Mexico stocks sink after government alters airport fees

Mexican stocks sank after the government unexpectedly moved to change concession agreements of airport operators, the latest challenge by President Andres Manuel Lopez Obrador to business interests. The benchmark stock index fell more than 4.4%, the most intraday since March 2020. Grupo Aeroportuario del Sureste SAB, Grupo Aeroportuario del Pacifico SAB, and Grupo Aeroportuario del Centro Norte SAB shares tumbled as much as 44%. For the latter, known GAP and OMA, respectively, it was the worst intraday drop on record. The national aviation agency “unilaterally and without prior communication” modified the fee structure related to its airports, GAP said in a statement sent to the local regulator after-hours on Wednesday. A large part of airport operators’ revenues in Mexico come from so-called TUAs, or passenger fees for airport use. It wasn’t immediately clear what changes the government had made, and the companies didn’t elaborate. GAP, Asur and OMA said in filings that they are evaluating the effect of the changes on their operations. A spokesman for the infrastructure, communications and transport ministry didn’t reply to a request for comment.<br/>