As I stated in a previous article, commercial airport operators are typically monopolistic businesses. Thanks to widespread recognition of their great economics, airport operators can only be bought at an adequate margin of safety in economic malaise, commonly caused by cycles of capital spending for expanding, improving, and maintaining airports or by exogenous shocks. The ongoing coronavirus pandemic has decimated air traffic, leading to severe sell-off of airport operators and providing discerning investors with an entry opportunity.
In this article, let's examine Grupo Aeroportuario del Pacífico, S.A.B. de C.V., aka GAP (PAC