Enrique Sojo

Enrique Sojo requested further details on commercial areas coming online in the next few years and GAP's longer-term vision for non-aeronautical revenue per passenger.

Answer

Raúl Revuelta, CEO of GAP, explained that terminal buildings in Mexico are projected to increase by 55% in square meters by 2029, creating significant opportunities for commercial expansion. Key airports for this growth include Guadalajara (Terminal 2, early 2029), Puerto Vallarta (new terminal, Q1 2027), Tijuana (expansion, 2028), and Los Cabos (Terminal 2 expansion, 2027), all contributing to increased commercial spaces.

Enrique Sojo requested further details on the commercial areas slated to come online in the next few years and the company's longer-term vision for non-aeronautical revenue per passenger.

Answer

CEO Raúl Revuelta outlined plans for a 55% increase in terminal building square meters across GAP's Mexican airports by 2029. He highlighted major expansion opportunities in Guadalajara (Terminal 2 by 2029), Puerto Vallarta (new terminal by Q1 2027), Tijuana (expansion by 2028), and Los Cabos (Terminal 2 expansion by 2027), which will significantly expand commercial spaces and drive non-aeronautical revenue growth.

Enrique Sojo from Fundamenta Investments questioned the outlook for international traffic in Mexico for the second half of the year, given the declines in the first half. He also asked whether to expect a strong rebound or a gradual recovery in domestic passenger numbers.

Answer

CEO Adolfo Castro Rivas noted that 38% of the Q2 international decline was due to Tulum, with the remainder from broader market weakness. The future depends on economic conditions and migration policies. For domestic traffic, he expects a better performance and an end to the declines for the rest of the year, but did not commit to a 'strong rebound'.

Enrique Sojo requested a deeper analysis of Mexico's international traffic dynamics for the second half of the year and asked whether the domestic passenger recovery would be a strong rebound or more gradual.

Answer

CEO Adolfo Castro Rivas stated that 38% of the international traffic decline was due to the Tulum airport's ramp-up, with the remainder from broader market weakness. He indicated the domestic recovery would be gradual, expecting an end to declines rather than a sharp rebound.

Enrique Sojo asked if new information from Volaris about prolonged GTF engine issues and slower capacity growth would significantly hinder ASUR's short-to-medium term growth.

Answer

Executive Adolfo Castro Rivas acknowledged the ongoing Pratt & Whitney issues but highlighted the net increase in aircraft across major carriers. He expects the most significant effects to persist through the first three quarters of the year before the situation begins to improve.

Inquired about lease renewal spreads, whether expiring leases are being renewed at full market rates, and the composition of the 'other revenue' line item.

Answer

Vesta is achieving significant rent increases on renewals, with total spreads in the double-digits (10-15%), well above the standard annual CPI adjustments. The 'other revenue' of $4.2 million primarily consists of reimbursable services provided to clients, with energy reimbursables being the largest and fastest-growing component.