Latin American air traffic demand has recovered faster than global averages (as per IATA data), and domestic travel within Mexico has recovered faster than the Latin American average, helped by stronger "visiting friends and relatives" (or VFR) demand and leisure travel, as options to travel outside the country have been more limited by the pandemic. That, in turn, has driven a faster, stronger turnaround at Grupo Aeroportuario del Sureste (ASR) ("Sureste") than I'd expected in the fall of 2020, and these shares have led the group since then on that strong traffic recovery.
I believe Sureste is still leveraged to attractive trends overall, and particularly for its Cancun, Puerto Rico, and Colombia airports. What's more, cost leverage has been impressive here, and I wouldn't necessarily assume that that is going to compress. My only real issue at this point is valuation - while Sureste still has good leverage to a recovery in international tourist traffic to Mexico as the pandemic recedes, the valuation reflects a lot of that opportunity now.
Click this link to read the full article:
Stronger Tourism Has Helped Propel Grupo Aeroportuario Del Sureste Past Its Rivals
No comments:
Post a Comment