Grupo Aeroportuario Del Pacifico Q1 Earnings Call Highlights

Grupo Aeroportuario Del Pacifico NYSE: PAC opened 2026 with higher revenue and EBITDA despite a decline in passenger traffic, as management pointed to tariff-driven aeronautical gains in Mexico and continued non-aeronautical momentum as offsets to a “challenging traffic environment.”

Traffic declines tied to temporary disruptions and Jamaica storm recovery

CEO Raul Revuelta said total passenger traffic across GAP’s 14 airports fell 5.5% year-over-year in the first quarter. He attributed the decline to a combination of factors affecting both Mexico and Jamaica.

In Jamaica, Revuelta said the company continues to face headwinds from Hurricane Melissa. While the recovery of hotel capacity along the main tourist corridor has been “better than expected,” he noted passenger volumes have not yet returned to pre-storm levels. Revuelta said trends indicate the company will regain those levels by the fourth quarter of this year.

In Mexico, Revuelta described traffic pressure as largely driven by temporary disruptions, including a security incident in Jalisco during the last week of February that he said hurt perceptions of safety and softened demand at leisure destinations such as Puerto Vallarta and Cancún. He said these dynamics extended into March and affected spring break demand.

Revuelta also highlighted Tijuana’s exposure to cross-border and leisure travel demand, noting that roughly 75% of Cross Border Xpress (CBX) users are U.S.-based passengers accessing domestic flights to Mexican tourist destinations. He added that macroeconomic volatility, geopolitical tension, and fuel prices can pressure airline operating costs and lead carriers to realign capacity.

Revenue rises as maximum tariff implementation lifts aeronautical results

Despite lower traffic, Revuelta reported total revenue increased 2.8% versus the first quarter of 2025. Aeronautical revenue for the group rose 3.9%, while aeronautical revenue in Mexico increased 9.3% driven primarily by implementation of the maximum tariff for the 2025–2029 regulatory period. Revuelta said the tariff is linked to “the highest level of the CapEx investments in the history of the company.”

Non-aeronautical revenue increased 6.1%, with Mexican operations up 10.7%. Revuelta said growth was strongest in businesses operated directly by GAP, including the bonded warehouse business, which he said represents around 21% of total non-aeronautical revenue.

On the cost side, Revuelta said cost of service rose 6.5% year-over-year, mainly due to higher personnel costs, increased security and maintenance expenses, and expansion of operational areas. He said the company is working to offset pressure while maintaining cost control.

EBITDA increased 6.4% to MXN 6 billion, and EBITDA margin was 68.3%. Revuelta noted results were helped by revenue growth and efficiency, while also referencing a temporary effect from a lower additional concession fee at Montego Bay Airport tied to reduced passenger traffic and revenues.

Liquidity boosted by MXN 10.7 billion bond; proceeds earmarked for CBX and CapEx

Revuelta said GAP maintained a strong liquidity position, reporting cash and cash equivalents of MXN 23.2 billion, which he tied mainly to a “historic bond issuance” of MXN 10.7 billion on March 31. He said the proceeds will be allocated to GAP’s planned acquisition of 25% of CBX and to capital expenditures.

CFO Saul Villarreal also discussed the financing, telling analysts the company chose to borrow in pesos to take advantage of the current exchange rate and reduce long-term balance sheet volatility, even if it results in a higher interest rate. Revuelta said the approach provides “certainty about our long-term view balance sheet,” while noting exchange-rate effects still impact the profit and loss statement.

Revuelta added that during the quarter the company refinanced existing debt to optimize the balance sheet and strengthen financial flexibility.

CapEx pacing and depreciation discussed; MDP investments continue

Revuelta said GAP deployed MXN 1.8 billion in first-quarter capital expenditures under its master development plan (MDP), focused on capacity and passenger experience. Villarreal said CapEx deployment typically accelerates later in the year, as the early months are used for bidding processes. “We will be more intensive in terms of deployment during the following months,” he said.

Responding to a question on depreciation staying roughly flat year-over-year, Villarreal said the company did not have major newly capitalized projects that would increase depreciation, and that some previously capitalized assets have reached the end of their depreciation periods, offsetting new depreciation.

CBX transaction timing, cargo-driven commercial strength, and outlook commentary

Revuelta said the CBX business combination and internalization of technical assistance services—approved by shareholders in December 2025—remains in process and is expected to be concluded in the second quarter. On timing, he told Bank of America’s Alan Macias that the company is aiming to consolidate results in May.

On commercial performance tied to cargo, Revuelta linked the strength of the bonded warehouse business to rising high-value cargo volumes—particularly electronics—around Guadalajara and central Mexico. He cited “more than 20% increase of cargo of high value” and mentioned Foxconn as an example of large movement in Guadalajara. Revuelta said tariff changes affecting China and parts of Asia have contributed to a shift in production toward the Guadalajara area, lifting both cargo volumes and value, which he said drives bonded warehouse revenues.

On capital allocation and inorganic growth, Villarreal said GAP does not have another major project besides concluding and integrating CBX. He added that the Turks and Caicos opportunity “was canceled by the government.” Revuelta said the company is also focused on developing new airport businesses, including work on “two different projects for hotels” at Mexican airports, and improving efficiency in directly operated businesses.

Management also addressed airline capacity and fuel-price uncertainty. Revuelta said the company has not seen structural capacity changes tied to security concerns, and described current capacity reductions as not yet significant, though he cited service cuts announced on Guadalajara and reductions in Tijuana and Cancún. He said new routes are still being introduced, including routes Volaris announced from Guadalajara to Mazatlán, Zacatecas, and San Luis.

On guidance, Revuelta told analysts that the company was maintaining its previously communicated traffic guidance range (referenced on the call as 2%–6%), while noting uncertainty tied to geopolitics and fuel. He said GAP expects security-related impacts to be “completely behind for the summer,” and said the company will review guidance in the second quarter.

Revuelta also provided an update on maximum tariff implementation, telling Bradesco BBI’s Rodolfo Ramos that GAP is at 92%–93% fulfillment and expects to be near 95% by year-end, with additional air passenger fee changes planned for the summer at Puerto Vallarta and Los Cabos. He added that exchange rates matter because a portion of passenger charges are denominated in dollars.

For Tijuana specifically, Revuelta told Santander’s Abraham Fuentes that performance has been affected by a mix of issues, including aircraft availability constraints related to Pratt & Whitney engine inspections impacting Volaris, and what he described as temporary security-related effects. He said GAP expects improvement in summer as aircraft return and comparisons ease, adding he remains optimistic Tijuana will post positive passenger growth for the full year.

Revuelta closed the call by inviting investors to “GAP Day 2026” on May 13, beginning at CBX facilities in San Diego and continuing at Tijuana International Airport, with management presentations and tours of airport and CBX facilities.

Key metrics and items discussed on the call included:

• Total passenger traffic down 5.5% year-over-year across 14 airports in 1Q 2026
• Total revenue up 2.8%; aeronautical revenue up 3.9% (Mexico aeronautical up 9.3%)
• Non-aeronautical revenue up 6.1% (Mexico non-aeronautical up 10.7%)
• Cost of service up 6.5%
• EBITDA up 6.4% to MXN 6 billion; EBITDA margin 68.3%
• MXN 10.7 billion bond issuance on March 31; cash and cash equivalents reported at MXN 23.2 billion
• MXN 1.8 billion in 1Q CapEx under the master development plan
• Proposed dividend of MXN 20.8 per share over the following 12 months, to be discussed at the shareholders meeting

About Grupo Aeroportuario Del Pacifico NYSE: PAC

Grupo Aeroportuario del Pacífico, SAB. de C.V. NYSE: PAC, commonly known as GAP, is a leading airport operator in Mexico. Established in 1998 as part of the federal government’s airport privatization program, GAP holds long‐term concession agreements—typically 50 years—to manage, develop and operate airports under a public–private partnership model. Through these concessions, the company undertakes terminal expansions, runway maintenance and the modernization of navigation and security systems.

The company’s portfolio comprises 12 airports across Mexico’s Pacific and western regions, including major hubs such as Guadalajara, Tijuana, Los Cabos, Puerto Vallarta and Mazatlán, as well as regional facilities in Aguascalientes, Morelia and La Paz.

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