Business Overview / Sources of Revenue

Corporación América Airports (CAAP) is a leading private airport operator, managing 53 airports across six countries in Latin America and Europe, including Argentina, Brazil, Uruguay, Ecuador, Armenia, and Italy[2][3]. The company earns revenue primarily through two channels: aeronautical services, which encompass fees charged to departing passengers, landing and parking fees for aircraft, and other related services, and commercial services, such as retail and duty-free shops, food and beverage outlets, parking, advertising, and warehouse usage[1]. The majority of CAAP’s revenue is driven by passenger traffic, with aeronautical fees making up the largest share, complemented by income from commercial activities within airport premises[1].

Revenue Growth Potential and Recurrence

Corporacion America Airports (CAAP) generates a significant portion of its revenue from recurring sources, primarily through airport concessions, passenger fees, and related commercial activities, which provide relatively stable and predictable income streams[1][5]. The company's recent financials show robust momentum, with consolidated revenue (excluding IFRIC12) increasing 29% year-over-year in 2024[1]. Over the past three years, CAAP achieved a compound revenue growth rate of 37.4%[4]. Looking forward, continued global air traffic recovery and expansion into new airport operations could underpin ongoing growth. While specific consensus estimates for the next five years are not provided, recent growth trends—such as a 31.66% increase in 2024—suggest that CAAP may sustain mid-to-high single-digit or low double-digit annual revenue growth over the medium term, assuming favorable market conditions and no major macroeconomic disruptions[2][4].

Economic Moat Factors

Corporacion America Airports (CAAP) does possess certain economic moat characteristics, primarily due to its ownership and operation of multiple airports, which are often local monopolies because of geographic exclusivity and regulatory barriers[4]. This grants CAAP unique assets difficult for competitors to replicate. However, the moat is not particularly wide or durable due to heavy reliance on concession agreements that are subject to renewal, regulatory risks, and government intervention, especially in Argentina[4][5]. There are limited switching costs for airlines but high ones for competitors attempting to enter these locations. Network effects are minimal in airport operations, and brand power is not a significant competitive factor. CAAP’s economies of scale are moderate, given its portfolio size, but financial and macroeconomic risks—like currency volatility and high debt—diminish its overall moat strength[4][5]. According to GuruFocus, CAAP’s moat score is 4, indicating a moderate economic moat[1].

Leadership

Corporación América Airports is led by CEO Martin Francisco Antranik Eurnekian, who has served in this position for approximately 7.4 years[3][4]. He is not the founder but has extensive experience with the company, having worked there for about 20 years in various positions across different countries[1]. Eurnekian is an Information Technology Engineer from the University of Belgrano with over 18 years of international experience managing diverse industries, particularly airports in multiple countries[5]. The management team has an average tenure of 5 years[4]. Information about Eurnekian's ownership stake is not available in the provided sources[4].

Financial Health

Corporación América Airports (CAAP) shows solid financial health with $448.6 million in cash as of March 31, 2025, and a net debt to LTM Adjusted EBITDA ratio of 1.1x[1]. The company has a debt-to-equity ratio of 72.1%, with total debt of $1.1 billion against $1.6 billion in shareholder equity[5]. Their interest coverage ratio stands at 1.6x[5]. CAAP demonstrated strong top-line growth and Adjusted EBITDA expansion in Q1 2025, supported by robust passenger traffic growth across markets[1]. The search results don't provide specific information about free cash flow margins or share repurchase/dilution activities.

Last updated Jun 3, 2025