(Dec 11): Shares in the operator of Paris’ main airports rose by the most since April after the group said it would invest €8.4 billion by 2034 to help boost capacity and compete with growing hubs in the Middle East.
Aeroports de Paris SA (ADP) increased on Thursday by as much as 3.9%, the most in intraday trading since April 10. The company expects to start spending in 2027 with the aim to accommodate another 18 million passengers at Charles de Gaulle and Orly airports. A proposed increase in airport charges would help pay for the plan.
ADP previously said it would spend at least €3.5 billion by 2035 to extend and upgrade the three existing terminals at Charles de Gaulle, adding more departure lounges and train lines. The Paris hub has fallen to seventh worldwide in terms of connecting traffic, behind airports in the Middle East.
The project is “a way to win competitiveness in this new challenging cycle for this industry,” Chief executive officer Philippe Pascal said during an investor presentation on Thursday.
Paris airports are being squeezed by rising costs from inflation and industry taxes, ADP said in a statement on Wednesday. The new plan also furthers the facilities’ transition towards more sustainable targets.
The operator, in which the French government holds a 51% stake, expects passenger traffic in Paris to grow by about 1.6% per year between 2026 and 2034, compared with 2.3% annually before the pandemic.
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Some major European airlines are struggling to reach pollution-reduction targets, with several warning that ticket prices likely will rise to help pay for sustainable aviation fuel.
The operator also plans to implement a cost-saving program of €130 million by 2034. The combined measures would allow ADP to maintain a dividend floor of €3 per share.
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