subject: Cancun Real Estate Success Reflected in Airport Profits [print this page] Cancun Real Estate Success Reflected in Airport Profits
It's important news for those who own or are thinking about buying Cancun real estate that operator of the Cancun International Airport is seeing a super recovery in profits; this is, in just about every way, good news.
The Mexican airport operator ASUR posted a 74% rise in net profit in the fourth quarter of 2010, compared to the same period in 2009, when the company suffered a slump in passenger traffic due to the recession and an outbreak of influenza.
For the Cancun real estate market this points to several direct and indirect benefits, including:
Recovery in Tourism. Recovery of profits means that tourist numbers arriving by air by far the most significant for Cancun are also recovering. Cancun's lifestyle and activities are largely dependent on the area's success as a tourist destination.
Large-Scale Investment. The recovery and growth of tourism means that in general, Cancun will continue to draw large-scale investment from both private and government sources, likewise improving lifestyle, and offering more high-quality real estate options.
Ongoing Airport Improvements. The airport was recently expanded with a second runway, designed in parallel to run simultaneously to the existing runway. New services, modern terminals and other benefits have made travel more comfortable; new direct flights, including more from discount airlines, have been appearing. Stronger profits means these investments will continue.
Ongoing Accessible Prices. The profitability of the airport means that the well-priced flights in the airport will continue to affordable. The airport fees in Cancun are relatively accessible, which is a huge advantage in flight affordability.
ASUR operates nine airports in southeastern Mexico, the busiest and most profitable of which is Cancun. The net profit was 278.16 million pesos ($22.6 million dollars) in the October-December period.
Total passenger traffic at its terminals in the fourth quarter increased 1.69% a year. Passenger traffic for domestic passengers was reduced by 1.27% and for international passengers it increased 4.23%
ASUR reported that total revenues increased by 58.32% in the period to 1.19 billion pesos (approx. $900 million USD), mainly due to the inclusion of revenues from the construction or improvement of assets under concession.
Passenger traffic at Mexican airports is recovering from sharp falls due to the economic downturn during 2009, and ASUR has fared among the best.
