%, Ecuador at 79.1%, and Brazil at 77.0%. Around 70% of cargo volume originated in Argentina, Ecuador and Uruguay.

Aircraft movements increased 0.9% YoY, reaching 93.4% of January 2019 levels, or 96.2% when adjusting for the discontinuation of operations in Peru. Aircraft movements were above pre-pandemic levels in Armenia, while it stood at 98.0% in Argentina, 97.3% in Uruguay, 93.9% in Italy, 86.3% in Brazil, and 92.2% in Ecuador.

Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2024 vs. 2023)

	Jan'24	Jan'23	% Var.
Passenger Traffic (thousands)
Argentina(1)	3,738	3,585	4.3%
Italy	459	423	8.6%
Brazil	1,497	1,592	-5.9%
Uruguay	232	183	26.3%
Ecuador	345	361	-4.3%
Armenia	368	363	1.5%
TOTAL	6,640	6,507	2.0%

(1)	See Footnote 1 in previous table. (2) See Footnote 2 in previous table.

Cargo Volume (tons)
Argentina	15,471	13,359	15.8%
Italy	1,029	1,052	-2.2%
Brazil	4,653	4,958	-6.1%
Uruguay(2)	2,022	1,985	1.9%
Ecuador	2,953	2,747	7.5%
Armenia	2,429	2,248	8.1%
TOTAL	28,557	26,348	8.4%
Aircraft Movements
Argentina	39,352	37,642	4.5%
Italy	4,359	4,113	6.0%
Brazil	12,665	13,602	-6.9%
Uruguay	3,835	3,767	1.8%
Ecuador	6,594	6,631	-0.6%
Armenia	2,961	3,380	-12.4%
TOTAL	69,766	69,135	0.9%

Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2024 vs. 2019)

	Jan'24	Jan'19	% Var.
Passenger Traffic (thousands)
Argentina(1)	3,738	3,853	-3.0%
Italy	459	460	-0.2%
Brazil	1,497	1,866	-19.8%
Uruguay	232	247	-6.1%
Ecuador	345	353	-2.2%
Armenia	368	212	73.5%
Peru		249	-
TOTAL	6,640	7,240	-8.3%

(1)	See Footnote 1 in previous table. (2) See Footnote 2 in previous table.

Cargo Volume (tons)
Argentina	15,471	18,845	-17.9%
Italy	1,029	1,027	0.1%
Brazil	4,653	6,042	-23.0%
Uruguay(2)	2,022	2,121	-4.7%
Ecuador	2,953	3,733	-20.9%
Armenia	2,429	859	182.9%
Peru	-	370	-
TOTAL	28,557	32,996	-13.5%
Aircraft Movements
Argentina	39,352	40,140	-2.0%
Italy	4,359	4,644	-6.1%
Brazil	12,665	14,670	-13.7%
Uruguay	3,835	3,941	-2.7%
Ecuador	6,594	7,154	-7.8%
Armenia	2,961	1,948	52.0%
Peru	-	2,164	-
TOTAL	69,766	74,661	-6.6%

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport concessions. Currently, the Company operates 53 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/20240216193710/en/

Investor Relations Contact

Patricio Iñaki Esnaola

Email: patricio.esnaola@caairports.com

Phone: +5411 4899-6716

Source: Corporación América Airports

FAQ

What is the YoY increase in passenger traffic reported by Corporación América Airports S.A. (NYSE: CAAP) in January 2024?

Corporación América Airports S.A. (NYSE: CAAP) reported a 2.0% year-on-year (YoY) increase in passenger traffic in January 2024.

How does the international passenger traffic of Corporación América Airports S.A. (NYSE: CAAP) compare to pre-pandemic levels in January 2024?

International passenger traffic of Corporación América Airports S.A. (NYSE: CAAP) is 0.3% above pre-pandemic levels in January 2024.

What was the percentage change in cargo volume for Corporación América Airports S.A. (NYSE: CAAP) in January 2024 compared to 2023?

Corporación América Airports S.A. (NYSE: CAAP) saw an 8.4% increase in cargo volume in January 2024 compared to 2023.

How did the total aircraft movements change for Corporación América Airports S.A. (NYSE: CAAP) in January 2024 compared to 2023?

Corporación América Airports S.A. (NYSE: CAAP) experienced a 0.9% increase in total aircraft movements in January 2024 compared to 2023.

What was the total passenger traffic percentage change for Corporación América Airports S.A. (NYSE: CAAP) in January 2024 compared to 2019?

Corporación América Airports S.A. (NYSE: CAAP) had a total passenger traffic decrease of 8.3% in January 2024 compared to 2019.