Why Corporación América Airports Is Poised for Liftoff in 2025

The aviation sector’s post-pandemic rebound is no longer a question—it’s a global reality. Nowhere is this clearer than at Corporación América Airports S.A. (CAAP), which reported a 14% year-on-year surge in April 2025 passenger traffic, driven by explosive growth in key Latin American hubs. For investors seeking exposure to resilient infrastructure and regional dominance, CAAP presents a compelling opportunity to capitalize on a recovery that’s only just hitting its stride.

The Traffic Surge: A Post-Pandemic Comeback Fueled by Latin America’s Heartbeat

April’s results underscore a sustained recovery in international travel demand, with CAAP’s core markets delivering eye-catching growth:
- Argentina, the company’s largest market, saw passenger traffic jump 16.4% YoY, with international routes soaring 21.1%. New routes from JetSMART and GOL, alongside fleet upgrades, are unlocking latent demand.
- Brazil grew 16.8% YoY, despite aircraft shortages, as airlines like Azul and SKY expand connectivity to key destinations.
- Uruguay surged 17.1% YoY, fueled by Easter demand and Azul’s new Montevideo-Campinas route.

Even Italy, a key European gateway, saw traffic rise 11.2% YoY, with Ryanair driving frequency increases. This regional diversification is a key strength: while Ecuador lagged (-1.8% YoY) due to security concerns, CAAP’s exposure to higher-growth markets shields it from isolated headwinds.

Operational Resilience: Why CAAP’s Infrastructure Dominance Matters

CAAP’s portfolio of 52 airports across six countries acts as a moat against competitors. Its operational leverage shines in two areas:
1. Network Expansion: Airlines are betting big on CAAP’s hubs. JetSMART now operates 22 routes from Buenos Aires’ Aeroparque, while Wizz Air’s Armenia base adds eight new European routes. These partnerships mean more flights, more passengers, and higher aeronautical revenue.
2. Cost Efficiency: Even as cargo volumes dipped (-2.3% YoY), aircraft movements rose 11.3%, reflecting robust utilization of its infrastructure. This bodes well for margins as traffic continues to rebound.

The company’s ability to monetize growth without overextending capital is critical. With 79 million passengers in 2024 (up 2.7% from 2023 lows), CAAP is proving its model can scale through volatility.

Valuation: A Rare Gem in a High-Multiple World

While CAAP’s stock price has risen to $21.51, its valuation multiples scream undervaluation compared to peers:
- EV/EBITDA of 4.19 (vs. an 8.34 industry median) places it in the top 19% of the Transportation sector for affordability.
- The trailing P/E of 13.79 is elevated, but this reflects transitory earnings volatility. With 18% YoY EPS growth and a low debt load, CAAP is primed to outperform as earnings stabilize.

Critics may cite a $7.57 fair value estimate as reason to avoid CAAP, but this overlooks two critical factors:
1. Long-Term Growth Trajectory: Analysts project a 3% annual earnings decline through 2027, but this ignores pent-up demand in Latin America. Post-pandemic travel isn’t a one-year blip—it’s a structural shift.
2. Infrastructure Premium: Airports are cash flow machines in growing regions. CAAP’s hubs sit at the intersection of rising middle classes and underpenetrated travel markets—a recipe for decades of growth.

Risks, but Not Dealbreakers

• Ecuador’s Struggles: Security issues and weak U.S. routes are a drag, but Ecuador represents just 5% of CAAP’s traffic.
• Brazil’s Aircraft Constraints: Shortages could cap growth temporarily, but new Boeing 737-700s at Andes Líneas Aéreas suggest solutions are in motion.

Conclusion: Buy CAAP for the Infrastructure Recovery Play

The numbers are clear: CAAP’s traffic growth is sector-leading, its valuation is undervalued by 50%+ compared to peers, and its portfolio is geared to capture Latin America’s travel boom. While the stock may look pricey on some metrics, its EV/EBITDA multiple and operational resilience make it a rare buy in today’s market.

Investors seeking defensive, high-potential infrastructure exposure should act now. CAAP’s April results aren’t just a snapshot—they’re a signal that this airport giant is ready to soar.

The time to board this flight is now.