The European airport sector is under severe pressure from the outbreak of the corona virus. Experts from credit rating agency Moody’s have lowered their forecast for the industry from stable to negative for the next 12 to 18 months. They support their downward revaluation by the sharp fall in passenger volumes and the corresponding contraction in turnover.
Moody’s expects total air traffic volume to plummet by as much as 30 percent by 2020.
“The pace of traffic recovery will depend on the magnitude and duration of the outbreak and damage to the global economy, but any prospects for a recovery are uncertain the unprecedented nature and extent of the outbreak,” said an analyst from the company.
It is noted, however, that airports can partly offset significantly lower passenger volumes by reducing operating expenditure and investment. They are also “highly strategic infrastructure” and thus “essential” for European economies. As a result, governments will pay close attention to their availability if economic growth is to be boosted by containing the virus.