Grupo Aeroportuario del Sureste(ASR)2025-04-10 20:31Revenue and Passenger Traffic - In 2023 and 2024, passenger charges represented 45.7% and 46.1% of the company's consolidated revenues, respectively[13]. - Total passenger traffic in the company's airports recovered for 2024, increasing by 1.1% compared to 2023[25]. - In 2022, 2023, and 2024, 63.4%, 61.8%, and 62.2% of international passengers in the company's Mexican airports arrived or departed on flights to or from the United States[28]. - In 2022, 2023, and 2024, 53.1%, 51.5%, and 52.8% of revenues from Mexican passenger charges were derived from international passengers[28]. - Revenues from Mexican passenger charges accounted for 16.6% of total revenues in 2024[49]. - In 2024, 52.6% of Mexican domestic passengers and 51.8% of Colombian domestic passengers relied on Mexico City International Airport and El Dorado International Airport, respectively, indicating a high dependency on these airports for traffic[75][76]. - Overall Mexican domestic passenger traffic to and from Mexico City decreased by 13.8% in 2024 compared to 2023[75]. - In 2024, 59.3% of total revenues were earned from aeronautical services at all airports, with 53.7%, 59.1%, and 60.1% in 2022, 2023, and 2024 respectively[137]. Economic and Political Factors - The ongoing military conflict involving Russia and Ukraine could cause significant disruptions in supply chains, adversely affecting the travel industry and the company's business[16]. - The company cannot predict how economic conditions in the United States, Mexico, or Colombia may develop in the future, which could affect tourism and travel decisions[30]. - The Colombian economy's fluctuations, including currency devaluation and changes in fiscal policies, could adversely affect the company's financial condition and results of operations[32]. - The economy of Puerto Rico has been in a recession since 2006, which has worsened due to various factors including natural disasters and the COVID-19 pandemic[33]. - The Mexican government has significant influence over the economy, which could impact market conditions and the company's financial performance[160]. - Political developments in Mexico may adversely affect the company's operations and financial condition[159]. - The U.S. is Mexico's primary trading partner, receiving over 80% of Mexico's total exports, and any weakened trading ties could adversely impact the Mexican economy and the company's business[171]. - The company cannot predict the impact of political, economic, and social conditions on the Mexican economy, which may adversely affect its financial condition and results of operations[165]. - Political instability and violence in Colombia may adversely affect the economy and operations of the company[190]. Financial Performance and Risks - The company has outstanding indebtedness of U.S.136.7 million of that being floating rate[64]. - Increased interest rates could adversely affect the company's financial condition, impacting debt service costs and overall results of operations[64]. - The company is exposed to risks related to construction projects, which could lead to delays or budget overruns affecting its ability to expand capacity at Mexican airports[86]. - The company’s insurance policies may not provide sufficient coverage against all liabilities, exposing it to potential financial risks[101]. - The company is subject to potential fines and penalties pending the outcome of its appeal against the Mexican government's tax treatment of airport concessions[57]. - The company is currently evaluating the potential impact of new concessions granted by the government that could compete with its airports[132]. Regulatory and Compliance Issues - The FAA downgraded Mexico's aviation safety rating to Category 2 on May 25, 2021, which affected 0.8%, 0.7%, and 1.1% of passengers traveling to or from the U.S. in 2022, 2023, and 2024 respectively[60]. - The Mexican government increased the concession fee for federal airports from 5.0% to 9.0% of gross annual regulated revenues, effective January 1, 2024[120]. - The amendments to the Mexican Airport Law enhance regulatory authority over civil aviation, including the ability to revoke permits and impose sanctions for non-compliance[119]. - The company faces risks from potential violations of the Mexican Airport Law, which could lead to fines or termination of concessions[128]. - The creation of a single authority for free competition may affect the enforcement of competition laws and the company's operations[126]. Operational Developments - The company incurred major capital expenditures in Puerto Rico during 2024, including costs related to the reconstruction of Terminal D and Runway 8/26[89]. - The company entered into an investment agreement in May 2023 for developing an international airport in Bavaro, Dominican Republic, with a total estimated investment of U.S.48.1 million remains pending[89]. - The company completed all projects under the 2014 and 2016 investment agreements with the Colombian government for certain airports by March 6, 2020[88]. - The Felipe Carrillo Puerto International Airport, inaugurated on December 1, 2023, is expected to impact passenger traffic and operating results, although the extent is uncertain[134]. Taxation and Fiscal Policies - The Colombian government passed Law 2277, introducing a new permanent equity tax with rates ranging from 0.5% to 1.5% based on net equity, effective January 1, 2023[185]. - The dividend tax rate for local and foreign shareholders increased to a progressive marginal rate of up to 39% for Colombian individuals and a flat 20% for non-resident shareholders[185]. - The long-term capital gains tax rate rose from 10% to 15%[185]. - A minimum corporate income tax of at least 15% was established based on the effective tax rate calculated on book profit[185]. - The Colombian government introduced a new tax reform bill in September 2024, proposing to increase equity tax rates up to 2% and long-term capital gains tax from 15% to 20%, but it was rejected in December 2024[188]. Future Outlook - IATA forecasts global airline industry net profits of U.S.1,007 billion for 2025[43]. - Forward-looking statements are made in various reports and communications, indicating the company's expectations and plans for future performance[209]. - The company uses terms like "believe," "anticipate," and "expect" to identify forward-looking statements, which are not the exclusive means of identification[210].