Air Traffic Won't Recover for at Least Three Years, S&P Says

《Air Traffic Won't Recover for at Least Three Years, S&P Says》

The aviation industry 's recovery from the coronavirus outbreak will be long and slow, with passenger numbers likely to stay below pre-pandemic levels through 2023, according to S&P Global Ratings.

Global air passenger numbers will drop as much as 55% this year. For the aviation industry to recover, it will depend on how governments ease travel restrictions, people's willingness to fly again and the extent of economic damage from the outbreak.

Some countries are also gradually easing travel and transit restrictions, and opening borders with a few other countries.

“Air travel will eventually return when current health and safety concerns have been meaningfully addressed by the industry and consumer confidence rebounds, supported by steady historical growth rates in air traffic of 4%-5% per year,” analysts says.

“Airports will face increased exposure to volume risk and pressure on their aeronautical revenues, which generally represent over 50% of total revenues,” S&P said. “Retail revenues, the share of which have risen in recent years to 45%-50% of most airports’ revenue mix, will likely be even more heavily hit than aeronautical revenues.”

Image: Airbus