Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) Q3 2023 Earnings Call Transcript

What we know is that they have not received as of today the license to start operations even though they were saying that they will be initiating flights December 1 this year. So that maybe it will take more time.

Alberto Valerio: Okay. Thank you.

Adolfo Castro: You’re welcome.

Operator: Thank you. Our next question comes from the line of Anton Mortenkotter with GBM. Please go ahead.

Anton Mortenkotter: Hi, Adolfo. Thank you for taking my question. Without getting much into details, I understand you’re still evaluating the effects that the regulatory change will have. But thinking on a more strategic way and knowing the most relevant changes of these amendments, what would you say are the main ways that these modifications could affect your way of looking at the path and decisions taken by ASUR going forward?

Adolfo Castro: Well, again, in that sense, Anton, we are transforming or updating or adjusting our documents to these new regulatory details that we have received last Thursday. So, it’s too early to tell. Once they apply this new regulatory regime, we will be able to say what the effects were in the case of our MDP.

Anton Mortenkotter: Okay, thank you. And also, just a quick follow-up. I didn’t get — I’m not sure if I got it right, but given that there was — the adjustment was so quickly and you were already at the end of the MDP, is it possible for you to delay the final outcome of the MDP, or it has to be ready for the beginning of the next year?

Adolfo Castro: I do believe that it has to be ready by the end of the year unless they say that they are not ready. So, we will — I do believe that we will deliver our documents, update it with these regulatory details in the coming days, and we will take it from there.

Anton Mortenkotter: Perfect. Thank you.

Adolfo Castro: You’re welcome.

Operator: Thank you. Our next question comes from the line of Stephen Trent with Citi. Please go ahead.

Stephen Trent: Good morning, Adolfo, and thanks very much for taking my question. The first is actually a follow-up from Alberto Valerio on AMLO’s new airline. Are you hearing anything at all pushback-wise with respect to the government arguably having control of some airports and an airline in the same market?

Adolfo Castro: Well, as far as I understand, they have adjusted the law because in the past that was not possible. There was no way that someone will have airports and airlines in both centers of more than 5% from one to the other. So, I do believe that they adjusted the law in order that they can have this.

Stephen Trent: Wow, okay. I appreciate that, Adolfo. Just one other very quick one for me. I know that AMLO also has this Tulum Airport that seems to be in the works. Do you have any high-level view with respect to whether the risk to charter traffic could impact your joint maximum tariff?

Adolfo Castro: Well, in the case of Tulum Airport, and that’s a good question, Aeroméxico and Viva started to sell tickets from December 1 from that airport. So, it’s something that you can see in their webpage, on their reservations page. They will start December 1. In the case of charter flights, I do believe that charter flights that have final destination, let’s say, 10 kilometers south to Playa del Carmen, they will — they should be using Tulum as airport because their final destination is closer to that airport. That, of course, will have an impact on Cancun and that has been considered in our MDP and that, technically speaking, made a [sharp increase] (ph) of the tariff of Cancun Airport.

Stephen Trent: Okay. Perfect. Appreciate the color, Adolfo, and thanks for the time.

Adolfo Castro: Thank you.

Operator: Thank you. Our next question comes from the line of Pablo Ricalde with Santander. Please go ahead.