OMAB Passenger Traffic Down 12.4%

Last week, Grupo Aeroportuario del Centro Norte S.A. de C.V. (OMAB - Snapshot Report) announced a decrease of 12.4% in total passenger traffic for October, compared to the year-ago period.
 
Domestic passenger traffic decreased 11.6%, while international passenger traffic decreased 17% compared to October 2008.
 
The decline in domestic passenger traffic resulted mainly from the suspension of Aviacsa (suspended since July 6, 2009), the departure from the markets of Alma and Aladia, and a reduction in traffic on Interjet and Magnicharter. The Monterrey, Acapulco, and Ciudad Juarez airports also had the largest traffic reductions.
 
International traffic decreased principally because of the cancellation of international routes by Continental, Grupo Aeromexico, and Alaska Airlines, in addition to the suspension of Aviacsa. The Monterrey, Mazatlan, Acapulco, and San Luis Potosi airports were the most affected.
 
Airlines all over the world are facing difficulties, primarily due to the collapse of the global economy. Declining business and leisure travel is affecting airlines' business to a larger extent.
 
Moreover, the Mexican economy could face a tight money period in the upcoming quarters as the Bank of Mexico recently lowered its benchmark interest rate by just 25 basis points to 4.5%, reducing the scope for further rate cuts. The Mexican economy is rapidly slowing down and the trend is likely to continue in the short term. Thus, it certainly would be a difficult year for OMAB, Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASR - Analyst Report) and Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (PAC - Analyst Report).
 
It seems that odds are against the Mexican tourism industry in the very short-term, mainly considering the difficult economic conditions in the U.S.