Detailed narrative
Strong Q1 Performance Driven by International Traffic
Corporación América Airports commenced 2026 with a robust first quarter, reporting solid traffic growth, significant revenue momentum, and enhanced profitability. Passenger traffic across its airports reached nearly 22 million, marking a 7% year-over-year increase. This growth was primarily fueled by a 14% surge in international travel, with Argentina, Italy, and Ecuador experiencing double-digit international growth.
Domestic traffic remained largely stable, with growth in Brazil and Ecuador offsetting declines in Argentina and Italy due to capacity constraints and operational disruptions.
Revenue and Profitability Outpace Traffic Growth
The company's revenue performance was particularly strong, with total revenues (excluding IFRIC 12) increasing 19%, nearly three times the passenger traffic growth. This was attributed to healthy international passenger volumes and increased revenue per passenger from Commercial activities. Adjusted EBITDA (excluding IFRIC 12) grew 26% to $196 million, leading to a 2.3 percentage point margin expansion.
Argentina and Armenia were key contributors to EBITDA growth, while disciplined cost management, particularly in Argentina, helped operating leverage.
Strengthened Balance Sheet and Capital Allocation
The balance sheet continued to strengthen, with total liquidity reaching $772 million, an 8% increase from year-end 2025. Net debt declined to $490 million, resulting in a net leverage ratio of 0.5x. This financial flexibility supports ongoing operations, disciplined growth, and the potential introduction of a dividend policy.
Management is actively evaluating new tender processes and M&A opportunities, alongside advancing existing projects in Iraq and Angola, which are expected to require marginal equity contributions.
Strategic Concession Extensions and Investment Programs
A significant strategic milestone was achieved in Armenia with the extension of the concession by 35 years to 2067, coupled with a new $425 million investment program. This program aims to expand infrastructure, support passenger traffic and commercial activities, and develop Zvartnots Airport as a regional hub.
In Ecuador, the Galapagos extension and economic rebalancing further solidified the company's presence. Discussions are also progressing for the Baghdad and Luanda airport awards.
Regional Performance Highlights
Argentina saw a 6% traffic increase, driven by a 19% rise in international traffic, despite domestic traffic being slightly lower due to fleet constraints and a strike. Italy's traffic grew over 7%, primarily from international passengers. Brazil's traffic increased 12%, benefiting from a better aviation environment.
Armenia's traffic was up 8.5%, supported by expanded airline activities, despite regional disruptions. Ecuador's traffic increased 7%, with international traffic up over 10%, though domestic demand faced high airfare constraints.
Cargo Business Growth and Cost Management
The cargo business also delivered a strong quarter, with cargo-related revenues up 16% year-over-year, notably from Argentina and Uruguay. Total cargo volume increased 1.7%. On the cost front, total costs and expenses (excluding IFRIC 12) rose 13%, well below the 19% revenue growth.
In Argentina, costs increased just over 9%, significantly below the 16% revenue growth, demonstrating strong operating leverage and cost discipline despite inflation outpacing peso depreciation by 14 percentage points.