In February 1998, the Mexican government issued the Investment Guidelines for the Opening of Investment in the Mexican Airport System. Under these guidelines, the Ministry of Communications and Transportation identified 35 of Mexico\'s 58 principal airports as being suitable for investment. These 35 airports were divided into four groups: the Pacific Group (consisting of 12 airports), Grupo Aeroportuario del Sureste, or the Southeast Group (consisting of nine airports), Grupo Aeroportuario de la Ciudad de Mexico, D.F., or the Mexico City Group (currently consisting of one airport) and Grupo Aeroportuario del Centro-Norte, or the Central-North Group (consisting of 13 airports). The guidelines generally provide for the airport groups to become open to investment through a two-stage program.

In the first stage, a series of public bidding processes were conducted to award a minority interest in each airport group (except the Mexico City Group) to a strategic stockholder. In the second stage, all or a portion of the remaining interest in each airport group is proposed to be sold through public offerings in the Mexican and international capital markets. To date, the government has completed the first stage of this process.

In 1998, a 15% interest in the Southeast Group was awarded to a consortium including Copenhagen Airports, A/S, the Danish airport operator, and, in 2000, a 15% interest in the Central-North Group, was awarded to a consortium including Aeroports de Paris, the French airport operator. The Southeast Group conducted the second stage with a global public offering of shares and ADSs in September 2000 and, in March 2005, sold the remaining 11.08% held by the Mexican government in a local public offering of shares in Mexico.

The Company’s airports handled approximately 17.5 million and 14.3 million terminal passengers in 2004 and the first nine months of 2005, respectively. Six of the Company’s airports rank among the top ten busiest airports in Mexico based on commercial aviation passenger traffic, according to data published by the Mexican Bureau of Civil Aviation for 2004.

The Company’s airports serve several major international routes, including Guadalajara—Los Angeles, which ranks as the second busiest international route in Mexico by total number of passengers according to the Mexican Bureau of Civil Aviation. In addition, the Company’s airports serve major resort destinations such as Puerto Vallarta and Los Cabos, which are among the most popular destinations in Mexico visited by tourists from California. The Company’s airports also serve major domestic routes, including Guadalajara—Mexico City, which was the country\'s third busiest route in 2004, handling over 1.4 million total passengers that year, according to the Mexican Bureau of Civil Aviation. Other top-five domestic routes in terms of total passenger traffic include Mexico City—Tijuana and Guadalajara—Tijuana, according to the Mexican Bureau of Civil Aviation.

Mexico and the United States have recently concluded negotiations to enter into an amended bilateral aviation agreement that increases, from two each to three each, the number of Mexican and U.S. carriers eligible to operate routes between certain pairs of cities, which may include any U.S. city and twelve specified cities in Mexico, including the Company’s airports in Manzanillo, Puerto Vallarta and Los Cabos. These changes are expected take effect once the amended bilateral agreement is executed, which is expected to occur in January 2006. The agreement also provides for a future increase, from two each to three each, in the number of Mexican and U.S. carriers eligible to operate routes between U.S. cities and two specified additional Mexican cities, including Guadalajara. This subsequent increase is expected to take effect in October 2007.

Costs of services decreased 2.1% in the first nine months of 2005 as compared to the first nine months of 2004.

Operating income increased 31.4% to Ps. 833.8 million in the first nine months of 2005, as compared to Ps. 634.6 million in the first nine months in 2004.

Net comprehensive financing result for the first nine months of 2005 generated income of Ps. 24.5 million, as compared to an expense of Ps. 1.8 million in the first nine months of 2004.

Consolidated net income increased 46.5% in the first nine months of 2005, to Ps. 521.2 million, from Ps. 355.9 million in the first nine months of 2004.