Corporación América Airports Announces Changes to Argentina Concession Agreement and $7.3 Billion Capital Investment Program
Corporación América Airports S.A. has announced that the Government of Argentina has issued an Administrative Decision approving several changes to the concession agreement granted to Aeropuertos Argentina S.A. (AARG). The decision is designed to address increased capital investment requirements resulting from significant passenger traffic growth and establish a framework for continued investment across Argentina’s airport system.
The changes were approved in accordance with the prerogatives granted under Law 27,742 and Decree 713/2024. According to Corporación América Airports, the revised terms are intended to support the deployment of a substantial capital investment program while restoring and maintaining the economic and financial equilibrium of the concession.
The agreement includes changes involving capital investments, concession fees, the concession term, passenger tariffs, the internal rate of return and periodic reviews of the economic and financial plan.
$7.3 Billion Capital Investment Program
One of the central components of the revised concession agreement is a long-term capital investment program estimated at approximately $7.3 billion, including VAT, over the remaining term of the concession.
The investment program is expected to be primarily funded through certain trusts established to support infrastructure projects within Argentina’s National Airport System. Of the overall investment commitment, approximately $1.5 billion is expected to be deployed between 2027 and 2031 across the airports included in the AARG concession.
In addition to investments funded through the trusts, AARG has committed approximately $600 million in direct capital investments.
The investment framework is intended to provide additional resources for airport infrastructure at a time when passenger traffic has increased significantly. Rising passenger volumes can create additional requirements for terminal facilities, passenger processing areas, airside infrastructure and other airport-related assets.
The revised agreement also establishes protections around additional investment requirements. AARG may not be required to undertake investments beyond the amounts agreed upon by the parties unless the necessary mechanisms and contractual adjustments are established to preserve the economic and financial equilibrium of the concession.
This provision is intended to provide greater visibility into the investment obligations associated with the concession while creating a mechanism for addressing future requirements that may fall outside the currently agreed program.
Concession Fee Remains at 15% of Gross Revenues
The concession fee payable by AARG under the existing agreement will remain at 15% of gross revenues.
Under the revised arrangement, the concession fee will be allocated among different trusts established to finance infrastructure projects within Argentina’s National Airport System.
The structure links the concession’s revenue-generating framework with broader airport infrastructure financing. By directing the concession fee toward these trusts, the revised agreement provides a mechanism to support infrastructure projects throughout the national airport system.
The continuation of the 15% concession fee also provides clarity regarding one of the principal financial obligations associated with the airport concession.
Concession Extended to February 2056
The revised agreement also extends the term of the concession.
The concession period has been extended by 11 years to restore the economic and financial equilibrium of the concession. An additional seven years has been granted as compensation for the $600 million in direct investments committed by AARG.
As a result, the concession will now expire in February 2056.
The extended term provides a longer period over which the airport operator can deploy and recover its committed capital investments. It also aligns the duration of the concession with the substantial infrastructure investment program contemplated under the amended agreement.
For the airport system, the longer concession period provides a framework for undertaking infrastructure improvements over an extended time horizon rather than limiting investment planning to the shorter remaining term of the previous agreement.
Economic and Financial Plan Targets 14.30% IRR
As part of the agreement, the parties have established an economic and financial plan resulting in an internal rate of return (IRR) of 14.30%.
The IRR is an important component of the revised concession framework because it reflects the economic and financial parameters agreed upon by the parties in connection with the concession.
The new plan incorporates the investment program, concession fee structure, concession extension and passenger tariff framework. Together, these elements are intended to establish an economic structure that supports the long-term operation and development of the airport concession.
The agreement also provides for periodic reviews of the economic and financial projections, allowing the parties to assess whether the assumptions underpinning the concession remain appropriate as conditions change.
Passenger Tariffs to Be Denominated in U.S. Dollars
Another significant change involves passenger tariffs. Under the revised agreement, all passenger tariffs will be denominated in U.S. dollars.
The International Passenger Use Fee will remain unchanged.
The Domestic Passenger Use Fee, meanwhile, will increase to $9.00 by January 1, 2027.
The agreement also modifies the application of the Regional Passenger Use Fee, which currently stands at $25.16 and applies to regional flights of up to 300 kilometers.
Beginning January 1, 2027, the Regional Passenger Use Fee will apply to flights of up to 1,000 kilometers.
These tariff provisions represent an important part of the revised economic framework for the concession. Passenger tariffs are a key component of airport economics, and changes to the fee structure can influence the revenue generated from passenger traffic and the financial capacity available to support infrastructure investment.
The use of U.S.-dollar denominated passenger tariffs also provides a defined currency framework for the revised concession economics.
Three-Year Review Mechanism
The amended agreement introduces a triennial review mechanism under which the projections associated with the concession will be updated and reviewed every three years.
The purpose of these reviews will be to determine whether further changes to the concession agreement are necessary to maintain its economic and financial equilibrium.
The review mechanism is particularly relevant for a long-term concession extending through 2056. Airport passenger volumes, operating costs, investment requirements, economic conditions and other factors can change considerably over a multi-decade period.
By establishing periodic reviews, the agreement creates an opportunity for the parties to reassess the projections and contractual framework rather than relying solely on assumptions established at the time of the current amendment.
The mechanism is intended to help maintain alignment between the concession’s financial structure and changing conditions within the airport system.
Passenger Growth Drives Increased Investment Requirements
Corporación América Airports said the changes are being made in response to increased capital investment requirements arising from material recent growth in passenger traffic.
The company’s broader airport operations have also experienced significant passenger growth. In 2025, Corporación América Airports served 86.7 million passengers, representing a 9.8% increase from the 79.0 million passengers served in 2024.
The increase in passenger volumes highlights the growing scale of the company’s airport operations and the corresponding need for infrastructure capable of supporting higher levels of demand.
As passenger numbers increase, airport operators may need to expand or upgrade infrastructure across multiple areas, including passenger terminals, security and immigration facilities, baggage systems, boarding areas, airport access infrastructure and other operational facilities.
The long-term investment program outlined in the revised Argentina concession agreement is therefore positioned as an infrastructure response to the changing scale of airport activity.
Long-Term Framework for Argentina’s Airport System
The revised concession agreement establishes a long-term framework that combines infrastructure investment, tariff adjustments, concession extensions and periodic financial reviews.
The approximately $7.3 billion investment program represents the largest component of the revised framework. With approximately $1.5 billion expected to be deployed during 2027–2031 and $600 million committed as direct investments by AARG, the agreement sets out significant capital commitments for the development of the airport system.
The continuation of the 15% concession fee and its allocation through infrastructure-focused trusts further connects the financial structure of the concession with airport infrastructure development.
At the same time, the extension of the concession through February 2056 provides a longer horizon for implementing the investment program and operating the airport network.
The triennial review mechanism adds another layer of flexibility by allowing the parties to reassess economic and financial projections every three years and determine whether additional contractual changes may be required.
Corporación América Airports’ Global Operations
Corporación América Airports acquires, develops and operates airport concessions across Latin America and Europe.
The company currently operates 52 airports in six countries: Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy.
Its portfolio provides exposure to multiple airport markets and passenger traffic flows across different geographic regions. Argentina represents an important component of the company’s airport operations, and the revised AARG concession agreement establishes a long-term framework for continued investment in the country’s airport infrastructure.
The company’s reported passenger figures demonstrate the scale of its operations. In 2025, its airports collectively served 86.7 million passengers, up from 79.0 million in 2024.
Corporación América Airports is listed on the New York Stock Exchange under the ticker CAAP.
