10 Worst Airport Stocks to Buy

7. Corporación América Airports S.A. (NYSE:CAAP)

Number of Hedge Fund Holders: 5

Average Analyst Price Target Upside: 24.36%

Corporación América Airports S.A. (NYSE:CAAP) is a major global private airport operator, managing 52 airports across Latin America and Europe, including countries like Argentina, Brazil, Uruguay, Ecuador, Armenia, and Italy.

In 2023, the company’s airports served 81.1 million passengers, just 3.6% lower than pre-pandemic levels in 2019. Of these passengers, 35% were international, 56% were domestic, and 9% were in transit. It ranks at 7 on our list of worst airport stocks to buy.

The company’s primary revenue driver is passenger traffic and earns aeronautical revenue through fees charged to departing passengers and airlines for landing, parking, and using its facilities. Its commercial revenue is generated from services like retail, duty-free shops, parking, food and beverages, and advertising.

Corporación América Airports (NYSE:CAAP) reported its second quarter results on August 21. According to its unaudited financial results for Q2 2024, its consolidated revenues were $366.1 million, up slightly by 0.2% year-over-year.

Aeronautical revenues increased 3.2%, which offset a 2.9% decline in commercial revenues. Passenger traffic fell by 7.8% to 18.2 million, while cargo volume grew by 4.7%. Lastly, the company maintained a strong cash position of $439.4 million.

According to the company’s CEO, it is negotiating a $400 million CapEx plan with the Armenian government and is awaiting approval for Florence Airport’s new master plan. The company is also exploring growth opportunities, driven by recent open skies agreements in Argentina that may open up new routes and destinations. The company’s solid balance sheet positions it to pursue long-term global growth initiatives.