Shanghai Airport Co lifts profit forecast; ASUR blocked on Riviera Maya airport bid
China's Shanghai International Airport Co announced over the weekend it expects to report a better-than 50% year-on-year increase in net profit to CNY706.3 million (USD107 million) and basic earnings per share of CNY0.37 for the 12 months ended 31-Dec-2010.
- Shanghai International Airport Co expects a significant increase in net profit for the year 2010, driven by a rise in traffic at Shanghai Pudong International Airport.
- Shanghai Pudong International Airport witnessed an 18.7% increase in traffic in December 2010, with international passengers up 18.7%, domestic traffic up 21.7%, and regional traffic down 3.7%.
- Shares of Shanghai International Airport Co declined by 1.2% on Friday, while other Chinese airports experienced gains.
- Mexico's Federal Competition Commission banned ASUR, the airport operator, from bidding for a new airport project in Riviera Maya due to competition concerns.
- The decision could cause delays for the Riviera Maya airport project, which is already behind schedule.
- Share prices of ASUR and GAP, Mexican airport operators, dropped as a result of the ban, while OMA's shares also declined. GMR, GVK, and TAV, airport companies from India and Turkey, also experienced share price drops.
The airport attributes the result to significant increase in traffic at Shanghai Pudong International Airport. Traffic at the airport jumped 18.7% in Dec-2010,with international passengers up 18.7%, domestic traffic up 21.7% and regional traffic down 3.7%.
Shares in Shanghai International Airport Co were down 1.2% on Friday, although other Chinese airports were up, including Beijing (+1.7%) and Hainan Meilan (+1.5%).
Over the weekend, Mexico's Federal Competition Commission banned the airport operator from bidding for a new airport in the Caribbean tourist area of Riviera Maya, citing competition concerns as ASUR operates nearby Cancun airport. The decision could add to delays for the project, which is well behind its original planning and development schedule. ASUR's departure from the process leaves a partnership between GAP and miner and transport company Grupo Mexico competing against a consortium of Corporacion America and Tradeco for the USD250 million project.
Shares in Mexico's ASUR dipped 2.6% on Friday, while GAP shares dropped 2.1%. Shares in OMA were down 0.5%.
Indian airport and infrastructure companies GMR and GVK both dropped 1.7%. Turkish airport company TAV dropped 2.9%.
Selected airport daily share price movements (% change): 28-Jan-2011
