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Corporacion America Airports Announces 1Q21 Results

1Q21 Passenger traffic improves sequentially but remains significantly impacted by Covid-19

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 period ended March 31, 2021. 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”), as detailed on Section “Hyperinflation Accounting in Argentina” on page 23.

First Quarter 2021 Highlights

  • Consolidated Revenues of $138.2 million, a decline of 54.4% YoY. Excluding the impact of IFRS rule IAS 29, revenues declined 54.2%, to $140.3 million, mainly reflecting decreases of $113.6 million in Aeronautical revenues, $34.8 million in Commercial revenues driven by the impact of the COVID-19 pandemic, as well as a $13.5 million decline in construction service revenue in Argentina, and to a lesser extent, Ecuador and Uruguay, reflecting lower capex in the period.
  • Key operating metrics declined YoY impacted by the pandemic, but improved sequentially:
    • Passenger traffic was 6.5 million, a 61.8% YoY decline, but increased 27.9% from 5.1 million in 4Q20
    • Cargo volume decreased 18.9% YoY to 67.9 thousand tons, compared to a 5.9% sequential decline from 72.1 thousand tons in 4Q20
    • Aircraft movements reached 98.4 thousand, a 44.9% YoY decline, but improved 14.7% from 85.8 thousand in 4Q20
  • Operating Loss was $26.6 million, compared to a $31.3 million Operating Gain in 1Q20, mainly reflecting the impact of the pandemic on revenues, partially offset by lower cost of services and SG&A.
  • Adjusted EBITDA on an “As Reported” basis was $6.3 million, a 92.3% decline from $80.9 million in 1Q20. Excluding one-time charges in Argentina in relation with professional fees for the settlement of claims in 1Q21, Adjusted EBITDA would have been $14.3 million on an “As reported” basis, or $14.2 million when excluding IAS29. When also excluding an impairment loss in 1Q20 in Brazil, Adjusted EBITDA would have declined 83.5% in the quarter from $86.1 million in 1Q20, while Adjusted EBITDA margin Ex-IFRIC12 declined to 12.4% from 33.0% in 1Q20.
  • On January 13, 2021, CAAP announced that under Resolution No. 4/2021 of the Official Gazette, the Organismo Regulador del Sistema Nacional de Aeropuertos (“ORSNA”) established an increase in the international passenger fee for travelers departing from AA2000 airports of US$6 to US$57, in line with the provisions of the Technical Conditions for the Extension which are part of the 10-year concession extension approved on December 17, 2020.
  • In February 2021, CAAP received a proposal from Aerolíneas Argentinas S.A. offering to pay outstanding amounts owed to its subsidiary AA2000 until March 31, 2020 (AR$120.6 million and US$36.5 million).
  • In February 2021, AA2000 renegotiated the principal payment under the syndicated bank loan maturing in February 2021 for a total amount of $13.3 million, and deferred said amount to be repaid under a new schedule between March 2022 and February 2023.

Subsequent Events

  • In April 2021, Puerta del Sur (“PDS”), CAAP’s Uruguayan subsidiary, obtained a $10.0 million facility with a local commercial bank.
  • In May 2021, AA2000 renegotiated a total of $40.0 million in principal payments under the syndicated bank loan, maturing in May, August and November 2021 for an amount of $13.3 million each, and deferred said amount to be repaid in May, August and November 2022.

CEO Message

Commenting on the results for the quarter Mr. Martín Eurnekian, CEO of Corporación América Airports, noted, “We are very proud of the way the Company has navigated the unprecedented crisis over the past year, showing an ability to be both prudent and agile. As we moved into a second wave of Covid-19 in Latin America during the first quarter, which resulted in travel restrictions and lower demand that negatively impacted passenger traffic in some of our countries of operations, we were better positioned to mitigate the effects of the crisis. Our sustained focus on cost controls and cash preservation allowed us to achieve positive Comparable Adjusted EBITDA of $14 million in 1Q21, excluding one-time fees, despite passenger traffic levels of nearly a third of pre-pandemic levels in the same quarter of 2019.”

“Since the onset of the pandemic, we have made significant progress in the successful execution of our Covid-19 Mitigation Strategic Plan and remain dedicated to continue the consistent execution of this plan. One of our key goals this year is to restore the value of our business by finalizing the re-equilibrium processes, following the successful 10-year concession extension in Argentina and full economic re-equilibrium for 2020 in Brazil. We also remain focused on preserving liquidity and strengthening our balance sheet, while keeping a lean structure across our operations and maintaining tight control on costs as the level of activity progressively increases.”

“In terms of passenger traffic dynamics, we are observing a pick-up in traffic in Brazil, Armenia and Ecuador, primarily driven by a faster pace in the roll out of the vaccination program and better sanitary conditions. Italy is also expected to benefit from the rollout of the vaccination campaign, warmer weather and lower restrictions during the European summer season. We also expect overall better trends as vaccination campaigns begin to pick-up in Argentina and travel restrictions are progressively lifted later in the year in both Uruguay and Argentina. Longer-term, we are convinced the desire to travel will resume and strong pent-up demand will contribute to drive sustained traffic growth. In closing, we are confident in the potential of our business and we continue working towards building a leaner and stronger company that will allow us to deliver profitable growth once demand returns.”

Operating & Financial Highlights

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


1Q21 as



1Q20 as


% Var as



IAS 29



1Q21 ex

IAS 29


1Q20 ex

IAS 29


% Var ex

IAS 29


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


































Aeronautical Revenues

















Non-Aeronautical Revenues

















Revenue excluding construction service

















Operating Income / (Loss)

















Operating Margin





-2,952 bps










-3,159 bps


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


































Adjusted EBITDA

















Adjusted EBITDA Margin





-2,217 bps










-2,243 bps


Adjusted EBITDA Margin excluding Construction Service





-2,605 bps










-2,642 bps


Net Debt to LTM Adjusted EBITDA
















Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (3)
















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


Note that preliminary passenger traffic figures for Ezeiza Airport, in Argentina, for 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.


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.


LTM Adjusted EBITDA excluding impairments of intangible assets

Update on Action Plan to Mitigate Impact of COVID-19

Governmental Flight Restrictions

The 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. Since March 2020, governments around the world implemented measures to contain the spread, including the closing of borders and prohibition of travel, domestic lockdowns and quarantine measures. The overall situation remains volatile, as governments worldwide adjust travel bans or implement requirements to enter or leave their countries, including quarantines or negative Covid-19 PCR tests, based on the evolution of the sanitary situation.

  • Currently, in Argentina borders remain closed to foreigners until May 21, 2021. Given the spike in Covid cases during March, starting March 27, 2021, flights from Brazil, Chile and Mexico were banned from entering the country and the government implemented a basket for international arriving passengers which is limited to 2,000 a day. International travel is operated under a special flights regime, and passengers arriving in Argentina are required to present a negative PCR test taken within 72 hours prior to the flight, take an additional test at Ezeiza airport on arrival, and self-isolate for seven days. Bans on domestic travel were lifted by the end of October.
  • In Italy, certain restrictions apply for travelers coming from, or that visited or transited certain countries until July 30, 2021. International passengers are required to present a negative PCR test upon arrival. In addition, travelers coming from outside the European Union are required to self-quarantine for 10-days upon arrival.
  • In Brazil, no restrictions apply for domestic travel. International passengers are required to present a negative PCR test upon arrival and there are no restrictions on entry, with the exception of passenger coming from or that transited through UK, South Africa and India in 14 days prior to entering Brazil.
  • In Uruguay, borders remain closed to non-resident foreigners, with certain exemptions, and requirements upon entry, including a negative PCR test upon arrival and a self-isolation period.
  • In Armenia, restrictions on air travel were lifted mid-September 2020, while more recently, Russia opened borders to foreigners, although some requirements apply upon entry including a negative PCR test upon arrival.
  • In Ecuador, there are no restrictions to domestic or international travel. International passengers are required to present a negative PCR test upon arrival.

Impact of COVID-19 on CAAP’s Passenger Traffic and Cargo activity

The Company’s operations have been severely impacted by the prolonged flight restrictions in most countries of operations as well as flight bans in many other countries worldwide. Total passenger traffic in January 2021 declined 64.4% year-on-year, showing a slight decline in February to a drop of 69.1% YoY and March, declined 71.3% when compared to March 2019. Passenger traffic, however, increased 27.9% when compared to 4Q20. During 1Q21, commercial flights were operated across all CAAP’s countries, although still restricted by government bans to locals and foreigners, and certain requirements applied. Cargo activity was also impacted, with cargo volume declining 33.7% year-on-year.

Implementation of Mitigation Initiatives Focused on Preserving Financial Position

Since the onset of the pandemic CAAP has consistently made progress on the implementation of its action plan to mitigate the impact of the crisis as follows:

Cost controls and cash preservation measures: The Company achieved a 43% YoY reduction in cash operating costs and expenses in the quarter, compared with YoY reductions of 46%, 48% and 51% in 4Q20, 3Q20 and 2Q20, respectively. Note this excludes concession fees and construction costs. While CAAP expects to benefit from these reductions in the coming quarters, it also expects to see some increases in payroll and maintenance and other operating costs as traffic recovers.

Financial position and liquidity: As cash preservation is a critical focus, since the beginning of the pandemic the Company has renegotiated a significant portion of its debt maturing in 2020 in key markets and renegotiated debt covenants, and secured additional debt financing.

In April 2021, Puerta del Sur, CAAP’s Uruguayan subsidiary, obtained a $10.0 million facility with a local commercial bank, and in May 2021, the Company’s argentine subsidiary, AA2000, renegotiated a total of $40.0 million in principal payments under the syndicated bank loan, maturing in May, August and November 2021 for an amount of $13.3 million each, and deferred said amount to be repaid in May, August and November 2022.

CAAP also suspended dividends to third parties in the concessions in Italy and Ecuador for 2019. Moreover, CAAP currently does not pay corporate dividends and the Company does not have in place a share repurchase program either.

Re-equilibrium of the concession agreements:

  • In Argentina, CAAP completed a 10-year extension of the AA2000 concession agreement in December 2020, and more recently obtained a tariff increase of US$ 6.0, raising the tariff to US$ 57.0 dollars in the international passenger fee, applied starting March 15, 2021.
  • The concession contracts in Brazil and Ecuador have force majeure re-equilibrium clauses. In Brazil, in December 2020 the Company obtained an economic compensation in connection with the Covid-19 impact during 2020 for the Brasilia and Natal concessions, of US$ 36.6 million in total. In addition, we expect to soon file a request for a long-term compensation for the Brasilia Airport concession. In addition, in Ecuador, negotiations are advanced to obtain compensation under the Guayaquil concession. The amounts and mechanisms for compensation will be negotiated with authorities.
  • In Uruguay and Armenia, CAAP is moving forward in conversations with the authorities to review the concession agreements, to compensate for the impact of the pandemic.
  • In Italy, a total of Eur. 10 million were approved by the European Commission in March 2021, to compensate for the COVID-19 impact in 2020, expected to be collected during May 2021. In addition, a 2-year concession extension was achieved in 2020. Moreover, the Italian Budget Law, that became effective on January 1, 2021, contains provisions to allocate a Eur. 500 million fund in support of the airport sector in the country. CAAP’s subsidiary, Toscana Aeroporti, concessions in the country expects to benefit from these provisions, as they become available during this year.

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 20, 2021


Mr. Martín Eurnekian, Chief Executive Officer


Mr. Jorge Arruda, 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 27, 2021 by dialing:


1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10156485.

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 assets under the concession 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. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: the COVID-19 impact, delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU, AMD or the PEN against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the ‘Cautionary Statement’ and the ‘Risk Factor’ sections of our annual report on Form 20-F for the year ended December 31, 2019 and any of CAAP’s other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences.


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