Mexico airport operator GAP says nearshoring, fleet expansions fuel growth

Grupo Aeroportuario del Pacifico SAB de CV

13/04/2023 21:37

By Kylie Madry
       MEXICO CITY, April 13 (Reuters) - The airport operating
business in Mexico is thriving as traffic surges due to
multinational companies bringing overseas operations closer to
home and growth at Mexican airlines, according to the head of
GAP, which operates 12 airports in the country. 
    Manufacturing hubs such as Guadalajara have seen record
traffic growth due to the relocation trend, called nearshoring,
CEO Raul Revuelta told Reuters in an interview late Wednesday.
    "Yes it's nearshoring, when you think medium-to-long-term,"
Revuelta said. "But it's also Mexican airlines, VivaAerobus,
Volaris, Aeromexico, expanding their fleets, which allows them
to open new routes and move more passengers."
    Airport operators have been rewarded. GAP's shares are up
nearly 26% year-to-date, while competitors OMA  OMAB.MX  and
ASUR  ASURB.MX  have seen shares rise almost 35% and 20%,
respectively.  
    The firm, whose full name is Grupo Aeroportuario del
Pacifico, plans to spend around 10 billion pesos ($554.90
million) in 2023, Revuelta said.
    Projects range from a second terminal at Guadalajara's
airport to an additional runway at Puerto Vallarta.
    Demand from Mexico's northern neighbors is also likely to
continue. Nearly two-thirds of the 39.4 million international
travelers expected to visit Mexico in 2023 are forecast to be
from the U.S. and Canada, Tourism Minister Miguel Torruco told
Reuters.
    In another favorable development, Revuelta predicted that
Mexico's aviation safety rating, which was downgraded to
Category 2 by the Federal Aviation Administration (FAA) nearly
two years ago, will return to Category 1 later this year.  
    The downgrade has prevented Mexican airlines from opening
new routes to the United States, limiting expansion plans.
    "It's looking like it'll be back by the fourth quarter,"
Revuelta said. The passage of a proposed aviation reform by
Mexico's Congress will be an important step, he added.
    The reform is expected to pass Congress soon, after a
proposal to allow "cabotage," a rare practice permitting
international airlines to open domestic routes, was removed from
the text.  

($1 = 18.0212 Mexican pesos)

 (Reporting by Kylie Madry; Editing by Cynthia Osterman)
 ((Kylie.Madry@thomsonreuters.com;))