Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC) Q4 2023 Earnings Conference Call February 28, 2024 11:00 AM ET

Company Participants

Maria Barona - IR

Alejandra Soto - IRO

Raul Revuelta - CEO

Saul Villarreal - CFO

Conference Call Participants

Juan Ponce - Bradesco BBI

Stephen Trent - Citi

Alberto Valerio - UBS

Pablo Monsivais - Barclays

Juan Macedo - GBM

Isabela Salazar - GBM

Operator

Good morning, and welcome to GAP's Fourth Quarter 2023 Conference Call. Thank you for joining us. Please note, that all lines have been placed on mute to prevent any background noise during the presentation.

At this time, I am pleased to turn the call over to GAP, so that the presentation may begin. Please go ahead.

Maria Barona

Thank you, and welcome to the [Technical Difficulty] Call. I'm pleased to have from the company today, Mr. Raul Revuelta, Chief Executive Officer; and Mr. Saul Villareal, Chief Financial Officer.

Any forward-looking statements made during this conference call do not account for future economic circumstances, industry conditions, company performance or financial results. Please keep in mind that any statements or assumptions made are based on current factors and information that could materially change causing results to differ from current expectations. For a complete note on forward-looking statements, please refer to the quarterly report issued earlier this week.

Thank you all for your attention. Mr. Revuelta, please begin with your opening remarks.

Raul Revuelta

Hello, everyone, and thank you for your attendance today. 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. In the end of the overcame den, the year started at a varying currency rate as we reached historic levels in terms of passenger traffic numbers, revenues and the expansion of airport areas. However, the positive target was offset by germane macroeconomic factors. One was the exchange rate floatation and second was a low inflation rate applicable to maximum tariff.

To begin, the appreciation of Mexican peso impacted the American airports revenue, which are in U.S. dollars. The appreciation also affected certain commercial revenues in Mexico as well as international passenger fleet. In total, we have had around 20% of our total consolidated revenue. At the same time, the National Passenger Price Index, excluding Petroleum, which is used to update tariffs in Mexico remained mainly flat throughout the year, and staying below a 1% increase from the previous year, compared to the official rates of around 6% during 2022.