Hurricane Odile likely to have more impact on 4Q14 results, says GAP

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Friday, October 24, 2014

Hurricane Odile is likely to have a larger impact on the operations of Mexican airport operator GAP during the fourth quarter than it had during the previous one, said GAP CEO Fernando Bosque during a 3Q14 results call.

"We are likely to feel more of an effect in 4Q14 due to the cancellation of planned trips, as a result of the perception that the area is not ready to receive tourists," said Bosque.

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Category 3 Hurricane Odile made landfall on September 14, causing severe damage to housing and infrastructure in Mexico's Baja California Sur state.

Nearly 27,000 tourists were airlifted out of the area after Los Cabos airport (operated by GAP) was shut down between September 15 and October 2. The airport is now fully operational and all damage has been covered by insurance.

The airport closure had a "small impact" on traffic (down 4% on the prior-year-period), but the situation could have been worse if the hurricane had hit during peak tourist season, said Bosque.

RESULTS

GAP reported a net profit of 534mn pesos (US$39.5mn) for 3Q14, up 14.9% on the prior-year period, according to the company's results report.

Total revenue came to 1.37bn pesos, a 3.8% year-over-year increase, with aeronautical and non-aeronautical revenue up 6.4% and 11.5%, respectively.

Ebitda was up 8.1% at 875mn pesos for the quarter.

Total passenger numbers were up 3.1%, with GAP's 12 airports handling 6.13mn passengers during the quarter.

Domestic traffic increased 0.3%, while international traffic increased 9.7% year-on-year.