The following is a summary of the Grupo Aeroportuario Del Pacífico, S.A.B. De C.V. (PAC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Total passenger count for Q1 2024 remained flat at nearly 16 million, equating to a total revenue which also remained flat compared to Q1 2023.

• Aeronautical revenues decreased by 1.3% due to passenger charge discounts at nine Mexican airports.

• Non-aeronautical revenue saw a substantial increase of 15.2% to hit MXN1.7 billion, despite a 10.3% increase in expenses.

• EBITDA reached MXN4.6 billion, leading to an EBITDA margin of 69.8% with total debt rounding to MXN4.5 billion.

• A 2% increase in total revenues per passenger was reported, thanks to a 15% growth in commercial revenue, even though aeronautical revenues decreased by approximately 1.5%.

Business Progress:

• The company is projecting a slight deceleration in passenger traffic due to an ongoing Pratt & Whitney engines' inspection set to continue throughout 2024.

• Despite a domestic market slowdown, the international market has seen growth in double digits. Expansion beyond U.S. and Canada is planned with at least 11 new routes to Europe and Asia in 2024.

• Negotiations regarding the master development program (MDP) are ongoing. Concurrently, the company is making progress in sustainability efforts like issuing labeled debt bonds for carbon emissions reduction.

• Long-term prospects remain optimistic with expected strong recovery of passenger traffic by 2025. Revenue growth is also visible in sectors like food and beverage, and retail due to renegotiated contracts.

• Non-aero revenues are expected to increase by 12-14% in 2024. Operational revenue from the new Guadalajara hotel is expected to contribute from Q2, with new office building tenants contributing from Q3 of 2024.

More details: Pacific Airport IR

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