Corporación América Airports Declares Inaugural $150 Million Dividend, Says Argentina Headwinds Are Transitory as Cargo and Flybondi Disruptions Mask Underlying Strength
Q2 2026 earnings call, August 18, 2026
Corporación América Airports used its second-quarter call to unveil a new chapter in its capital allocation story: the company's board approved its first-ever cash dividend, totaling $150 million, or approximately $0.91 per share, payable this year. CEO Martin Eurnekian called the move "an important milestone in our capital allocation strategy," and the framework laid out by management signals this is likely to become a recurring feature rather than a one-off. The dividend was calibrated around four principles, according to Eurnekian: enhancing shareholder returns, preserving credit strength and covenant headroom, keeping adequate cash at each operating subsidiary to fund local strategic plans, and retaining sufficient firepower at the holding company level to pursue acquisitions. CFO Jorge Arruda reinforced that the payout was sized specifically not to compromise growth capital in markets like Armenia, where a major capex program tied to a concession extension is about to begin.
The dividend announcement comes from a position of financial strength. Total liquidity rose 20% to $861 million from $715 million at year-end 2025, while net debt fell to $381 million from $502 million, leaving net leverage at just 0.5 times EBITDA. Nearly all operating subsidiaries generated positive operating cash flow in the first half, with Italy and Ecuador the only exceptions due to capex and concession-fee timing.
Headline EBITDA decline overstates the damage
On the surface, adjusted EBITDA (ex-IFRIC 12) fell 4.5% to $160 million, but management was emphatic that this understates underlying momentum. Arruda walked through the adjustments: excluding a one-time bad comparison in Argentine cargo and non-recurring costs in Uruguay, EBITDA would have grown 5% rather than declined. Argentine revenues excluding cargo grew 13%, and cost growth in the country, excluding amortization, was contained to roughly 3.4%. Four of the company's six operating segments delivered double-digit EBITDA growth in the quarter, with only Argentina and Uruguay dragging on consolidated results.
The Argentine cargo decline was driven by an unusually difficult comparison: customs labor disruptions in April 2025 extended cargo dwell times and inflated storage revenues in the prior-year quarter. This year's more efficient customs clearance reduced dwell times and, consequently, storage revenue, a swing management characterized as comparison-driven rather than a reflection of deteriorating fundamentals. Uruguay's EBITDA decline of 16%, with margin contraction of 8.4 percentage points, was tied to costs from a new ILS system that began generating revenue only in August, alongside maintenance expenses that preceded the associated revenue benefit.
Flybondi capacity cut is the real domestic traffic story in Argentina
Argentine domestic traffic fell nearly 12% in the quarter, the single biggest drag on consolidated passenger volumes, and management was direct about the cause: it is a supply problem, not a demand problem. Flybondi has significantly reduced its operating fleet amid higher fuel costs, and Arruda noted the airline is only planning to grow from 16 to 19 aircraft over the next few months, a slow recovery. Management pointed to historical precedent, citing PLUNA's collapse in Uruguay and Avianca's disruption in Brazil as examples where seat capacity vacated by one carrier was eventually absorbed by others. Confirming that thesis is already underway, Arruda noted that both Aerolíneas Argentinas and JetSMART posted their second-best months in history in the Argentine domestic market in July. Eurnekian added that planned runway maintenance at Ezeiza, spanning more than 15 days, will further pressure domestic traffic in the October-November window but is not expected to be material at the consolidated level.
International traffic and revenue per passenger remain the offsetting strength
Even as domestic Argentina struggled, international traffic in the country rose 4%, and Argentina posted the strongest international seat-capacity growth of any South American market in the company's portfolio during the first half, driven by new routes and added frequencies from multiple carriers. Consolidated revenue per passenger rose nearly 9% to $22.90 from $21.00 a year earlier, with gains recorded in every single country of operation, including Argentina. Commercial revenues, excluding the Argentine cargo distortion, rose 26%, well ahead of traffic growth, powered by VIP lounges, duty-free, and space rental, with Brazil's rental performance singled out as "phenomenal" by Arruda.
Armenia absorbs Middle East conflict disruption via Wizz Air base and European demand
Armenia delivered the strongest traffic growth in the portfolio, up 13% in the quarter and accelerating to 17% in July, despite flight cancellations and regional airspace restrictions tied to the Middle East conflict. Eurnekian noted that Middle East traffic represents over 20% of Armenia's total volume and was clearly impacted, but the damage was more than offset by robust demand to and from Europe, aided by the recent establishment of a Wizz Air base at Zvartnots. "This more than offset the impact of traffic to Middle East... but again, more than offset by this traffic with Europe on legacy carriers and Wizz that are creating traffic," Eurnekian said, adding that new routes are targeting both diaspora travelers and the broader market. Armenia's EBITDA rose 21% in the quarter, though margin compression continues as the airport's lower-margin fuel resale business expands.
Regulatory catalysts in Argentina and Italy remain unresolved but moving
Investors pressed management on the status of two long-running regulatory processes: the concession rebalancing in Argentina and approval of the Florence Airport master plan in Italy. On Argentina, Eurnekian was careful to distance the company from recent press leaks regarding negotiation terms, stating plainly, "It should be taken as a leak... As of today, none of that is actually valid or binding." He characterized the reports as indicative of progress but declined to confirm specifics until a binding agreement is reached. On the Toscana Aeroporti master plan in Italy, Arruda said the company expects Italy's infrastructure ministry and aviation regulator ANAC to formally declare the project "strategic" in the near future, the next step before a required public services conference, adding there are "no red flags" in the process to date.
New concession pipeline spans Africa, Middle East and the Americas
Management confirmed the company remains active in pursuing new concessions internationally, with the most concrete disclosure being its shortlisted status, alongside a local partner, in the public tender for Hurghada Airport in Egypt. Eurnekian was otherwise circumspect about other opportunities in Africa, the Middle East and the Americas, noting the company's practice of staying quiet until bids are public or awarded, citing past precedent with Nigeria and Angola. "We do not talk about opportunities when they are not mature enough," he said, signaling that further acquisition announcements should be expected opportunistically rather than on a set timeline.