Morningstar DBRS: climate change risk to airport performance low

Morningstar DBRS has highlighted that although the risk posed by climate change to airlines remains low in the near to medium term, airports with weaker economic and business profiles may be more challenged in mitigating the risks of physical and transitional issues as the industry seeks to decarbonise. Although airports are generally designed to be resilient to some extreme weather events, the increased frequency of things such as storms could damage facilities, while extreme heat waves could lead to take-off weight restrictions and elevated energy consumption, highlights Morningstar. Despite many airports typically carrying comprehensive insurance policies, it could be ‘concerning’