OMAB - Just when you thought it was safe to go back in the water
Man when it rains on OMAB, it pours. In addition to the headwinds of a slowdown in consumer spending and higher gas prices that I have mentioned previously, OMAB now has another problem...sharks.
A number of surprising shark attacks, two of them fatal, are hurting the tourism business in Zihuatanejo and Acapulco. Both of the airports in these areas are run by OMAB. To put how unusual these attacks are in perspective, there is an average of only four fatal shark attacks each year in the entire world and there has only been one outside of Mexico so far in 2008. Any negative publicity that hurts tourism in these areas hurts OMAB. Fortunately, this issue only impacts two of the company's airports and unless this is the start of a trend of more aggressive sharks in the area or it significantly damages these areas' reputations this is probably only a temporary problem, but it is one that may end up hurting traffic levels this summer. Normally I would look at any dip that might be caused by something like this as a buying opportunity, but as I mentioned earlier Mexican airports have much bigger problems than this.
3 shark attacks hurt tourism in Mexican resort area
my previous posts on the subject:
Only two airlines that serve Mexico are currently breaking even with $100 oil
Say Adios to Mexican Airport Stocks
No position in OMAB