Supporting Lima airport expansion in Peru

In 2019 Steer was commissioned by Lima Airport Partners (LAP), to develop a detailed market study and air traffic forecast to support the new expansion projects of Peru’s capital airport.

In 2000 the Peruvian Government granted LAP the concession to operate and expand Lima Airport until 2041. LAP’s shareholders include Fraport AG, IFC International Financial Corporation and AC Capitales SAFI S.A. of Peru.         

Jorge Chavez is Peru’s main international and domestic airport and is located in Callao, 11 kilometres from Lima’s city centre. The airport’s traffic grew by 7% in 2018, and more generally has seen strong traffic growth (prior to COVID-19) since the early 2000s. This has been driven on the demand-side by rapidly growing economic development in Peru coupled with international tourism and complemented on the supply-side by the development of low-cost domestic airline capacity. The airport offers direct routes to almost every commercial airport in the country, and its geographical location also favours direct routes to major cities throughout South America.

The latest expansion phase of the airport commissioned by the Ministry of Transport and Communications consists of the construction of a second runway, additional midfield apron parking positions, a new control tower as well as a new passenger terminal. Together these will enable consolidation of the airport’s operations, meeting increasing traffic demand and further enhancing customer experience.

Our work for LAP included:

• Detailed analysis and projections of the underlying drivers of the air traffic at Lima;
• Intermodal and Airport competition study for O&D and Connecting traffic in the region;
• Assessment of the current and potential future network and airline mix at the airport;
• Short term air traffic forecast based on historical and future schedules and airline growth plans;
• Long-term air travel demand forecast based on underlying macroeconomic drivers, low-cost market evolution and propensity to fly;
• Constrained air traffic throughput forecast taking into account current airside and landside restrictions at the airport;
• Future design day schedules to support LAP in correctly sizing the new facilities; and
• Cargo demand forecast.

We worked closely with the LAP team to develop the projections, and we presented our final findings to LAP Senior Management in Summer 2019.
Our offices in Latin America, North America and London have continued to support LAP during 2020 as their traffic advisor, assisting with advice on COVID-19 impacts on traffic volumes.

For more information, contact Michele Tavani