Aeroports De Paris Performing In Line With Expectations as Traffic in Paris Recovers Sharply

Narrow-moat Aeroports de Paris is performing in line with expectations. First-quarter 2022 revenue increased by 79% year over year, driven by an 80% increase in passenger traffic. Traffic levels in the quarter reached 63% of 2019 levels. Management maintained traffic guidance of 70% to 80% of 2019 levels for the full year, which we believe could be easily achieved or exceeded given that traffic reached nearly 70% of precoronavirus levels in March. EBITDA margins for the full year are expected to range between 30% and 35%. We maintain our EUR 115 fair value estimate with shares currently trading in overvalued territory.