Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASR) announced results for the three-month periods ended September 30, 2009. For the third quarter of 2009, total passenger traffic declined year-over-year by 13.86%. International passenger traffic declined 19.01% while domestic passenger traffic declined by 8.36%.
On April 28, 2009 the World Health Organization announced the outbreak of the H1N1 Influenza in Mexico . As a result, total year-over-year passenger traffic declined 2.1% in April, 50.7% in May, 28.4% in June, 16.7% in July, 12.8% in August and 10.7% in September.
The 19.01% decline in international passenger traffic resulted mainly from a decline of 20.23% in international traffic at the Cancun airport. The 8.36% decline in domestic passenger traffic resulted mainly from declines of 13.94%, 11.33%, 18.12%, 32.50% and 38.06% at the Merida , Veracruz , Villahermosa , Cozumel and Tapachula airports, respectively.
Net income declined 27.01% to MXN$170.74 million from MXN$233.91 million in the previous quarter. Earnings per common share for the quarter were MXN$0.57, or earnings per ADS (EPADS) of US$0.42. This compares with earnings per share of MXN$0.78, or EPADS of US$0.58 for the same period last year.
Total revenues declined 2.67% year-over-year to MXN$714.7 million. This was mainly due to declines of 3.09% in revenues from aeronautical services principally as a result of the 13.86% decline in passenger traffic and 1.85% in revenues from non-aeronautical services, principally as a result of the 0.20% decrease in commercial revenues.
Total operating costs and expenses decreased 2.23% year over year. Operating margin for the quarter declined to 38.95% from 39.22% in the same quarter last year. This was mainly the result of declines of 2.67% in revenues, which more than offset a decrease of 2.23% in costs during the period.
Airlines all over the world are facing difficulties, primarily due to the collapse of the global economy. Declining business and leisure travel is affecting airlines’ business to a larger extent.
Moreover, the Mexican economy could face a tight money period in the upcoming quarters as the Bank of Mexico recently lowered its benchmark interest rate by just 25 basis points to 4.5%, reducing the scope for further rate cuts. The Mexican economy is rapidly slowing down and the trend is likely to continue in the short term. Thus, it certainly would be a difficult year for ASR, Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (PAC) and Grupo Aeroportuario del Centro Norte S.A. de C.V. (OMAB).
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