The outbreak of the swine flu virus in Mexico and the risk of a pandemic across the globe is expected to result in travel restrictions to and from Mexico. Consequently, we expect a significant decline in passenger traffic at Grupo Aeroportuario del Sureste, S.A.B. de C.V.’s (ASUR) airports. Given the high perceived risk, we downgrade the ASUR common stock from a BUY to a SELL, although the target price does not support a SELL rating....

The world’s aviation business continues to suffer from the current economic slowdown. According to the Airports Council International, global air passenger traffic declined 2.6% y-o-y on a Trailing Twelve Month (TTM) basis as of February 2009. This decline was accentuated by a 3.6% y-o-y TTM decline in global domestic airport traffic as of February 2009....

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Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) common stock achieved our target price, reflecting growth in ASUR’s passenger traffic in the month of November. As a result, we downgrade the ASUR common stock from a BUY to a HOLD. As we continue to expect negative currency impact on the ADR over the medium term and given our fundamental outlook and current price levels, we downgrade the ADR from a HOLD to a SELL....