(AOF) – “Annual traffic volumes and the profitability of the sector will continue to improve in 2023” but “high levels of inflation and more uncertain macroeconomic conditions in Europe are likely to slow the pace of the post- pandemic”. This is what Corrado Trippa, AVP analyst at Moody’s, says to justify the reduction of the 2023 outlook for the European airport sector, which goes from “positive” to “stable”.
Passenger traffic will continue to recover during 2023, due to very limited travel restrictions and the reopening of some long-haul routes, but traffic is not expected to return to 2019 levels until the year 2025.
Indeed the resilience of travel demand will be tested by the macroeconomic backdrop: discretionary consumer spending is expected to slow in 2023 and corporations may also reduce their business travel budgets, while environmental concerns surrounding air travel is intensifying in Europe.
At the same time, profitability will continue to recover over the next twelve months, and inflationary pressure on costs, combined with increases in airport charges, will keep operating margins below 2019 levels, while capital expenditure will increase until the end of 2023.