Aeroméxico Buyback Pushes Up Share Price

Mexican airline group Aeroméxico’s announcement of a share buyback to reduce its share capital and distribute $125 million to its shareholders pushed up the company’s share price over 15% during trading Friday. The money used to fund the buyback will come from the sale last December of its airline Mexicana de Aviación, which raised $165.5 million. Meanwhile, the government, which owns a majority stake in Aeroméxico, has indicated that it may postpone until next year the privatization of the airline, citing market conditions and a lack of interested investors.