Spanish airport group Aena back in black despite energy costs

MADRID (Reuters) -Spanish airport operator Aena returned to profit in the first half of this year after pandemic-related travel restrictions plunged it into the red for two years, though soaring energy costs hampered the recovery.

The company made a net profit of 164 million euros ($166 million) in the period compared with a net loss of 364 million euros in the first half of last year, on revenue that doubled to 1.69 billion euros.

Aena said that even though revenue soared thanks to rising aircraft traffic, its expenses rose 40% during the half year to 1 billion euros, largely due to higher energy bills.

The airport operator also said airlines had reduced their summer capacity to 200 million passengers down from a previously announced 216 million.

Most airlines are dogged by labour strife this summer as the steep tourism recovery found them with staff shortages and soaring inflation encouraged cabin crews and pilots to demand higher wages and better working conditions.

Ryanair, the airline that carried the most passengers with a 22.3% market share during the period, had to deal with cabin crew strikes during several days in July. Union USO called for more strikes at Ryanair spanning until January.

Second-quarter revenue was slightly below the consensus forecast, mainly because of energy costs, Sabadell analysts said in a note to clients.

Aena’s shares fell 3.7% in early trading, among the worst performers on the EuroStoxx 600.

The number of passengers moving through Spain’s airports in the first six months of the year increased to 104.9 million, 82% of the level in the first half of 2019.

Aena’s revenue from duty free shop rents fell 67.4% in the first half compared with 2021, due to regulation imposed last year forcing it to keep rents for retail tenants down while traffic has not fully recovered from the pandemic.

($1 = 0.9857 euros)

(Reporting by Inti Landauro and Corina PonsEditing by Louise Heavens and Mark Potter)