Bankinter | The UK’s Civil Aviation Authority (CAA) has proposed that the landing fees at Heathrow be cut from 30.19 pounds per passenger to 26.31 pounds in 2026. This would imply a 2.6% annual decline over the next five years. The CAA believes this will allow for a balance between allowing the aiport to invest in infraestructure and maintaining fees at levels which customers can afford.
Bankinter analysts team’s opinion:
Bad news for Ferrovial. Although this is just a proposal, it is highly likely that Heathrow will have to lower its charges in the next few years. We will know the final decision in August. If it is confirmed, the airport would be in a more vulnerable situation, against a backdrop of strong inflationary pressures on costs. This will weigh on operating results, despite the strong recovery expected in passenger numbers. We see the news having a negative, although moderate, impact on Ferrovial’s share price. The Spanish infrastructure group has a 25% stake in the UK airport, accounting for less than 5% of its total valuation. We maintain our Buy recommendation. The motorways, which account for nearly 80% of its valuation, will benefit both from the recovery in traffic and the increase in tariffs, offering some protection against inflation.