Fitch Ratings forecasts that key airlines’ traffic in the region will remain below pre-pandemic levels for the rest of the year<\/p>\n\n\n\n\n\n\n\n
Macau.- The credit rating agency Fitch Ratings has reported that passenger traffic at Asia Pacific airlines will remain below pre-pandemic levels for the remainder of 2021.<\/p>\n\n\n\n
The agency wrote: “The pace of the recovery will hinge on each market\u2019s relative success in bringing the coronavirus pandemic under control, helping to improve passenger confidence and reduce the risk of further travel restrictions, as well as its share of international traffic, which we expect to stay weaker than domestic volume”.<\/p>\n\n\n\n
Fitch sees some differences among countries in the region. Mainland China, for example, has witnessed a rapid recovery in air passenger traffic and may see rising monthly domestic revenue passenger kilometres (RPK) in October due to its successful efforts in containing the pandemic.<\/p>\n\n\n\n
RPK\u00a0is a way of calculating the number of kilometres travelled by paying customers by multiplying the number of paying passengers by the distance travelled.<\/p>\n\n\n\n
The rating agency said its forecasts were based on the assumption that a vaccine or treatment will not become available at scale in 2021. However, the agency has considered the progress in the control of the pandemic.<\/p>\n\n\n\n
Fitch added: “Airline passenger volume could improve faster than we forecast if an effective vaccine is distributed sooner than we believe or if there is more success in containing the pandemic. <\/p>\n\n\n\n
“However, we foresee flat demand in 2021 that is well below the 2019 base should there be limited progress on this measure”.<\/p>\n\n\n\n
Fitch noted that annual declines in monthly RPK have been narrowing over the last few months, with 2020 overall now expected to record a 40 per cent year-on-year drop, with domestic RPKs down by around 30 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"
Fitch Ratings forecasts that key airlines’ traffic in the region will remain below pre-pandemic levels for the rest of the year<\/p>\n","protected":false},"author":2,"featured_media":10492,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Fitch Ratings projects that air passenger traffic across the Asia Pacific region will remain below pre-pandemic levels throughout 2021, with recovery contingent on pandemic containment and vaccine deployment. While domestic travel shows greater resilience, the subdued international traffic outlook presents a significant headwind for tourism-reliant economies, notably impacting integrated resort visitation and potential Gross Gaming Revenue (GGR) in key jurisdictions such as Macau.","focusai_entities":"Fitch Ratings","focusai_location":"Asia Pacific, Mainland China, Macau","focusai_target_profile":"ceo_executive (0.9), investor_analyst (0.95), operator_casino (0.9), supplier_vendor (0.75), journalist_researcher (0.85)","focusai_suggestions":[{"label":"Macau GGR Outlook","query":"Given Fitch's forecast for subdued air traffic, what are the projected implications for Macau's Gross Gaming Revenue (GGR) trajectory and the operational strategies of its integrated resort concessionaires?"},{"label":"Regional Investment Impact","query":"How might the prolonged suppression of international air travel in Asia Pacific influence capital allocation decisions and M&A activity within the region's gaming and hospitality sectors?"}],"footnotes":""},"categories":[160,163],"tags":[257],"class_list":["post-10490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-finance-news","tag-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=10490"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10490\/revisions"}],"predecessor-version":[{"id":10498,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10490\/revisions\/10498"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/10492"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=10490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=10490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=10490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}