Grupo Aeromexico's stock plummeted 9.51% during intraday trading on Monday, as the airline and other Mexican carriers faced significant pressure following a wave of violence in the country.
The sharp decline comes after several airlines, including Aeromexico, halted flights as a preventive measure following episodes of violence that occurred after the capture and death of a top Mexican crime boss. Popular tourist destinations such as Guadalajara and Puerto Vallarta experienced roadblocks and incidents of vehicles and businesses being set on fire over the weekend.
Mexican President Claudia Sheinbaum stated that some flights were suspended by the airlines themselves, particularly to Puerto Vallarta, with hopes that services would be restored by Tuesday. The broader market impact was also evident, with Mexico's peso declining 0.5% and the main stock index down 1%.
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