March 2015 figures are now in for the three publicly traded Mexican Airport manager/operators. Two of the operators reported sharp increases in throughput.
Grupo Aeroportuario Del Sureste (ASR-NYSE, $145.260, announced a 12.3% overall increase in passenger volumes through all of their airports. ASR operates the desirable Cancun International Airport concession. As the most tourist oriented of the public airports in Mexico, growth in passenger volumes typically results in attendant increases in retail revenues from airport shops, restaurants and related concessions.
Grupo Aeroportuario Del Centro Norte (OMAB-NASDAQ, $40.76) announced a jaw-dropping 22.9% overall increase in passenger volumes at their airports. OMAB operates the coveted Monterrey airport concession which, apparently, is greatly benefiting from the steady growth in Mexico’s automotive complex as well as ancillary industries.
Grupo Aeroportuario Del Pacific (PAC-NYSE, $66.96) reported a 6.4% increase in traffic for March, 2015.
PAC operates a somewhat balanced mix of tourist oriented and industrial oriented local passenger airports. In late 2014, the Los Cabos Airport suffered a transitory reduction in passenger volumes due to Hurricane Odile (October 2014) related resort closures. Volumes have yet to fully recover in the Cabo San Lucas region of Mexico.
As resorts in the Cabo region are repaired and brought back on-line, I expect a more gradual pickup in passenger volumes, when compared to ASR or OMAB.
The investment implications of such volume growth is detailed in a separate report exclusively for Gnostic Capital portfolio model paid subscribers and clients. This may be found in the Portfolio Model subscription section.