European airport passenger volumes will not return to pre-coronavirus levels before 2023 at the earliest and the pace of recovery will vary across the sector, Moody’s Investors Service said in a new report.

Domestic flights will recover more quickly than international travel, with European short haul travel picking up before long haul. Airline mix will also be a factor as some carriers will fail, while others may optimise capacity utilisation until demand returns.

“Cuts in investment and operating costs will support cash flow and limit the increase in airports’ debt burden,” said Joanna Fic, Senior Vice President.

While covenant waivers reflect the supportive stance of creditors and airports’ liquidity has improved, there are material risks to the recovery in traffic and thus airports’ credit quality.