12 Best Airport Stocks to Invest in Now

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

Number of Hedge Fund Holders: 2

Airport concessions are purchased, developed, and administered by Corporación América Airports S.A. (NYSE:CAAP). Argentina, Italy, Brazil, Uruguay, Ecuador, and Armenia are the geographical divisions of its operating segments. The Argentina segment accounts for the majority of the company’s revenue. Aeronautical, non-aeronautical, commercial, construction service, and other revenue are the several categories into which the company’s revenue is divided.

In December 2024, Corporación América Airports S.A. (NYSE:CAAP) reported a 3.2% year-over-year growth in passenger traffic, including an 11.4% increase in international traffic. The overall passenger traffic increased by 6.6% when the consequences of the Natal Airport’s ceased operations were taken out of the equation. Strong domestic traffic recovery and notable international traffic increase propelled Argentina’s monthly passenger traffic to an all-time high. Performance varied by country, with Argentina and Italy exhibiting strong growth and Brazil declining as a result of fewer operations at Natal. A favorable trend in operational metrics was highlighted by a 9.3% year-over-year increase in cargo volume and a 2.5% increase in aircraft movements.

Corporación América Airports S.A. (NYSE:CAAP)’s significant regional diversification has helped to minimize Argentina’s macroeconomic issues, with solid performances in Uruguay, Brazil, and Italy contributing to EBITDA growth. Lower passenger volumes and poorer duty-free sales caused a fall in revenue; yet, the company’s strong cash flow generation and sound balance sheet offer a strong basis for future growth. Management’s dedication to long-term growth is proven by strategic investments such as the Florence Airport master plan, the Capex program in Armenia, and the commercial upgrades at Carrasco and Ezeiza Airports. Additionally, revenue will be greatly increased by Argentina’s recent 124% rise in domestic passenger use fees, which went into effect on November 1.

The company’s long-term perspective and position are further strengthened by hints of macroeconomic stabilization, robust October international passenger numbers, and cautious capital allocation.

Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 29,300 shares worth $511,578 as of Q3.