Release Date: July 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- International passenger traffic increased by 12% compared to the second quarter of last year, driven by strong performance at Monterrey Airport.
- Non-aeronautical revenues grew by 13.8%, highlighting successful strategic projects and diversification efforts.
- Commercial revenues increased by 12%, with significant contributions from VIP lounges, parking, and restaurants.
- OMA Cargo saw a 35% increase in revenues, driven by new operations with Lufthansa Cargo and expansion plans in Monterrey.
- Hotel services grew by 16%, with high occupancy rates and increased average room rates at both NH and Hilton Garden Inn hotels.
Negative Points
- Overall passenger traffic decreased by 2.4% compared to the second quarter of last year, with domestic passenger traffic down by 4.3%.
- Aeronautical revenue decreased by 2.5%, primarily due to lower domestic passenger traffic.
- Construction revenues fell by 22% due to slower MDP investment execution.
- Cost of services and G&A expenses increased by 16.5%, driven by expansion in operational areas and higher unit costs.
- Concession tax increased by 71% due to a rate hike from 5% to 9%, impacting financial results.
Q & A Highlights
Q: Can you provide your expectations for traffic for the second half of the year in Mexico?
A: We maintain our previous projection, expecting a low-single digit decrease in traffic due to the Pratt & Whitney issue. - Ricardo Duenas Espriu, CEO
Q: What is the potential for non-aeronautical revenue per passenger in the medium to long term?
A: We expect commercial revenue per passenger to remain stable and increase with inflation. Diversification activities like cargo and hotel services are not directly correlated to passenger growth. - Ruffo Perez Pliego Del Castillo, CFO
Q: How relevant do you think Toluca can be as an alternative to Felipe Ángeles and AIFA?
A: The government aims for a metropolitan airport system including Mexico City, Toluca, and Santa Lucia. We believe excess traffic will mostly go to Santa Lucia. - Ricardo Duenas Espriu, CEO
Q: What caused the traffic decrease on the Monterrey-Cancun route?
A: The decrease was due to capacity cuts by carriers affected by the Pratt & Whitney issue. We expect a quick recovery as the issue resolves. - Ruffo Perez Pliego Del Castillo, CFO
Q: Are you considering international expansion projects?
A: We are always looking for international expansion opportunities, but currently, we are not involved in any international tender processes. - Ricardo Duenas Espriu, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
