Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC) Q4 2023 Earnings Call Transcript

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Raul Revuelta : Yeah. Thank you, Alejandro. I mean for sure, we are, as you know, some of the DNA of GAP has been really disciplined on the management of our cost. We are working to continue given the best possible services to our passengers and taking or bringing to the company additional technology that will give us the opportunity to bring additional efficiencies to the company and to the operations. So one of the big or the key points that we are trying to deploy on this year is that we’ll not hire additional head count with the exception of the new business lines directly operated by us as could be hotel. That will be, for sure, a first effort in some way to freeze the growing on head count for the company. And for sure, as soon as the passengers after all these Pratt & Whitney engine’s problem will continue to grow in the future.

Our idea will be to try to freefall that head count and in some way, bring additional efficiencies to the company and for sure to the margins of the company. But the first idea and the way that we are working right now is to try to bring additional technology to the company to try to avoid any additional increase on the head count for the coming years.

Alejandra Soto: And the second question from Alex [indiscernible] also. If you can share your expectation for the tariff and the CapEx for this renegotiation of the MDP.

Raul Revuelta : Well, I mean, we will continue on the same line that we have talked in the past, we think that the negotiation would be zero to 5%. For sure, there are a lot of things moving in the middle all the pressure on cost of salaries in some way should be necessary to reflect the [indiscernible] of the master plan, but also we really need to have a fully understand what will happen tariff of the passengers, how — in some way, the full recovery of the market from the P&W engines problem. So I would say that we keep our original target of zero to 5% in terms of the increase of the maximum tariff for the company.

Alejandra Soto: Thank you, Raul. This is the only question that we have in the webcast.

Operator: Very well, we’ll return to a follow-up question from Juan Ponce of Bradesco BBI.

Juan Ponce: Hi. Thank you for the follow-up question. Just on the 6% discount in nine airports. Just wanted to confirm how long will these discounts be in place?

Raul Revuelta : For the — all the 12 months of this year, Juan.

Juan Ponce: Gracias.

Operator: And there are no further questions at this time.

Raul Revuelta: Thank you very much for your attention. Before I conclude, I want to mention that the GAP 2024 event is coming up and will be held at the Guadalajara Airport of April 10, 2024. We hope you can join us for a morning of management presentation. And I guided tool for all our neuro innovations and expansions taking place in the airport. Please contact our Investor Relations team for more details. Thank you. Have a wonderful day.

Operator: This does conclude GAP’s fourth quarter 2023 conference call. You may now disconnect. And everyone, have a great day.

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