Analyst Note| Brian Bernard, CFA, CPA |
Grupo Aeroportuario del Sureste reported weak second-quarter results in line with our expectations, showing the continued impact of the coronavirus pandemic. We’re maintaining our fair value estimate of $131 per ADR, as we continue to expect air travel demand to be challenged in 2020. Total revenue fell 56.6% year over year, largely due to weaker aeronautical (down 78%) and nonaeronautical (down 75.3%) growth. Passenger traffic fell 94% to 846 thousand passengers, with negative growth in domestic traffic (down 91.3%) and international traffic (down 98.5%). Air traffic in the quarter was subdued by the suspension of nonessential activities by local governments.