Q1 2026 Grupo Aeroportuario del Pacifico SAB de CV Earnings Call

April 22, 2026

Speaker #1: 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.

Operator: 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. Now it's my pleasure to turn the call over to GAP's Investor Relations team. Please go ahead.

Speaker #1: Now it's my pleasure to turn the call over to GAP's investor relations team. Please go ahead.

Speaker #2: Thank you, and welcome to GAP's first quarter 2026 conference call. Prior to introducing GAP's management team, I'd like to take a few moments to mention the forward-looking statement.

Alejandra Soto Ayech: Thank you, and welcome to GAP's Q1 2026 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 statement. Please be advised that any statements 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 results to materially differ from current expectations. For a complete note on forward-looking statements, please refer to the quarterly report issued on Monday. 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.

Speaker #2: As described in the financial disclosure statement, please be advised that any statements made today may not account for future economic circumstances, industry conditions, the company's future performance, or financial results.

Speaker #2: As such, any information discussed is based on several assumptions and factors. That could change causing actual results to materially differ from current expectations. For a complete note on forward-looking statements, please refer to the quarterly report issued on Monday.

Speaker #2: Thank you for your attention. Our speakers today from GAP are Mr. Raul Revuelta, Chief Executive Officer; and Mr. Saul Villarreal, Chief Financial Officer. At this time, I'll turn the call over to Mr. Revuelta for his opening remarks.

Speaker #3: Thank you, María. Good morning, everyone, and thank you for joining us today. Empty to report that GAP delivered a solid start to the year on results as I discussed the company operational and financial highlights for the first quarter of 2026.

Raúl Revuelta Musalem: Thank you, Maria. Good morning, everyone, and thank you for joining us today. I'm here to report that GAP delivered a solid start to the year on results, as I discuss the company operational and financial highlights for Q1 2026. Despite the challenging traffic environment, our performance remains strong, supported by the resilience of our aeronautical revenues, as well as the continued growth of the non-aeronautical business, which helped to offset the more complex traffic environment. Let me begin by discussing passenger traffic. Total passenger traffic across GAP's 14 airports decreased by 5.5% in Q1 compared to the same period of 2025. These decreases reflect various factors that impacted the Mexican, as well as the Jamaican, operations. In the Jamaican operations, we continue to face headwinds from Hurricane Melissa.

Speaker #3: Despite the challenging traffic environment, our performance remained strong, supported by the resilience of our nautical revenues as well as the continued growth of the new aeronautical business, which helped to offset the more complex traffic environment.

Speaker #3: Let me begin by discussing passenger traffic. Total passenger traffic across GAP 14 airports decreased by 5.5% in the first quarter compared to the same period of 2025.

Speaker #3: This decrease reflects various factors that impacted the Mexican as well as the Jamaican operations. In the Jamaican operations, we continue to face headwinds from the hurricane Melissa, despite this, the recovery of hotel capacity has been better than expected along the main tourist corridor.

Raúl Revuelta Musalem: Despite this, the recovery of hotel capacity has been better than expected along the main tourist corridor. It is important to note that while as of today, passenger volume has not yet reached pre-storm levels, trends indicate that we will regain these levels by Q4 of this year. Traffic declines in Mexico were largely driven by temporary disruptions, such as the security incidents in Jalisco during the last week of February. This event negatively affected the perception of safety and key leisure destinations in Mexico, such as Puerto Vallarta and Cabo, thereby softening demand at these airports. These dynamics extended to the typical high season month of March, affecting the spring break traffic and causing demand to decline. Tijuana was also impacted given its stronger reliance on cross-border travel, as roughly 75% of CDMX users are US-based passengers accessing domestic flights to Mexican tourist destinations.

Speaker #3: It is important to note that while as today, passenger volume has not yet reached pre-term levels. Trends indicate that we will regain this level by the fourth quarter of this year.

Speaker #3: Travel declines in Mexico were largely driven by temporary disruptions, such as the security incidents in Jalisco during the last week of February. This event negatively affected the perception of safety and key leisure destinations in Mexico, such as Puerto Vallarta and Los Cabos.

Speaker #3: Thereby, softening demand at these airports. This dynamic extended to the typical high season month of March, affecting the spring break traffic, and causing demand to decline.

Speaker #3: Iguana was also impacted given its stronger reliance on a cross-border travel as roughly 75% of CVX users are US-based passengers accessing domestic flights to Mexican tourist destinations.

Speaker #3: Additionally, global macroeconomic volatility impacted operations, this included geopolitical tension and fluctuating fuel prices, which pressured airline operation costs, prompting a realignment of capacity to maintain efficiency.

Raúl Revuelta Musalem: Additionally, global macroeconomic volatility impacted operations. This included geopolitical tension and fluctuating fuel prices, which pressured airlines' operating costs, prompting a realignment of capacity to maintain efficiency, as well as the possibility of economic downturn. Now moving on to the revenues. Total revenues increased by 2.8% compared to Q1 2025. Aeronautical revenues for the group grew by 3.9%, but the Mexican increase was 9.3%, primarily driven by the implementation of the maximum tariff for the 2025-2029 regulatory period in Mexico, which are linked to the highest level of the CapEx investments in the history of the company. Non-aeronautical revenues increase by 6.1%, supported by strong performance in our Mexican operation, reaching 10.7%, particularly in business operated directly by GAP. This includes the bonded warehouse business, which represents around 21% of total non-aeronautical revenues.

Speaker #3: As well as the possibility of economic downturn. Now moving on to the revenues, total revenues increased by 2.8% compared to the first quarter of 2025.

Speaker #3: Aeronautical revenues for the group grew by 3.9%, but in Mexico increased by 9.3%, primarily driven by the implementation of maximum tariffs on the 2025-2029 regulatory period in Mexico, which are linked to the highest level of CAPEX, the CAPEX investments in the history of the company.

Speaker #3: In aeronautical revenues, increases by 6.1% supported by strong performance in our Mexican operations, reaching 10.7%, particularly in business-operated directly by GAP. This includes the abundant warehouse business, which represents around 21% of total new aeronautical revenues.

Speaker #3: This performance underscores the resilience of our business model at the continued success of our increasingly diversified revenue base. Cost of service increased by 6.5% compared to the same period last year, mainly due to the higher personnel costs increased security and maintenance expenses, and the expansion of operational areas.

Raúl Revuelta Musalem: This performance underscores the resilience of our business model and the continued success of our increasingly diversified revenue base. Cost of service increased by 6.5% compared to the same period last year, mainly due to the higher personnel costs, increased security and maintenance expenses, and expansion of operational areas. We work hard to offset this pressure by maintaining rigorous cost control throughout the organization. As a result, EBITDA increased by 6.4%, reaching MXN 6 billion, with an EBITDA margin of 68.3%, reflecting both revenue growth and operational efficiency. This despite the reduction of additional concession fee in Montego Airport due to the decrease in passenger traffic and revenues, which is a temporary effect.

Speaker #3: With work hard to offset this pressure but maintain a rigorous cost control, throughout the organization. As a result, EBITDA increased by 6.4%, reaching $6 billion with an EBITDA margin of 68.3%.

Speaker #3: Reflecting both revenue growth and operational efficiency. This despite the reduction on additional concession fee in Montego Airport due to the decrease in passenger traffic and revenues, which is a temporary effect.

Speaker #3: Regarding our financial position, GAP maintains a strong liquidity position with a cash and cash equivalents of $23.2 billion during the first quarter of 2026.

Raúl Revuelta Musalem: Regarding our financial position, GAP maintains a strong liquidity position with cash and cash equivalents of MXN 23.2 billion during Q1 2026, mainly due to the senior bond issuance of MXN 10.7 billion on 31 March 2026. Proceeds we allocate towards our strategic acquisition of 25% of CBX, as well as capital expenditures. Furthermore, during the quarter, we refinanced existing debt, optimizing our balance sheet and strengthening our overall financial flexibility. In terms of CapEx, we continue to advance our investment program under the current Master Development Plan, deploying the required MXN 1.8 billion, focusing on enhancing capacity as well as the passenger experience across all our airports. I would like to briefly update you on our strategic initiatives. As you know, in December 2025, our shareholders approved the business combination related to the CBX, as well as internalization of the technical assistance services.

Speaker #3: Mainly due to the historic bond issues of 10.7 billion on March 31. Processed we allocated towards our strategic acquisition of 25% of CVX, as well as capital expenditures.

Speaker #3: Furthermore, during the quarter, we refinanced existing debt optimizing our balance sheet and strengthening our overall financial flexibility. In terms of CAPEX, we continue to advance our investment program under the current master development plan, deploying the required $1.8 billion focusing on enhancing capacity as well as the passenger experience across all our airports.

Speaker #3: I would like briefly to update you on our strategy initiatives. As you know, in December 2025, our shareholder approved the business combination related to the CVX, as well as the internalization of the technical assistance services.

Speaker #3: This transaction still in the process of being formalized. Once completed, it will be consolidated in our financial statements and we expect the conclusion of this process to take place during the second quarter of this year.

Raúl Revuelta Musalem: This transaction is still in the process of being formalized. Once completed, it will be consolidated in our financial statements, and we expect the conclusion of this process to take place during Q2 of this year. We believe this initiative will strengthen our long-term growth platform, specifically by promoting our market cross-border passengers profile, as well as unlocking additional commercial opportunities. As we move into the rest of the year, we remain mindful of the macroeconomic environment and short-term traffic volatility. Despite this, we believe structural demand remains strong, supported by the solid fundamentals of our market. We remain confident that our diversified asset portfolio, strong financial position, and disciplined execution to strategically position GAP well to navigate near-term challenges while continuing to generate long-term shareholder value.

Speaker #3: We believe this initiative will strengthen our long-term growth platform, specifically by promoting our market to cross-border passenger profile, as well as unlocking additional commercial opportunities.

Speaker #3: As we move into the rest of the year, we remain mindful of the macroeconomic environment and short-term traffic volatility. Despite this, we believe structural demand remains strong supported by the solid fundamentals of our market.

Speaker #3: We remain confident that our diversified asset portfolio, strong financial position, and disciplined execution to strategy position GAP well to navigate near-term challenges while continuing to generate long-term shareholder value.

Raúl Revuelta Musalem: Later today, we will hold our ordinary shareholders meeting in which we will propose a dividend payment of MXN 20.8 per outstanding share during the following 12 months, among other items. Thank you again for your time. Operator, please open the line for questions.

Speaker #3: Learning today, we will hold our ordinary shareholders' meeting and which we will propose a dividend payment of $20.8 per outstanding share during the following 12 months, among other items.

Speaker #3: Thank you again for your time, Operator. Please open the line for questions.

Speaker #2: Yes, if you'd like to ask a question, please press star one on your telephone now and you'll be placed into the queue in the order received.

Operator: Yes, if you'd like to ask a question, please press star one on your telephone now, and you'll be placed into the queue in the order received. You may remove yourself at any time by pressing pound one. As a reminder, participants joining via the webcast may submit questions at any time using the Q&A function. We'll pause for a moment to form our queue. Our first question over the telephone comes from Rodolfo Ramos of Bradesco BBI.

Speaker #2: You may remove yourself at any time by pressing pound one. And as a reminder, participants joining via the webcast may submit questions at any time using the Q&A function.

Speaker #2: We'll pause for a moment to form our queue. Our first question over the telephone comes from Rodolfo Ramos of Bradesco BBI.

Speaker #4: Thank you, Raúl Saúl, Ale and team, for taking my question. My question is on the aeronautical part of the business, perhaps it's a two-parter here.

Rodolfo Ramos: Thank you, Raúl, Saúl, Ale, and team for taking my question. My question is on the aeronautical part of the business, because it's a two-parter here. After this tariff implementation, can you let us know what your current maximum tariff compliance is, and how should we think about it towards year-end? Secondly, on the traffic outlook that you have, there's a host of domestic, global factors at play negatively impacting demand for air travel. Just can you frame it a little bit in terms of your 2% to 6% guidance? How you think about it, and when do you think we could see a more meaningful recovery there? Thank you.

Speaker #4: After this tariff implementation, can you let us know what your current maximum tariff compliance is and how should we think about it towards year-end?

Speaker #4: And secondly, on the traffic outlook that you have, there's a host of domestic global factors at play, negatively impacting demand for air travel. Just can you frame it a little bit in terms of your 2 to 6 percent guidance?

Speaker #4: I mean, how you think about it and when do you think we could see a more meaningful recovery there? Thank you.

Speaker #5: Thank you, Rodolfo. First, related with maximum tariff, we are between 92 and 93 percent of the fulfillment. We still haven't implemented additional air passengers' fee changes on the for the summer in two of our airports.

Raúl Revuelta Musalem: Thank you, Rodolfo. First, related with maximum tariff, we are between 92% and 93% of the fulfillment. We are still having to implement additional air passenger fee changes for the summer in two of our airports, Vallarta and Cabos. We're still on the track of what we say originally will be close to 95% for the end of this year. For sure, what is related with maximum tariff, we need to take in account the exchange rate, that at the end of the day, an important part of that, of the revenues, are denominated in dollars for the case of passenger TUA. The other part related with traffic, I would say that today is difficult to return what could happen on the traffic in terms of the Iran conflict and the fuel prices.

Speaker #5: Vallarta and Cabos, so we're still on the track of what we say originally will be really close to 95% for the end of the years.

Speaker #5: For sure, in all what is related with maximum tariff, we need to take in account the exchange rate that at the end of the day, an important part of that, of the revenues are denominated in dollars for the case of passenger tour.

Speaker #5: The other part related with traffic, I would say that today's difficult on the what will happen on the traffic in terms of the Iran, world, and the fuel prices, it would say that it's difficult to have today a more clear view of what could happen on coming months and how this could be the decrease or the possible decrease or the adjustment on offer of seats in the market.

Raúl Revuelta Musalem: I would say that it's difficult to have today a more clear view of what could happen on upcoming months, and how big could be the decrease or the possible decrease of the adjustment on offer of seats in the market. The other part that, at least we are still seeing, is a summer that will come, at least for the leisure, with some additional seats. What we are expecting is that on past years during some of this kind of geopolitical crisis, the US passengers tend to fly more over the neighbor area, or the neighbors could be Cabos or Vallarta, rather than go to Europe or other kind of more long-haul travel. What we are expecting in some way is some additional seats for the summer on those markets.

Speaker #5: But the other part that at least we are still seeing is a summer that will come at least on the leisure with some additional seats.

Speaker #5: What we are expecting that on past years during some of these kind of geopolitical crises the US passengers trying to fly more over the neighbor in the area of the neighbor as could be Cabos or Vallarta rather than go to Europe or other kind of more long-haul travel.

Speaker #5: So what we are expecting in some way is some additional seats for the summer on those markets. But in general, terms for the moment, we keep without variance what we saw on the pretty first moment as our guidance for the year.

Raúl Revuelta Musalem: In general terms, for the moment, we keep without variance what we saw at the very first moment as our guidance for the year. We think that some of the temporary effect that the security could bring in terms of decrease of passengers, it will be completely behind for the summer. Also, we are seeing better than we expect the recovery of Montego Bay hotel capacity. For sure, for Q2, we will review, if that is the case, our guidance for the traffic.

Speaker #5: We think that some of the temporary effect that could the security could bring in terms of decrease of passengers will be completely behind for the summer.

Speaker #5: And also we are seeing a better that we expect in recovery of the Montego Bay hotel capacity. But for sure, for the second quarter, we will review if that is the case, our guidance for the traffic.

Speaker #4: Thank you, Raúl.

Rodolfo Ramos: Thank you, Raúl.

Speaker #2: Next, we'll move on to Alan Macias of Bank of America.

Operator: Next, we'll move on to Alan Macias of Bank of America.

Alan Macias: Hi, good morning, and thank you for the call, Raúl. Just a question on the CBX and TA transaction. What is pending for it to be completed? I guess, should we expect it to be consolidated in May or in June? Thank you.

Speaker #6: Hi, good morning and thank you for the call, Raúl. Just a question on the CVX and TA transaction. What is pending for it to be completed and I guess should we expect it to be consolidated in May or in June?

Speaker #6: Thank you.

Speaker #5: Thank you, Alan. We are doing our best for being consolidating the result during May. So yeah, we are adjusting the middle of that. But yeah, that will be our target.

Raúl Revuelta Musalem: Thank you, Alan. We are doing our best for being consolidated the result during May. Yeah, we are just in the middle of that. Yeah, that will be our target.

Speaker #4: Thank you.

Alan Macias: Thank you.

Speaker #2: Next, we have Gilead Mementos of JPMorgan.

Operator: Next, we have Guilherme Mendes of JP Morgan.

Speaker #7: Yeah, good morning. Thanks. How is Raúl? Thanks for taking the question. Two questions. The first on the commercial front, first of all, congrats on the strong results during the first quarter of the year.

Guilherme Mendes: Yes, good morning. Thanks. How are you, Saúl? Thanks for taking the question. Two questions. The first one on the commercial front. First of all, congrats on the strong results during Q1 of the year. Just wondering what is behind the very strong cargo performance, if there's anything particular to GWTC or something else, and if we can assume these numbers as sustainable going forward. The second question is on the capital allocation. Now, following the upcoming conclusion of the CBX transaction, I understand the Turks and Caicos was put on hold as well, if there's anything else that you'll be evaluating on the inorganic side of growth opportunities. Thank you.

Speaker #7: Just wondering what is behind the very strong cargo performance if there's anything in particular to GWTC or something else. And if we can assume these numbers as sustainable going forward.

Speaker #7: And the second question is on the capital allocation. So now following the upcoming conclusion of the CBX transaction, I understand the Turks and Caicos was put on hold as well.

Speaker #7: If there's anything else that you'll be evaluating on the inorganic side of growth opportunities. Thank you.

Speaker #5: Thank you, Gilead Mementos. I mean, related to the results and specifics on the bonding and warehouse business, it is important to have in mind that this business is mainly moved by the cargo.

Raúl Revuelta Musalem: Thank you, Guilherme. I mean, related to the results, and specifics of the bonded warehouse business, it is important to have in mind that this business is mainly moved by the cargo. In the case of Guadalajara and all the central area of Mexico, we are seeing a really important, more than 20% increase of cargo of high value on the area, related mainly by electronics. Foxconn, for instance, has a really big movement on Guadalajara for an additional plant. What we are seeing for the last year is after the announcement of specific tariffs for China and for some different countries of Asia, we see a shift on production on some electronic parts from Asia to Guadalajara area mainly. We are seeing this really important increase in volumes of cargo, but not only volumes, but high value of the cargo.

Speaker #5: And in the case of Guadalajara and all the decentral area of Mexico, we are seeing a really important more than 20% increase of cargo of high value on the area.

Speaker #5: Related maybe by electronics, Foxconn, for instance, has a really big movement on Guadalajara for additional plants. So what we are seeing for the last year is after the announcement of specific tariffs for China and for Asia, some different countries of Asia, we see a shift on production on some electronic parts from Asia to Guadalajara area mainly.

Speaker #5: So we are seeing this really important increase in volumes of cargo, but not only of volumes, but value of the cargo. For this bonded warehouse business, you need to take into account that revenue comes for a mix of volume and value of the cargo that you are moving.

Saúl Villarreal García: For this bonded warehouse business, you need to take into account that really it comes from a mix of volume and value of the cargo that you are moving. What we are seeing is that, at the end of the day, all these changes on tariff bring some or shift some of the production from Asia to central Mexico and mainly to Jalisco and Guadalajara area. Well, hi, Guilherme. In terms of capital allocation, as you know, we are looking for some opportunities all the time. So far, we don't have nothing more important or relevant than CBX consolidation and integration to the consolidated financial statement. For now, we don't have any other project or major project. We will let the market know as soon as we have something on the table.

Raúl Revuelta Musalem: For this bonded warehouse business, you need to take into account that really it comes from a mix of volume and value of the cargo that you are moving. What we are seeing is that, at the end of the day, all these changes on tariff bring some or shift some of the production from Asia to central Mexico and mainly to Jalisco and Guadalajara area.

Speaker #5: So what we are seeing is that at the end of the day, all these changes on tariffs bring some or shift some of the production from Asia to the central Mexico and mainly to Jalisco and Guadalajara area.

Saúl Villarreal García: Well, hi, Guilherme. In terms of capital allocation, as you know, we are looking for some opportunities all the time. So far, we don't have nothing more important or relevant than CBX consolidation and integration to the consolidated financial statement. For now, we don't have any other project or major project. We will let the market know as soon as we have something on the table. Turks and Caicos was canceled by the government, so we will not continue on that anymore. So far, we don't have any other relevant project.

Speaker #5: Well, hi, Gilead Mementos. In terms of capital allocation, as you know, we are looking for some opportunities all the time. So far, we don't have nothing more important or relevant than CVX conclusion and integration to the consolidated financial statements.

Speaker #5: So for now, we don't have any other project or major project. We will let know to the market as soon as we have something on the table.

Raúl Revuelta Musalem: Turks and Caicos was canceled by the government, so we will not continue on that anymore. So far, we don't have any other relevant project. Yeah. Complementing just the answer of Saúl, for sure, we have an important focus on the development of new business in our airports. I would say we are working in two different projects for hotels in airports of Mexico, of our airports in our net. And for sure, the big focus on continue working on the efficiency of the margins in all of our directly operated by us business. For sure, we will continue to see and review different kind of opportunities to M&A, but also we have a big focus on how to increase the efficiency of our directly operated by us business.

Speaker #5: To CVX, last canceled by the government. So we will not continue on that anymore. And so far, we don't have any other relevant project.

Speaker #5: Yeah. But complementing just the artwork of Saul, for sure we have an important focus on the development of new business in our airports. I will say we are working on two different projects for hotels and airports of Mexico, of our airports in our net.

Raúl Revuelta Musalem: Yeah. Complementing just the answer of Saúl, for sure, we have an important focus on the development of new business in our airports. I would say we are working in two different projects for hotels in airports of Mexico, of our airports in our net. And for sure, the big focus on continue working on the efficiency of the margins in all of our directly operated by us business. For sure, we will continue to see and review different kind of opportunities to M&A, but also we have a big focus on how to increase the efficiency of our directly operated by us business.

Speaker #5: So for sure, the big focus on continued working on the efficiency of the margins in all of our directly operated by us business. So for sure, we will continue to see a review different kind of opportunities to M&A but also we have a big focus on how to increase the efficiency of our directly operated by us business.

Speaker #2: Amazing. Very clear. Thank you both.

Guilherme Mendes: Amazing. Very clear. Thank you both.

Speaker #4: From Itaú Unibanco, we have Pablo Ricalde.

Operator: From Itaú Unibanco, we have Pablo Ricalde.

Pablo Ricalde: Hi, good morning, good afternoon. I have one question on the cost side. We saw depreciation expense remained flattish year over year. I just want to understand why, despite all the CapEx you made last year, depreciation remained stable year over year.

Speaker #6: Hi, good morning. I have one question on the cost side. So we saw depreciation expense remain flattish year by year. So I just want to understand why despite all the capex you made last year, depreciation remains stable year by year.

Speaker #5: Well, hi, Pablo. This is Saul. Well, basically, we are aligned. We don't have any other major project capitalized and depreciated. Also, as you may know, we have more than 205 years of concessions.

Saúl Villarreal García: Well, hi, Pablo. This is Saúl. Well, basically we are aligned. We don't have any other major project capitalized and depreciated. Also, as you may know, we have more than 25 years of concession. The major projects that were capitalized and were depreciated during the last years were interrupted due to the term of the depreciation period. The net effect of the offset of the increase in depreciation, net of those assets that were already 100% depreciated.

Speaker #5: So the major projects that were capitalized and were depreciated during the last years were interrupted due to the term of the depreciation period. That's the net effect of the offset of the increase in depreciation.

Speaker #5: Net of those assets that were already 100% depreciated.

Speaker #4: Okay, Saul. Thanks a lot.

Pablo Ricalde: Okay, Saúl. Thanks a lot.

Speaker #2: Next, we have Gabriele Himmel-Farbe of Scotiabank.

Operator: Next, we have Gabriele Gygli of Scotiabank.

Speaker #4: Well, two quick questions. First, are you seeing any meaningful capacity movements from airlines mainly domestic or perhaps low-cost US airlines? Given the rise of fuel prices and perhaps the what happened in Jalisco, in the past months.

Gabriele Gygli: Two quick questions. First, are you seeing any meaningful capacity movements from airlines, mainly domestic or perhaps low-cost US airlines, given the rise of fuel prices and perhaps what happened in Jalisco in the past month? My second question is about the CBX. I think it was financed 25% in Mexican pesos. Why was the logic of doing financing in pesos rather than in US dollars? Thank you very much.

Gabriele Himelfarb: Two quick questions. First, are you seeing any meaningful capacity movements from airlines, mainly domestic or perhaps low-cost US airlines, given the rise of fuel prices and perhaps what happened in Jalisco in the past month? My second question is about the CBX. I think it was financed 25% in Mexican pesos. Why was the logic of doing financing in pesos rather than in US dollars? Thank you very much.

Speaker #4: And my second question is about the CBX. I think it was financed 25% in pesos. Mexican pesos. Why was the logic of being financed in pesos rather than in US dollars?

Speaker #4: Thank you very much.

Speaker #5: Thank you, Gabriele. First, from the side of the seat capacity of airlines, let me it is important to separate the two possible effects. The first one related with that we are not seeing any kind of structural change on the seat capacity on that area.

Raúl Revuelta Musalem: Thank you, Gabriele. First, on the side of the seat capacity of airlines, it is important to separate the two possible effects. The first one related with the security concerns, I would say that we are not seeing any kind of structural change on the seat capacity on that area. Related on the fuel cost, on what would be the possible reaction or capacity movement of airlines, for sure it's something that's still on the table in some way. For the moment, we are seeing some decrease in capacity, at least not so relevant today, but we are seeing the cut of some services. For instance, Interjet just announced the cut of some services on Guadalajara. We are seeing some decrease on services on Tijuana also, in Cancún.

Speaker #5: But related on the fuel cost, on what would be the possible reaction or capacity movement of airlines, for sure it's something that still on the table in some way.

Speaker #5: For the moment, we are seeing some decrease in capacity, today. But we are seeing the cut of some services for instance, just announced the cut of some services on Guadalajara.

Speaker #5: We are seeing some decrease on services on Tijuana also in Cancun. So I would say that clearly to have a perfect view of what could happen, on this level of close to 110 dollars per barrel of oil, I would say that if you see, for instance, the price on 2022, it was just close of the same level and we don't see on that moment decrease on capacity.

Raúl Revuelta Musalem: I would say that it's early to have a perfect view of what could happen on this level of close to $110 per barrel of oil. I would say that if you see, for instance, the price on 2022, it was just close of the same level, and we don't see on that moment a decrease on capacity. What's still happening is the openings of different routes. For instance, Volaris announced the new routes to Guadalajara to Mazatlán, or Guadalajara to Zacatecas, Guadalajara to San Luis. We are still seeing additional capacity, but for sure, the movement of decrease of capacity due to the cost of the fuel is still on the table.

Speaker #5: What's still happening is the openings of different routes. For instance, Volaris announced the new routes to Guadalajara to Mazatlán or Guadalajara to Zacatecas, Guadalajara to San Luis.

Speaker #5: So we are still seeing additional capacity, but for sure it's the moment of decrease of capacity due to the cost of the fuel is still on the table.

Raúl Revuelta Musalem: We need to, in some way, understand how long it could take to, in some way, normalize the price of the fuel, and on the other hand, how important could be the resilience on the demand for the pass-through of the fuel price pick-up into the ticket, to the airfare. At least for the moment, we are not seeing an important decrease in capacity. I would say that we are still seeing an increase due to the fact of new routes. Hi, Gabriele. Related to your second question, we decided to take advantage of the level of the exchange rate. As you may know, we are in the lowest levels in the exchange rate. The appreciation of the peso is playing out in our favor. The idea is to take on long-term debt, and try to finance this asset in Mexican pesos.

Speaker #5: We need to in some way understand how long could take to in some way normalize the price. The price of the fuel and in the other hand, how the how important could be the resilience on the demand for the pass-through of the price of this pick-up fuel into the ticket.

Speaker #5: Into the airfare. So yeah, I mean, at least for the moment, we are not seeing an important decrease on capacity. I would say that we are still seeing an increase due to the fact of new routes.

Saúl Villarreal García: Hi, Gabriele. Related to your second question, we decided to take advantage of the level of the exchange rate. As you may know, we are in the lowest levels in the exchange rate. The appreciation of the peso is playing out in our favor. The idea is to take on long-term debt, and try to finance this asset in Mexican pesos. That avoids some volatility in our balance sheet in the long term view. As you may know, the effects of this exchange rate will be affecting our P&L. In this way, we have a little higher interest rate, but we have certainty about our long-term view balance sheet.

Speaker #5: Hi, Gabriele. Related to your second question, we decide to take advantage of the level of the exchange rate as you may know, we are in lowest levels in the exchange rate.

Speaker #5: The appreciation of the peso is playing in our favor. So the idea is to take a long-term debt and trying to finance this asset in Mexican pesos.

Raúl Revuelta Musalem: That avoids some volatility in our balance sheet in the long term view. As you may know, the effects of this exchange rate will be affecting our P&L. In this way, we have a little higher interest rate, but we have certainty about our long-term view balance sheet.

Speaker #5: That avoids some volatility in our balance sheet in the long-term view. As you may know, the effects of this exchange rate will be affecting our P&L.

Speaker #5: So in this way, we have a little bit higher interest rate. But we have certainty about our long-term view balance sheet.

Speaker #4: Okay. Very clear. Thank you very much.

Gabriele Gygli: Okay, very clear. Thank you very much.

Gabriele Himelfarb: Okay, very clear. Thank you very much.

Speaker #2: From Barclays, we have Pablo Montevis.

Operator: From Barclays, we have Pablo Monsivais.

Pablo Monsivais: Hi, Saúl, Raúl, Ale, Kis. Good morning. Just one question. In terms of traffic expectations for next year, I know we're very early, but have you had any contact or new information of Volaris-Viva Aerobus? Any color on that, or how the potential merge will shape the domestic travel, and especially on the routes they overlap. Any intel there or something that you would like to share? Thank you.

Speaker #7: Hi, Saul, Raúl, Ale, Keith, good morning. Just one question. In terms of traffic expectations for next year, I know we're very early, but have you had any contact or new information of Viva Volaris?

Speaker #7: Any color on that of or how the potential merge will shape the domestic travel and especially in the routes they overlap? Any intel there or something that you would like us you would like to share?

Speaker #7: Thank you.

Speaker #5: Thank you, Pablo. Yeah, I would say in terms of the merger or the new route of airlines with Viva Volaris, from the moment we are not seeing any particularly change, we are still I mean, talking with them and having I mean, communication, direct communication with both airlines.

Raúl Revuelta Musalem: Thank you, Pablo. Yeah, I would say in terms of the merger, or the new group of airlines, Viva and Volaris, for the moment, we are not seeing any particular change. We are still talking with them and having direct communication with both airlines. They still talk about there will be two different companies, and for the moment, they are not talking about the overlapping. Once the antitrust authority Mexico has a specific view about the transaction, we could have more color about how could be this transaction, in some way authorized. At least with the communication that we are having with the airlines, at least for the moment, they are not communicating anything related with overlapping, and they are just talking about the operation of these two different companies would still as it is today.

Speaker #5: We are very still talk about there will be two different companies. And for the moment, they are not talking about the overlapping. But once Anticross Authority Mexico has a specific view about the transaction, we could have more color about how going to be this transaction in some way authorized.

Speaker #5: But at least with the communication that we have in we are having with the airlines, at least for the moment, they are not communicating anything related with overlapping.

Speaker #5: And they are just talking about the operation of two different companies would still see this today.

Speaker #7: Okay. Fair enough. Thank you.

Pablo Monsivais: Okay, fair enough. Thank you.

Speaker #2: And we'll move on to Andrés Aguirre of GBM.

Operator: We'll move on to Andres Aguirre of BBVA.

Speaker #8: Hi, guys. Thanks for the call and congrats on the results. We noticed accounts payable increased sharply to around 2 billion in the cash flow statement.

Andres Aguirre: Hi, guys. Thanks for the call and congrats on the results. We noticed accounts payable increased sharply to around MXN 2 billion in the cash flow statement. Could you please elaborate on what is driving this increase? Thank you.

Speaker #8: Could you please elaborate on what is driving this increase? Thank you.

Saúl Villarreal García: Hi, Andres. Yes, we have a significant increase in the effective or cash position because the bond issuance on 31 March that was for the proceeds will be used for the acquisition of 25% of CBX, which will be in cash. Additionally, for CapEx committed to the MDP. That's basically why we have this significant increase, is what, MXN 10.7 billion more in cash that will be used for the benefit of CBX and MDP committed.

Speaker #5: Hi. Hi, Andrés. Yes, we were we have a significant increase in the effective or cash position because the issuance bonds that March 31st that was for the proceeds will be used for the acquisition of 25% of CVX, which will be in cash.

Speaker #5: And additionally, for CapEx committed into the MVP. So that's basically why we have this significant increase. It was 10.7 billion more in cash that will be used for the 25 of CVX and MVP committed.

Andres Aguirre: Great. Thanks for the detail.

Speaker #8: Great. Thanks for the detail.

Speaker #2: And we'll move on to Alberto Valerio of UBS.

Operator: We'll move on to Alberto Valerio of UBS.

Speaker #9: Thank you, good morning, Saul, Alejandro. Thank you for taking my questions. Before Solano follow up on topics, how should we be modeling the CapEx during the year?

Alberto Valerio: Thank you. Good morning, Saúl, Raúl, Ali, and G. Thank you for taking my questions. The first one on a follow-up to on CapEx. How should we be modeling the CapEx during the year? We know that seasonally we start a little bit weaker and then increase the CapEx during the year. How should we expect that? The second one about the jet fuel. Anything that concern you guys? We know that Viva Aerobus, if I'm not mistaken, did not hedge the fuel. I know that it's not our usual year, but how do you see the supply of seats for Mexico during 2026 with this current price of oil price? Thank you very much.

Speaker #9: We know that. Seasonally, we start a little bit weaker and then increase the CapEx during the year. How should we expect that? And the second one about the jet fuel.

Speaker #9: Anything that concerns you guys? We know that Viva Volaris, which I'm not mistaken, is not hedged fuel. I know that it's not a usual year but how you see the supply of seats for Mexico during 2026, which this current price of oil price?

Speaker #9: Thank you very much.

Raúl Revuelta Musalem: Hi, Alberto Valerio. Related with the seats in Mexico, for sure, as you said, different airlines have different levels of hedging. I would say the important thing to see what gonna happen is the resilience and the specific demand for the pass-through of the price of the cost of this fuel into the airfare. That will be the first part, and second, it's gonna be the kilometers that that specific route could bring. Let me put it this way. I would say that in a first stage, we're gonna see some kind of more or additional decrease in seats on some specific routes that have more kilometers when you talk about, for instance, the Mexican market.

Speaker #5: Related with the hi, Alberto. Related with the seats in Mexico, I mean, for sure, as you said, the hedging different airlines have different levels of hedging.

Speaker #5: But I would say the important thing to see what's going to happen is the resilience and the specific demand for the past two of the price of the cost of this fuel until the airfare.

Speaker #5: So that will be the first part. And second, it's going to be the kilometers that that specific route could bring. So let me put it this way.

Speaker #5: I would say that in a first stage, we're going to see some kind of more or additional decrease on seats on some specific routes that have more kilometers when you talk about, for instance, domestic market.

Speaker #5: This is why we are expecting seeing some kind of effect on Tijuana, for instance, where there are shorter flights has like two hours and a half and the average time in the plane for a Tijuana flight is more the language, three hours.

Raúl Revuelta Musalem: This is why we are expecting seeing some kind of effect on Tijuana, for instance, where there are shorter flights has 2 hours and a half, and their average time in the plane for a Tijuana flight is more along with 3 hours. On these kind of routes, where the demand is not enough resilient to get all the full impact of the fuel cost, we're gonna see some decrease of passengers. On the other hand, there are some specific routes that has less than 2 hours of flying. That could be Los Angeles to Cabo, 2 hours and a half, Cabos to Vallarta. Vallarta to Los Angeles, for instance, or all the really short routes. That could be Mexico to Guadalajara, Mexico to Vallarta, Mexico to Cabos.

Speaker #5: So on this kind of routes, where the demand is not enough resilience for get all the full impact of the fuel cost, we're going to see some decrease of passengers.

Speaker #5: But in the other hand, there are some specific routes that have less than two hours of flying that could be Los Angeles to Cabo, two hours and a half, Cabo to Vallarta, Cabo Vallarta to Los Angeles, for instance.

Speaker #5: Or all the short, really short routes that could be Mexico to Guadalajara, Mexico to Vallarta, Mexico to Cabo. That will be interesting on the mix that of the demand that we expect to be resilient on the increase on airfares and in some way short flights or short kilometers, short in terms of kilometers flight.

Raúl Revuelta Musalem: That will be interesting on the mix of the demand that we expect to be resilient on the increase on airfares, and in some way, short flights or short in terms of kilometer flight. The mix of both parts and the expectation of additional leisure passengers not flying long haul from the US and flying or switching to Mexico beaches. All these effects together makes sense that our original guidance was still in place for the year. For sure, it is difficult today to have the complete crystal ball of what's gonna happen in terms of the fuel. If in general terms, the conditions on the price of the barrel is still, we could say that we are still seeing the same level of guidance for the end of this year. Hi, Alberto. This is Saúl. Related to your second to the third question.

Speaker #5: So the mix of both parts and the expected of additional leisure passengers not flying long haul from the US and flying or switching to Mexico beaches all these effects together make those sense that our original guidance will still in place for the year.

Speaker #5: But for sure, it is difficult today to have the complete crystal ball of what's going to happen in terms of the fuel. But if in general terms, the conditions and the price of the barrel is still we could say that we still see the same level of guidance for the end of the year.

Saúl Villarreal García: Hi, Alberto. This is Saúl. Related to your second to the third question. The CapEx will be deployed during the following months, as you may know, our economic cycle in terms of CapEx is more concentrated in the last quarters of the year. In the first months, we are in the bidding process for all these projects. We are in the middle of that. We will be more intensive in terms of deployment during the following months.

Speaker #5: Hi, Alberto. This is Saul related to your second your third question. The CapEx will be deployed during the following months. As you may know, our economic cycle in terms of CapEx is more concentrated in the last quarters of the year.

Saúl Villarreal García: The CapEx will be deployed during the following months, as you may know, our economic cycle in terms of CapEx is more concentrated in the last quarters of the year. In the first months, we are in the bidding process for all these projects. We are in the middle of that. We will be more intensive in terms of deployment during the following months.

Speaker #5: In the first month, we are in the process of the billing in the billing process for all these projects. So we are in the middle of that.

Speaker #5: So we will be more intensive in terms of deployment during the following months.

Alberto Valerio: Makes sense. Very helpful. Thank you very much.

Speaker #8: Makes sense. Very helpful. Thank you very much.

Speaker #2: And as a reminder, everyone, participants joining via the webcast may submit questions at any time. Using the Q&A function. And we'll proceed with a phone questions.

Operator: As a reminder, everyone, participants joining via the webcast may submit questions at any time using the Q&A function. We'll proceed with the phone questions. Next, we have Abraham Fuentes of Santander.

Speaker #2: Next, we have Abraham ham Fuentes of Santander.

Speaker #10: Hi. Hello. Recently, we have seen some pressure in terms of traffic in Tijuana. I wonder if you can give us more clue about what's going forward and maybe the main dynamics behind this expectation.

Abraham Fuentes: Hi. Hello. Recently we have seen some pressure in terms of traffic in Tijuana. I wonder if you can give us more color about what's set going forward, and maybe the main dynamics behind this expectation. Thanks.

Speaker #10: Thanks.

Speaker #5: I mean, in terms of Tijuana, what we are seeing, Abraham, is for sure we have a mix of different things happening over there. The first related that we still with a lack of capacity related of the Pratt & Whitney engines in Tijuana.

Raúl Revuelta Musalem: In terms of Tijuana, what we are seeing around is, for sure, we have a mix of different things happening over there. The first related that we are still with a lack of capacity related to the Pratt & Whitney engine issues in Tijuana, mainly from Volaris, are still being there. We think that for the summer, we will begin to see more of these planes flying. That is first part. Second, what is related, is what we thought that was going to be completely temporary, that was related with all these security matters after the Mencho capture operation, that in some way is going to be in the past, and we will, in some way, recover it fully for that effect on the summer.

Speaker #5: Mainly from Volaris. Are still being there. We think that for the summer, we will be beginning to see more of these planes flying. That is a first part.

Speaker #5: And second, what is related or what we felt that's going to be completely temporary that was related with all these security matters after dementia capture operation.

Speaker #5: That in some way is going to be I mean, on the past and we will in some way recovering fully for that effect on the summer.

Speaker #5: In general terms, what we are seeing for Tijuana is that on the summer, we will see a more important or regular recovery of traffic related for first additional seats coming back to the airport.

Raúl Revuelta Musalem: In general terms, what we are seeing for Tijuana is that in the summer, we will see a more important revenue and recovery of traffic related to first, additional seats coming back to the airport. Second, I would say a softer base of comparison versus last year. In general terms, I would say that we're still optimistic that Tijuana, at the end of the year, is going to have a positive result, or it will grow in terms of passengers.

Speaker #5: And second, I would say a softer base of comparison versus last year. But in general terms, I would say that we're still optimistic that Tijuana at the end of the year is going to have a positive result or it will grow in terms of passengers.

Speaker #10: Thank you.

Abraham Fuentes: Thank you.

Speaker #2: There are no further questions at this time. I'll turn the call back over to Mr. Raúl Revuelta for closing remarks.

Operator: There are no further questions at this time. I'll turn the call back over to Mr. Raúl Revuelta for closing remarks.

Speaker #5: Thank you, once again, for joining us today. Before concluding, I would like to invite you all to join us on May 13th for Gap Day 2026.

Raúl Revuelta Musalem: Thank you once again for joining us today. Before concluding, I would like to invite you all to join us on 13 May 2026 for GAP Day 2026. The event will start in San Diego at the CBX facilities and will continue at Tijuana International Airport, and will include a series of strategic management presentations, followed by a guided tour of our airports and the CBX facilities. We believe this is an excellent opportunity to learn more about our strategy, operations, and long-term growth outlook. For registration and further details, please reach out to our investor relations team. Thank you, and we look forward to seeing you there. Have a great day.

Speaker #5: The event will start in San Diego at the CVX facilities and will continue at Tijuana International Airport and will include a series of strategic management presentations followed by a guided tour for our airports and the CVX facilities.

Speaker #5: We believe this is an excellent opportunity to learn more about our strategy, operations, and long-term growth outlook. For resistation and further details, please reach out to our investor relationship.

Speaker #5: Thank you and we look forward to seeing you there. Have a great day.

Operator: Thank you. This concludes GAP's conference call for today. Thank you for your participation, and you may disconnect.

Q1 2026 Grupo Aeroportuario del Pacifico SAB de CV Earnings Call

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