Grupo Aeroportuario del Pacifico Reports in August 2024 a Passenger Traffic Decrease of 7.2% Compared to 2023

Rhea-AI Summary

Grupo Aeroportuario del Pacifico (NYSE: PAC) reported a 7.2% decrease in total passenger traffic for August 2024 compared to August 2023. Key highlights include:

- Guadalajara airport: 3.4% decrease
- Tijuana airport: 8.4% decrease
- Los Cabos airport: 11.1% decrease
- Puerto Vallarta airport: 5.9% decrease
- Montego Bay airport: 9.4% decrease

The company's domestic passenger traffic decreased by 10.8%, while international passenger traffic declined by 1.5%. Seats available during August 2024 decreased by 10.4% compared to the previous year. However, the load factor improved from 81.4% to 84.3% year-over-year.

Positive

• Load factor improved from 81.4% in August 2023 to 84.3% in August 2024
• International passenger traffic showed a smaller decline (1.5%) compared to domestic traffic
• Some airports like La Paz and Los Mochis showed positive growth in passenger traffic

Negative

• Total passenger traffic decreased by 7.2% in August 2024 compared to August 2023
• Domestic passenger traffic declined by 10.8%
• Major airports like Los Cabos, Tijuana, and Guadalajara experienced significant decreases in passenger traffic
• Seats available decreased by 10.4% compared to August 2023

Insights

Financial Analyst

The 7.2% decrease in passenger traffic for Grupo Aeroportuario del Pacifico (GAP) in August 2024 compared to 2023 is a concerning trend. This decline is particularly significant in key airports like Los Cabos (-11.1%), Tijuana (-8.4%) and Puerto Vallarta (-5.9%). The domestic traffic drop of 10.8% outpaces the 1.5% decrease in international traffic, suggesting local economic factors may be at play.

However, it's worth noting that load factors improved from 81.4% to 84.3%, indicating more efficient capacity management. This could help mitigate some financial impact of the traffic decline. The year-to-date decrease of 3.1% in total passengers is less severe than the August figures, implying a potential seasonal effect or recent economic headwinds.

Investors should monitor whether this is a temporary blip or the start of a prolonged downturn. The company's diversification across 12 Mexican airports and two Jamaican airports provides some buffer, but the widespread nature of the decline across major hubs is a red flag for near-term revenue prospects.

Market Research Analyst

The passenger traffic decline in GAP's airports could be indicative of broader economic challenges in Mexico and the tourism sector. The significant drop in domestic travel (-10.8%) suggests potential issues with disposable income or consumer confidence within Mexico. This contrasts with the relatively stable international traffic (-1.5%), which might indicate that foreign tourism remains resilient.

Notably, some airports like La Paz and Los Mochis saw growth of 4.5% and 11.6% respectively, bucking the overall trend. This suggests regional variations in economic performance or shifts in travel patterns. The substantial decrease in Mexicali (-43.9%) is particularly alarming and warrants further investigation into local factors.

The improved load factor amid decreased available seats shows airlines are adapting to lower demand, which could help maintain profitability in the short term. However, if this trend continues, it may lead to reduced flight options and potentially higher fares, which could further suppress demand in a negative feedback loop.

Tourism Industry Expert

The decline in passenger traffic at major tourist destinations like Los Cabos (-11.1%) and Puerto Vallarta (-5.9%) is concerning for Mexico's tourism industry. This could be due to various factors such as increased competition from other destinations, safety concerns, or economic pressures on travelers.

However, the year-to-date increase of 1.0% for Puerto Vallarta suggests the August decline might be a short-term anomaly rather than a long-term trend. The mixed performance across different airports indicates that some destinations are faring better than others, which could lead to a shift in Mexico's tourism landscape.

The slight growth in Kingston's traffic (+1.8%) is a positive sign for GAP's Jamaican operations, potentially offsetting some losses from Mexican airports. The tourism industry should closely monitor these trends and adapt marketing strategies to target resilient segments and emerging growth areas to mitigate the impact of declining traffic in major hubs.

GUADALAJARA, Mexico, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) announces preliminary terminal passenger traffic figures for August 2024, compared with August 2023.

For August 2024, the total number of terminal passengers at GAP’s 12 Mexican airports decreased by 7.4%, compared to August 2023. Los Cabos, Tijuana, Puerto Vallarta and Guadalajara airports presented a decrease in passenger traffic of 11.1%, 8.4%, 5.9% and 3.4%, respectively, compared to August 2023. On the other hand, Montego Bay presented a decrease in passenger traffic of 9.4%.

Domestic Terminal Passengers (in thousands):

Airport	Aug-23	Aug-24	% Change	Jan- Aug 23	Jan- Aug 23	% Change
Guadalajara	1,148.8	1,050.5	(8.6%)	8,418.6	7,802.1	(7.3%)
Tijuana*	882.0	780.2	(11.5%)	6,030.0	5,627.4	(6.7%)
Los Cabos	303.7	277.0	(8.8%)	2,017.1	1,898.8	(5.9%)
Puerto Vallarta	284.0	278.4	(2.0%)	1,984.1	1,902.6	(4.1%)
Montego Bay	0.0	0.0	N/A	0.0	0.0	(100.0%)
Guanajuato	233.5	187.6	(19.7%)	1,526.7	1,371.2	(10.2%)
Hermosillo	189.5	176.8	(6.7%)	1,375.4	1,349.0	(1.9%)
Kingston	0.5	0.6	21.0%	1.2	2.2	73.9%
Morelia	77.1	55.3	(28.3%)	547.3	413.3	(24.5%)
La Paz	108.2	113.1	4.5%	735.1	789.1	7.3%
Mexicali	153.5	85.8	(44.1%)	1,040.5	695.5	(33.2%)
Aguascalientes	59.4	53.6	(9.8%)	424.8	415.5	(2.2%)
Los Mochis	44.0	49.1	11.6%	301.6	367.6	21.9%
Manzanillo	9.2	9.8	6.9%	71.9	86.5	20.3%
Total	3,493.5	3,117.7	(10.8%)	24,474.3	22,720.7	(7.2%)

International Terminal Passengers (in thousands):

Airport	Aug-23	Aug-24	% Change	Jan- Aug 23	Jan- Aug 23	% Change
Guadalajara	457.7	501.7	9.6%	3,472.3	3,922.2	13.0%
Tijuana*	353.1	350.8	(0.7%)	2,963.1	2,713.0	(8.4%)
Los Cabos	325.9	282.8	(13.2%)	3,357.1	3,283.9	(2.2%)
Puerto Vallarta	195.3	172.6	(11.6%)	2,724.7	2,855.5	4.8%
Montego Bay	468.6	424.6	(9.4%)	3,639.1	3,610.3	(0.8%)
Guanajuato	75.4	94.8	25.7%	578.9	692.3	19.6%
Hermosillo	5.8	6.1	5.9%	49.0	56.7	15.6%
Kingston	195.6	198.9	1.7%	1,206.8	1,187.2	(1.6%)
Morelia	51.4	58.6	14.0%	401.2	435.2	8.5%
La Paz	0.8	0.9	10.2%	9.6	7.9	(17.4%)
Mexicali	0.6	0.6	16.4%	4.8	5.1	6.7%
Aguascalientes	28.0	30.8	10.1%	190.3	214.1	12.5%
Los Mochis	0.6	0.7	10.5%	4.9	5.5	13.8%
Manzanillo	2.0	3.7	82.7%	47.1	63.3	34.4%
Total	2,160.8	2,127.7	(1.5%)	18,648.7	19,052.1	2.2%

Total Terminal Passengers (in thousands):

Airport	Aug-23	Aug-24	% Change	Jan- Aug 23	Jan- Aug 23	% Change
Guadalajara	1,606.5	1,552.2	(3.4%)	11,890.9	11,724.3	(1.4%)
Tijuana*	1,235.1	1,131.0	(8.4%)	8,993.0	8,340.4	(7.3%)
Los Cabos	629.6	559.8	(11.1%)	5,374.2	5,182.7	(3.6%)
Puerto Vallarta	479.3	451.0	(5.9%)	4,708.8	4,758.1	1.0%
Montego Bay	468.6	424.6	(9.4%)	3,639.1	3,610.3	(0.8%)
Guanajuato	308.9	282.4	(8.6%)	2,105.6	2,063.5	(2.0%)
Hermosillo	195.3	182.9	(6.3%)	1,424.4	1,405.7	(1.3%)
Kingston	196.1	199.5	1.8%	1,208.1	1,189.3	(1.6%)
Morelia	128.5	113.9	(11.4%)	948.4	848.5	(10.5%)
La Paz	109.0	114.0	4.5%	744.7	797.0	7.0%
Mexicali	154.1	86.4	(43.9%)	1,045.3	700.6	(33.0%)
Aguascalientes	87.4	84.4	(3.4%)	615.1	629.6	2.4%
Los Mochis	44.6	49.7	11.6%	306.5	373.1	21.7%
Manzanillo	11.2	13.5	20.7%	119.0	149.8	25.9%
Total	5,654.3	5,245.4	(7.2%)	43,123.1	41,772.8	(3.1%)
*Passengers in Tijuana who use CBX in both directions are classified as international.

CBX users (in thousands):

Airport	Aug-23	Aug-24	% Change	Jan- Aug 23	Jan- Aug 23	% Change
Tijuana	350.0	344.1	(1.7%)	2,938.1	2,672.9	(9.0%)

Highlights for the month:

• Seats and load factors: The seats available during August 2024 decreased by 10.4%, compared to August 2023. The load factors for the month went from 81.4% in August 2023 to 84.3% in August 2024.
  

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 100% of Desarrollo de Concessioner Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the Norman Manley International Airport operation in Kingston, Jamaica, and took control of the operation in October 2019.

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

FAQ

What was the overall passenger traffic change for Grupo Aeroportuario del Pacifico (PAC) in August 2024?

Grupo Aeroportuario del Pacifico (PAC) reported a 7.2% decrease in total passenger traffic for August 2024 compared to August 2023.

How did domestic and international passenger traffic perform for PAC in August 2024?

In August 2024, PAC's domestic passenger traffic decreased by 10.8%, while international passenger traffic declined by 1.5% compared to August 2023.

What was the change in load factor for PAC airports in August 2024?

The load factor for PAC airports improved from 81.4% in August 2023 to 84.3% in August 2024.

Which PAC airports experienced the largest decreases in passenger traffic in August 2024?

Los Cabos airport experienced the largest decrease at 11.1%, followed by Tijuana at 8.4%, and Puerto Vallarta at 5.9% compared to August 2023.