Aeroports de Paris sees stable earnings in 2009, freezes charges. Fraport reaches agreement on fees

In Europe, Aeroports de Paris' (AdP) shares jumped 3.7% on Friday, as the airport owner stated it expects roughly stable earnings in 2010. AdP reported a 4.1% increase in EBITDA, to EUR883 million for FY2009, on a 4.2% increase in revenue to EUR2.6 billion. The group also proposed to freeze charges this year, due to a decline in passenger traffic in 2009, but plans to increase charges by approximately 1.4% p/a from 2011 to 2015. AdP also plans to invest in a five-year, EUR2.4 billion project to renovate older terminals.

Fraport reaches agreement to increase charges between 2012 and 2015

AdP rival, Fraport, announced on Friday that it has reached an agreement with airlines on airport charges at Frankfurt Airport for 2012-2015, which will see charges increase 2.9% annually over the period. An agreement relating to the years 2010 and 2011 was previously concluded in Dec-2009.

Fraport is currently investing about EUR1 billion annually in the modernisation and expansion of Frankfurt's airside facilities, including the Airport Expansion Programme. However, Fraport Executive Board Chairman, Dr Stefan Schulte, stressed that for each EUR1 billion Fraport is spending "requires about EUR100 million in additional expenditures per year for interest and depreciation”. Dr Schulte added “these expenditures must first be earned via the expected traffic growth, additional airport charges, and increasing proceeds from retailing”. Therefore, the increase in airport charges is "an essential element for financing the immense capital expenditures” for Frankfurt’s “viability and competitiveness”.

Shares in Fraport closed 0.6% higher on Friday.

Auckland Airport completes final stage of NZD126.4 million equity raising

Shares in Auckland Airport meanwhile, gained 2.2% on Friday, upon the completion of the retail entitlement component of its 1 for 16 fully underwritten entitlement offer, announced on 27-Jan-2010. The retail entitlement offer received strong support from existing retail shareholders, with 76% of eligible retail shareholders electing to take up their entitlements. The shares are expected to be issued on 25-Feb-2010 and commence trading on the same date on the NZSX, while trading on the ASX is expected to commence on 26-Feb-2010.

Shares in Auckland Airport are up 1.6% in early trading on the NZSX today.

Selected airports daily share price movements (% change): 19-Feb-2010