April 5, 2024
In 2023, Jamaica’s major airports generated significant revenue for Grupo Aeroportuario del Pacífico, S.A.B. de C.V (Pacific Airport Group), totaling MX$3.56 billion (US$200.28 million), or estimated $30.76 billion due to a record 6.96 million passengers passing through Kingston and Montego Bay facilities. Most revenue came from Sangster International Airport (SIA), with a 13% increase reaching MX$2.81 billion (US$158.23 million). However, MBJ’s operating profit declined by 20% due to increased concession taxes and asset improvement costs. Passenger traffic at SIA grew by 20%, reaching 5.21 million passengers. Norman Manley International Airport (NMIA) also experienced growth, with a 12% increase in passenger traffic, totaling 1.75 million passengers.
The Jamaica Observer highlighted, “SIA added an additional four airline routes in late 2023 which likely has been a positive contributor to passenger traffic rising by eight per cent to 934,500 passengers in the first two months of 2024. However, PAC CEO Raul Revuelta Musalem highlighted in a February 28 earnings call that labour costs at Sangster International are expected to be 40 per cent higher than 2023, double that of the 12 airports it manages in Mexico. This could be further impacted by the recent minimum wage hike set to take effect on June 1”.
The company is in discussions with Jamaican authorities regarding concession adjustments and is planning to invest around MX$1.5 billion (US$84.43 million) in Jamaican airport projects. There are pending approvals for tariff reviews, capital expenditures, and concession terms. Additionally, PAC plans to operate Howard Hamilton International Airport in the Turks and Caicos Islands through a public-private partnership. Despite a decline in profitability for MBJ due to currency appreciation against the USD, PAC’s total revenue increased by 21% to MX$33.22 billion, with net profit rising by 6%.
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