BMV: Airport Groups Among Best PerformersBy Cinthya Alaniz Salazar | Fri, 08/06/2021 - 12:00
Renewed international traffic from the US and Canada has boosted international traffic, generating important synergies for Grupo Aeroportuario Centro Norte (OMA), Grupo Aeroportuario del Sureste (ASUR) and Grupo Aeroportuario del Pacífico (GAP), making them some of the best performers on the Mexican stock exchange (BMV) during the second quarter. Other top five performers included Grupo Carso and Promotora y Operadora de Infraestructura (PINFRA).
OMA reported the highest growth in operating cash as its EBITDA increased 52 times, followed by ASUR with a 49-fold growth and finally, GAP exceeded its 2020 performance by 20 times. Other top performers also reported robust growth, Grupo Carso a whopping 249.8 percent growth and PINFRA jumping by 116.3 percent.
Collectively, these companies revealed income and operating cash flow growth between 12.8 and 32.3 percent and quadrupled their net profits. For the airlines, these dramatic operating results can be explained in comparison to the low base they saw during the months of April, May and June of 2020, when quarantine measures were at their strictest globally.
“The basis for comparison is easy and this helps a lot in terms of growth (…) so far in general it was a good reporting season, companies have shown some resilience to a difficult environment, as many of them benefited from the recovery North America,” commented Carlos González, Director of Analysis and Stock Market Strategy at Monex Brokerage House.
GAP reported a 37.8 percent increase in passenger traffic, which generated the company a 229.7 percent increase in total revenue when compared to 2020, according to its 1H2021 report. Although this is still 23.4 percent below its 2019 report, it is progress in an economic sector that suffered some of the heaviest losses from the COVID-19 pandemic.
Airport groups are invaluable to the Mexican economy in light of the significant economic revenue generated by the tourism sector. If Mexico intends to reach 6.5 percent GDP growth by the end of the year, it must continue to ramp up vaccination efforts to avoid another border closing, improve its US Federal Aviation Administration (FAA) rating and consider providing a lifeline to a sector that was left to fend for itself.