Corporación América Airports S.A. Reports November 2023 Passenger Traffic

Rhea-AI Summary

Corporación América Airports S.A. (NYSE: CAAP) reported a 14.5% YoY increase in passenger traffic in November 2023, reaching pre-pandemic levels. Total passenger traffic, cargo volume, and aircraft movements all showed significant growth compared to the previous year.

Positive

• Passenger traffic increased by 14.5% YoY, reaching pre-pandemic levels, with all countries except Brazil and Italy above November 2019 levels.
• International passenger traffic surpassed pre-pandemic levels of November 2019 by 7.5%, while domestic traffic stood at 98.2% of November 2019 levels.
• Cargo volume increased by 10.7% YoY and reached 82.1% of November 2019 levels, or 83.1% when adjusting for the discontinuation of operations in Peru.
• Aircraft movements remained largely stable YoY, reaching 93.5% of November 2019 levels, or 97.0% when adjusting for the discontinuation of operations in Peru.

Negative

• None.

Insights

Financial Analyst

The reported 14.5% year-on-year increase in passenger traffic for Corporación América Airports S.A. signifies a robust recovery trend, aligning with pre-pandemic levels. This is a positive signal for investors, as traffic volume is a direct indicator of revenue potential for airport operators. The growth in both domestic and international passenger numbers, particularly the 22.7% increase in Argentina, suggests a rebound in consumer confidence and travel demand post-COVID-19.

However, the mixed performance with Brazil and Italy not reaching November 2019 levels indicates regional disparities, potentially influenced by local economic conditions and labor strikes. The underperformance in cargo volume, at 17.9% below November 2019 levels, could reflect broader economic headwinds or shifts in trade patterns, which merit monitoring for future revenue implications.

Long-term, sustained growth in passenger and cargo traffic is crucial for CAAP's financial health. Investors should consider the company's ability to capitalize on the recovery trend and manage regional challenges. The data suggests a positive outlook, but with caution advised for markets with slower recovery.

Industry Analyst

The aviation industry is witnessing an uneven recovery from the pandemic, as evidenced by CAAP's performance. The resurgence in passenger numbers, especially in Argentina, Ecuador and Armenia, is commendable and may indicate strategic route and frequency optimizations. However, the underperformance in Brazil and Italy could be symptomatic of broader challenges, such as financial constraints in local airlines or labor disputes.

For stakeholders, the key takeaway is the correlation between passenger traffic recovery and economic stability. The disparity in recovery rates across different countries can inform investment strategies and risk assessment. The data points to a potential competitive advantage for CAAP in markets where it outperforms, but also flags areas requiring strategic attention.

Economist

CAAP's traffic report serves as an economic barometer, reflecting not just the company's performance but also the economic vitality of the regions it operates in. The return to pre-pandemic levels is a microcosm of broader economic recovery, indicating increased consumer spending and mobility. The 25.1% year-to-date increase in overall passenger traffic implies a strong rebound in travel demand, which is a positive sign for the service and tourism sectors.

Conversely, the decline in cargo volume compared to 2019 levels could signal a softening in trade activity, which might be a concern for economies reliant on goods movement. The data provides a nuanced picture of post-pandemic recovery, suggesting that while consumer confidence in travel returns, the trade sector may still be facing headwinds.

Total passenger traffic up 14.5% YoY, reaching pre-pandemic levels

All countries except Brazil and Italy above November 2019 levels

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 14.5% year-on-year (YoY) increase in passenger traffic in November 2023, in line with November 2019 levels.

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

Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2023 vs. 2022)
Statistics		Nov'23		Nov'22		% Var.			YTD’23		YTD'22		% Var.
Domestic Passengers (thousands)		3,927		3,375		16.3	%		41,826		34,310		21.9	%
International Passengers (thousands)		2,209		1,861		18.7	%		26,068		19,358		34.7	%
Transit Passengers (thousands)		626		672		-6.8	%		6,506		5,793		12.3	%
Total Passengers (thousands)		6,761		5,907		14.5	%		74,400		59,461		25.1	%
Cargo Volume (thousand tons)		32.5		29.3		10.7	%		334.1		310.6		7.6	%
Total Aircraft Movements (thousands)		64.1		64.0		0.1	%		778.0		669.4		16.2	%
Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2023 vs. 2019)
Statistics		Nov'23		Nov'19		% Var.			YTD’23		YTD'19(1)(2)		% Var.
Domestic Passengers (thousands)		3,927		3,998		-1.8	%		41,826		43,496		-3.8	%
International Passengers (thousands)		2,209		2,055		7.5	%		26,068		26,023		0.2	%
Transit Passengers (thousands)		626		709		-11.7	%		6,506		7,624		-14.7	%
Total Passengers (thousands)		6,761		6,762		0.0	%		74,400		77,143		-3.6	%
Cargo Volume (thousand tons)		32.5		39.5		-17.9	%		334.1		388.4		-14.0	%
Total Aircraft Movements (thousands)		64.1		68.5		-6.5	%		778.0		786.4		-1.1	%

(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 14.5% compared to the same month of 2022, supported by the ongoing recovery in travel demand after the Covid-19 pandemic and the gradual resumption of routes and frequencies across all countries of operations. Overall passenger traffic reached November 2019 levels, with all countries except Brazil and Italy above pre-pandemic. International passenger traffic surpassed pre-pandemic levels of November 2019 by 7.5%, while domestic traffic stood at 98.2% of November 2019 levels.

In Argentina, total passenger traffic continued to recover in November, increasing by 22.7% year-over-year (YoY) and surpassing pre-pandemic volumes by 12.6%. Domestic traffic was 17.9% higher than the levels in November 2019, while International traffic continued to recover and surpassed pre-pandemic levels for the first time, by 1.8%.

In Italy, passenger traffic grew by 12.2% compared to the same month in 2022, reaching 92.7% of November 2019 levels, down from the 106.4% recorded in October. International passenger traffic, which accounted for almost 80% of the total traffic, was 1.3% below November 2019 levels, while domestic passenger traffic was 22.9% below pre-pandemic levels. Although total traffic is still below pre-pandemic levels, Florence airport exceeded November 2019 traffic volumes. Traffic in Italy during November was affected by a strike carried out by unionized airport workers on November 24^th.

In Brazil, total passenger traffic decreased by 1.2% YoY, reaching 85.2% of November 2019 levels, slightly up from the 84.5% recorded in October. Domestic traffic, which accounted for over 60% of the total traffic, reached 85.3% of pre-pandemic levels, while transit passengers stood at 85.4% of November 2019 levels, an increase from the 79.9% recorded in October. Traffic in Brazil remained impacted by financial and aircraft constraints in some local airlines.

In Uruguay, total passenger traffic, which is largely international, continued to recover and increased 18.8% YoY, surpassing pre-pandemic levels for the second consecutive month, at 104.4% of November 2019 levels.

In Ecuador, passenger traffic increased 8.1% YoY and surpassed pre-pandemic volumes by 4.7%. Both domestic and international passenger traffic exceeded pre-pandemic levels by 2.0% and 7.3%, respectively.

In Armenia, passenger traffic continued its solid recovery trend, increasing by 10.9% YoY and surpassing the pre-pandemic levels of November 2019 by 56.5%.

Cargo Volume and Aircraft Movements

Cargo volume increased 10.7% YoY and reached 82.1% of November 2019 levels, or 83.1% when adjusting for the discontinuation of operations in Peru. Cargo volumes in Armenia, Ecuador and Italy were above pre-pandemic levels, whereas Uruguay stood at 97.5%, Brazil at 77.1%, and Argentina at 75.6%. Around 70% of cargo volume originated in Argentina, Ecuador and Uruguay.

Aircraft movements remained largely stable YoY, reaching 93.5% of November 2019 levels, or 97.0% when adjusting for the discontinuation of operations in Peru. Aircraft movements were above pre-pandemic levels in Armenia and Uruguay, while it stood at 97.4% in Argentina, 95.7% in Italy, 91.6% in Brazil, and 89.8% in Ecuador.

Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2023 vs. 2022)
		Nov'23		Nov'22		% Var.			YTD'23		YTD'22		% Var.
Passenger Traffic (thousands)
Argentina(1)		3,923		3,197		22.7	%		39,850		30,446		30.9	%
Italy		480		428		12.2	%		7,671		6,255		22.6	%
Brazil		1,429		1,446		-1.2	%		15,614		14,264		9.5	%
Uruguay		169		142		18.8	%		1,766		1,287		37.2	%
Ecuador		391		361		8.1	%		4,458		3,869		15.2	%
Armenia		369		333		10.9	%		5,041		3,340		50.9	%
TOTAL		6,761		5,907		14.5	%		74,400		59,461		25.1	%
(1) See Footnote 1 in previous table. (2) See Footnote 2 in previous table.
Cargo Volume (tons)
Argentina		16,905		15,032		12.5	%		172,970		165,470		4.5	%
Italy		1,231		1,307		-5.8	%		11,880		13,655		-13.0	%
Brazil		5,826		4,860		19.9	%		60,193		51,371		17.2	%
Uruguay(2)		2,792		2,783		0.3	%		28,459		29,553		-3.7	%
Ecuador		3,139		2,440		28.7	%		30,245		30,618		-1.2	%
Armenia		2,558		2,893		-11.6	%		30,398		19,944		52.4	%
TOTAL		32,451		29,315		10.7	%		334,145		310,611		7.6	%
Aircraft Movements
Argentina		34,788		35,020		-0.7	%		418,382		347,424		20.4	%
Italy		4,887		4,348		12.4	%		73,133		64,535		13.3	%
Brazil		12,732		12,823		-0.7	%		145,151		130,903		10.9	%
Uruguay		2,594		2,439		6.4	%		28,374		24,444		16.1	%
Ecuador		6,165		6,291		-2.0	%		71,983		70,300		2.4	%
Armenia		2,905		3,056		-4.9	%		40,971		31,811		28.8	%
TOTAL		64,071		63,977		0.1	%		777,994		669,417		16.2	%

Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2023 vs. 2019)
		Nov'23		Nov'19		% Var.			YTD'23		YTD'19		% Var.
Passenger Traffic (thousands)
Argentina(1)		3,923		3,485		12.6	%		39,850		39,791		0.1	%
Italy		480		518		-7.3	%		7,671		7,722		-0.7	%
Brazil		1,429		1,676		-14.8	%		15,614		17,298		-9.7	%
Uruguay		169		162		4.4	%		1,766		1,993		-11.4	%
Ecuador		391		373		4.7	%		4,458		4,117		8.3	%
Armenia		369		236		56.5	%		5,041		2,958		70.4	%
Peru				312		-			-		3,263		-
TOTAL		6,761		6,762		0.0	%		74,400		77,143		-3.6	%
(1) See Footnote 1 in previous table. (2) See Footnote 2 in previous table.
Cargo Volume (tons)
Argentina		16,905		22,370		-24.4	%		172,970		208,958		-17.2	%
Italy		1,231		1,212		1.6	%		11,880		12,035		-1.3	%
Brazil		5,826		7,559		-22.9	%		60,193		83,061		-27.5	%
Uruguay(2)		2,792		2,865		-2.5	%		28,459		26,550		7.2	%
Ecuador		3,139		2,896		8.4	%		30,245		34,963		-13.5	%
Armenia		2,558		2,168		18.0	%		30,398		18,159		67.4	%
Peru		-		438		-			-		4,655		-
TOTAL		32,451		39,508		-17.9	%		334,145		388,381		-14.0	%
Aircraft Movements
Argentina		34,788		35,726		-2.6	%		418,382		410,372		2.0	%
Italy		4,887		5,107		-4.3	%		73,133		73,936		-1.1	%
Brazil		12,732		13,898		-8.4	%		145,151		147,234		-1.4	%
Uruguay		2,594		2,318		11.9	%		28,374		26,526		7.0	%
Ecuador		6,165		6,866		-10.2	%		71,983		75,273		-4.4	%
Armenia		2,905		2,164		34.2	%		40,971		25,186		62.7	%
Peru		-		2,450		-			-		27,901		-
TOTAL		64,071		68,529		-6.5	%		777,994		786,428		-1.1	%

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 2022, Corporación América Airports served 65.6 million passengers, 83.7% above the 35.7 million passengers served in 2021 and 22.1% 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/20231219879709/en/

Investor Relations Contact

Patricio Iñaki Esnaola

Email: patricio.esnaola@caairports.com

Phone: +5411 4899-671

Source: Corporación América Airports

FAQ

What is the passenger traffic increase reported by Corporación América Airports S.A. (NYSE: CAAP) in November 2023?

The passenger traffic increased by 14.5% YoY, reaching pre-pandemic levels.

How did the cargo volume change for Corporación América Airports S.A. (NYSE: CAAP) in November 2023?

The cargo volume increased by 10.7% YoY and reached 82.1% of November 2019 levels.

What was the percentage of aircraft movements for Corporación América Airports S.A. (NYSE: CAAP) in November 2023?

Aircraft movements remained largely stable YoY, reaching 93.5% of November 2019 levels.

Which countries showed significant growth in passenger traffic for Corporación América Airports S.A. (NYSE: CAAP) in November 2023?

All countries except Brazil and Italy were above November 2019 levels.

What was the percentage of international passenger traffic increase for Corporación América Airports S.A. (NYSE: CAAP) in November 2023?

International passenger traffic surpassed pre-pandemic levels of November 2019 by 7.5%.