LATIN AMERICAN AIRPORT OPERATORS REPORT 2021-2022 by Latin Press, Inc.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

© Latin Press, Inc, 2021 All rights reserved. No part of this work may be reproduced or incorporated into a computer system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior written permission of the copyright holders. Infringement of such rights may constitute an intellectual property crime. Original title: Report 2021-2022 Airport operators in Latin America 1st edition: 2021 - 2022 Research and writing: Sebastián Aguirre Eastman Special Reports Editor: Andrea Ochoa Editorial Direction: Duván Chaverra Layout and graphics: Jhonnatan Martínez Avalo Cover photographs: Pixabay

Table of Contents Latin American Airport Operators Report, 2021 - 2022 edition:....................................... 5 How is it done? Introduction......................................................................................................................... 7 Chapter 1: Key aspects of the airport industry ................................................................. 8

Recent and future airport investment plans in the region............................................................................................. 12 Impact Projections of Covid-19.......................................................................................................................................... 16

Chapter 2: Experts Perspectives......................................................................................

Operator perspectives........................................................................................................................................................ México................................................................................................................................................................................... Andean Region..................................................................................................................................................................... Southern Cone.....................................................................................................................................................................

20 26 27 30 37

Chapter 3: Operators Directory of airports in Latin America 2021-2022.......................... 42 México................................................................................................................................................................................... Central America and the Caribbean ................................................................................................................................ Andean Region..................................................................................................................................................................... Southern Cone.....................................................................................................................................................................

43 44 45 46

Chapter 4: Overview of Latin America economies (pandemic-post-pandemic)............... 48 Financial Market Volatility Index........................................................................................................................................ Emerging Markets Bond Index 2020................................................................................................................................ The year-on-year rate of change in world trade volume................................................................................................ GDP growth in Latin America............................................................................................................................................ Expenditure growth by component in Latin America.................................................................................................... Future outlook...................................................................................................................................................................... Inflation expectations 2020 and 2021............................................................................................................................... Infographics: Mexico and Central America Exports and Trade Balance 2020........................................................... Mexico, Central America, and the Caribbean.................................................................................................................. Infographics: Exports and Trade Balance South America 2020................................................................................... Andean Region..................................................................................................................................................................... Southern Cone.....................................................................................................................................................................

49 50 52 54 55 55 57 59 60 67 68 72

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Latin American airport operators report, 2021- 2022 edition: How is it done? The publishing and trade show company Latin Press, Inc., presents for the first time a report aimed at the airport operators sector in Latin America, with an analysis of the current situation and prospects for the future in an industry that is key to the region’s connectivity. This is the first report for this industry to be published in the region by a media outlet. It contains valuable information that will allow the actors involved in this industry, directly or indirectly (operators, airlines, contractors, investors, suppliers, among others), to project their activities and envision possible projects that may be of interest to them according to their perspective. It is important to highlight that the methodology implemented for this report took into account the principal airports operators in four Latin American regions: Mexico, Central America, the Andean region, and the Southern Cone as well as the most important entities and authorities

industry which were surveyed. For this, they then sent a questionnaire in which they be asked about their views on the current pandemic situation, especially on the impact of the COVID-19 pandemic on their operations. They were also asked about their current and emerging plans for infrastructure development and asset management in the region. The information gathered provides a broad overview of the current state of the industry and the investment and business opportunities arising from the activities reported by each of the operators consulted, as well as relevant complementary information that can help you make decisions for your company. You can also postulate your company by writing to editorial@latinpressinc.com.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

METODOLOGY

COMPILATION OF INDUSTRY INFORMATION

EXPERT OPINION

DIRECTORY OF OPERATORS

International Airports Council Development Bank of Latin America: CAF Inter-American Development Bank: IDB Economic Commission for Latin America: ECLAC

Question-answer application made to industry experts and operators country by country.

Made through the collection of information provided by each company and the Dun & Bradstreet Data Cloud platform. The number of employees, annual income, year of entry and associated companies, company contact details and number of airports operated are taken into account.

TOP TOP 10 0CIOOC ONTR ATISTAS-INSTALADORES • INFORME 20212019-202 - 202 2 0 ONTRATISTAS-INSTALADORES • INFORME

55 7

Introduction TARGET AUDIENCE The airline industry has consolidated in the last decades as one of the most important sectors for the economy of Latin American. Approximately 590 million passengers per year (figures before the pandemic) move through the region’s airports, representing about 8 % of the total traffic global. In addition, each year it generated a direct economic movement of more than US$ 37 billion and a total impact of US$ 152 billion, with almost 5 million total jobs.

The uncertainty regarding the progress of vaccination and the plans in each of the countries, as well as the restrictions that still persist between some territories, remain an enigma.

Prior to the beginning of the health emergency in 2020, the Inter-American Development Bank anticipated that air transport in the region had an average annual growth projection of 4.7% for the next ten years, with an investment demand of close to USD 146 billion to develop new infrastructure and maintain the existing one until 2040, twice as much as, for example, what the European continent needs to invest during the same period.

In this first edition of the Latin American Airport Operators Industry Panorama Report 2021-2022, published by Latin Press, we present radiography of the sector, showing the opportunities that many suppliers can take advantage of in the near future to reinforce their presence in an industry that, even in crisis, continues to move forward to consolidate itself as key bastion of competitiveness and productivity in our countries.

It is estimated that there are more than 12,500 airfields in Latin America and the Caribbean, of which about 3% provide commercial service. The operation, management, and administration of this infrastructure are one of the most important axes on which this economy revolves, given the importance of the sector in the region’s connectivity and its importance for related industries such as tourism and business.

We will learn from representatives of some of the sector’s and the region’s entities, as well as airport operators and concessionaires, about the economic recovery outlook, current and future projects, and the prospects for development and investment that will enable the Latin American industry to continue on the path of growth, as it had been doing before the crisis.

Despite this outlook, others believe that the current situation is an opportunity to rethink the needs of the industry and offer solutions that meet these new requirements and bring the infrastructure up to current demands.

Profile of public-private partnerships in airports in Latin America and the Caribbean: main figures and trends in the sector. Ancor Suárez Alemán, Gastón Astesiano and Óscar Ponce de León. Inter-American Development Bank. 2020 1

However, projections and expectations were overshadowed by the uncertainty of what some industry players called “the worst catastrophe in history for the sector”, and although the outlook for 2021 is more positive, no doubt that the wound caused by the pandemic is far from being cured.

Analysis of airport and port investments. Latin America and the Caribbean to the Horizon. 2040. Rafael Farromeque Quiroz. Andean Development Corporation. Development Bank of Latin America. 2016. 2

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

CHAPTER 1

KEY ASPECTS OF THE INDUSTRY

Latin America has experienced significant growth in its airport infrastructure over the past three decades. According to the IDB, since 1990, investments of close to USD 38 billion have been made in the construction of some 168 airports through public-private partnerships, which move approximately 75% of the total passenger traffic in the region.

It is estimated that over the next twenty years the growth of the sector and the demands of the region will generate investments for its development and maintenance close to USD 146 billion. This type of contract has become the main modality that governments have found to promote the strengthening of this infrastructure in their territories. Under this modality, explains the IDB, airport projects are self-sustainable and generate aeronautical and commercial income, but they must pay the Government a fixed annual fee plus a variable percentage of the income (with high variability, reaching 77% total of income. Its relation is directly proportional to the required investment and maintenance criteria. In addition to the above, the Latin Ame-

rican regional Airport Council Airports (ACI) has pointed out that factors such as the growth of the average socioeconomic level in Latin American countries, the liberalization of air transport processes, and the modernization of the available infrastructure presented an impact on the tripling of air traffic and the doubling of the number of aircraft in operation between 2000 and 2018. ECLAC, meanwhile, estimates that by 2040 about USD 53,150 million will be invested in airport infrastructure to meet passenger demand, which by that year is expected to exceed 1,727 million annually in the region, and the requirements in the shipment of cargo as a result of the increase in electronic commerce in recent years and especially in pandemic (by 2024, according to Statista, sales by this means will grow by 116% compared to 2019). The entity estimates that passenger demand could increase by more than 50 million passengers annually if investment in airport capacity were made to overcome the restrictions, “which would result in a contribution to GDP by aviation exceeding USD 42 billion and the creation of 900,000 additional jobs”.

Public investment in airport infrastructure by country, 2019.

Country

Year

Type

Sector

Subsector

National curency (millions)

USD (millions)

Percentage of GDP

Argentina

2019

Public

Transportation

Aerial

6.127,20

127,091

0,0285 %

Bolivia

2019

Public

Transportation

Aerial

349,63

50,630

0,1238 %

Brazil

2019

Public

Transportation

Aerial

1.161,41

294,389

0,0160 %

Chile

2019

Public

Transportation

Aerial

69.401,91

98,676

0,0350 %

Colombia

2019

Public

Transportation

Aerial

514.253,16

156,716

0,0484 %

Costa Rica

2019

Public

Transportation

Aerial

4.162,09

7,082

0,0115 %

El Salvador

2019

Public

Transportation

Aerial

76,64

8,758

0,0324 %

Guatemala

2019

Public

Transportation

Aerial

1,59

0,207

0,0030 %

Mexico

2019

Public

Transportation

Aerial

3.256,65

169,169

0,0134 %

Panama

2019

Public

Transportation

Aerial

77,08

77,081

0,1154 %

Peru

2019

Public

Transportation

Aerial

479,081

43,587

0,0631 %

Uruguay

2019

Public

Transportation

Aerial

86,48

2,4530

,0044 %

Source: Infralatam

Referring to the data presented in the table, it is evident that the governments of Bolivia and Panama were the ones that invested the most in infrastructure public airport, which is directly related to the increase in public spending and greater sources of financing by the governments.

This then contributes (in percentage terms) to the growth of national GDP, although in the case of these two countries it is less in comparison with others such El Salvador and Peru, in which this growth may be related to the supply and demand of services.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Airports with more than one million passengers per year (Top ten) Position

Country

Airport

# of passengers (in millions)

Type

Mexico

Mexico Ciudad

44.5

State

Brazil

SP Guarulhos

APP

Colombia

Bogota

PPP

Mexico

Cancun

23.6

PPP

Chile

Santiago

21.4

PPP

Brasil

Sp Congonhas

21.2

State

Peru

Lima

20.6

PPP

Brazil

Brasilia

16.5

PPP

Brazil

Rio-Galeano

15.9

PPP

Argentina

Aeroparque

13.3

PPP

PPP: Public-Private Partnership Source: IDB. Traffic 2017

Major airport concessions in ALC Concession

Concession

Country

# of airports

Year

APP Type

Apt. de SaoPaulo- Guarulhos

GruAirport

Brazil

2012

20 + 5 year concession

Bogota

Opain S.A.

Colombia

2006

20-year concession

Buenos Aires airport and 32 more

Aeropuertos Argentina 2000

Argentina

1997

30 + 10 years concession

Guadalajara airport and 11 more

Grupo Aeroportuario del Pacífico

México

2002

IPO 50 years

Cancun airport and 8 more

ASUR

México

2002

IPO 50 years

Santiago de Chile airport

Nuevo Pudahuel

Chile

2014

Maximum 20 years and linked to total income

Lima Airport

Lima Airport Partners

Perú

2001

35 + 10 year concession

Quito Airport

Quiport

Ecuador

2007

35 + 5 year concession

San Jose and Liberia Airport

Airports Worldwide

Costa Rica

2001

20-year concession

Montevideo Airport

Airports Carrasco

Uruguay

2001

20-year concession

PPP: Public-Private Partnership Source: Analysis of airport investments in Latin America and the Caribbean to horizon 2040. Andean Development Corporation. Development Bank of Latin America.

Airport investments in Latin America and the Caribbean to 2040

Distribution of investment by subsystem (in millions of usd and over the total) Total investment:

53.150

Terminal

3.127

69 %

Runway

8.956

17 %

Platform

4.106

Cargo

3.127

Distribution of investment by country (in millions of USD and over the total) Mexico

16.969

32 %

Brazil

11.389

21 %

Colombia

8.538

16 %

Others

7.804

15 %

Peru

5.404

10 %

Chile

3.046

Source: IDB. Traffic 2017

According to the analysis made by Rafael Farromeque Quiroz, from the Vice-Presidency of Infrastructure of the Andean Development Corporation at the Development Bank of Latin America, the fact that 70% of the distribution by country is concentrated between Mexico, Brazil and Colombia is due to the traffic projections in these countries and to the fact that their main airports currently have a capacity deficit that will have to be addressed in the coming years. In these and other countries, such as Panama, Bolivia, and Chile, the specialist warns that urgent investments are required to alleviate the bottlenecks in their airport infrastructures, which are limiting operations, especially in the

large hubs that serve the region (Bogota, Lima, Mexico City, Panama City, Rio de Janeiro, Santa Cruz, Santiago de Chile, Sao Paulo, etc). The low percentages in investment distribution for countries such as Chile and Peru represent a wide inequity gap that translates into a lack of opportunities and improvements in infrastructure, implementation of technological systems and services. This can cause a significant statistical effect in the distribution of subsystems, decreasing the demand for them and consequently the supply, is then that the levels of investment do not allow a balance in the distribution of these.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

RECENT AND FUTURE AIRPORT INVESTMENT PLANS IN THE REGION

Argentina

Colombia

• Ezeiza International Airport: expansion from 54,800 mts2 to 217,230 mts2, with 138 check-in stations, 128 self-check-in stations and 54 boarding gates. Increased safety and energy efficiency of the runway with a complete replacement of the beaconing with LED technology for better visibility at a lower cost. New four-level parking lot with capacity for 1,835 vehicles.

• New El Dorado II Airport: the plan consists of six investment phases, at the end of which the new airport will have a surface area of 1,300 hectares, three runways 4 kilometers long, a control tower, and cargo and passenger hubs.

• Aeroparque Jorge Newbery Airport: landfill works on the shore of the Río de la Plata, construction of a new passenger terminal, and expansion of the aircraft operating platform. Construction of two new buildings, in addition to the creation of a park, a subway parking lot, and complementary works to facilitate access to the terminal and improve pedestrian and vehicular safety. • Cataratas del Iguazú International Airport in Misiones: enlargement of the passenger terminal from 8,000 mts2 to 15,000 mts2, and reconstruction of the taxiways and main runway.

Bolivia

• El Alto International Airport: the first phase of expansion and equipment, remodeling of the runway and apron boarding lanes, and expansion and remodeling of check-in areas, domestic and international arrivals control areas, commercial and passenger circulation areas. Modernization of the airport’s land entrance. • Santa Cruz de la Sierra Viru Airport: expansion and construction of a second runway, a 50,000 mts2 terminal building, and a 70,000 mts2 cargo apron.

Chile

• Arturo Merino Benítez Airport: expansion from 90,000 mts2 to 375,000 mts2 to improve its current passenger capacity and the air cargo that uses this infrastructure. • Diego Aracena de Iquique Airport: expansion and remodeling of the passenger terminal.

Costa Rica

• Juan Santamaría International Airport in San José: in February 2019, Block V was inaugurated, which expands the airport to the west, adding four additional boarding lounges, two connecting bridges and two for remote positions, works that total more than 6,000 additional square meters, in addition to complementary works on taxiways and perimeter security. In the medium term, a domestic terminal to the north is planned to separate international and domestic flows.

Ecuador

• Mariscal Sucre International Airport in Quito: the

Sustainable Development and Growth Plan has a 35-year planning horizon and considers investments in ten-year periods based on the growth of the sector. By 2030, it is expected to reach 70,500 mts2 with 16 aprons, to dedicate this terminal exclusively to international traffic, and to build a second domestic terminal, in addition to other complementary works.

El Salvador

• Monseñor Oscar Arnulfo Romero International Air-

port in El Salvador: renovation of the runway, construction of the new aircraft parking apron, acquisition of a new radar, and general improvements to the available infrastructure to enable the operation of 14 contact positions and three remote positions in an area of almost 44,000 m2. In addition, the construction of a new building for the passenger terminal located next to the current building, with a total area of 23,216 m2, distributed in three levels and with five new doors and boarding bridges, other improvements in the commercial, control, and passenger circulation areas, as well as a new public area for the welcome lobby on the main façade of the building with an area of 1,543 m2. In a second stage, the construction of another six new gates with their respective boarding lounges to reach an additional 42,930 mts2 of constructed area.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Guatemala • La Aurora International Airport in Guatemala: modernization and expansion to raise the level of services at the air terminal, improve the existing infrastructure and make processes more efficient. Improvements and expansion of the taxiway, passenger terminal with new boarding piers, cargo area, hangars, and perimeter security.

Honduras • Toncontín International Airport in Tegucigalpa: extension of the runway and complementary works to improve the safety of air operations. Work on the new Palmerola International Airport, in Comayagua, which will improve the services of the current Toncontín terminal, in addition to serving as an airport for Salvadoran and Nicaraguan cargo shipments. Construction of 26,000 sq. mts and six handling areas.

It also uses modern technologies for surveillance and monitoring, special systems for baggage handling, capable of moving 6,500 pieces per hour, fire safety nets, passenger information, among other elements.

Paraguay

• Silvio Pettirossi International Airport: remodeling of the current terminal, extending the boarding area and service counters, as well as the installation of two new baggage handling areas and a new baggage and cargo transport system. Also contemplated in the medium term is the possibility of having two runways to facilitate air operations. Guaraní International Airport, in Ciudad del Este: renovation and expansion of the terminal, including a new building, chute, and other elements to provide better service for passengers and cargo.

Peru

• Santa Lucía Airport: it is being developed over an area of 23.2 square kilometers and includes a 5.1-kilometer runway, a 4.6-kilometer runway, a control tower, a terminal with 33 positions, taxiways, and a service building, as well as a 4.7 square kilometer airbase since the project will be both civilian and military.

• Jorge Chávez Airport: Phase III of the airport modernization project is underway. It is expected to be ready in 2024 and will allow the airport to grow from 2 million to 9 million mts2. Progress is being made on the construction of the second runway scheduled to start operations in 2022, a new control tower by 2023, and a new passenger terminal. Also being considered is the construction of an airport city by 2051, where commercial activities, as well as logistics areas, will be developed.

Nicaragua

Uruguay

Mexico

• Augusto C. Sandino International Airport: runway expansion and other facilities.

Panama • Tocumen Airport: development of the construction of the South Terminal, with an approximate area of 116,000 mts2, 62 bridges for arrivals and departures, a new control tower, as well as a capacity to serve aircraft in 20 contact positions and 8 in remote positions. It includes support infrastructures such as taxiways, a 2.6-kilometer access boulevard, a new parking apron, and aircraft circulation, which will total a surface area of 250,000 square meters.

• Carrasco International Airport, in Montevideo: a technological development plan called Easy Airport was implemented to fully automate the terminal to reduce waiting times, simplify processes, and improve security. Automatic gateways with biometric technology for immigration control, automatic boarding pass checking at five self-service gates, and a facial recognition system at the boarding gates are in operation. The terminal has also worked on energy efficiency, with the installation of a photovoltaic solar generation plant, a new thermal conditioning system throughout the building, the replacement of lighting fixtures with LED technology, and various actions to reduce electricity consumption.

Venezuela • Simón Bolívar International Airport of Maiquetía: in 2020, the expansion of the domestic terminal, the construction of a remote apron for international flights, the rehabilitation of taxiways, the modernization of the cargo apron, and the updating of technological, air traffic control, internal security and data systems were completed. Source: Bulletin 370. Facilitation, trade, and logistics in Latin America and the Caribbean. ECLAC. Number 2. 2019.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

IMPACT PROJECTIONS OF COVID-19 For a sector such as air transportation, which at the most critical point of the pandemic brought about a 96% reduction in passengers (in April 2020, according to Cepal), the problem generated by COVID-19 has generated an unprecedented crisis whose solution, according to experts, will take a considerable time, partly because even in the second half of 2021 many restrictions for mobility by this route are still in force, especially on international routes.

sionaires, which have suffered a considerable decrease in their income as a result of these restrictive measures and the economic effect that the crisis has had on airlines. These have adapted different operations and, in some cases, have liquidated.

This emergency impacts all industries that are part of the sector, particularly airport operators and conces-

Source: Bulletin 370. Facilitation, trade and logistics in Latin America and

In addition, this situation may jeopardize or postpone some air terminal modernization and expansion plans while air traffic recovers.

the Caribbean. Cepal. Issue 2. 2019.

Impact of COVID-19 on airport revenues Number of Passengers (domestic and international) in millions and percentage (%) of change of scenery with respect to the average

Aeronautical Airport Revenues and not Aeronautical. Figures in billions of USD and percentage (%) change of scenario with respect to the average

Source: ACI

These figures reveal that until there is a substantial recovery in passenger traffic that at least equals pre-pandemic levels, it will be unlikely that airports will receive the revenues required to move forward with their modernization and expansion plans. This is not a minor detail if it is understood that many of them in the region had plans for the coming years, and without those resources, they will have to postpo-

ne or cancel them in the worst-case scenario. The recovery of traffic will depend to a large extent on the speed with which the vaccination plans advance in each of the countries, and on the release of air restrictions, especially between countries, since the volume of international travel continues at very low levels from mid2021, according to the projections for this year.

Industry Forecast Region

Demand in 2021 vs 2019

Capacity in 2021 vs 2019

Benefit

-57 %

-47.2 %

-47.700 billions USD (-10.4%)

-126.400 billions USD (-33.9%)

North America

-41.5 %

-29.2 %

-5.000 billions USD (-2.7%)

-35.100 billions USD (-26.8%)

Europe

-66.3 %

-57.1 %

-22.000 billions USD (-23.9%)

-34.500 billions USD (-43%)

Asia/Pacific

-57.8 %

-47.6 %

-10.500 billions USD (-8.8%)

-35.000 billions USD (-31.1%)

Middle East

-67.6 %

-58.9 %

-4.200 billions USD (-13.8%)

-7.900 billions USD (-28.9%)

Latin America

-48.9 %

-45.2 %

-4.000 billions USD (-20.4%)

-11.900 billions USD (-80.1%)

Africa

-64.5 %

-53.6 %

-1.700 billions USD (-24%)

-2.000 billions USD (-32%)

Global

Source: Infralatam

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Global passenger traffic recovery 2021-2023 compared to pre-COVID-19 levels 120% 100% 80% 60% 40% 2021: 52 % 2022: 88 % 2023: 105 %

20% 0%

2021

2022

2023

Source: IATA

These IATA estimates are the result of annual growth projections made by the entity according to supply and demand in both markets, particularly in domestic markets, taking into account the restrictions that may remain in force in international travel. IATA is optimistic that the speed of growth in the vaccinated population, the progress of infection testing, and the removal of restrictive measures will

lend themselves to a more rapid recovery in traffic. IATA believes that “any chance of borders reopening is met with an instant surge in bookings. The most recent example is the 100 percentage point increase in bookings from the UK to Portugal when the UK ‘Green List’ was announced in early May 2021. The economy is strong and can drive travel growth. February 2021 industrial production levels were 2% above February 2019 levels.”

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

CHAPTER 2 20

EXPERT PERSPECTIVES

“DURING THE PANDEMIC, AND STILL TODAY, THERE ARE MANY COUNTRIES WITH RESTRICTIONS ON TRAVEL, SO IT IS IMPORTANT THAT WE CONTINUE TO WORKING ON REOPENING TRAFFIC...”

Rafael Echevarne

General Manager Airports Council International, Latin America and the Caribbean (ACI-LAC) WHAT IS YOUR ANALYSIS OF THE AIRPORT OPERATOR MARKET DURING THE PANDEMIC FAR IN 2021? The pandemic generated an unprecedented crisis, with an unimaginable drop in traffic. We see that, in general, this has been recovering, highlighting the difference between Mexico, Brazil and the rest of the countries in the region, due to the fact that in these markets domestic traffic is very important and this helped the total consolidated traffic not to fall so much. In addition, Mexico was

and is the only country in the world where no restrictions were imposed on air traffic. During the pandemic, and still today, there are many countries with travel restrictions, so it is important that we continue to work on reopening traffic and, above all, harmonizing standards among states to begin to recover the industry. In addition, it is key that we use technology to facilitate this recovery. HOW DO YOU SEE THE OUTLOOK FOR THE NEXT TWO YEARS IN THE INDUSTRY? There is really a big unknown in terms of recovery, as this will depend mainly on the pace at which vaccination campaigns evolve in the region, the elimination of travel restrictions and the requirements for foreigners to enter the countries. We believe that although traffic in Latin America has not fallen as much as in other parts of the world, the pandemic will have a more severe impact in our countries, which may slow recovery. Significant changes in business travel behavior are also expected. The use of teleconferencing systems is here to stay.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

WHAT RELEVANT FACTS WOULD YOU HIGHLIGHT FROM THE DEVELOPMENT OF THE INDUSTRY IN THE LAST FIVE YEARS? The last few years were very dynamic in Latin America, especially from the point of view of air traffic growth. Mexico, for example, was growing at very high rates, which led to the need to provide more capacity in its capital city with the development of a new airport, although the new government later decided on another option. But the challenge is still there. In Santiago de Chile the airport is also growing and the same is happening in Lima. However, in 2019 there were social outbursts in some countries in the region, such as in Chile and Ecuador, but the growth scenario was there. Brazil, the great regional giant, has spectacular growth potential, especially in terms of international traffic. Despite the tremendous situation we are experiencing, Latin America depends on air transport for its social and economic development. And as traffic recovers, the urgent need for airport infrastructure will be felt again.

HOW DO YOU SEE THE BEHAVIOR OF PRIVATE INVESTMENT IN THE REGION? Latin America and the Caribbean is one of the regions in the world where there is more private sector participation and this has been fundamental in the development of airport infrastructure. Even today, interest continues, as demonstrated by the latest round of privatization in Brazil. WHAT ASPECTS DO YOU THINK SHOULD BE IMPROVED TO ENHANCE COMPETITIVENESS? The competitiveness of air transport is fundamental to enable the mobility of Latin American society. This is only possible with the continued liberalization of the sector. At ACI-LAC we believe in it and we support it so that artificial barriers to the development of commercial aeronautical activity are eliminated. For example, lowcost airlines have experienced great growth in recent years and have played an essential role in the region because they have made it possible for many sectors of the population to access air transportation.

EXPERT PERSPECTIVES “THE REGION HAS MADE SIGNIFICANT EFFORTS TO MODERNIZE AND EXPAND THE CAPACITY OF ITS MOST IMPORTANT AIR TERMINALS WITH SAFETY AND ENVIRONMENTAL SUSTAINABILITY CRITERIA.”

Leonardo Cañón

Urban Transportation Specialist in the Global Transportation and Digital Development Practice World Bank HOW DO YOU ANALYZE THE CURRENT STATE OF THE INDUSTRY IN THE REGION? Commercial passenger and cargo air transport in Latin America and the Caribbean have seen significant changes in the last decade, mostly positive. We have seen one of the highest growth in passenger and cargo numbers, both in conventional airlines and in low-cost segments, and improvements in safety, infrastructure quality, and environmental requirements.

In the context of the COVID-19 pandemic, passenger traffic was hit twice. First, because several countries took some of the strictest quarantine measures and closures (including Argentina, Peru, and Colombia), and second because the region was hit hard in terms of infections and deaths (including Mexico, Brazil, Colombia, Ecuador, and Peru). This has been reflected in significant declines in passenger volumes and tourism sector activity in most countries. This phenomenon has hit the region’s airline groups hard, including LATAM, Avianca, and Aeromexico, the three dominant players in the region, which underwent restructuring in the United States, designed to allow them to focus their financial and operational efforts on maximizing their capacity to generate value and services in line with the reality of revenues and costs.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Although in the second half of 2021 passenger volumes began to improve in domestic markets and some international routes (mainly to the United States), the industry has not yet fully recovered and it is common to observe symptoms of this weakness of airline groups a lower due offer of destinations, frequencies, and services. Likewise, there has been a rebound in U.S. airlines, which are apparently in a stronger position to reposition themselves in the region and offer their services as the demand for travelers to and from Latin America increases. This dynamic of competition with other strong groups in the region, combined with that between low-cost operators in domestic and regional segments, and added to a panorama of uncertainty for destinations outside the Americas (Europe, Middle East, Asia) creates a general situation of instability in airline operations that could slow down the recovery curve of the sector. WHAT IMPORTANT MILESTONES WOULD YOU HIGHLIGHT IN TERMS OF INFRASTRUCTURE DEVELOPMENT AND INVESTMENT? The region is generally lagging behind in its aviation infrastructure and in the annual amount of investment in the sector, especially when compared to Asia Pacific, North America, or the Middle East. With the popularization of regional hub models, competition in the airline industry is not only between airlines but also between airports that share large areas of influence, such as San Salvador, Panama, and Bogota, which serve as connections between North and South America. The region has made significant efforts to modernize and expand the capacity of its most important air terminals with safety and environmental sustainability criteria. This progress is recognized by several industry barometers, which highlight the efficiency, comfort, and safety of several terminals that have been recently renovated, expanded, or modernized, such as Panama, Lima, Bogota, Quito, and San Salvador.

HOW DO YOU SEE PRIVATE INVESTMENT AND PUBLIC-PRIVATE PARTNERSHIPS IN THE REGION? The region has been a pioneer in the development of transportation infrastructure in conjunction with the private sector. Thus, several countries have become success stories in the development of public-private partnerships, such as airport concessions in Peru, Chile, and Colombia, mainly, which have shown the ability to generate appropriate regulatory and institutional frameworks to enable the development of infrastructure and the participation of the private sector, with criteria of efficiency and value for money. In the future, the region needs to maintain and increase its infrastructure investment rate, for which the participation of the private sector is a valuable strategy that allows governments to have more tools and options to achieve the goals outlined in the infrastructure master plans”. HOW DO YOU SEE THE SECTOR’S OUTLOOK FOR THE NEXT TWO YEARS? The outlook for the next few years has a favorable trend, albeit with some difficulties arising from border uncertainty towards Europe and Asia. After experiencing growth rates in passenger-kilometer volumes of around 6% in the past decade, the region has the infrastructure and airlines with the capacity to absorb the growing demand. However, uncertainty with the reopening of borders in Europe, the Middle East, and Asia (particularly for travelers from the region), advancing vaccination, infection control, and reduced volumes of business travelers will likely slow the rate of recovery of the sector in the region, which will mean lower growth rates in the air cargo sector. Lowcost airlines will continue to position themselves among groups of travelers with a lower ability to pay. In general, we would expect a more dynamic trend in domestic and regional segments and a less dynamic trend in long-haul segments and connections outside the continent.

IMPROVE

are often neglected when regional hub models are advanced.

Prior to the pandemic, the region was facing changes in the market structure, with a lot of interest from North American and Middle Eastern airline groups to invest through alliances, acquisitions, and mergers. This puts pressure to increase the connectivity of destinations under the principles of air law and freedom of the air, which in turn can boost international air traffic volumes of passengers and cargo, as well as the popularization of larger aircraft. This, in turn, generates pressures on regional connectivity and secondary cities, which

In terms of infrastructure, continuing to invest in strategic air plans with a ten, fifteen and twenty-year vision will be a key strategy that will allow the region to maintain and increase the rate of investment (hand in hand with the private sector) that will continue to contribute to the region’s competitiveness. In addition, the high level of human development in the region is conducive for airline groups to continue to locate training, teaching, maintenance, and logistics centers, which represents a competitive advantage.

WHAT ASPECTS DO COMPETITIVENESS?

YOU

THINK

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

OPERATOR PERSPECTIVES Latinoamérica ha experimentado en las últimas tres décadas un crecimiento importante en su infraestructura aeroportuaria. De acuerdo con el BID, desde 1990 se han hecho inversiones cercanas a los USD 38.000 millones en la construcción de unos 168 aeropuertos mediante alianzas público-privadas, los cuales mueven aproximadamente un 75 % del tráfico total de pasajeros en la región.

Además de lo anterior, la regional en Latinoamérica de Airport Council Airports (ACI) ha señalado que factores como el crecimiento del nivel socioeconómico medio en los países latinoamericanos, la liberación de los procesos del transporte aéreo y la modernización de la infraestructura disponible han incidido en que entre 2000 y 2018 se haya triplicado el tráfico aéreo y duplicado la cantidad de aviones en operación.

Se calcula que para los próximos veinte años el crecimiento del sector y las demandas de la región generarán inversiones para su desarrollo y mantenimiento cercanas a los USD 146.000 millones.

La Cepal, entre tanto, estima que a 2040 se invertirán cerca de USD 53.150 millones en infraestructura aeroportuaria para suplir la demanda de pasajeros, que para ese año se espera supere los 1.727 millones anuales en la región, y los requerimientos en el envío de cargas como consecuencia del aumento del comercio electrónico en años recientes y especialmente en pandemia (a 2024, según Statista, las ventas por este medio crecerán un 116 % respecto a 2019).

Esta figura contractual se ha convertido en la principal modalidad que han encontrado los gobiernos para impulsar el fortalecimiento de esta infraestructura en sus territorios. Bajo esta modalidad, explica el BID, los proyectos aeroportuarios son autosostenibles y generan ingresos aeronáuticos y comerciales, pero deben pagarle al Gobierno un canon anual fijo más un porcentaje variable de los ingresos (con alta variabilidad, llegando incluso hasta el 77 % del total de los ingresos del operador), y con criterios de inversiones y mantenimiento requeridos.

La entidad estima que la demanda de pasajeros podría incrementarse en más de 50 millones de pasajeros anuales si se invirtiera en la capacidad aeroportuaria necesaria para superar las restricciones, “o cual redundaría en un aporte al PIB por parte de la aviación superior en USD 42 mil millones y la creación de 900.000 empleos adicionales”.

Mexico Miguel Cravioto Head of Communications and Public Relations, Grupo Aeroportuario del Pacífico. Grupo Aeroportuario del Pacífico -GAP-. • Airports operated and/or managed:

• How has traffic performed over the last year?

12 in Mexico and 2 in Jamaica

• Nature:

Private concessionaire. The airports managed by GAP in Mexico and Jamaica are owned by national governments and were assigned to them under concession.

• What is the vision of the current state of the industry?

Currently, the industry is in a clear recovery, which has increased due to the confidence that passengers have to travel. GAP has contributed to providing such confidence to passengers, with the installation of protocols and measures in the airports it manages. As a result, the airport group became the first in the world to certify all its terminals in the Airport Health Accreditation (AHA) program of the Airports Council International (ACI), to which approximately 2,000 airports in nearly 180 countries belong. It is estimated that airports will achieve pre-pandemic traffic rates between 2023 and 2024 (some managed by GAP have already achieved this recovery compared to the same months of 2019).

In June 2021, GAP’s 12 Mexican airports recorded a decrease in total passenger traffic of 2.2%, compared to the same month in 2019. Los Cabos, Tijuana, and Puerto Vallarta airports, meanwhile, had an increase of 14.9 %, 10.4 %, and 2.8 %, while Guadalajara and Guanajuato airports showed a decrease of 14.3 % and 14.4 %, which continues to demonstrate the positive trend in our Mexican airport network.

• What recent remodeling and infrastructure work have you done at your terminals? All of the Group’s airports have undergone remodeling work in recent years, including terminal expansions at Los Cabos (currently underway), Guanajuato, Hermosillo, Aguascalientes, and Guadalajara. In addition, two new terminals will be built in the coming years: one for Puerto Vallarta International Airport and another for Guadalajara International Airport, in addition to a new runway for the latter, which is already under construction.

• Figure:

27.3 million passengers transited through GAP’s airports in Mexico during 2020.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

OPERATOR PERSPECTIVES

Aeropuertos y Servicios Auxiliares –ASA– • Airports operated and/or managed:

Carmen, and Tepic registering the highest percentage increase in operations carried out.

• Nature:

The volume of cargo moved, from January to June of this year, amounted to 1,570,345 kilograms, 80.8% more than that recorded in 2020, when 868,577 kg were moved. The airports leading the growth figures in air cargo are:

19 direct and 5 in partnership

Decentralized agency of the Federal Government of Mexico.

• What is the current vision of the industry in the region?

The crisis in the world airline industry, derived from the Sars Cov 2 health emergency, has created an unprecedented situation that has affected the operation of all airlines in the world, including Mexico; however, as of August 2021, there were certain signs of recovery that, according to experts, can be seen in the medium and long term. In the first half of 2021, the 19 air terminals that make up the Airports and Auxiliary Services Network (ASA) presented positive figures with respect to the drop in operations in 2020. They handled 1,309,883 passengers, a growth of 42.8% compared to the 917,155 people handled in the same period of 2020. With the gradual increase of commercial flights and the opening of some international borders, ASA terminals have been recovering their operations, so that from January to June 2021 passenger attendance grew by over 40 %, with six airports of the ASA Network reporting the highest increase in passenger movement:

• Puerto Escondido: 94.4 %. • Matamoros: 66.1 %. • Campeche: 60.6 %. • Ciudad Obregon: 59.1 %. • Chetumal: 56.1 %. • Nuevo Laredo: 42.3 %. • Uruapan: 41.6%. During the same period, 61,100 air operations were carried out in the ASA Network, registering a total growth of 27.1 %, compared to 48,075 in 2020, with the terminals of Campeche, Puerto Escondido, Matamoros, Loreto, Ciudad Obregón, Nuevo Laredo, Uruapan, Chetumal, Ciudad del

• Puebla: 290.6 %. • Ciudad del Carmen: 34.8 %. • Ixtepec: 32.8 %. • Nuevo Laredo: 90.5 % (with the start of operations

of TUM Aerocarga in April).

• what are your immediate or future plans? Airports recently remodeled by the operator: 1. Chetumal: the airport remodeling works comprised three fundamental actions: enlargement of the passenger building, complementary works, and the construction of a new control tower. The expansion of the passenger building allowed for a 100% increase in capacity compared to the old building, to serve approximately 370 passengers at peak departure and arrival times, with a final surface area of 3,685 mts2. Work on the new control tower is expected to be completed in the first quarter of 2022. This new building will be 28 meters high and will meet all the regulatory requirements associated with this type of facility. To date, the expansion and modernization works have generated 255 direct jobs and 153 indirect jobs. These works have an expected total investment of 101.02 million Mexican pesos (approximately US$5,131,000). The project will allow more than 50,000 additional annual passengers to travel to Chetumal, which will generate important social and economic benefits for the region, contributing to the reactivation of the national aeronautical sector.

With the construction of the new terminal building at the Chetumal International Airport, the IATA optimum level is reached, with 10m2 per passenger, offering better comfort, quality, as well as physical and sanitary safety in the service. Ixtepec: the Federal Government, in coordination with the Ministry of Communications and Transportation (SCT), the Ministry of National Defense (SEDENA), and Airports and Auxiliary Services (ASA), enabled the airport of Ixtepec, Oaxaca, as a mixed air terminal (civil-military operation), to promote air connectivity and the economic development of the Isthmus of Tehuantepec and the southeast of the country. In order to support the productive and social growth of the region, ASA carried out the actions and works necessary for Military Air Base No. 2 to operate as a mixed air terminal, thus providing continuity to military operations and adding commercial and general aviation operations, in compliance with airport regulations. The habilitation of this mixed air terminal is the result of an investment of more than 300 million pesos, federal resources that allowed the expansion and renovation of the terminal building; a new Rescue and Fire Extinguishing Service (SEI); new control tower and equipment; taxiway Charlie; expansion to an additional position in the platform; parking for cars and accesses to the terminal building; besides the construction of new monumental access; military dispatch offices; meteorological station; rehabilitation of internal roads and placement of fencing for wildlife protection. The habilitation of the Ixtepec Airport and the beginning of civil operations allowed benefiting more than 15 thousand passengers per year, since the beginning of commercial operations on April 26, 2019, as well as underpinning the economic and social development in the states of Oaxaca and Veracruz.

• Airports with upcoming remodeling plans ASA will begin expansion work in 2021 on the Huasteca Potosina National Airport, located in the municipality of Tamuín, as part of the work and actions contemplated in the Master Plan for the Comprehensive Tourism Development of the Huasteca Potosina, which has been implemented by the Federal through the Ministry of Tourism and the state government. This project is considered one of the most important works in regional airport infrastructure of this six-year term since it is especially relevant due to the potential of the Huasteca Potosina is a region with an eminent tourist vocation, as it has archaeological zones and natural, which allow the promotion of adventure tourism. The words corresponding to the first stage of the expansion of the Tamuin Airport are expected to be completed in December 2021 and the entire project in 2023. The Federal Government will invest approximately 1,422 million pesos (one 71 million dollars) in the project, an investment that will allow the development of the area currently occupied by the airport - 125 hectares - plus the 87 hectares acquired and donated to ASA by the Government of the State of San Luis Potosí, to have a project developed in a polygonal area of 212 hectares. This project seeks to attract a greater number of airlines, routes, and frequencies that will allow a greater projection of the region, while increasing the airport and operational capacity of the ASA Network, in order to continue offering more and better services on a permanent.

• Puerto Escondido: expansion and modernization. • Ciudad del Carmen: expansion and modernization. • Puebla: expansion and modernization. • Tepic: expansion and modernization. spokesperson: (According to Mexican law, no promotion of public officials is allowed, neither in name nor in image).

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Colombia Concesionario Opain S.A • Airports operated and/or managed:

tion, emigration and domestic check-in, in order to optimize air operations and control crowds.

• Nature:

• El Dorado Airport has the largest photovoltaic installation in Latin America, with 10,500 solar panels that will generate around 12% of the air terminal’s energy consumption.

1 (El Dorado International Airport in Bogota).

Private concessionaire

• What has been the most relevant investment you have made in the last five years? Innovation and transformation are permanent processes at El Dorado, which is why we are always investing in technology, implementing new programs and sustainability initiatives that allow us to be an airport that is at the forefront and adapted to the needs of today’s world. These are our major investments over the past five years:

• Reliable self-service systems that leverage operational

efficiencies in the terminal, such as contactless travel document verification.

• Implementation of new high-tech sensors to control passenger capacity, Veripax pre-security gates for contactless boarding pass reading, biometric gate systems at Emigration, and Self Bag Drop baggage delivery systems. • El DoradoPass: integration within the El Dorado app that allows us to connect our users with the terminal, keep a health record and at the same time mitigate contagion during the pandemic among passengers and the airport community. This implementation has allowed us to provide an agile and efficient experience, a development that was recognized in the eighth version of the Latam Digital 2020 awards as “Best Digital Transformation Project”. • The XOVIS system seeks to optimize passenger movements, comply with biosecurity measures and streamline the operation’s internal processes. A total of 40 movement sensors were installed at immigra-

•Installation of more than 1,200 antibacterial gel dispensers throughout the air terminal. And the provision of 482 hand-washing sinks with 280 soap dispensers. • During the pandemic phase, during air traffic restrictions, the airport was used only as much as strictly necessary to ensure thermal comfort and air quality. The lighting system retrofit project also got underway, replacing conventional sodium, metal halide, and fluorescent lamps with LED technology. A total of 14,234 light fixtures were replaced and an estimated energy saving of 450,000 kWh per month was achieved, which is expected to reduce annual energy consumption by 15%. • The operating cycles of the air conditioning systems were optimized, ensuring their rational use according to the thermal load of the building and the number of passengers being transported. • Progress was made on the air conditioning interconnection project, which will allow greater versatility in the use of these systems and guarantee an estimated energy saving of 50,000 kWh per month, which means avoiding emissions of 8.2 tons of CO2eq. • How many airlines use el dorado?

El Dorado International Airport is served by 23 international airlines, 6 domestic airlines, and 21 cargo airlines.

OPERATOR PERSPECTIVES

• What associations does it belong to and what certifica-

tions does it have? In the last year, at El Dorado we have managed to transform ourselves to offer a safe and agile experience to our users, in accordance with the new global dynamics:

• We are a 5-star airport in COVID-19, with Skytrax recog-

nition thanks to the continuous implementation of biosecurity processes.

• We have the biosecurity seal “Check-in Certified, COVID-19 biosecure” and the certification and protection seal “Safeguard” delivered by Bureau Veritas, thanks to the measures we implemented in the air terminal in terms of biosecurity. • We have a circular economy system that allows us to take advantage of 56% of the elements discarded in the terminal. The terminal is certified as Zero Waste in the gold category, thanks to the waste sorting that is carried out on a daily basis.

• We are the first airport in Colombia and the second in South America to receive sanitary accreditation certification from the Airports Council of the World (ACI). • What are your expectations for the remainder of 2021

and the near future? At El Dorado, we will continue to innovate and transform ourselves to remain at the forefront of airports at the international level and thus consolidate ourselves as an agile, safe, and sustainable connection point. Sustainability plans will always be our priority, which is why we will continue to modernize the terminal’s lighting, and we will complete the replacement of all lighting fixtures with LED technology bulbs. At present, we have pending the replacement of the remaining 14.99% of the lights and we expect to conclude this year with these adjustments. Likewise, our goal is to encourage the efficient use of materials and the use of waste in order to reduce our carbon footprint by 18% by 2025.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Colombia María Claudia Gedeón Corporate Affairs Manager of SACSA. Sociedad Aeroportuaria de la Costa S.A –SACSA–

• Airports operated and/or managed:

1 (Aeropuerto Internacional Rafael Núñez).

• Nature:

Private organization

• What has been the most relevant investment you have made in the last five years? The expansion of the boarding and disembarkation halls of the first five positions of the airport, for an approximate value of US$1,135,000 million.

• How many direct employees do you currently have?

Approximately 106 direct employees. The airport generates more than 8,000 indirect jobs per year.

• What was the traffic (air and passenger) during 2020?

There were 1,923,211 passengers handled in 2020 (63% less than in 2020, when there were 5,208,071) and 17,568 air operations.

• How many airlines use your airport? 11 airlines:

• Avianca • Viva • LATAM • Easy Fly • GCA

• Jet blue • American Airlines • Spirit • Wingo • Copa Airlines • KLM • Do you outsource or subcontract part of your emplo-

yees? Not at SACSA, but at the airport, there are approximately 8,000 indirect jobs generated by airlines, commercial premises, ground handling, and cleaning companies, among others.

• What associations do you belong to and what certifications do you have? Certifications: Biosafety certificates: Safeguard - ACI LAC Check-In - ACI LAC

EFR Certificate (Family Responsible Company) from the MásFamilia Foundation Certificate of Corporate Social Responsibility from Fenalco Bolivar. Certification of the integrated management system in ISO 14001:2015, ISO 9001:2015, OHSAS 18001:2007 standards. Aerodrome Certification from the Civil Aeronautical Authority.

OPERATOR PERSPECTIVES

• After a pandemic year, how would you rate the per-

• What are your expectations for the remainder of 2021

formance of the airport operator industry during 2020? From Rafael Núñez International Airport we consider that our management was, is, and will continue to be exemplary, since the constancy, precision, and details in all points of the airport in 2020 were what allowed us to be the first in Colombia to reactivate commercial operations. Likewise, we have constantly worked to maintain the terminal as a safe point for passengers and we have been certified with the safeguard seal and the Check-In certificate (description).

and the near future? We recently launched a campaign #CartagenaParaísoBioseguro, hand in hand with the city’s tourism guilds, to position the city as a safe destination for the health of visitors. We saw the first positive results during this year’s Easter Week, in which the flow of mobilized passengers had significant growth, therefore, we hope to continue seeing this upward trend and recover by attracting again a significant percentage of tourists to our city.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Peru Carlos Antonioli Operations Manager Aeropuerto Andinos del Perú - APP

• Airports operated and/or managed: 5

reduction of 60% compared to 2019, and a total of 12,000 air operations.

• Nature:

• How many airlines use your airports?

Private concessionaire

Cinco aerolíneas: Latam, Sky Air, Viva Air, Atsa y JetSmart.

• How many airports operate and where?

• What associations do you belong to and what certifi-

Five airports in southern Peru:

• Alfredo Rodríguez Ballón International Airport in Arequipa. • Coronel FAP Alfredo Mendívil Duarte International Airport in Ayacucho. • Inca Manco Capac International Airport of Juliaca. Padre Aldamiz International Airport of Puerto Maldonado. • Coronel FAP Carlos Ciriani Santa Rosa International Airport of Tacna.

• What was the traffic (air and passenger) at your airports during 2020? In 2020, a traffic of 1,192,000 passengers was recorded, a

cations do you have? We belong to the Airport International Council Latin America and the Caribbean (ACI-LAC). We have the Green Airport Recognition certification, granted by ACI-LAC in its program re/usar: residuos al servicio de una conciencia sostenible, the environmental awareness project based on solid waste management implemented at the Alférez Alfredo Rodríguez Ballón International Airport in Arequipa.

• What are your expectations for the remainder of 2021

and the near future? In a complex scenario due to pandemic restrictions, we expect to close the year with more than 2.1 million passengers (in 2019 there were 3.6 million) and close to 15 thousand operations.

OPERATOR PERSPECTIVES

Rocio Espinoza LAP’s Reputation Manager. Lima Airport Partners - LAP

• Airports operated and/or managed:

passengers transported. Likewise, in terms of flight traffic, there was a 70 % drop in the total number of domestic and international flights registered.

1 (Jorge Chávez International Airport of Lima).

• Nature:

• How many airlines use your airports?

Private concessionaire

• What has been the most relevant investment you

have made in the last five years? During the entire concession period (since 2001) we have managed our economic resources efficiently, meeting the needs to sustain the airport’s operations and fulfill our commitments to the State. Along these lines, during 2020 we invested US$107.27 million in the Jorge Chávez Airport expansion project.

• How many direct employees do you currently have?

At the end of May 2021, we had 636 employees and 15 interns.

• What was the traffic (air and passenger) you had at your airports during 2020? At the end of 2020, Jorge Chávez Airport closed with more than 7,030,000 passengers between departures and arrivals of close to 56,000 commercial flights in domestic and international destinations.

• In what percentage did this traffic increase or decrease compare to 2019? Regarding the flow of passengers registered in 2019, last year we had a reduction of 69.5% of the total number of

21.

• What associations do you belong to and what certifications do you have? Awards:

• “Socially Responsible Company” award for Peru 2021. • Award “Best Airport in South America” by the consulting firm Skytrax Research. • Presence in the Merco Reputation, Merco Talent, and Merco CSR 100 Ranking. • National Environmental Award “Antonio Brack Egg” 2020. • Airport Carbon Accreditation Level I •Airport Health Accreditation

• After a year of pandemic, what is the vision for the

performance of the airport operator industry during 2020? The crisis generated by the pandemic strongly impacted the aviation industry in Peru and the world, as a consequence of a severe reduction in air traffic due to the confinement of people and the various measures adopted by countries restricting air transport.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

OPERATOR PERSPECTIVES

OPER In view of this, the companies operating airports in Peru were deeply affected, but we made ourselves available to the measures taken by the government for support during the state of emergency. From the beginning of the pandemic, at LAP we joined the support of the authorities for landings and take-offs of humanitarian flights, we gave continuity to cargo flights, we contributed with donations of essential and safety products to the most vulnerable populations; we also implemented the biosecurity protocols required by the health and transportation agencies for the prevention of COVID-19. Despite this difficult situation, the solidity and responsibility with which we have managed our finances throughout the concession allowed us to face the effects of the pandemic.

• Did your company decide to increase the number of

employees during the pandemic? (direct and/or outsourced) No. However, during 2020 we did hire, but they were not the result of special requirements due to the pandemic; they were hires linked to replacements, substitutions, or new positions already defined before the COVID-19 crisis.

• What are your expectations for the remainder of 2021 and the near future? Our commitment is to continue working for the recovery of

the sector, hand in hand with the authorities and all the actors of the Jorge Chávez airport community, with whom we share the responsibility to continue connecting the country. As airport operators, we have the great challenge of giving continuity to the operation in a safe, efficient, and simple manner, for the benefit of our passengers.

PERS

This 2021 we have undertaken a process of changes and transformation that we had already planned but the pandemic accelerated, we are working to implement new technology that allows passengers to experience a better quality of service adapted to the situation, innovating not only in our digital progress but also homologating ourselves to the main industries in the world and aiming to increase our high standards of health and safety. This year, we expect to reach 10 million passengers. Likewise, we continue to advance with the works of the Expansion Project of the new Jorge Chávez International Airport, as planned, in order to build an airport that will become the main hub in Latin America. Finally, this year we continued to integrate sustainability into our management, which due to the health crisis we had to rethink the strategy through the development of our social programs.

Chile ATOR

Branko Karlezi

SPECTIVES

Communications and Customer Service Manager Nuevo Pudahuel • Airports operated and/or managed:

1 (Aeropuerto Internacional Arturo Merino Benítez de Santiago de Chile)

Chile has been one of the few countries in which the group is present in which we have not been given a solution,

Private concessionaire composed of ADP Group (Paris Airport), Vinci Airports, and Astaldi Concession.

That is why we are taking the process to local arbitration bodies, which are binding, and to other international bodies in which we are seeking recognition of support for private and international investors in Chile, as other countries have done.

• Industry vision

• What recent investments have you made in the airport?

• Nature:

For Nuevo Pudahuel and the industry in general, it has been the most profound catastrophe in history since the creation of commercial aviation. Some countries have understood this, but others have not. In Chile, it is one of the most important sectors of the economy; before the pandemic, it represented three points of GDP and generated some 190,000 jobs. Unfortunately, the pandemic was not within the risks of the concession contract we have established with the Chilean government. Our operations were reduced by up to 95%, and it has been maintained at a similar level in 2021 due to the limitations of the health authorities, which we understand, but the concession is based on the contract and we have asked the Ministry of Public Works to fulfill its duty and its power to modify it in accordance with national laws, but its response has been that it has no interference and that it cannot do so. We took this dispute to the Chilean concession system, where we asked for recognition of our contractual rights. Although the response was favorable, this body has no binding power, so the Ministry claims that it has opened talks to settle the dispute.

Nuevo Pudahuel arrived in Chile in 2015 to build the new international terminal in Santiago de Chile. This previously had an area of 90 thousand square meters and capacity for 16 million passengers per year. With this work, which will be delivered in September 2021, we will have a terminal of 220 thousand square meters and the old one will be expanded to 110 thousand square meters, for a total of 330 thousand square meters, all with 100% investment and lending banks Capacity will be increased to 38 million passengers per year, and the contract stipulates that if peaks are reached at certain times, we will have to make a new investment in two boarding lounges, which would increase capacity to 45 million passengers per year. The international airport will have two independent runways that will allow up to 90 operations per hour, today there are 15, whereas before the pandemic there were 45.

• What works do you have planned for the next five years?

We will have a new transportation center for intercity and local buses to transport passengers to the airport. Today only concessioned buses and cabs arrive at the site.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Ecuador Luis Galarraga Communications and Press Manager. Corporación Quiport

• Airports operated and/or managed:

1 (Aeropuerto Internacional Mariscal Sucre de Quito).

• Nature:

Private concessionaire with contract established with the municipality of Quito from 2006 to 2041.

• Operator’s history, background, and current position in the industry Corporación Quiport is the company in charge of the integral management of the airport service and is responsible for the development, design, financing, construction, operation, administration, and maintenance. It is formed by important companies with vast experience in airport concessions and operation: CCR from Brazil, Odinsa S.A. from Colombia, and HAS Development Corporation (HASDC) from the United States.

• What awards has it received?

Quito International Airport is the only airport in the American continent and one of the thirteen airports in the world to have received a 5-star rating for service quality -the highest- from Skytrax, the most important and prestigious air transport services auditing organization. It also has levels 1, 2, and 3 -out of a maximum of five- in the Customer Experience Accreditation Program, promoted by Airports Council International (ACI), certifying the quality experience of the users who frequent the air terminal.

In addition, to contribute positively to the passenger experience, Quito International Airport offers travelers the following technological solutions: Mobile application: facilitates airport processes, allows advance purchases in stores, and with touchless technology the user can operate check-in machines, as well as the opening of entrance gates.

Self-check-in kiosks: stations to check-in personally and in an agile and immediate manner. Self-bag drop system: option to check bags personally without assistance. In environmental management, work remains focused on the responsible management of the carbon footprint. Thus, the airport is accredited at the Neutrality level, granted by the Airports Council International under the Airport Carbon Accreditation program. • What is the current vision of the state of the industry

in the region? At present the airports in the region are already operating, each one has special restrictions and requirements, which limits the early recovery of the sector. However, a considerable reactivation can be seen in some countries, especially marked by the need to apply the vaccine, as in the case of Ecuador, where there has been an increase in travel, especially to destinations where access to the vaccine is more immediate.

OPERATOR PERSPECTIVES

One of the important aspects that directly influence the recovery of the sector is related to the confidence that passengers need to feel in order to travel again. In this sense, Quito International Airport has worked meticulously respecting all biosecurity measures within its facilities to ensure traveler safety, thanks to which it obtained in 2020 the Airport Health Accreditation (AHA) granted by the Airports Council International (ACI), based on strict compliance with the recommendations of the Council of the International Civil Aviation Organization (ICAO) to establish common sanitary measures, and is aligned with ACI best practices, as well as with the aviation security protocol developed by the European Union Aviation Safety Agency (EASA). Corporación Quiport’s expectations for the second half of

the year are positive, considering that the speed of recovery will always depend on the specific conditions of each country. Even though the situation is changing and there is still a lot of uncertainty in the region, one could think that we will not return to the conditions of 2020 or the first quarter of 2021.

• What are your immediate and future plans?

In March 2021, the airport inaugurated the comprehensive remodeling of the public departure and arrival halls of the passenger terminal. The project had an investment of US$ 2.18 million, financed by Quiport’s own resources and its shareholders. More than 90 people worked directly on the project.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Colombia Marcel di Muzio Commercial, Marketing and Communications Director Grupo Aeroportuario del Caribe

• Airports operated and/or managed:

1 (Ernesto Cortissoz International Airport of Barranquilla).

• Nature: Private

• What is the vision about the situation of the industry in the last year, and how has it behaved during the pandemic? Since the beginning of the pandemic, and due to the restrictions imposed by the national government, air mobility figures for the region and the country were affected, impacting airport operations, which were suspended for seven months. However, the airport continued to operate humanitarian, military and cargo flights, without receiving regulated and non-regulated revenues. We are betting on the reactivation of air operations, which have been gradually growing in accordance with the authorizations and determinations issued by the national government. Since the resumption of operations on September 1, 2020, there has been a gradual recovery of passenger traffic. We highlight mainly that domestic and international flights recovered by 65% in the first half of 2021, compared to the same period in 2019. We believe that the industry situation in 2020 demonstrates that working together makes economic recovery possi-

ble if done in an articulated manner to provide better service to users. We are still in the process of reactivation and generating new opportunities to recover the full functionality that the airport was managing before the pandemic. We are aware of the importance of air connectivity and the airport’s contribution to the region’s economy.

• What plans or projects are you currently executing?

The Ernesto Cortissoz International Airport is in the process of expanding and modernizing its infrastructure. The total area will be 27,780 square meters on the landside, with a capacity to serve up to 8 million passengers annually, meeting the capacity needed to expand the portfolio of offerings, as well as the future growth expectations of the city and the Caribbean region. We currently have 40 stores operating at the service of users, and we are also in the process of negotiating and adapting others. Once the remodeling work at the passenger terminal is completed, the airport will have a total of 62 commercial spaces for the service of users. Regarding the balance of passengers mobilized, we highlight that during the first half of 2021 we have recovered 77 % of the passengers mobilized in the same period of 2019. June 2021 was the month in which more passengers were mobilized by the air terminal since the reactivation with 189,733 passengers, compared to 245,910 in the same month of 2019 and 1,700 in June 2020, in the middle of the pandemic.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

CHAPTER 3 42

OPERATORS DIRECTORY OF AIRPORTS IN LATIN AMERICA 2021-2022

Mexico

Source: The number of employees, annual revenue, year of entry and associated companies were consulted in: Dun & Bradstreet Data Cloud , Performance Report (OSITRAN), official figures based on financial reports originated by some operating companies and Linkedin. * Note: the modeled figures correspond to estimates and projections made for the last year for which data were available. The year (revenue) shown in the table is based on the latest available information. No data (revenues, employees, related companies) are available for Venezuela. *N/D : Data not available.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Central America

Andean region

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Southern cone

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

CHAPTER 4 48

OUTLOOK FOR LATIN AMERICAN ECONOMIES (PANDEMIC-POSTPANDEMIC)

By 2020, the world’s GDP is expected to shrink the most in comparison to 1946, as a result of a generalized f all in economic activity in both developed and emerging economies. Similarly, the crisis has triggered a contraction in international trade, which in

markets The economic instability generated b y the panuncertainty in commodity m arkets l ed t o strong exchange rate corrections, which gave way to con-

In addition, pandemic containment measures adopted in the vast majority of the world’s countries have

American and Caribbean c urrencies depreciated of 2 020, 1 7 of the r egion ’s economies r ecorded currency dep reciations, with an average dep reciation of 16.3% .

aviation, restaurant and hotel service activities. However, the measures adopted by some of the governments of Latin American countries to deal with the effects of the pandemic have helped to mitigate the economic impact on the social and business fa-

In relation to the above, it should be noted that the variation i n the nominal exchange rate a gainst the U.S. dollar was divergent in the countries of the subregion. For example, the annual average for 2020, with respect t o 2019, reports the l argest depreciation in the Dominican Republic (10.2%), followed by Nicaragua (3.7%), while in Costa Rica, G uatemala and Honduras the a verage variation w as close to zero (between 0.2% and 0.3%).

packages, for amounts close to 12 trillion dollars in tions announcements have cushioned the fall in economic activity, but this has also caused high levels of liquidity, which has had repercussions in the increase of indebtedness at a global level.

FINANCIAL MARKET VOLATILITY INDEX (JANUARY 2018 - OCTOBER 2020) 90 80 70 60 50 40 30 20

2019

Oct

Sep

Aug

Jul

Jun

May

Apr

Feb

Mar

Jan

Dic

Nov

Oct

Sep

Aug

Jul

Jun

Apr

May

Feb

Mar

Dic

Jan

Nov

Oct

Sep

Jul

2018

Aug

Jun

Apr

May

Mar

Jan

Feb

2020

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on Bloomberg Note: The VIX index, prepared by the Chicago Board Options Exchange (CBOE), measures expected volatility for the next 30 days and is obtained from the prices of call and put options on the S&P 500 index.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

emergency materialized in the worst economic, social and productive crisis that the region has experienced in the last 120 years, and in a 7.7% drop in regional GDP”. Against this backdrop, ECLAC stated: “In the global arena, despite a slight upward revision of the projections made in mid-year, in 2020 the world economy was expected to suffer a 4.4% drop and a generalized recession in countries and regions. The growth dynaquarter for some of the major economies, thanks

9.2% drop was forecast for 2020 and a 7.2% recovery in 2021. The 2020 drop would be the deepest when it was almost 13%. “Between January and September 2020, the volume of trade fell by 7.2% compared to the same period of the previous year, although since June there had been a recovery.” It should be noted that Brazil and Uruguay recorded smaller declines in imports than the rest of the South while imports from Costa Rica, Guatemala and Nicaragua fell less than the Central American average.

enabled by reopenings during the third quarter.” In 2021, the said commission mentions that a rebound in the growth rate of the world economy of around 5.2% is expected. In developed economies, a growth rate of 3.9% is projected for 2021, which implies that, on average, these economies will not reach pre-crisis GDP levels next year. Similarly, and with a similar forecast, the International Monetary Fund (IMF) projects world economic growth of 5.5% in 2021 and 4.2% in 2022.

Impact on trade and value chains On the other hand, with respect to world trade, according to the World Trade Organization (WTO), a

there was a sharp decline in commodity prices, from May onwards this was reversing and, with the exception of energy commodities, by October prices were already above pre-pandemic levels: 5% above the December 2019 level. The IMF’s October projections point, on average, to a 9% increase in commodity prices: 4% in agri-food products, 3% in base metals and 16% in energy products. In the context of Latin America and the Caribbean, the decline in commodity prices translated into lower export prices, especially in hydrocarbon exporting countries (-19%); agro-industrial and mining exporters faced a milder decline (-3%). Export volumes contracted in all subgroups, as the international crisis reduced external demand.

WORLD GDP WILL GROW BY

4,2 %

THE WTO REPORTS THAT IMPORTS OF ALL LATIN AMERICAN COUNTRIES FELL BY DOUBLE DIGITS (-26.6%) IN MOST OF THEM IN 2020.

IN 2022, ACCORDING TO THE IMF.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

YEAR-ON-YEAR RATE OF CHANGE IN WORLD TRADE VOLUME (PERCENTAGES, BASED ON A SEASONALLY ADJUSTED INDEX) A.World 20 Projection WTO 2020: -9,2 2021: +7,2

13.9

15 8.9

10 7.1

6.0

4.7

4.9 1.4

0.8

2.3

2.8

1.9

3.5

1.0

0 -0.5 -5 -7.2

-10

Jan a sep 2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

-12,8 2005

-15

B. Selected regions and countries 15 10 5 0 -5 -10 -15 -20 -25 -30 -35

Ene

Feb

MarA

May

Jun

JulA

Eastern Europe and the Commonwealth of Independent States Africa and the Middle East Eurozone World United States Japan Latin America Emerging economies of Asia (excluding China) China

2020

Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of Netherlands Bureau of Economic Policy Analysis (CPB), World Trade Monitor [online database] https://www.cpb.nl/en/worldtrademonitor. - World Trade Organization (WTO), https://www.wto.org/spanish/news_s/pres20_s/pr862_s.htm.

88 52

As for the Central American and Caribbean countries, excluding Trinidad and Tobago, the terms of trade would improve (by 5% and 3.4%, respectively) as a result of the large weight of energy in their import basket. Remittances, which are a key component of the balance of transfers, have had a heterogeneous behavior among the countries. In Mexico, the main remittancereceiving economy (accounting for more than a third up to August 2020 compared to the same period of the previous year. They have also increased in Jamaica (18%), the Dominican Republic (11%), Nicaragua (9%), Guatemala (4%) and El Salvador (1%). On the contrary, in other countries remittances have decreased so far this year: this is the case of Bolivia (-2 %), Peru (-22%), Paraguay (-16%), Costa Rica (-10%), Ecuador (-10%), Honduras (-2%) and Colombia (-1%). In the meantime, according to Balance of the Economy of Latin America and the Caribbean developed by ECLAC in 2020 it is argued, “Despite the fall

sovereign risk has tended to decrease and stabilize thanks to the strong improvements registered in September in Argentina and Ecuador. As measured by the Emerging Markets Bond Index Global (EMBIG), it reached 467 basis points at the end of October, well below the 702 basis points it closed at in April, but still above the 346 basis points it recorded at the close of 2019. Debt issuance in international higher than in the same period last year. Sovereign bonds accounted for 40% of the total issued through October, followed by the private corporate sector (27% of the total) and quasi-sovereign bonds (20%).

BOND YIELDS IN SOUTHERN COUNTRIES Argentina 7Y 46,144 (0,000 (0,00%)) 43.300 - 43.300

50000

Chile 10Y 4,380 (+0,000 (+0,00%)) 116.323 - 116.323 Colombia 10Y 6,990 (+0,000 (+0,00%)) 104.525 - 105.005

40000 30000

GDP in 2019) due to the strong contraction of imports. These present the worst performance since

20000

terms is expected. The value of the region’s exports would contract by 13%: export prices would fall by 7% and export volumes by 6%”.

10000

-10000

Expiration date

Annual variation

Mexico 10Y 6,994 (+0,179 (+2,64%)) 107.287 - 107.401 Peru 10Y 5,407 (+0,000 (+0,00%)) 111.680 - 111.871

Source: Data taken from Investing. Own graph.

Another important aspect in the Latin American ecopared by ECLAC shows that, in the third quarter of recovery path, which coincides with the evolution of bond issues of the region’s countries in internatio-

and to accumulate reserves. On the other hand, after the increase experienced at the beginning of the COVID-19 crisis, the region’s

GDP evolution in Latin America It is then that economic growth, in the economies of of -7.7% of GDP year-on-year, compared to close to zero growth in the same period of the previous year. The economies of Central America went from 3.2% contraction in the same period of 2020. In the case of Central America and Mexico, the drop in growth in tage points lower than in the same period of 2019.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Future outlook From another perspective, g rowth projections for Latin A merican and Caribbean economies i n 2021 are positive ( subject to change due to the current situation). A r egional average g rowth rate o f 3.7% is e stimated. I ndeed, 3 .1 points o f the projected growth rate f or the r egion in 2021 corresponds to statistical carryover, which means that 3 .7% would make it possible to recover 44% of the GDP loss recorded in 2020.

The analysis presented by ECLAC at the country level indicates that Chile and Brazil are the most indebted economies i n the region ( 263% and 229% of GDP for the third quarter of 2020, respectively). This is why l iquidity expansion policies have manacial corporate sector. The i nterest rate differential for the corporate sector has narrowed substantially since the onset of the pandemic for high yield and investment grade bonds.

In the Economic Survey of Latin America and the Caribbean, 2020, ECLAC p rojects a scenario in which the r egion r ebounds i n 2021 a nd then r eturns to its average g rowth trajectory o f the l ast decade of 1.8%. In this scenario, recovery to the 2019 GDP level would be achieved in 2024.

Similarly, the W orld Bank’s Global Economic P rospects report argues for a more optimistic scenario: “Regional economic activity is expected to grow by 3.7% in 2021, as pandemic mitigation”.

ANNUAL RATES OF CHANGE AT CONSTANT PRICES (2010) TOTAL GDP GDP PER CAPITA 10

Rate of change GDP

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

-5

1990

Per capita variation rate

Source: Economic Commission for Latin America and the Caribbean (ECLAC).

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

INFLATION EXPECTATIONS 2021 9 8 7

Growth

6 5 4 3 2 1

ECLAC estimated in 2020 that year-on-year (DecemAmerica and Dominican Republic) countries stood at 2.3%, 0.4 percentage points below that recorded in 2019 (2.7%). This slowdown was the result of a signithe supply effects related to the temporary closure of economic activities.

ay ru gu U

Pe ru

gu ay

ic ex

al a M

2020 and 2021

te m

az Br

ply in 2020, driven by an increase in the current account surplus, by the increase in the goods surplus as a result of a sharp contraction in imports, its decline outpacing that of exports, so the goods account surplus increased in 2020.

Brazil, Paraguay and Uruguay recorded a drop in in-

ECLAC estimates that the economies of the CARD countries will have an average growth of 4.2% in 2021, to the extent that global economic activity recovers and the internal dynamics of consumption and investment are reestablished.

In the case of expectations for 2021, the August 2020 surveys indicate that the simple average of growth expectations increased 0.1 percentage points from creased 0.1 percentage points from 3.8% to 3.7% with respect to the July surveys. The countries where growth expectations for 2021 increased were Brazil,

G ua

In terms of trade, for 2021, the WTO expects a rebound in trade volume with a growth of 7.2 %, in line with the expected rebound in global economic activity. In this regard, there is the possibility of a somewhat better performance than predicted in the event that vaccines or treatments for COVID-19 could be distributed more quickly.

and growth expectations are heterogeneous among the countries analyzed.

In Central America, growth is expected to recover to 3.6% this year, supported by higher remittance construction after two hurricanes. In the Caribbean, growth is expected to rebound to 4.5%, driven by a partial recovery in tourism.

recovery

The August 2020 expectations surveys conducted by the region’s Central Banks indicate that the simple average of growth expectations for 2020 decreased 0.1 percentage points from -5.9% to -6.0% and sed 0.1 percentage points from 3.1% to 3.2% with

Ch ile

Projected investment

Source: Base information - Report ìDisclosure of Expectations in Latin Americaî of the Inte r-American Development Bank (IDB). Own calculations and graph.

In the case of expectations for 2021, this year’s May surveys indicate that the simple average of growth expectations increased by 0.2 percentage points, from 3.4% tions increased by 0.1 percentage points, from 4.0% to 4.1%, with respect to the April surveys. The only country where growth expectations decreased was Uruguay.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

TRADE BALANCE OF THE MEXICO AND CENTRAL AMERICA % contraction of GDP 2020* -3,15%

Mexico

Honduras -8,6%

Dominican Republic

-1,8%

-6,7%

Guatemala

-8,6% -17,9%

El Salvador

-4,8%

Panama

Costa Rica Source: Cepal

TRADE BALANCE 2020* Mexico -3,15%

Costa Rica -4,8%

El Salvador -8,6%

Guatemala -1,8%

Panama -17,9%

Honduras 9,0%

Dominican Republic -6,7%

In US Dollars. *Estimate by ECLAC * Note: lasted available data (2019). REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Mexico, Central America and the Caribbean

Mexico The Mexican economy will plummet by -10.2% in 2020, according to the results of the survey conducted in August 2020 by the Bank of Mexico among 36 specialists from the private and foreign sectors, coinciding with ECLAC’s estimates of a -9.0% decrease, the largest contraction of the country’s economic activity since 1932.

MEXICO: GDP AND UNEMPLOYMENT, 2018-2020 6

4 2

0 -2

-4 -6

-8 -10

-12

ECLAC estimated that inflation in 2020 would be 3.5%, due to the increase in the price of agricultural products, medical supplies, medicines, gasoline and public services, as well as the exchange rate depreciation. For its part, the unemployment rate would be at 5.1%, with a loss, between January and October 2020, of 518,609 formal jobs registered in the Mexican Social Security Institute (IMSS), compared to 2019.

-14

-16 -18 -20

T2 T3 2018

T2 T3 20192

T2 020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

From January to October 2020, the values of total merchandise exports and imports fell 12.6% and 18.8%, respectively, although the Organization for Economic Cooperation and Development (OECD) notes that exports have revived, driven by the rebound in the US.

IMPORTS TO MEXICO OF AIRFREIGHT CARGO

ECLAC forecasts a 3.8% growth in Mexico’s GDP for 2021. For its part, the OECD forecasts GDP growth at 3.6%. The Bank of Mexico made the projection for 2022, from 3.3% to 3%. Regarding consumer confidence, according to seasonally adjusted figures from the National Institute of Statistics and Geography (Inegi), the Consumer Confidence Indicator (ICC) advanced 11.5 points in its annual comparison, reaching a level of 42.7 points. In the case of investment, Mexico’s attraction to capital flows has been maintained, with US$11.864 trillion in net FDI inflows in the first quarter of 2021, an increase of 14.8% and the highest amount for a first quarter.

39,2% CHINA

7,4% FRANCE

17,4% USA

6,4% TAIWAN

8,5% GERMANY

5,3% MALAYSIA

AS OF AUGUST 2021

Source: Descartes Datamyne - Inegi.

15,80% OTHERS

Costa Rica By 2020, the Costa Rican economy had a contraction of -4.8% of GDP due to the imposition of physical distancing measures and mobility restrictions due to the pandemic, and the fall in international trade of goods and services, according to ECLAC. This drop was the second largest contraction in economic activity since 1950, after the -7.3% decline recorded in 1982. In this regard, the OECD notes that employment in the country is beginning to recover and the unemployment rate has fallen slightly from 24.4% in July to 23.2% in August. Labor-intensive service sectors, such as hospitality, retail, transportation services, domestic services and construction, are the most affected by the pandemic. The agency forecasts a GDP recovery of 2% by 2021 and a stronger recovery (3.8%) by 2022. For its part, ECLAC estimates a 3.0% growth in 2021. On the other hand, the Central Bank of Costa Rica (BCCR) highlights an improvement in the macroeconomic scenario that is reflected in various indicators for the end of the year and for 2022 forecasts. It also emphasizes that the evolution of the main indicators of the external sector would be conditioned by the recovery of the local economic activity and of the main commercial partners. Consumer confidence was severely affected. However, for 2021, the Central Bank projects a gradual recovery of domestic demand, mainly driven by the vaccination campaign and the possibility of a return to normality. Domestic demand is expected to recover, with a growth of 2.4%, on average, for 2021-2022.

COSTA RICA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -9 -10

2018

T3 20192

24 22 20 18 16 14 12 10 8 4 4 2 0

020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS TO COSTA RICA

47,7% USA

6,2% MEXICO

15,4% CHINA

16,4% OTHERS

14,3% COSTA RICA AS OF AUGUST 2021

Source: Descartes Datamyne - National Customs Service.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

El Salvador In 2020, El Salvador’s GDP contracted by -8.6% (versus a 2.4% expansion in 2019), due to the temporary cessation of economic activity due to the COVID-19 pandemic, according to ECLAC. This would be the third steepest decline in output since 1950, after -11.8% in 1980 and -10.5% in 1981, the years of the beginning of the civil war. The Central Reserve Bank of El Salvador indicated in September 2020 that during the first six months of the year “a contraction of -9.3% of the GDP is reflected, which did not have a greater dimension thanks to the implementation of policies aimed at supporting the income and consumption of households through cash transfers and food packages”. The country also presented a strong increase in unemployment, with the loss of some 60,000 jobs, according to data from the Ministry of Economy, raising to 8.24% the unemployment rate which had been at 6.3%.

EL SALVADOR: GDP AND INFLATION, 2018-2020 3

4 2

0 -2

-4 -6 -8

-10 -12 -14

-1 -2

-16 -18 -20

T2 T3 2018

T2 T3 20192

T2 020

-3

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS TO EL SALVADOR

As for international trade, between January and October 2020, exports amounted to 4.087 billion dollars, with a contraction of 18.8% year-on-year, while accumulated imports amounted to 8.514 billion dollars, representing a year-on-year reduction of 15.7%. ECLAC expects the Salvadoran economy to recover by 3.5 % in 2021, driven by an increase in public and private investment, private consumption and the external sector. Inflation will be close to 1%. According to Ipsos, a global market research company, on the Consumer Confidence Index (ICC), “El Salvador registered an important improvement of +18.0 points, reaching 57.3.

35,2% USA

7,4% MEXICO

13,3% GUATEMALA

4,8% HONDURAS

8,5% CHINA

30,9% MALAYSIA

AS OF DECEMBER 2020.

Source: International Trade Center (ITC)-Central Reserve Bank of El Salvador.

Guatemala ECLAC estimates that in 2020 Guatemala’s GDP will have contracted -2.5%, compared to the 3.8% growth presented in 2019, caused by the confinement measures to face the pandemic, although it estimates a 3.5% rebound by 2021. Significant efforts by the Guatemalan government to offer fiscal stimuli to companies, the creation or increase of social programs aimed at families and the reduction of tax revenues led the country to end 2020 with a deficit of 5.3% of GDP, but an external debt of 31.6%, the lowest in the region. However, inflation stood at 5.46%, almost five tenths above the upper limit of the central bank’s target range (between 3% and 5%). From January to October 2020, the value of total exports of goods decreased at a year-on-year rate of 0.1%, while that of imports fell by 11.1%. Imports of consumer goods decreased by 8% during the first eight months of the year and those of capital goods by 7.2%.

GUATEMALA: GDP AND INFLATION, 2018-2020 6

6 5

1 0

1 T1

T2 T3 2018

T2 T3 2019

T2 2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

On the other hand, regarding the consumer confidence index, for this 2021 Guatemala registered an improvement of +7.6 points, reaching 43.9. In the Investment Index, an improvement of +3.9 points was registered, which allows it to remain in the top third together with El Salvador (61.6), the United States (50.2) and Puerto Rico (49.2).

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Panama Despite the fact that the World Bank highlighted in 2019 that “Panama has been one of the fastest growing economies worldwide”, with an average of 5% in the last five years, the pandemic collapsed the positive outlook and ECLAC estimates a contraction of -11.0% for 2020, which represents the setback of a decade for the Panamanian economy.

PANAMA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 3

5 0

-5 1

-10 -15

-20 -1

-25 -30

ECLAC estimates that inflation would again be in negative territory, with a decrease of 1.0% in 2020 and 0.1% in 2019), due to weak demand, while the unemployment rate would exceed 10% at the end of the year compared to 5.8% in 2019. In terms of international trade, between January and August 2020, the value of total exports of goods fell by 23.7% compared to 2019, while imports of goods into the country (excluding the Colon Free Zone) fell by 41.2%.

-2

-35 -40

2018

2019

-3

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS TO PANAMA

The largest contraction corresponds to imports of capital goods (52.7%), although imports of consumer goods and intermediate goods also recorded significant drops in the period (39.1% and 32.4%, respectively). The same agency projects that the Panamanian economy will recover 5.5% in 2021. The Panamanian Consumer Confidence Index (ICCP), in charge of the pollster The Marketing Group, according to last May’s measurement, reached 105 points, 5 units higher than the previous one, of March 2021, informed the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP).

34,8% USA

7,7% ZONA FRANCA DE COLÓN

16,0% PANAMA

6,8% MEXICO

14,3% CHINA

5,5% COSTA RICA

AS OF AUGUST 2021

14,90% OTHERS

Source: Descartes Datamyne - National Customs Authority.

HONDURAS: GDP E INFLATION 2018-2020

Honduras The COVID-19 pandemic significantly affected the economy of Honduras. The country’s GDP was expected to contract by 9 % in 2020 due to the pandemic and the two successive hurricanes. Some 45 % of households, according to World Bank surveys, reported income losses in August.

4 2 2

-2

-4 -6

-8 -10

-12 -14

Projections suggest that the proportion of people living below the $5.50 a day poverty line could rise to 55.4 percent in 2020, resulting in more than 700,000 new poor, while inequality increases slightly. From another angle, Honduras’ economy is expected to rebound in 2021 to 4.5 percent growth, amid the revival of domestic economic activity and the recovery of investment and external demand. Around trade from January to September 2020, exports of Honduran companies amounted to $3,262 million, an amount that exceeds by 0.3% what was reported in the same period of 2019, a rise that is recorded after several drops in sales, which were generated by the health and economic crisis.

-16 -18 -20

2018

2019

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS TO HONDURAS

During the third quarter of 2020, Honduras received 323.5 million dollars of Foreign Direct Investment (FDI), 75.9 percent higher than the same period of 2019. For this 2021, growth is associated with the maquila, agriculture, and construction sectors.

42,7% USA

7,3% GUATEMALA

20,1% CHINA

6,4% EL SALVADOR

9,7% MEXICO

13,8% OTHERS

AS OF AUGUST 2021

Source: Descartes Datamyne - National Institute of Statistics (INE) of Honduras.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Dominican Republic After a negative year-end of -6.7% of its gross domestic product (GDP) in 2020, the economy of the Dominican Republic will reach a growth of 4.8% in 2021 and 4.5% in 2022, well above the projected growth for the region of 3.7% for this year and of most Latin American countries. Until the end of September, the Dominican economy had fallen by around 8%, especially due to the collapse of tourism, the country’s main economic sector. The rest of the sectors have been returning to economic recovery. In the case of foreign trade, total exports of goods as of March 2021 reached some US 2,89 billion, which represented a growth of 7.5% with respect to JanuaryMarch 2020, or an additional US$203.1 million. For 2021 imports show a marked inter-annual growth of 27.4% in the month of March, highlighting non-oil imports with an increase of 19.4%, which is in line with the reactivation of economic activity. In the JanuaryMarch quarter, total imports grew 9.9% compared to the same period of the previous year.

DOMINICAN REP: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 10 8 6 4 2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 -20

8 7 6 5 4 3 2 1 T1

2018

2019

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS TO THE DOMINICAN REPUBLIC

Likewise, foreign investment grew by 4% up to September, totaling US 2,066 billion for the year, and remittances grew by 34%. However, inflation, which accumulated an increase of 3.74%, will maintain the target set by the Central Bank of 4% with a range of one point of oscillation in both directions. Regarding the consumer confidence index, the Dominican Republic registered an improvement of +1.5 points, reaching 35.1. The investment index showed an improvement of +1.2 points.

42,72% USA

3,38% SPAIN

15,54% CHINA

3,46% BRAZIL

3,99% MEXICO

30,91% OTHERS

AS OF DECEMBER 2020.

Source: International Trade Center (ITC)- National Statistics Office, Dominican Republic.

TRADE BALANCE OF THE ANDEAN REGION AND THE SOUTHERN CONE. % contraction of GDP 2020* TRADE BALANCE 2020*

-6,8%

Colombia -9,0%

Ecuador 12,9%

Peru -8,0%

1,6%

Paraguay

Bolivia -5,8%

Uruguay

Bolivia -8,0% Colombia -6,8% Ecuador -9,0% Perú 12,9% Argentina -3,0% Chile -0,6% Paraguay 1,6% Uruguay -5,8% In US Dollars *Estimation by CEPAL

-0,6%

Chile

-3,0%

Argentina Source: IADB and ECLAC

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Andean region

Bolivia Health measures to contain COVID-19 infections led to an economic crisis that caused the Bolivian economy to contract by -8.0% in 2020, with a significant increase in the unemployment rate and moderate inflation of 1.5%, ECLAC revealed. In addition to tax deferrals (representing 1.5% of GDP), measures to address the economic crisis include transfers to different segments of the population (1.7% of GDP), credit to companies and support for employment (1.2% of GDP), as well as discounts on basic services (0.3% of GDP). The outlook for ECLAC shows that “extreme poverty will reach 16.8% this year, with a greater increase in unemployment, causing a significant deterioration in the levels of poverty and inequality”, warned Alicia Bárcena, Executive Secretary of the organization, at the end of 2020.

BOLIVIA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 6

2 -2

-6

-10

2 -14

-18 -20

T2 T3 20182

T3 019

T3 T2 2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS TO BOLIVIA

The National Statistics Institute (INE) reported that, at the end of the third quarter of 2020, the unemployment rate was 10.76%, and although it dropped to 8.39% in the fourth quarter, by January 2021 it would have risen again to 9.67%. However, ECLAC is also optimistic for 2021, forecasting a slight recovery of economic activity, with growth of around 3%, indicating that it will be limited by the “weakness of external demand”. In the first four months of 2021, imports this year reached a value of 2,643 million dollars, an increase of 361 million (16%) over the same period of 2020. 21,7% CHINA

6,3% USA

16,1% BRAZIL

6,9% PERU

11,8% ARGENTINA

37,3% OTHERS

AS OF AUGUST 2021

Source: International Trade Center (ITC) - Pro-Bolivia.

COLOMBIA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

Colombia The Colombian GDP will have decreased -7.0% in 2020, according to ECLAC, added to the strong increase in unemployment and sovereign debt, reaching historic highs, which according to the Ministry of Finance, even reached 65.7% of the GDP, in order to meet the needs due to the coronavirus emergency, leaving Colombia among the “most indebted” countries in the region. However, according to export information processed by DANE and DIAN, in April 2021 the country’s external sales were US$2,914.7 billion FOB and presented an increase of 56.3 % in relation to April 2020; this result was mainly due to the 63.4% growth in external sales of the group of fuels and products of extractive industries.

-2

-4

-6

-8

-10 -12

-14

-16

-18

T2 T3 2018

T2 T3 2019

T2 2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

In the case of imports registered before the DIAN in March 2021, imports were US$4,934.8 million CIF and presented an increase of 37.5% in relation to the same month of 2020. According to the April results of the Consumer Opinion Survey (EOC), the Consumer Confidence Index registered a balance of -34.3%.

AIR CARGO IMPORTS TO COLOMBIA THROUGH

Foreign investment in Colombia grew 66% in the first quarter of 2021. According to the entity, between January and March 2021, Colombia received 33 new projects with estimated business for 1,595 million dollars, while last year in the same period it was 960 million dollars. Both the IMF and ECLAC are optimistic about the recovery for 2021, expecting GDP to rebound to 3.7% and 5.0% respectively.

29,3% CHINA

8,6% GERMANY

28% USA

6,5% VIETNAM

10,2% FRANCE

17,4% OTHERS

AS OF AUGUST 2021

Source: Descartes Datamyne – DIAN.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Ecuador ECLAC estimates a sharp contraction of the Ecuadorian GDP of -9.0% in 2020, in an economy that had already been showing weak growth in 2019, of only 0.1%, partly as a consequence of the social uprising of October of that year, which left losses of USD 2.8 billion according to the unions, although the Central Bank of Ecuador indicated that this figure would be around USD 821 million.

ECUADOR: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 5

-1 -3

-5

-7 -9

-11

-1

-13

The Central Bank of Ecuador estimates that by 2021 the economy will recover and grow 3.1%, equivalent to a Gross Domestic Product (GDP) of US$ 67,539 billion in constant values. Regarding foreign trade, for 2021, non-oil exports are projected to grow between 4% and 5 %. On the other hand, imports of goods and services would grow by 3.2% compared to 2020, a percentage that corresponds to USD 936.6 million.

-15

2018

2019

-2

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS TO ECUADOR

Regarding the ICC, the outlook is not so encouraging, since it worsened compared to the same month of 2020: it went from 37.10 points to 31.19 points. On the other hand, the labor market continued to deteriorate between September 2019 and September 2020, with an increase of 28% in unemployment and 11.6 % in underemployment in 2020. Among Latin American countries, ECLAC maintains a very moderate growth forecast for 2021, only 1%.

34,6% CHINA

6,2% JAPAN

29,3% USA

4,4% BRAZIL

7,9% COLOMBIA

5% SPAIN

AS OF AUGUST 2021

11,6% OTHERS

Source: Descartes Datamyne - National Customs Service.

Peru

PERU: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

With a GDP contraction of 12.9%, the Peruvian economy is one of the hardest hit in the world by COVID-19, with a severe production shutdown that led to strict confinement, which lasted several months.

4 1 -2

-5 -8

The reason for this sharp drop is due to “the abrupt economic slowdown in the United States and China, which has disrupted supply chains in Mexico and Brazil, leading to a sharp drop in exports from commodity-producing economies such as Chile and Peru,” the World Bank stressed in a statement at the end of 2020.

-11 -14

-17 -20 -23

-26 -29 -32

2018

2019

2020

GDP, VARIATION RATE OVER 4 QUARTERS.

Peru would be one of the Latin American countries that would be “worst off” after the pandemic, suffering a sharp increase in poverty (9.3%), along with Argentina, Ecuador and Panama. Inflation, meanwhile, remained under control at 2.1%, within the target, despite the depreciation of the sol throughout the year.

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

AIRFREIGHT IMPORTS TO PERU

On the other hand, although credit to companies strengthened, mainly for payments to suppliers, employees and other debts, consumer credit contracted, hit by the marked deterioration of the labor market, which reached 17.1% in the third quarter of the year. ECLAC estimates a rebound of 9.0% of GDP by 2021, although it emphasizes that “this dynamism will be insufficient to recover pre-crisis GDP and production levels” and recovery will take even more time.

32,7% USA

6,6% BRAZIL

26,3% CHINA

5,6% ITALY

9,2% GERMANY

19,6% OTHERS

AS OF AUGUST 2021

Source: Descartes Datamyne - Sunat.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Southern Cone

Argentina The Argentine economy had been in recession since before the arrival of COVID-19, with a fall in GDP of -3%, aggravated by the pandemic, leading to a contraction of -11.8% by 2020, according to ECLAC, and although both this organization and the OECD anticipate a moderate recovery of between 3.7% and 4.9% between 2021 and 2022. Despite the above, there were negative effects on private consumption (-14.5%), exports (-8.7%) and public consumption (-5.5%), although this dynamic was also offset by the -23% drop in imports. For 2021, the Consumer Confidence Index at national level increased 0.3% with respect to April’s record and accumulated a contraction of 7.8% in the inter-annual comparison. On the other hand, inflation reached 43.5% year-onyear in the accumulated to October, compared to the 2019 average (53.5%), associated with the freezing of regulated product prices. Unemployment rose to 13.1% in the second quarter of 2020, although ECLAC expects this indicator to improve in 2021.

ARGENTINA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 6

4 2

50 45

0 -2

40 35

-4 -6 -8

30 25

-10 -12 -14

20 15 10 5

-16 -18 -20

T2 T3 2018

T2 T3 2019

T2 2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

AIRFREIGHT IMPORTS TO ARGENTINA

21,7% CHINA

6,3% USA

16,1% BRAZIL

6,9% PERU

11,8% ARGENTINA

37,3% OTHERS

AS OF JULY 2017 (LATEST AVAILABLE DATA)

Source: International Trade Center (ITC) - National Institute of Statistics and Census.

Chile In 2020, Chile faced one of the worst economic crises in its history since 1982, with a contraction of the economy of -6.0%, which began with the social crisis experienced in the country in the last quarter of 2019 and which worsened due to border closures, quarantines and the suspension of many economic activities to control the advance of COVID-19, leading to a fall in domestic demand, a lower level of production and increased unemployment.

CHILE: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 7 5 3 1 -1 -3 -5 -7 -9 -11 -13

Although initially agencies such as the IMF and ECLAC estimated contractions of -7.9%, as of the fourth quarter an incipient recovery of activity is observed due to the gradual withdrawal of sanitary measures and as an effect of economic measures, allowing a slight recovery at the end of the year, and ECLAC and OECD now estimate a GDP recovery of between 4.2% and 5% for 2021. According to figures from the Foreign Trade Report prepared by the Studies Department of the National Customs Service, between January and April 2021 there were again encouraging figures for foreign trade, with Chile’s trade exchange with the world growing by 25.6% to USD 51,2 billion.

-15

2018

2019

14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

AIRFREIGHT IMPORTS TO CHILE

For this same period, the country’s exports reached USD 28,7 billion, with an increase of 21.4% in relation to the same period of 2020. Imports, meanwhile, totaled USD 24,3 billion, an increase of 32.1%. The Faculty of Economics and Business of the Universidad del Desarrollo (UDD) together with AMCHAM, presented the second version of the Foreign Direct Investment Confidence Index in Chile, with the participation of 190 companies from different countries of origin and economic sectors, equivalent to 55% of the foreign direct investment that arrives in the country.

44,7% CHINA

7,1% GERMANY

24,6% USA

16,3% OTHERS

7,3% VIETNAM AS OF AUGUST 2021

Source: Descartes Datamyne - Servicio Nacional de Aduanas.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Paraguay The Paraguayan economy will end 2020 with a contraction of -1.6%, thanks to a decisive fiscal policy response to contain the COVID-19 pandemic, although this will result in a deterioration of the central administration’s fiscal deficit of 6.5% of GDP, ECLAC indicated. The Central Bank of Paraguay (BCP) indicated that the GDP contraction was only 0.6%.

PARAGUAY: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 10

-2

-4

-6

1 0

-8

Economic activity contracted by -0.9 % during the first half of 2020, due to the impact of the sanitary measures to face the crisis. This dynamism leads ECLAC to estimate a 3.5% growth in Paraguay’s GDP for 2021, which will result in a slight rise in inflation, which will remain within the government’s target range. In the same year, foreign trade operations recorded positive data, according to the Central Bank of Paraguay (BCP). Total exports as of April 2021 reached a value of US $4,2 billion, 16.4% higher than the US $3,6 billion as of April 2020.

2018

2019

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

AIR CARGO IMPORTS TO PARAGUAY

On the side of imports up to February 2021 they had reached US $1,697.8 million, 12.7% lower compared to the same period of the previous year. According to the Central Bank of Paraguay, Foreign Direct Investment (FDI) grew by 8.9% during 2020, a positive figure considering the context of the global health crisis and the consequent economic and commercial stagnation generated at international level.

21,6% BRAZIL

19,3% USA

18,6% ARGENTINA

3,4% CHILE

15,8% CHINA

21,3% OTHERS

AS PF DECEMBER 2020

Source: International Trade Center (ITC) - Central Bank of Paraguay.

Uruguay Although the Uruguayan country did not have a contraction in its GDP as strongly as other countries in the region, ECLAC estimated that there was a decrease of -4.5% in 2020 and projects a recovery of 4.3% for 2021.

AIR CARGO IMPORTS TO URUGUAY

Foreign trade was one of the main factors driving the recovery of the Uruguayan economy during the last quarter of 2020, a trend that would continue in the first quarter of 2021, added to the fact that during the second quarter of 2020 the construction of the country’s third pulp mill began, “so it is possible that private investment, very depressed in the last six years, will become active again”, ECLAC predicted. However, the unemployment indicator had been increasing since the months prior to the pandemic, and as of September it stood at 11%, two points higher than in the same month of 2019. In the first quarter of 2021, exports totaled US $2,1 billion, which implies an increase of 19.3% over what was exported in the first quarter of 2020.

39,7% CHINA

4,6% VIETNAM

21,8% USA

4% ITALY

12,5% GERMANY

17,4% OTHERS

A AGOSTO 2021

Source: Descartes Datamyne - National Customs Service.

The Consumer Confidence Index (CCI) for the month of May 2021, prepared based on surveys in Uruguay, shows an increase of 1.6 points. With a score of 49.7 in May, although the index still remains at the moderate pessimism level, it is very close to the limit of moderate optimism (from 50 points). Compared to May 2020, the index is 4.1 points higher.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022

Index of references Sources Cited: Andean Development Corporation. Analysis of airport investments in Latin America and the Caribbean to horizon 2040. Final Report - Airport Sector. 2016. Suárez Alemán, Ancor; Astesiano, Gastón; Ponce de León, Óscar. Profile of public-private partnerships in airports in Latin America and the Caribbean: main figures and trends in the sector. Inter-American Development Bank. Monograph. 2020. IATA. Fewer losses for the airline industry, but the impact of the crisis continues in 2021. Restart plans, employment support, and costs: immediate priorities. Press release. April 21, 2021. Infralatam. Data on public investment in economic infrastructure in Latin America and the Caribbean. infralatam.info. Database download in August 2021. Development Bank of Latin America. Effects of COVID-19 on public-private partnership projects. 2020. ECLAC. Facilitation, trade, and logistics in Latin America and the Caribbean. ECLAC. Number 2. 2019. Government of Mexico. Inflation in 2020 was 3.15%. Retrieved from www.gob.mx. January 2021. Central Reserve Bank of El Salvador. Exports of goods from El Salvador totaled $5,030.1 million in 2020. Retrieved from www.bcr.gob.sv. January 2021. Inter-American Development Bank (IDB), “Disclosure of Expectations in Latin America,” June 2020. Inter-American Development Bank (IDB), “Latin America Overcomes Trade Impact of Pandemic,” Press release, June 3, 2021. World Bank (WB), “World Economic Outlook: Latin America and the Caribbean,” January 2021. Economic Commission for Latin America and the Caribbean (ECLAC), “Preliminary Overview of the Economies of Latin America and the Caribbean, 2020” (LC/PUB.2020/17-P/Rev.1), Santiago, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), “Preliminary Overview of the Economies of Central America and the Caribbean de las economías de Centroamérica y la República Dominicana en 2020 y perspectivas para 2021: febrero de 2021 (LC/MEX/TS.2021/2), Mexico City, 2021. International Monetary Fund (IMF), “WORLD ECONOMIC OUTLOOK: MANAGING DIVERGING RECOVERIES,” April 2021.

Organization for Economic Co-operation and Development (OECD), “Jobs must be at the center of the recovery to avoid serious fallout in the economy and society, says OECD,” Press release, July 7, 2021. World Trade Organization (WTO), “Trade plummets as COVID-19 pandemic disrupts global economy,” Press release, April 8, 2020. World Trade Organization (WTO), “Trade shows signs of reviving after COVID-19 effects, but recovery remains uncertain,” Press release, October 6, 2020. Portfolio, “Capital flows continue to return to the region,” Press release, November 5, 2020.

Databases: International Trade Center (ITC). With information from UN Comtrade (United Nations Trade Statistics Database) and official sources: • Argentina: UN Comtrade. • El Salvador: Central Reserve Bank. • Guatemala: Central Bank of Guatemala. • Rep. Dominicana: UN Comtrade. Descartes Datamyne. With information from official sources and partner countries: • Chile: National Customs Service. • Colombia: Dirección de Impuestos y Aduanas Nacionales (Dian). • Costa Rica: National Customs Service. • Ecuador: National Customs Service. • Honduras: General Directorate of Customs Franchise Control. • Mexico: National Institute of Statistics and Geography of Mexico (Inegi). • Panama: National Customs Authority. • Peru: National Superintendence of Customs and Tax Administration (Sunat). • Uruguay: General Directorate of Customs.

REPORT ON AIRPORT OPERATORS IN LATIN AMERICA • REPORT 2021 - 2022