ASR - Grupo Aeroportuario Del Centro Norte Has Performed Well On Recovery Prospects

• Despite renewed pressures on air travel from the COVID-19 resurgence, OMA has continued to trade up on long-term recovery prospects.
• Management's call for traffic normalization in late '22/early '23 seems reasonable and is consistent with my prior expectations. In the meantime, good execution on cost-cutting helps preserve cash.
• The company's new MDP is more favorable than expected, driving double-digit tariff increases for OMA.
• Growing non-aero revenue needs to remain a priority, but opportunities like the Barbados airport concession are also worth pursuing.
• The "easy money" has been reaped in OMA shares, but I still see a long-term return in the high single digits as air travel normalizes.

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