Aeroméxico Reports 9% Drop in June Passenger Traffic

Jefferies initiated coverage of Grupo Aeromexico with a Hold rating and $20 price target. The U.S. and Iran conflict de-escalation has improved the near term sector outlook for Latin American airlines, says the analyst, who still sees a case for traffic decelerating due to sluggish economic growth in Latin America. In the mid-term, however, the firm sees the sector being supported by increasing air travel penetration and more rational competition, the analyst added.