OMA sees EBITDA margin up to 60 pct

By Cyntia Barrera Diaz and Noel Randewich

MEXICO CITY (Reuters) - Mexican airport operator OMA sees its profit margin rising to 60 percent by 2010 from 54 percent and is evaluating expansion, possibly into Central America, the company's chief executive said on Friday.

OMA (OMAB.O) has plenty of capacity for higher volume at most of its 13 airports in northern and central Mexico and expects to boost passenger traffic up to 14 percent this year, Chief Executive Ruben Lopez said at the Reuters Latin American Investment Summit in Mexico City.

He said OMA, also known as Grupo Aeroportuario Centro Norte, was evaluating international expansion with an eye on Central America but not the United States.

"This is a year to study other alternatives, other options that are in line with OMA's (current) airports," he said. "If there are opportunities abroad, why not?"

Linking airline routes with other regions in Latin America would help lift OMA's international traffic, which currently contributes 20 percent of total passengers per year.

Locally, OMA (OMAB.MX), privatized in a $434 million share offering last November, will expand its airport in the northern business city of Monterrey by building a new terminal.

"We are reaching a certain level at the Monterrey airport that it will require ... larger infrastructure," Lopez said. "This year, we will start the construction of a 1.5 million passenger terminal."

The new terminal is expected to begin operations in the second half of 2008, he said.

LOW-COST BOOST

The launch of six low-cost carriers in Mexico since December 2005 has helped boost traffic at the country's airports, but there is still a lot of room for growth, Lopez said.

"If we look at Mexico's number of passengers traveling by air versus population, it is still one of the lowest ratios compared to other countries where low cost airlines have entered," he said.

In Mexico, a country of 104 million people, the equivalent of about 40 percent of its population takes a plane every year. In other countries like Spain, Brazil and the United States, the passenger-versus-population ratio is at least two times greater.

Lopez forecast that Mexico's annual passenger traffic would double in five years.

OMA served 11.8 million passengers in its airports last year and is one of three major airport operators in Mexico.

Grupo Aeroportuario del Pacifico (GAPB.MX) (PAC.N) is the country's largest operator, followed by Grupo Aeroportuario del Sureste (ASURB.MX) (ASR.N) and OMA.

OMA shares were up 0.80 percent at 36.60 pesos while its New York-traded shares rose 0.23 percent to $26.52.