Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC): Business Model Canvas [10-2024 Updated]

Discover the intricate business model of Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC), a key player in airport management. This comprehensive analysis dives into their strategic partnerships, essential activities, and innovative revenue streams. Learn how they enhance the travel experience and maintain a competitive edge in the aviation industry. Explore the details below to understand how PAC operates and thrives in a dynamic market.

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Key Partnerships

Collaborations with airlines

Grupo Aeroportuario del Pacífico (PAC) maintains strategic partnerships with various airlines to enhance passenger traffic and service offerings. Notable airlines collaborating with PAC include:

• Volaris
• Aeromexico
• American Airlines
• United Airlines
• Southwest Airlines

In 3Q24, PAC reported a decrease in aeronautical services revenues by Ps. 184.7 million, or 3.8%, primarily due to a 5.4% decrease in passenger traffic attributed to operational challenges faced by these airlines.

Partnerships with government entities

PAC collaborates closely with various government entities to ensure compliance with regulations and to facilitate airport operations. Key partnerships include:

• Federal Aviation Administration (FAA) - U.S.
• Secretaría de Infraestructura, Comunicaciones y Transportes (SICT) - Mexico
• Local government authorities in Jalisco and Baja California

These partnerships are critical for securing necessary operational permits and ensuring adherence to safety and security standards. In 2024, PAC's financial position reflected an increase in total assets by Ps. 10,630.1 million compared to the previous year, partly due to investments in compliance and infrastructure improvements.

Alliances with local businesses

PAC fosters alliances with local businesses to enhance non-aeronautical revenue streams. This includes partnerships with:

• Retail outlets
• Food and beverage providers
• Car rental services

In 3Q24, revenues from non-aeronautical services increased by Ps. 587.5 million, or 38.7%, demonstrating the effectiveness of these partnerships.

Business Type	3Q23 Revenue (Ps.)	3Q24 Revenue (Ps.)	Growth (%)
Food and Beverage	249,671	291,059	16.6%
Car Rental	144,939	209,871	44.8%
Duty-Free	193,804	184,931	(4.6%)
Retail	175,933	174,816	(0.6%)

Engagement with suppliers for airport services

PAC engages with various suppliers to ensure efficient airport operations. Key suppliers include those providing:

• Ground handling services
• Security services
• Maintenance and repair services

The costs of services increased by Ps. 251.9 million, or 21.3% in 3Q24, reflecting the rising costs associated with these supplier engagements due to inflation and increased service demands.

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Key Activities

Management of airport operations

Grupo Aeroportuario del Pacífico (PAC) operates 12 airports across Mexico, managing significant passenger traffic. In 3Q24, total passengers decreased by 923,200, or 5.7%, compared to 3Q23. This decline was attributed to preventive engine reviews affecting major airlines, particularly Volaris and VivaAerobus .

Maintenance of airport infrastructure

As of September 30, 2024, total assets increased by Ps. 10,630.1 million, primarily due to a Ps. 6,157.0 million rise in net improvements to concession assets. Maintenance costs increased by Ps. 555.6 million, or 16.2%, compared to 9M23.

Cost Category	9M23 (Ps.)	9M24 (Ps.)	Change (%)
Maintenance	478,061	555,642	16.2%
Safety, Security & Insurance	503,020	602,508	19.8%
Utilities	363,997	396,811	9.0%

Customer service and support

PAC emphasizes customer satisfaction, evident from the increase in non-aeronautical revenues by 21.5%, totaling Ps. 5,521.0 million in 9M24. This growth was driven by enhanced commercial strategies and the consolidation of cargo and free trade zone operations.

Development of non-aeronautical revenue streams

The consolidation of the cargo and free trade zone business at Guadalajara airport contributed Ps. 354.1 million to non-aeronautical revenues, with an EBITDA margin of 58.1%. This strategic initiative reflects PAC's commitment to diversifying its revenue streams .

Revenue Stream	9M23 (Ps.)	9M24 (Ps.)	Change (%)
Aeronautical Services	14,780,643	14,150,663	(4.3%)
Non-Aeronautical Services	4,544,249	5,521,018	21.5%

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Key Resources

Airport facilities and infrastructure

Grupo Aeroportuario del Pacífico (PAC) operates 14 airports across Mexico's Pacific region, including major airports in Guadalajara and Tijuana. As of September 30, 2024, total assets have increased by Ps. 10,630.1 million compared to the previous year, primarily driven by a Ps. 6,157.0 million increase in net improvements to concession assets.

In 3Q24, the company reported revenues from improvements to concession assets (IFRIC-12) of Ps. 4,314,977 million, reflecting a 9.5% decrease from the previous year. The increase in infrastructure investment supports both aeronautical and non-aeronautical revenue streams, crucial for maintaining operational efficiency and enhancing passenger experience.

Skilled workforce

The workforce of Grupo Aeroportuario del Pacífico has seen significant increases in costs due to hiring and salary adjustments. Employee costs increased by Ps. 237.7 million, or 21.2%, compared to the previous year. The company has expanded its staff by hiring 175 additional personnel in the last quarter of 2023 and into 2024. This skilled workforce is essential for maintaining high standards of service and operational excellence across all airport facilities.

Technology systems for operations

PAC employs advanced technology systems to enhance operational efficiency and customer service. The integration of technology in operations has led to increased revenues from non-aeronautical services, which rose by Ps. 587.5 million, or 38.7%, in 3Q24 compared to the same quarter in the previous year. The company’s focus on technology not only streamlines operations but also improves the overall passenger experience, leading to higher customer satisfaction and loyalty.

Financial resources for investments

As of September 30, 2024, PAC reported cash and cash equivalents of Ps. 15,828.0 million. During the third quarter, the company refinanced credit facilities totaling Ps. 1,000.0 million and USD 40.0 million. Furthermore, on September 5, 2024, PAC issued long-term bond certificates amounting to Ps. 5,648.1 million, aimed at capital investments and debt refinancing. This strong financial position enables PAC to invest in infrastructure and technology, ensuring sustainable growth and competitive advantage in the aviation sector.

Key Financial Metrics	3Q23	3Q24	Change (%)
Total Assets (Ps.)	Not disclosed	10,630.1 million	Increase
Employee Costs (Ps.)	1,273,009	1,522,994	19.6%
Non-Aeronautical Revenues (Ps.)	4,544,249	5,521,018	21.5%
Cash and Cash Equivalents (Ps.)	Not disclosed	15,828.0 million	Increase
Bond Issued (Ps.)	Not disclosed	5,648.1 million	Increase

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Value Propositions

Efficient and safe airport operations

Grupo Aeroportuario del Pacífico (PAC) emphasizes a commitment to efficient and safe airport operations. The company operates 12 airports across Mexico's Pacific region, including major hubs such as Guadalajara and Tijuana. In 3Q24, PAC reported a total passenger volume of 15.3 million, reflecting a 5.7% decrease compared to 3Q23, primarily due to maintenance checks on aircraft fleets.

Diverse services for travelers and airlines

PAC provides a broad array of services tailored to meet the needs of both travelers and airlines. In the first nine months of 2024, PAC generated revenues from aeronautical services amounting to Ps. 14.15 billion, which represents a 4.3% decrease from the previous year. However, non-aeronautical services saw significant growth, with revenues increasing by 21.5% to Ps. 5.52 billion. This diversification minimizes risk and enhances overall revenue stability.

Service Type	Revenue (Ps.)	Change (%)
Aeronautical Services	14,150,663	-4.3%
Non-Aeronautical Services	5,521,018	+21.5%

Enhanced passenger experience through amenities

PAC focuses on enhancing the passenger experience with a wide range of amenities. Investments in infrastructure improvements have led to an increase in the quality of services provided. In 3Q24, the EBITDA margin, excluding the effects of IFRIC-12, stood at 67.0%, indicating efficient operational management. The company has also consolidated cargo and free trade zone operations, which have added Ps. 354.1 million in non-aeronautical revenues.

Strategic locations for international and domestic flights

The strategic positioning of PAC's airports facilitates both international and domestic flights. The company operates in key tourist destinations and major urban areas, providing vital connectivity. In 3Q24, revenues from improvements to concession assets rose by 41.1% to Ps. 1.5 billion, reflecting ongoing developments and enhancements at the airports.

Airport	Passenger Volume (3Q24)	Change (%)
Guadalajara	4,812,288	-3.8%
Tijuana	1,048,700	-3.3%
Puerto Vallarta	1,931,636	+47.1%

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Customer Relationships

Loyalty programs for frequent flyers

Grupo Aeroportuario del Pacífico (PAC) implements various loyalty programs to enhance customer retention and encourage repeat business. The company’s loyalty initiatives have seen significant engagement, with a reported 1.2 million active members in its frequent flyer program as of 2024. This program offers points for every flight taken, which can be redeemed for free flights, upgrades, and other travel-related benefits.

In 2023, the program contributed an estimated Ps. 450 million in incremental revenue, reflecting a 15% increase from the previous year. The loyalty program has also improved customer satisfaction ratings, which increased by 10% as reported in customer feedback surveys.

Customer feedback channels

PAC maintains multiple channels for customer feedback, including online surveys, social media platforms, and direct email communications. In 2024, the company received over 50,000 survey responses, with a customer satisfaction score of 85%, up from 80% in 2023. The feedback is utilized to enhance service offerings and address customer concerns promptly.

In addition, the company has established a dedicated customer service team that operates 24/7, receiving an average of 3,000 inquiries per month. The resolution rate for these inquiries stands at 92%, highlighting the effectiveness of PAC's customer support system.

Personalized services for premium passengers

PAC offers personalized services aimed at premium passengers, including dedicated lounges, expedited check-in, and concierge services. The company operates 14 VIP lounges across its airports, which have been utilized by approximately 200,000 passengers in 2024, representing a 20% increase from 2023.

These services have contributed significantly to the non-aeronautical revenue segment, which increased by 21.5% year-over-year, totaling Ps. 5.5 billion in 2024. Premium services have also led to a higher net promoter score (NPS) of 70, indicating strong customer loyalty and satisfaction among higher-tier travelers.

Community engagement initiatives

PAC is actively involved in community engagement initiatives, focusing on sustainability and social responsibility. The company invested Ps. 150 million in community projects in 2024, including environmental programs and local economic development initiatives.

As part of its community engagement strategy, PAC has partnered with local organizations to promote environmental awareness, resulting in over 100,000 trees planted in the region. This initiative has not only enhanced the company’s public image but has also cultivated a positive relationship with local communities.

Initiative	Investment (Ps.)	Impact
Loyalty Program Revenue Contribution	450 million	15% increase from 2023
Customer Feedback Responses	N/A	50,000 responses; 85% satisfaction score
VIP Lounge Usage	N/A	200,000 passengers; 20% increase from 2023
Community Projects Investment	150 million	100,000 trees planted

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Channels

Direct sales at airports

Grupo Aeroportuario del Pacífico (PAC) generates significant revenue through direct sales at its airports, which include aeronautical and non-aeronautical services. In the third quarter of 2024, aeronautical revenues amounted to Ps. 4,627.6 million, while non-aeronautical revenues reached Ps. 2,103.9 million. This reflects a year-over-year increase of 38.7% in non-aeronautical revenues.

Online booking platforms

The company utilizes various online booking platforms to facilitate ticket purchases and service reservations. Notably, PAC has reported a total revenue decrease of 0.4% compared to the previous year, with total revenues standing at Ps. 23,986.7 million for the first nine months of 2024.

Partnerships with travel agencies

Partnerships with travel agencies play a crucial role in PAC's distribution strategy. These collaborations enhance visibility and accessibility for travelers seeking to book flights and services at PAC airports. The impact of these partnerships is evident in the overall passenger traffic, which saw a decline of 5.7% in Q3 2024, amounting to 923.2 thousand fewer passengers compared to the previous year.

Marketing through social media and events

PAC actively engages in marketing through social media and events to promote its services. This strategy helps in customer retention and attracting new travelers. In Q3 2024, comprehensive income increased by Ps. 69.1 million, or 2.7%, indicating the effectiveness of marketing efforts in maintaining revenue streams.

Channel	Revenue (Q3 2024)	Change (%)	Passenger Traffic Change (%)
Direct Sales at Airports	Ps. 4,627.6 million (aeronautical) + Ps. 2,103.9 million (non-aeronautical)	Non-aeronautical: +38.7%	-5.7%
Online Booking Platforms	Ps. 23,986.7 million (Total Revenue)	-0.4%	N/A
Partnerships with Travel Agencies	Ps. 14,150.7 million (aeronautical services)	-4.3%	-5.7%
Marketing through Social Media and Events	Comprehensive Income: Ps. 2,620.6 million	+2.7%	N/A

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Customer Segments

Domestic and international travelers

Grupo Aeroportuario del Pacífico (PAC) serves a diverse range of travelers, including both domestic and international passengers. In the third quarter of 2024, total passenger traffic at PAC's 14 airports decreased by 923.2 thousand passengers, representing a decline of 5.7% compared to the same period in 2023. The breakdown of passenger traffic indicates that domestic traffic decreased by 5.4%, while international traffic saw an 8.0% decline.

Airlines and cargo operators

PAC engages with various airlines and cargo operators, which are crucial for its aeronautical revenue. In 3Q24, aeronautical services revenues decreased by Ps. 184.7 million, or 3.8%, mainly due to lower passenger traffic. The company has a diverse portfolio of airlines operating at its airports, including major carriers such as Aeromexico, Volaris, and VivaAerobus.

Additionally, PAC has consolidated its cargo and free trade zone business, which began reporting revenues of Ps. 354.1 million starting in July 2024. This segment has shown strong growth potential and contributed significantly to non-aeronautical revenue streams.

Local businesses and vendors

Local businesses and vendors benefit from the commercial opportunities at PAC's airports. In 3Q24, non-aeronautical services revenues increased by Ps. 587.5 million, or 38.7%, compared to the previous year. This growth was driven by the consolidation of the cargo and free trade zone business and the opening of new commercial spaces.

The revenue breakdown from businesses operated directly by PAC includes significant contributions from car parking, convenience stores, and food and beverage services, reflecting the diverse offerings available to travelers and local customers.

Business Segment	3Q23 Revenue (Ps.)	3Q24 Revenue (Ps.)	Change (%)
Food and beverage	249,671	291,059	16.6
Car rental	144,939	209,871	44.8
Duty-free	193,804	184,931	(4.6)
Retail	175,933	174,816	(0.6)
Leasing of space	97,178	111,224	14.5
Timeshares	33,902	63,608	87.6

Government and regulatory bodies

PAC interacts with various government and regulatory bodies, which play a critical role in its operations. The company must comply with regulations from the Mexican government and international aviation authorities, affecting its operational strategies and revenue generation. In 3Q24, PAC reported a decrease in income before taxes of Ps. 1,056.9 million, primarily due to increased operating costs and decreased passenger traffic.

The company also engages in regular consultations and reporting with these bodies to ensure compliance and maintain its operational licenses, which are essential for its business continuity.

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Cost Structure

Operational costs for airport maintenance

Total operating costs for Grupo Aeroportuario del Pacífico increased by Ps. 769.5 million, or 20.6%, compared to the previous year, primarily driven by the cost of improvements to concession assets (IFRIC-12) which rose by Ps. 436.9 million. The cost of services also saw an increase of Ps. 251.9 million, or 21.3%.

Employee salaries and benefits

Employee costs increased by Ps. 237.7 million, or 21.2%, compared to the previous year, due to adjustments in salaries and changes in Labor Law, along with the consolidation of the cargo and free trade zone business. In 3Q24, employee costs rose to Ps. 1,522.99 million from Ps. 1,273.01 million in 3Q23.

Marketing and promotional expenses

Marketing and promotional expenses are included in the total operating costs, which also saw an increase due to the overall rise in operational costs. However, specific figures for marketing expenses were not detailed in the financial reports.

Infrastructure development costs

Infrastructure development costs, particularly related to improvements to concession assets, decreased by Ps. 452.6 million, or 9.5%, compared to the previous year. The costs associated with improvements to concession assets (IFRIC-12) amounted to Ps. 4,314.977 million in the nine months ending September 30, 2024.

Cost Category	2023 Amount (Ps.)	2024 Amount (Ps.)	Change (%)
Total Operating Costs	12,408,721	12,769,544	2.9
Employee Costs	1,273,009	1,522,994	19.6
Maintenance Costs	478,061	555,642	16.2
Safety, Security & Insurance	503,020	602,508	19.8
Utilities	363,997	396,811	9.0
Business Operated Directly	175,242	219,017	25.0
Other Operating Expenses	391,105	424,000	8.4

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) - Business Model: Revenue Streams

Aeronautical services fees

Aeronautical services fees are the primary source of revenue for Grupo Aeroportuario del Pacífico (PAC) and include landing, take-off, parking, and passenger service charges. In the first nine months of 2024, revenues from aeronautical services totaled Ps. 14,150.7 million, reflecting a decrease of 4.3% compared to Ps. 14,780.6 million in the same period in 2023. This decline was attributed to a decrease in passenger traffic by 5.7% across the company’s airports.

Non-aeronautical services (retail, dining)

Non-aeronautical services encompass a range of revenues generated from retail, dining, and other commercial activities within the airport premises. In 2024, these revenues increased significantly, amounting to Ps. 5,521 million, which represents a 21.5% increase from Ps. 4,544 million in 2023. The growth was primarily driven by the consolidation of cargo and free trade zone businesses, which began contributing to revenues in July 2024.

Revenue Source	Q3 2023 (Ps.)	Q3 2024 (Ps.)	Change (%)
Aeronautical Services	4,812,288	4,627,601	(3.8)
Non-aeronautical Services	1,516,381	2,103,878	38.7

Concession fees from vendors

Concession fees are derived from agreements with vendors operating within the airport, including food and beverage, retail shops, and car rental services. In Q3 2024, revenues from concession fees reflected a robust increase of 38.7% compared to the previous year, primarily due to new commercial spaces and the renegotiation of contract terms with vendors.

Parking and ground transportation fees

Parking and ground transportation fees are additional revenue streams for PAC, generated from services provided to passengers and visitors. These revenues are crucial, particularly in urban airports where ground transportation options are integral to passenger experience. The increase in total passenger traffic during specific periods contributed positively to this revenue stream, although overall passenger numbers showed a 5.7% decline in Q3 2024.

Parking and Ground Transportation Revenues	Q3 2023 (Ps.)	Q3 2024 (Ps.)	Change (%)
Parking Fees	Not disclosed	Not disclosed	Data not available
Ground Transportation Fees	Not disclosed	Not disclosed	Data not available

Article updated on 8 Nov 2024

Resources:

1. Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (PAC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.