Widespread coronavirus-related lockdowns and general economic downturn have had an unprecedented effect on global air traffic, which is projected to be down 55% in 2020. Writing in Aerotime, Julyana Yokota, Senior Director, Infrastructure, at S&P Global Ratings, takes a look at the implications for the global airport sector.
While airports generally enjoy stronger liquidity positions than airlines, they are now facing significant credit stress – especially given the uncertainty surrounding aeronautical revenue. With aviation charges likely to be lower due to a weakened airline sector, airports must make an effort to diversify their revenue streams. Some level of structural change in the airport sector is inevitable, however the asset class’ infrastructural significance is means it is likely to survive the turbulent times ahead.
The full article can be found here.