Q1 2025 Grupo Aeroportuario del Pacifico SAB de CV Earnings Call
This is the conference operator, please standby the call will begin shortly once again, please standby the call will begin shortly thank you.
[music].
Speaker Change: Good morning, and welcome to Gap's 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 <unk> Investor Relations team.
Please go ahead.
Speaker Change: Thank you and welcome to the Dupont portfolio and facility costs first quarter 2025 conference call presenting from the company today, We welcome Mr. Walter <unk>, Chief Executive Officer, and Mr. <unk> that would be a fan chief financial officer.
Speaker Change: 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 results to materially differ from the current.
Speaker Change: Expectations for a complete note on forward looking statements. Please refer to the quarterly report issued previously.
Speaker Change: At this point I'd like to turn the call over to Mr. Then it went down for his opening remarks. Please begin sir.
Then: Thank you Mike.
Speaker Change: Good morning, everyone and thank you for joining our first quarter 2025, we sold school.
Speaker Change: Let me start with highlighting our financial performance.
Then: Despite a challenging macroeconomic and drivers of demand environment.
Speaker Change: We delivered a strong first quarter with solid growth across all key financial and operational indicators.
Speaker Change: Total revenue grew by 26% year over year, reaching $8 4 billion pesos, driven by a 29% increase and that would have to confront renews.
Speaker Change: 41, 3% growth Nanogram is good returns there.
Speaker Change: This was due to several positive factors that includes higher passenger traffic the benefit of the new maximum tariff implemented March 1st due to the loss <unk>.
Speaker Change: The peso depreciation of around 30% on incremental revenues from new commercial patients which include the mixed use building that includes the hotel and the consolidation of the cargo facilities, mainly in the wireless carrier.
Speaker Change: On the profitability front.
Speaker Change: Green by 21%, reaching $5 6 billion pesos with an EBITDA margin of 667, 1%.
Gladys: Gladys contracted compared to the first quarter 'twenty full mainly due to recognition in the P&L of increasing the concession fee from five 2% to.
Speaker Change: Two 9% in our Mexican airports.
Speaker Change: All told these changes enacted in January 24.
Speaker Change: It is important to recall that under the new tariff regulation any payment to the government exceeding dose, including last tariff review will be added to the wafer is value for the next maximum tariff regime.
Speaker Change: As such that each of our 4% to vibrant optical revenue paid to the government during fiscal year 2020 was recognized as a target.
Speaker Change: That's it from there.
Speaker Change: Sorry, eight with amortization beginning in January 2025, and continued through the end of the concession fee.
Speaker Change: The related payments were included in the reference value for good got termination of the maximum value of 2025 2029.
Speaker Change: This quarter marks the first time, the full 9% concession fee has been recognized in the P&L.
Speaker Change: It's also important to highlight.
Speaker Change: Okay.
Speaker Change: Got the entry of the new commercial team that's influenced our resolve the conflict is lagging the duration on the EBITDA margins. There recently that while these business lines significantly contribute to the top line that there'd be that in nominal terms.
Speaker Change: <unk> margins are lower than those of the air preparations for example, J WPC and the new hotel operators.
Speaker Change: That machine of around 50%, which is below our historical EBITDA margin profile.
Speaker Change: As we continue diversifying our revenue stream.
Speaker Change: We remain focused on balancing growth with profitability across all segments.
Speaker Change: From a financial standpoint, the company remains strong as.
Speaker Change: As of March 31, we had $16 2 billion in cash following a successful 6 billion peso bond issue.
Speaker Change: We also are represent key credit lines in Mexico and Jamaica.
Speaker Change: Financial flexibility to support upcoming investment.
Speaker Change: Following these figures we maintained healthy level yesterday about reaching a net debt to EBITDA ratio of one seven times for the trailing.
Speaker Change: Trailing 12 months, thus complaint with all our debt to colleagues.
Speaker Change: Moving on to the Capex required GAAP execute execute approximately $1 7 billion pesos in capital expenditures.
Speaker Change: Just as a reminder for the full year. The plan is to deploy about 13 billion pesos.
Speaker Change: Based on age.
Speaker Change: And committed investment across our Mexican airports under the Master development program and even though you summed it up for you. We have continued the construction of the new portal, but you have got there.
Speaker Change: Which alone represent about seven.
Speaker Change: One 7 billion pesos close.
Speaker Change: 145.
Speaker Change: 5 billion.
Speaker Change: Our investment in our Jamaica, and airports and about 1 billion pesos dedicated commercial development.
Speaker Change: These investments are central to our strategy of enhancing and expanding our commercial footprint and strengthen the overall puffiness experience, although although with khaki bureaus or supporting our long term growth.
Speaker Change: Let's now turn to the macroeconomics environment.
Speaker Change: We don't believe that for GAAP that we feel fine jewelry recession migration directive and the possible tariff impact will remain key concerns.
Speaker Change: We are also.
Speaker Change: Closely monitoring the potential effect of passengers truck.
Speaker Change: In the discretionary a reinsurer said.
Speaker Change: I will keep the market posted going forward.
Speaker Change: It is important to note that the Holy week fell in April this year compared to March.
Speaker Change: Last year. So these months do not compare compared faculty with the last year.
Speaker Change: We will need a bit more time to fully offset the underlying trend for the leisure destination for us.
Speaker Change: That's a bit up appears consistent with a broader economic slowdown in the United States, which quickly made 90 phase growth reduced ratio try though.
Speaker Change: Yeah.
There is nothing this is nothing that we have not seen before and we are actively monitoring. These changes. So that we may have just adjust our assumptions accordingly.
Speaker Change: But interestingly, we have looked at Canadian travelers and their troubled tenants. Many Canadians are seeking new places to travel instead of the U S, which could represent an opportunity to attract additional flights from Canada to our workforce.
Speaker Change: I mentioned this because we believe that he is rob shows represent a strategic opportunity for Mexico.
Speaker Change: As Canadian travelers distance themselves from did USF kinases listing niches, such as Florida, and California for example.
Speaker Change: My language ready rig their vacation plans to award Mexican beaches, and the Caribbean, thereby the airlines will be inclined to rebalance their network.
Speaker Change: Most likely gaps measure airports.
Speaker Change: Scaffolds among people, we could be well positioned to benefit from this spring.
Speaker Change: The finding productivity start.
Speaker Change: Is that an opportunity that we're focused on this year GAAP strands to announce 50, new domestic routes and 19 into retro erodes further strengthening our network and these are a key critical advantage in today's landscape.
Speaker Change: Before I conclude I'd like to highlight that our ordinary shareholders' meeting took place last week during which our dividend payment of $16 84 pesos per outstanding shares was approved.
Speaker Change: It will be easy to look over the course of the year, reflecting our continued commitment to deliver value to our shareholders.
Speaker Change: Thank you and we are now happy to operator for questions.
Speaker Change: At this time, we will open the question and answer session.
Speaker Change: You would like to ask a question. Please press star and one on your telephone keypad.
Speaker Change: And you will be placed in the queue in the order received.
Speaker Change: You may remove yourself from the queue at any time by pricing pound and one.
Speaker Change: Once again to ask a question please press star and one on your phone.
Stephen Trent: Our first question comes from Stephen Trent from Citi. Please go ahead Steven.
Speaker Change: Yes.
Speaker Change: Gentlemen, and thanks very much for the time.
Speaker Change: I appreciate your comments about.
Speaker Change: You know potential.
Speaker Change: Canadian travel slow getting rerouted to pass.
Speaker Change: Potentially the Mexican beaches.
Speaker Change: Have you noticed anything.
Speaker Change: From the other regions are having.
Speaker Change: Maybe any observations that carriers in other regions.
Speaker Change: Also be doing the same thing reroute into Mexico versus you know Disney world or something like that.
Ed: Thank you Steve This is Ed.
Speaker Change: I mean, the first part that were noted in the case of the Canadians.
Ed: First we see.
Ed: An important decrease in seats from <unk> from <unk> from Canadian market to market.
Ed: And we are beginning to see some.
Speaker Change: On the issue of ambition.
Ed: <unk>.
Ed: The slots.
Ed: Are asking from them for mainly mainly Canadian markets for the next winter.
Ed: <unk> specific T cells.
Ed: Well halfway and thanks for the summer so.
Ed: We are just seeing for the moment of change in the trend in some way for the Canadian market.
Ed: For the U S market.
Ed: I think that it's still really early to think is it.
Ed: All of the economic environment.
Ed: Some weight change the rest of the routes from from the U S to Mexico or you, Mike, but what we are seeing right. Now is just some kind of a slight change an on trend of Canadian Canadian markets.
Ed: Okay.
Speaker Change: Oh, great. Thank you Earl.
Ed: Excuse me I'm sorry.
Ed: Just one quick follow up if I may.
Ed: Why do we think about the.
Ed: Limitations on traffic.
Ed: Traffic movements that have been made so far those airport.
Ed: And then the government's push.
Ed: To move some traffic to Philippe Angeles Airport.
Speaker Change: Are there any expectations that we.
Ed: We could see.
Ed: Some adjustments in one or both assets.
Ed: In a positive manner that could affect.
Ed: The level of seed that gap receives from either of those installations.
Ed: Okay.
Ed: It doesn't mean that I mean I.
Ed: Some kind of news some kind of discussions.
Ed: Public discussion about the possible increase are the slots of Mexico CDN in some way going back to the position that they're perhaps I mean, three years ago, the number of gloves for our operations.
Ed: Per hour.
Ed: For the moment, we have not seen any kind of I mean, a fee shell I will say another announcement about that policy will change.
Ed: But we are seeing is.
Ed: Some specific company effects vivo. The rules for instance are reacting I will say more aggressively going to Santa Lucia and other offshore for for this evening.
Ed: I mean, I didn't have to be us.
Ed: Hum.
Ed: No reports will always need to think that we operate as a net so all kind of efficiency.
Ed: Is all the efficiencies and any airport is important for today I would say for the whole nib.
Ed: On the connectivity for the for all the airport. So I mean, we are just really.
Ed: Really closely watching is there some kind of changes.
Ed: On the policies.
Ed: Policies in terms of its lots of Mexico City Airport.
Ed: But we are I will say theater really closely also the increase of woods from Santa Lucia Airport, mainly from <unk> to other airports in Mexico.
Ed: Okay very helpful or a rule thank you for that.
Mendez: And our next question comes from can you hear me Mendez from Jpmorgan. Please go ahead.
Mendez: Hey, good morning ROE. So thanks for taking my question two points. The first one on the guidance is given though the escalations on the tariff discussions risks of a U S recession as you point out throw.
Speaker Change: How comfortable are you guys with the full year guidance, we saw the largest reducing its guidance for the year in the beginning of the week. So how this might impact our guest traffic going forward.
Mendez: And the second one is on the Turks and Caicos, a potential new beat.
Mendez: I recall on the last conference call you mentioned that something could come up in the near term just wondering if there's any news on that front. Thank you.
Mendez: Thank you.
Mendez: The first time for the first part I mean in terms of our traffic guidance, we still feel comfortable about.
Mendez: The number that we felt a bit of debate.
Mendez: We always we prepare our guidance on <unk>.
Mendez: And then are all the all the numbers the figures that are continuing on the.
Mendez: Guidance.
Mendez: We would start already.
Mendez: So obviously David for doing for New Orleans for all the years so for the moment at least we're not seen.
Mendez: And embarked on I will show a decrease in terms of seats.
Mendez: The low factors still being really strong and when we talk about the domestic market the load factor stimulus.
Mendez: Really high and historical high.
Mendez: See the lack of seats for the for the problem on the on the end game.
Mendez: The Arab.
Mendez: Ara boats.
Mendez: So my point of view is still be on the market. Some kind of did that demand on the domestic market that has not been completely I would say I can't for the lack of sick. So at least for the moment, we are not seeing.
Mendez: A completely.
Mendez: James.
Mendez: The trend of recovery that our effort but.
Speaker Change: Although I will say that there is a lot of tariff moving right now I mean, all the the placebo diaries are changing day by day.
Mendez: I think that it's it's.
Mendez: So really tough to trying to understand how good of ebay.
Mendez: The final result in terms of the macroeconomics of these of these changes, but at least for the moment.
Mendez: We are not seeing any gain any kind of change.
Speaker Change: Our grandson.
Mendez: <unk>.
Mendez: We continue comfortable about our guidance.
Mendez: Okay.
Mendez: Yes.
Mendez: I'm the CFO.
Mendez: Yes, I guess for Tony.
Mendez: So it was really proud to work with third but we're receiver.
Mendez: No finish a lot.
Speaker Change: Leather for them from the government of Turks and Caicos, They say that during may.
Mendez: <unk> made the fading out.
Mendez: The termination about this.
Mendez: Really impressive so we are just waiting for the for.
Mendez: For the information.
Mendez: Okay.
Very clear thank you Hal.
Speaker Change: And our next question comes from Fernanda Recchia from BTG. Please go ahead.
Mendez: Yeah.
Mendez: Yeah.
Mendez: Hey, so how are two questions here from our side as well so the first on the commercial revenues.
Mendez: Looking at Q1 figures.
Mendez: Golf was very strong plus 5% of course, there is the gwg's. He in fact in Q1, but just wondering what level of commercial growth.
Mendez: For 2020 can we expect.
Mendez: We're doing that for 2025, we already have in your guidance.
Mendez: And satcom on kept on location you provide an update on two crop cycles, but what I am wondering if.
Mendez: Yeah. So looking for all of their powerful franchise TCR or are there opportunities in cargo TV as well such as the W. E T.
Mendez: That's it thank you.
Fernando Road: Thank you Fernando Road I mean, yes.
Fernando Road: You say this first quarter was pretty strong I mean more than 40% that conclusion narrow not because revenues for sure a big barge wests ultra related with efficacy similar J W.
Fernando Road: But even with that I would say that the injury.
Fernando Road: Lisa.
Speaker Change: No no, let's grow revenues less above the 15% that we are not considering jws team that is really a robust result.
Speaker Change: Put it in.
Fernando Road: In the context of a fab.
Fernando Road: <unk> increased seven 4% of our passengers. So I mean, we are really happy.
Fernando Road: And for sure we have the effect of some new commercial businesses that opened during the last year for instance, the hotel as you remember the beginning operations on April 20.
Fernando Road: So this first quarter we've had.
Fernando Road: Let me put it this way I series comp book.
Fernando Road: In general terms, we still feel comfortable with Iowa, Northern Africa revenue guidance and talking about 2026.
Fernando Road: I would said that.
Fernando Road: All the different.
Fernando Road: Tariff increases on capacity reaffirmed our terminal buildings that we built.
Fernando Road: Doing the Master plan of 2000, 22025 will be fully operating talked here. So.
Fernando Road: I will say that Brexit pregnancies whenever you do that first.
Fernando Road: Is that all the difference.
Fernando Road: Veeva says we'll be fully operated.
Fernando Road: So we are expecting I would say, it's something that we for sure are close to the double digit well going to be more I would say a normal lifetime for sure. It will depend on how could happen with the profit.
Fernando Road: In the coming years, but.
Fernando Road: I mean, I will conclude that for the case of the <unk>.
Fernando Road: <unk> revenues.
Fernando Road: We are still feeling really.
Fernando Road: Positive because.
Fernando Road: In all the different changes in the layout all the hard work that our commercial.
Fernando Road: Area four develop new experience for our passengers are doing.
Fernando Road: Pretty good so we're still comfortable that our business model would welcome I'm coming gears and whether it'd be really a rescue lens.
Fernando Road: Even with the placebo downturn on the economy.
Fernando Road: Most of the capital allocation.
Fernando Road: Yes.
Fernando Road: So well we.
Fernando Road: We will continue looking for opportunities be.
Fernando Road: We are waiting for the final outcome.
Fernando Road: <unk> and calculus therefore.
Fernando Road: And related to CCR is who we.
Speaker Change: I see.
Fernando Road: We are analyzing.
Fernando Road: Ultimately, we haven't decided yet.
Fernando Road: We participate or not.
Fernando Road: As you move forward.
Fernando Road: Forward between countries.
Fernando Road: 2020 airports.
Fernando Road: In the food so.
Fernando Road: Is it.
Fernando Road: But then to dedicate to analyze it.
Fernando Road: We'd be very important in too.
Fernando Road: Decided to participate in that so it's something that we are aware of that but we haven't decided.
Fernando Road: Two to participate.
Fernando Road: Yes.
Fernando Road: I mean, just for remember of all the <unk>.
Fernando Road: Lower.
Speaker Change: The participants on the call one of the key disciplines of gap is the DCP for Josh.
Fernando Road: I created that decisions. So we will continue in that line.
Speaker Change: Like always we will add on.
Speaker Change: Or is the opportunities that make sense.
Speaker Change: Company, but always looking there.
Speaker Change: In the in the correct view of Geos are created.
Speaker Change: Opportunities for our shareholders and just for the case of the cargo acquisitions I mean, the government to see tough really I would say.
Speaker Change: Great.
Speaker Change: <unk> and today, we are working really really hard.
Speaker Change: And to get the best possible business plan for the long term and some other airports from from GAAP.
Speaker Change: Taking like I would say platform of global growth Dubuque, a WPC. So today, we're analyzing inside that company, which will be the next move.
Speaker Change: Our operational scale of operation in other airports.
Speaker Change: Yep.
Speaker Change: Yeah.
Speaker Change: Very clear. Thank you so much for your answers.
John: And our next question comes from John <unk> from Morgan Stanley. Please go ahead.
John: Yes, Hello, Thank you for taking my question.
Speaker Change: Have.
Speaker Change: A question regarding basic.
Speaker Change: Basically also like the capacity you're seeing.
Speaker Change: Specifically the traffic for this year in your guidance.
Speaker Change: So we saw relative to your previous guidance you gave them what has changed is that local.
Speaker Change: Low cost carriers have obviously retrenched a bit of capacity.
Speaker Change: Your numbers like the capacity numbers still look good I think but.
Speaker Change: Any conversations youre, having with foreign airlines that might also reduce capacity down the road or what are you seeing in terms of like the mix going forward.
Speaker Change: I know you already said that you feel comfortable with with the traffic guidance, but just any color on that would be much appreciated. Thank you.
Speaker Change: Thank you guys.
Speaker Change: You said that you know things all the all the they.
Speaker Change: I refer in discussion with their leonhardt.
Speaker Change: In some ways. The same line I mean, the domestic airlines are struggling with the lack of capacity.
Speaker Change: And its problems so.
Speaker Change: While it is 75.
Speaker Change: Problem that in some way still floating in the industry.
Speaker Change: A full day to rational companies I will say the only the only.
Speaker Change: Market, what we are seeing some kind of decrease in capacity and some change on blending our network fees in the case of Montego Bay.
Speaker Change: Specifically American airlines are changing some of the of their goods from terror alert in Miami.
Speaker Change: Some and changed.
Speaker Change: The roots of Miami from American if.
Speaker Change: I will say that is difficult for any airport in the Caribbean because as you know Miami is one of the biggest cost.
Speaker Change: On behalf of disposal for Infinera.
Speaker Change: Scrapping for all the Caribbean, So any change of America Merrill Lynch in that market.
Speaker Change: Difficult and we are seeing with that.
Speaker Change: Important increase in passengers on the first quarter of the year for <unk> minus 8%.
Speaker Change: Bob.
Speaker Change: I would say that is the only.
Speaker Change: I would say.
Speaker Change: Grief that today are in some way showing us the airlines what the one that is happening.
Speaker Change: In mobile.
Speaker Change: In the other hand, we have I would say.
Speaker Change: Interesting all civil or potential routes.
Speaker Change: Negotiation with different comedians airlines.
Speaker Change: So I mean that will lead in the main the main part of our discussions today in some.
Speaker Change: Some I would say a decrease in capacity on <unk> that will still even on deal until the winter.
Speaker Change: And a potential increase in capacity as some differing Canadians company mainly in Cabo.
Speaker Change: But did I get that.
Hi.
Speaker Change: I will say that Darren.
Speaker Change: The most important I would say discussions with it with airlines right now.
Speaker Change: Okay, perfect and just one follow up.
Speaker Change: Regarding your tariff implementation in Mexico does it still.
Speaker Change: Is the schedule that you gave.
Last time is it still valid or not.
Speaker Change: Any change there on on the expected demand.
Speaker Change: Oh, it's at scale.
Speaker Change: In the same way I mean, as always we try to look into the market.
Speaker Change: <unk> perfectly the moment for that change in tariff.
Speaker Change: We just changed the first of March.
Speaker Change: We already get somebody goes to 90% of our fulfillment of the Mexican tariff. So I mean, we assume the same page of Meg.
Speaker Change: Another change.
Speaker Change: Through the end of the year.
Speaker Change: It will be something that we need to to perfectly.
Speaker Change: Okay.
Speaker Change: In our life.
Speaker Change: At the moment.
Speaker Change: Okay sounds good alright, thank you.
Speaker Change: Yeah.
Speaker Change: Our next question comes from Pablo <unk> from Barclays. Please go ahead.
Speaker Change: Hi, good morning.
Speaker Change: On the things.
Speaker Change: Thanks for taking my question just a.
Speaker Change: A little bit of a follow up to <unk> question about the pie just mentioned that you are 90% completion, what are your plans to increase throughout.
Throughout the year I remember that you were expecting to increase.
Speaker Change: I'm a little bit during the summer.
Speaker Change: And also any change when it takes but can you shed some light for modeling purposes.
Speaker Change: What should we expect for clients to evolve this year and next year. Thank you.
Speaker Change: Hi, Pablo.
Speaker Change: Said that for.
Speaker Change: So this year, we don't expect to have another.
Speaker Change: I would say is I'm sure that changes in the target.
Speaker Change: We are expecting to begin the <unk>.
Thanks, Tien tsin, sorry happens mainly.
Speaker Change: Back to happen in the first days.
Speaker Change: January of coming here.
Speaker Change: Atlanta.
Speaker Change: As always we need to perfectly understand the market at the moment.
Speaker Change: No.
Speaker Change: For instance, the exchange rate of inflation.
Speaker Change: It plays a really important role under consumer and update of the of the of the tide. So.
Speaker Change: I will say that we will be ready to make.
Speaker Change: Make a public what would be the change on the tariff at the beginning of the coming year as soon as we have the full information about what's happening with inflation what is the trend of the update of the <unk>.
Speaker Change: Dollar.
Speaker Change: Because all the passenger seat international passengers Mexico here.
Speaker Change: So I mean that.
Speaker Change: At that moment, we would not be ready for.
Speaker Change: The.
Speaker Change: Yeah, absolutely that would be the change I'm, sorry, but yeah pass our press.
<unk> continues to be to have.
Speaker Change: Other change on tariff on people onto the first quarter commentary.
Speaker Change: And just one follow up if I may.
Speaker Change: They started to increase also is a reflection on the inflation and the discounts that you are not offering anymore is that correct.
Speaker Change: Yes, I mean in general tone from your lenders.
Speaker Change: Really in that it is a way for everybody we increased solar where his passing there on <unk>.
Speaker Change: 10%.
Speaker Change: On March 1st when we compare would be would be.
Speaker Change: The ones that we wire apply on December of last year. It was the main the main the main number.
Speaker Change: Okay. Thank you.
Speaker Change: Our next question comes from Pablo <unk> from <unk>. Please go ahead.
Pablo: Hi, good morning.
Speaker Change: I have two questions on profit.
Speaker Change: First one it's on when people will be when do you expect.
Speaker Change: Torn out roaming traffic.
Speaker Change: When people would be.
Speaker Change: Wanted some more long term and are related to the World Cup in 2020 cheeks have you quantified how much impact you grow traffic number seems pretty kinetics.
Pablo: Okay. Thank you Pablo.
Speaker Change: The other part of the K Cup World Cup.
Pablo: And indications for Guadalajara will not have that.
Pablo: Five gains here.
Speaker Change: Theres different forecasting that the FIFA reputation committee has made I would say probably.
Probably.
Speaker Change: Today, it's difficult to understand how big could be if this impact I mean, the number of possible attraction of tourists.
Speaker Change: Could be.
Speaker Change: Going from the 300.
Speaker Change: Two.
On a 600000 I mean it depends so.
Speaker Change: The repetition.
Speaker Change: One of the things that the.
Speaker Change: FIFA community told US is that as soon as we have.
Speaker Change: Yeah.
Speaker Change: The themes that will be based on whether it would be easy to understand what's going on.
Speaker Change: I mean, the possible attraction for the airport will depend.
Speaker Change: One of the things that for instance, we are expecting is that our wind important.
Speaker Change: Use of the <unk> Airport coursing through Cvs from markets Soccer, Microsoft South, California, two two.
Coming to Guadalajara for instance, but at the end of the day one of the things that will give us a more I would say.
Speaker Change: Correct understanding.
Speaker Change: Which could be the potential attraction of additional passengers would be at the moment that we know which teams we're not going to play the games.
Speaker Change: Hi.
Speaker Change: I think thats, a fair part will be sold related to traffic.
Speaker Change: Interpreted with jewelry.
Speaker Change: We've done four C U E.
Speaker Change: Right now.
Speaker Change: Wayne will come back.
Speaker Change: The thing that we can we were being discussed.
Speaker Change: Airlines basically.
Lange: <unk> Lange.
Speaker Change: Jetblue.
Speaker Change: In order to attack.
Speaker Change: More more passengers from the bar of tourists in Jamaica.
Speaker Change: Moving.
Speaker Change:
Speaker Change:
Speaker Change: Business travelers to we can migrate from U S UK and Canada, So we expect to make.
Speaker Change: Make a.
Speaker Change: You can drive more passenger traffic to two module. It is complicated to see right now when it will come back because.
Speaker Change: The Caribbean in general capacity of traffic is moving from the other destinations.
Speaker Change: It says it all turns I would say.
Speaker Change: All the all day.
Speaker Change: Airports some of the different destinations with regard.
Speaker Change: <unk>.
Speaker Change: Our <unk>.
Speaker Change: Having our imports.
Speaker Change: Important decrease of backlog that was mainly from from the U S.
Speaker Change: Top trend happening right now in the Caribbean.
Speaker Change: But for sure I will.
Speaker Change: Say, we still have working really close to airlines.
Speaker Change: Government and Victoria Authority.
Speaker Change: Erica trying to bring back some some of the capacity.
Speaker Change: We can Mike.
Speaker Change: It is important also to remark that we also are working on that on that cost reduction program cost.
Speaker Change: Cost reduction strategy for <unk> to be solely free.
Speaker Change: Yeah.
Speaker Change: One of the characteristic of gap.
Speaker Change: Be prepared to believe affiliates for there or any kind of deeper decrease.
Patrick: I'm Patrick here. So we are also working on.
Speaker Change: Hum.
Speaker Change: Opex.
Speaker Change: Yeah.
Speaker Change: Important plan for for possible reduction.
Speaker Change: Be prepared for.
Speaker Change: EBIT and a possible deeper decrease on our passengers.
Speaker Change: Yeah.
Speaker Change: Perfect that was very clear.
Speaker Change: And our next question comes from Alberto Valerio from UBS. Please go ahead.
Alberto Valério: Alright, good morning, gentlemen.
Speaker Change: One question on my side about the Capex.
Speaker Change: Got my attention that the same level of Celesio I was expecting something higher because the NDP. So do we expect this capex true go high.
Speaker Change: The increase quarter over quarter.
Speaker Change: And how is the labor cost in Mexico had small mentally if you have ever been.
Speaker Change: Hired a.
Speaker Change: Mutual highest.
Speaker Change: The workforce for the India topics. If you could provide any details would be very helpful. Thank you very much.
Speaker Change: Good enough.
Speaker Change: I mean, it's when there's a new master plan at the end of the day.
Speaker Change: All the let me put in good with all the career after essentially what's going to be your plans for the coming years happen.
Speaker Change: Last quarter.
Speaker Change: Last year, so always the first year of Master plan at the beginning of the first quarter to 36 months.
Speaker Change: I will say that we're struggling a little bit on that.
Speaker Change: It begins to move all our refreshed group through the <unk>.
Speaker Change: <unk> and <unk>.
Speaker Change: To begin all the all the.
Speaker Change: To move on all of.
Speaker Change: The plan so for sure we feel optimistic that we will.
Speaker Change: Completely fulfilled our plans of Capex today.
Speaker Change: This year.
Speaker Change: <unk>.
Speaker Change: Really.
Speaker Change: We're really comfortable because some of the most important.
Speaker Change: Okay.
Speaker Change: Planned for this year right now are beginning just too long with the constructors.
Speaker Change: We are I would say.
Speaker Change: We're seeing that.
Speaker Change: All of our commitments of embankment will be fulfilling for towards the end of the year.
Speaker Change: I will say like a final remark on this is that.
Speaker Change: Always its five year the first six months.
Speaker Change: I would say difficult to begin.
Speaker Change: The all to all to move all the moving parts of the defective there to begin with to deploy all the all the all the plan, but we are optimistic that we will be.
Speaker Change: On the target for ending with a commitment for this year.
Speaker Change: Thank you very much very clear.
Speaker Change: At this time there are no further phone questions.
Speaker Change: Well, we have some questions from the webcast. So we are going to start with the one from <unk> <unk> from GBM and <unk>.
Speaker Change: He is asking my view declined 280 basis points.
Speaker Change: Year over year to 67, 1%, mainly due to higher costs and recognition of the 9% concession fee.
Speaker Change: Did you expect margins to stabilize at this level or is this.
Speaker Change: Or is there potential for further compression in the next quarters.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: So yes.
Speaker Change: We'll be the levels of margins that we would see from now.
Speaker Change: As we explained.
Speaker Change: During the call.
Speaker Change: The new ERP and already in record 19 of the P&L.
A concession fee payment to the 299% increase.
Speaker Change: By Tonight. So it is it is important to understand that is talking about the 69 to 70.
Speaker Change: The complicated to return to those levels.
Speaker Change: So to be in the range of 66 to 67 $67 5 million.
Speaker Change: With the <unk>.
Speaker Change: But right now we do not expect any.
Speaker Change: <unk>.
Speaker Change: Any.
Speaker Change: Any change in the following.
Speaker Change: Following.
Speaker Change: In the following.
<unk>.
Speaker Change: Well there is another one that says now.
Speaker Change: That the cargo operations are fully consolidated how should we think about their margin contribution going forward.
Speaker Change: Are there any efficiencies initiatives in place to improve profitability in this segment.
Speaker Change: Yes, I mean, we are working with the new acquisitions.
Speaker Change: For sure we are creating.
Speaker Change: Different.
Speaker Change: Cruises are margins about efficiencies from that and that with Pacific acquisition.
Speaker Change: The.
Speaker Change: For sure one of the key parties.
Speaker Change: <unk> has a really.
Speaker Change: Embarked on this technology.
Speaker Change: Technology.
Speaker Change: <unk> shows some of the avenues that the concept that we are bringing to the changeover Lucia will bring us.
Speaker Change: Additional efficiencies.
Speaker Change: The operational piece.
Speaker Change: Of this business. So we are just some that we are.
In this process of digesting all this new business.
Speaker Change: As soon as we can bring all the visa futures today.
Speaker Change: This new business, we will review ready for for looking for another.
Speaker Change: Possible developments in our airports, but I would say that right now.
Speaker Change: Haven't used for optimize the operation.
Speaker Change: Jacob.
Speaker Change: And then we have some questions from Exxon would be after him from a cap.
Speaker Change: Alright, and I guess following by Shannon upset regarding cargo in bonded warehouses.
Speaker Change: Is that revenue growth for the following quarters.
Speaker Change: Okay.
Speaker Change: Good question I mean on the first quarter of this year.
Speaker Change: Experian.
Speaker Change: Burton increase.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Cargo.
On the cargo.
Speaker Change: With all the noise about the possible Terry.
Speaker Change: Sean.
Speaker Change: So companies made or sent additional EBIT EBITDA range.
Speaker Change: Warehouse so.
Speaker Change: Not pretty clear.
Speaker Change: How much that would be how longer to complete some revenues from the <unk>.
Cargo.
Speaker Change: We are really growing that way.
Speaker Change: Rate base or.
Speaker Change: <unk>.
Speaker Change: 30, 30%.
Speaker Change: First title for that.
Speaker Change: Jacob.
Speaker Change: We will wait and see.
Speaker Change: We're going to happen.
Speaker Change: How many months.
Speaker Change: From Exxon as well Keith asking regarding the employees' costs can we expect the same cost protocol requires.
Speaker Change: Well.
Speaker Change: Okay.
Speaker Change: Yes, basically yes.
Speaker Change: We'll see the same level of cost of personnel and salaries.
Speaker Change: We have to consider that integration and consolidation of a diluted DC implies additional cost.
Speaker Change: It is something that we have considered.
Speaker Change: Our guidance is something that we.
Speaker Change: The plan.
Speaker Change: Sure.
Speaker Change: So.
Speaker Change: Sure.
Speaker Change: The level of cost that we would see.
Speaker Change: In the following quarters, Yeah, and then the last one that you are asking about the capex breakout by at the FERC, Yes. It is going to be $1 7 billion growing 2025.
Speaker Change: Correct.
Speaker Change: And well this is the last question that we have in the webcast.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: So thank you once again for joining us today for our first quarter results conference. Our team is available to address any questions. You may have have a great day. Thank you.
Speaker Change: Okay.
Speaker Change: This does conclude gaps conference call. Thank you for your participation you may disconnect at any time.
Speaker Change: The House has ended this call goodbye.