In the wake of global shutdowns caused by the coronavirus pandemic, some infrastructure asset classes, such as the aviation industry, have taken a noticeable hit.
S&P Global Ratings predicts global air passenger traffic will drop by 60 percent to 70 percent in 2020, compared with 2019 — a steeper decline than was previously estimated, according to a new study by the credit rating agency.
S&P Global Ratings said previously they made little distinction in our forecasts for global air passenger numbers versus revenue-passenger-kilometers (RPKs), although adjustments were made where appropriate at the individual company level. However, now the ratings company expects the number of passengers flying is likely to show somewhat lesser declines than RPKs. This is because air traffic volumes include the effect of distance traveled, and international travel is even more depressed than domestic travel.
In normal circumstances, international travel overall account
