PAC

Business Context and Reporting Period

Company: Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (Pacific Airport Group or GAP)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter ended June 30, 2009 (Unaudited)
Reporting Date: July 24, 2009
Operations: GAP operates 12 airports in Mexico's Pacific region, including major hubs in Guadalajara and Tijuana, and tourist destinations such as Puerto Vallarta and Los Cabos. Results are prepared under Mexican Financial Reporting Standards (NIF).

Key Financial Metrics (Q2 2009)

Note: Figures in Pesos (Ps.). Net income decline was Ps. 169.6 million lower than Q2 2008.

Material Changes vs. Prior Period

• Revenue Decline: Total revenues fell 15.0% (Ps. 132.8 million). Aeronautical services dropped 18.1% (Ps. 126.5 million) driven by a 22.4% decrease in passenger traffic. Non-aeronautical revenues declined 3.4% (Ps. 6.3 million).
• Traffic Impact: Total terminal passenger traffic decreased 22.4%. Domestic traffic fell 21.6% and international traffic fell 24.0%. The A/H1N1 virus health alert in May 2009 caused severe flight cancellations and reduced occupancy, particularly affecting international routes from the U.S. and Canada.
• Cost Structure: Cost of services declined 5.7% (Ps. 14.4 million) in absolute terms but increased as a percentage of revenue by 313 basis points. Per workload unit (WLU) cost rose from Ps. 41.6 to Ps. 50.9. Employee costs increased 10.1% due to timing of annual bonuses and uniform purchases.
• Financing Results: Comprehensive financing results swung from a gain of Ps. 12.3 million in Q2 2008 to a loss of Ps. 32.9 million in Q2 2009 (a decrease of Ps. 45.2 million), driven by exchange rate losses (Ps. 34.5 million) and losses on embedded derivatives (Ps. 14.8 million).

Guidance, Outlook, and Risks

• Outlook: Management expects a gradual recovery of frequencies and cancelled routes affected by the A/H1N1 alert during the second half of 2009. Recovery for tourist destinations is anticipated during the next summer or winter vacation periods.
• Operational Risks: The A/H1N1 virus caused a temporary but severe disruption. Additionally, the cessation of operations by several domestic airlines (Alma, Aerocalifornia, Aladia, Avolar, Aviacsa) in late 2008 contributed to sustained traffic declines. VivaAerobus initiated new flights in Q2 2009, expected to support domestic recovery.
• Regulatory: The Mexican Ministry of Communications and Transportation regulates maximum aeronautical rates. The company satisfactorily complied with 2007 rates; the 2008 review began in March 2009.
• Capital Allocation: Shareholders approved a new share repurchase program of up to Ps. 864.6 million in April 2009, replacing a previous program of Ps. 55.0 million.
• Accounting Changes: Implementation of NIF B-8 regarding consolidated financial statements had no material effect on 2009 financial information.

Investor Verification Checklist

• Traffic Recovery: Verify the pace of passenger traffic recovery in Q3 and Q4 2009 relative to the A/H1N1 disruption and airline suspensions.
• Cost Efficiency: Monitor the trend of cost per workload unit (WLU), which increased significantly in Q2 2009, to ensure it does not erode margins further as traffic recovers.
• Exchange Rate Exposure: Assess the impact of peso-dollar exchange rate fluctuations on financing results, given the significant losses reported in Q2 2009.
• Airline Partnerships: Confirm the stability of new airline operations (e.g., VivaAerobus) and the potential for further airline suspensions or bankruptcies affecting GAP's airports.
• Share Repurchase Execution: Track the utilization of the newly authorized Ps. 864.6 million share repurchase program.