Grupo Aeroportuario Del Pacifico Q2 2025 Earnings Call Transcript

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Provided by Quartr
July 23, 2025

Key Takeaways

  • Positive Sentiment: Highlights include a 4.1% YoY increase in passenger traffic to 15.8 million and a 31.1% jump in EBITDA to ARS 5.5 billion, with net income up 17.9%.
  • Positive Sentiment: Added 8 routes in Q2 (7 domestic, 1 international) and plans to launch additional frequencies and new Canadian routes in November, bolstering seasonal network growth.
  • Negative Sentiment: Stricter U.S. migration enforcement could deter VFR travel, potentially affecting roughly 38% of GAP’s international traffic on U.S.–Mexico routes.
  • Positive Sentiment: Maintains solid financial position with ARS 9.7 billion in cash, a net debt/EBITDA ratio of 1.8x, repayment of a $2.5 billion bond and a new MXP 3.4 billion credit facility.
  • Positive Sentiment: Pursuing strategic expansion via the Turks & Caicos tender and evaluating CCR Airports assets, targeting assets with future growth potential and attractive returns.
AI Generated. May Contain Errors.
Earnings Conference Call
Grupo Aeroportuario Del Pacifico Q2 2025
00:00 / 00:00

There are 9 speakers on the call.

Operator

Good day, everyone. You're on hold for today's GAAP conference call and will be starting shortly. Please standby as we continue admitting additional participants. Thank you. Good day everyone and welcome to GAP's conference call.

Operator

At this time, all lines have been placed on mute to prevent any background noise. After the presentation, we will open the floor for questions, and at that time, instructions will be given if you would like to ask a question. Now it's my pleasure to turn the call over to Gap's Investor Relations team. Please go ahead.

Speaker 1

Thank you and welcome to Gap's second quarter twenty twenty five conference call. Prior to introducing Gap's management team, I would like to take a few moments to read the forward looking statements as described in the financial disclosure statement. Please be advised that the information shared today may include forward looking statements. These may not account for future economic circumstances, industry conditions, the company's future performance or financial results. As such, any information discussed is based on several assumptions and factors that could change causing actual results to materially differ from the current expectations.

Speaker 1

For a complete note on forward looking statements, please refer to the quarterly report. Thank you so much for your attention. I'd like to present our speakers today, Mr. Raul Revuelta, Chief Executive Officer and Mr. Saul Dia Real, Chief Financial Officer.

Speaker 1

At this time, I will turn the call over to Mr. Cabuelta for his opening remarks. Please begin.

Speaker 2

Good morning, everyone, and thank you for joining us today. I'm pleased to be able to share with you GAP's key operational high and financial highlights for the second quarter of this year. Overall, it was a solid quarter, marked by a continued growth in revenue, EBITDA and net income. This was achieved despite ongoing headwinds due to the macroeconomics issue and FX volatility. Let me begin with a discussion of total passengers traffic.

Speaker 2

We reached $15,800,000 representing a 4.1% increase if we compare it to the same quarter of 2024. It is also important to mention that eight new routes were added this quarter, seven domestic and one international, which bring us to 21 total new routes so far this year. As you mentioned that we are still expecting to announce additional routes and frequencies during the second half of twenty twenty five. In this regard, we have already announced additional frequencies and new international routes starting November to Canada, including services from Guadalajara to Montreal, Toronto and Calgary, from Puerto Vallarta to Toronto, Ottawa and Hamilton and from Montego Bay to Halifax and Ottawa. Canada continues to be an increasingly relevant market to Lisu and VFR, especially during the winter season.

Speaker 2

These new routes will not only expand our network, but also enhance our ability to capture seasonal demand and strengthen our position in key international markets. That said, market conditions change rapidly. As you know, with met just casuals, we're looking ahead at the upcoming traffic trends. Thus, we will closely watch any changes as they occur and make adjustments as needed. Mainly our concerns include a stricter U.

Speaker 2

S. Migration and enforcement policies under the current administration, which tends to discourage travel among the BFR international passenger space. However, estimated the segment represents approximately 38% of GAP's international traffic. As a result, while we see that a portion of these travelers may opt not to travel outside The U. S.

Speaker 2

In order to avoid any potential compensation with their immigration status. We believe this could impact international traffic, specifically in The U. S.-Mexico routes. But overall, we expect to maintain our initial annual guidance as Treblu announced. Having said that, revenues generation excluding IFRIC12 grew by 30.6% year over year, reaching ARS 8,200,000,000.0, driven by a 26.4 increase in aeronautical revenues and 41.8% increase in aeronautical revenues.

Speaker 2

And excluding the acquisition of the cargo facility, it represents a solid 14% increase. This strong top line performance was mainly supported by the implementation of tariffs that took effect in March 2025. The continued peso depreciation, which averaged around 13.6% versus the second quarter of twenty fourteen, as well as a 41% of total passenger traffic increase across our 14 airports. On the non aeronautical side, commercial performance was solid. Revenues from business lines operated directly by GAAP increased by 113%, driven by the consolidation of the cargo and bonded warehouse business.

Speaker 2

Third party operated business also grew by 10.7% with significant contribution from food and beverage, retail, duty free, ground transportation and timeshares. EBITDA increased by 31.1, reaching ARS 5,500,000,000.0 with an EBITDA margin of 67.1% excluding IFRIC 12. As we discussed in previous quarters, the margin reflects the operating cost integration of the new business such as bounded warehouse business and the hotel, which while contributing positively in absolute terms, lower individual margins. The cost increase during the quarter reflects the impact of higher operational expenses. Additionally, maintenance expenses increased by 57.3% related to the airfield improvements, the opening of new operational areas as well as operational jet bridges and the air buses as tasks that's previously managed by third parties both must now be operated directly by GAAP due to the new regulations.

Speaker 2

Despite the higher pressure on the cost of services, our focus remain on controlling costs, while at the same time ensuring that service quality across our airports remains top rate. Operating income increased by 30.4% and net income by 17.9%, reflecting GAAP solid underlying fundamentals. Turning to our financial position. As of June 30, we held by 9,700,000,000.0 in cash and cash equivalents. During the quarter, we paid the 2,500,000,000.0 CAPS 20 1 bond, the first tranche of dividends approved in the last shareholders meeting.

Speaker 2

And additionally, we secured a COP 3,400,000,000.0 credit facility from Banamex. These funds were used to concentrate short term debt with Banamex and Degrovea on a five year loan. We continue to actively manage liabilities and maintain a healthy balance sheet with a net debt to EBITDA ratio of 1.8 times. Let me now touch briefly on CapEx. During the first half of twenty twenty five, GAAP executed capital investments of about MXN 12,800,000,000.0 in line with our annual plans of MXN 13,300,000,000.0.

Speaker 2

This quarter, the investments were mainly focused on the international of key projects with early stage construction activities already underway. This includes growth on both air sites, infrastructure and commercial areas. Looking ahead, we remain cautiously optimistic while peso volatility and U. S. Macroeconomic conditions may impact discretionary travel.

Speaker 2

We are confident that our diversified airport portfolio and resilient domestic markets position us well to finish the year strong. I would like to mention that at the shareholders' meeting held last April, a dividend of MXN16.84 per share was approved by our for payment throughout 2025. The first tranche was already distributed in May with a reminder scheduled for the second half of the year, reinforcing our commitment to delivering value to shareholders while supporting growth through our disciplined investments. We are focused on continuing to execute our investment plan while prudently navigating traffic and maintaining the operational and financial excellence that we are known for. We are confident that our diversified revenue base and solid financial position will support the accretion of long term value shareholders moving forward.

Speaker 2

Before concluding, I wish to mention that as we informed during the previous conference call, we continue to pursue strategic expansion opportunities. As such, the outcome of the Turks And Caicos tender process was not being announced and we are ready on that. We also continue to evaluate our participation in the potential acquisition of CCR Airports assets. Thank you again for your time. Operator, please open the line for questions.

Operator

At this time, we'll open the question and answer session. Our first question comes from Stephen Trent from Citigroup. Please go ahead.

Speaker 3

Good morning, Raul. Good morning, Saul. Thanks for taking my question. Appreciate the color on the potential inorganic opportunities with Turks And Caicos and CCR. When you look at the broader environment, is there a lot else out there?

Speaker 3

I recall Barbados was pushing doing something that seems to have stopped. Or do you see these opportunities as relatively rare in terms of what else you might be able to buy? Thank you.

Speaker 2

Thank you, Steven. I mean, therefore, assets, the ones that we are pursuing in some way are always the one that has this potential future growth in passengers, but also, let me say, the correct level of possible profitability on the asset. In that way, I would say that there is in all the Latin America and The Caribbean, there will be some difference opportunities, but not necessarily all of these opportunities will be as will have the correct return that we are looking for. I will close in saying that the correct assets would be in some way not a lot as we see in the market. Say in other words, today we are analyzing some of the rear assets that in some way has the correct return for or could have the correct return for GAAP.

Speaker 3

Great stuff. That's very helpful, Raul. Appreciate that. Just one quick follow-up question. And apologies if I missed it.

Speaker 3

I recall that there was some opportunity for you to do something with a hotel in the Guadalajara Airport. And if you could just refresh my memory where things stand with that potential? Thanks.

Speaker 2

Thank you, Steven. I mean, the hotel in Guadalajara has been pretty good. I mean, have our first year of operation on the April. Let me say that we are achieving really interesting level of tariffs in one hand in average around 2,500 in average. And also, we are getting the occupancy rate around 80%.

Speaker 2

So for our first year, I will say that it's a really great beginning of operation of our first hotel.

Speaker 3

Great color. You again, Raul.

Operator

Our next question comes from Pablo Montivais of Barclays.

Speaker 4

Hi, Raul, Saul, Ale. Thanks for taking my question. My first one is about the tariffs. As of now, how much of the authorized tariff increase have you already incorporated? And what should we expect in terms of further adjustments going forward?

Speaker 4

Thank you.

Speaker 2

Gabriel, could you repeat it? I mean, we have a lot of communication for a second.

Speaker 4

Yes. I was referring to the tariffs. As of now, how much of the authorized tariff increase have you already incorporated? And what should we expect in terms of further adjustments going forward of the tariff?

Speaker 2

Hi, Pablo. This is Raul. Well, as we mentioned in the previous conference calls, we are seeing how is the market trend and we will try to make it in different stages. The first one was already implemented in last March. We are expecting to have in January 26.

Speaker 2

We are analyzing if it's possible to have another one during 2025. That is complicated to say now and it's complicated to see because the decrease in training traffic, we are waiting to say what is that. The train considering immigration action from the U. S. Government and that could imply little decrease in terms of a VFR market to our airport.

Speaker 2

So we will analyze it, but what is pretty sure to have a second adjustment at the beginning of twenty twenty six. Just for Sorry. I mean, the main idea would be that, I mean, trying to close as close as possible ninety percent of fulfillment of this year. And for sure, in the coming year, we are trying to do an important adjustment. Just for remind of everybody, it is important to mention that the fixed rate and the possible appreciation of the peso in some way are pressured the fulfillment of the maximum tariff.

Speaker 2

So that is another variable to review really, really closer in the coming months.

Speaker 4

Of course. And kind of a follow-up to this. Have you seen this particular negotiation airlines being much more vocal or pushing back harder in terms of tariff increase? Or has been business as usual?

Speaker 2

I would say that the normal is nothing different, I would say, the market. I mean, it's not only of Mexico, it's a national it's an international, I would say, trend that always in some way, the airlines would be more vocal about any changes on the tariffs of an airport. But I'm seeing, Pablo, that's still in the same way that in the past. I'm not seeing any, I would say, change on how vocal are the airlines about the possible change on tariffs.

Speaker 4

Perfect. Thank you.

Operator

Our next question comes from Fernanda Erechia from BTG.

Speaker 5

Hey, Raul, Saul, Ale. Thank you for taking my question. Two here from our side as well. The first, just wanted to dive deeper on the traffic trends. Yesterday, Volaris mentioned a stabilization in the softness of demand in the cross border region by mid Q2.

Speaker 5

Just wondering if you have seen the same trend and if we should anticipate an improvement second half of this year? And second, just wanted to dive deeper on the inorganic growth that you mentioned. If you could share with us any time line for the answers from Turks And Caicos and the CCR process? And also, I wanted to understand if you have appetite for the whole portfolio of CCR or just the international airports? Thank you.

Speaker 2

Thank you, Fernando and Sergio. In terms of the traffic trends, yes, we are seeing that after some changes on the migration policies under the Trump administration, we saw some decrease on number of passengers in BFR routes as could be some of Guadalajara Los Angeles, Morelos Angeles, Marina Oak and the most, I would say, biggest BFR routes. Saying that, I think that day by day, it's more clear for our passengers and for the BFR market, which would be the possible policies. And they are, I think, could begin to feel more, I mean, comfortable to fly on the coming months as soon as they know that clear rules about the coming back to home, that the green cards are working as always for coming back, that they have not seen cancellation of green cards on the border and these kind of things. And I will say that I'm in the same way that Polarico mentioned in the conference call that we expect that some of the passengers that in some way changed their plans for flying to Mexico because all the changes of migration the migration policies.

Speaker 2

For today, they have more clear information and they will finally fly on the coming months. But again, it's something really changing day by day. So it is that is important to have in mind. The other part, I would say that fits in the still be the I would say, the elephant in the room is that we continue to not have complete information about the fleet or the grounding fleet of Vivalo and Volaris mainly due to the Pratt and Whitney ninjas. So I will say that one of the key factors for understanding the trend on the coming months and the coming year will be when all these planes will come back to flight again.

Speaker 2

So that will be an important part to understand on coming months. In terms of the inorganic growth, we are expecting and continue expecting the annual for Turks and Caicos, and we are expecting that in some moment during this year, we're going to have the final decision for that government. And for the case of CCR, we are still on the analysis. I mean, for the moment, the way that the company has released the opportunity is for holding portfolio, but we are analyzing asset by asset. And as soon as we are ready for make a formal position or a possible bid, I mean, the market will know.

Speaker 2

But I would say that we are analyzing all the different assets that are in the portfolio of CCR.

Speaker 5

Okay. Thank you very much.

Operator

Our next question comes from Giederme Mendez of JPMorgan.

Speaker 6

Hey, good morning, Raul, Saul. Thanks for taking my question. The first one is a follow-up on the MotivaCCRs portfolio. You think that assuming that you buy the whole portfolio that would require some kind of new equity injection or you'd be comfortable to increase your leverage for a period of time? And if that's the case, if dividends could be impacted somehow?

Speaker 6

And the second point, it's a question related to what Volaris mentioned yesterday on the conference call about unbundling the airport fees. Our understanding is that there is no impact to GAPS or in any of the airport operators, but just wanted to confirm this understanding. Thank you.

Speaker 2

Thank you, Guilherme. In terms of the CCR portfolio, I mean, we're still on the analysis. But even with that, I would say that we have a really healthy balance sheet and the numbers that we are working with about this potential transaction would not include injection of capital. We think that we have enough space on our balance sheet, if that is the case, under the number that we are thinking for this possible asset. So in general terms, we are not thinking on any kind of injection of capital for this specific transaction.

Speaker 2

In terms of the separation of the Tua for I mean, it's something that for instance, Vibero rules have implemented more than four years ago and even Morales have implemented for some time ago also. I mean, it's just another flexible way for the our passengers for acquiring a ticket for flying. So we are not seeing any, I would say, any big difference trend on that because it has been on the market for the last years. So we really don't see any kind of potential change on the trend of traffic because this possible change on Bonaire's way to sell the tickets.

Speaker 6

That's very clear. Thank you, Raul.

Operator

Next we have Jens Spies of Morgan Stanley.

Speaker 7

Hello. Yes. Thank you, Raul. So I have basically two follow ups on answers you already gave. One is on the question that Pablo did on the maximum tariff.

Speaker 7

And based on our calculations, we get that you could increase tariffs by around 15% to 20%. Does that number make sense to you? Just see if we are in the ballpark. And the second one is on BFR demand. Obviously, the situation remains quite fluid and uncertain, I guess.

Speaker 7

But so first of all, we're seeing quite strong capacity growth in the fourth quarter for you. So almost 10% of seat capacity being allocated according to schedules. That's quite strong. So are you seeing the same? And is here like the key variable maybe the load factors of the airlines?

Speaker 7

I don't know, what are your thoughts on like the fourth quarter and how much capacity is being allocated to your airports? Thank you. And Mexico, by the way.

Speaker 2

Thanks, again. I mean, in terms of the maximum tariff, I mean, we need to perfectly understand on the coming months how going to be the I mean, the forecasting of the effects of the dollar and also the inflation on the product price index for earning the final number for that, how it could be the increase on tariff for the coming year. But I would say that in some of our airports, remember that the maximum tariff is a tariff independent for each one of the airports. So I would say that for some of our airports, we will try to achieve a double digit increase on passenger fee. From some other of our airports will be just inflation.

Speaker 2

But it will depend on the airport. But I will say that in general terms, will be the answer. And in terms of the demand, yes, when we see OAG and all I mean, the asking of a slot for the last quarter, we are seeing a double digit increase in terms of capacity for airlines in the Mexico airports. But I mean, it's great that we are really optimistic. But the thing is to really follow the low factors of the airlines on that for those moments.

Speaker 2

I will say that it will depend of how the Mexican economy is doing at the end of the day. And also, if there are any kind of changes on policies on migration from The U. S. That in some way could affect the VFR market. But in general terms, I will say that we continue to be optimistic about the last quarter of this year, seeing the additional capacity that different airlines are bringing to our airports, for sure in the domestic market, but also related with leisure market and other markets that in the past has not been, I mean, exploded in our airports.

Speaker 2

That could be the additional seats from Canadian markets that we already talked for Vallarta, for Motiva Bay and for Guadalajara. But also other lines that are beginning to develop for the first time as for instance, the service of Copa from Panama to Los Cabos that is completely a new market that could be in some way that we want to see in the coming year. But I would say that is a great news for Los Cabos that have the opportunity that bringing all these beyond passengers, beyond their hopes of Panama and also South America coming to this camp. So we are still optimistic about the last quarter and the next half a year of this year.

Speaker 7

All right. Perfect. Yes, that's very clear. And just if I may, one quick follow-up on the first question. As of the second quarter, are you at around 85% of the maximum tariff that you're allowed to charge?

Speaker 7

That make sense for you, that number, 85,000,000?

Speaker 2

Depends on the for sure on the all the needs of the airport. But I mean, would you see it as a general number will be incorrect? Yes. Just remember that on the first six months of the year, January and February, we have zero increase on time. So the next month is going to be a little different.

Speaker 7

Got it. Got it. All right. Perfect. Thank you, Raul.

Operator

Next, we have Pablo Ricaldi of Itau.

Speaker 8

Hi, good morning, Gab. This question is more maybe for Saul, because we have seen huge increase in depreciation in the past couple of years. So I don't know how this affects your dividend policy or your needs of leverage to fund your CapEx program? That's my first question.

Speaker 2

And the other one, it's on

Speaker 8

the Madrid route. We have been rumors that Iberia is planning to open Guadalajara Madrid route. I don't know if you can confirm that.

Speaker 2

Hi, Pablo. It's correct. The depreciation is increasing due to the capitalization of the assets, but also we have to consider the acquisition of the cargo bonded facility that is included in the full half of that this year. That's why the decrease also into the depreciation and amortization.

Speaker 8

But that should change how your like fund your CapEx program or we should continue to expect that most of the CapEx program will be funded with debt?

Speaker 2

We will continue the same. Okay, perfect. Related of the Maribelo Alajara with Iberia. A couple of weeks ago, Iberia announced the beginning of the route of several routes in Latin America and for the case of Mexico, in Monterrey related with the operation of our new play, the three twenty one large that could achieve Monterrey and some other markets with more, I would say, smaller demand. In that way, also they announced potential increase on or potential opening of our route from Guadalajara to Madrid.

Speaker 2

Today, this has not been concluded the negotiation or, I would say, announced by Iberia. But in some moment, they in the same moment that they announced the Monterrey to Madrid route route, they announced also the potential route for Guajara. But for the moment, it has not been, I would say,

Speaker 8

outraged Perfect. Thanks, Raul.

Speaker 2

Thank you.

Operator

Next, have Jorge Vargas of GBM.

Speaker 8

Hi, good morning. Thank you for taking my questions. With growing CapEx, higher concession fees and a larger debt balance, how are you thinking about sustainability of distributions in the medium term? Should we expect a more cautious dividend policy? And my second question is traffic at Montego Bay has continued to soften.

Speaker 8

Now that you have renegotiated that concession, are there any initiatives in place to reactivate growth and strengthen its connectivity? Thank you.

Speaker 2

Hi Jorge. This is Raul. Well, the effect of the concession fee affects directly to our EBITDA and considering the CapEx that we are making also in the base of our tariff increase, tariff increase related to our revenue increase. So at the end, we believe that our distributions will continue in the same. The effect obviously of the concession fee over the EBITDA is affecting directly, That is offset by the acquisition of the new cargo facility.

Speaker 2

At the end, I would say that in general terms, EBITDA margin will be around 66 percent, 60%. So in some way, we are having a little effect on that EBITDA level. In terms of the traffic in MBJ, we are having some effects due to Raul, you want to answer? Yes. I mean, talking about in the last year, we saw and it was a trend not only in Montego Bay, but I would say that mainly in all The Caribbean, we saw a decrease in number of seats mainly from American Airlines it was from mainly from New York and Miami.

Speaker 2

If you remember, just after the COVID emergency ends, the biggest airlines in The U. S, the biggest U. S. Airlines just push a huge amount of additional fees on leisure, generated a really big increase on traffic in mainly all The Caribbean. What we saw in the last year is, I would say, a re accommodation on some of these additional offers that they push into the leisure market.

Speaker 2

But we are seeing and we are optimistic on what we're going see for the case of MBJ in the coming years. First of all, different announcement of additional hotel room hotel and key rooms in the area, it's really important yes, a really important effect coming on coming years. But also the Tourist Minister and the Touring Board of Jamaica is doing a really important job trying to bring back some of the different and attacking some of the different markets. So in general terms, what we are seeing on the coming years of MEG is after all these decrease of number of seats that we saw in the last year, we think that we just touch the base and the coming months and years will be increasing number of seats. And on the long term, we're going to see also an important increase of number of rooms that will bring additional tourists to the island.

Speaker 2

So we are really optimistic on the long term for Jamaica.

Speaker 8

Very clear. Thank you.

Operator

And our next question comes from Abraham Fuentes of Banco Santander.

Speaker 8

Hello. Good morning. Two questions from my side. The first one, could you give us more color about the non ad and not to cover any per passenger going forward? How much space is there to continue growing or when we can expect normalization?

Speaker 8

And the second question is about the U. S. Department of Transportation claiming that Mexico has engaged in anticompetitive behavior. Is there any opportunity or risk are you seeing this

Speaker 2

regard? Thanks. I mean, terms of commercial revenue per passenger, for sure, that will have a big jump due to the acquisition of JWTC, the cargo facility. But also, we have experienced an important increase on cargo per passenger just as we open new infrastructure, for instance, the expansion of Terminal Guanajuato Gara, the expansion of Tijuana, the expansion of Los Cabos. So the next, I would say, jump that we're going to see on passengers per traffic, it will depend on the opening of new additional areas that is related with the new master plan.

Speaker 2

Let me put it this way. For instance, in the new master plan, we will have a complete brand new Terminal 2 for Guadalajara that will be operating for mean, for the end of twenty twenty eight. At that moment, we're going to see an important jump on revenue per passenger, commercial revenue per passenger in that airport. For instance, or if for example, we are expecting on the first quarter of the twenty twenty seven, the opening of the new terminal building of Puerto Vallarta Airport that also will bring a great potential for an increase on commercial revenues per passenger. So in that way, the new additional space that we could generate from the new terminals and expansion that will come on this new master plan will be completely aligned with the next jumps on the revenue commercial revenue per passenger.

Speaker 2

In terms of The Mexico U. S. New aviation policies, I mean, hard to see on this between all the different movements that is happening on the bilateral relationship with The U. S. My point of view is not only what could happen on the aviation policy, it's a more wider discussion about the bilateral relationship between both countries.

Speaker 2

But in terms of what it was announced, it will depend how many months will still play the need of an additional authorization for new slots in The U. S. For the Mexican carriers. Because for the moment, I mean, we just hear it, we have a big part of the fleet of some of the Mexican airlines rounded for the problem of the P and W engine. So on the really short term, I'm not foreseeing any kind of impact for this change on the aviation policy from U.

Speaker 2

S. To Mexico. But in the long term, it will depend how if this authorization continues and how hard or difficult will be for the Mexican carriers to opening a new route in The U. S. So and for the moment, I really I would see more concerned about a more broad bilateral relationship between countries rather than just The U.

Speaker 2

S. Aviation policy.

Speaker 8

Okay, perfect. Very clear. Thanks.

Operator

Next we have Alain Macias with Bank of America.

Speaker 8

Hi, good morning and thank you for the call. Just two questions or clarifications. I guess the exposure of GAAP airports to The U. S. Mexican airlines, just thinking about the possible restrictions from the U.

Speaker 8

S. Department of Transportation, is that 38%? Is that the exposure? And also, your guidance, I guess, are maintaining your guidance, right? Thank you.

Speaker 2

Yes. I mean, we are seeing a possible impact on around 38%. That's more related to the BFR market because the leisure market is, I mean, operated for U. S. And Canadian carriers.

Speaker 2

So it will be not impacted on the leisure market, but for sure, it could be an impact on BFR. But also, it is important to remember that for instance, couple of years ago when the U. S. Government increased the category for Mexico, for the Mexican authority in aviation, we saw a really important increase on traffic in Tijuana for the passengers, the VFR passengers walking through the CDX. Because at the end of the day, all the Southern California area catchment area that is covered by the Tijuana Airport to the CDX could be connected even without the authorization of any additional services to The U.

Speaker 2

S. For a Mexican carrier. They could put their fleets or their capacity for a tent of the Southern California market through the Tijuana Airport. And that happened a couple of years ago when the decrease on the category, if you remember at that moment, for instance, Tijuana Airport used to be even bigger than Monterey Airport for a couple of years and was related So in the same way, again, our portfolio in some manner could help us for any potential slowdown of additional routes or services from Mexican carriers in The U.

Speaker 2

S.

Operator

We have no further questions at this time. Raul and Saul, back over to you for any additional or closing comments.

Speaker 2

Thank you once again for joining us today for our second quarter results conference. Please contact our Investor Relations team with any additional questions you may have. Have a great day, and thank you for your attention.

Operator

That concludes our meeting today. You may now disconnect.

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