S&P Global Ratings sees a clear aviation of decelerating traffic growth, regulatory developments,and geopolitical events.
Because of the weakening economic environment, we expect traffic to continue decelerating for the next year. We now forecast GDP volume multiples to fall to 1.0x-1.5x in 2019 and 2020, down from 2x-3x in 2018.
Airport charges also remain a key topic, with some airports facing material traiff cuts from their regulators. Some of these airports are expected to see a double-digit tariff cut form next year.
Uncertainties regarding the U.K.'s exit from the EU will likely weigh on U.K. airports' operating performance and cash flow protection measures over the next few years.
These trends could bring some temporary turbulence, although the outlook for most European airports is stable. Rated U.K. airports are on negative outlooks due to Brexit, a wider macroeconomic slowdown, and increasing leverage.
