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

Rhea-AI Summary

Corporación América Airports S.A. (NYSE: CAAP) reported a 9.5% year-over-year (YoY) decrease in total passenger traffic for May 2024. Excluding Natal Airport, the decline was 7.2% YoY. Domestic passenger traffic fell by 20.8% YoY, while international traffic grew by 8.3% YoY. Argentina and Brazil showed significant declines in domestic traffic, whereas Italy and Uruguay reported increases in international traffic. Cargo volume remained flat, with a 0.1% YoY decrease, while aircraft movements dropped by 10.8% YoY. Argentina, Italy, and Uruguay saw increases in cargo volume, although this was offset by declines in Brazil, Armenia, and Italy. Notably, the company stopped operating Natal Airport as of February 2024.

Positive

• International passenger traffic increased by 8.3% YoY.
• Italy's passenger traffic grew by 15.7% YoY, with international traffic up 18.2%.
• Uruguay’s international passenger traffic rose by 12.1% YoY.
• Cargo volume in Uruguay increased by 17.1% YoY.
• Cargo volume in Ecuador rose by 12.6% YoY.
• Aircraft movements in Italy increased by 10.9% YoY.

Negative

• Total passenger traffic declined by 9.5% YoY.
• Domestic passenger traffic was down 20.8% YoY.
• Argentina's domestic passenger traffic dropped by 23.3% YoY.
• Brazil's total passenger traffic decreased by 16.2% YoY.
• Cargo volume in Brazil fell by 14.0% YoY.
• Aircraft movements declined by 10.8% YoY.

Insights

Financial Analyst

The 9.5% YoY decrease in total passenger traffic is significant, especially when paired with a 20.8% drop in domestic passengers. This suggests potential issues in the broader economic environment or specific operational challenges. In contrast, the 8.3% increase in international traffic is a positive note, driven by markets like Argentina, Italy and Uruguay. Investors should note the country's specific variances; for instance, Argentina faces a domestic recession and strikes, which contributed to the decline in local traffic.

Another critical observation is the 4.0% increase in cargo volume YTD, an indication that the company is maintaining resilience in its cargo operations despite the overall drop in passenger numbers. The 10.8% decrease in aircraft movements is concerning as it reflects reduced operational activities across most countries, though Italy is an exception with a notable increase.

In summary, while international traffic growth hints at a recovery in certain markets, the overall decline in passenger and aircraft movements suggests broader systemic challenges that could impact short-term financial performance.

Market Research Analyst

The market dynamics highlighted are multifaceted. Argentina's economic situation, including recession and union strikes, heavily impacted domestic traffic, whereas Italy shows robust growth, particularly in international passengers. This disparity underscores the importance of region-specific strategies. Investors should keep an eye on Italy's strong performance, which may indicate effective local management and potential future gains in international markets.

The overall 17.3% decrease in domestic traffic (excluding Natal) points to potential structural weaknesses or external market pressures affecting local travel. Brazil’s significant drop in traffic due to local airline constraints also emphasizes the need for strategic overhauls or financial support within the aviation sector there.

It's worth noting that despite a mixed performance in passenger traffic, the cargo segment provides a stabilizing factor, particularly with strong growth in Uruguay and Ecuador. This divergence suggests that the company's diversification between passenger and cargo services might mitigate some adverse impacts.

Overall, the data indicates that while CAAP is navigating challenging terrains in some regions, specific growth areas like Italy and the cargo segment offer potential upside.

Total passenger traffic down 9.5% YoY, or 7.2% YoY ex-Natal

International passenger traffic up 8.3% 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 9.5% year-on-year (YoY) decrease in passenger traffic in May 2024. Excluding Natal for comparison purposes, total traffic in May decreased by 7.2% YoY.

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

Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2024 vs. 2023)
Statistics	May'24		May'23		% Var.		YTD’24		YTD'23			% Var.
Domestic Passengers (thousands)	2,958		3,735		-20.8%		16,298		17,867			-8.8%
International Passengers (thousands)	2,487		2,296		8.3%		11,847		10,694			10.8%
Transit Passengers (thousands)	511		550		-7.2%		2,845		2,873			-1.0%
Total Passengers (thousands)1	5,955		6,581		-9.5%		30,989		31,434			-1.4%
Cargo Volume (thousand tons)	31.5		31.6		-0.1%		152.5		146.7			4.0%
Total Aircraft Movements (thousands)	64.8		72.6		-10.8%		329.3		341.7			-3.6%
1 Excluding Natal for comparison purposes, total passenger traffic was down 7.2% in May and up 0.6% YTD.

Monthly Passenger Traffic Performance

(In million PAX)

Passenger Traffic Overview

Total passenger traffic declined 9.5% compared to the same month of 2023, or 7.2% when adjusting for the discontinuation of the Natal airport. Domestic passenger traffic was down 20.8% year-over-year (YoY), or 17.3% when excluding Natal, mainly impacted by weaker performances in Argentina and, to a lesser extent, Ecuador. International traffic was up 8.3%, mainly driven by Argentina, Italy and Uruguay.

In Argentina, total passenger traffic declined 15.3% YoY, driven by weaker performance in domestic traffic, which was down by 23.3% 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 to the prevailing recession in the country. International passenger traffic continued to perform well, increasing by 6.5% YoY. Notably, May traffic was negatively impacted by a general strike launched by Argentine unions on May 9.

In Italy, passenger traffic grew by 15.7% compared to the same month in 2023. International passenger traffic, which accounted for over 80% of the total traffic, increased by 18.2% YoY, with strong performances at both Pisa and Florence airports. Domestic passenger traffic increased by 5.9% 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 16.2% YoY, or by 4.8% YoY when adjusting for the discontinuation of Natal Airport. Domestic traffic, which accounted for over 60% of the total traffic, was down 20.8% YoY, or 3.6% when excluding Natal, while transit passengers were down 7.5% 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 12.1% YoY. During May, JetSMART Airlines inaugurated a new route between Montevideo and Buenos Aires with two daily frequencies, while SKY Airline increased the frequency of its Montevideo to Lima route.

In Ecuador, passenger traffic decreased by 3.8% YoY as the increase in international traffic was more than offset by weak performance in domestic traffic. International passenger traffic increased by 5.1% YoY, while domestic traffic decreased by 11.6% YoY, mainly driven by the exit of the local airline Equair and national insecurity issues.

In Armenia, passenger traffic increased by 0.6% 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 remained largely flat compared to the same month in 2023, with positive YoY contributions from Uruguay, Ecuador and, to a lesser extent, Argentina, which were more than offset by negative YoY variances in Brazil, Armenia and Italy. Argentina, Ecuador, and Uruguay accounted for over 70% of the total volume and experienced YoY increases of 0.5%, 12.6%, and 17.1%, respectively.

Aircraft movements decreased by 10.8% YoY, with all countries of operation experiencing YoY declines except for Italy, where aircraft movements increased by 10.9% YoY. Argentina, Brazil, and Italy accounted for more than 80% of total aircraft movements in May.

Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2024 vs. 2023)
	May'24		May'23		% Var.		YTD'24		YTD'23		% Var.
Passenger Traffic (thousands)
Argentina	2,916		3,441		-15.3%		16,870		17,025		-0.9%
Italy	888		767		15.7%		3,173		2,785		13.9%
Brazil (1)	1,165		1,392		-16.2%		6,209		6,957		-10.7%
Uruguay	156		139		12.1%		957		795		20.4%
Ecuador	393		409		-3.8%		1,913		1,987		-3.8%
Armenia	436		433		0.6%		1,867		1,884		-0.9%
TOTAL	5,955		6,581		-9.5%		30,989		31,434		-1.4%
(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			16,856		16,775		0.5%		78,319		75,614		3.6%
Italy			1,137		1,207		-5.8%		5,313		5,573		-4.7%
Brazil			4,584		5,332		-14.0%		25,196		26,083		-3.4%
Uruguay			2,986		2,549		17.1%		12,599		13,116		-3.9%
Ecuador			3,279		2,912		12.6%		16,291		13,705		18.9%
Armenia			2,686		2,790		-3.7%		14,768		12,576		17.4%
TOTAL			31,528		31,564		-0.1%		152,485		146,667		4.0%
Aircraft Movements
Argentina			33,072		37,948		-12.8%		181,380		185,213		-2.1%
Italy			8,329		7,512		10.9%		29,456		26,777		10.0%
Brazil			11,540		14,227		-18.9%		58,496		65,689		-11.0%
Uruguay			2,207		2,324		-5.0%		14,361		14,308		0.4%
Ecuador			6,297		6,875		-8.4%		31,279		33,159		-5.7%
Armenia			3,310		3,700		-10.5%		14,318		16,585		-13.7%
TOTAL			64,755		72,586		-10.8%		329,290		341,731		-3.6%

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/20240617090931/en/

Investor Relations Contact

Patricio Iñaki Esnaola

Email: patricio.esnaola@caairports.com

Phone: +5411 4899-6716

Source: Corporación América Airports

FAQ

Why did CAAP's total passenger traffic decline in May 2024?

CAAP's total passenger traffic declined by 9.5% YoY due to weaker domestic performances in Argentina and Brazil.

How did CAAP's international passenger traffic perform in May 2024?

CAAP's international passenger traffic increased by 8.3% YoY, driven by growth in Argentina, Italy, and Uruguay.

What was the impact of excluding Natal Airport on CAAP's passenger traffic?

Excluding Natal Airport, CAAP's total passenger traffic decreased by 7.2% YoY.

How did the cargo volume for CAAP perform in May 2024?

CAAP's cargo volume remained largely flat with a 0.1% YoY decrease.

What happened to CAAP's aircraft movements in May 2024?

CAAP's aircraft movements decreased by 10.8% YoY across its operations.