The FIFA World Cup failed to provide the anticipated lift for Mexico’s struggling airport sector, as major operators reported disappointing June passenger traffic figures that sent their shares lower on Tuesday.
Grupo Aeroportuario del Pacifico (GAP) reported a 5.1% year-on-year decline in terminal passengers, while Grupo Aeroportuario del Sureste (ASUR) recorded an 8.5% drop in total passenger traffic in Mexico, with international travel posting the steepest fall.
“The market was not going to pay much attention to traffic performance during the FIFA World Cup month, as it was meant to be a one-time boost,” Bradesco BBI analyst Rodolfo Ramos wrote in a report. “However, now that the three Mexican airport groups have reported their June traffic figures, it is clear that the headwinds that have plagued the industry will likely take longer to dissipate.”
The weak performance highlights ongoing challenges facing Mexico’s tourism industry, including elevated airfares driven by higher jet fuel prices and security concerns that intensified after the killing of drug kingpin Nemesio Oseguera Cervantes, known as El Mencho, in February.
Following his death, criminal groups reportedly launched blockades, burned vehicles and attacked businesses across several cities, prompting travel advisories from countries including the United States and Canada.
“Mexico’s tourism sector continues to be plagued by challenges that are persisting longer than we initially expected, such as seat supply constraints from a slower return of P&W engines, concerns around insecurity, US immigration policies, sargassum in the Caribbean and the recent spike in jet fuel prices,” he added.
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