SHARES of Shanghai International Airport Co tumbled in Shanghai yesterday after it disclosed its profit declined 17 percent in the first quarter of this year.

Its earnings dropped to 323 million yuan (US$46 million), or 0.17 yuan per share, in the quarter from a year earlier while its sales rose 2 percent to 746.3 million yuan, the company said in a statement to the Shanghai Stock Exchange yesterday.

Its share price fell 8.23 percent to end at 20.85 yuan yesterday while the Shanghai Composite Index declined 2.33 percent to 3,474.72 points.

The company, operator of Pudong International Airport, said in an earlier report that its revenue this year may shrink 10 percent after the aviation watchdog cut landing and take-off fees by foreign and domestic airlines in March.

"The operation of a new terminal and runway is expected to cost the company 480 million yuan this year, rising 33 percent from a year earlier," said GF Securities analyst Zhuo Yue.

"Non-aviation-related operations will take a bigger role in Shanghai Airport's development as its commercial area more than tripled to 29,000 square meters after new facilities were put into use" in Terminal 2, Zhuo said.

Wu Nianzu, chairman of its parent Shanghai Airport Authority, has said the group aims for a 50-percent contribution from non-aviation-related business to its revenue in coming years, up from 30 percent.

The group, which operates the city's Hongqiao and Pudong airports, is on track for a group listing but the timetable has not been decided.