Grupo Aeroportuario del Pacifico Announces Amendments to the Concession Agreement of Jamaican Airports
Grupo Aeroportuario del Pacífico (NYSE: PAC) has announced significant amendments to its Concession Agreement with the Airports Authority of Jamaica for the Montego Bay and Kingston Airports. These changes come as a response to the impact of the COVID-19 pandemic on airport operations.
Key amendments include:
- Montego Bay Airport: Concession Period extended by one year, now expiring in March 2034
- Kingston Airport: Concession Fee reduced from 62.01% to 53.22% of Gross Revenues, effective September 11, 2023
The reduction in Kingston's Concession Fee will be applied retroactively, with excess payments reimbursed once the runway extension project begins. This change will be reflected in GAP's 2024 Income Statement.
Il Grupo Aeroportuario del Pacífico (NYSE: PAC) ha annunciato importanti modifiche al suo Accordo di Concessione con l'Autorità Aeroportuale della Giamaica per gli Aeroporti di Montego Bay e Kingston. Questi cambiamenti sono una risposta all'impatto della pandemia di COVID-19 sulle operazioni aeroportuali.
Le modifiche principali includono:
- Aeroporto di Montego Bay: Periodo di concessione esteso di un anno, con scadenza ora a marzo 2034
- Aeroporto di Kingston: Riduzione della Tariffa di Concessione dal 62,01% al 53,22% delle Entrate Lorde, efficace dal 11 settembre 2023
La riduzione della Tariffa di Concessione di Kingston sarà applicata retroattivamente, con rimborsi per i pagamenti eccessivi non appena inizierà il progetto di estensione della pista. Questo cambiamento sarà riflesso nel Bilancio 2024 di GAP.
Grupo Aeroportuario del Pacífico (NYSE: PAC) ha anunciado modificaciones significativas a su Contrato de Concesión con la Autoridad Aeroportuaria de Jamaica para los Aeropuertos de Montego Bay y Kingston. Estos cambios son una respuesta al impacto de la pandemia de COVID-19 en las operaciones aeroportuarias.
Las principales modificaciones incluyen:
- Aeropuerto de Montego Bay: Período de concesión extendido por un año, ahora expirando en marzo de 2034
- Aeropuerto de Kingston: Reducción de la Tasa de Concesión del 62,01% al 53,22% de los Ingresos Brutos, efectivo a partir del 11 de septiembre de 2023
La reducción de la Tasa de Concesión en Kingston se aplicará de manera retroactiva, con reembolsos por pagos excesivos una vez que comience el proyecto de extensión de la pista. Este cambio se reflejará en el Estado de Resultados 2024 de GAP.
태평양 공항 그룹(뉴욕증권거래소: PAC)은 자메이카 공항 당국과의 몬테고 베이 및 킹스턴 공항에 대한 concesion 계약에 중요한 수정 사항을 발표했습니다. 이러한 변화는 COVID-19 팬데믹이 공항 운영에 미친 영향을 반영한 것입니다.
주요 수정 사항은 다음과 같습니다:
- 몬테고 베이 공항: concesion 기간이 1년 연장되어 2034년 3월에 만료됩니다.
- 킹스턴 공항: concesion 요금이 62.01%에서 53.22%의 총 수익으로 줄어들며, 이는 2023년 9월 11일부터 적용됩니다.
킹스턴의 concesion 요금 인하는 소급 적용되며, 활주로 확장 프로젝트가 시작되면 초과 지급된 금액이 환불됩니다. 이 변화는 GAP의 2024 년 손익계산서에 반영될 것입니다.
Le Grupo Aeroportuario del Pacífico (NYSE: PAC) a annoncé des modifications significatives de son Accord de Concession avec l'Autorité Aéroportuaire de Jamaïque pour les Aéroports de Montego Bay et de Kingston. Ces changements font suite à l'impact de la pandémie de COVID-19 sur les opérations aéroportuaires.
Les principales modifications comprennent :
- Aéroport de Montego Bay : Période de concession prolongée d'un an, expirant désormais en mars 2034
- Aéroport de Kingston : Réduction des frais de concession de 62,01 % à 53,22 % des Revenus Bruts, en vigueur à partir du 11 septembre 2023
La réduction des frais de concession à Kingston sera appliquée rétroactivement, avec remboursement des paiements excessifs dès le début du projet d'extension de la piste. Ce changement sera reflété dans l'État de revenus 2024 de GAP.
Die Grupo Aeroportuario del Pacífico (NYSE: PAC) hat bedeutende Änderungen an ihrem Konzessionsvertrag mit der Flughafenbehörde Jamaikas für die Flughäfen Montego Bay und Kingston angekündigt. Diese Änderungen sind eine Reaktion auf die Auswirkungen der COVID-19-Pandemie auf den Flughafenbetrieb.
Wichtige Änderungen umfassen:
- Montego Bay Flughafen: Konzessionszeitraum um ein Jahr verlängert, jetzt auslaufend im März 2034
- Kingston Flughafen: Konzessionsgebühr von 62,01% auf 53,22% des Bruttoeinkommens reduziert, wirksam ab dem 11. September 2023
Die Reduzierung der Konzessionsgebühr in Kingston wird rückwirkend angewendet, und überschüssige Zahlungen werden erstattet, sobald das Projekt zur Erweiterung der Landebahn beginnt. Diese Änderung wird in der Einkommensaufstellung von GAP für 2024 reflektiert.
- Extension of Montego Bay Airport concession period by one year
- Reduction of Kingston Airport concession fee from 62.01% to 53.22% of Gross Revenues
- Retroactive application of fee reduction, potentially improving 2024 financial results
- None.
The amendments to GAP's concession agreements for Jamaican airports are financially significant. For Montego Bay, the one-year extension to 2034 provides additional revenue potential. More impactfully, the
The retroactive application of the fee reduction to September 2023 will result in a one-time earnings boost in 2024 when the reimbursement is recognized. This could significantly inflate GAP's 2024 earnings, potentially misleading investors who don't account for this non-recurring item.
Long-term, the reduced fees will enhance the Kingston airport's contribution to GAP's bottom line. Given that GAP operates 14 airports across Mexico and Jamaica, the impact on overall earnings will be notable but not transformative. Investors should view this as a positive development that enhances GAP's Caribbean operations and demonstrates its ability to negotiate favorable terms with regulatory bodies.
These amendments reflect the broader industry trend of airports and governments renegotiating concession agreements post-COVID. The pandemic's severe impact on air travel forced many airports to seek financial relief and more sustainable operating models.
For GAP, these changes improve its competitive position in the Caribbean market. The extended concession in Montego Bay and reduced fees in Kingston enhance GAP's ability to invest in these assets and potentially attract more airlines and routes. This could lead to increased passenger traffic and higher non-aeronautical revenues, which typically have higher margins.
Investors should note that while these amendments are positive for GAP, they also highlight the ongoing challenges in the aviation sector. The need for these adjustments four years after the pandemic's onset underscores the industry's slow recovery and the persistent pressure on airport operators. It's important to monitor whether similar renegotiations occur at GAP's Mexican airports, which could have a more substantial impact on the company's overall financial health.
GUADALAJARA, Mexico, July 26, 2024 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) announces that it has signed amendments to the Concession Agreement with the Airports Authority of Jamaica (“AAJ”) associated with the Montego Bay and Kingston Airports, derived from the effects suffered by the Concessionaires during the COVID-19 pandemic. The main amendments were the following:
Montego Bay Airport: The Concession Period will expire thirty-one (31) years after the commencement date, in March 2034. This represents one additional year to the original Concession Period.
Kingston Airport: Concession Fee changes from
Company Description
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired
This press release may contain forward-looking statements. These statements are statements that are not historical facts and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations, and the factors or trends affecting financial condition, liquidity, or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends, or results will occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and Article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party responsible for collecting these complaints, is 800 04 ETICA (38422) or WhatsApp +52 55 6538 5504. The website is www.lineadedenunciagap.com or by email at denuncia@lineadedenunciagap.com. GAP’s Audit Committee will be notified of all complaints for immediate investigation.
Alejandra Soto, Investor Relations and Social Responsibility Officer | asoto@aeropuertosgap.com.mx |
Gisela Murillo, Investor Relations | gmurillo@aeropuertosgap.com.mx/+52 33 3880 1100 ext. 20294 |
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FAQ
What changes were made to GAP's concession agreement for Jamaican airports?
How will the concession agreement changes affect GAP's (PAC) financial performance?
When will GAP (PAC) receive reimbursement for excess concession fee payments at Kingston Airport?