The violent reaction following the death of cartel leader Nemesio Oseguera Cervantes resulted in significant financial losses for Mexican airlines and airport groups due to flight cancellations and security concerns.
On February 22, a violent response across Mexico unfolded after the death of Nemesio Oseguera Cervantes, known as ‘El Mencho,’ leader of the Jalisco New Generation Cartel (CJNG). Reports indicated that there were 252 roadblocks across 20 states, leading to widespread unrest. This turmoil prompted the cancellation of nearly 300 flights, primarily affecting major airports in Guadalajara, Puerto Vallarta, and Tepic, as safety concerns escalated. As airlines and airport operations halted in response to the violence, the financial ramifications quickly became evident.
The financial impact included a staggering loss of over 28 billion pesos in market capitalization for airlines and airport groups in just one day as their stock prices plummeted. This situation highlights the direct link between political and social unrest in Mexico and its immediate economic effects on vital sectors such as air travel and tourism. Airline companies, including Aeroméxico, reported that they would begin to reinstate operations gradually the following day, but fears around safety still loomed over travelers and airline operations alike.
The losses experienced highlight a deeper issue regarding the influence of drug cartels on national stability and economic viability. With leaders of powerful cartels being targeted by authorities, the subsequent retaliations fuel further violence, impacting everyday life and commerce. The actions of the CJNG and the aftermath of ‘El Mencho’s’ death serve as a stark reminder of the volatile nature of security in Mexico, which continues to pose a challenge for both citizens and the economy.
