Corporacion America Airports Reports Third Quarter 2023 Results

Corporación América Airports S.A. one of the leading private airport operators in the world, reported its unaudited, consolidated results for the three and nine-month period ended September 30, 2023. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”).

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 (“IAS 29”), as detailed in Section “Hyperinflation Accounting in Argentina” on page 25.

Third Quarter 2023 Highlights

• Consolidated Revenues of $469.5 million, an 18.7% year-over-year (YoY) increase, or 12.6% above 3Q19. Excluding the impact of IFRS rule IAS 29, revenues increased 18.5% YoY to $473.7 million, reflecting increases of $46.2 million in Aeronautical Revenues and $28.7 million in Commercial Revenues. Revenues ex-IAS 29 were 8.1% above pre-pandemic levels.
• Delivered YoY increases across key operating metrics:

• 18.8% in passenger traffic to 22.2 million, reaching 97.9% of 3Q19 levels.
• 13.3% in cargo volume to 92.7 thousand tons, to 93.2% of 3Q19 levels.
• 12.5% in aircraft movements, to 99.8% of 3Q19 levels.

• Operating Income of $131.7 million, up from $92.5 million in 3Q22, mainly reflecting the YoY recovery in passenger traffic.
• Adjusted EBITDA increased to $172.7 million, from $131.1 million in the year-ago period, with Adjusted EBITDA margin ex-IFRIC12 expanding to 40.9% from 37.7%.
• Compared to 3Q19, Adjusted EBITDA increased 72.7%, with Adjusted EBITDA margin ex-IFRIC12 expanding 8.6 percentage points, or 1.1 percentage points when excluding a $23.1 million bad debt charge reported in 2019.
• Strong cash position with Cash & cash equivalents totalling $468.9 million.
• Net debt to LTM Adjusted EBITDA improved to 1.6x, from 1.8x as of June 30, 2023.

CEO Message

Martín Eurnekian, CEO of Corporación América Airport said: "We are pleased to report another strong quarter with solid revenue growth across geographies. Adjusted EBITDA set another record high at 173 million dollars, up 73% compared to the third quarter of 2019, even with passenger traffic recovering to just 2% below pre-pandemic levels. Importantly, Adjusted EBITDA Margin, ex-IFRIC12, expanded to 40.9% as we continued to drive operating leverage across our airport network. This good performance is a result of our focus on efficient execution and the recovery in travel demand.

Equally important, we remain focused and are progressing on several fronts: the execution of our fully funded Capex programs in Argentina and Uruguay, the negotiations with the government of Armenia to expand capacity at Zvartnots Airport, and the approval process for a new master plan at Florence Airport. Also, negotiations remain in place with the government of Nigeria in connection with the Abuja and Kano concession agreements as we continue to seek opportunities to selectively expand our airport network. Finally, we expect to receive the indemnification payment related to the return of Natal Airport within the next few months.

Looking ahead, we remain cautiously optimistic as we are monitoring the macroeconomic environment in Argentina, a concession we have managed successfully across multiple macroeconomic cycles for over 20 years. We also maintain a positive view for Armenia, Italy, Brazil and Uruguay. In summary, we are well prepared to continue to both effectively support existing operations and evaluate and pursue strategic initiatives with a view to delivering value to our shareholders.”

Corporación América Airports S.A. Reports September 2023 Passenger Traffic

Corporación América Airports S.A. one of the leading private airport operators in the world, reported this week a 15.7% year-on-year increase in passenger traffic in September 2023, reaching 98.9% of September 2019 levels.

Passenger Traffic Overview

Total passenger traffic grew 15.7% compared to the same month of 2022, supported by the ongoing recovery in travel demand after the Covid-19 pandemic and the gradual resumption of routes and frequencies across all countries of operations. Overall passenger traffic reached 98.9% of September 2019 levels, substantially in line with the 98.7% posted in August, with international passenger traffic surpassing pre-pandemic levels of September 2019 by 4.9%. Domestic traffic stood at 96.6% of September 2019, in line with 96.3% in August.

In Argentina, total passenger traffic continued to recover in September, increasing by 20.4% year-over-year (YoY) and surpassing pre-pandemic volumes by 2.1%. Domestic traffic was 7.5% higher than the levels in September 2019, while international passenger traffic also continued to recover, reaching 90.7% of pre-pandemic levels, up from the 87.0% recorded in August.

In Italy, passenger traffic grew by 18.2% compared to the same month in 2022 and surpassed pre-pandemic levels for the third consecutive month, increasing by 1.6% compared to September 2019, down from the 4.1% recorded in August when traffic benefited from the summer season. International passenger traffic, which accounted for 80% of the total traffic, was in line with September 2019 levels, while domestic passenger traffic surpassed pre-pandemic levels by 7.8%. Although some pre-pandemic destinations still need to resume at Pisa airport, Florence airport has already exceeded 2019 levels and was 10.4% above September 2019 traffic volumes.

In Brazil, total passenger traffic decreased slightly by 0.1% YoY, reaching 92.9% of September 2019 levels. This decline is down from the 101.4% recorded in August. Domestic traffic, which accounted for almost two-thirds of the total traffic, reached 95.6% of pre-pandemic levels, while transit passengers stood at 87.5% of September 2019 levels, a slight decrease from the 88.9% recorded in August.

In Uruguay, total passenger traffic, which is largely international, continued to recover and increased 31.3% YoY, reaching 94.5% of September 2019 levels, up from 91.3% recorded in August.

In Ecuador, passenger traffic increased 5.7% YoY and surpassed pre-pandemic volumes by 20.8%. Both domestic and international passenger traffic exceeded pre-pandemic levels by 25.7% and 15.7%, respectively. The comparison with pre-pandemic benefited from the airport’s closure during three weekends of September 2019.

In Armenia, passenger traffic continued its solid recovery trend, increasing by 34.2% YoY and surpassing the pre-pandemic levels of September 2019 by 62.7%.

Corporación América Airports S.A. Reports June 2023 Passenger Traffic

Corporación América Airports S.A, a leading private airport operator in the world, reported today a 32.4% year-on-year (YoY) increase in passenger traffic in June 2023, surpassing pre-pandemic levels of June 2019 by 2.6% for the first time.

Passenger Traffic Overview

Total passenger traffic grew 32.4% compared to the same month of 2022, supported by the ongoing recovery in travel demand after the Covid-19 pandemic and the gradual resumption of routes and frequencies across all countries of operations. Overall passenger traffic reached 102.6% of June 2019 levels, up from 97.9% posted in May, with international and domestic passenger traffic surpassing pre-pandemic levels of June 2019 by 0.7% and 4.2%, respectively.

In Argentina, total passenger traffic continued to recover increasing 36.6% YoY and surpassing pre-pandemic volumes, by 5.9%. International passenger traffic reached 83.1% of pre-pandemic levels, up from the 81.5% recorded in May, while domestic passenger traffic surpassed June 2019 pre-pandemic levels by 15.6%. On April 14, the Company inaugurated a state of the art new departures terminal at Ezeiza Airport, with capacity to serve up to 30 million passengers per year.

In Italy, passenger traffic grew 9.7% versus the same month of 2022. When compared to pre-pandemic levels, total traffic stood at 98.3% of June 2019, slightly up from 97.9% in May. International passenger traffic, which accounted for almost 80% of total traffic, reached 95.7% of June 2019 levels, whereas domestic passenger traffic surpassed pre-pandemic levels by 8.7%.

In Brazil, total passenger traffic increased 32.0% YoY and surpassed, for the first time, pre-pandemic volumes by 2.6%. Domestic traffic, which accounted for almost two thirds of total traffic, surpassed pre-pandemic levels by 6.8%, whereas transit passengers reached 95.1% of June 2019 levels, up from 86.4% in May.

In Uruguay, total passenger traffic, which is largely international, increased 29.1% YoY and reached 85.1% of June 2019 levels, slightly up from 84.4% in May.

In Ecuador, passenger traffic increased 23.4% YoY and surpassed pre-pandemic volumes by 10.1%. Both domestic and international passenger traffic exceeded pre-pand
emic levels by 16.8% and 3.4%, respectively.

In Armenia, passenger traffic increased by 63.7% YoY and surpassed the pre-pandemic levels of June 2019 by 82.4%, thus sustaining a solid recovery trend.

Corporación América Airports S.A. Reports January 2023 Passenger Traffic

Total passenger traffic up 42.7% YoY reaching 90% of pre-pandemic levels;

Armenia and Ecuador above January 2019 levels, while Argentina and Brazil at 93% and 85%, respectively

Corporación América Airports a leading private airport operator in the world, reported today a 42.7% YoY increase in passenger traffic in January 2023, reaching 89.9% of January 2019 levels.

Passenger Traffic Overview

Total passenger traffic grew 42.7% compared to the same month of 2022, supported by an ongoing recovery in travel demand after the Covid-19 pandemic, as reflected by higher load factors and the gradual resumption of routes and frequencies across all countries of operations. Overall passenger traffic reached 89.9% of January 2019 levels, up from the 87.2% posted in December, with international and domestic passenger traffic reaching 89.8% and 90.8% of January 2019 levels, respectively.

In Argentina, total passenger traffic continued to recover increasing 57.7% YoY and reaching 93.0% of January 2019 levels, up from the 92.1% posted in December. International passenger traffic reached 77.7% of pre-pandemic levels, down from the 82.7% recorded in December 2022, mainly as a result of a tough comparison due to a particularly strong January 2019. Domestic passenger traffic surpassed –for the first time– pre-pandemic levels, by 2.1%.

In Italy, passenger traffic grew 121.7% versus the same month of 2022, when traffic was heavily impacted by the Omicron variant. When compared to pre-pandemic levels, total traffic stood at 91.9% of January 2019, up from the 85.4% posted in December 2022, with international passenger traffic, which accounted for almost 75% of total traffic, reaching 92.6% of January 2019 levels.

In Brazil, total passenger traffic increased 4.3% YoY, and reached 85.3% of January 2019 levels, up from 84.3% recorded in December. Domestic traffic, which accounted for almost 60% of total traffic, improved to 86.0% of pre-pandemic levels whereas transit passengers reached 85.2% of January 2019 levels.

In Uruguay, total passenger traffic, which is largely international, increased 61.0% YoY and reached 74.4% of January 2019 levels, down from the 79.0% posted in December, partly impacted by a weaker-than-expected seasonal tourism, in Punta del Este.

In Ecuador, passenger traffic increased 48.8% YoY and surpassed pre-pandemic levels by 2.3%. International passenger traffic exceeded pre-pandemic levels by 9.3%, supported by routes to Europe, as well as the US and Panama, whereas domestic passenger traffic reached 96.6% of January 2019 pre-pandemic levels.

In Armenia, passenger traffic surpassed pre-pandemic levels for the ninth consecutive month, at 171.0% of January 2019 figures, improving from the 141.1% and 147.7% recorded in November and December, respectively. On a YoY basis, passenger traffic increased 69.8%.

Corporación América Airports saw a 63.5% increase in passenger traffic during September 2022

Corporación América Airports S.A. -  a leading private airport operator in the world, has just reported a 63.5% increase in passenger traffic in September 2022, reaching 85.4% of September 2019 levels.  Currently, the Company operates 53 airports in 6 countries across Latin America and Europe - Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy.

Passenger Traffic Overview

Total passenger traffic grew 63.5% compared to the same month of last year, driven by increases across all countries of operations, particularly in Argentina, supported by a continued recovery in travel demand following the gradual lifting of travel restrictions across all countries of operations. Overall passenger traffic recovered to 85.4% of September 2019 levels, from 83.2% in August, with international and domestic passenger traffic reaching 87.5% and 81.1% of September 2019 levels, respectively.

In Argentina, total passenger traffic continued to recover increasing 139.3% YoY and reaching 84.8% of September 2019 levels, up from the 79.5% posted in August. International passenger traffic improved to 78.6% of pre-pandemic levels, compared with 69.6% in August, showing a continued recovery since the full re-opening of borders on November 1, 2021 and the lifting of travel requirements. Domestic passenger traffic increased sequentially reaching 87.8% of September 2019 levels, up from the 83.0% posted in August.

In Italy, passenger traffic grew 64.1% YoY reaching 85.9% of September 2019 levels, down from the 89.2% posted in August, when passenger traffic benefited from the summer season. Effective June 1, 2022, all travel restrictions and Covid-related entry regulations were fully lifted.

In Brazil, total passenger traffic increased 15.9% YoY, and reached 93.0% of September 2019 levels, down from 97.7% recorded in August. Domestic traffic, which accounted for 55% of total traffic, stood at 83.9% of pre-pandemic levels whereas transit passengers exceeded September 2019 levels by 9.9%.

Passenger traffic continued to recover in August - Corporación América Airports S.A. reports

Total passenger traffic continued to recover reaching 83.2% of August 2019 traffic levels

Armenia and Ecuador above pre-pandemic levels; Brazil and Argentina at

98% and 80%, respectively

Aircraft movements above 90% of pre-pandemic figures

across all countries of operations

Photo Corporación América Airports S.A.

Passenger Traffic Overview

Total passenger traffic grew 76.0% compared to the same month of last year, driven by increases across all countries of operations, particularly in Argentina, Italy and Brazil, supported by a continued recovery in travel demand following the gradual lifting of travel restrictions across all countries of operations. Overall passenger traffic recovered to 83.2% of August 2019 levels, from 78.9% in July, with international and domestic passenger traffic reaching 83.2% and 80.9% of August 2019 levels, respectively.

In Argentina, total passenger traffic continued to recover increasing 181.4% YoY and reaching 79.5% of August 2019 levels, up from the 75.8% posted in July. International passenger traffic improved to 69.6% of pre-pandemic levels, compared with 68.0% in July, showing a continued recovery since the full re-opening of borders on November 1, 2021 and the lifting of travel requirements. Domestic passenger traffic increased sequentially reaching 83.0% of August 2019 levels, up from the 78.7% posted in July.

In Italy, passenger traffic grew 66.7% YoY reaching 89.2% of August 2019 levels, slightly down from the 91.3% posted in July. Passenger traffic benefited from the summer season and trends are expected to improve further in the coming months, also reflecting the lifting of travel restrictions effective June 1, 2022. Domestic traffic again exceeded pre-pandemic levels, boosted by a strong performance at Pisa Airport.

In Brazil, total passenger traffic increased 28.0% YoY, and reached 97.7% of August 2019 levels, up from 84.6% recorded in July. Domestic traffic, which accounted for 61% of total traffic, stood above 96% of pre-pandemic levels whereas transit passengers reached August 2019 levels.

Total passenger traffic in Uruguay, where traffic is largely international, increased 164% YoY and reached 67.6% of August 2019 levels, slightly above the 65.6% posted in July.

In Ecuador, passenger traffic exceeded, for the first time, pre-pandemic levels of August 2019 and increased 54.3% YoY. International passenger traffic improved to 96.2% of pre-pandemic levels, supported by routes to Europe, as well as the US and Panama, whereas domestic passenger traffic exceeded August 2019 pre-pandemic levels by 7.7%.

In Armenia, where traffic is entirely international, passenger traffic surpassed pre-pandemic levels for the fourth consecutive month, at 114.1% of August 2019 figures, improving from the 111.4% and 112.4% recorded in June and July, respectively. On a YoY basis, passenger traffic increased 30.0%.

Major new partnership formed to ramp up the introduction of EVTOL operations in Brazil

A major new partnership of global leaders in aviation and airports announces its intention to explore the infrastructure requirements to bring eVTOL passenger flights to Brazil within this decade. The partnership includes:

 

Avolon, the world’s second largest aircraft leasing company;

Corporación América Airports, the largest global private sector airport operator by number of airports;

GOL, Brazil’s largest airline;

Grupo Comporte, a leading Brazilian transport operator; and

Vertical Aerospace, the aerospace and technology company developing and manufacturing eVTOL aircraft.

The partnership will explore and define vertiport design and locations, as well as further infrastructure requirements for eVTOL operations in Brazil. With its well-developed Urban Air Mobility (UAM) market based on helicopter services, advanced aviation ecosystem and unique demographics, Brazil is set to become one of the pioneering markets for eVTOL services, including for Vertical’s VX4.

 

Each partner brings sector-specific and complementary expertise to bring eVTOL operations into operation in Brazil this decade. In particular, the partnership will benefit from Corporación América Airports’ special team dedicated to the research and development of the Advanced Air Mobility (AAM) segment and its two-decade-long expertise in airports design, construction and operation, as well as passenger traffic management. Corporación América Airports has already developed its own conceptual vertiport design and progressed AAM traffic analysis across several countries.

 

With some of the most congested cities in the world, the introduction of eVTOLs, such as the VX4, will transform how people move around and above the urban landscape, in Brazil. The VX4 will permit short-haul zero-emissions journeys that will revolutionise city air travel for Brazilians’ everyday lives by changing how we connect, commute and travel more efficiently, all in a more sustainable way.

 

This partnership builds on GOL’s and Grupo Comporte’s commitment to purchase or lease up to 250 of Vertical’s VX4 eVTOL aircraft from Avolon, announced last year. That commitment saw Avolon launch and lead a Working Group aiming at commercialising eVTOL aircraft in Brazil with Vertical Aerospace, Grupo Comporte and GOL. The Working Group has already conducted project familiarisation workshops with the Brazilian civil aviation authority Agência Nacional de Aviação Civil (ANAC) to permit the swift validation of the piloted, zero operating emissions and four-passenger VX4 aircraft. The VX4 is projected to have speeds of up to 200 mph, a range of over 100 miles, be near silent when in flight and offer a low cost per passenger mile. 

 

Dómhnal Slattery, CEO of Avolon commented: “The scale of our ambition for eVTOLs is reflected in our partnerships with some of the leading transportation and airport operators in Latin America. We are partnered with companies that share our ambition to materially reshape the commercial aviation market. Our objective is to deliver the infrastructure requirements to bring zero-emissions travel to Brazil mid this decade and revolutionise air travel in the region.”

 

Martin Eurnekian, CEO of Corporación América Airports, commented: “A new mobility ecosystem is arising and Corporación América Airports as a world leader in airport operations wants to be an agent of change in supporting the AAM implementation in those regions where we operate. With our expertise as airport operators in six countries in three continents along more than 20 years, we are committed to contributing with the development of the AAM ecosystem, in order to better connect people, goods and cultures and promoting a leaner, faster and more sustainable air transport.”

 

Paulo Kakinoff, CEO of GOL commented: "GOL completely bets on the expertise of CAAP in Advanced Aerial Mobility. Within reach, we have at hand a unique opportunity to unite the efforts of all parties involved to create a sustainable and safe operating ecosystem for eVTOL, with zero carbon emissions, both in Brazil and beyond. Constantly expanding in the regional segment, GOL is committed to including new and providential connectivity alternatives with this new air modal, based on its already extensive air network."

 

Stephen Fitzpatrick, Founder and CEO of Vertical commented: “I’m delighted that Vertical is partnering with Avolon, GOL, Grupo Comporte and CAAP to deliver critical eVTOL infrastructure in Brazil. It was in Brazil that I had the inspiration to begin Vertical Aerospace so it is incredible to see it becoming a reality there”.

 

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Corporación América Airports reports 907.0% increase in passenger traffic in June 2021

Corporación América Airports, the largest private-sector airport operator in the world by the number of airports, reported a massive 907.0% increase in passenger traffic in June 2021 compared to last year, but a 68.7% decline when compared to the same period of 2019.

Total passenger traffic in June 2021 grew  907.0% compared to the same period of last year, reflecting easier comparisons as June 2020 was highly impacted by the restrictions and travel bans to contain the COVID-19 pandemic. When compared to 2019, overall passenger traffic declined 68.7%, impacted by the COVID-19 pandemic across all countries of operations. However, this was a sequential improvement from the 73.6% decline reported in May 2021 vs 2019. International and domestic passenger traffic dropped 76.0% and 68.6%, respectively, from pre-pandemic levels of June 2019.

In Argentina, total passenger traffic increased 17.7x YoY. Against June 2019, overall passenger traffic declined 85.7%, with international passenger traffic declining 89.5%, impacted by tightened government restrictions to international flights, including a limit of 600 arriving international passengers per day starting the last week of June, while borders remain closed to non-resident foreigners, with limited exceptions. Domestic passenger traffic declined 84.3% compared to 2019, due to low passenger demand.