GAP Announces Initiation Of Operations In The Kingston Airport And Updated Guidance Expectations For

Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) ("the Company" or "GAP") informs that yesterday took control and initiated operations of the Norman Manley International Airport ("KIN"), located in the city of Kingston, Jamaica.

In accordance with the terms of the Concession Contract ("the Contract") that was signed on October 10, 2018, the Company was granted 12 months for the transition and takeover of the operation and administration of KIN. During this period, the Company complied with prior conditions and made a payment of US$ 7.1 million for the assignment of the Contract.

As per the Contract, there are mandatory works that must be executed during the first 36 months from the initiation of operations, for approximately US$ 60.0 million. Additionally, GAP will pay authorities a concession fee of 62% over total aeronautical and commercial revenues; these concepts, as well as operating expenses, are included in the determination of passenger fees.

During 2018, KIN served a total of 1.7 million passengers. For the January to September 2019 period, KIN served a total of 1.4 million passengers, representing an increase of 8.4% compared to the same period of 2018.

As a result of the integration and consolidation of KIN during the last quarter of the year, GAP announces its revised guidance for full year 2019.

Compared to previous guidance figures, the decline in the revised aeronautical revenue is due to lower actual inflation (to date), compared to the original estimates projected at the beginning of the year.

The consolidation of KIN during 4Q19 is based on the current operation of the airport, which could change in the future. Current contracts for services received, as well as commercial contracts, may be renegotiated and bid out to improve the airport's current financial and operating structure. Additionally, the new tariffs that are scheduled to be applied beginning January 1, 2020, will allow improvements in operating results and recovery of committed investments with the Government of Jamaica.

These figures are estimates based on certain assumptions that GAP's management considers reasonable. Many of the factors that affect these assumptions and their estimates are out of the Company's control and are subject to changes that could take place for the remainder of the year based on a variety of factors, including but not limited to, airline activity, domestic and international economic conditions and government regulations. Please refer to the Company's Annual Report for the period ended December 31, 2018, for a more detailed list of factors that could affect traffic performance, revenue and expenses.