Lower traffic growth to cut emissions may disrupt airline sector, Fitch says

Targeted reductions in net CO2 emissions in aviation are not achievable without a combination of prudent management of air traffic growth and financially demanding regulation, Fitch Ratings says. The rating agency believes that government policies could curb air travel and incentivise alternative choices could disrupt the aviation sector and may have credit implications, but this is unlikely to happen in the short to medium term.Pressure to decarbonise will continue to grow on the global airline sector, a sizeable contributor to CO2 emissions. A statement from Fitch Ratings said: “We view targets set by several international organisations and national governments as