In This Article:
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Revenue ex-IFRIC12: Decreased 4.2% year over year.
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Revenue per Passenger: Consistent at $19.
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Adjusted EBITDA ex-IFRIC12: $145 million, a 16% year-on-year decline.
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Net Leverage Ratio: 0.9 times at quarter end.
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Total Liquidity Position: $605 million, up 32% compared to year-end 2023.
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Passenger Traffic: Declined 4% year on year, or 1.5% excluding Natal.
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Domestic Passenger Tariffs in Argentina: Increased by 124%, effective November 1.
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Dividend Distribution by AA2000: $80 million approved, with $68 million to CAAP subsidiaries.
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Cargo Volumes: Increased 4.4% year on year.
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Cargo Revenues: Declined 12% year on year.
Release Date: November 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Corporacion America Airports SA (NYSE:CAAP) maintained a strong cash flow and solid balance sheet, with net leverage at record lows, providing financial stability and flexibility for growth opportunities.
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The company received approval for a 124% increase in domestic passenger tariffs in Argentina, effective November 1, which will support local operations.
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International traffic in Argentina showed strong performance, supported by additional routes and flight frequencies.
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Operations in Uruguay, Brazil, and Italy contributed positively, highlighting the resilience of CAAP's diverse geographic portfolio.
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The company secured three new real estate agreements in Brazil, enhancing non-aeronautical revenues and commercial offerings.
Negative Points
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Revenues excluding IFRIC12 decreased by approximately 4% year over year, in line with lower passenger volumes.
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Adjusted EBITDA declined in the mid-teens year over year, primarily due to macroeconomic challenges in Argentina.
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Duty-free sales were lower compared to the previous year, impacted by the disparity between official and parallel exchange rates.
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Total passenger traffic declined by 4% year on year, driven by soft demand for domestic travel in Argentina.
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Cargo revenues declined by 12% year on year, largely due to lower revenues in Argentina.
Q & A Highlights
Q: Can you provide insights on the potential impact if the government decides to close down Aerolineas Argentinas? A: Martin Eurnekian, CEO, explained that Aerolineas Argentinas contributes about 6% of CAAP's revenues and 15% of its operations in Argentina. He highlighted the resilience of the business, citing a past example where a national airline ceased operations, yet the company continued to grow. The situation is complex and politically sensitive, making it difficult to predict exact outcomes.