Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) Q2 2024 Earnings Conference Call July 29, 2024 11:30 AM ET

Company Participants

Luis Emmanuel Camacho Thierry - Investor Relations Manager
Ricardo Duenas Espriu - Chief Executive Officer
Ruffo Perez Pliego - Chief Financial Officer

Conference Call Participants

Pablo Ricalde - Santander
Rodolfo Ramos - Bradesco BBI
Jens Spiess - Morgan Stanley
Stephen Trent - Citi
Isabela Salazar - GBM
Andres Aguirre - GBM
Andressa Varotto - Private Investor
Alan Macias - Bank of America
Anton Mortenkotter - GBM

Operator

Greetings. Welcome to the Grupo Aeroportuario del Centro Norte OMA Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

I will now turn the conference over to your host, Emmanuel Camacho. You may begin.

Luis Emmanuel Camacho Thierry

Thank you, Shimali. Hello, everyone. Welcome to OMA's second quarter 2024 earnings conference call. We're delighted to have you join us today as we discuss our Company's performance and financial results for the past quarter. Participating today are CEO, Ricardo Duenas; and CFO, Ruffo Perez Pliego.

Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements which are based on current management expectations and beliefs and are subject to a number of recent uncertainties that could cause actual results to differ materially, including factors that may be beyond our control.

With that, I'll turn the call over to Ricardo Duenas for his opening remarks.

Ricardo Duenas Espriu

Thank you, Emmanuel. Hello, everyone, and thank you for joining us today. This morning, I will review our operational performance and financial results then I will briefly comment on recent CapEx milestones occurred during the quarter, and finally, we will be pleased to answer some questions.

In the second quarter of 2024, OMA's passenger traffic reached 6.5 million, a decrease of 2.4% versus the second quarter of last year. Domestic passenger decreased 4.3%, excluding Acapulco, where tourist infrastructure continues to recover from the impact of hurricane OTIS in October '23, our domestic passenger traffic declined by 3.1%.

This was primarily due to the Pratt & Whitney engine recall affecting the fleet of Mexican low-cost carriers. The most impacted airports were Monterrey and Culiacan, particularly on routes such as Monterrey to Cancun and Mexico City and Culiacan to Mexicali and Tijuana.

Despite a 10% decline in our routes to the Mexico City International Airport during the quarter, mainly due to the reduction of movements per hour announced by the Mexican Government at the beginning of the year, our connectivity to the Mexico City metropolitan area, including also Toluca and Santa Lucia airports increased by 2.8%.