Corporacion America Airports (NYSE:CAAP) executives highlighted record passenger traffic, double-digit revenue growth, and expanded profitability during the company’s fourth-quarter 2025 earnings call, while also pointing to concession extensions and new concession awards that management said could improve long-term portfolio visibility.
Passenger traffic hit record levels across several markets
Chief Executive Officer Martín Eurnekian said passenger traffic “remained robust” in the fourth quarter, rising just over 9% year-over-year to a record 22.3 million passengers. Management said annual traffic records were set in Argentina, Armenia, Italy, and Uruguay, and that growth was broad-based across the portfolio, including “strong international growth in Argentina.”
Management provided market-level detail and early 2026 trends:
- Argentina: Passenger traffic increased nearly 9% (domestic up 6%, international up 15%). Eurnekian cited route reactivations and frequency increases, with contributions from airlines including LATAM, Air Canada, Emirates, Delta, China Eastern, and ITA Airways. Traffic growth continued into January and February, up 7.9% and 5.8%, respectively.
- Italy: Traffic grew 8%, driven by an 11% increase in international traffic. Domestic traffic declined modestly due to operational disruptions at certain airlines. January and February traffic rose 4% and 7.4%, respectively.
- Brazil: Total traffic rose 12%, with management pointing to an improved airline environment and stronger summer season activity, including additional frequencies to U.S. routes. January and February traffic increased 16% and 8.2%, respectively.
- Uruguay: Traffic increased 5%, with management describing a recovery from a third-quarter disruption tied to a planned runway closure, along with seasonal operations and new routes/frequencies. January and February traffic rose 1% and 2.4%.
- Armenia: Passenger traffic increased nearly 14%. Eurnekian said Wizz Air established a new base at Zvartnots and launched 10 new routes to Europe. January and February traffic increased 10% and 11.6%.
- Ecuador: Traffic returned to growth, up 1%, as results improved versus the prior quarter following completion of runway works earlier in the year. January and February traffic rose 5% and 8.6%.
Revenue growth outpaced traffic; commercial strength continued
Chief Financial Officer Jorge Arruda said total revenues excluding IFRIC 12 increased 17% year-over-year, nearly doubling the pace of passenger growth. He said performance reflected double-digit growth in both aeronautical and commercial lines, with all operating countries except Ecuador delivering double-digit revenue growth.
Revenue per passenger rose nearly 8% to $20.8, up from $19.4 a year earlier.
Aeronautical revenues increased 17%, led by Argentina, where aeronautical revenue rose 21% and management pointed to a 15% increase in international traffic volumes. Arruda said Brazil, Armenia, and Italy also delivered double-digit aeronautical growth in line with passenger trends.
Commercial revenues increased 16%, which Arruda said exceeded traffic growth and was supported by higher cargo and fuel revenues and gains across VIP lounges, parking, and duty-free. Management characterized commercial momentum as broad-based, again noting Ecuador as the exception to double-digit growth.
Adjusted EBITDA rose sharply, aided by arbitration award
Arruda said total costs and expenses excluding IFRIC 12 increased nearly 11%, below revenue growth, resulting in “positive operating leverage.” Cost of services rose 11%, driven by higher concession fees in line with revenue growth, higher fuel costs in Armenia associated with fueling expansion, and higher depreciation and amortization. SG&A increased 6%, reflecting higher payroll and non-payroll expenses, particularly in Argentina.
Adjusted EBITDA excluding IFRIC 12 increased nearly 40% to $211 million. Arruda said this included a $32.5 million positive impact tied to an arbitration award payment received from the government of Peru.
By geography, management highlighted several drivers:
- Argentina: Adjusted EBITDA rose 43%, with margin expansion of 7.5 percentage points, supported by passenger trends, commercial momentum, and cost controls.
- Armenia: Adjusted EBITDA rose 15% on record passenger levels; margin contraction reflected higher operating expenses and a larger contribution from the structurally lower-margin fueling business.
- Brasília (Brazil): Year-over-year comparisons were affected by a BRL 110 million COVID-related economic reequilibrium recorded in fourth-quarter 2024. Excluding that item, adjusted EBITDA increased 34% with margin expansion of 6.4 percentage points.
- Italy: Adjusted EBITDA decreased 11%, or increased 4% when excluding construction services at Toscana Aeroporti Costruzioni.
- Uruguay: Adjusted EBITDA dipped 2% due to higher salaries and maintenance expenses, and currency appreciation that pressured margins.
- Ecuador: Adjusted EBITDA fell 12%, mainly due to higher maintenance expenses concentrated in the quarter.
Arruda added that excluding both the prior-year Brazil reequilibrium item and the Peru arbitration award recognized in fourth-quarter 2025, adjusted EBITDA increased 33.3% year-over-year to $178 million, with margin expansion of 4.6 percentage points to 38.3%.
Liquidity rose and leverage declined
Arruda said the company ended the quarter with total liquidity of $750 million, up 36% from $526 million at year-end 2024. He noted that each operating subsidiary produced positive full-year operating cash flow. Cash used in financing activities primarily reflected debt repayments in Argentina and dividends paid to non-controlling interests in CAAP subsidiaries.
Total debt stood at $1.1 billion at year-end, while net debt declined to $502 million from $780 million in December 2024. Arruda said net leverage improved to 0.7x.
Concession extensions, expansion pipeline, and 2026 outlook
Eurnekian said the company made “meaningful strategic progress” during the year. In Armenia, management said it secured a 35-year concession extension through 2067, which includes a $425 million investment program and a significant infrastructure expansion. The company also obtained a six-year extension of its Galapagos concession in Ecuador.
On inorganic growth, Eurnekian said CAAP has received concession awards and has been selected as preferred bidder for airport concessions in Baghdad, Iraq, and Luanda, Angola, though he emphasized that both remain subject to execution of definitive concession agreements. Arruda later said the process in Iraq could face delays due to the geopolitical situation and that discussions with the Angolan government are ongoing. He added the company is evaluating opportunities in the Middle East, Central Asia, Africa, and the Americas, and said management views growing the portfolio as “the best use” of liquidity. In response to a question on funding, Arruda said targeted opportunities would be funded “primarily from cash at hand,” based on their size.
Management also addressed open items in existing markets. Arruda said discussions regarding Argentina’s economic reequilibrium process are ongoing, but he declined to provide timing due to political and bureaucratic dynamics. On Italy, he said the company has environmental approval but still needs to complete additional processes before construction can begin, and he did not provide a timetable.
Regarding 2026 trends, Arruda said traffic increased approximately 7.8% in the first two months of the year, with international up 14.5% and domestic up 1.5%, and said the company remains constructive on demand. He said EBITDA margins were “stable for the time being.” He also said approximately 10% to 15% of Armenia’s traffic has been affected by the war, with recent trends described as “flat” since the conflict began.
Eurnekian said the company expects continued positive momentum in passenger traffic across key markets—particularly international traffic in Argentina—and will continue to prioritize commercial optimization and revenue per passenger growth. He added that management is monitoring the evolving geopolitical situation in the Middle East for potential implications to international travel.
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.
