Corporación América Airports Extends Concession by 35 Years, Commits to $425 Million Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
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Source: Yahoo Finance
- Concession Extension: CAAP's subsidiary Armenia International Airports has signed an agreement with the Armenian government to extend the concession term by 35 years until 2067, ensuring long-term operational stability for the company in Armenia.
- Investment Commitment: Under the agreement, CAAP will submit a $425 million Master Plan by January 31, 2026, covering infrastructure development and operational enhancements, with completion expected by 2033, thereby enhancing the airport's long-term capacity.
- Inflation Adjustment Mechanism: The new agreement replaces the single-till framework with an inflation-based regime, allowing for tariff adjustments starting in April 2027 based on inflation indices from Armenia, the U.S., and the EU, ensuring revenue aligns with economic conditions.
- Economic Equilibrium Mechanism: The agreement introduces an economic equilibrium rebalance framework that provides compensation mechanisms for force majeure events and passenger traffic declines, allowing for tariff adjustments or concession term extensions to maintain financial balance, thereby enhancing investment security.
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About CAAP
Corporacion America Airports SA is a focused on acquiring, developing and operating airport concessions. It operates approximately 52 airports globally in Latin America, Europe and Eurasia. The Company’s airports are located in Argentina, Italy, Brazil, Uruguay, Ecuador, Armenia, and Peru. The Company’s Argentine provinces serves metropolitan areas in several Argentine provinces, such as Buenos Aires, Cordoba and Mendoza and the city of Buenos Aires, tourist destinations, such as Bariloche, Mar del Plata and Iguazu, regional centers, such as Cordoba, Santa Rosa, San Luis, San Juan, La Rioja, Santiago del Estero and Catamarca and border province cities, such as Mendoza, Iguazu, Salta and Bariloche.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CAAP Signs Addendum for Seymour Airport Concession in Ecuador
- Addendum Signed: CAAP's subsidiary Ecogal has executed an addendum for the Seymour Airport concession in Ecuador, aimed at rebalancing the economic and financial equilibrium adversely affected by the COVID-19 pandemic, ensuring sustainable airport operations.
- Concession Terms Adjusted: The agreement includes adjustments to airport charges, an extension of the concession term, and the rescheduling of investment commitments, designed to enhance financial stability and support future development of the airport.
- Sustainability Achievements: Since 2017, Seymour Airport has achieved carbon-neutral operations and recently received Level 4+ certification under the Airport Carbon Accreditation program, demonstrating CAAP's ongoing commitment to sustainability and operational excellence.
- Passenger Growth Forecast: By 2025, CAAP is expected to serve 86.7 million passengers, a 9.8% increase from 79.0 million in 2024, reflecting the company's strong recovery and growth potential in the Latin American and European markets.
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CAAP Extends Concession Agreement for Galápagos Airport
- Concession Term Extension: CAAP's subsidiary Ecogal has signed an addendum extending the concession term for Seymour Airport by six years until December 31, 2032, thereby ensuring future economic equilibrium.
- Airport Charge Adjustment: The Terminal Use Charge will increase by $5.20 per passenger to $31.18, which is expected to enhance the company's revenue stream through annual adjustments.
- Investment Program Implementation: Ecogal plans to conduct a runway condition assessment in 2029, with a maximum investment of $4 million for repaving if necessary, ensuring the long-term sustainability and safety of airport facilities.
- Economic Equilibrium Mechanism: The agreement includes provisions for a biennial review of economic balance, allowing for renegotiation of terms in case of force majeure, thus maintaining the economic stability of the concession.
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