Fitch predicts Aeroflot's recovery not sooner than in four years

Fitch predicts Aeroflot's recovery not sooner than in four years
Fitch predicts Aeroflot's recovery not sooner than in four years
19 April 2020, 01:22EconomyPhoto:
The international rating agency Fitch downgraded Aeroflot's long-term default rating from BB to BB-, leaving a negative forecast for the company's development for the next four years.

The downgrade of the company is explained by the global economic crisis due to the spread of the coronavirus pandemic, which, first of all, affected the aviation industry because of the closure of the state borders and reduced flights. The agency predicts a weakening of the organization’s financial performance over the next four years and predicts the restoration of passenger traffic in the company to the level of the previous year no earlier than in 2023, writes.

Analysts believe that the company's liquidity will be exhausted already this year, but it will be enough to recover after the second half of the year, provided that management takes measures to preserve the company's capital. The company itself does not intend to cut costs. Earlier, Novye Izvestia wrote that Aeroflot intends to celebrate the 60th anniversary of its aircraft maintenance department on a large scale , gathering over 800 guests and spending about 8.2 million rubles on organizing the event.

Earlier, Aeroflot twice announced a reduction in the company's domestic flights, stopped accepting return tickets even for those flights that it itself canceled, and also suspended the sale of tickets for all international flights. The restriction will continue until the situation with the pandemic in the world is stabilized and air traffic between the countries is resumed.

Today, the number of patients with coronavirus in the world has reached almost 2.2 million people, a quarter of those who caught a new disease managed to recover, nearly 153.4 thousand people died from complications. In Russia, the number of cases exceeded 36.7 thousand people, 313 were infected from a new disease.

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