Grupo Aeroportuario Del Pacifico Q2 Earnings Call Highlights

Key Points

• Grupo Aeroportuario Del Pacifico reported stronger Q2 2026 profitability even as traffic fell, with passenger volume down 5.6% but revenue excluding construction up 4.9% and EBITDA up 8.4% to MXN 6 billion. Management said tariff increases, directly operated commercial businesses and the initial consolidation of Cross Border Xpress helped offset weaker airport traffic.
• Non-aeronautical revenue was the standout driver, rising 23.9% as GAP’s commercial businesses and CBX scaled up. Growth was especially strong in cargo, advertising, hotel operations, convenience stores and parking, showing the company can still grow earnings despite softer passenger trends.
• GAP updated its 2026 outlook to reflect continued traffic pressure, now forecasting passenger volume from a 3% decline to flat growth and EBITDA growth of 10% to 12%. The company also said it expects two dividend distributions this year and is progressing on its FIBRA GAP approval process.

Grupo Aeroportuario Del Pacifico NYSE: PAC said second-quarter 2026 earnings improved despite weaker passenger traffic, as tariff adjustments, directly operated commercial businesses and the initial consolidation of Cross Border Xpress helped offset declines across parts of its airport network.

Chief Executive Officer Raul Revuelta said total passenger traffic across GAP’s 14 airports fell 5.6% from the second quarter of 2025. Even so, revenue excluding construction services rose 4.9%, EBITDA increased 8.4% to MXN 6 billion, and EBITDA margin expanded 230 basis points to 69.3%.

“While we are not satisfied with the current traffic performance, this quarter demonstrates that GAP is increasingly capable of protecting earnings and generating growth through multiple complementary revenue streams,” Revuelta said.

Traffic Pressured by Jamaica, Puerto Vallarta and Airfare Trends

Revuelta attributed the passenger decline to several factors in both Mexico and Jamaica. In Jamaica, he said the company continues to feel the impact of Hurricane Melissa, with hotel capacity along the main tourist corridor still below pre-storm levels. He said hotel reopenings point to an extended recovery through the second half of the year.

In Mexico, Revuelta said airlines managed capacity in response to economic conditions, while rising jet fuel costs pressured airfares. He also cited security concerns affecting international leisure demand for certain beach destinations, including Puerto Vallarta, where international passenger traffic fell 27% during the quarter. GAP is working with airlines and regional tourism stakeholders to rebuild connectivity and travel confidence, he said.

Guadalajara was an exception during the quarter. The city hosted four of five FIFA World Cup matches in June, and Revuelta said Guadalajara Airport successfully handled additional charter flights, national teams, delegations and fans while maintaining normal operations. Traffic at the airport rose 6%, though he said that was partly offset by temporary softness at other GAP airports during the tournament.

Commercial Businesses Drive Non-Aeronautical Growth

Aeronautical revenue declined 3.2%, primarily because of lower passenger traffic in Mexico and Jamaica and a 10.9% appreciation of the Mexican peso, which negatively affected the translation of U.S. dollar revenue and international passenger charges. Revuelta said the decline was partly offset by the gradual implementation of maximum tariffs approved for the 2025-2029 regulatory period in Mexico.

Non-aeronautical revenue rose 23.9%, helped by growth in businesses operated directly by GAP and the consolidation of Cross Border Xpress, or CBX, beginning May 1. Excluding CBX, directly operated business lines increased 17% despite lower passenger traffic.

• Cargo and bonded warehouse operations grew 22%.
• Advertising increased 58%.
• Hotel operations rose 27%.
• Convenience stores grew 11%.
• Parking increased 9%.

Revuelta said the results show GAP’s commercial strategy “does not solely depend on passengers volume.” He said duty-free and VIP lounges, which are more exposed to international leisure traffic and foreign exchange, remained under pressure but should improve as international traffic recovers.

CBX generated MXN 168 million in revenue during May and June, with more than 626,000 passengers using the facility in both directions. Revuelta said that represented average revenue of $42.8 per passenger, in line with company expectations. He said CBX traffic remained below the prior year but that pricing and the commercial model were resilient.

Guidance Updated for 2026

GAP updated its annual outlook to reflect the CBX consolidation, internalization of technical assistance services, current traffic trends and investment progress. The company now expects passenger traffic to range from a 3% decline to flat growth for 2026. Revuelta said the forecast assumes gradual improvement in the second half but does not assume all airports return to growth at the same time or that Puerto Vallarta and Montego Bay fully recover this year.

The company expects aeronautical revenue to increase 1% to 4%, supported by approved tariffs in Mexico. Non-aeronautical revenue is expected to grow 21% to 24%, driven by GAP-operated businesses and CBX. EBITDA is expected to rise 10% to 12%, with an EBITDA margin of about 67%, plus or minus one percentage point. Revuelta said CapEx is expected to be around MXN 4 billion.

In response to analyst questions, Revuelta said June traffic was affected by higher airfares during the World Cup and by substitution of typical business and leisure travelers with tournament-related passengers. He said some domestic leisure demand appeared to shift into July, and additional seats and route openings should support the second half.

Management Addresses Tariffs, FIBRA and 2027 Outlook

Asked about tariff compliance, Revuelta said GAP reached 90% fulfillment of the maximum tariff in the first six months and expects to be around 95% by year-end. He said tariffs changed again on July 1 at Los Cabos and Puerto Vallarta, with domestic passenger charges increasing an additional 7%.

Revuelta said it is still early to provide a 2027 traffic growth range. He cited oil prices and the war in Iran as factors that could affect airline costs and capacity, as well as uncertainty around the proposed Viva and Volaris merger. Still, he said GAP expects growth in coming years and noted that Jamaica hotel capacity is trending toward normalization by the end of 2026.

Chief Financial Officer Saul Villarreal said the company is continuing the approval process for FIBRA GAP, a vehicle intended to subscribe a minority equity interest in the 12 Mexican airport concession areas. Villarreal said the structure is expected to be tax transparent at the Mexican airport level, but GAP would continue paying taxes as a regular company. He said management does not expect a permanent change in GAP’s effective tax rate, though there could be a temporary decrease during 2026 and 2027 due to the tax shield of interest.

Villarreal also said GAP expects to make two dividend distributions this year, with one potentially in the current quarter and another in the final quarter. The shareholders meeting approved a distribution of MXN 0.2080 per ordinary share, he said.

Asked whether GAP would offer broad concessions or discounts to airlines to support traffic, Revuelta said the company is not considering general discounts. He said GAP may provide specific support on a case-by-case basis when routes face low load factors or when airport connectivity is at risk.

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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