The actions of you will flythe low-cost Mexican airline, rebounded 10.93%, to 22.73 pesos per unit this Thursday on the Mexican Stock Exchange (BMV), one day after it was announced that the proposal to allow air cabotage in Mexico (with which foreign airlines could carry out flights within the country) was discarded within the initiative to modify the Civil Aviation Lawwhich was publicly revealed in December 2022.
This news was celebrated by the market, which was reflected in a gain for the value of the airline in the BMV of 2,612 million pesos in the session this Thursday.
However, analysts considered that the reaction in the price of Volaris’s shares in the stock market was somewhat delayed, since it was this Wednesday, April 12, when the president Andres Manuel Lopez Obrador reported the fact, a session in which Volaris shares contracted 0.77 percent.
“What was sent or is about to be sent is no longer related to cabotage, so that those who were concerned about it can celebrate it,” said the federal executive at a press conference, referring to the proposed changes to the Civil Aviation Law.
The increase in Volaris shares “is a rebound linked to uncertainty about the proposal to have cabotage and greater competition for Mexican airlines (although) it is a somewhat delayed movement because the information was released yesterday,” he explained. Ramon Ortizanalyst at Actinver Casa de Bolsa.
brian rodriguezan analyst at Monex Casa de Bolsa, expressed the same opinion and highlighted that by eliminating the cabotage chapter in the initiative to reform the Civil Aviation Law, there is less concern about greater competition for national airlines because foreign airlines will not be able to fly within Mexican territory.
For their part, the shares of the airport groups ended the session this Thursday in the local stock market with slight falls, below 1 percent.
The paper of Southeast Airport Group (Asur) fell 0.75% on the BMV; while the one of the Pacific Airport Group (GAP) contracted 0.35% and the North Center Airport Group (OMA) fell 0.30 percent.
