Aeroméxico Drops $80.4 in Value Over Two Days

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Mexico’s flag carrier airline, Aeroméxico, experienced massive losses at the end of last week, losing more than $80.4 million in value over the course of two days and dropping stock prices to 1.66 pesos per share, the airline’s lowest share price in history.

While having a $118.6 million market share as of Wednesday, Dec. 15, Aeroméxico lost 67.8 percent of its value over the next two days to settle at a $38.1 million market share on Friday, Dec. 17. The huge decline resulted in Aeroméxico stopping its listing on the Mexican Stock Exchange (BMV) for four hours on Friday, resuming the listing at 1:00 p.m. in Mexico City, though the move did not alter the company’s losses on paper.

The valuation volatility was reportedly brought on by the announcement of an unrelated company’s request for a Public Offering of Share Acquisition (OPA) of Aeroméxico, something Monex Casa de Bolsa analyst Brian Rodríguez anticipates to continue until the OPA is completed.

The unnamed company is purportedly offering to buy stakes in Aeroméxico at one peso per share, with the potential to acquire close to 331 million shares given U.S. airline Delta’s 49 percent ownership stake in Aeroméxico that is not expected to budge, following Aeroméxico’s file for Chapter 11 bankruptcy in the United States in June 2020.

After the travel limitations brought on by the covid-19 pandemic, Aeroméxico lost its crown as the most-trafficked Mexican airline to rival Volaris, and has likewise been incapable of returning to pre-pandemic passenger numbers, currently moving 21.7 percent less people than before.

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