Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) Q1 2024 Earnings Conference Call April 23, 2024 10:00 AM ET

Company Participants

Adolfo Castro - Chief Executive Officer

Conference Call Participants

Alejandro Fuchs - ITAU
Rodolfo Ramos - Bradesco BBI
Guilherme Mendes - JPMorgan
Alberto Valerio - UBS
Anton Mortenkotter - GBM
Fernanda Recchia - BTG
Jay Singh - Citi
Joao Frizo - Goldman Sachs
Gabriel Himelfarb - Scotiabank
Arthur Suelotto - APO Capital
Francisco Suárez - Scotiabank

Operator

Good day, ladies and gentlemen, and welcome to ASUR’s First Quarter 2024 Results Conference Call. My name is Sherry, and I will be your operator. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder, today's call is being recorded.

Now, I would like to turn the call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Adolfo Castro

Thank you Sherry. And good morning everyone. Before I begin discussing our results, let me remind you that certain statements made during this call may constitute forward-looking statements which are based on current management expectations and beliefs and are subject to several risk and uncertainties that could cause actual results to differ material, including factors that may be beyond our company's control.

As usual, additional details about our quarterly results can be found in our press release, which was issued yesterday after market close and is available on our website in the Investor Relations section. Following my presentation, I will be available for Q&A.

Moving on to the review of ASUR's operational and financial performance for the quarter. As usual, all comparison discussed will be year-on-year unless specified otherwise. We saw record high passenger traffic in the quarter at 18.6 million travelers up 4% year-on-year. [Indiscernible] performance was mainly driven by increases of 4% in Mexico, 12% in Puerto Rico, which more than upset the low single-digit decline in Colombia.

By region, Puerto Rico, again, stood at the region with the strongest traffic growth, with traffic up nearly 12% driven by a double-digit increases in both domestic and international traffic. Traffic in Mexico was up nearly 4% as high single-digit growth in international and passenger driven mainly by traffic to and from the United States and Canada more than offset the low single-digit decline in domestic travel.

In addition to the impact from the initial effects of the Pratt & Whitney engine problems we have experienced in the last quarters domestic traffic was also affected by reduction in air traffic movements at Mexico City Airport, starting January 8th this year. Recall this airport accounted for 45% of tourist domestic traffic in 2023 and we expect this to continue negatively impacting domestic traffic this year.