Earnings call transcript: Grupo Aeroportuario del Pacífico sees revenue growth in Q3 2025

Grupo Aeroportuario del Pacífico (GAP), a leading operator of airports in Mexico, reported robust financial results for the third quarter of 2025. The company saw a significant increase in revenue and earnings, driven by strong aeronautical revenue growth and strategic expansions. Despite challenges in international travel, GAP’s stock showed a positive market reaction, reflecting investor confidence in its future growth prospects.

Key Takeaways

• Total revenues increased by 17.4% compared to Q3 2024.
• Earnings per share (EPS) reached $5.34, reflecting strong profitability.
• GAP launched new international routes and expanded commercial areas.
• Passenger traffic increased by 2.5% to 15.8 million passengers.
• Stock price rose by 2.16% post-earnings announcement.

Company Performance

Grupo Aeroportuario del Pacífico demonstrated solid performance in Q3 2025, continuing its growth trajectory with a 17.4% increase in total revenues compared to the same period last year. The company capitalized on strong domestic demand and strategic expansions, including the launch of new international routes and the development of commercial areas across its airports. Despite a decline in international travel, GAP maintained a strong competitive position in the Mexican airport market.

Financial Highlights

• Revenue: 7.91 billion USD, up 17.4% year-over-year
• Earnings per share: 5.34 USD
• EBITDA: 5.1 billion pesos, up 12.8%
• EBITDA margin: 64.3%
• Cash and cash equivalents: 11.7 billion pesos

Earnings vs. Forecast

GAP’s actual EPS of $5.34 exceeded market expectations, reflecting a strong financial performance. The revenue of 7.91 billion USD also surpassed forecasts, showcasing the company’s ability to capitalize on market opportunities and effectively manage operational challenges.

Market Reaction

Following the earnings announcement, GAP’s stock price increased by 2.16%, closing at 211.49 USD. This positive movement indicates investor confidence in the company’s growth strategy and its ability to navigate current market challenges. The stock’s performance is notable given the broader market trends and reflects GAP’s resilience in a competitive sector.

Outlook & Guidance

Looking ahead, GAP remains cautiously optimistic about its growth prospects. The company is targeting to reach 93-97% of its maximum tariff by the end of 2026 and is exploring strategic expansion opportunities, including potential acquisitions in Brazil. The upcoming 2026 World Cup in Guadalajara is expected to positively impact passenger traffic and revenue.

Executive Commentary

Raul de Huerta, CEO of GAP, expressed optimism about the recovery of the Visiting Friends and Relatives (VFR) market, stating, "We are still optimistic that the recovery of the VFR market will happen from the coming year." He also highlighted the company’s disciplined approach to growth, saying, "We will continue to see interesting rates of pace of growing on the directly operated business."

Risks and Challenges

• Decline in international travel, particularly affecting VFR routes
• Ongoing issues with Pratt & Whitney engines impacting carrier capacity
• Potential economic pressures that could affect consumer spending
• Regulatory changes impacting operational costs
• Competition from other airport operators in the region

Q&A

During the earnings call, analysts focused on the impact of immigration policy on VFR travel, strategies for tariff increases, and the potential acquisition of Motiva Airport assets. GAP’s management addressed these concerns, emphasizing their strategic plans for expansion and growth.

Full transcript - Grupo Aeroportuario del Pacifico SAB De CV Class B (GAPB) Q3 2025:

Conference Operator: Ladies and gentlemen, this is the conference operator. Thank you for standing by. The call will begin in a few moments. Thank

Speaker 1: you.

Conference Operator: Good morning, and welcome to Gap’s Third Quarter twenty twenty five Conference Call. All lines have been placed on mute to prevent any background noise. After the presentation, we will open the floor for questions. And at that time, 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, Investor Relations, GAP: Thank you, and welcome to Gap’s third quarter twenty twenty five 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 GAAP are Mr. Raul de Huerta, Chief Executive Officer and Mr. Saudia Vaz, Chief Financial Officer. At this time, I’ll turn the call over to Mr.

Trauerta for his opening remarks.

Raul de Huerta, Chief Executive Officer, GAP: 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 2025. Overall and despite the passenger 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, passenger traffic declined, mainly due to the immigration related challenge and a more restrictive perception under the current U. S. Administration, which has affected behavior of VFR and leisure passengers. In addition, the ongoing Pratt and Whitney engine issues continue to limit Volaris and Viva Verbruce capacity recovery as carriers have indicated they expect to fully recover their fleet by 2027. 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 15,800,000 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 fourth quarter, eight new international routes to Canada will be launched, two 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 GAAP position as a regional hub. Turning to total revenues, This increased by 17.4% versus third quarter twenty twenty four, driven by the solid performance of both the aeronautical and non aeronautical business.

Aeronautical revenue grew by 18.3%, reflecting the new maximum tariff. The original plan was to implement increase approved into phase 15% in March 2025 and the remainder during 2026. However, after reviewing traffic performance and load factors trend during this year, we move forward with the second adjustment on an average of 7.5% starting September 1. New aeronautical revenues increased 15.6%, both by the strong performance in both Mexico and Jamaica. Revenue from business operated directly by GAAP rose by 30.1 increase mainly due to the consolidation of the cargo and bond and warehouse business, which contribute by million.

Revenues from third party operators increased by 4.7% and include 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 excellence in our business model. The expansion of commercial areas and the integration of the new services such as cargo operation expands GAMP 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. 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 GAAP due to the change in regulations. Without this cost, cost of services will have increased by around 4.8%.

Despite this increase, our focus on the split 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 5,100,000,000.0 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 fee for our Mexican Aircross from 5% to 9%, which was payable financed 2024 was reflected in our P and L in 2025. Regarding our financial position, we remain in strong liquidity position with $11,700,000,000 in cash and cash equivalents as on September 3.

In the third quarter twenty twenty five, we paid the second and final dividend installment of 8.42 per outstanding 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 8,500,000,000.0. The proceeds are used to finance approximately ARS 7,000,000,000 in capital investment and to repay ARS 1,500,000,000.0 bank loans with Santander. We also refinanced our US40 million dollars credit line with Banamex, extending its maturity to 02/1930. Active management of our capital structure strengths the balance sheet and provides us provide us with the flexibility required to execute our long term investment commitments and potential in organic growth.

In terms of CapEx, during the first nine months of the year, we invest approximately ARS 10,000,000,000, Most of these investments were related to the early stage of major infrastructure projects under the master development program, including terminal expansions, area site improvement among others. Looking ahead, we remain cautiously optimistic. Macroeconomic uncertainty and exchange rate volatility may create short term challenge. However, it is important to highlight that GAPS continue to benefit from our residential and domestic market, our diversified portfolio of airports and our disciplined financial management. Furthermore, our strong financial position and continued growth in both aeronautical and aeronautical revenues allows GAPS 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 TORX and CAICO’s tender remains ongoing. We submitted our bid last year and while the evolution continue, no resolution has been announced 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 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.

Conference Operator: And we’ll take our first question from Rodolfo Ramos of Bradesco BBL.

Rodolfo Ramos, Analyst, Bradesco BBL: Thank you, Raul, Raul, 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 stands in The U.

S. But yet when you see capacity deployment and the route development that, for example, Volaris is having, it’s targeting those very routes. 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 your guidance for the year? So that would be my first question.

I have a second one, if I may.

Raul de Huerta, Chief Executive Officer, GAP: Thank you, Rodolfo. This is Raul. I mean, in general, we are suffering some deceleration of VFR markets mainly. We are seeing data acceleration for sure in directly routes from some of our airports to The U. S.

As could happen in the Guarrajacao or Guarrajacacamento for instance or Los Angeles for instance, but also in the routes that go to Tijuana and to the CDX to The U. S. Both of these markets, BFR is going directly to The U. S. And the BFR market going through Tijuana and through CDX to The U.

S, we are seeing the acceleration. That comes merely for some kind of lack of information for the BFR market. Because if we think for a moment, all the passengers flying in a plane are or citizen or a green card holder or they have like all the papers to be totally legal. So 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 U. S.

Administration. So what we are seeing is at least for the coming months, some decrease on these specific VFR markets. But we are seeing and we are optimistic about the coming years just when we review the fixed capacity already announced by the different companies of Volaris. So saying that, we are still optimistic that the recovery of the VFR market will happen from coming year.

Rodolfo Ramos, Analyst, Bradesco BBL: Okay. Thank you, Raul. And just secondly on commercial side, the businesses that you operate are growing at a very rapid clip, Noah, which explains the strong performance that we saw in the non aeronautical 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 going more in line with the more traditional retail food and beverage businesses?

Raul de Huerta, Chief Executive Officer, GAP: That was a good question, Rolf. 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, with the prices of the products and the tariffs and for sure to manage the cost of these services. What we are seeing in the on coming years is that some of these business lines will continue in a higher pace of 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 terminal areas. So 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 on the coming years.

So 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 like that because we are seeing that we will continue expanding the 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 three months ago, we begin with La Paz. But for the next, I would say twenty months, we will see the first FVO 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 five years.

It will give us other additional possibilities there. But in general terms, I don’t know if 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 older business operated by third parties.

Rodolfo Ramos, Analyst, Bradesco BBL: Very interesting. Thank you. And

Conference Operator: our next question comes from Guerrero Mendez of JPMorgan.

Giuliano Guerrero Mendez, Analyst, JPMorgan: Good morning, Household. Thanks for taking my question. The first one is it’s a follow-up on cost. 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 for in terms of EBITDA margin for the year.

Just wondering if the rationale makes sense. And the second one, it’s 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 twenty twenty six and potentially at some time in the 2026, is it still the base case at this point? Thank you.

Raul de Huerta, Chief Executive Officer, GAP: Hi, Giuliano. This is Saul. Well, related to

Saudia Vaz, Chief Financial Officer, GAP: the cost, we believe that this would be in average. The level of cost 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, etcetera. So it is part of the business. So we would see this level in the following quarters.

Raul de Huerta, Chief Executive Officer, GAP: In terms of the maximum tariff, I mean, of all, talking about the EBITDA margin, as you remember, we present a guidance for the at the beginning of the year and we are still in our guidance related in the margins. And the other part related with the maximum tariff, let’s remember that in March 1, we have a 15% increase on passenger fees for all of our airports, domestic and international passengers. On September 1, increased an additional 7.5% of increase. For the coming year, are thinking that on early February of coming year, we will increase again our tariff. So it will be important to have in mind that for 2026, we’re going to have in place the effect of three different moment of tariff.

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. And during almost all the year from February to December, we will have in place the increase of the additional tariff that we’ll make will put in place on coming year. So in terms of tariffs, for the coming year, we will expect a much better fulfillment of the maximum tariff. And for sure, it will depend, for instance, on what happened with inflation, the price product inflation.

And the second, what happened with the dollar and the exchange rate. So in general terms, I would say that we are still passing through all the changes on the passenger fleet 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.

Saudia Vaz, Chief Financial Officer, GAP: And just to complement you in answering your question regarding related to the EBITDA margin, we will be very close to the guidance. Release Okay.

Giuliano Guerrero Mendez, Analyst, JPMorgan: That’s clear. Thank you both. Appreciate it.

Conference Operator: And our next question comes from Gen Zviis of Morgan Stanley.

Gen Zviis, Analyst, Morgan Stanley: Hello. Raul, Raul, and El Carra. 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 the all of the assets or maybe do a partnership with some of the other potential bidders like Aena? And if you’re doing if you’re going alone for all the assets, would you be raising equity or mainly finance it via debt?

Thank

Raul de Huerta, Chief Executive Officer, GAP: Thank you. You, Jen. I mean, we are still right now working on the different options. I would tell you that today we are not fully deciding which will be the way that we will find our bidding for this opportunity. We are opening for partnership or for Boeing going along, I mean, on this stage.

But what is important is that we are, I mean, working as always in a really disciplined way to review the numbers, thinking what’s going to be accretive for our company. And for sure, in the case that we continue with this opportunity, we are thinking that all the money will come from leverage. So I mean, I will say that these are our main takes today on this specific opportunity of material. 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.

Gen Zviis, Analyst, Morgan Stanley: Perfect. All right. Thank you.

Conference Operator: Our next question comes from Gabriel Hemmelfarb of Bank of Nova Scotia.

Gabriel Hemmelfarb, Analyst, 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 if you are already or when you expect to reach what the 100% maximum tariff? Thank you.

Raul de Huerta, Chief Executive Officer, GAP: For the coming years, we are still working on which one of the increases. I mean, it’s underway because we need to work on other procedure with with fact with the federal agency. So we are just on that, but we are expecting that it will happen on February. The other parties with all the change that we are expecting for 2026 will be I mean, depending for sure in inflation and exchange rate, we’re going to be around between 93% to 97% of fulfillment of the tariff. I mean, at the end of the 26% and that are mainly the main points in terms of tariff.

Gabriel Hemmelfarb, Analyst, Bank of Nova Scotia: So it’s 95% at the end of 2026, right, what you’re expecting?

Raul de Huerta, Chief Executive Officer, GAP: I mean, in the range of that number.

Gabriel Hemmelfarb, Analyst, Bank of Nova Scotia: Okay. Thank you.

Conference Operator: And our next question comes from Jorge Vargas of GBM.

Jorge Vargas, Analyst, GBM: 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? And additionally, could you provide some context on how Brazil’s concession structure works and how it differs from the Mexican model? Thank you.

Raul de Huerta, Chief Executive Officer, GAP: It’s Jorge. I mean, for sure, the rationale is diversification among our main business at the airports. As you know, airports industry opportunity has higher than you. There are small ones per year around the world. So for sure, as airport operators always would be interesting for us to analyze any of these opportunities.

Modiva is a group of airports that have different concessions, different countries and different, I would say, frameworks of concession frameworks. We are going in a really quick way. We have a big four groups of airports in Brazil with different each one of them with different rules of concession. Also, it is in the Paca Quito Airport, also San Jose Costa Rica Airport and Curacao airports. What we are seeing in all of these for GAP is we will have a potential opportunity to increase the value of those companies to two different ways.

The first related with commercial revenues, applying our well known model of increasing commercial revenues. And the second, it was related with the discipline of the cost. We think that both of these will be an interesting area to explore to bring all the experience of GAP onto B SERP. But 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 the last part of this bidding process.

So we are continuing analyzing. With that with the timeline, it will 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 November could happen the presentation of the numbers. But again, it will depend completely on the seller because it will 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 November, we will make our final decision related with this transaction.

Jorge Vargas, Analyst, GBM: Thank you.

Conference Operator: Thank you. And we have a question from Edson Margo from Sumacha.

Saudia Vaz, Chief Financial Officer, GAP: 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 we operated Los Cabos to Panama? And the second question is regarding to the cargo and abundant warehouse. I was wondering if you have similar initiatives or initiatives related to new buildings or even with the master development plan looking ahead similar to the food and beverage and new terminal buildings and so on? Because it seems that cargo and branded warehouse, it’s in a good growth pace for the following quarters.

Raul de Huerta, Chief Executive Officer, GAP: Thank you. Thank you, Jose. 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. You probably know, on the Parabajo is a great opportunity to capture all the traffic going beyond, I mean, that connect to the rest of South America and Central America.

So I think it’s a great opportunity for Cabos. At the end of the day, it’s opening a complete new market and a completely 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-up of the services and are coming back with our list number of frequencies just in some seasons. But at the end of the day, what we know about the direct connection with Panama is that we the hope of Panama opens opportunity for a broader market related with all the churn in South America.

So in that sense, think that yes, it’s a great opportunity for Cabos to reach a completely new market to that destination.

Saudia Vaz, Chief Financial Officer, GAP: Edson. This is Saul. Related with your second question. The cargo hold warehouse is not a business regulated under the master development program. So it is nothing to do with our new terminal for passengers.

But we are interested to replicate this business in other airports, if possible and according to the demand and opportunity of market in those airports. So it is a great business. It was a great acquisition. We will be following some opportunities in the future in other airports. Okay.

Thank you so much.

Speaker 10: Well, we have some questions from the webcast. There is two from Rafael Simonetti from UBS. One of them was already explained. So the only one that we have it is aeronautical tariff decline quarter over quarter. Could you elaborate on the main drivers behind this decrease?

Saudia Vaz, Chief Financial Officer, GAP: Rafael. This is Saul. Yes, it was due to the company in the midst of passenger traffic we have in our airports, international traffic declined in 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 passenger aeronautical revenue per passenger declined slightly.

Speaker 10: Thank you. And well, we have another question from Daniela Guzman from Ashmore. And the question is, what is the expected effect of next year World Cup in traffic figures?

Raul de Huerta, Chief Executive Officer, GAP: 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 in some different power airports. We are thinking that for sure Guadalajara with the four games will have a positive effect and Tijuana that will be through the CBS will be connected to some of the games in South California. In Southern California, we’re seeing 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 of the lottery related with the different selections that will be on Guadalajara for the World Cup. So at the beginning of coming year, it will be this lottery of national teams and we will know which going to be the matches that will happen in Guadalajara.

I mean, moment, we could have a more clear way to prepare some scenarios of possible increase on profit. I mean, the numbers that, for instance, the 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. But it’s really for the moment, it’s unclear until we know which national teams will be allocated in Guanajuana.

Speaker 10: 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? And do you have any longer term vision for what level of non aeronautical revenue per pack may reach?

Raul de Huerta, Chief Executive Officer, GAP: Okay. I mean, as you remember, we have a target on that. We will be for 2029, our terminal buildings as gap in Mexico will increase around 55% in terms of the square meters. So 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.

Mean, four different airports we have opportunity for the commercial business in terms of really interesting numbers. The first one is the Terminal 2 Of Guadalajara that will be opened for 2029 or 2029. The next one is Puerto Vallarta that will be a second terminal building that we offer for January or the 2027. The third one is the expansion of the Tijuana Airport that will be ready for being operational in 2028. And the last one is the expansion of the Terminal 2 Building of Los Cabos that will be on operation for 2020 mainly.

In that sense, we will have a great amount of opportunities to expand commercial business. So yes, for the end of the year, master plan, we will have this like the big number, this expansion that we would give 55% of increase in square meters in our terminal building. And in that way, we will have that reflection on opportunities for increase our commercial spaces in our terminals. And

Conference Operator: we have a question from Alan Masias of Bank of America.

Speaker 1: 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.

Raul de Huerta, Chief Executive Officer, GAP: Thank you. I will say that in these two I would 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 U. S.

Routes that are coming back with additional seats for the winter season of this year that will give us a much better first quarter of the coming year in Puerto Vallarta. But on the first nine months, what we are seeing is a decrease of passengers, mainly due to a decrease of capacity for American Airlines, mainly in the case of Puerto Vallarta with some other effect coming from Spirit. But 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. But 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 will say, increase on passengers from Canadian capacity will also add revenues for Puerto Vallarta input.

Speaker 1: Thank you.

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

Raul de Huerta, Chief Executive Officer, GAP: 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.

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

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