The Standard & Poor’s Global Ratings agency warned that the airline industry’s recovery from the outbreak of the Corona virus pandemic would be long and slow, as it expected passenger numbers to remain below pre-epidemic levels until 2023, pointing to the possibility of reducing the credit rating of airports over the coming months.
In a report, reported by “Bloomberg” agency Friday, “Standard & Poor’s” predicted that the number of international air travel passengers will decrease by 55% this year, which is a sharper decline than previously expected.
The report indicated that any recovery will depend on factors including how governments relax travel restrictions, people’s willingness to fly again, and the extent of economic damage caused by the outbreak.
He noted, “Adopting patterns such as remote work and virtual meetings may have a long impact on business travel, and who have represented the most profitable and largest segment of airlines.”
Air travel will eventually return when current health and safety concerns are addressed purposefully, and industry and consumer confidence will revive, with steady historical growth rates in air traffic of between 4% and 5% per year, ”the report stressed.
“Standard & Poor’s” stated: “Airports will face an increased risk of declining travel volumes and pressure on their airline revenues, which generally represent more than 50% of total revenue, while retail revenue, whose share in recent years has risen to 45%, will be affected.” -50% of total revenue, more than airline revenue. ”
Standard & Poor’s has already slashed the rankings of 11 airports since March, and expects its financial strength to be eroded by closings, as well as a weak recovery and capacity restructuring.
Some countries have gradually started to operate flights with the end of closings and restrictions on movement, but volumes remain low, and airports struggle to maintain employment amid the declining rate of travelers and flights and the stopping of service activities such as restaurants and shopping in free zones.
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