Southeast Airport Group (NYSE: ASR)

Grupo Aeroportuario del Sureste, S. A. B. de C. V. (ASUR) is a holding company that operates, maintains and develops airport concessions in Mexico, Colombia, Puerto Rico and the United States. The company holds concessions to operate nine airports in southeast Mexico for fifty-year terms beginning November 1, 1998. ASUR also controls airports in Colombia through its subsidiary Airplan, manages the Luis Muñoz Marín International Airport in Puerto Rico via a joint venture, and operates commercial concessions at major U. S. airports including JFK, LAX and ORD.

ASUR generates revenue through three primary channels: aeronautical services, non-aeronautical services and construction services. Aeronautical revenue comes from passenger charges, landing fees, aircraft parking and other aviation-related fees paid by airlines and passengers. Non-aeronautical revenue stems from commercial activities such as leasing space to retailers, restaurants and duty-free shops, as well as access fees for services like catering and ground transportation. Under international accounting standards, ASUR also recognizes revenue from construction activities required to maintain and improve its airport concessions.

The company operates through the following segments: Aeronautical Services, Non-Aeronautical Services and Construction Services.

• Aeronautical Services: This segment generates revenue from passenger charges, landing fees, aircraft parking and other aviation-related fees paid by airlines and passengers for the use of airport facilities.

• Non-Aeronautical Services: This segment derives revenue from commercial activities such as leasing space to retailers, restaurants and duty-free shops, as well as access fees for services like catering, ground transportation and other commercial tenants at airport facilities.

• Construction Services: Under international accounting standards, this segment involves recognizing revenue from construction activities required to maintain and improve airport concessions, measured using the input method based on project progress.

ASUR holds a strong position in the Mexican airport market, operating the country's second-busiest airport (Cancún) and the leader in international passenger traffic according to Mexico's aviation authority. The company faces competition from other tourist destinations within Mexico and internationally, including beach resorts in Acapulco and Los Cabos, as well as Caribbean destinations like Punta Cana and Montego Bay. Additional competition arises from new airport developments such as the Felipe Carrillo Puerto International Airport being constructed by the Mexican military.

ASUR serves a diverse customer base consisting primarily of airlines, passengers and commercial tenants. Major airline customers include VivaAerobus, American Airlines, United Airlines, Copa Airlines and Avianca. The company also leases commercial space to retailers such as Dufry México, restaurant operators and various service providers at its airport facilities.