| Over a week ago | ||||
Corporacion America… Corporacion America Airports reported a 98.1% decline year-over-year passenger traffic in May 2020. The company notes that its "total passenger traffic in May 2020 dropped 98.1% YoY, primarily reflecting continued travel restrictions imposed by governments, aiming to contain the spread of the COVID-19 pandemic, together with lower passenger demand. International traffic declined by 98.5% YoY, while domestic traffic dropped 97.6% YoY. Air travel restrictions in Italy and Ecuador operations were lifted early June. Cargo volume decreased 59.4% on May 2020, mainly due to declines of 57.4% in Argentina, 85.0% in Brazil and 70.0% in Ecuador." | ||||
| Over a month ago | ||||
Corporacion America… Corporacion America Airports reported a 98.3% decline year-over-year passenger traffic in April 2020. Total passenger traffic in April 2020 dropped 98.3% YoY, primarily reflecting continued travel restrictions imposed by governments, aiming to contain the spread of the COVID-19 pandemic. International traffic declined by 98.7% YoY, while domestic traffic dropped 98.2% YoY. In Argentina, total passenger traffic decreased 99.3% YoY, as a result of prolonged measures implemented mid-March by the Government restricting both international and domestic flights to contain the breakout. International passenger traffic declined 98.5% with minimum levels due to repatriation flights, while domestic passenger traffic dropped 99.7% YoY. In Italy, passenger traffic declined 99.9% YoY, with traffic at Florence airport down 100% YoY due to the temporary halt of operations from March 14 to May 4, 2020 as per government regulations, while passenger traffic at Pisa Airport was down 99.9% YoY. In Brazil, total passenger traffic dropped 96.2% YoY, driven by decreases of 95.5% in domestic passenger traffic and 99.4% in international traffic. Passenger traffic declined 98.5% YoY in Uruguay, 97.5% in Armenia and 98.6% in Ecuador. | ||||
Corporacion America… Corporacion America Airport reported a 48.7% decline year-over-year passenger traffic in March 2020. Total passenger traffic in March 2020 dropped 48.7% YoY, primarily reflecting lower travel demand along with travel restrictions imposed by governments, aiming to containing the spread of COVID-19 pandemic. International traffic declined by 53.4% YoY, while domestic traffic dropped 47.9% YoY. In Argentina, total passenger traffic decreased 49.9% YoY, as a result of certain measures implemented by the Government mid-March in order to restrict both international and domestic flights. International passenger traffic declined 49.5%, while domestic passenger traffic dropped 50.0% YoY. In Italy, as per government regulations, Florence Airport temporarily halted its operations starting March 14. Passenger traffic declined 82.9% YoY, with traffic at Florence airport down 83.8% YoY and traffic at Pisa Airport down 82.4% YoY. In Brazil, total passenger traffic dropped 38.4% YoY, driven by a drop of 39.4% in domestic passenger traffic and a 42.1% decline in international passenger traffic. In Uruguay, passenger traffic declined 45.6% YoY. Containment measures implemented by the government include travel restrictions from certain countries, including Argentina, US and certain countries in Europe. In Armenia, where travel restrictions were imposed late March, total passenger traffic dropped 38.2% YoY. In Ecuador, total passenger traffic declined 47.0% YoY, with government containment measures, including borders closure, implemented mid-march. | ||||
| Over a quarter ago | ||||
Goldman Sachs analyst… Goldman Sachs analyst Bruno Amorim downgraded Corporacion America Airport to Neutral from Buy with a price target of $2.10, down from $10.70. The analyst sees the stock as fairly pricing in the expected decline in total passenger air traffic due to the COVID-19 outbreak. Further, tariff revisions have been less frequent and the opportunity cost in Argentina is currently much higher than in Mexico, making Mexican airport names preferable, adds the analyst | ||||
Corporacion America… Corporacion America Airports said that its operations have been severely impacted by the introduction of the flight restrictions related to the coronavirus outbreak as well as flight bans in many other countries worldwide. Passenger traffic in the company's Italian operations started to decline late February, while its airports in Latin America were impacted starting the second week of March. According to preliminary operational figures, CAAP's passenger traffic was down by approximately 12% YoY in the first week of March, declined further to around 18% in the second week, deteriorating to a drop of nearly 60% in the third week and over 90% in the fourth week of March. For the whole month, preliminary traffic is estimated to have declined approximately 45% YoY. Note that these preliminary figures may be subject to adjustments. A crisis committee was set in place, composed of the Company's CEO and operating CEOs of each subsidiary to assess operations, focused on enhancing the sustainability of the company's business. In addition, CAAP has developed a four-pronged strategy and implemented a number of actions aiming to mitigate the negative impact of the COVID-19 virus. The company has further enhanced safety and hygiene protocols across the company's airports to protect the well-being of passengers and operating personnel. For essential staff working on premises, health gear was provided and additional sanitizing policies established. The company has also established remote working when possible. CAAP has introduced reductions in operating costs by: Reducing personnel expenses including salary reductions, suspension of salary increases and freezing new hiring, mandatory use of pending vacations and/or advancing vacations to employees when possible, placing operating employees on furlough in certain geographies. In Italy and Uruguay, employees under furlough are receiving government unemployment subsidies. It is also reducing maintenance and other operating expenses while maintaining the quality and safety standards, required to support the minimum level of operations. As a result of these combined measures, the company expects total cash operating costs and expenses excluding concession fees to decrease by approximately 43% under this crisis scenario. This target reduction is based on current company estimates for 2Q20 and actual 2Q29 figures ex-IAS29. In relation with concession fees, all of the Company's operations are under a variable concession fee regime, with the exception of its Brazilian concessions, which are also subject to a fixed concession fee. The Company is also aggressively managing working capital by negotiating with its suppliers the extension of payment terms and reducing its capex program. The company noted that it has started discussions with regulatory agencies to renegotiate concession fees payments to align to the current environment. | ||||
Reports Q4 adjusted… Reports Q4 adjusted EBITDA $50.7M, down 44% year-over-year. Reports Q4 passenger traffic up 1.8% year-over-year. "We are undergoing an unprecedented health crisis that has rapidly expanded worldwide disrupting the global economy, and in particular the aviation industry, resulting in drastic reductions in passenger traffic. In these trying times the first priority and utmost concern of our Company are the health and safety of our employees and customers," noted Martin Eurnekian, CEO of Corporacion America Airports. "The coronavirus outbreak comes at a time when adverse macro conditions in Argentina were already dampening travel demand and FX depreciation impacted performance in Brazil. This resulted in revenue declines of 6% ex-IFRIC12 for the fourth quarter and nearly 7% for the full year. Despite the impact in our topline, we delivered comparable adjusted EBITDA margin expansion of over 220 basis points in the quarter. We ended the year with a comparable adjusted EBITDA of nearly 450 million dollars and an ex-IFRIC 12 margin of 37%. Travel bans and restrictions introduced over the last month to reduce the spread of the COVID-19 pandemic across our countries of operations are taking a heavy toll. We began to see the impact of the virus on traffic flow late February in Italy and around the second week of March at our LatAm airports. Reacting rapidly in the face of this disruption, we formed a crisis committee composed of myself and the operating CEOs of each of our subsidiaries and we are implementing a strategy focused on four key fronts: protecting our employees and passengers; introducing cost controls and cash preservation measures; undertaking near-term negotiations with regulatory bodies and seeking government support; as well as beginning the initial stages of renegotiating the economic re-equilibrium of our concessions. While the path to recovery remains uncertain and is dependent on several factors including the duration of the pandemic, government assistance and the resilience of the global economies, we are working on all fronts to reinforce our business. We have built a strong network of international and domestic airports and have made significant investments over the past years to further modernize our airport infrastructure that will play an important role in reigniting economic growth once the current travel restrictions begin to be lifted," concluded Mr. Eurnekian. | |
Corporacion America… Corporacion America Airports announced that its subsidiary, Toscana Aeroporti, has been notified by the Council of State that it has rejected the appeal lodged on July 25, 2019 by TA, against judgement No.793. This appeal had been filed jointly with, among others, Italy's Ministry of Environment and Protection of the Land and Sea, Italy's Ministry of Cultural Heritage and Activities, Italian Civil Aviation Authority and Municipality of Florence, Region of Tuscany. On May 27, 2019, the Regional Administrative Court of Tuscany, through judgment Nro.793, had overturned the favorable Environmental Impact Assessment decree issued on December 28, 2017, for the project outlined in 2014-2029 Master Plan for Florence Airport. "While fully respecting today's judgment, the company is firmly convinced of the need for the Florence airport to construct a new runway and a new terminal to remedy the airport's evident critical infrastructure concerns and will therefore verify the conditions and actions to be taken, together with the competent entities - and first and foremost the Italian Civil Aviation Authority - to move ahead with the project. Importantly, the work done by TA in connection with the Environmental Impact Assessment for the Florence Airport Master Pan was carried out according to the opinions and instructions provided by the competent ministries and the competent Environmental Compatibility Assessment Commission, by virtue of the positive opinions obtained from the Italian Environmental Compatibility Assessment Commission, Italy's Ministry of Environment and Protection of the Land and Sea, Italy's Ministry of Cultural Heritage and Activities and Italy's Ministry for Infrastructure and Transport." | |
Corporacion America… Corporacion America Airport reports total passenger traffic in December 2019 grew by 2.1% YoY, primarily reflecting increases of 3.0% in Argentina, 8.8% in Italy, 7.5% in Ecuador and 6.1% in Armenia, partially offset by declines in Brazil and Uruguay. Cargo volume declined 5.4% in December 2019, mainly as a result of declines of 15.5% in Argentina and 25.2% in Ecuador, partially offset by a 28.3% increase in Brazil. Aircraft movements declined 3.5% YoY in December 2019, driven by declines of 6.1% in Argentina and 6.7% in Brazil, partially offset by an increase of 8.8% in Italy. | |
Oppenheimer analyst Ian… Oppenheimer analyst Ian Zaffino downgraded Corporacion America Airport to Perform from Outperform after the company reported Q3 adjusted EBITDA of $99.9M, below his $103M estimate, due to continued macro challenges in Argentina and Brazil. In a research note to investors, Zaffino says he is downgrading shares given the heightened uncertainty and limited near-term visibility of a recovery. Despite operational uncertainties, the analyst says management continues to drive spending and investments, including Ezeiza and continued construction of assets at Pisa and Florence airports in Italy. | |
Oppenheimer downgraded… Oppenheimer downgraded Corporacion America Airport to Perform from Outperform. |