OMAB - Mexican airport operator stocks slump on regulatory changes to tariff rules

2023-10-05 14:12:11 ET

Shares of Mexican airport operators plummeted on Thursday, after the country's civil aviation regulator announced changes to tariff regulations.

Grupo Aeroportuario del Sureste ( NYSE: ASR ), or Asur, was down 19.1% in afternoon trade, Grupo Aeroportuario del Pacífico ( NYSE: PAC ) was lower by 23% and Grupo Aeroportuario del Centro Norte ( NASDAQ: OMAB ) retreated 30.1% .

The stocks had climbed back up slightly from their session lows, with Asur earlier nosediving as much as ~32%, PAC as much as ~34% and OMAB as much as ~43%. The volatility led to the stocks being briefly halted earlier.

The broader Mexican market was also impacted. The country's main stock index slid nearly 4.5% at one point. Meanwhile, the iShares MSCI Mexico ETF ( EWW ) was down about 4% .

The three airport operators after hours on Wednesday disclosed the news in separate regulatory filings.

Asur , PAC and OMAB said they were notified by Mexico's Federal Civil Aviation Agency (Agencia Federal de Aviación Civil) of a decision to amend with immediate effect the terms of their tariff base regulation, without providing specific details.

The tariff changes were to the formula that sets price caps for airport tariffs, including the passenger fee known as the TUA, Bloomberg News reported , citing a person familiar with the matter.

The three airport operators said they were evaluating the regulation changes and its potential impact.

More on Asur, PAC and OMAB

• Grupo Aeroportuario Del Sureste: New Tulum Airport Isn't A Major Competitive Threat
• ASUR shows ~4% Y/Y rise in passenger traffic during August
• Grupo Aeroportuario del Pacífico Remains A Buy
• Grupo Aeroportuario del Pacífico August traffic up 14.1%
• Grupo Aeroportuario del Centro Norte: Recovery Not Yet Complete

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