Grupo Aeroportuario Traffic Up - Analyst Blog
Earlier this week, Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (PAC) announced an increase of 0.4% in total passenger traffic for December 2009, compared to the year-ago period. Domestic passenger traffic increased 1.8%, while international passenger traffic decreased 2.1% compared to December 2008.
The increase in domestic passenger traffic resulted mainly from increase in passengers at the Merida, Cancun, Veracruz, Villahermosa and Cozumel airports, respectively. The decline in international passenger traffic resulted mainly from a decline in international traffic at the Cancun airport, a prime tourist destination. Major Mexican airlines companies reported a decrease in passenger traffic and the reason was the outbreak of swine flu in the country. Declining business and leisure travel in Mexico affected local airlines' business to a larger extent. In the third quarter 2009 the business environment showed no real improvement.
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 25 basis points to 4.5%. The Mexican economy is gradually growing up and the trend is likely to continue in the short term.
It seems that odds are against the Mexican tourism industry in the very short-term, mainly considering the difficult economic conditions in the U.S. However, the company is showing some improvements in terms of passenger traffic. Thus, we expect some recovery in the upcoming quarters.
It can be a better year for PAC, Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASR), and Grupo Aeroportuario del Centro Norte S.A. de C.V. (OMAB) compared to previous year.
Read the full analyst report on "PAC"
Read the full analyst report on "ASR"
Read the full analyst report on "OMAB"
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