Scope Ratings

The sector faces a double blow, ensuring the sector’s credit outlook remains negative.

Network carriers such as Air France-KLM, IAG and Lufthansa have over recent years led consolidation in the sector, but the

Scope Ratings says the severe crisis engulfing the aviation sector, as the coronavirus pandemic has reduced air travel to a

The credit outlook for European airlines remains negative. The sector is among the worst hit by the pandemic and, though

Government support has helped large European network carriers avert a liquidity crisis, with air traffic to fall at least 50%

Companies which have preferred to own their own aircraft to maximise operating flexibility – such as easyJet PLC, Deutsche Lufthansa

Airbus and Boeing face the additional headache that long-haul travel is proving particularly vulnerable to the efforts to contain the

IATA has already warned that global air travel demand will decline for the first time since 2009. Air travel in

Boeing’s struggle to return the B737MAX to the skies remains the focus of uncertainty surrounding airframe manufacturers in 2020.

The overall credit outlook for the sector remains negative. The gap between the creditworthiness of larger airline operators and smaller