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| Statement |
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| Furthermore, we concluded the year with a strong balance sheet, reaching MXN10 billion cash at the end of this year as well as a comfortable debt maturity profile with the net debt-to-EBITDA ratio to 1.7 times |
| For instance, as you see Guadalajara airport on the international side, we are seeing a really remarkable increase in passengers on January that in a big part is related bit, better yields |
| We at GAP, we remain confident that the underlying fundamentals of our business remain strong |
| But I will tell you that for this year, also we have the possible excellent news that we are expecting an increase also related with the bidding process for our Guadalajara Airport |
| Commercially, 2023 was a groundbreaking year and one which we reached the highest commercial revenue in our history |
| Our strategy -- strategic focus in the area of food and beverage, parking, retail and expansion projects is evidence of our commitment to improve the passenger experience and continued sustainable growth |
| On the other hand, we already have that terrace in the Guadalajara airport which is a very nice and very large area of commercial food and beverage that will contribute with the commercial revenue increase |
| So for sure, that will give us important boost on the parking lot revenue for -- mainly for the coming year but it is really something important to have in mind |
| However, on a more positive note, non-aeronautical revenues are expected to grow from 12% to 14% |
| In line with that, we extend our education program to the high school rates in Guadalajara under our [indiscernible] program committing to provide excellent education to our students |
| Adjusted EBITDA reached another record of MXN17.7 billion, up 9.7% compared to 2022 |
| We are working to continue given the best possible services to our passengers and taking or bringing to the company additional technology that will give us the opportunity to bring additional efficiencies to the company and to the operations |
| As we reflect on the year 2023, we reached the highest EBITDA level in the heat of the company even though we face several challenges |
| It is important to mention that despite these considerable headwinds, we achieved remarkable milestones during 2023 |
| I would like to conclude by emphasizing that despite the challenge, we remain steadfast in our commitment to manage regulatory changes and sustain growth, ensuring our continued success and value creation for all stakeholders |
| We could get a better fulfillment because as you remember, the passenger fleet for international market are higher than the domestic market |
| We also participate in the EDGE certification for gender equality and hosted our first-ever gala to benefit our discussion of foundation from the [indiscernible] |
| As you know, we try to maintain the cost per passenger very efficient |
| I mean, for sure, we have a really interesting growth on commercial revenue in the line of the car rental and was due mainly to the billing process of Los Cabos airport |
| And for sure, as soon as the passengers after all these Pratt & Whitney engine’s problem will continue to grow in the future |
| Nevertheless, we have tackled this issue and have engaged in strategic negotiations with relevant regulatory bodies to navigate these changes and preserve shareholders' value to the best of our ability |
| And it was really important to bolt that Guadalajara Airport in terms of international passengers grew 20.5% |
| And as we say on the call, our guidance for the full year of the non-aeronautical revenues will be to close with that increase of revenue from 12% to 14% |
| So when we talk about international markets, the ones related with VFR markets are growing really in a great pace on this first quarter of the year, also on leisure markets as Los Cabos, we are beginning to see that some of the new routes will come for the second and third quarter |
| But I will say that what we are expecting for the coming months is that the trend that we have of the last quarter of the year that was an increase of commercial revenues in high double digit will continue for the next quarter |
| How are you seeing the airline scope with this revision of Pratt & Whitney engine at least in January, December? And also, what do you think is the impact from the slot reduction in Mexico City on your airports? And on the international side, are you seeing bookings strong from the U.S |
| But overall, I would remind you that, for instance, on the first month of the year in January, we saw a 5.3% increase on international passengers |
| But on the other hand, we are seeing really interesting trends on the Guadalajara airport related with international passengers |
| Have a wonderful day |
| There is more room to grow here |
| Statement |
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| We anticipate at 3% to 5% slowdown in passenger traffic across our airport network due to the challenged growth owned by the review of the P&W engine |
| By the end of 2023, we faced various challenges starting with the passenger traffic deceleration due to the Pratt & Whitney preventive engine inspections |
| So right now, we are facing trouble, certain troubles to hire people in all our airports in all lines of the headcount |
| And if that change pass, we will have several problems for higher additional people |
| In addition, the major challenge we face as well due to the regulatory changes and concession fee adjustments which affected our market value |
| In addition, the consumer price index in real terms has been sustainably increasing, together with a higher minimum wage and changes in labor level, consequently, we are facing a growing challenge concerning costs, thus directly impacting our profits |
| This decrease in passenger traffic will directly lead to lower aeronautical revenues, thus, we foresee a decrease from 2% to 4% versus 2023 |
| But what we are seeing right now in the airports of GAP is, for sure, a decrease on the capacity and in the passengers number for the route that come out close to Mexico City Airport |
| The appreciation also affected certain commercial revenues in Mexico as well as international passenger fleet |
| Considering that for this year, we are expecting a decrease or at least a decrease in passenger traffic for between minus 3%, minus 5% |
| We will try to look for cost control in all the year in 2024, but there are some effects that will be impossible to control |
| I express myself wrongly |
| Are you looking at any opportunities to invest outside of Mexico? Your competitor seems to be having a bit of trouble in the Dominican Republic |
| That contraction comes mainly from a higher concession fees in Mexican airports from 5% to 9% beginning January 2024, plus labor cost increased in Mexico of around 20% and a 40% for Jamaica |
| But as Saul said, there will not be impact on the operations, but for sure, it will be additional pressure for our cost on the terms of personnel |
| We had a higher expenses to maintain the quality level of higher number of passengers |
| To begin, the appreciation of Mexican peso impacted the American airports revenue, which are in U.S |
| We saw a slow decrease [Indiscernible] recently along with [indiscernible] |
| However, the positive target was offset by germane macroeconomic factors |
| And it's also affecting in terms of maintenance |
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