GAP to Invest Over MX$10 Billion in 2023

Grupo Aeroportuario del Pacífico (GAP) said it will invest MX$10.2 billion (US$510 million) this year in the 12 airports it operates.

GAP forecasts that passenger traffic will increase by 6-8% and total revenues by 12-14% in 2023. The projections for passenger traffic are based on the consolidation of its existing routes, the increase in occupancy factors and the frequency and seating capacity of airlines, the group says.

On the other hand, the increase in revenue is based on the performance of traffic, applicable rates, inflation, the conditions of contracts and commercial agreements in force, as well as the development of other business lines operated directly by GAP. Regarding its EBITDA, the group expects an increase of 12-14%. GAP expects an increase of 12-14% for airport revenues and 13-15% for non-airport revenues.

Higher demand means higher costs, says GAP: “The increase in the cost reflects the operational needs to meet the demand for airport services, the expansion of infrastructure and improvements to the areas of operation, maintenance, security and cleaning.” CAPEX will amount to MX$10.2 billion (US$510 million), corresponding to the investments committed in the airports under the development plan and investments in commercial spaces, parking lots and the hotel and offices within the expansion of Guadalajara airport, the group says.

GAP’s figures are based on its current expectations for the growth of the national and international aviation industry in 2023. The estimates are based on assumptions that the management of the group “considers reasonable,” the company says. Several factors that impact directly on the estimates are beyond the control of the company and are subject to change throughout the year, says GAP.

On Jan. 10, GAP acquired an 18-month credit line of MX$1 billion (US$50 million) with Citibanamex to finance its growth. In November and December 2022, GAP also acquired two MX$1.5 billion (US$79.7 million) credit lines with Scotiabank and Citibanamex, respectively.

GAP operates 12 terminals in Mexico and two in Jamaica. In 1998, GAP obtained the concession to operate 12 airports for 50 years after Airport and Auxiliary Services (ASA) privatized the operation of 35 airports in the country. The privatization created four different airport groups, including GAP, which operates the airports of Guadalajara, Tijuana, Mexicali, Hermosillo, Los Mochis, Aguascalientes, Guanajuato, Morelia, La Paz, Los Cabos, Puerto Vallarta and Manzanillo.