Grupo Aeroportuario Del Pacifico ((PAC)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Grupo Aeroportuario Del Pacifico (GAP) painted a picture of robust growth tempered by some operational challenges. The company showcased strong revenue growth and successful expansion of new routes, reflecting a positive momentum. However, concerns were raised regarding a decline in international passenger traffic and increased operational costs, which could pose challenges moving forward.
Revenue Growth
Total revenues for GAP increased by an impressive 17.4% compared to the third quarter of 2024. This growth was driven by both aeronautical and non-aeronautical business performance, highlighting the company’s ability to capitalize on its diverse revenue streams.
Aeronautical Revenue Increase
Aeronautical revenue saw a significant increase of 18.3%, a result of new maximum tariffs and adjustments made in September. This indicates a strong demand for GAP’s aeronautical services and effective pricing strategies.
Non-Aeronautical Revenue Performance
Non-aeronautical revenues also performed well, increasing by 15.6%. Notably, GAP-operated businesses experienced a 30.1% rise, largely due to the consolidation of cargo and bonded warehouse operations.
New Routes and Connectivity
GAP announced the addition of eight new international routes to Canada and a new connection from Los Cabos to Panama. These developments are expected to enhance passenger traffic and strengthen GAP’s connectivity.
Strong Liquidity Position
The company reported a strong liquidity position, with MXN 11.7 billion in cash and cash equivalents as of September 30, 2025. This positions GAP well to navigate future uncertainties and invest in growth opportunities.
International Passenger Traffic Decline
Despite overall growth, international passenger traffic declined due to U.S. immigration-related challenges and ongoing Pratt & Whitney engine issues affecting Volaris and Viva Aerobus. This remains a concern for GAP’s international operations.
Cost of Services Increase
The cost of services increased by 14.1%, partly due to new regulations requiring GAP to operate jet bridges and airport buses directly. This increase in operational costs could impact profitability if not managed carefully.
EBITDA Margin Decline
GAP’s EBITDA margin decreased to 64.3%, impacted by a change in concession fees for Mexican airports from 5% to 9%. This highlights the need for GAP to optimize its cost structure to maintain profitability.
Forward-Looking Guidance
Looking ahead, GAP is optimistic about its future prospects. The company plans to continue optimizing its commercial offerings and expand its network, with new routes expected to boost future traffic. GAP is also considering strategic expansion opportunities, such as the potential acquisition of Motiva Airports. Despite challenges in international passenger traffic, domestic demand shows sustained recovery, providing a solid foundation for future growth.
In summary, Grupo Aeroportuario Del Pacifico’s earnings call highlighted a strong performance with notable revenue growth and strategic expansions. While challenges such as increased operational costs and international traffic declines persist, the company’s robust liquidity position and forward-looking strategies position it well for future success.