Corporación América Airports Announces 2Q19 Results

Passenger traffic up 3.8% with growth of 12.3% YoY in Argentina and 8.9% in Armenia further supported by increases in Ecuador and Peru, despite declines in Brazil and Uruguay

LUXEMBOURG--()--Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”) the largest private sector airport operator based on the number of airports under management and the tenth largest private sector airport operator worldwide based on passenger traffic, reported today its unaudited, consolidated results for the three- and six- month periods ended June 30, 2019. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board.

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 (“IAS 29”), as detailed on Section “Hyperinflation Accounting in Argentina.”

Second Quarter 2019 Highlights

  • Consolidated revenues of $412.6 million, up 3.9% YoY. Excluding the impact of IFRS rule IAS 29, revenues remained stable at $395.5, mainly due to higher construction service revenue in Argentina reflecting higher capex in the period.
  • Performance of key operating metrics:
    • Passenger traffic up 3.8% YoY to 19.8 million
    • Cargo volume increased 6.6% to 104.7 thousand tons
    • Aircraft movements declined 4.0% to 206.9 thousand
  • Operating Income declined 18.7% YoY, to $76.5, mainly impacted by IAS 29, and the operating margin contracted to 18.5% from 23.7% in 2Q18
  • Adjusted EBITDA was $118.5 million, down 2.2% YoY, with Adjusted EBITDA margin Ex-IFRIC12 expanded 53 bps to 37.7%
  • Ex-IAS 29, Adjusted EBITDA reached $113.1 million, declined 6.6% YoY and Adjusted EBITDA margin Ex-IFRIC12 expanded 19 bps to at 37.7%

CEO Message

Commenting on second quarter 2019 results, Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: “The quarter was characterized by ongoing headwinds, particularly in Argentina, our largest market, and to a lesser extent in Brazil. We also experienced a continued mix shift towards more affordable domestic traffic and weaker commercial revenues. At the same time, traffic at our Brazilian airports were impacted by the cessation of operations of Avianca Brazil. Despite these challenges, comparable Adjusted EBITDA margin Ex-IFRIC12 was flat at 37% year-on-year. Better margins this quarter in Italy and Uruguay, were more than offset by margin contraction in Argentina, Ecuador and Armenia. Over 20 million passengers travelled through our airport network in 2Q19 – up approximately 4% year-on-year as we continue to add new routes and airlines. This growth reflects domestic traffic increasing 9% partially offset by international traffic which was down in the low single digits.

Looking towards the second half of the year, weak macro conditions and heightened volatility in Argentina surrounding the presidential election add another layer of uncertainty. In Brazil, we expect Avianca’s former capacity at Brasilia Airport to be gradually restored by the three other carriers with domestic operations at this airport commencing by year-end, while in Italy, as we continue to monitor the evolution of Alitalia and the development of Brexit, we are expecting a good summer travel season.

Despite these near-term challenges, we have a successful track record of operating in Argentina for over 20 years, many of which were under uncertain scenarios. Our business model is resilient with nearly 80% of revenues generated in US dollars. Furthermore, our solid balance sheet also provides flexibility and support for our strategy of advancing on investment projects as we modernize and expand capacity to meet overall growing demand. In turn, the Company will be better positioned for growth as volatility in Argentina recedes and the macro environment improves.”

Operating & Financial Highlights

(In millions of U.S. dollars, unless otherwise noted)



2Q19 ex
IAS 29

IAS 29

2Q19 as

% Var as

% Var ex IAS

Passenger Traffic (Million Passengers)














Aeronautical Revenues







Non-Aeronautical Revenues







Revenue excluding construction service







Operating Income







Operating Margin







Net (Loss) / Income Attributable to Owners of the Parent














Adjusted EBITDA







Adjusted EBITDA Margin







Adjusted EBITDA Margin excluding Construction Service







Net Debt to LTM EBITDA







Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.

To obtain the full text of this earnings release and the earnings presentation, please click on the following link:



9:00 a.m. Eastern time, August 23, 2019


Mr. Martín Eurnekian, Chief Executive Officer


Mr. Raúl Francos, Chief Financial Officer


Ms. Gimena Albanesi, Head of Investor Relations


1-888-347-6492 (U.S. domestic); 1-412-317-5258 (international)



Participants can access the replay through August 30, 2019 by dialing:


1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10134225.

Use of Non-IFRS Financial Measures

This announcement includes certain references to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction service, as well as Net Debt:

Adjusted EBITDA is defined as income for the period before financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.

Adjusted EBITDA excluding Construction Service (“Adjusted EBITDA ex-IFRIC”) is defined as income for the period before construction services revenue and cost, financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin excluding Construction Service (“Adjusted EBITDA Margin ex-IFRIC12”) excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets and is calculated by dividing Adjusted EBITDA excluding Construction Service revenue and cost, by total revenues less Construction service revenue.

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction Service are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding Construction Service enhances an investor’s understanding of our performance and are useful for investors to assess our operating performance by excluding certain items that we believe are not representative of our core business. In addition, Adjusted EBITDA and Adjusted EBITDA excluding Construction Service are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods, capital structure or income taxes and construction services (when applicable).

Net debt is calculated by deducting “Cash and cash equivalents” from total financial debt.

Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine Segment, by the average foreign exchange rate of the Argentine Peso against the US Dollar in the period. Percentage variations ex-IAS 29 figures compare results as presented in the prior year quarter before IAS 29 came into effect, against ex-IAS 29 results for this quarter as described above. For comparison purposes the impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company’s largest subsidiary in Argentina, is presented separately in each of the applicable sections of this earnings release, in a column denominated “IAS 29”. The impact from “Hyperinflation Accounting in Argentina” is described in more detail page 20 of this report.

Definitions and Concepts

Construction Service revenue and cost: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%.

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport concessions. The Company is the largest private airport operator in the world based on the number of airports and the tenth largest based on passenger traffic. Currently, the Company operates 52 airports in 7 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Peru, Ecuador, Armenia and Italy). In 2018, Corporación América Airports served 81.3 million passengers. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit

Forward Looking Statements

Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believes,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU, AMD or the PEN against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the ‘Cautionary Statement’ and the ‘Risk Factor’ sections of our annual report on Form 20-F for the year ended December 31, 2018 and any of CAAP’s other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences.


Investor Relations Contact
Gimena Albanesi
Head of Investor Relations
Phone: +5411 4852-6411


Investor Relations Contact
Gimena Albanesi
Head of Investor Relations
Phone: +5411 4852-6411