Grupo Aeroportuario del Pacifico Reports in January 2024 a Passenger Traffic Decrease of 0.6% Compared to 2023

Rhea-AI Summary

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) announces a 1.6% decrease in total terminal passengers at its 12 Mexican airports for January 2024 compared to January 2023. While Puerto Vallarta and Guadalajara saw an increase in passenger traffic, Tijuana and Los Cabos experienced a decrease. Montego Bay, however, presented a significant increase in passenger traffic. The company also reported a 3.7% decrease in seats available for January 2024 due to engine revisions, but an increase in load factors.

Insights

Market Research Analyst

The recent report by Grupo Aeroportuario del Pacífico (GAP) detailing a 1.6% decrease in terminal passengers across its 12 Mexican airports in January 2024 compared to the same month in 2023 is a reflection of the dynamic nature of the aviation industry. This dip is particularly noteworthy considering the strategic importance of airports such as Puerto Vallarta and Guadalajara, which, conversely, reported increases in passenger traffic. The variation in passenger numbers can be attributed to a myriad of factors including economic conditions, seasonal travel patterns and airline operational issues such as the mentioned preventive revision to Pratt & Whitney engines affecting seat availability.

Despite the overall decrease, the uptick in international terminal passengers by 5.3% is a positive indicator, particularly for the tourism sector. The 9.6% increase at Montego Bay is a standout, suggesting a growing appeal or improved connectivity to this destination. Investors and stakeholders should note the potential for increased revenue from international passengers, who typically spend more on services like duty-free shopping and dining.

An increase in load factors from 78.8% to 81.4% is also significant, as it indicates better efficiency in seat utilization. While fewer seats were available, the ones that were available were filled at a higher rate, potentially offsetting some of the revenue losses from decreased passenger numbers. This data point is critical for understanding the operational efficiency and financial health of the company.

Financial Analyst

Examining the financial implications of GAP's preliminary traffic figures, the marginal decrease in overall passenger traffic by 0.6% may not immediately signal a drastic impact on revenue. However, the nuanced picture painted by the mixed performance across different airports warrants attention. The decrease in domestic passengers could be a concern, as it indicates a potential softening of the internal market, which is a bread-and-butter revenue stream for airport operators.

Investors should consider the broader economic context, including currency fluctuations and inflation rates, which can influence both domestic and international travel patterns. The introduction of new routes, such as Guadalajara to Atlanta by Aeromexico, could stimulate future growth and diversification of revenue streams. It is essential to monitor how these routes perform in terms of passenger uptake and yield.

Furthermore, the mention of a reduction in available seats due to maintenance on the A320neo and A321neo fleet could point to short-term operational challenges but may also be viewed positively in terms of long-term commitment to safety and reliability. The impact of such maintenance on financials is typically factored into operational costs and the market often anticipates these regular cycles.

Aviation Industry Analyst

From an industry perspective, GAP's report provides valuable insights into the aviation sector's performance, particularly within the Latin American market. The mixed results across GAP's portfolio highlight the localized nature of air travel demand and the importance of route diversification and strategic destination management.

The reported increase in load factors is a testament to the industry's resilience and ability to adapt to changing market conditions by optimizing capacity. However, the reduced seat availability due to engine maintenance on the A320neo and A321neo fleet raises concerns about fleet management and the potential need for diversification or expansion of the fleet to mitigate such risks in the future.

It is also worth noting the significant growth in passenger traffic at smaller airports such as Los Mochis and Manzanillo. Such growth could indicate emerging markets or successful niche strategies that could be replicated in other regions. The aviation industry is highly sensitive to economic, regulatory and environmental factors and operators like GAP must continuously adapt to maintain profitability and growth.

GUADALAJARA, Mexico, Feb. 06, 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 January 2024, compared with January 2023.

For January 2024, the total number of terminal passengers at GAP’s 12 Mexican airports decreased by 1.6%, compared to January 2023. Puerto Vallarta and Guadalajara presented an increase in passenger traffic of 1.9% and 1.0%, respectively, while Tijuana and Los Cabos presented a decrease of 7.1% and 3.8%, respectively, compared to January 2023. On the other hand, Montego Bay presented an increase in passenger traffic of 9.6% compared to January 2023.

	Domestic Terminal Passengers (in thousands):
	Airport	Jan-23	Jan-24	% Change
	Guadalajara	991.1	911.7	(8.0%)
	Tijuana*	713.6	678.8	(4.9%)
	Puerto Vallarta	226.2	201.1	(11.1%)
	Los Cabos	229.8	221.4	(3.7%)
	Montego Bay	0.0	0.0	N/A
	Guanajuato	180.4	174.0	(3.5%)
	Hermosillo	157.4	152.2	(3.3%)
	Kingston	0.0	0.1	136.4%
	Morelia	67.3	56.2	(16.4%)
	Mexicali	123.4	110.8	(10.2%)
	La Paz	77.8	88.5	13.8%
	Aguascalientes	54.4	46.8	(14.0%)
	Los Mochis	32.2	44.0	36.5%
	Manzanillo	9.1	11.9	31.0%
	Total	2,862.6	2,697.4	(5.8%)
	International Terminal Passengers (in thousands):
	Airport	Jan-23	Jan-24	% Change
	Guadalajara	456.8	550.4	20.5%
	Tijuana*	393.4	349.6	(11.1%)
	Puerto Vallarta	460.9	498.8	8.2%
	Los Cabos	451.4	433.6	(3.9%)
	Montego Bay	449.0	491.9	9.6%
	Guanajuato	77.9	89.6	15.0%
	Hermosillo	6.6	9.0	36.1%
	Kingston	146.0	148.3	1.6%
	Morelia	56.8	55.8	(1.7%)
	Mexicali	0.5	0.6	21.4%
	La Paz	1.2	0.9	(20.5%)
	Aguascalientes	22.9	26.4	15.2%
	Los Mochis	0.6	0.8	19.6%
	Manzanillo	9.4	12.9	36.1%
	Total	2,533.4	2,668.6	5.3%
	Total Terminal Passengers (in thousands):
	Airport	Jan-23	Jan-24	% Change
	Guadalajara	1,447.9	1,462.1	1.0%
	Tijuana*	1,107.0	1,028.4	(7.1%)
	Puerto Vallarta	687.1	699.9	1.9%
	Los Cabos	681.2	655.0	(3.8%)
	Montego Bay	449.0	491.9	9.6%
	Guanajuato	258.3	263.6	2.0%
	Hermosillo	164.0	161.2	(1.7%)
	Kingston	146.1	148.4	1.6%
	Morelia	124.1	112.1	(9.7%)
	Mexicali	123.8	111.4	(10.1%)
	La Paz	78.9	89.4	13.3%
	Aguascalientes	77.3	73.2	(5.3%)
	Los Mochis	32.9	44.8	36.2%
	Manzanillo	18.6	24.8	33.6%
	Total	5,396.0	5,366.1	(0.6%)
	*Passengers in Tijuana who use CBX in both directions are classified as international.
	CBX users (in thousands):
	Airport	Jan-23	Jan-24	% Change
	Tijuana	391.0	347.5	(11.1%)

Highlights for the month:

• Seats and load factors: The seats available during January 2024 decreased by 3.7%, compared to January 2023, due to the preventive revision to the Pratt & Whitney engines of the A320neo and A321neo fleet. The load factors for the month went from 78.8% in January 2023 to 81.4% in January 2024.
  
• New routes:
  
  • Guadalajara – Atlanta​: Aeromexico

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 actually 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 is the ticker symbol for Grupo Aeroportuario del Pacífico, S.A.B. de C.V. on the New York Stock Exchange?

The ticker symbol for Grupo Aeroportuario del Pacífico, S.A.B. de C.V. on the New York Stock Exchange is "PAC".

How many airports does Grupo Aeroportuario del Pacífico, S.A.B. de C.V. operate?

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. operates 12 airports throughout Mexico.

What was the percentage change in total terminal passengers for January 2024 compared to January 2023?

The total terminal passengers at Grupo Aeroportuario del Pacífico, S.A.B. de C.V.'s 12 Mexican airports decreased by 1.6% in January 2024 compared to January 2023.

Which airport saw the highest increase in passenger traffic for January 2024?

Montego Bay presented an increase in passenger traffic of 9.6% compared to January 2023.

What was the percentage change in seats available for January 2024 compared to January 2023?

The seats available during January 2024 decreased by 3.7% compared to January 2023 due to engine revisions.

What was the change in load factors from January 2023 to January 2024?

The load factors for the month went from 78.8% in January 2023 to 81.4% in January 2024.