Global 2023 Airlines Outlook: Recovery Trend Continues, but Vulnerable to Macroeconomic Challenges

DBRS Morningstar has a neutral outlook on the global airline industry for 2023. On the one hand, the sector will continue to benefit from the post-Coronavirus Disease (COVID-19) pandemic recovery, particularly from the resumption of Chinese air travel and a pickup in the corporate segment. Operational disruptions, which have been a key hurdle so far, are expected to improve gradually. However, on the other hand, the sector is highly sensitive to any macroeconomic downturn and declining consumer purchasing power.

“Considering these factors, we expect sector performance to remain strong during the first half of 2023, but the second half could be challenging,” notes Rohit Kumar, Assistant Vice President – Diversified Industries.