Q3 2025 Grupo Aeroportuario del Pacifico SAB de CV Earnings Call

October 23, 2025

Operator: On mute to prevent any background noise. After the presentation, we will open the floor for questions. 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 GAP's Investor Relations team. Please go ahead.

Operator: 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 GAP's Investor Relations team. Please go ahead.

Maria: Welcome to GAP's Q3 2025 Conference Call. Prior to introducing GAP's management team, I'd like to take a few moments to mention the forward-looking statements as described in the financial disclosure statements. Please be advised that any comments made today may not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, any information discussed is based on several assumptions and factors that could change, causing actual events to materially differ from current expectations. For the complete note on forward-looking statements, please refer to the quarterly report. Thank you for your attention. Our speakers today from GAP are Mr. Raúl Revuelta, Chief Executive Officer, and Mr. Saúl Díaz, Chief Financial Officer. At this time, I'll turn the call over to Mr. Revuelta for his opening remarks.

Maria Barona: Thank you, and welcome to GAP's third quarter 2025 conference call. Prior to introducing GAP's management team, I'd like to take a few moments to mention the forward-looking statements as described in the financial disclosure statements. Please be advised that any comments made today may not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, any information discussed is based on several assumptions and factors that could change, causing actual events to materially differ from current expectations. For the complete note on forward-looking statements, please refer to the quarterly report. Thank you for your attention. Our speakers today from GAP are Mr. Raúl Revuelta, Chief Executive Officer, and Mr. Saúl Villarreal, Chief Financial Officer. At this time, I'll turn the call over to Mr. Revuelta for his opening remarks.

Raúl Revuelta: Thank you, Maria. Good morning, everyone, and thank you for joining us today. I am pleased to share with you the operational and financial highlights for the third quarter of 2025. Overall, despite the passenger traffic slowdown in these quarters, this was another solid quarter for GAP, marked by continued revenue growth and profitability, as well as important progress in terms of the company's investment program and financial strategy. Let me start with the passenger traffic. During the quarter, international passenger traffic declined, mainly due to the immigration-related challenge and a more restricted perception under the current US administration, which has affected the behavior of VFR and leisure passengers. In addition, the ongoing Pratt & Whitney engine issues continue to limit Volaris and VivaAerobus' seat capacity recovery, as carriers have indicated they expect to fully recover their fleet by 2027.

Raúl Revuelta: Thank you, Maria. Good morning, everyone, and thank you for joining us today. I am pleased to share with you the operational and financial highlights for Q3 2025. Overall, despite the passengers traffic slowdown in this quarter, this was another solid quarter for GAP, marked by continued revenue growth and profitability, as well as important progress in terms of the company's investment program and financial strategy. Let me start with the passenger traffic. During the quarter, international passenger traffic declined, mainly due to the immigration-related challenge and a more restricted perception under the current US administration, which has affected behavior of VFR and leisure passengers. In addition, the ongoing Pratt & Whitney engine issues continue to limit Volaris and Viva Aerobus seat capacity recovery, as carriers have indicated they expect to fully recover their fleet by 2027.

Raúl Revuelta: Despite this challenge, total passengers traffic across GAP's 14 airports increased by 2.5% compared to the same period of 2024, reaching a total of 15.8 million passengers in the quarter. This growth was supported by new routes and additional frequencies, which helped offset the decline in international travel and reflect the sustained recovery in domestic demand. Looking ahead, our strategy remains focused on connectivity and diversifying our network. During Q4, eight new international routes to Canada will be launched: three from Guadalajara, three from Puerto Vallarta, and two from Montego Bay, which will enhance passenger traffic and support demand during the high winter season. Furthermore, for the first time in the history of Los Cabos, it will be connected directly to Panama, expanding our network into Central America and thereby strengthening GAP position as a regional hub.

Raúl Revuelta: Despite this challenge, total passenger traffic across GAP's 14 airports increased by 2.5% compared to the same period of 2024, reaching a total of 15.8 million passengers in the quarter. This growth was supported by new routes and additional frequencies, which helped offset the decline in international travel and reflect the sustained recovery in domestic demand. Looking ahead, our strategy remains focused on connectivity and diversifying our network. During the four quarters, eight new international routes to Canada will be launched: three from Guadalajara, three from Puerto Vallarta, and two from Montego Bay, which will enhance passenger traffic and support demand during the high winter season. Furthermore, for the first time in the history of Los Cabos, it will be connected directly to Panama, expanding our network into Central America and thereby strengthening GAP's position as a regional hub.

Raúl Revuelta: Turning to total revenues, this increased by 17.4% versus Q3 2024, driven by the solid performance of both the aeronautical and non-aeronautical business. Aeronautical revenues grew by 18.3%, reflecting the new maximum tariff. The original plan was to implement the increase approved in 2 phases: 15% in March 2025 and the remainder during 2026. However, after reviewing traffic performance and load factor strength during the year, we may move forward with the second adjustment on an average of 7.5% starting 1 September. Non-aeronautical revenues increased by 15.6%, boosted by the strong performance in both Mexico and Jamaica.

Raúl Revuelta: Turning to total revenues, this increased by 17.4% versus third quarter 2024, driven by the solid performance of both the aeronautical and aeronautical business. Aeronautical revenue grew by 18.3%, reflecting the new maximum tariff. The original plan was to implement the increase approved in two phases: 15% in March of 2025 and the remainder during 2026. However, after reviewing traffic performance and load factor trends during the year, we moved forward with the second adjustment on an average of 7.5% starting 1 September 2025. New aeronautical revenues increased by 15.6%, boosted by the strong performance in both Mexico and Jamaica. Revenue from business operated directly by GAP rose by 30.1%, increased mainly due to the consolidation of the cargo and bonded warehouse business, which contributed by MXN 559 million.

Raúl Revuelta: Revenue from business operated directly by GAP rose by 13.1% increase, mainly due to the consolidation of the cargo and bonded warehouse business, which contributed by MXN 559 million. Revenue from third-party operators increased by 4.7% and includes the opening of new commercial spaces and the renegotiation of contracts under better market conditions. It is worth noting that the strongest performing business lines were food and beverage, retail, duty free, ground transportation, and timeshares. Beyond the quarter results, non-aeronautical revenues continue to drive diversification and resilience in our business model. The expansion of commercial areas and the integration of the new services, such as cargo operation, strengthens GAP's long-term revenue base. Looking ahead, we expect to continue optimizing our commercial offering and leveraging passenger flow growth to enhance value creation across all the airports. Moving on to the costs.

Raúl Revuelta: Revenue from third-party operators increased by 4.7% and includes the opening of new commercial spaces and the renegotiation of contracts under better market conditions. It is worth noting that the strongest-performing business lines were food and beverage, retail, duty-free, ground transportation, and timeshares. Beyond the quarter results, new aeronautical revenues continue to drive diversification and resilience in our business model. The expansion of commercial areas and the integration of the new services, such as cargo operation, strengthened GAP's long-term revenue base. Looking ahead, we expect to continue optimizing our commercial offering and leveraging passenger flow growth to enhance value creation across all the airports. Moving on to the cost, the cost of services increased by 14.1% compared to the same period last year.

Raúl Revuelta: The cost of services increased by 14.1% compared to the same period last year. This increase reflects the impact of operation of jet bridges and airport buses. A task that was previously managed by third parties but must now be operated directly by GAP due to the change in regulations. Without this cost of services would have increased by around 4.8%. Despite this increase, our focus on strict cost discipline remains a priority. Our goal is to maximize operational efficiency and long-term sustainability while ensuring that service quality and safety standards across our airports remain among the highest in the region. Turning now to profitability, EBITDA grew by 12.8%, reaching MXN 5.1 billion, with an EBITDA margin of 64.3%, excluding IFRIC 12.

Raúl Revuelta: This increase reflects the impact of operation of jet bridges and airport buses, a task that was previously managed by third parties but must now be operated directly by GAP due to the change in regulations. Without this cost, cost of services would have increased by around 4.8%. Despite this increase, our focus on strict cost discipline remains a priority. Our goal is to maximize operational efficiency and long-term sustainability, while ensuring that service quality and safety standards across our airports remain among the highest in the region. Turning now to profitability, EBITDA grew by 12.8%, reaching $5.1 billion, with an EBITDA margin of 64.3%, excluding IFRIC 12. Margin was lower than in 2024, reflecting mainly the impact of the change in concession fees for our Mexican airports from 5% to 9%, which was payable finance in 2024 but reflected in our P&L in 2025.

Raúl Revuelta: Margin was lower than in 2024, reflecting mainly the impact of the change in concession fee for our Mexican airports from 5% to 9%, which was payable finance 2024, reflected in our P&L in 2025. Regarding our financial position, we remain in strong liquidity position with 11.7 billion in cash and cash equivalents as on 3 September. In Q3 2025, we paid the second and final dividend installment of MXN 8.42 pesos per outstanding share, which was approved at the annual general ordinary shareholders meeting. During the quarter, we successfully issued 2 new bond certifications under our long-term program for a total amount of MXN 8.5 billion pesos. The proceeds are used to finance approximately MXN 7 billion pesos in capital investment and to repay MXN 1.5 billion pesos bank loans with Santander.

Raúl Revuelta: Regarding our financial position, we remain in a strong liquidity position with MXN 11.7 billion in cash and cash equivalents as of 3 September 2025. In Q3 2025, we paid the second and final dividend installment of MXN 8.42 per expanded share, which was approved at the annual general ordinary shareholders' meeting. During the quarter, we successfully issued two new bond certifications under our long-term program for a total amount of MXN 8.5 billion. The proceeds are used to finance approximately MXN 7 billion in capital investment and to repay MXN 1.5 billion bank loans with Santander. We also refinanced a $40 million credit line with Banamex, extending its maturity to 2030. Active management of our capital structure strengthens the balance sheet and provides us with the flexibility required to execute our long-term investment commitments and potential in organic growth.

Raúl Revuelta: We also refinanced a USD 40 million credit line with Banamex, extending its maturity to 2030. Active management of our capital structure strengths, the balance sheet, and provides us with the flexibility required to execute our long-term investment commitments and potential inorganic growth. In terms of CapEx, during the first nine months of the year, we invest approximately MXN 7 billion. Most of these investments were related to the early stage of major infrastructure projects under the Master Development Program, including terminal expansions, airside improvement, among others. Looking ahead, we remain cautiously optimistic. Macroeconomic uncertainty and exchange rate volatility may create short-term challenge. It is important to highlight that GAP continue to benefit from our resilient domestic market, a diversified portfolio of airports, and a disciplined financial management.

Raúl Revuelta: In terms of CAPEX, during the first nine months of the year, we invested approximately MXN 7 billion. Most of these investments were related to the early stage of major infrastructure projects under the Master Development Program, including terminal expansions, airside improvement, among others. Looking ahead, we remain cautionarily optimistic. Macroeconomic uncertainty and exchange rate volatility may create short-term challenges. However, it is important to highlight that GAP continues to benefit from a resilient domestic market, a diversified portfolio of airports, and disciplined financial management. Furthermore, our strong financial position, and continued growth in both aeronautical and non-aeronautical revenues, allow GAP to maintain its leadership position in the region, and thus continue generating long-term value for our shareholders. Before closing, I would like to provide an update on our strategic expansion opportunities. The process related to the Turks and Caicos tender remains ongoing.

Raúl Revuelta: Furthermore, our strong financial position and continued growth in both aeronautical and non-aeronautical revenues allows GAP to maintain its leadership position in the region and thus continue generating long-term value for our shareholders. Before closing, I would like to provide an update on our strategic expansion opportunities. The process related to Turks and Caicos tender remains ongoing. We submitted our bid last year, while the evolution continue, no resolution has been announced as yet. We are still analyzing the potential acquisition of Motiva Airports, including the information available in data room, review the transaction details, and developing our financial model. As always, the market will be duly informed of any development, we will be, as always, continue to focus on value creation. Thank you again for your time. Operator, please open the line for questions.

Raúl Revuelta: We submitted our bid last year, and while the evolution continues, no resolution has been announced yet. We are still analyzing the potential acquisition of Motiva Airports, including the information available in the data room, reviewing the transaction details, and developing our financial model. As always, the market will be duly informed of any development, and we will be, as always, continuing to focus on value creation. Thank you again for your time, Operator. Please open the line for questions.

Operator: At this time, we will open the question-and-answer session. We'll take our first question from Rodolfo Ramos of Bradesco BBI.

Operator: At this time, we will open the question and answer session. If you would like to ask a question, please press star and one on your telephone keypad, and you'll be placed into the queue in the order received. You may remove yourself from the queue at any time by pressing pound and one. Once again, to ask a question, please press star and one on your phone now. We will take our first question from Rodolfo Ramos of Bradesco BBI.

Rodolfo Ramos: you, Raúl Revuelta and Saúl Villarreal, for taking my question. I have a couple, if I may. Can you talk a little bit about the traffic dynamics that you're currently experiencing? I mean, international traffic continues to underperform, especially in the VFR routes. You mentioned the immigration stance in the US. Yet, when you see capacity deployment and the route development that, for example, Volaris is having, it's targeting those very routes. Do you see a more pronounced recovery towards the end of the year in the next few months? How do you feel about your guidance for the year? That would be my first question, and I have a second one, if I may.

Rodolfo Ramos: Thank you, Raúl, Saúl, Ale, for taking my question. I have a couple, if I may. Can you talk a little bit about the traffic dynamics that you're currently experiencing? I mean, international traffic continues to underperform, especially in the VFR routes. You mentioned all the immigration standards in the US. Yet when you see capacity deployment and the route development that, for example, Volaris is having, it's targeting those very routes, you know? Do you see a more pronounced recovery towards the end of the year, in the next few months? How do you feel about, you know, your guidance for the year? That would be my first question. I have a second one, if I may.

Raúl Revuelta: Thank you, Rodolfo. This is Raul. I mean, in general terms, we are suffering from deceleration of VFR market mainly. We are seeing that deceleration for sure in directly routes from some of our airports to the US, as could happen in the Guadalajara, Chicago, or the Guadalajara, Sacramento, for instance, or Bajio, Los Angeles, for instance. Also in the routes that go to Tijuana and to the CBX to the US. In both of these markets, VFR going directly to the US and the VFR market going through Tijuana and through CBX to the US, we are seeing deceleration. That comes mainly for some kind of lack of information for the VFR market.

Raúl Revuelta: Thank you, Rodolfo. This is Raúl. I mean, in general, we are suffering from deceleration of the VFR market, mainly. We are seeing that deceleration, for sure, in the direct routes from some of our airports to the US, as could happen in the Guadalajara Chicago or the Guadalajara Sacramento, for instance, or Los Angeles, for instance, but also in the routes that go through Tijuana and through the CVX to the US. In both of these markets, VFR going directly to the US and the VFR market going through Tijuana and through CVX to the US, we are seeing deceleration that comes mainly from some kind of lack of information for the VFR market. Because if we think for a moment, all the passengers flying in a plane are citizens or green card holders, or they have all the papers to be totally legal.

Raúl Revuelta: If we think for a moment, all the passengers flying in a plane are US citizen or green card holder or, you know, they have, like, all the papers to be totally legal. The decrease on deals on this market, in our view, will be some deals, I would say, that will be in place in the short term after the passengers in some way have a complete understand of the possible trends on the migrant policy of the US administration. What we are seeing is, at least for the coming months, some decrease on these specific VFR markets.

Raúl Revuelta: The decrease on this market, in our view, will be something that will be in place in the short term after the passengers in some way have a complete understanding of the possible trends on the migrant policy of the US administration. What we are seeing is, at least for the coming months, some decrease on these specific VFR markets. We are seeing, and we are optimistic about the coming years, just when we review the seat capacity already announced by the different companies and Volaris. Saying that, we are still optimistic that the recovery of the VFR market will happen some coming year.

Raúl Revuelta: We are seeing and we are optimistic about the coming years, just when we review the seat capacity already announced by the different companies as Volaris. Saying that, we are still optimistic that the recovery of the VFR market will happen from coming year.

Rodolfo Ramos: Okay. Thank you, Raúl. Just, secondly, on the commercial side, the businesses that you operate are growing at a very rapid clip, no? Which explains the strong performance that we saw on the non-aeronautical revenue per passenger. And maybe this is a broader question, but when you look at the different initiatives that you have in the pipeline, how far off are we from seeing this top-line revenue growth stabilizing and going more in line with, you know, the more traditional retail food and beverage businesses?

Operator: Thank you, Raul. Just secondly, on the commercial side, the businesses that you operate are growing at a very rapid clip, which explains this strong performance that we saw in the Northern aeronautical revenue per passenger. When you look at the—and maybe this is a broader question—when you look at the different initiatives that you have in the pipeline, how far off are we from seeing this top-line revenue growth stabilizing and going more in line with the more traditional retail, food, and beverage businesses?

Raúl Revuelta: That was a good question, Raúl. I mean, at the end of the day, we are seeing this double-digit growth in almost all our business lines directly operated by GAP. I mean, we are really proud about all the efforts our commercial area is doing to maximize the revenue to, I mean, play with the prices of the products and the tariffs, and for sure, to manage the cost of these services.

Raúl Revuelta: It's a good question, Rodolfo. I mean, at the end of the day, we are seeing these double-digit growths in almost all our business lines directly operated by GAP. I mean, we are really proud about all the efforts our commercial area is doing to maximize the revenue, to, I mean, play with the prices of the products, the tariffs, and, for sure, to manage the cost of these services. What we are seeing on the coming years is that some of these business lines will continue in a higher pace than the rest of the commercial business due to the fact that, for instance, there's new commercial areas that we deploy in the coming two or three years as soon as we open a new terminal business, some terminal areas.

Raúl Revuelta: What we are seeing in the coming years is that some of these business lines will continue in a higher pace than the rest of the commercial business due to the fact that, for instance, there's new commercial areas that we deploy in the coming 2 or 3 years, as soon as we open a new terminal business, some terminal areas. For instance, as soon as we open the Puerto Vallarta new terminal building, we will see a jump on some of these specific business lines. Also as soon as we open the rest of the expansion of our terminal buildings on the coming years.

Raúl Revuelta: For instance, as soon as we open the Puerto Vallarta new terminal building, we will see a jump on some of these specific business lines, but also as soon as we open the rest of the expansion of our terminal buildings in the coming years. In a general term, I would say that we will begin or we will continue to see interesting rates of pace of growing on the directly operated business by GAP because we are seeing that we will continue expanding these business lines on different airports, and in different areas. I mean, let's, for instance, think for a second that our FBOs—today, we are just running Los Cabos, and three months ago, we began with La Paz—but for the next, I would say, 20 months, we will see the first FBO directly operated by GAP in Puerto Vallarta.

Raúl Revuelta: In a general term, I would say that we will begin or we will continue to see interesting rates of pace of growing in the directly operated business by GAP, because we are seeing that we will continue expanding this business line on different airports and in different areas. I mean, let's for instance, think for a second that our FBOs, today we are just running Los Cabos, and 3 months ago, we begin with La Paz. For the next, I would say 20 months, we will see the first FBO directly operated by GAP in Puerto Vallarta. The same will happen, for instance, with the hotels. We have a plan for a different development of hotels in the coming 5 years. It will give us other additional possibilities there.

Raúl Revuelta: The same will happen, for instance, with the hotels. We have a plan for different developments of hotels in the coming five years. It will give us other additional possibilities there. In general terms, I would say that the business directly operated by us, at least in the coming three to four years, will grow at a faster pace than the other business operated by third parties.

Raúl Revuelta: In general terms, Raul, I would say that the business directly operated by us, it will at least on the coming three to four years, we will grow in a faster pace than the other business operated by third parties.

Rodolfo Ramos: Very interesting. Thank you, Raúl.

Operator: Very interesting. Thank you, Raúl.

Raúl Revuelta: Good.

Raúl Revuelta: Thank you.

Operator: Our next question comes from Guilherme Mendes of J.P. Morgan.

Operator: Our next question comes from Guillermo Mendez of JP Morgan.

Guilherme Mendes: Good morning, Raul. Thanks for taking my question. The first one is a follow-up on costs. Raul, you mentioned in the beginning about the additional costs throughout the quarter. Just wondering if the level of costs and expenses that we saw in Q3 can be assumed for the coming quarters. Which according to our calculations, would probably put you on the lower end of your guidance for in terms of the EBITDA margin for the year. Just wonder if the rationale makes sense.

Guillermo Mendez: Good morning, Raul. Thanks for taking my question. The first one is a follow-up on costs. Raul, you mentioned in the beginning about the additional cost throughout the quarter. Just wondering if the level of cost and expenses that we saw in the third quarter can be assumed for the coming quarters, which, according to our calculations, would probably put you on the lower end of your guidance in terms of EBITDA margin for the year. Just wondering if the rationale makes sense. The second one is on the MDP maximum tariffs. If you can share at what level you are as of the end of third quarter and if the base case of increasing prices in early 2026 and potentially at some time in the second half of 2026 is still the base case at this point. Thank you.

Guilherme Mendes: The second one, it's on the MDP maximum tariffs, if you can share at what level you are as of the end of Q3, and if the base case of increasing prices in early 2026 and potential at some time in H2 2026, is it still the base case at this point? Thank you.

Raúl Revuelta: Hi, Guilherme. This is Raul. Well, related to the cost, we believe that it will be in average. The level of costs that we will see in the following quarters is very important to understand that in the way we increase the facilities in the airports, we increase the headcount, security, cleaning, et cetera. It's part of the business. We will see this level in the following quarters. In terms of the maximum tariff, I mean, first of all, talking about the EBITDA margins. As you remember, we present a guidance for the beginning of the year, and we are still in our guidance related with the margins.

Raúl Revuelta: Hi, Guillermo. This is Saúl. Well, related to the cost, we believe that it will be, on average, the level of costs that we will see in the following quarters. It's very important to understand that in the way we increase the facilities in the airports, we increase the headcount, security, cleaning, etc. It is part of the business. We will see this level in the following quarters. In terms of the maximum tariff, I mean, first of all, talking about the EBITDA margins, as you remember, we present the guidance at the beginning of the year, and we are still on our guidance related with the margins. The other part related with the maximum tariff, let's remember that on 1 March, we have a 15% increase on passenger fees for all of our domestic and international passengers.

Raúl Revuelta: The other part related with the maximum tariff, let's remember that in 1 March, we have a 15% increase on passenger fees for all of our domestic and international passengers. On 1 September, we increase an additional 7.5% of increase. For the coming year, we are thinking that on early February of coming year, we will increase again our tariff. It will be important to have in mind that for 2026, we wanna have in place the effect of three different moments of tariffs. January and February, for instance, we have the effect of the 15% and the 7% increase. From March to September, we have the effect of the increase of the 7.5% of the tariff.

Raúl Revuelta: On 1 September, we increased an additional 7.5% of increase. For the coming year, we are thinking that in early February of the coming year, we will increase again our tariffs. It will be important to have in mind that for 2026, we're going to have in place the effect of three different moments of tariffs. In January and February, for instance, we have the effect of the 15% and the 7% increase. From March to September, we have the effect of the increase of the 7.5% of the tariffs. During almost all the year, from February to December, we will have in place the increase of the additional tariff that we put in place on the coming year. In terms of tariffs for the coming year, we will expect a much better fulfillment of the maximum tariff.

Raúl Revuelta: During almost all the year, from February to December, we will have in place the increase of the additional tariff for that we made, we put in place on coming year. In terms of tariff, for the coming year, we will expect a much better fulfillment of the maximum tariff. For sure, it will depend, for instance, on what happen with inflation, I mean, the price product inflation. The second, what happen with the dollar and the exchange rate. In general terms, I would say that we are still passing through all the changes on the passenger fees, to have the very possible fulfillment of maximum tariff.

Raúl Revuelta: It will depend, for instance, on what happened with inflation, the price product inflation, and second, what happened with the dollar and the exchange rate. In general terms, I would say that we are still passing through all the changes on the passenger fee to have the better possible fulfillment of maximum tariff, and we will see a coming year that will be, I would say, that we will have an important increase on that specific line of the business.

Raúl Revuelta: We will see a coming year that will be, I would say that we will have a, an important increase on that specific line of the business. Just to complement you to in answering your question, Guillermo, related to the, with the margin, we would be very close to the guidance we released.

Saúl Villarreal García: To complement your answering your question, Guillermo, related to the EBITDA margin, we will be very close to the guidance we release.

Guillermo Mendez: Okay, that's clear. Thank you both. Appreciate it.

Guilherme Mendes: Okay. That's clear. Thank you both. Appreciate it.

Operator: Our next question comes from Jen Spies of Morgan Stanley.

Jen Spies: Hello, Raúl, Saúl, and Carolina. Thank you for taking my question. Just on the Motiva airport assets, I know it probably is limited what you can comment, but still, like hypothetically, are you planning to go for all of the assets or maybe do a partnership with some of the other potential bidders like Aena? If you're going alone for all the assets, would you be raising equity or mainly finance it via debt? Thank you.

Jen Spies: Hello. Raúl, Saúl, and Guillermo, thank you for taking my question. Just on the Motiva Airports assets, I know it probably is limited what you can comment, but still, hypothetically, are you planning to go for all of the assets or maybe do a partnership with some of the other potential bidders like AENA? If you're going alone for all the assets, would you be raising equity or mainly finance it via debt? Thank you.

Raúl Revuelta: Thanks again. I mean, we are still right now working on the different options. I would tell you that today we are not fully decided which will be the way that we will final bidding for this opportunity. We are opening for partnerships or for going alone on, I mean, on this stage. What is important is that we are, I mean, working as always in a really disciplined way to review the numbers, thinking what gonna be accretive for our company. For sure, in the case that we continue with this opportunity, we are thinking that all the money will come from leverage.

Raúl Revuelta: Thank you, Jen. I mean, we are still right now working on the different options. I would tell you that today, we are not fully decided on which will be the way that we will find our bidding for this opportunity. We are open for partnership or for going alone, I mean, at this stage. What is important is that we are working, as always, in a really disciplined way to review the numbers, thinking what is going to be accurate for our company. For sure, in the case that we continue with this opportunity, we are thinking that all the money will come from leverage. I mean, I would say that these are our main takes today on this specific opportunity of Motiva. We are still working, and we are open for different ways of participating.

Raúl Revuelta: I mean, I would say that these are our main takes today on this specific opportunity of Motiva. We are still working, and we are open for different ways of participating. That means alone or with some kind of partnership, and all the money will come from leverage.

Raúl Revuelta: That means alone or with some kind of partnership, and all the money will come from leverage.

Jen Spies: Perfect. All right. Thank you.

Operator: Our next question comes from Gabriel Himmelfarth of Scotiabank.

Operator: Our next question comes from Gabriel Himelfarb Mustri of Bank of Nova Scotia.

Gabriel Himelfarb Mustri: Hi. Good morning. Just a quick follow-up question. Can you repeat the tariff increase that are expected for 2026? If you are already Well, or when you expect to reach what the 100% maximum tariff. Thank you.

Gabriel Himmelfarth: Hi, good morning. Just a quick follow-up question. Can you repeat the tariff increase that is expected for 2026? If you are already—well, or when you expect to reach what, the 100% maximum tariff? Thank you.

Raúl Revuelta: For the coming years, we are still working on which gonna be the increases. I mean, it's on the way because we need to work on other procedure with the AFAC, with the federal agency. We are just on that, but we are expecting that it will happen on February. The other part is with all the change that we are expecting for 2026 will be, I mean, depending for sure in inflation and exchange rate, we're gonna be around between 93% to 97% of fulfillment of the tariff, I mean, at the end of the 26th. There are mainly the main points in terms of tariff.

Raúl Revuelta: For the coming years, we are still working on which going to be the increases. I mean, it's on the way because we need to work on all the procedures with the AFAC, with the federal agency. We are just on that, but we are expecting that it will happen in February. The other part is, with all the change that we are expecting for 2026, would be, I mean, depending for sure on inflation and exchange rate, we're going to be around between 93% to 97% of fulfillment of the tariffs, I mean, at the end of 2026. That are mainly the main points in terms of tariffs.

Gabriel Himelfarb Mustri: It's 95% at the end of 2026, right? What you're expecting?

Guillermo Mendez: It's 95% at the end of 2026, right? What you're expecting?

Raúl Revuelta: Yeah. I think in the range of that number.

Raúl Revuelta: That is in the range of that number.

Gabriel Himelfarb Mustri: Okay. Thank you.

Gabriel Himmelfarth: Okay, thank you.

Operator: As a reminder, if you would like to ask a question, please press star and one on your phone now. Our next question comes from Jorge Vargas of GBM.

Jorge Vargas Cuadra: Hi. Good morning. Thank you for taking my questions. Regarding the potential acquisition of Motiva's airport portfolio in Brazil, could you share any color on the expected timeline, along with the estimated investment size and the main strategic rationale behind your interest? Additionally, could you provide some context on how Brazil's concession structure works, and how it differs from the Mexican model? Thank you.

Guillermo Mendez: Hi, good morning. Thank you for taking my questions. Regarding the potential acquisition of Motiva Airports' portfolio in Brazil, could you share any color on the expected timeline, along with the estimated investment size, and the main strategic rationale behind your interest? Additionally, could you provide some context on how Brazil's concession structure works and how it differs from the Mexican model? Thank you.

Raúl Revuelta: Thank you, Jorge. I mean, for sure the rationale is diversification among our main business at the airports. As you know, the airport industry opportunity are really There are small ones per year around the world. For sure, as airport operators always will be interesting for us to analyze any of these opportunities. Motiva is a group of airports that have different concessions, different countries, and different, I would say, frameworks of concession frameworks. Just going in a really quick way, we have a big 4 groups of airports in Brazil with Each one of them with different routes of concession. Also, it is in the pack, Quito Airport, also San Jose Costa Rica Airport, and Curaçao Airports.

Raúl Revuelta: Thank you, Jorge. I mean, for sure, the rationale is diversification among our main business at the airports. As you know, the airport industry opportunities are limited. There are small ones per year around the world. For sure, as airport operators, always would be interesting for us to analyze any of these opportunities. Motiva is a group of airports that have different concessions, different countries, and different, I would say, frameworks of concession frameworks. Just going in a really quick way, we have four groups of airports in Brazil, each one of them with different groups of concession. Also, it is in the Pacas Quito Airport, also San José Costa Rica Airport, and Curaçao Airport. What we are seeing in all of these for GAP is we will have a potential opportunity to increase the value of those companies through two different ways.

Raúl Revuelta: What we are seeing in all of this for GAP is we will have a potential opportunity to increase the value of those companies through two different ways. The first related with commercial revenues, applying our well-known model of increase the commercial revenues. The second, it was related with the discipline of the cost. We think both of these will be an interesting area to explore, to bring all the experience of GAP onto this airport. Again, we are really in a, I would say, final analyzing of this opportunity. Today, we don't have a complete view if we will participate in the last or the last part of this bidding process. We are continuing analyzing.

Raúl Revuelta: The first related with commercial revenues, applying our well-known model of increasing commercial revenues. The second was related with the discipline of the cost. We think both of these would be an interesting area to explore, to bring all the experience of GAP onto this area. Again, we are really in a, I would say, final analyzing of this opportunity. Today, we will have a complete view if we will participate in the last or the last part of this bidding process. We are continuing analyzing. Related with the timeline, I would say that this is, I would say, a structure and a project that the timeline is rolling directly by Motiva. We are expecting that in the middle of November could happen the presentation of the final numbers.

Raúl Revuelta: Related with the timeline, it would say that this is, I would say, a structure and a project that the timeline is rolling directly by Motiva. We are expecting that on the mid of November could happen the presentation of the final numbers. Again, it will depends completely on the seller, because if you see this process has on the past had different moments and changes of the timeline. At least for the case of GAP, we are seeing that for the mid of November, we will make our final decision related with this, with this transaction.

Raúl Revuelta: Again, it will depend completely on the seller because we see this process has, in the past, had different moments and changes of the timeline. At least for the case of GAP, we are seeing that for the middle of November, we will make our final decision related to this transaction.

Guillermo Mendez: Thank you.

Jorge Vargas Cuadra: Thank you.

Operator: Thank you. As a reminder, you can also ask questions through the webcast. Please, if you are on the webcast, go ahead and submit your questions now. We have a question from Edson, M-Mergo from Summa Cap.

[Analyst] (Summa Cap): Yes. Good morning. Thank you for taking my questions. I have two of them. I was wondering if you can give us more color about these new routes from Los Cabos. Even looking forward, there is a possibility that other airlines can connect between Los Cabos or maybe Puerto Vallarta to Central America or the ports of, or even South America. Could you give us, I don't know if this is possible, to give us the name of the airline who will operate Los Cabos to Panama. The second question is related to the cargo and bonded warehouse. I was wondering if you have similar initiatives, or initiatives related to new buildings or even with the Master Development Program looking ahead, similar to the food and beverage and new terminal buildings and so on.

Gabriel Himmelfarth: Yes. Good morning. Thank you for taking my questions. I have two of them. I was wondering if you can give us more color about these new routes from Los Cabos. Even looking forward, there is a possibility that other airlines can connect between Los Cabos or maybe Puerto Vallarta to Central America, or the ports of, or even South America. Could you give us—I don't know if it's possible to give us the name of the airline who will operate it, Los Cabos to Panama? The second question is regarding to the cargo and bonded warehouse.

Gabriel Himmelfarth: I was wondering if you have similar initiatives or initiatives related to new buildings or even with the Master Development Program looking ahead, similar to the food and beverage and terminal buildings, and so on, because it seems that cargo and bonded warehouse, it's on a good growth pace for the following quarters. Thank you.

[Analyst] (Summa Cap): Because it seems that cargo and bonded warehouse, it's in a good growth pace for the following quarters. Thank you.

Raúl Revuelta: Thank you. In the case of the routes of Cabos, I mean, it is important. It's really interesting to see for the first time a direct operation to South America. As you perfectly know, all the Panama hub is a great opportunity to capture all the traffic going beyond, I mean, that connect to the rest of South America and Central America. I think it's a great opportunity for Cabos. At the end of the day, it's opening a complete new market and a complete new way of opportunities around that. For the case of Puerto Vallarta, for the last, I would say, almost at least 9 years, Puerto Vallarta is connected directly to Panama with Copa.

Raúl Revuelta: Thank you, Edson. In the case of the routes of Cabos, I mean, it is important. It's really interesting to see for the first time a direct operation to South America. As you perfectly know, all the Panama hub is a great opportunity to capture all the traffic going beyond, I mean, that connects to the rest of South America and Central America. I think it's a great opportunity for Cabos. At the end of the day, it's opening a complete new market and a complete new way of opportunities around that. For the case of Puerto Vallarta, for the last, I would say, almost at least nine years, Puerto Vallarta is connected directly to Panama with Copa. We have, I mean, after the COVID, we have a close of the services and are coming back with a number of frequencies just in some seasons.

Raúl Revuelta: We have, I mean, after the COVID, we have a close of the services and are coming back with a less number of frequencies just in some seasons. At the end of the day, what we know about the direct connection with Panama is that we If the hub of Panama opens the opportunity for a broader market related with all the beyond on South America. In that terms, I think that, yes, it's a great opportunity for Cabos to reach a completely new market to that destination. Hi, everyone, this is Saúl. Related with your second question.

Raúl Revuelta: At the end of the day, what we know about the direct connection with Panama is that the hub of Panama opens the opportunity for a broader market related with all the region in South America. In that sense, I think that yes, it's a great opportunity for Cabos to bring a completely new market to that destination.

Saúl Villarreal García: Hi, Edson. This is Saúl, related with your second question. The cargo bonded warehouse is not a business regulated under the Master Development Program. It is nothing to do with our new terminal for passengers. We are interested to replicate this business in other airports if it's possible and according to the demand and the opportunity of market in those airports. It is a great business. It was a great decision. We will be following some opportunities in the future in other airports.

Saúl Villarreal García: The cargo warehouse is not a business regulated under the Master Development Program, so it is nothing to do with our new terminal for passengers. We are interested to replicate this business in other airports, if it's possible, and according to demand and the opportunity of market in those airports. It is a great business. It was a great acquisition, and we will be following some opportunities in the future in other airports.

[Analyst] (Summa Cap): Okay. Thank you so much.

Gabriel Himmelfarth: Okay, thank you so much.

Alejandra Soto Ayech: Well, we have some questions from the webcast. There is 2 from Rafael Simonetti from UBS. One of them was already explained, the only one that we have, it is: Aeronautical charge declined quarter-over-quarter. Could you elaborate on the main drivers behind this decrease?

Maria Barona: Well, we have some questions from the webcast. There are two from Rafael Simonetti from UBS. One of them was already explained. The only one that we have is aeronautical tariff decline, quarter over quarter. Could you elaborate on the main drivers behind this decrease?

Saúl Villarreal García: Hi, Rafael. This is Saúl. Yes, it was due to the component in the mix of passenger traffic we have in our airports. International traffic declined, and those airports have the highest passenger charges. Therefore, this affects directly to the revenue and also the exchange rate, which the peso appreciate in this quarter around 4.6%. Therefore, that the passenger aeronautical revenue per passenger declined slightly.

Saúl Villarreal García: Hi, Rafael. This is Saúl. Yes, it was due to the component in the mix of passenger traffic we have in our airports. International traffic declined, and those airports have the highest passenger charges. Therefore, this affects directly the revenue. Also, the exchange rate, with the peso appreciating in this quarter around 4.6%. Therefore, the passenger aeronautical revenue per passenger declined slightly.

Alejandra Soto Ayech: Yeah. Thank you, Saúl. Well, we have another question from Daniela Guzman from Ashmore. The question is: What is the expected effect of next year World Cup in traffic figures?

Maria Barona: Yes. Thank you, Saúl. Well, we have another question from Daniela Guzmán from Ashmore, and the question is, what is the expected effect of next year's World Cup in traffic figures?

Raúl Revuelta: It's, I mean, it's hard to know because at the moment we have, like, different scenarios related with what could be the impact on the World Cup in specifically Guadalajara and some different of our airports. We are thinking that for sure Guadalajara, with the 4 games, will have a positive effect. Tijuana that will be, through the CBX, will be connected to some of the games in Southern California. We're seeing also that could have some positive effect. Today, it's really difficult to understand how big could be the effects of that, and will depend of the lottery related with the different selections that will be on Guadalajara for the World Cup.

Raúl Revuelta: I mean, it's hard to know because at the moment, we have different scenarios related with what could be the impact on the World Cup in specifically Guadalajara and some different other airports. We are thinking that for sure, Guadalajara with the four games, we have a positive effect. Tijuana that will be to the CVS will be connected to some of the games in Southern California. In Southern California, we think also that we could have some positive effect. Today, it's really difficult to understand how big could be the effects of that, and will depend on the lottery related with the different selections that will be on Guadalajara for the World Cup. At the beginning of coming year, it will be this lottery of national teams, and we will know which is going to be the matches that will happen in Guadalajara.

Raúl Revuelta: At the beginning of coming year, it will be this lottery of national teams, we will know which going to be the matches that will happen in Guadalajara. In that moment, we could have a more clear way to prepare some scenarios of possible increase on traffic. I mean, the numbers that, for instance, the FIFA and the government has announced is that could be from the case of Guadalajara, something that goes from 300,000 to half million passengers that could come to the city. It's really, for the moment, it's unclear until we know which national teams will be allocated in Guadalajara.

Raúl Revuelta: I mean, at that moment, we could have a more clear way to prepare some scenarios of possible increase on traffic. I mean, the numbers that, for instance, FIFA and the government have announced is that could be, from the case of Guadalajara, something that goes from 300,000 to 500,000 passengers that could come to the city. It is really, for the moment, unclear until we know which national teams will be allocated in Guadalajara.

Alejandra Soto Ayech: Well, thank you, Raul. We have another one in the webcast from Enrique Sojo from Fundamenta. He's asking: Could you provide even further details on the commercial areas which will come online in the next few years? Do you have any longer term vision for what level of non-aeronautical revenue per pax may reach?

Maria Barona: Well, thank you, Raúl. We have another one in the webcast from Enrique Sojo from Fundamenta. He's asking, could you provide even further details on the commercial areas which will come online in the next few years? Do you have any longer-term vision for what level of non-aeronautical revenue per pass may reach?

Raúl Revuelta: I mean, as you remember, we have been talking on that. We will be for 2029, our terminal buildings at GAP in Mexico will increase around 55% in terms of the square meters. For sure, we will have a great opportunity to de-deploy additional commercial offer on those new terminal buildings and expansion of terminal buildings. The biggest one will come from 3 different airports. I mean 4 different airports we have opportunity for increase the commercial business in terms of really interesting numbers. The first one is the terminal 2 of Guadalajara. That will be open for 2029, or beginning of 2029. The next one is Puerto Vallarta. That will be a second terminal building that will open for January or the Q1 of 2027.

Raúl Revuelta: Okay. I mean, as you remember, we have a topic on that. For 2029, our terminal buildings at GAP in Mexico will increase around 55% in terms of square meters. For sure, we will have a great opportunity to deploy additional commercial offer on those new terminal buildings and expansion of terminal buildings. The biggest one will come from three different airports. I mean, four different airports will have opportunities for increased commercial business in terms of really interesting numbers. The first one is the Terminal 2 of Guadalajara that will be open for 2029, for the beginning of 2029. The next one is Puerto Vallarta. That will be a second terminal building that will open for January or the first quarter of 2027. The third one is the expansion of the Tijuana Airport that will be ready for beginning operation in 2028.

Raúl Revuelta: The third one is the expansion of the Tijuana airport that will be ready for beginning operation in 2028. The last one is the expansion of the terminal 2 building of Los Cabos. That will be on operation for 2027 mainly. In that sense, we will have a great, well, amount of opportunities to expand commercial business. Yeah. For the end of the year, the master plan, we will have this, like the big number, this expansion that we, you know, for 55% of increase on square meters in our terminal building. In that way, we will have that reflection on opportunities for increase our commercial spaces in our terminals.

Raúl Revuelta: The last one is the expansion of the Terminal 2 building of Los Cabos that will be on operation for 2027, mainly. In that sense, we will have a great, well, amongst opportunities to expand commercial business. Yeah, for the end of the year, the master plan, we will have the big number, this expansion that will be of 55% of increase of square meters in our terminal building. In that way, we will have that reflection on opportunities for increase of our commercial spaces in our terminals.

Operator: We have a question from Alan Macias of Bank of America.

Alan Macias: Hi, good morning, and thank you for the call. Just a question on international traffic, if you can just go through the four main airports, and especially Puerto Vallarta has been quite weak year to date. Just if you can go through the negative impacts for international traffic. Thank you.

Guillermo Mendez: Hi, good morning, and thank you for the call. Just a question on international traffic. If you can just go through the four main airports, and especially Puerto Vallarta has been quite weak year to date, just if you can go through the negative impacts for international traffic. Thank you.

Raúl Revuelta: Thank you. I would say that in the first 9 months, we are seeing a decrease on passengers, mainly on international. For Puerto Vallarta, the good news there is that we are seeing a much better winter. We are reviewing the number of seats coming from mainly Canadian markets and some other different international or US groups that are coming back with additional seats for the winter season on this year. That will give us a much better Q1 of the coming year in Puerto Vallarta.

Raúl Revuelta: Thank you. I will say that in these two, I will say that the first nine months, we are seeing a decrease on passengers, mainly on international for Puerto Vallarta. The good news there is that we are seeing a much better winter. We are reviewing the number of seats coming from mainly Canadian markets, and some other different international or US routes that are coming back with additional seats for the winter season on this year, that will give us a much better first quarter of the coming year in Puerto Vallarta. On the first nine months, what we are seeing is a decrease in passengers, mainly due to a decrease in capacity for American Airlines, mainly in the case of Puerto Vallarta, with some other effects coming from Spirit.

Raúl Revuelta: On the first nine months, what we are seeing is a decrease on passengers, mainly due to a decrease on capacity for American Airlines, mainly in the case of Puerto Vallarta, with some other effect coming from Spirit. In general terms, what we're seeing in Vallarta is a decrease on passengers, as you say, of 5% on this year on international market. We are optimistic about the coming year because we are seeing the coming back of some of these seats on this winter season. The additional, I would say, increase on passengers from Canadian capacity will also a great news for Puerto Vallarta airport.

Raúl Revuelta: In general terms, what we're seeing in Vallarta is a decrease in passengers, as you say, of 5% this year on the international market. We are optimistic about the coming year because we are seeing the coming back of some of these seats this winter season. The additional, I would say, increase in passengers from Canadian capacity will also be great news for Puerto Vallarta Airport.

Alan Macias: Thank you.

Guillermo Mendez: Thank you.

Operator: It appears that we have no further questions at this time. I will now turn the program back to our presenters for closing remarks.

Raúl Revuelta: Thank you once again for joining us today. Please contact our investor relations team with any additional questions you may have. Have a great day, and thank you for your attention.

Operator: Thank you. This does conclude GAP's conference call. Thank you for your participation. You may disconnect at any time.

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 gaps Investor Relations team. Please go ahead.

Thank you and welcome to Gap's third quarter 'twenty 'twenty five conference call Alright. Thank.

Thank God management team I'd like to take a few moments to mention that forward looking statements.

In the financial disclosure statements.

Please be advised that any comments made today may not acute account for future economic circumstances industry conditions, the company's future performance or financial results.

Such any information discussed is based on several assumptions and factors that could change, causing actual events to materially differ from current expectations for the complete note on forward looking statements. Please refer to the quarterly report.

For your attention our speakers today from GAAP are Mr.

<unk>, Chief Executive Officer, and Mr. <unk> <unk> Chief Financial Officer at this time I'll turn the call over to Mr. Revuelta for his opening remarks.

Thank you Mike.

Good morning, everyone and thank you for joining us today.

And I'm pleased to share with you the operation of our financial highlights for the third quarter of 2025.

But we're already spud the passengers' traffic a slowdown in this quarter.

<unk> had another solid quarter for GAAP.

Marked by continued revenue growth and profitability as well as important progress in terms of the company's investment program and financial structures.

Let me start with the passenger property during the quarter international passenger traffic decline.

Mainly due to the immigration related challenge and a more restricted protection under the current U S administration.

We have affect the behavior of VFR and leisure passengers.

In addition, the ongoing broadband within the engine issues continue to lean in voice and Delever elusive capacity recovery.

As Gary has indicated they expect to fully recover to their fleet by 2027.

Despite these challenges.

Total passenger traffic gaps 14 airports increased by two 5% compared to the same period of 2021.

A total of $15 8 million passengers from Macquarie.

This growth was supported by new routes and additional frequencies, which helped offset the decline in international proverb that reflect the sustainable recovery in domestic demand.

Looking ahead, our strategy remains focused on connectivity and diversifying our network.

During the FERC acquired earlier international routes to Canada would be announced.

Drew from Guadalajara through from birth of our guys that are improved from mondavi, which we've enhanced possibly your trough recon support demand due to their high winter seasons.

Furthermore, for deferred time in the history of Luis Carlos will be connected directly to Panama, expanding our network in Central America, thereby strengthening GAAP position as a regional hub.

Turning to total revenues increased by 17, 4% versus third quarter of 2000.

Driven by the solid performance of both the rollout began anoro multicast business.

I will note that our revenue grew by 18, 3%, reflecting the new maximum tariff.

There isn't a plan west implemented increased approve it in two phases, 15% in March of 'twenty five.

The remainder during 2026.

However, after reviewing profit performance on load factors trend during the year, we missed one.

Florida with the second adjustment on an average of seven 5% with carriers in September one.

Nor will now take our revenues and grew by improved by 15, 6%.

And by the strong performance in both Mexico and generic <unk>.

Revenue from business operated directly by gap wells by Terry <unk>, 1% increase mainly due to the consolidation of the cargo unbundle warehouse business, which contributed with $559 million.

Revenue from third party operators improved by four 7%.

<unk>, the opening of new commercial spaces under renegotiation of contracts under better market conditions.

It is worth nothing that the strongest performing business than we are.

<unk>.

Due to fleet rougher flotation and temperatures.

Beyond the quarterly results I will now take our revenues continue to drive diversification in our restaurants and our business model.

The expansion of commercial areas on the integration of the new services, such as cargo operation <unk> gap to long term revenue base.

Looking ahead.

Back to continue optimizing our commercial offering and leveraging paucity of slow growth to enhance value creation across all the articles.

Moving onto the cost.

The cost of services increased by 14, 1% compared to the same period last year.

This increase reflects the impact of operation of jet bridges, and therefore buses.

About that were previously managed by third parties, but must now be operated directly by gap due to the change in regulations.

With our discussed cost of services will have increased by around four 8%.

Despite this increase our focus on strict cost discipline remains a priority.

Our goal is to maximize operational efficiency and long term for <unk>.

While ensuring that service quality and safety standards across our airports remain among the highest in the region.

Turning now to profitability EBITDA grew by 12, 8%, reaching $5 1 billion pesos with an EBITDA margin of 64, 3% excluding accurate trucks.

Margin was lower than in 2020 with readily mainly the impact of the changing potential feed for our Mexican airports from 5% to 9%, which was payable finance 2024, but reflected in our P&L in 2035.

Regarding our financial position, we remain in strong liquidity position with $11 7 billion in cash and cash equivalents as on September 30.

Third quarter 2005, we paid the second and final, leaving an installment of 842 vessels various furniture, which was approved at the annual general ordinary shareholders' meeting.

During the acquirer.

We successfully issued two new bonds therapeutic cases, one under our long term program.

For a total amount of $8 5 billion base.

The proceeds are used to finance upper commence 7 billion pesos in capital investment and to repurchase $1 5 billion peso bank loans with Santander, We also recognized $5 or $40 million created language banner mix.

Extending its maturity to 2000 turkeys.

Active management of our capital structure strength, the balance sheet and provides.

The letters with the flexibility required to execute our long term investment commitments on potential inorganic growth.

In terms of Capex during the first nine months of the year, we invest approximately $7 billion basis 7 billion basis. Most of these investments were related to the early stage of major infrastructure projects under the Master development program, including terminal expansions.

Eric site improvement among others.

Looking ahead, we remain cautiously optimistic.

Macroeconomic uncertainty and exchange rate volatility may create a short term challenge. However, it is important to highlight that gaps continue to benefit from a ratio in domestic market.

Certified product for their airports and our disciplined financial management.

Furthermore, our strong financial position and continued growth in both iron ore now taken Rodman article revenues allowed <unk> to maintain its leadership position in the region and does continue generating long term value for our shareholders.

Before closing I would like to provide an update on our strategic expansion opportunities.

The process related to Turks and Caicos tender remains ongoing.

We submitted our bid last year on wireless Alicia continue no resolution has announced subject.

We are still analyzing the potential acquisition of multilayer boards.

In Korea, and the information available and Delta room February transaction details and developing our financial model.

As always the market will be duly informed of any developments and we will be as always continue to focus on value creation.

Thank you again for your time operator, please open the line for questions.

At this time, we will open the question and answer session. If you would like to ask a question. Please press star and one on your telephone keypad and youll be placed into the queue in the order received.

You may remove yourself from the queue at any time by pressing pound and one.

Once again to ask a question. Please press star and one on your phone now.

And we'll take our first question from where Adolfo Ramos of Bradesco Bbl.

Thank you.

For taking my question I have a couple if I may.

Can you talk a little bit about the traffic dynamics that Youre currently experienced international traffic continues to underperform, especially in the VFR routes you mentioned all the immigration status in the U S, but yet when you see capacity deployment and the route development that for example, <unk> is having is targeting those very routes now so.

Do you see a more pronounced recovery towards the end of the year in the next few months and how do you feel about that.

Your guidance for the year.

So that would be my first question I have a second one if I may.

Thank you.

I mean.

We are as sofa or even some deceleration of VFR markets mainly.

We are seeing there.

Gasoline ratio for sure and they're directly words from.

Some of other airports to the U S will happen in the latter had scar or Atlanta.

At the end of <unk>.

Los Angeles for instance.

But also in the routes that go through to be one to the CBS to the U S.

Both of these markets BFS going directly to Azure.

Our market growing through Dewan.

<unk> to the U S. We are seeing acceleration.

That count nearly four.

Some kind of lack of information.

For the VFR market.

If we think for a moment all the passengers flying a plane.

Our CDK for a green card holder.

They have like all the all the all the papers debuted top totally Leo so that it creates some deals.

In our view will be some people I will say.

That will be in place in the short term after the passengers in some way.

Half of our complete understand.

Of the.

Possible.

Strength.

On the microphone policies of the U S. Sublease pressures. So while we are seeing is that.

I believe for the coming months.

Some decrease.

On this specific VFR markets.

But we are seeing and we are optimistic about the coming years, Josh when we review the seat capacity already announced at night by the different companies.

Hi.

So.

Same bap.

We are still.

Optimistic that the recovery of the VFR market will happen on the coming year.

Okay. Thank you.

And just secondly on the commercial side the businesses that you operate are growing at a very rapid clip, which explains the strong performance that we saw on the.

Optical revenue per passenger when you look at the and maybe this is a broader question, but when you look at the different initiatives that you have in the pipeline.

How far off are we from seeing this top line revenue growth stabilizing and growing more in line with the more traditional retail food and beverage businesses.

Good question Ross.

The day, we are seeing.

Double digit growth in almost all our award.

Business line directly operated by GAAP.

We are really proud.

What about all the efforts of our commercial.

The area is doing to maximize the revenue to play with the prices of the products of the carriers.

For sure to manage the cost of this of these services what we are seeing.

On the.

In the coming years is that.

Some of these given that that will continue in that in the higher pace of the rest of the of the commercial business due to the fact that for <unk>. There is new commercial areas that we deploy in the coming.

Sure good years.

As we opened a new terminal business.

Let me now.

Areas. So for instance, as soon as we opened the portal.

Near term we are building, we will see a jump on some of the specific business line.

Also as soon as we opened the risk of the expansion of our terminal buildings in the coming years. So.

In asking Dale turn I will say that we will begin we will continue to see.

Interesting.

The rates of diarrhea.

Rates are growing in the on the directly operated business buyback because we are seeing that we will continue expanding the business.

Business line on different airports.

And in different areas I mean, let's let's for instance thing for a second that our <unk> today, we are just running the <unk>.

<unk> three.

Three months ago, we begin with <unk>.

But for the next 20 months, we will see the FERC.

You are directly operated by GAAP in Pennsylvania.

The same will happen for example, with the hope that we have.

Our plan for a different development of updates in the coming five years, it will give us additional.

Possibly it is there but in terms of in general terms I don't know if I would say that.

The given the directly operated by us.

The Liza and Theyre coming in three to four years, we will grow in a faster pace that theme.

The other business.

Operated by third parties.

Very interesting thank you Ron.

Okay.

And our next question comes from Jeremy Mendez of Jpmorgan.

Good morning household thanks for taking my question.

First one it's a follow up on costs through we will mention in the beginning about.

These additional costs throughout the quarter, just wondering if the level of costs and expenses that we saw.

In the third quarters can be assume it's for the coming quarters.

According to our calculations would probably put you on the lower end.

Your guidance for in terms of EBITDA margin for the year, just wondering if the rationale makes sense.

And the second one is on the MVP maximum tariffs if we can share at what level.

You are as of the end of third quarter and if the base case of increasing prices in early 2006 and potentially at some time in the second half of 2006.

Still the base case.

At this point thank you.

<unk> has sold well related to the cost we believe that.

We now raise the level of costs, but we will see in the following quarters.

It's very important to understand that in the way we increase the facilities in the airports, we increased the headcount activity.

So it is part of that.

Business.

So we will see this level in the <unk>.

Other players.

In terms of the maximum tariff.

I mean first of all talking about the EBITDA margins as you remember we present our guidance for the at the beginning of the year and we are still in our guidance.

Related to the margin.

And the other part related with the maximum tariff.

Yes.

Let's remember that in first of March we have a 15% increase.

Our new passenger fees for all of our domestic and international passengers.

On September <unk>, we increased an additional seven 5% of increase.

For the coming year, we are thinking that on early February of coming year, we will increase again our.

Thanks.

So it will be important too.

To have in mind that for 2026, we will now have in place the effect of <unk> moment of time.

January and February for instance, we have the effect of the 15, 7% decrease.

From March.

In September we have to get.

The increase of the seven 5% of the tariff and duty almost all the year for Fairmount <unk> in December we will have in place the increase of the additional target that will.

Based on current year.

In terms of carriers.

Coming due for the coming year, we will expect on much further.

The amendment of the maximum tariff.

<unk>.

For sure it will be best for you.

Whilst coupled with deflation.

Brian.

The equation on the.

Second what happened with the with the dollar.

Change right so.

Out there.

I will say that.

We are passing.

Passing through all the changes on the on the on the passenger fees too to help develop flexible fulfillment Maximus Barry.

We will see a coming year that will be a I would say that we will have an important increase.

On that specific line.

And just to complement.

And answering your question related to the margin.

We would be very close to the guidance release.

Okay. That's clear thank you both I appreciate it.

Okay.

And our next question comes from Jim <unk>.

Organ Stanley.

Hello.

So what does that kind of a thank you for taking my question.

Just on the Motiva.

Airport assets.

I know it probably is limited to what you can comment but still.

Hypothetically.

Are you planning to go for all of the assets or maybe do a partnership.

With some of the other potential bidders.

Uh huh.

And if you're doing if you're going alone for all of the assets.

Would you be raising equity or mainly finance it via debt.

Thank you.

Once again I mean, you are right now working on the different options.

I would tell you that today, we are not.

Fully deciding which which will be the way that we will.

The final bidding for this opportunity.

We are operating four filings or partnership or avoid going along.

This fits.

What is important is that we are working as always.

Is really a disciplined way too.

We reviewed a number of thinking what's going to be created for our company and for sure in the case that we continue with this opportunity we are thinking that all the all the all the money will come from from for liver Ash.

So I mean, I will say that these are our our main text today on this on the on this specific opportunity of multiyear we are still working.

And we are opening up in four different ways of participating that means a lot.

John.

Or with some kind of partnership and all that money will come from the Internet.

Perfect Alright.

Thank you.

Our next question comes from Gabriel Himmelfarb Bank of Nova Scotia.

Hi, Good morning, just a quick follow up question can you repeat the tariff increase that are expected for 2026 and <unk>.

If you are already well or would you expect to reach will be 100% maximum tariffs. Thank you.

Okay.

For the coming years, we are still working on which we're not.

Increases.

I mean.

<unk>.

<unk> is underway because we need to work on.

Procedure.

In fact with the Federal agency.

So we our job on that.

We are expecting that it will happen.

In February.

The other part is with all the change that we're expecting for 2026 would be I mean, depending for sure.

Pension on the exchange rate, we are going to be around between 93% to 97% of fulfillment of their appetite I mean at the end of the of the of the 26.

And they are mainly the main the main pumps in pairs of tariff.

So having 5% at the end of 2026th right.

Gary.

And the rents of that of that number.

Okay. Thank you.

Okay.

As a reminder, if you would like to ask a question. Please press star and one on your phone now and our next question comes from Jorge <unk> of GBM.

Hi, Good morning, Thank you for taking my questions.

Regarding the potential acquisition of Motiva port portfolio in Brazil could you share any color on the expected timeline along with the estimated investment sites on the main rationale behind your interest.

And Additionally, could you provide some context on how Brazil, Brazil's concession structure works.

It differs from the Mexican model. Thank.

Thank you.

Okay.

First was the rationale.

Diversification.

Among our main.

Our main business at the airports.

The therefore seamlessly opportunity of carrier Lee do you have more once per year around the world So for sure.

Therefore operators or would it would be interesting for us to analyze any any of these opportunities.

Martina subgroup of FERC.

That have different concessions different countries and.

And difference I would say.

Framework of concession for Us Doug.

And a really quick way we have.

For groups of airports in Brazil different each one of them was different.

Roots of concession.

Also.

In the in the back half.

<unk> Airport.

Also <unk>.

And could outside airports.

What we're seeing in all of our peers for gap is.

We will have.

A potential opportunity to increase the value of those companies.

Two different ways the firm related with commercial revenues.

Applying our our revenue model.

And through the commercial revenues and the second was related with the discipline of the costs within both of these will be.

Interesting area to improve both pure to bring all the experience of GAAP of the reserve for that.

And we are really in that I would say finally on analyzing a piece of opportunity today, we don't have.

A complete view.

We'll participate in the lab.

The flat part of this bidding process. So we are continuing on our hedging related with the timeline. It will say that this is.

I would say.

It's <unk>.

<unk>.

Our project.

Headline is rolling directly by Motiva.

<unk> nine expected back underneath of November.

Could happen.

The.

The presentation of the final.

The funnel.

Number.

But again it will depends completely on the seller because existed this process at.

On the back half Dyffryn momentum changes of the timeline at least for the case of gap, we're seeing that for the needs of November we will make our final decision related with this with this transaction.

Okay.

Thank you.

Thank you as a reminder.

You can also ask questions through the webcast.

Please if you are on the webcast go ahead and submit your questions now.

And we have a question from Edison.

Hum.

From <unk>.

Yeah.

Yes. Good morning, Thank you for taking my questions.

Two of them.

I was wondering if you can give us more call. It about these new routes from those tablets.

Or even looking forward there is a possibility that other airlines and connect between moscato sort of maybe lay out the two central and many talented poised subs or even South America.

Could you give us I don't know if its possible to give us the name of the airline will be operated Los Cabos to Panama.

And.

The second question is regarding to the cargo unbundled warehouse.

I was wondering if you have.

Similar initiatives.

Or initiated relating to new buildings or even with the Master development plan looking ahead similar to the Clinton beverage in terminal buildings, and so on because it seems that cargo and bonded warehouse seats in that group.

Pace for the following quarters.

Thank you.

Okay.

Thank you.

Okay.

Carlos.

It is important it's really interesting to see for the first time a direct operation.

South America.

Perfect Nope.

On the part of our backlog is a great opportunity to capture all the trucking going beyond the <unk>.

Connect to the rest of South America, and Central America. So I think it's a great opportunity for Carlos.

End of the day something that complete new.

Markets are in a completely new way of opportunity around that for.

For the case of Porto against Us for the last I would say.

Almost at least nine years for probiotics sites connected directly to Panama.

The copper we have.

13.

We have a class of services are coming back with our list the number of frequencies youll see some T cells, but the dividend today.

What we know about the direct connection with Panama.

Is that we keep the hopper Panama opens opportunities Florida.

Drove a broader market related with all with the John.

In South America so.

So I think that net awards.

Virginia equal travels to meet a completely new market.

Awesome.

To that destination.

Hi, Ashwin this is <unk>.

With your second question.

Regarding bonded warehouses.

Regulated under the Master development program.

It has nothing to do with our new terminal partners.

Interested to.

Replicate this weakness in other airports.

So we're encouraged with the opportunity of markets in those in those efforts. So it is a great business is less a greater position.

The following.

Opportunities in the future in other airports.

Okay. Thank you so much.

Well, we have some questions from the webcast.

Barry Tula from Rafael <unk> from UBS.

One of them left already.

Explain the only one that we have at it I will now take our tariff decline quarter over quarter could you elaborate on the main drivers behind this decrease.

Hi, Andrew this is Don.

Yes, it was.

Due to the big component in the in the midst of passive strategies, we have in our airports international and rapid decline in dose that will have.

Hi, yes.

Passenger.

Chinese therefore.

Affect directly today due to the revenue and also the.

The.

Exchange rate reached a debate the peso appreciated.

In this in this quarter are around $4 six person therefore that.

The facility.

At <unk> revenue.

But last year declined slightly.

Thank you.

And well.

We have another question from Daniel <unk> from asthma.

And the question is what is the expected effect of next year well cap in traffic figures.

I mean, it's hard to know because at the moment, we have like different scenarios related with what could be the impact of the on the on the World Cup in specific NY Huntington different power airports.

I think in that for sure while Ohio with their four games will have a positive effect.

And whether that will be through the Cvs will be connected to some update.

Games in South, California, and Southern California, We're seeing also that could have some positive effect today is really difficult to understand how big could be the effect of that and will depend.

Of the lottery related with the with you defer and selection that will be.

<unk> for the for the World Cup so.

Beginning in coming year, it will be the lottery of national teams, and we will know which could have EBIT matches that will happen in Guadalajara.

That moment, which will have a more clear way to prepay. Some some scenarios of possible increase on profit.

The numbers that the <unk> from the government and they have announced is that could be from the case of Guadalajara something that goes from.

300000 for up to half a million passengers that could come today to the CD book is really for the moment, it's unclear until we know which national teams will be allocated in Guadalajara.

Well. Thank you we have another one in the webcast from Enrique.

Advanced wound <unk>. He is asking could you provide even further details on our commercial area, which will come online in the next few years and do you have any longer term vision for what level of non aeronautical revenue per Pax may rates.

Okay.

As Youll remember, we have a target on that we will be for 2029.

Our terminal buildings.

GAAP in Mexico will increase around 55% in terms of of the.

Square meters.

So for sure we will have a great opportunity to deploy additional commercial offer on those.

For those new terminal buildings and the expansion of terminal buildings.

The biggest one will come from three different airports.

Forgive her effort, we have opportunity for improved the commercial.

<unk>.

The business in turnkey.

Paul.

Really there are three numbers. The first one is the terminal to a wireless.

That will be updated for 2029 30 39.

Venezuela is part of I guess that that will be.

Second billing that we offer for January or the first quarter of 2007.

That's very one is the expansion of the <unk> effort that will be ready for being operational in 'twenty eight.

And the last one is the expansion of the terminal building on famous Carlos that will be an aberration for 'twenty.

Mainly.

In that in the room has a great.

A month of opportunities to expand commercial business.

So yes.

For the end of the year.

The Master plan, we will have.

Like the big number this expansion that we did.

55% of increase in square meters network and mobility and in that way, we will have that reflection on opportunities to increase our commercial spaces.

And our tenants.

Okay.

And we have a question from Alan Macias of Bank of America.

Hi, good morning, and thank you for the call.

Just a question on international traffic if you can just go.

Through the four main airports, especially like you have to have been quite weak year to date.

Yes.

If you can go through the negative impacts.

For international traffic. Thank you.

Thank you I will say that in this too.

You too.

The first nine months.

We are seeing that increase decrease on passengers mainly on international.

Our Tau pathology ARPA.

<unk>.

The good news there is that we are seeing.

A much better winter, we are reviewing the number of seats coming from from mainly Canadian markets in some more different altura insurance.

Our U S routes that are coming back with additional seats or towards the winter season of the year that will give us a much better.

First acquire of the update of the coming GM portfolio attack.

But on the first nine months, what we are seeing is a decrease from passengers mainly.

Due to the increase of capacity for American Airlines, mainly in the case of.

Portfolio attack.

Some other effect comment from St.

But in general terms, what we're seeing in my yard space.

A decrease in Boston versus you say.

5% on this year on the international market.

But we are optimistic about the coming year, because we are seeing the coming back of some of these.

<unk>.

And this winter season.

The addition, now I will say increase.

Passengers from Canadian capacity, we're also.

Revenues for our portfolio.

Yeah.

Okay.

Thank you.

Yeah.

And it appears we have no further questions at this time I will now turn the program back to our presenters for closing remarks.

Okay.

Thank you once again for joining US today, please contact our Investor relations team with any additional questions you may have.

Have a great day and thank you for your attention.

Okay.

Thank you this does conclude gaps conference call.

Thank you for your participation you may disconnect at any time.

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