MEXICO. Grupo Aeroportuario del Pacífico (GAP), operator of 12 Mexican airports and majority shareholder at Montego Bay Jamaica Sangster International Airport, increased total revenues by 8% to Ps3,407.7 million (US$179.1 million) in the quarter to 31 March 2019, against the same period last year. There was a strong performance from non-aeronautical revenues, bolstered by new commercial spaces at three of the airports under GAP’s control.

The company’s operating income for the first quarter increased by Ps. 233.1 million (US$12.3 million), or 12.6%. Meanwhile, EBITDA increased by Ps270.3 million (US$14.2 million), or 12.1%.

Net income and comprehensive income increased by Ps205.8 million (US$10.8 million) or 18.7%. GAP’s cost of services in the quarter increased by Ps78.0 million (US$4.1 million), or 15.1%, when measured against the corresponding period last year.

Aeronautical services revenues for the quarter increased by 11.5% to Ps2,360.5 million (US$124.2 million), while non-aeronautical services revenues increased by 20.3% to Ps749.1 million (US$ 39.4 million). However, revenues from improvements to concession assets decreased by -50.9% to Ps146.5 million (US$7.7 million) against Q1 2018.

Guadalajara International Airport is the largest of the airports operated by GAP in terms of passenger numbers.

During the first quarter, total passengers in GAP’s 13 airports increased by 588,600 passengers or 5.2% to a total of 119.05 million compared to the previous year’s Q1. Broken down over the same period, domestic passenger traffic increased by 233,600 passengers, while international passenger traffic increased by 354,900 passengers.

Consolidated results for Q1 2019. (click to enlarge)

Non-aeronautical revenue analysis

Analysing non-aeronautical revenues, Mexican airports contributed an increase of Ps131.5 million (US$6.9 million), or 21.3%, compared to Q1 2018. GAP said this was driven by an increase of Ps80.9 million (US$4.3 million) in revenues from businesses operated by third parties.

The company said this was mainly due to the opening of new commercial spaces, mainly at Guanajuato, Guadalajara and Tijuana airports, resulting in a combined increase of Ps71.6 million (US$3.8 million) in revenues from car rentals, food & beverage operations and retail/duty free stores.

Meanwhile, revenues in dollars from VIP lounges, timeshares, duty free stores and car rentals rose by a combined 18%. This generated an increase in non-aeronautical services revenues of Ps38.8 million or 21%.

The contribution of businesses operated by third parties in Q1 2019. (click to enlarge)

Revenues from businesses operated directly by GAP increased by 26.1%, mainly driven by an increase in the number of visitors at the VIP lounges, and an increase in car parking and convenience store revenues. EBITDA margin generated by VIP lounges and convenience stores increased from 64.2% in Q1 2018 to 66.1% in this year’s first quarter.

At Montego Bay airport, non-aeronautical revenues in the first quarter increased by Ps20.7 million (US$1 million), or 15.8%, compared to Q1 2018. GAP said this was driven mainly by a 17.2% increase in revenues from retail/duty free stores, leasing of space and food & beverage, as well as the 2.5% of peso depreciation against the US dollar during the quarter.