S&P Global - Rachel J Gerrish, Philip A Baggaley, Etal.
We now expect global air passenger traffic to drop by 60%-70% in 2020 compared with 2019, a steeper decline than we estimated previously. We also expect a more gradual recovery to pre-COVID-19 traffic levels by 2024.
We do not believe that this revision will have a widespread rating impact across the global portfolio of airlines we rate. However, as we continue to review our rated airlines, it may affect some individual companies.
The more negative air traffic outlook increases pressure on all airlines' credit quality. Cost reductions, fleet right-sizing, and liquidity preservation will be critical measures to partly counterbalance the depressed demand for air travel....more
