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

Rhea-AI Summary

Corporación América Airports S.A. (NYSE: CAAP) reported a 8.9% year-on-year decrease in passenger traffic for June 2024. Excluding Natal airport, the decline was 6.7%. Key highlights include:

- Domestic traffic down 20.3% YoY
- International traffic up 9.4% YoY
- Cargo volume increased by 4.3% YoY
- Aircraft movements decreased by 10.5% YoY

Notable country performances:
- Argentina: Total traffic down 14.1%, with domestic traffic declining 22.3%
- Italy: Traffic grew 15.2%, driven by international passengers
- Brazil: Traffic decreased 14.9% (4.4% excluding Natal)
- Uruguay: Strong 21.1% YoY increase in traffic

Positive

• International passenger traffic up 9.4% YoY
• Cargo volume increased by 4.3% YoY
• Italy's passenger traffic grew by 15.2% YoY
• Uruguay's passenger traffic increased by 21.1% YoY
• New routes launched in Argentina and Uruguay

Negative

• Total passenger traffic down 8.9% YoY (6.7% excluding Natal)
• Domestic passenger traffic decreased 20.3% YoY
• Aircraft movements decreased by 10.5% YoY
• Argentina's total passenger traffic declined 14.1% YoY
• Brazil's passenger traffic decreased by 14.9% YoY (4.4% excluding Natal)
• Ecuador's passenger traffic decreased by 6.6% YoY

Insights

Financial Analyst

Passenger Traffic: A Mixed Picture

The decline in total passenger traffic by 8.9% YoY, or 6.7% when excluding the Natal airport, is a matter of concern. This drop suggests potential challenges in overall demand or operational issues. The dive in domestic passenger traffic by 20.3% YoY, primarily driven by Argentina's 22.3% decline, highlights economic or operational troubles in key markets.

On the other hand, the international passenger traffic increase of 9.4% YoY, with notable growth in Argentina, Italy and Uruguay, offers some relief. This indicates an uptick in cross-border travel demand, which could potentially boost future revenues.

Financial Implications

The reduction in total passenger numbers might negatively impact revenue, although the rise in international passengers could partially offset this if international travel generally results in higher ticket prices and ancillary spending. However, the overall decline could strain profit margins.

A short-term concern involves operational costs remaining constant or increasing despite lower passenger volumes. Long-term, if domestic traffic continues to falter, the company might need to reassess its operational strategies and market focus.

Market Research Analyst

Industry Dynamics and Regional Variations

The varied regional performance is telling of the broader industry dynamics. Argentina's domestic decline, exacerbated by the end of the 'Previaje' program and flight cancellations, signals underlying economic instability. Meanwhile, increased international routes in Italy and Uruguay reflect robust market demand in these regions.

The improvement in international traffic for most regions could hint at stronger demand for international travel, despite regional economic challenges. The rise in cargo volume by 4.3% YoY is particularly noteworthy, suggesting a potential uptick in global trade activities.

Strategic Insights

For investors, understanding these regional disparities is key. While the overall passenger decline is a concern, the growth in international traffic places CAAP in a potentially advantageous position to capitalize on international demand recovery post-COVID. Long-term strategies might involve expanding international routes and optimizing domestic operations.

Insights into the performance in Italy and Uruguay also highlight where to look for growth and stability amid otherwise turbulent results. This regional focus could be beneficial in portfolio diversification.

Total passenger traffic down 8.9% YoY, or 6.7% YoY ex-Natal

International passenger traffic up 9.4% 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 8.9% year-on-year (YoY) decrease in passenger traffic in June 2024. Excluding Natal for comparison purposes, total traffic in June decreased by 6.7% YoY.

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

Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2024 vs. 2023)
Statistics	Jun'24	Jun'23	% Var.		YTD’24	YTD'23		% Var.
Domestic Passengers (thousands)	3,039	3,812	-20.3%		19,337	21,679		-10.8%
International Passengers (thousands)	2,595	2,371	9.4%		14,441	13,065		10.5%
Transit Passengers (thousands)	554	609	-9.1%		3,399	3,482		-2.4%
Total Passengers (thousands)1	6,188	6,792	-8.9%		37,177	38,226		-2.7%
Cargo Volume (thousand tons)	30.5	29.3	4.3%		183.0	175.9		4.0%
Total Aircraft Movements (thousands)	65.3	73.0	-10.5%		394.6	414.7		-4.8%
1 Excluding Natal for comparison purposes, total passenger traffic was down 6.7% in June and 0.7% YTD.

Passenger Traffic Overview

Total passenger traffic declined 8.9% compared to the same month of 2023, or 6.7% when adjusting for the discontinuation of the Natal airport. Domestic passenger traffic was down 20.3% year-over-year (YoY), or 17.0% when excluding Natal, mainly impacted by weaker performances in Argentina and, to a lesser extent, Ecuador. International traffic was up 9.4%, mainly driven by Argentina, Italy and Uruguay.

In Argentina, total passenger traffic declined 14.1% YoY, driven by weaker performance in domestic traffic, which was down by 22.3% YoY. Domestic traffic, which last year benefited from incentives provided by a government program called 'Previaje' to boost domestic tourism, continued to be impacted by some flight cancellations by Aerolíneas Argentinas and Flybondi, in addition to the prevailing recession in the country. However, some tourist destinations, such as Bariloche and Jujuy, experienced sequential improvements compared to the previous month. International passenger traffic continued to perform well, increasing by 12.1% YoY. During June, Avianca inaugurated a new route from Ezeiza to Medellin, and ITA increased the frequency of its route from Ezeiza to Rome.

In Italy, passenger traffic grew by 15.2% compared to the same month in 2023. International passenger traffic, which accounted for over 80% of the total traffic, increased by 17.4% YoY, with strong performances at both Pisa and Florence airports. Domestic passenger traffic increased by 6.9% YoY, driven by a 12.6% increase at Pisa airport which was partially offset by a decline of 5.6% at Florence airport.

In Brazil, total passenger traffic decreased by 14.9% YoY, or by 4.4% YoY when adjusting for the discontinuation of Natal Airport. Domestic traffic, which accounted for almost 60% of the total traffic, was down 21.0% YoY, or 4.9% when excluding Natal, while transit passengers were down 5.6% YoY. Traffic in Brazil remained heavily impacted by financial and aircraft constraints in some of the local airlines, causing a lack of supply. 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 a strong 21.1% YoY. JetSMART Airlines inaugurated a new route between Montevideo and Buenos Aires with two daily frequencies, which started operating on May 29, positively impacting June traffic.

In Ecuador, passenger traffic decreased by 6.6% YoY as the increase in international traffic was more than offset by weak performance in domestic traffic. International passenger traffic increased by 4.7% YoY, while domestic traffic decreased by 15.7% YoY, mainly driven by the exit of the local airline Equair and national insecurity issues.

In Armenia, passenger traffic decreased by 4.8% 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 4.3% compared to the same month in 2023, with positive YoY contributions from Argentina, Ecuador, Brazil and, to a lesser extent, Armenia, which were more than offset by negative YoY variances in Uruguay and Italy. Argentina, Ecuador, and Brazil accounted for 80% of the total volume and experienced YoY increases of 4.7%, 25.8%, and 4.6%, respectively.

Aircraft movements decreased by 10.5% YoY, with all countries of operation experiencing YoY declines except for Italy, where aircraft movements increased by 6.1% YoY. Argentina, Brazil, and Italy accounted for more than 80% of total aircraft movements in June.

Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2024 vs. 2023)
	Jun'24	Jun'23	% Var.		YTD'24	YTD'23	% Var.
Passenger Traffic (thousands)
Argentina	3,011	3,506	-14.1%		19,881	20,531	-3.2%
Italy	949	824	15.2%		4,122	3,610	14.2%
Brazil (1)	1,203	1,415	-14.9%		7,413	8,372	-11.5%
Uruguay	163	135	21.1%		1,120	930	20.5%
Ecuador	371	398	-6.6%		2,284	2,385	-4.2%
Armenia	490	514	-4.8%		2,356	2,399	-1.8%
TOTAL	6,188	6,792	-8.9%		37,177	38,226	-2.7%
(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	15,777	15,072	4.7%		94,096		90,687		3.8%
Italy	1,047	1,163	-10.0%		6,359		6,735		-5.6%
Brazil	5,702	5,450	4.6%		30,898		31,534		-2.0%
Uruguay	2,615	2,834	-7.7%		15,214		15,950		-4.6%
Ecuador	2,804	2,229	25.8%		19,094		15,934		19.8%
Armenia	2,575	2,525	2.0%		17,343		15,101		14.8%
TOTAL	30,519	29,273	4.3%		183,005		175,941		4.0%
Aircraft Movements
Argentina	33,243	37,928	-12.4%		214,623		223,141		-3.8%
Italy	8,766	8,265	6.1%		38,222		35,042		9.1%
Brazil	11,361	13,965	-18.6%		69,857		79,654		-12.3%
Uruguay	2,206	2,249	-1.9%		16,567		16,557		0.1%
Ecuador	6,125	6,518	-6.0%		37,404		39,677		-5.7%
Armenia	3,642	4,062	-10.3%		17,960		20,647		-13.0%
TOTAL	65,343	72,987	-10.5%		394,633		414,718		-4.8%

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/20240716472338/en/

Investor Relations Contact

Patricio Iñaki Esnaola

Email: patricio.esnaola@caairports.com

Phone: +5411 4899-6716

Source: Corporación América Airports

FAQ

What was CAAP's total passenger traffic change in June 2024?

CAAP reported a 8.9% year-on-year decrease in total passenger traffic for June 2024. Excluding Natal airport, the decline was 6.7%.

How did international passenger traffic perform for CAAP in June 2024?

International passenger traffic for CAAP increased by 9.4% year-on-year in June 2024.

What was the change in cargo volume for CAAP in June 2024?

CAAP's cargo volume increased by 4.3% compared to June 2023.

How did passenger traffic in Argentina perform for CAAP in June 2024?

In Argentina, CAAP's total passenger traffic declined 14.1% year-on-year, with domestic traffic down 22.3% and international traffic up 12.1%.

What was the passenger traffic performance in Italy for CAAP in June 2024?

CAAP's passenger traffic in Italy grew by 15.2% compared to June 2023, with international traffic increasing by 17.4% and domestic traffic up 6.9%.