ADP Says Low-Cost Growth Offsets Weak Asia Demand

French airport operator ADP’s retail revenue fell in the first half as attacks in Europe deterred people from Asia but confirmed its forecast for traffic growth for the year thanks to growth by low cost carriers.

"We are seeing good traffic volumes in Paris, what we are seeing is a shift in the type of traffic," Chief Financial Officer Philippe Pascal said, adding that low cost traffic was up by 11.3 percent in the first half.

Earlier, travel data analysis company ForwardKeys said demand for air travel to France and Nice, the country's second most popular destination after Paris, has dropped again after the attack that killed 84 people in the city on July 14.

But Pascal said the growth of low cost carriers such as Air France-KLM unit Transavia and IAG-owned Vueling meant the group expected it could achieve passenger growth at its Paris airports of 2.3 percent this year compared with 2015.

While ADP confirmed its EBITDA forecast to rise slightly this year, it said net profit attributable to the group would now fall due to the difficulties experienced by Turkish airports group TAV, in which ADP owns a 38 percent stake.