Fitch Ratings: COVID-19 presents 'unknown and unique risks for the aviation industry'

Fitch Ratings stated (16-Mar-2020) it believes COVID-19's impact on worldwide economies and markets presents "unknown and unique risks for the aviation industry compared with previously observed pandemics and exogenous shocks". Fitch expects an increase in airline bankruptcies, particularly among smaller and financially weaker airlines that are more sensitive to exogenous shocks and market impacts such as oil price and currency volatility. Given the correlation between oil prices and economic activity, Fitch believes that airlines may not reap the full benefit from the recent fall in oil prices, due to depressed demand and the offsetting devaluation of foreign currencies compared with the USD. [more - original PR]