Pandemic effect on air travel seen to wear off; runway to normal not in sight for years: Fitch

Pandemic effect on air travel seen to wear off; runway to normal not in sight for years: Fitch

ANIUpdated: Thursday, May 13, 2021, 03:44 PM IST
article-image
Representative image | Pixabay

Airport traffic is rebounding off of pandemic troughs in most countries though Fitch Ratings' latest quarterly Global Airport Tracker report says the proverbial runway to normal will not be in sight for years.

Reflecting a one- to two-year delay since its last report, Fitch now forecasts recovery estimates ranging anywhere from 4Q'23 to 2025 before airport traffic returns to 2019 levels. The obvious variable is new COVID-19 variants and surges in the number of cases which caused additional or prolonged lockdown measures and can linger as vaccine rollouts remain slow and uneven on a global basis.

Most regions of the world saw improvements to between 33 to 43 percent of pre-pandemic levels for calendar 2020. European and Australian traffic levels suffered the most while traffic levels in the United States and Latin America declined less.

Fitch said air travel patterns will likely change in the next few years due to a general decline in demand stemming from the risks of continued national- and state-imposed travel restrictions.

Domestic and leisure travel are showing signs of recovery in contrast to continued softness in international and business travel.

"Vaccine rollouts will likely be the main catalyst of traffic recovery in the next year or so and will allow countries to reopen and airports to remain operational while providing greater consumer confidence for a return to air travel," said Director Jeffrey Lack.

Fitch said it will continue to monitor lockdown and business travel restrictions, government assistance for airports and airlines, how carriers respond to the crisis and whether the pace of sector recovery is impaired by airlines' financial challenges.

RECENT STORIES

Real Estate Company Omaxe Buys 450-Acre Land In Indore To Develop Township At An Investment Of...

Real Estate Company Omaxe Buys 450-Acre Land In Indore To Develop Township At An Investment Of...

Sensex Ends 270 Points Higher On Late Buying, Gains Support From Asian Markets

Sensex Ends 270 Points Higher On Late Buying, Gains Support From Asian Markets

Gujarat Booms With 145% Increase In Taxpayer Base In Eight Years; Emerges As One Of India's...

Gujarat Booms With 145% Increase In Taxpayer Base In Eight Years; Emerges As One Of India's...

Mobile Plans Prices In India Likely To Increase By 10-12% By Year-End Amid 5G Push

Mobile Plans Prices In India Likely To Increase By 10-12% By Year-End Amid 5G Push

Shares Of PC Jeweller Plunges Over 10%, Stock Opens Slightly Lower At ₹18.67 Against Previous...

Shares Of PC Jeweller Plunges Over 10%, Stock Opens Slightly Lower At ₹18.67 Against Previous...