Does Surging August Passenger Traffic Alter the Long-Term Growth Thesis for Corporación América Airports (CAAP)?

• Corporación América Airports S.A. reported that in August 2025, total passengers reached 7,940,000, up from 7,205,000 a year earlier, while year-to-date figures showed 56,944,000 passengers versus 51,726,000 for the prior year, alongside increases in aircraft movements and mixed cargo volume changes.
• The marked growth in passenger numbers highlights sustained demand recovery across the company’s airport network, even as cargo volumes experienced some fluctuations.
• We’ll take a closer look at how accelerating passenger growth could reinforce Corporación América Airports' investment narrative and long-term outlook.

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Corporación América Airports Investment Narrative Recap

A shareholder’s core belief in Corporación América Airports centers on the long-term growth of global air travel, a diversified airport portfolio, and the company’s ability to convert rising passenger traffic into higher revenue and margins. The recent operating data, with accelerating year-over-year passenger growth in August 2025, positively supports the primary near-term catalyst of demand recovery but does not bring material change to the most pressing risk, which remains Argentina’s persistent economic volatility and currency pressures.

Among recent announcements, the company’s Q2 2025 earnings highlight that while passenger and revenue growth remain strong, net income and margins are under pressure, particularly due to challenges in high-inflation markets. This underscores the delicate balance between operational expansion and cost management, both of which are closely tied to the pace and quality of passenger growth.

Yet, despite the momentum in passenger numbers, investors shouldn’t overlook how local inflation and currency headwinds in Argentina could impact longer-term earnings resilience...

Read the full narrative on Corporación América Airports (it's free!)

Corporación América Airports' narrative projects $2.1 billion revenue and $472.1 million earnings by 2028. This requires 3.6% yearly revenue growth and a $320.7 million earnings increase from $151.4 million today.

Uncover how Corporación América Airports' forecasts yield a $25.34 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members produced four fair value estimates for CAAP ranging from US$11.09 to US$54.76 per share. While estimates reflect wide-ranging expectations, persistent inflation and currency risks in Argentina continue to shape sentiment among many investors who follow the company’s regional exposures.

Explore 4 other fair value estimates on Corporación América Airports - why the stock might be worth over 2x more than the current price!

Build Your Own Corporación América Airports Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Corporación América Airports research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Corporación América Airports research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Corporación América Airports' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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