Airline failure jitters drive airport shares

Airport share price nervousness hit Mexico late last week, with the failure of domestic carrier, Alma de Mexico, contributing to pessimism about airport groups GAP, OMA and ASUR. Macquarie Airports (MAp) recently acquired a 5.6% strategic interest in ASUR. Alma accounted for 5% of domestic capacity and operated to nine OMA airports and seven GAP airports.

Shares of another MAp interest, Copenhagen Airport, rallied 11.6% on 13-Nov-08 after an earlier deep sell-off over concerns about airlines serving the Danish capital.

Chinese airport shares have been increasing lately. Traffic reports by China's major carriers indicate traffic levels in the domestic market bottomed in Aug-08 and international may have done likewise in Sep-08.

Selected airports daily share price movements (% change): 14-Nov-08