Grupo Aeroportuario del Sureste NYSE: ASR said second-quarter passenger traffic declined as softer demand in Mexico and Puerto Rico offset continued growth in Colombia, while the airport operator advanced expansion projects, its proposed acquisition of Motiva’s airport portfolio and a plan to internalize technical-assistance services.
Total passenger traffic fell 2.7% year over year to approximately 17 million passengers. Mexico traffic declined 5%, led by continued weakness at Cancun, while Puerto Rico traffic decreased 3.5%. Colombia traffic rose 3.6%, supported by demand and improved connectivity.
Chief Executive Officer Adolfo Castro said Cancun’s international traffic remained under pressure, particularly among U.S. travelers. He cited airline capacity constraints, Spirit Airlines’ bankruptcy, higher airfares associated in part with elevated jet fuel prices, and heavy sargassum conditions as factors affecting demand. Passenger volumes to and from the U.S., Europe, South America and Mexico declined 11.7%, 11.8%, 6.5% and 1.9%, respectively, while Canadian traffic increased 10.5%.
“The summer is lost,” Castro said in response to an analyst question on Cancun traffic, adding that the company expects conditions to improve following the summer season. Based on airline-published seat data, ASUR sees increased offered seats for November and December compared with the prior year.
Revenue Stable as Commercial Business Expands
Excluding construction revenue and costs, quarterly revenue was broadly stable at MXN 7.4 billion. Non-aeronautical revenue increased nearly 10%, aided by MXN 444 million from ASUR’s U.S. airport commercial operations and 30% growth in Colombia. Aeronautical revenue declined by a mid-single-digit percentage, reflecting softer traffic in Mexico and Puerto Rico as well as the impact of a stronger Mexican peso on international operations and local operations with a U.S. dollar component.
Commercial revenue per passenger increased nearly 13% to MXN 153. In Mexico, commercial revenue per passenger declined by a single-digit percentage to MXN 145.7, while Puerto Rico and Colombia posted low- and high-single-digit increases, respectively.
The company added 40 commercial spaces over the past 12 months, including 29 in Colombia, eight in Puerto Rico and three in Mexico. During the quarter, ASUR completed a $125 million commercial transformation of JFK Terminal 8, opening more than 60 dining, retail, duty-free and experiential concepts.
Consolidated EBITDA rose nearly 9% to MXN 4.6 billion. EBITDA declined 9% in Mexico and 17% in Puerto Rico, while it increased 1% in Colombia. ASUR’s U.S. airports contributed MXN 20 million in EBITDA, which management said does not yet reflect the platform’s earnings potential. The adjusted EBITDA margin declined 560 basis points to 62%, due to lower revenue in Mexico and Puerto Rico and the consolidation of the lower-margin U.S. commercial business.
Net majority income increased 7% to MXN 2.3 billion. Castro said lower foreign-exchange losses in Mexico and lower income-tax expenses in Mexico and Colombia helped offset the benefit related to amortization of the fair-value adjustment on the Colombian acquisition loan following its repayment.
Costs, Tariffs and Cancun Investment Program
Management said certain costs during the quarter were one-time expenses connected to the Motiva transaction, U.S. operations and legal work related to the proposed internalization project. Castro said those expenses were not significant relative to the revenue impact from lower passenger traffic, including a loss of roughly 500,000 passengers at Cancun and 135,000 in Puerto Rico.
Mexico administrative expenses were also affected by higher minimum wages and a 39% increase in medical insurance costs following a Mexican tax reform, Castro said. He characterized the higher insurance expense as recurring rather than a one-time item.
ASUR said changing passenger mix, including lower U.S. traffic, put pressure on its maximum tariff. The company nevertheless expects to achieve approximately 99% maximum-tariff compliance for the full year.
Capital expenditures increased to MXN 2 billion during the quarter, primarily in Mexico. At Cancun, ASUR expects its new Terminal 1 to open in the fourth quarter. The facility is intended to help rebalance passenger flows, including moving most South American operations from Terminal 2, easing pressure on that terminal and creating additional commercial capacity.
The company is also executing the second phase of Terminal 4’s expansion at Cancun, including four new boarding gates, a connecting taxiway and related airside and roadway infrastructure. The project is expected to be fully operational by the end of 2028.
Motiva Deal and U.S. Growth Plans
ASUR said it is progressing toward completing its acquisition of Motiva during the second half of 2026, subject to remaining regulatory approvals and customary closing conditions. Castro said Brazil is the region taking longer in the approval process and that the company is now targeting completion in the third quarter.
The transaction would add 20 airports across Brazil, Ecuador, Costa Rica and Curaçao, including ASUR’s entry into Brazil. The core portfolio handles approximately 45 million passengers annually. Castro said ASUR does not currently expect significant synergies from the deal and is not considering a partial sale of the acquired assets.
ASUR ended the quarter with nearly MXN 12 billion in cash and cash equivalents and net debt equal to 0.9 times last-12-month EBITDA. The company said its balance sheet provides flexibility to fund capital commitments, complete the Motiva transaction and pursue other projects.
In the U.S., commercial development at JFK’s New Terminal 1 is continuing ahead of an expected first-quarter 2027 opening, after an originally anticipated July 2026 opening. Castro said the U.S. operation’s current EBITDA margin is about 9% and should improve, though it is not expected to reach the margins generated in Mexico. ASUR also continues to develop commercial space at LAX ahead of the 2027 Super Bowl and the 2028 Olympic and Paralympic Games.
Shareholder Proposals
ASUR will ask shareholders at an Aug. 20 meeting to approve the internalization of special technical-assistance and technology-transfer services currently provided by strategic partner ITA. The proposed merger would result in the issuance of approximately 7.3 million net new ASUR shares to ITA shareholders, equal to about 2.4% of current shares outstanding.
ASUR recognized approximately MXN 401 million in technical-assistance fees during 2025. If approved, the company would assume the related operating costs, eliminate the recurring external fee and retain future economic benefits from those activities internally.
The board also proposed two extraordinary cash dividends of MXN 10 per share, with payments proposed for Nov. 24 and Dec. 15. Castro said first-half operating cash flow increased 21% year over year to MXN 7.3 billion, supporting shareholder returns while preserving flexibility for investments and future growth opportunities.
About Grupo Aeroportuario del Sureste (NYSE:ASR)
Grupo Aeroportuario del Sureste, SAB. de C.V. NYSE: ASR is a leading airport operator in Mexico specializing in the development, operation and management of airports under long-term concession agreements. The company’s core business activities include the operation of passenger and cargo terminals, the administration of retail and service concessions, the provision of parking and ground-support services, and the implementation of security and maintenance programs.
ASR holds concession rights for nine airports across southeastern Mexico, including premier tourism hubs such as Cancún, Cozumel and Huatulco, as well as regional facilities in Mérida, Oaxaca, Veracruz and Minatitlán.
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