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We remain positive on providing an outstanding experience to all passengers at our nine concessions in Mexico while continuing to drive growth, efficiencies and profitability. For example, one of our main objectives is to continuously improve the commercial offering for the airports. This quarter, commercial revenues for passenger reached Ps.64.39, a year-over-year increase of more than 7%. As we have announced before, it is our intention to use our strong balance sheet to increase leverage to personifying traffic for the year. In fact, during the quarter we have paid a loan for a conservative of Ps50 million.At the same time, we are seeking new attractive investment opportunities in Latin America airport market, to cut the lines somewhere core strength and maximize region on our own investment future progress. But keep in mind, we could be analyzing the public bidding documents issued by the Brazilian government for the Brasilia, Direct Airport Service. For the time being, all that we can say is that the possibility of finding an attractive business is very low. We have also established a 50-50 aligned with the Tristar capital to participate in the bidding process for the privatization of the Tercuanto Porico de Nacional Airport. Now we are among the places that have been short-listed by the government to continue the bidding process. We’re also seeking opportunity to Latin America to check and disclose at the moment. I’m glad to announce that today we will have our third direct flight with a regular carrier from Cancún to Paris, operated by airports. Turning now to the results, this was a very good quarter. Passenger traffic increased 8.15% year-over-year with 13 easy traffic on parcels mainly in terms of the domestic traffic. Traffic was up by 0.8% in July, 4.2% in August and 18.4% in September. Despite the start of strong traffic performance, the deduction of medical operations and the dispensation of the reacting in 2010, traffic remained in low previous levels with a lack of domestic airlines seat capacity.
At Cancún however, domestic traffic has reached a new historical peak despite the Mexicana effect. International traffic was, in our opinion, very strong this quarter particularly during the month of September which was the high and events of passenger traffic process. The share of international passenger traffic fell to 51.2% of the total traffic from 52.9% in the third quarter 2010.Passenger traffic between Mexico, Canada and the United States represented 80% – 87% of the total traffic compared with 87 process since a year ago. Looking ahead, we continue to see capacity constraints on domestic market particularly at the small airports until the end of the year 2012. Even in Mexicana and Aviacsa reinstate operations this year. On international front, considering the cold uncertainties and the economic turmoil, the third quarter was a quite mood and even difficult to predict whether this will continue. Consolidated revenues rose 9.8% this quarter driven by revenue growth across the board. Excluding construction services, total revenue would have increased 13%. Commercial revenues per passenger were up to Ps64.4, the third highest ever – profit ever. Operating cost and expenses fell 15.2% year-on-year, mainly due to the cost of services. Remember that that as a result of the bankruptcy of Mexicana in the third quarter 2010, we have created our reserve, we adopted accounts which did not impact this quarter results. As a result, EBITDA rose 44.9% this quarter with EBITDA margin up to 56.1% from the 42.5% achieved in the second quarter 2010. In terms of CapEx, this quarter we invested Ps.144.6 million as we continue with the terminal expansions in the Veracruz, Villahermorsa, Merida and Oaxaca airports regarding the first quarter 2010. Finally, we closed this quarter with a strong balance sheet with cash and cash equivalents up to 13.2% to Ps. 1.7 billion while the bank debt was Ps. 788.5 million. Read the rest of this transcript for free on seekingalpha.com