S&P GLOBAL: LONG, SWOOSH SHAPE RECOVERY FOR AVIATION, AIRPORTS
A new analysis from American ratings agency S&P Global Ratings predicts a long, slow “swoosh shape” recovery for aviation and airports, possibly stretching through 2023.
“It will be a much more protracted recovery than the rebounds observed after the 9/11 terror attack, the SARS pandemic of 2003 and the 2008/2009 global financial crisis,” said the report, authored jointly by six S&P Global Ratings analysts. “Over the longer term, we believe that air travel will eventually return when current health and safety concerns have been meaningfully addressed by the industry and consumer confidence rebounds.”
The analysts said airports will operate under a “new normal,” characterized by significantly higher spare capacity than in the pre-pandemic period and potentially dealing with financially weaker airlines.