Grupo Aeroportuario Del Pacifico, S.A. de C.V. (NYSE:PAC) Q1 2019 Earnings Conference Call Transcript

May 15, 2019 • 08:30 am ET


Grupo Aeroportuario Del Pacifico, S.A. de C.V. (NYSE:PAC) Q1 2019 Earnings Conference Call Transcript


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Good morning, and welcome to GAP's First Quarter 2019 Conference Call. All lines have been placed on mute to prevent any background noise. After the presentation, we will open the floor for questions, and at that time instructions will be given, if you would like to ask a question.

It is now my pleasure to turn the call over to Maria Barona of i-advize Corporate Communications. Please go ahead.

Maria Barona-Squilanti

Thank you and welcome to Grupo Aeroportuario del Pacifico's First Quarter 2019 Conference Call. Today from the Company, we have Mr. Raul Revuelta, GAP's Chief Executive Officer and Mr. Saul Villarreal, Chief Financial Officer.

Please be advised that forward-looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the Company's future performance or financial results. As such, statements made are based on several assumptions and factors that could change causing actual (technical difficulty) to differ from current expectations. For a complete note on forward-looking statements, please refer to the quarterly report issued.

At this time, I'd like to turn the call over to Mr. Revuelta for his opening remarks. Please go ahead, sir.

Raul Revuelta Musalem

Thank you, Maria. Good morning and thank you all for joining us today. As always, we appreciate your interest. Today, I am going to focus on traffic evolution, our airport performance and the various airport projects underway, up for the quarterly report issued last week.

In terms of traffic and operation, during the first quarter of 2019, GAP transport over 11.9 million passengers throughout our 13 airports. This amount represents a 5.2% increase compared to the first quarter of 2018. Most of this increase was driven by the growth of -- at our top airports; Tijuana, Montego Bay, Guanajuato, Guadalajara, Puerto Vallarta, Los Cabos. Domestic traffic rose by 4%, while international traffic rose by 7%. It is important to mention that these figures are just below our 2019 traffic forecast, positioning us solidly for reaching our guidance numbers for the year.

Regarding network expansion, there were 16 routes opening during the quarter; nine of them domestic and seven international. Montego Bay and Hermosillo led with four opening each; Puerto Vallarta welcomed a new airline to its routes, the Swoop Airlines, which in general, began flights from Hamilton and Abbotsford. Volaris opened eight new routes during the first quarter from Guadalajara, Hermosillo, Tijuana and Mexicali. Mexicalli announced 10 upcoming flights (ph) for the next few months.

In terms of individual airports, let me briefly review each one. First, Tijuana was our main traffic generator in the quarter. The CBX terminal continues to benefit travelers from various regions with a growth of 9.5% in terms of total passengers traffic. As you know, the Cross Border Xpress grows users by offering quick and convenient access to Southern California for travels. Most of the 640,000 users of this terminal we will acquire represents 32% of Tijuana total passengers. This was an increase of 27% when compared to the same period of 2018. Therefore, maintains