As expected, this was an excellent quarter with better strong passenger traffic growth of 26.8% year-on-year. This compared with the decline of 27% in the second quarter for 2009 and the 3.6% in third quarter 2010.Within the quarter, traffic sales were 0.9% in April, bouncing back to an 85.5% increase in May and 25.5% in June. The 27.8% recovery in international traffic over the last year's weak figures which were affected by the H1N1influenza outbreak in April 2009 and the economic crisis was a key factor guiding this performance. All efforts with the exception of Oaxaca, reported international traffic passenger count. Domestic passenger traffic also contributed to the increase, although at the lower growth rate than by the high domestic airlines fares and there's no economic recovery. All airports reported domestic traffic growth with the exception of Tapachula. In fact, this was Cancún airport's third consecutive quarter of positive domestic passenger traffic since the Influenza outbreak last year. And of course, traffic also benefited from the recovery of domestic routes lost in November 2008, when ALMA Airlines ceased operations. As a result, international passenger traffic rose to 59% to total traffic from 54% in second quarter 2009. Passenger traffic between Mexico, Canada and the United States represented 78% of total traffic compared with the 64% in second quarter 2009. Looking ahead, we expect positive traffic figures driven basically by each of the year-over-year [accounts]. Total revenues increased 32.5% this quarter, driven by the increase of 34.1% in aeronautical revenues and 29.6% in non-aeronautical revenues. Commercial revenues per passenger were quite strong, up 30.9% year-on-year, 61.17 pesos, and very close to the record high of 61.34 pesos achieved in fourth quarter 2009. This compares with a 59.29 per passenger in second quarter 2009. We also continued expanding commercial space adding five new currency exchange spaces in Mexico at our smaller airports. Operating cost and expenses rose 11.5% year-on-year this quarter. Additional, energy consumption from operation of the secondary implemented launched the last October largely cheap strategy behind this cost increase.
But we continue to focus on maintaining a lean cost structure throughout the company. Operational profit for the quarter rose an impressive 70.2% to 414 million pesos and the increasing revenues more than offset the higher costs. Operating margin increased 1019 basis points to 46.1%; EBITDA margin was also strong up 373 basis points to 62.8%. This quarter we made capital investments of 123.4 million pesos as we continued with permanent appraisals in that was the Veracruz, Villahermosa and Oaxaca airports begun in the first quarter of this year. In terms of our balance sheet, cash and short term investments at the end of the quarter declined 31.2% to 670 million pesos as we paid 750 million pesos in cash free dividend and made capital payments of 309 million pesos in bank debt this quarter.In fact total bank depth at the closing of the quarter sales was 181.8 million pesos. Before opening the floor for questions let me briefly discuss a couple of recent events. On May 11, the ASUR team launched the in process work of the concessions for the construction of operation and management of the international airport in Tulum into the Mayan region. We are interested in participating in the process, but this is all what we can share with you at the moment. This is a confidential process and any comments on our part could result in our disqualification from the bidding process. We expect that the agency will announce a final decision late this year or early 2011. As announced in June 22, company investments have been in terms and agreements to sell its 49% interest in income. Our strategic shareholders to its local Mexican business partner and ASUR, CEO and Chairman Mr. Fernando Chico Pardo. Read the rest of this transcript for free on seekingalpha.com