CAP undervalued amid regulatory easing in Argentina

2 months ago

Ian Bezek

"Yeah, so Malay has been very good for CAP, which was to be expected. He formerly was the chief economist for Corporation America, which is the parent company of the airport company. So deregulation was near and dear to him since taking office. He's broken up Argentina to state-run airline, as ridiculous as that sounds, in the year 2025. But he broke that up. He's let foreign airlines come in to compete. He's let the budget airlines pretty much operate however they want without restriction. So you have far more local competition, lower prices, so you get more more flights obviously. And then just yeah, more broadly, anything that attracts more foreign capital and particularly more foreign investors coming through to visit the region. Good for air traffic, good for cargo. Cargo business is up a lot now that kind of more going on with the economy."

The speaker explains that regulatory reforms under Malay have significantly benefited CAP. By breaking up the state-run airline and easing restrictions for foreign and budget carriers, the environment now supports increased competition, lower fares, and a higher volume of flights. This boosts both passenger and cargo traffic and attracts foreign investment, suggesting that CAP is trading at a discount and has room to outperform over the next couple of years.

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