For the airport groups, the recovery did not come in 2021 as far as passengers are concerned, but when it comes to their income, the story is different. Commercial revenues and the implementation of new cost structures boosted the results of airport operators, particularly in airports in beach destinations such as Cancun and Los Cabos.
Asur, GAP and OMA –the three airport groups in the country, which together operate 34 of the main airports, such as Cancún, Los Cabos and Monterrey, among others– showed growth in their revenues above 2019, and even operating profit of most airports exceeded pre-pandemic levels.
GAP -which operates the airports of Guadalajara, Tijuana and Los Cabos- registered in 2021 revenues of more than 19,000 million pesos (mp), which represented an increase of 17.2% compared to 2019, being the airport group that grew the most during the year past. The company was followed by Asur, whose total income increased 11.7% in the same period, and OMA, which despite maintaining a drop of more than 22% in its passenger traffic, managed to increase its sales by 2.3%.
For Alejandra Marcos, Intercam’s director of analysis, this increase has to do with an application of higher rates –which airports charge for different airport services–, together with other measures and investment plans.
“The pandemic gave the opportunity to slim down its cost structure as much as possible, and that is why we also see expanding margins,” explains the specialist. “Yes, we are seeing how in general they reach quite enviable margin levels.”
In this regard, Julián Fernández, an analyst at Bursamérica, considered that part of this increase was due to a rise in local rents –which make up the non-aeronautical or commercial income category– due to inflation, which has increased the costs of most of the companies.
“During the pandemic there were corrections to the contracts, because [businesses] had to continue paying rent, but they were not used due to the closure,” he explains. “There were negotiations with the airport groups, and now, as they open more operations, they are renegotiating again.”
An additional element that would have boosted revenue is the implementation of International Financial Reporting Standards (or IFRS) where airports recorded the investments they made in accordance with their master development plans. “This has nothing to do with cash flow directly, but it does help mask revenue growth,” Marcos said.
Most profitable airports
When looking at the financial results by airport, in destinations such as Cancun and Los Cabos –among other vacation destinations– the airport groups saw the greatest increases in revenues and profits.
In terms of revenue, the airports of Mérida (141.7%), Ciudad Juárez (72%) and Cancún (57.8%) were the ones that grew the most in the fourth quarter of 2021 compared to the same period of 2019, while in operating profit, Los Cabos (69%), Chihuahua (65.7%) and Cancún (45.1%) had the highest increases.
The case of Cancun stands out as it is the largest airport in the country after Mexico City, and coincides with a growth trend in the arrival of foreign tourists, mainly Americans.
For the specialists, these results coincide with a high preference for beach and leisure destinations, a case contrary to that of urban destinations, which despite recovering passengers, still have recovery forecasts that could extend until 2023.
“As part of the new normality , many companies have become accustomed to considering meetings through different technological platforms, and that generates less traffic for business trips, for example,” says Fernández.
For this year, expectations remain good, although the outlook is not without challenges. According to the Airports Council International (ACI) organization, for this year the airport industry expected to reach revenues of more than 175,000 million dollars (mdd) before the pandemic; however, now the expectation is to record just over 60,000 million dollars – 34.6% of what was expected – and close the year at 72.6% of pre-pandemic income. Hence, some Mexican markets seem to be the exception.
“In passenger traffic, GAP and Asur are going to recover the travelers prior to the pandemic. I hope that OMA will not see growth in revenues, margins and operating profits until the beginning of next year”, considers the Intercam specialist. “Everything looks like it’s going to be a pretty good year and one of growth.”
