Mexican Government to Raise Airport Concession Fees

By Anthony Harrup

MEXICO CITY--The Mexican government reached agreement with private airport operators on adjustments in tariff regulations and an increase in concession fees, the Infrastructure, Communications and Transport ministry said Thursday.

The agreement includes Grupo Aeroportuario del Sureste, known as Asur, which operates nine airports including Cancún; Grupo Aeroportuario del Pacífico, or GAP, whose airports include Tijuana and Los Cabos; and Grupo Aeroportuario Centro Norte, or OMA, which runs Monterrey and other airports.

The ministry said the tariff regulations and fees have been unchanged since 2000, "despite dynamic changes in the aviation sector." Concession fees will rise to 9% of the airport groups' gross income from 5%, it added.

It said the changes will benefit travelers by reducing the cost of airport services that have an effect on airfares, without having a negative effect on the financial or operating situation of the airport groups.

"Although it is unclear how authorities might use the extra windfall, it is possible that these proceeds could fund other aspects of Mexico's aviation system," Citi Research analyst Stephen Trent said in a note. "Overall, this development looks negative for the group, but also at least somewhat priced in, following the recent, significant share price selloffs."

Shares in the airport groups, which fell sharply earlier this month on news of impending changes, were mostly lower Thursday, with Asur down 2.2% and GAP shares down 2.9%. OMA shares were up 0.1%.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

October 19, 2023 15:02 ET (19:02 GMT)

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