Spanish airport group Aena warns rebound in passenger traffic may not last

The brand of Spanish airport operator AENA is displayed on a monitor at Terminal 4 of Madrid’s Adolfo Suarez Barajas airport November 6, 2014. REUTERS/Sergio Perez

MADRID, July 27 (Reuters) – Spanish airport operator Aena (AENA.MC) has warned it does not be expecting a latest sharp restoration in passenger quantities to be sustained due to the hard economic ecosystem, sending its shares to their cheapest in just about two years.

The operator of airports serving Madrid, Ibiza and Tenerife between other places returned to financial gain in the to start with half after two a long time of losses because of to pandemic-similar travel limits, but foresaw targeted visitors degrees down below 2019 this year.

In a statement on Wednesday it posted a internet profit of 164 million euros ($166 million) in the six months by way of June compared with a internet reduction of 364 million in the initially 50 percent of very last year, on profits that doubled to 1.69 billion euros.

Aena mentioned that even even though income soared many thanks to mounting aircraft traffic, its costs rose 40% all through the 50 percent calendar year to 1 billion euros, largely because of to higher vitality expenditures.

The organization also said airways experienced lessened their summer season potential in Spain to 200 million passengers from a previously announced 216 million.

The variety of travellers transferring through Spain’s airports in the to start with six months of the 12 months increased to 104.9 million, 82% of the pre-pandemic level in the first half of 2019.

In July, passenger site visitors at Aena’s airports have been at 90% of pre-pandemic levels, but the organization mentioned it did not assume that to very last presented the financial outlook, Main Economical Officer Jose Leo informed a conference get in touch with with analysts.

“At existing we somewhat like to remain prudent,” Leo included.

The company’s website traffic circumstance for comprehensive-year 2022 is now in the selection of 75% to 85% of its 2019 figures.

Most airlines are staying dogged by labour disputes this summer season as the steep tourism recovery identified them with personnel shortages and soaring inflation inspired cabin crews and pilots to desire greater wages and superior doing the job problems.

Ryanair (RYA.I), the airline that carried the most travellers with a 22.3% industry share for the duration of the period of time, experienced to offer with cabin crew strikes through numerous days in July. Unions USO and SITCPLA announced more strikes at Ryanair lasting until finally January.

Second-quarter income was somewhat under the consensus forecast, predominantly mainly because of strength charges, Sabadell analysts said in a take note to clientele.

Aena’s shares fell as considerably as 7.7% throughout the morning, touching their lowest given that November 2020, and have been nevertheless 3.5% down in the afternoon.

The firm’s income from duty-no cost store rents fell 67.4% in the first half when compared with 2021, because of to regulations imposed past year forcing it to hold rents for retail tenants down when targeted visitors has not absolutely recovered from the pandemic.

($1 = .9857 euros)

Reporting by Inti Landauro and Corina Pons Additional reporting by Joao Manuel Vicente Editing by Mark Potter and David Holmes

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