Air passenger demand globally will remain severely depressed in 2021 and will
Air passenger demand globally will remain severely depressed in 2021 and will not see a substantial recovery before 2023, according to Moody’s Investors Service.
Health concerns, changes in corporate travel policies, potential restrictions on international arrivals, and lower discretionary spending because of weaker GDP and higher unemployment will constrain air passenger demand into 2022, Moody’s said in its credit outlook released on Monday.
Demand in 2023 could approach that of 2019 but the uncertain timing of the coronavirus receding on a more permanent basis makes forecasting a challenge.
Many airlines have improved liquidity but at the cost of rising debt burdens. Stronger and state-supported airlines have significantly improved liquidity since March.
Rated airlines have sufficient liquidity to survive on average for about 450 days at current low activity levels. For weaker airlines, this may be…