Mexico's Volaris extends losses after govt plan boosting international airlines

Controladora Vuela Compania de Aviacion SAB de CV

19/12/2022 21:08

Dec 19 (Reuters) -    ** Shares in Mexican airline
Volaris  VOLARA.MX  slip over 3% Monday, their third consecutive
day of losses after the presentation of a plan to allow
international airlines to fly domestic routes by the government
    ** Volaris' stock has lost nearly 11% since the legislative
proposal from Mexican president was published on Thursday; it is
now being analyzed by lawmakers
    ** "The news could imply a significant period of volatility
for listed companies in the sector," say analysts at Monex
    ** Monex analysts say the new model could give advantages to
foreign airlines over local operators, and increase costs for
local airlines since routes might change
    ** Mexico's main air transport association Canaero and
pilots' union ASPA warn plan would put thousands of jobs at risk
in a sector that has just recovered from the COVID-19 pandemic
 (Reporting by Noe Torres; Writing by Valentine Hilaire; Editing
by Sarah Morland)
 ((Valentine.Hilaire@thomsonreuters.com;))