Corporacion America Airports (NYSE:CAAP) reported a strong start to 2026, with first-quarter passenger traffic, revenue and profitability all increasing year over year as international travel remained the main driver across its airport portfolio.
Chief Executive Officer Martín Eurnekian said the company saw “solid traffic growth, continued revenue momentum, strong profitability, and further strengthening of our balance sheet” during the quarter. Passenger traffic rose 7% year over year to nearly 22 million travelers, while total revenue excluding IFRIC 12 increased 19%, nearly three times the pace of passenger growth.
International Travel Drives Broad-Based Traffic Growth
Eurnekian said international traffic increased nearly 14% in the quarter, with gains across all countries in the company’s portfolio and double-digit growth in Argentina, Italy and Ecuador. Domestic traffic was broadly stable, with growth in Brazil and Ecuador offsetting softer volumes in Argentina and Italy.
In Argentina, total passenger traffic increased nearly 6%. International traffic rose 19%, supported by routes involving Brazil and the Caribbean, along with demand during the summer and carnival periods. Domestic traffic declined slightly, reflecting temporary airline fleet constraints and a 24-hour nationwide strike in February that disrupted operations. Eurnekian said key leisure destinations including Bariloche, Córdoba, Iguazú and Mendoza still performed well.
Italy traffic rose just over 7%, driven by international passengers, which accounted for close to 80% of total traffic and increased more than 10%. Both Florence and Pisa contributed to the increase, while domestic traffic was modestly lower due mainly to reduced activity at Florence and weather-related cancellations and diversions in January.
Brazil traffic increased 12%, including nearly 6% domestic growth and a more than 20% increase in transit passengers. Eurnekian said Brasília continued to benefit from its location and infrastructure, maintaining its role as an important domestic hub.
Uruguay traffic rose nearly 4%, helped by the summer season and additional frequencies. New and resumed routes connecting Montevideo and Punta del Este with destinations in Brazil and Argentina supported demand. Armenia traffic increased 8.5%, supported by expanded airline activity, additional routes and higher frequencies, including the Wizz Air base at Zvartnots launched in late 2025.
In Ecuador, passenger traffic rose 7% despite ongoing security concerns. International traffic increased more than 10%, helped by higher frequencies to the U.S. and continued activity on European routes. Domestic traffic also improved, though Eurnekian said high airfares remain a constraint on demand.
Revenue Growth Outpaces Traffic
Arruda said revenue growth was broad-based, with total revenue excluding IFRIC 12 increasing 16% in Argentina, 39% in Armenia and 31% in Brazil. All other countries also posted double-digit revenue growth. He said the appreciation of the euro and Brazilian real supported U.S. dollar results.
Aeronautical revenue increased 17%, led by Argentina and supported by growth across the portfolio. Argentina’s aeronautical revenue rose 18%, reflecting the 19% increase in international traffic. Brazil, Armenia, Uruguay and Italy also delivered double-digit growth, while tariff increases in Brazil, Uruguay and Ecuador contributed to the result.
Commercial revenue rose 21%, well above traffic growth. Arruda cited higher fuel and cargo contributions, along with growth in VIP lounges, food and beverage, duty-free and parking. Every country in the portfolio achieved double-digit commercial revenue growth.
The cargo business also posted revenue growth, with cargo-related revenue up 16%. Cargo volumes increased 1.7% overall, as gains in Armenia and Argentina offset softer trends in Brazil, Italy, Uruguay and Ecuador.
Margins Expand as Costs Rise More Slowly Than Revenue
Total costs and expenses excluding IFRIC 12 rose 13%, below the 19% increase in revenue. Cost of services increased 14%, largely due to higher fuel costs in Armenia, higher concession fees tied to revenue growth, and increased salaries and social contributions in Argentina. Selling, general and administrative expenses rose 19%, mainly reflecting higher compensation costs and service fees associated with new business activities.
Arruda said Argentina’s total costs and expenses increased just over 9%, well below its 16% revenue growth, reflecting operating leverage and cost discipline. He also noted that inflation outpaced peso depreciation by 14 percentage points, creating peso-denominated cost pressures.
Adjusted EBITDA increased in every country of operation, with double-digit growth across the portfolio except Italy. Argentina’s adjusted EBITDA rose 28%, with margin expanding 4.1 percentage points. Armenia’s adjusted EBITDA rose 34%, driven by revenue growth, though its margin contracted because of a higher contribution from the lower-margin fuel business.
Brazil adjusted EBITDA increased 44%, with margin expanding 3.7 percentage points. Italy adjusted EBITDA rose 4%, or 10% excluding construction services at Toscana Aeroporti e Costruzioni. Uruguay adjusted EBITDA increased 16%, while margin was relatively stable as passenger trends were partly offset by higher salaries, maintenance expenses and the appreciation of the Uruguayan peso. Ecuador adjusted EBITDA rose 16%, with margin expanding 1.8 percentage points.
Balance Sheet Strengthens; Dividend Policy Under Review
The company ended the quarter with total liquidity of $772 million, up from $750 million at the end of 2025. Total debt stood at $1.1 billion, while net debt declined to $419 million from $502 million at year-end. Arruda said the net leverage ratio was 0.5 times.
Eurnekian said the stronger balance sheet provides flexibility to invest in operations, pursue disciplined growth opportunities and consider a dividend policy. In response to a question from Jefferies analyst Alejandro Demichelis, Arruda said the company is discussing a dividend policy internally with its board and executive committee and expects to update the market “in the near term” on how and when it could be implemented.
Arruda also said the company has not seen a portfolio-wide demand impact from higher fuel prices so far. He noted that Armenia saw a decline in traffic with the Middle East, but that growth in other markets more than offset it. He added that many airlines are hedged for several months, if not a full year, against oil prices.
Armenia Extension and New Opportunities in Focus
Eurnekian highlighted the company’s 35-year concession extension in Armenia to 2067 and a new $425 million investment program. He said the plan will expand infrastructure and support growth in passenger traffic and commercial activity while further developing Zvartnots Airport as a regional hub.
The company also said the Galapagos extension and economic rebalancing in Ecuador strengthened its position in that country. Arruda said discussions in Argentina are largely concluded at the technical-team level, with key aspects “basically” agreed, though the process requires a national decree and involvement from multiple government bodies.
In Italy, Arruda said the company continues to make gradual progress and that local management believes authorizations could be in place by year-end, allowing construction to begin.
Regarding capital allocation, Arruda said the company continues to advance the recently awarded concessions for Luanda Airport in Angola and Baghdad Airport in Iraq. He said the required equity contributions for those projects are “marginal.” The company is also evaluating a handful of opportunities it considers executable over the next six to 12 months, none of which is expected to require a large equity contribution.
Eurnekian said demand trends remain strong, particularly in international markets, while the company continues to monitor geopolitical developments in the Middle East and possible implications for traffic and airline capacity.
About Corporacion America Airports (NYSE:CAAP)
Corporación América Airports SA operates as a global airport infrastructure and services company, specializing in the development, acquisition and management of airport concessions. Headquartered in Buenos Aires, Argentina, the firm oversees long-term agreements that cover the planning, design, financing and ongoing operation of airport facilities. Its integrated approach aims to enhance operational efficiency and passenger experience through modernized terminals and streamlined processes.
The company’s core activities encompass passenger handling, cargo operations and ancillary services such as retail concessions, food and beverage outlets, ground handling, fueling and airport parking.
