S&P on COVID-19 impact: airports' long haul to recovery

The global credit ratings agency Standard & Poors (S&P) has published several reports on the impact of the pandemic on the airport business.

According to the credit ratings agency, airports across the world face a long, slow climb to recovery from the fall in traffic and revenues due to the COVID-19 pandemic lockdowns and travel restrictions.

S&P added that, notwithstanding the long term infrastructure significance of airports, it expects their financial strength and flexibility will be eroded over the foreseeable future by the magnitude and duration of the current airport sector shutdown, an anaemic recovery, capacity restructuring, and heightened counterparty risks of airlines

As most countries reach a point where they may be able to ‘turn a corner’ by allowing flights to recommence on approved routes, the most recent of these reports is repeated here, with additional comments from CAPA and links to associated CAPA reports.

It should be read in conjunction with CAPA’s own models for an airline industry recovery.

Standard and Poors projects:

• Air passenger numbers to drop by up to 55% in 2020.
• A slow, anaemic ‘swoosh-shaped’ recovery is anticipated.
• Return to normality based on satisfying passenger concerns.
• 12 lowered airport ratings Mar to Jun-2020.
• Negative -5% to -10% passenger traffic anticipated even in 2023.
• Post-COVID-19 aeronautical revenues will be significantly lower.
• Other income will be insufficient.
• Single-till regulatory regime no longer appropriate?
• Non-aeronautical revenues also struggling.
• Airports under pressure to reduce costs.
• Concession fees and taxes paid to governments not being reduced.
• Liquidity Is Crucial.

View more here: https://centreforaviation.com/analysis/reports/sp-on-covid-19-impact-airports-long-haul-to-recovery-530273