Armenia

Corporación América Airports Extends Armenia Airport Concession by 35 Years, Commits to $425 Million Investment Program

YEREVAN — Corporación América Airports S.A. (NYSE: CAAP) (“CAAP” or the “Company”), one of the world’s leading private airport operators, announced today that its subsidiary, Armenia International Airports CJSC (“AIA”), has entered into an amendment agreement with the Government of the Republic of Armenia (“GOA”) to modify certain terms of the airport concession agreement originally signed on December 17, 2001.

Under the amended agreement, the concession for Zvartnots International Airport in Yerevan and Gyumri Shirak International Airport has been extended by 35 years, through December 31, 2067. The agreement also provides for the possibility of discussing additional future extensions, subject to mutual agreement.

Key Highlights of the Amended Concession Agreement

  • Concession Extension: The concession term has been extended by 35 years, providing long-term operational visibility and stability through 2067.
  • Inflation-Based Tariff Regime: The amendment replaces the prior single-till framework with an inflation-based regime, allowing for annual tariff adjustments beginning in April 2027.
  • New Master Plan and Capital Investment Program: AIA will submit a new Master Plan by January 31, 2026, which will include a capital investment program of $425 million to be executed by 2033. The program will focus on infrastructure development, operational enhancements, and long-term capacity expansion at Zvartnots International Airport. The Master Plan will be updated every five years thereafter.
  • Economic Equilibrium and Rebalancing Mechanisms: The amended agreement introduces an economic equilibrium framework providing compensation mechanisms in the event of:
    • force majeure events;
    • passenger traffic falling below defined thresholds;
    • regulatory or tax changes impacting the concession’s financial balance; and
    • additional capital investments approved by the GOA beyond the agreed investment program.

Compensation may be implemented through tariff adjustments and/or extensions of the concession term.

  • Airport Charges and Tariff Adjustments: AIA will have the right to adjust all airport tariffs denominated in euros starting in April 2027, based on a parametric formula that considers inflation indices in Armenia, the United States, and the European Union, as well as applicable exchange rates.
  • Expanded Operational and Commercial Rights: The amendment clarifies and updates AIA’s exclusive rights to operate and commercially develop a wide range of aeronautical and non-aeronautical activities, including logistics platforms, free economic zones, and future vertiport infrastructure for eVTOL operations. It also refines termination and indemnification provisions applicable under various scenarios.

Martín Eurnekian, Chief Executive Officer of Corporación América Airports, commented: “This amendment, including the 35-year extension of the concession, represents an important milestone for our operations in Armenia and reflects the high-quality operational standards of CAAP. The updated framework enhances long-term visibility, strengthens protections to preserve the economic equilibrium of the concession, and establishes a clear and predictable tariff adjustment mechanism. It reinforces our long-standing commitment to the development and modernization of Armenia’s airport infrastructure while supporting value creation for our shareholders and extending the average life of our global airport portfolio.”

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