Corporación América Airports S.A. (CAAP): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for a clear, late-2025 snapshot of Corporación América Airports S.A.'s (CAAP) market strategy, and honestly, the four P's show a company effectively monetizing the post-pandemic travel boom, especially in Latin America. With Q3 consolidated Revenues ex-IFRIC hitting $472.1 million and passenger traffic climbing 9.3% year-over-year to 23.3 million, their strategy of aggressive capacity expansion-like the recent Baghdad agreement-is clearly working. To be fair, this isn't just luck; it's a precise mix of regulated pricing and commercial savvy across their 53 airports. Keep reading to see the granular breakdown of their Product, Place, Promotion, and Price levers that are driving this performance.

Corporación América Airports S.A. (CAAP) - Marketing Mix: Product

The product element for Corporación América Airports S.A. (CAAP) centers on the management and development of airport infrastructure and the provision of associated services across its concession portfolio.

Core offering is airport concession management and infrastructure development.

The business model relies on a dual revenue stream from Aeronautical and Commercial services. For the third quarter of 2025, this structure delivered strong top-line performance. Consolidated Revenues ex-IFRIC12 reached $472.1 million, marking a 16.6% year-over-year increase. Aeronautical revenues grew by 15.2%, while Commercial revenues saw an 18.0% increase year-over-year. Revenue per passenger for the quarter was $20.2, up 6.7% compared to the same quarter last year.

Commercial services include duty-free, retail, food/beverage, and VIP lounges. These non-aeronautical activities are a key focus for value enhancement. Specific product enhancements noted include:

• Expansion of the duty-free arrivals area at Ezeiza International Airport, more than doubling its size.
• Inauguration of the most modern VIP lounge in Latin America at the SEA airport in Argentina.
• Inauguration of a new covered parking facility at Montevideo Airport.
• Progress on the development of the Brasilia shopping mall, with opening scheduled for 2026.

Focus on capacity expansion, like the new terminal at Ezeiza International Airport. The new departure building at Ezeiza International Airport (EZE) has a footprint exceeding 50,000 square meters (538,000 feet). This facility is designed to handle all departing international flights in the future. The new terminal has the capacity to serve up to 30 million passengers a year. Furthermore, the integral transformation plan included runway repairs projecting a useful life of 20 years for the main runway.

Q3 2025 passenger traffic was 23.3 million, up 9.3% year-over-year. The company operates 52 airports across 6 countries: Argentina, Brazil, Uruguay, Ecuador, Armenia, and Italy.

Here is a summary of key operational and revenue metrics for the third quarter of 2025:

Corporación América Airports S.A. (CAAP) - Marketing Mix: Place

The Place strategy for Corporación América Airports S.A. (CAAP) centers on its extensive and geographically diversified portfolio of long-term airport concessions, ensuring its service is available at critical points of entry and transit across Latin America and Europe.

The distribution footprint of Corporación América Airports S.A. is substantial, positioning it as a major global operator. As of late 2025, the company operates a network of 53 airports across 6 countries in Latin America and Europe. This network includes stable, mature markets alongside high-growth emerging economies, providing a resilient distribution base.

The core of Corporación América Airports S.A.'s physical presence remains anchored in its largest market, Argentina. The company operates and manages 37 of the 56 airports in the Argentine national airport system. This concentration in Argentina is a key distribution feature, as evidenced by its massive contribution to recent traffic recovery; Argentina drove 66% of the total passenger traffic growth in May 2025. By October 2025, Argentina still accounted for almost 60% of the total year-over-year traffic growth.

Key international hubs within the existing network are strategically located to capture significant passenger flows:

• Airports in Brazil, showing strong recovery with cargo volume up 21.1% in May 2025.
• Airports in Italy, specifically Florence and Pisa, which saw international traffic rise 9.4% in May 2025.
• The airport in Armenia, which posted a cargo volume increase of 19.7% in May 2025.

The distribution strategy is actively expanding geographically, signaling a move to secure new, high-potential locations. A major development in this area is the November 2025 announcement that Corporación América Airports S.A.'s consortium signed an award agreement with the Government of Iraq to operate Baghdad International Airport (BGW). This move into the Middle East supports the company's objective of broadening its concession footprint.

The operational scale across the network in May 2025 highlights the distribution reach:

The company's ability to manage traffic across these diverse locations is crucial for its Place strategy. For instance, in August 2025, total passenger traffic increased by 10.2% year-over-year, with Argentina accounting for two thirds of the total traffic growth.

Corporación América Airports S.A. (CAAP) - Marketing Mix: Promotion

Promotion for Corporación América Airports S.A. (CAAP) is less about traditional consumer advertising and more focused on strategic communication with key stakeholders: governments for concessions, airlines for traffic, and investors for capital. The core message revolves around infrastructure investment driving superior operational and financial performance.

Primary strategy is a build-and-expand model for new concession acquisition.

The build-and-expand model is a key promotional narrative used when engaging potential government partners for new concessions. This strategy is actively being pursued, as evidenced by the progress on the Baghdad Airport project in Iraq, for which an Award Agreement was signed. Furthermore, Corporación América Airports S.A. is evaluating inorganic expansion opportunities, submitting proposals for a 30-year concession in Montenegro and providing clarifications in Angola. This proactive pursuit of new assets, often involving significant capital outlay, is promoted as a commitment to long-term growth and value creation.

Large capital expenditure (Capex) programs, like the $\text{425 million}$ investment in Armenia.

Significant Capex programs serve as tangible proof points of the build-and-expand strategy. The investment in Armenia is a major ongoing commitment, with the Capex program valued at $\text{425 million}$ as of Q1 2025. In Italy, the Florence Airport master plan is advancing, having secured the Environmental Impact Assessment decree, a critical milestone for its associated investment. These large-scale infrastructure projects are communicated to demonstrate Corporación América Airports S.A.'s capability to execute complex, high-value developments.

Attracts airlines via infrastructure upgrades and new route development, like Wizz Air's new base in Yerevan.

Infrastructure improvements directly support the attraction of new airlines and increased frequency. The opening of Wizz Air's first base at Zvartnots Airport in Yerevan, Armenia, starting in October 2025, is a prime example of this success. This move involved basing two state-of-the-art Airbus A321neo aircraft. This partnership immediately added eight new direct routes to European destinations like Hamburg, Prague, and Bari, with fares starting from only EUR 29.99. In total, Wizz Air is set to offer almost 1.2 million low-fare seats per year from Yerevan in 2025, operating 17 routes to 10 countries. This growth was further bolstered by the announcement of a ninth new route from Yerevan to Bratislava, scheduled for January 2026.

Commercial initiatives successfully drove 'healthy revenue per passenger expansion.'

The success of commercial initiatives is quantified and promoted through unit revenue metrics. For the third quarter of 2025, Corporación América Airports S.A. reported a 'healthy revenue per passenger expansion'. One analysis noted revenue per passenger was up 6.7%. This was supported by strong commercial revenue growth, which increased 18.0% year-over-year in Q3 2025. The focus on enhancing non-aeronautical revenue streams, such as VIP lounges and duty-free stores, is a key message to investors demonstrating revenue diversification beyond traffic volume.

The following table summarizes key operational metrics supporting the promotional narrative of growth and commercial success as of Q3 2025:

Investor relations and financial reporting serve as the main public-facing communication.

The most direct form of public communication is through formal financial disclosures and investor engagement. The Q3 2025 results were released on November 24, 2025, with executives like CEO Martín Eurnekian and CFO Jorge Arruda leading the commentary. The financial strength communicated supports the ability to fund the growth strategy. Key figures highlighted include:

• Cash & Cash Equivalents: $\text{540.4 million}$ as of September 30, 2025.
• Total Liquidity Position: $\text{661 million}$ at the end of Q3 2025.
• Net Debt to LTM Adjusted EBITDA: Improved to 0.9x as of September 30, 2025.
• Total Debt: $\text{1.1 billion}$ at quarter end.

The Head of Investor Relations, Patricio Iñaki Esnaola, is also a key contact point for this communication channel. This disciplined financial reporting reinforces the message of operational success and strategic execution to the investment community.

Corporación América Airports S.A. (CAAP) - Marketing Mix: Price

Price for Corporación América Airports S.A. (CAAP) is fundamentally a dual structure, blending regulated aeronautical charges with market-driven commercial rates. This approach reflects the dual nature of the business: essential infrastructure service versus value-added retail/service offerings.

For the third quarter of 2025, the overall financial performance underscores the effectiveness of this pricing strategy. Consolidated Revenues ex-IFRIC12 totaled $472.1 million for the period. This top-line result was supported by strong pricing power across both core revenue streams.

The regulated component, aeronautical revenues, which derive from landing fees and passenger service charges, saw significant uplift. Aeronautical revenues grew 15.2% year-over-year, reaching $246 million in Q3 2025. This growth outpaced the 9.3% increase in total passenger traffic for the quarter, signaling successful price realization or volume mix shifts toward higher-yield services.

The market-driven commercial pricing strategy is evident in the revenue per passenger metric. You saw revenue per passenger increase nearly 7% to $20.2 in Q3 2025, up from $19 in the prior-year quarter. This expansion in unit revenue, despite only moderate traffic growth, is a direct indicator of successful commercial pricing and upselling efforts.

The pricing structure in Argentina is particularly sensitive to regulatory adjustments. For instance, the domestic passenger fee, managed by Aeropuertos Argentina 2000 (AA2000), was recently increased to ARS5,685 from ARS2,540 by ORSNA via Resolution No. 29/2024. This type of fee adjustment is a critical lever for managing operational costs and maintaining concession viability in that market.

Long-term pricing stability and return protection are embedded within the concession agreements themselves. The Argentine contract extension, which runs until 2038, includes mechanisms designed to protect returns, such as the Financial Projection of Income and Expenses (PFIE) which contains projections until that year. Furthermore, the agreement tied to this extension included a commitment by AA2000 for incremental capital expenditures of approximately US$500 million between 2022 and 2027.

Here's a quick view of the Q3 2025 revenue drivers:

The company's pricing strategy in the commercial space focuses on optimizing non-aeronautical revenue streams, which saw growth of 18.0% in the quarter. This suggests that the pricing for services like retail, food and beverage, parking, and duty-free is highly responsive to market conditions and passenger spending power.

Key elements influencing the price realization across the network include:

• Regulatory approval timelines for aeronautical fee adjustments in key markets.
• The success of commercial initiatives driving revenue per passenger expansion of 6.7%.
• The impact of inflation accounting (IAS 29) on reported Argentine figures.
• Contractual mechanisms, like the Argentine extension to 2038, that secure long-term revenue visibility.
• The commitment to significant capital expenditure, approximately US$500 million, which justifies future rate-of-return expectations.

Finance: draft 13-week cash view by Friday.