Mexico Stocks Drop as a Result of Airport Fee Changes

With an unexpected modification to the concession agreements for airports, Mexican President Andres Manuel Lopez Obrador extended his broadside attack on the nation’s commercial interests, which sent equities falling and put pressure on the currency.

The benchmark stock index dropped as high as 4.4% on Thursday in response to the unexpected revelation, which businesses did not disclose and which the government has not yet confirmed. This was the largest intraday decline since March 2020. The poorest result among developing market currencies was the peso’s 1.7% decline.

According to a person with knowledge of the situation, the modifications will have an impact on the entire tariff system, which includes passenger taxes, airport services for use of runways, and leasing spaces to airlines and suppliers. The paperwork the government gave was not totally clear, the individual said, asking to remain anonymous because the conversation involved private information, and the enterprises are waiting to meet with the Infrastructure, Communications and Transport Ministry to understand the impact on operations.

Stocks were led lower by Grupo Aeroportuario del Centro Norte SAB (OMA) shares, which fell as high as 44% before cutting their losses to a record 26%. GAP, or Grupo Aeroportuario del Pacifico SAB, experienced a decline of more than 22%, which is also the largest since its listing in 2006. Asur, or Grupo Aeroportuario del Sureste SAB, suffered a loss of around 17%. The benchmark index finished 2.5% lower than where it had started early January.

In a statement made to the regional regulator after-hours on Wednesday, GAP claimed that the national aviation agency altered the price structure pertaining to its airports «unilaterally and without prior communication.» The so-called TUAs, or passenger fees for airport use, account for a sizable portion of the income for airport operators in Mexico.