Corporación América Airports Announces 1Q20 Results

Progress on plan to mitigate impact of Covid-19, including cost reductions and debt refinancing to preserve liquidity

LUXEMBOURG–(BUSINESS WIRE)–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 reported today its unaudited, consolidated results for the three-month periods ended March 31, 2020. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”).

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

First Quarter 2020 Highlights

  • Consolidated revenues of $302.8 million, down 16.0% YoY. Excluding the impact of IFRS rule IAS 29, revenues declined 18.3%, or $68.6 million, to $306.6 million, mainly due to a $35.9 million drop on Aeronautical revenues driven by the impact of the COVID-19 pandemic, and lower construction service revenue in Argentina reflecting lower capex in the period.
  • Performance of key operating metrics:

    • Passenger traffic down 16.8% YoY to 17.1 million
    • Cargo volume decreased 20.6% to 83.3 thousand tons
    • Aircraft movements declined 16.0% to 178.6 thousand
  • Operating Income declined 59.3% to $31.3 million from $76.8 million in 1Q19, primarily due to the impact of the Covid-19 pandemic on revenues and a $4.5 million impairment recorded in Brazil in 1Q20
  • Adjusted EBITDA was $80.9 million, down 30.8% YoY, with Adjusted EBITDA margin Ex-IFRIC12 contracting 734 bps to 31.3%. Excluding the impact from the above-mentioned $4.5 million impairment, Adjusted EBITDA would have been $85.4 million, down 27% YoY, with Adjusted EBITDA margin Ex-IFRIC 12 contracting 424 bps.
  • Ex-IAS 29, Adjusted EBITDA declined 33.1% YoY, to $81.6 million, and Adjusted EBITDA margin Ex-IFRIC12 contracted 773 bps to 31.3%. Excluding the impact from the above mentioned impairment loss recorded in Brazil, Adjusted EBITDA ex-IAS 29 would have declined 29.4% YoY to $86.1 million, with Adjusted EBITDA margin Ex-IFRIC 12 down 599 bps to 33.0%, from 39.0% in the same period last year.
  • Subsequently to the end of the quarter, the Company’s Argentine subsidiary Aeropuertos Argentina 2000 launched and executed an offer to exchange its outstanding Senior Secured Notes due 2027, with a total of 86.73% of the original principal amount tendered for exchange. Settlement date was May 20, 2020.
  • Subsequently to the end of the quarter, CAAP’s subsidiary ACI Airport Sudamérica S.A. launched an offer to exchange its outstanding Senior Secured Guaranteed Notes due 2032. Approximately 92.15% of the total original principal amount was tendered for exchange before the Early Participation Deadline of May 14, 2020.

CEO Message

“We are navigating an unprecedented crisis that has severely disrupted the economy worldwide and specifically the travel industry, which has resulted in significant declines in passenger traffic starting mid-March, 2020 when our operations began to see the impact of government shutdown measures,” noted Mr. Martín Eurnekian, CEO of Corporación América Airports.

“Over the past months we have rapidly introduced initiatives to mitigate the impact of COVID-19 and strengthen our financial position. On the balance sheet front, through a series of transactions in Argentina and Uruguay, in May we successfully refinanced nearly 50% of our principal and interest payments due over the next 12 months, extending maturities and enhancing flexibility. We have also made significant progress on protecting our liquidity by reducing operating costs and expenses, deferring concession fee payments and limiting capex, while we continue to work on obtaining additional funding. In terms of cost controls, as most of these initiatives were implemented late March and early April, the benefit is anticipated to flow starting second quarter results. Simultaneously, we have begun negotiations with regulators to review the economic re-equilibrium of concession agreements.

“Looking ahead, we operate a modern network of domestic and international airports that will play an important role in reigniting economic growth. The path to recovery, however, remains uncertain and is contingent on a number of factors including the successful development of medical treatments or vaccines, government assistance, consumer confidence to travel and the evolution of the global economies. Overall, the situation is fluid with some countries starting to consider lifting restrictions on domestic travel and/or opening borders for regional flights in the near term, as well as lifting quarantines. This could indicate we are starting to see initial signs of a gradual recovery process shaping up. With this in mind, we have started to build our recovery plan, preparing for a new world and developing the new safety and health standards that will be critical to reactivate the travel industry in the near future.

“In conclusion, I wish to thank our teams and partners worldwide for their hard work during these difficult times, as we move together in overcoming this global challenge and rebuild travel,” concluded Mr. Eurnekian.

Operating & Financial Highlights

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


1Q20 as


1Q19 as


% Var as


IAS 29


1Q20 ex

IAS 29

1Q19 ex

IAS 29

% Var ex

IAS 29

Passenger Traffic (Million Passengers) (1)(2)















Aeronautical Revenues








Non-Aeronautical Revenues








Revenue excluding construction service








Operating Income








Operating Margin



-1,099 bps



-593 bps

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
















Adjusted EBITDA








Adjusted EBITDA Margin



-572 bps



-591 bps

Adjusted EBITDA Margin excluding Construction Service



-734 bps



-773 bps

Net Debt to LTM EBITDA




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



Note that preliminary passenger traffic figures for Ezeiza Airport, in Argentina, for 2019 as well as January 2020 were adjusted to include additional inbound passengers not accounted for in the initial count, for an average of approximately 5% of total passenger traffic at Ezeiza Airport and 1% of total traffic at CAAP, during that period. Importantly, inbound traffic does not affect revenues, as tariffs are applicable on departure passengers.



Preliminary data on 1,256 in January and 195 in February 2020 at Brasilia Airport, due to delays in the submission of information by third parties. Moreover, starting November 2019 the Company has reclassified its passenger traffic figures for Brasilia Airport between international, domestic and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.

Update on Action Plan to Mitigate Impact of COVID-19

Governmental Flight Restrictions

The recent COVID-19 virus outbreak has generated a disruption in the global economy, and in particular, the aviation industry resulting in drastic reductions in passenger traffic. During March 2020, several governments around the world, including Latin American governments, implemented drastic measures to contain the spread, including the closing of borders and prohibition of travel, domestic lockdowns and quarantine measures. The governments and transportation authorities across the Company’s countries of operations issued flight restrictions. Currently, in Argentina, Ecuador and Peru, borders are still closed with bans on domestic and international flights, with airports only operating cargo and repatriation flights. Similarly, in Uruguay, borders are closed to commercial passenger traffic. In Argentina, the regulator recently issued a resolution prohibiting airlines to sell air tickets for travel before September 1, 2020. In the rest of CAAP’s countries or operations, while borders remain open, the Company is only operating cargo and domestic flights reflecting the global disruption in travel, except for Armenia, where CAAP is also operating international flights.

Impact of COVID-19 On CAAP’s April and May Passenger Traffic and Cargo activity

The Company’s operations have been severely impacted by the introduction of the flight restrictions mentioned above as well as flight bans in many other countries worldwide. This resulted in a 98.3% decline in passenger traffic in April 2020 and a similar decline in the first two weeks of May. While cargo activity was also impacted, cargo volume in April 2020 declined 56.2% year-on-year, as transportation of medical and essential items continue to support the continuity of supply chains. This was driven by all countries except Uruguay which benefited from some extraordinary cargo movements that month.

Implementation of Mitigation Initiatives Focused on Preserving Financial Position

The crisis committee, composed of the Company’s CEO and operating CEOs of each subsidiary, continues to assess operations, with the goal of enhancing the sustainability of the Company’s business. CAAP is advancing on its four-pronged strategy with a number of actions aiming to mitigate the negative impact of the COVID-19 virus implemented:

  • Employees and passengers: The Company has further enhanced safety and hygiene protocols across its airports to protect the well-being of passengers and operating personnel. For essential staff working on premises, health gear was provided and additional sanitizing policies established. The Company has also established remote working when possible, and is adjusting its safety policies to ensure a successful transition back to office premises when restrictions are lifted.
  • Cost controls and cash preservation measures: CAAP has made progress on lowering operating costs by:

    • Reducing personnel expenses in Brazil, Uruguay, Italy and Armenia, including lay-offs, salary reductions, placing operating employees on furlough and/or reduction of working hours. In Italy, Uruguay and Armenia, employees under furlough are receiving government unemployment subsidies. In Argentina, the Company is receiving government assistance to cover a portion of April salaries, representing a monthly relief of $1.2 million dollars and has applied to receive the relief in May, pending government approval. The government could eventually further extend this assistance.
    • Reducing maintenance and other operating expenses, through the revision of maintenance contracts across all countries of operations.

As a result of these combined measures, the Company expects total cash operating costs and expenses excluding concession fees to decrease by approximately 43% under this crisis scenario, based on current Company’s estimates for 2Q20 and actual 2Q29 figures ex-IAS29. All of the Company’s operations are under a variable concession fee regime, with the exception of the Brazilian concessions, which are subject to a combination of variable and fixed concession fee structure.

The Company continues to also aggressively manage its working capital by negotiating with its suppliers the extension of payment terms and reducing its capex program.

  • Negotiations with regulatory bodies and government support: The Company has started discussions with regulatory agencies to renegotiate concession fee payments to align to the current environment. In Brazil, approval to defer to December 2020 the variable and fixed concession fee payments that were due May and July, respectively, was already obtained. In Italy, the Company obtained regulatory approval to defer until January 2021 the semi-annual concession fee payment originally due July 2020. The calculation of the amount will be made based on the actual number of passengers in 2020. Negotiations with regulators have also began in Ecuador and Uruguay.
  • Re-equilibrium of the concession agreements: Concession contracts in Argentina, Armenia and Italy allow for guaranteed returns. The concession contracts in Brazil and Ecuador have force majeure re-equilibrium clauses. In Brazil, the Company has initiated conversations to begin the process of requesting economic re-equilibrium, while in Ecuador it has already filed a request to begin an economic re-equilibrium process of the Guayaquil concession. In Uruguay the Company expects to initiate the process to request the economic re-equilibrium of the Montevideo concession. The amounts and mechanisms for compensation will be negotiated with authorities. CAAP is in the initial stages of this process, which requires going through administrative regulatory channels.

Financial position and liquidity: As cash preservation is a critical focus, the Company has taken the following measures:

  • As a result of renegotiations with debt holders and banks, the Company has deferred or refinanced a total of $126 million dollars in principal and interest payments. Debt maturities originally due over the next 12 months declined to approximately $149.0 million from $278 million as of March 31, 2020, as follows:

    • In Argentina, the Company completed an exchange offer for its $400 million international notes due 2027, with 86.73% of the principal amount tendered for exchange, resulting in a deferral of a total of $60 million dollars in principal and interest payments originally due over the next 12 months. It also deferred a total of $36.6 million dollars in principal due 2020 in connection with its $120 million Credit Facility and a $10 million bilateral loan.
    • In Uruguay, the Company launched an exchange offer for its $200 million notes due 2032, and obtained 92.15% of the principal amount tendered for exchange at the early participation deadline. As a result, CAAP has the option to defer up to $20.5 million dollars in principal and interest payments originally due over the next 18 months. In addition, the Company deferred a total of $8.7 million in principal payments due 2020 under local notes.
    • In Brazil, last March the Company obtained a 6-month deferral of principal and interest payments until October of all of its debt in Brazil, originally due until September.
  • Cancelled all non-mandatory capital investments and deferred non-priority projects. In 1Q20, $52.0 million were invested in capital expenditures, including expansion works along with most of the minimum maintenance capex planned for the year.
  • Implemented a set of cost control measures to reduce operating expenses and negotiate payment terms with our suppliers to limit additional cash outflows.
  • Suspended dividends to third parties in the concessions in Italy and Ecuador for an amount of $17 million dollars. Moreover, CAAP currently does not pay corporate dividends and the Company does not have in place a share repurchase program either.
  • CAAP continues to work closely with the financial community particularly in its main markets, to preserve the Company’s liquidity and financial flexibility in this challenging environment. In 1Q20, the Company obtained additional funding for an amount of $37 million dollars.

Preparation to restart operations

The path to recovery still remains uncertain and is dependent on a number of factors including the successful development of medical treatments or vaccines, government assistance, consumer confidence to travel and the evolution of the global economies.

As the situation evolves and restrictions begin to be gradually lifted, the Company has started the development of customized protocols across its airports of operations to ensure maximum health, safety and comfort for passengers and employees when activity resumes. A dedicated team is working together with the aviation industry and regulators to set and redefine new safety and health protocols, also monitored and will be approved by infectious diseases experts.

The Company is adapting its airports to the new environment, by implementing measures to minimize the risk of infection of passengers and employees, including sanitization and social distance measures, screening and biosecurity control procedures, and the implementation of digital solutions to reduce contacts with airports equipment while limiting the crowds.

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, May 22, 2020



Mr. Martín Eurnekian, Chief Executive Officer



Mr. Raúl Francos, Chief Financial Officer



Ms. Gimena Albanesi, Investor Relations Manager



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




Participants can access the replay through May 29, 2020 by dialing:



1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10144435.

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 23 of this report.

Definitions and Concepts

Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers’ revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services.

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 2019, Corporación América Airports served 84.2 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.


Investor Relations Contact
Gimena Albanesi

Investor Relations Manager

Phone: +5411 4852-6411

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