European airlines face recovery risks due to weak macro environment: Fitch

By Ovunc Kutlu

ISTANBUL (AA) - European airlines face recovery risks due to weaker macroeconomic conditions, Fitch Ratings said in a statement Tuesday.

The rating agency said lower disposable income, higher ticket prices, lagging corporate demand and travel restrictions, particularly those related to Russia's war on Ukraine, will be key factors that could affect air travel and air traffic recovery in Europe.

"Leisure demand continues to outperform that from the corporate sector. Weaker macroeconomic conditions will affect the pace of recovery in both segments, but corporate travel could be more exposed to such pressures," it said.

Fitch said it expects the pace of air travel recovery to moderate this year, after having a solid recovery in 2022 supported by leisure travel demand in the post-coronavirus pandemic period.

Global air traffic in 2022 was at 68.5% of its pre-pandemic levels of 2019, the International Air Transport Association (IATA) announced on Feb. 6.

International air traffic last year jumped 152.7% compared to the previous year, according to IATA.